Question

Pioneer Systems Inc. has a high degree of formalization. Employees in Pioneer Systems are more likely to:

A. face morale and motivation problems.
B. feel empowered to implement new solutions.
C. exhibit high levels creativity and experimentation.
D. face ambiguity as a result of a lack of formal rules and procedures.

Answer 1

Letter A is correct. Face morale and motivation problems.

Step-by-step explanation:

A company with a high degree of formalization is a company with a vertical organizational structure. Vertical management is represented by a classic business structure, based on the principle of top-down authority and command and a fixed organization chart.

Being an inflexible organizational model, there are some disadvantages, such as difficulty in interaction between areas and teams, communication failure due to communication noise, which can lead to the creation of moral conflicts and also the lack of motivation of employees, which due to Organizational rigidity is not so active in the process of contributing ideas and suggestions to organizational objectives, as decision making is centralized and concentrated at the top of the hierarchy.