Core Values and Formalization as Determinants of Individual Behavior in an Organization: A Managerial Perspective

Abstract

A person starting a professional career becomes a member of a chosen organization and begins to function among other people in a defined organizational culture and legal space. As he or she is an adult with a defined personality, knowledge and system of values, the manager can influence the employee's behavior not by changing the person but by shaping the work environment. As flexibility is the number one principle in organizational design nowadays, managers have to create a work environment making decisions on the continuum between formalization and management by values. The chapter describes the consequences of formalization and values orientation for individual organizational behavior, as well as outcomes such as commitment, job satisfaction and turnover intention rate.