Formalization is built into decision processes to help decision makers deal with ambiguity and
complexity and to enhance consistency. Rose and Wolfe (2000) suggest that decision aids are also
meant to help accountants learn. As researchers have examined the impact of formalization on
individuals in various work settings, they have found evidence of positive and negative effects.
Using Role-Stress Theory as a foundation, numerous studies have shown that formalization reduces
role conflict and ambiguity, increasing work satisfaction and reducing feelings of alienation and
stress (Jackson and Schuler 1985; Bamber et al. 1989). Other studies have found that formalization
is positively associated with task performance, commitment, job satisfaction, and innovation (Adler
and Borys 1996; Deming 1986; Organ and Greene 1981; Podsakoff et al. 1986; Nicholson and Goh
1983; Senatra 1980; Michaels et al. 1988; Snizek and Bullard 1983; Stevens et al. 1992;
Damanpour 1991).