1. Which of the following statements is true of formalization?

It usually increases efficiency and compliance.

Higher levels of formalization tend to spur organizational learning and generate creativity among employees.

It reduces job dissatisfaction and work stress.

It is completely absent among larger and older companies.

External influences, such as government safety legislation, usually discourage formalization.

2. Organizational growth and environmental complexities push organizations toward:

formalization.

a more mechanistic structure.

decentralization.

a simple structure.

a narrow span of control.