IndexAdvantagesDisadvantagesToyotaRules and Regulations:HuaweiRules and Regulations:SimilaritiesThe dimensions of the organizational structure give a perspective of how the different components interact. There are four dimensions, namely differentiation, integration, formalization and centralization. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Formalization applies to the degree to which an organization's rules, procedures, and methods of completing work are structured. More precisely, highly formalized entities are those under which the laws governing desired actions are well defined and respected. On the other hand, organizations with a minimal degree of formalization have a limited number of uniform procedures and laws. While formalization is often communicated through formal means and documentation such as job requirements, this should not be the case. Informal behaviors, such as procedures reinforced by community norms or informal conversations with other participants in the association, often contribute to the degree of formalization. Formalization is the set of rules and procedures followed by an organization at a level that includes training. It standardizes or regulates behavior and determines the relationship between the organization as well as the relationship between the leader and followers. In terms of design, formalization uses a high specialization of work and usually has a large margin of control. The main goal of formalization is to reduce differences in employee behaviors. This can be done through both formal and informal means. Formal is standardized based on written rules.AdvantagesMakes employee behavior more predictable as they respond to problems in similar ways.When there is a problem the employee can consult a manual or procedural guidelines.Allows people in the same industry to communicate and share resources more easily .Have the same goals and divisional structure coordinate well.DisadvantagesBecause employees behave the same way, this can lead to innovation in a high degree of formalized company. (A high degree of formalization can lead to innovation because employees are used to behaving in a certain way.) Since employees behave in the same way, this leads to a reduction in motivation and job satisfaction which also reduces the pace of decision making. Not all answers are specified in the regulation or guideline book as customers have various questions. Reduced information flow in the organization due to always referring to guidelines, so they have less understanding of how other departments influence the company. Cooperation and coordination suffer. Motivated employees tend to solve problems in their own way when they can't find the solution in the manual.ToyotaFormalization in Toyota is very important because Toyota Production System (TPS) has a unique principle called "just-in-time" production .Rules and Regulations: Raw materials are delivered to the assembly line exactly when they need to be used. Frontline employees are given the power to shut down production when they detect a problem. requires all employees to be experts in what they want to do. Do not accept defects in the production line. This principle reduces the waste of resources and highlights the importance of efficiency for employees. At TPS they want their customers to have a perfect product even if stopping production can be expensive. This increases their image in the market..