Which term describes the degrees to which activities in an organization are divided into separate jobs?

Home » Business » What is the Difference Between Formalization and Specialization

The main difference between formalization and specialization is that formalization is how jobs are structured and standardized within an organization, whereas specialization is the degree to which activities are divided and then subdivided into individual jobs.

Every successful company has an excellent organizational structure behind it. An organizational structure is a structure designed to match a company’s goals and describe how job tasks are formally divided, grouped, and coordinated. Organizational structures have six components: chain of command, the span of control, specialization, departmentalization, centralization/decentralization, and formalization.

Key Areas Covered

1. What is Formalization  
      – Definition, Features
2. What is Specialization
     – Definition, Features
3. Difference Between Formalization and Specialization
     – Comparison of Key Differences

Key Terms

Formalization, Specialization, Organizational Structure

Which term describes the degrees to which activities in an organization are divided into separate jobs?

What is Formalization

Formalization refers to how jobs are structured and standardized within an organization. It describes the extent to which policies, rules, and procedures within an organization are articulated. In formalized structures, there are many written rules and regulations. These structures control the behavior of employees so that they have little autonomy to make decisions. Moreover, formal structures can make employee behavior more predictable. This is because whenever a problem arises at work, employees will refer to procedures and rules to handle it. Using this method, employees throughout the organization will respond to problems in a similar way, thereby creating consistency of behavior.

Employees with highly formalized jobs do not have much input about their job – what to do, how to do it or when to do it. For example, workers on the assembly line have highly formalized jobs as they don’t have much autonomy. Sales associates calling on customers, on the other hand, have little formalization in their jobs.

What is Specialization

Specialization refers to the degree to which an organization divides and then subdivides its activities into individual jobs. We also call this division of labor. In simple words, specialization refers to focusing on a specific job. If you put one worker on the task of creating a dress, he/she may take a long time to make it. But if you use workers specializing in different tasks (for example, one worker for designing, one worker for cutting, one worker for adding buttons, etc.), then the tasks become standardized, and workers learn to do their work quickly with practice.

By the 1940s, most manufacturers were applying the concept of work specialization. Using this method, unskilled workers can do easy tasks, whereas workers with special skills will perform the tasks that need specific skills. Therefore, workers with skills will not have to waste their time on simple tasks that do not need special skills. From a productivity point of view, specialization is an ideal method that can increase production and overall input. Specialization can also reduce the production cost, thereby decreasing the overall product price.

Difference Between Formalization and Specialization

Definition

Formalization refers to how jobs are structured and standardized within an organization, whereas specialization refers to the degree to which activities in an organization are divided and then subdivided into individual jobs.

Focus

Formalization focuses on policies, rules, and procedures related to jobs and tasks, while specialization focuses on the division of labor.

Conclusion

In brief, formalization and specialization are two main components of an organizational structure. The main difference between formalization and specialization is that formalization focuses on policies, rules, and procedures related to jobs and tasks, while specialization focuses on the division of labor.

Reference:

1. Devaney, Erik. “The 6 Building Blocks of Organizational Structure [Diagrams].” HubSpot Blog, 3 June 2020.
2. “Division of Labor and Specialization.” Lumen – Introduction to Business.
3. “Organizational Structure.” Lumen – Principles of Management.

Image Courtesy:

1. “Executive Hierarchy Staff Organization Chart Work” (CC0) via MaxPixel
2. “Workshop, operator, the assembly line” (CC0) via Hippopx

Work specialization is dividing work activities into separate job tasks. Individual employees specialize in doing part of an activity rather than the entire activity in order to increase work output.  It is also known as the division of labor.

Work specialization allows managers to break down complex tasks into smaller more specific tasks that the workers or employees can complete. Every worker is trained specifically on how to perform a small, particular task in the best way. Gradually, that worker becomes extremely effective and proficient at doing that task. Thus, every worker in the company becomes an expert to some extent.

Work specialization is especially useful in manufacturing. Suppose an assembly process where every worker performs a repetitive task in the process of product development.

For instance, A assembles the frames, B fixes the sides, C paints the products, D assures that the products are complete, and E prepares the products for shipment. The whole development process is quite complex and is combined with different specialized steps. But this process becomes less complex when all the steps are divided among different employees. The products are completed and ready for sale after every employee finishes her/his respective task in the process of product development. If only one employee or worker were responsible for this whole process of product development, the outcomes would be much time consuming and less efficient.

Work specialization is dividing work activities into separate job tasks. Individual employees specialize in doing part of an activity rather than the entire activity in order to increase work output.  It is also known as the division of labor.

Work specialization allows managers to break down complex tasks into smaller more specific tasks that the workers or employees can complete. Every worker is trained specifically on how to perform a small, particular task in the best way. Gradually, that worker becomes extremely effective and proficient at doing that task. Thus, every worker in the company becomes an expert to some extent.

Work specialization is especially useful in manufacturing. Suppose an assembly process where every worker performs a repetitive task in the process of product development.

For instance, A assembles the frames, B fixes the sides, C paints the products, D assures that the products are complete, and E prepares the products for shipment. The whole development process is quite complex and is combined with different specialized steps. But this process becomes less complex when all the steps are divided among different employees. The products are completed and ready for sale after every employee finishes her/his respective task in the process of product development. If only one employee or worker were responsible for this whole process of product development, the outcomes would be much time consuming and less efficient.

Which of the following describes the degree to which activities in the organization are divided into separate jobs?

Work specialization describes the degree to which activities in the organization are divided, and then subdivided, into separate jobs.

What term describes the degree to which a task is divided into separate jobs or departments to improve efficiency?

The division of labor describes the degree to which a task is divided into separate jobs or departments in order to improve efficiency.

Which of the following is the degree to which organizational tasks are subdivided into separate jobs quizlet?

sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs.

Which of the following describes how job tasks are formally divided grouped and coordinated?

Organizational structure depicts how job tasks are formally divided, grouped, and coordinated.