ORGANIZATION THEORY AND DESIGN

PROJECT
“Can formalization, complexity, and centralization influence knowledge
performance?”

(ARTICLESUMMARY)

(ArticleTitle)

A study by Eva M. Pertusa-Ortega(2019) basically examined the

Growingdemandforformalization, complexity and formalization
thatishighlyincreasingnowdaysinorganizations. The Article title was based upon
the improvement of formalization, complexity and centralization in organizations
that has been introduced and performed by manyorganizations in order to
provide employees with knowledge and sharpen their skills in order to know how
the authority works and know about the rules and regulations which could protect
them from future concerns.
(Maintheory)

A research problem question was identified by the authors whichincluded “Can

formalization, complexity, and centralization influence knowledge
performance?”this question was viewed by the authors in order to find out
theactualratio of organizations across the US in order to find out whether having a
standardized formalization, complexity and centralization is beneficial in providing
employees with the knowledge skills. The authors identified major problemsfaced
by applicants is not gaining enough knowledge because of not feeling comfortable
in the environment because most of the employees weren’t coordinating with
one another with lead to lack of communication and sharing ideas and
uncomfortable environment to work in.

Methodology)

The methodology that was used in this article was Quantitative Data
throughwhichonewayofcollectingDatawasthroughOnlineSurveyinwhich204organiz
ations from all across the US took place and the organizations shared their
personal informationbased on the employee’s performance according to the
given circumstances and the knowledge that the employees gained using the
circumstances. The applicants were also requested to share their
perspectiveasformalization, complexity and centralization
iscrucialinimprovingemployee’sknowledge performanceornot.Another way of
collecting Data was through a hypothesistesting which was donewiththehelpofChi-
squareanalysisandSpearman’sCorrelationanalysis.
(StatisticalPackagefortheSocialSciences)inwhichhypothesistestwasconducted
through Chi-square in order to find out that whether in H0=0 (nullhypothesis):
Whether complexity, formalization and centralization crucial in developing skills
or H1≠0 (alternativehypothesis):complexity, formalization and
centralizationisnotcrucialindevelopingemployeesskills.AnotherHypothesis was
conducted through correlation analysis through which H0=0
(nullhypothesis):complexity, formalization and centralization
aresignificantlycorrelatedwiththeimprovement of knowledge performance of the
employees H1(alternative hypothesis): complexity, formalization and
centralization arenotsignificantlycorrelatedwithimprovementofknowledge
performance of the employees.
(FINDINGS)

Chi-squareanalysisoutcomereportedthatp-valuewassignificantlylowerthan
0.05 (p=0.005<0.05) so we will reject Null hypothesis and conclude that
complexity, formalization and centralization is crucial in developing employees
knowledge performance in order to perform onthe job.In addition to Correlation
analysis, it has established a strong relationshipbetweencomplexity, formalization
and centralization andimprovingemployees’ knowledge performance.

REFERENCE FOR THE ARTICLE:

https://www.managementstudyguide.com
(ARTICLE 2)

INTRO AND MAIN BODY

The author of this article is Arnold tannenbaum, in the study of industrialOrganizations, effectiveness has
been viewed and operationalized mainly in terms of productivity. In this connection, Thorndike has
noted a general tendency on the part of personnel and industrial psychologists to accept as " ultimate
criteria" of organizational success the following: organizational productivity, net profit, the extent to
which the organization accomplishes its various missions, and the success of the organization in
maintaining or expanding itself. Other variables that have been used in various con-texts as criteria of
effectiveness include “morale," commitment to the organization personnel turnover and absenteeism,
and member satisfactions.2With the exception of organizational productivity, however, practically all
variables used as criteria of organizational effectiveness have been found inadequate and unsatisfactory.

METHODOLOGY
The mean of organization effectiveness was taken by experts in organization effectiveness which
showed that three criteria are significantly interrelated. Based on the reported relationships, the overall
reliability 12 of the three criteria is found to be .77. These findings provide support for the statistical
reliability of the criteria, theoretically considered in combination. The prediction of the independently
obtained measure of organizational effectiveness was attempted by combining the three criterion
measures into a single index. To construct this index, the station productivity scores were transformed
into five-point scale scores, with 1.00 signifying the highest and 5.00 the lowest theoretically possible
productivity. With the inversion of the intraorganizational strain scale, this operation resulted in station
productivity scores on a scale equivalent to the scales used for the measurement of strain and flexibility.
Thus, for each of the 32 sample units, three different scale scores became available, each representing
one effectiveness criterion. These scores were averaged resulting in a criterion index score for each
station in the sample.
FINDINGS

The productivity criterion was further studied by analysis of variance to determine whether the stations
or the individuals in them constitute the primary source of productivity variance. Twenty-seven stations,
distributed among four company plants and encompassing a total of 685 individualworkers whose
productivity had been ascertained, were used. Suitable productivity scores were not available in the
case of the remaining five stations, which belong to the fifth company plant studied.
CONCLUSION
The concept of organizational effectiveness is an important and widely used notion in the study of social
organization. A considerable gap, however, exists between theoretical and empirical approaches.
Because there is little theory that adequately treats this concept, research efforts have generally
proceeded unsystematically, without sufficient consideration of the conceptual aspects of the
phenomenon, and in terms of ad hoc criteria not systematically related to theoretical frameworks
consistent with our knowledge of organizations.

REFERENCE:https://www.researchgate.net/publication/
252320710_A_Study_of_Organizational_Effectiveness