In an organization, formalization refers to the extent to which employee behavior is steered by rules and regulations that govern the organization and the degree to which these rules and regulations are standardized within the organization. It is usually an essential part of large organizations in order to ensure that their complex structures are working effectively and significant risks are minimized.
In the case of Qantas, the organization is highly formalized which implies the presence of strict regulations, compliance and minimal discretion over what has to be done. First of all being an Australian airline operating globally, it has to comply with numerous laws and regulations within and outside Australia. Examples of such regulations include the Qantas Constitution, Qantas Sales Act, Qantas Corporate Governance Statement, Best Business Practices and etcetera. It is also imperative for the company to comply with Competition laws in Australia and globally. There are formally recorded rules and regulations for Qantas that need to followed for best business practices. A document named ‘An overview of Qantas Group Business Practices’ provides an overview of the principles, values and practices of the Qantas Group (Qantas Official Website). It also depicts the standards set by the organization that should be upheld by all of its employees. The company encourages people to go through the document in order to better understand their responsibility as an individual and as a group.
Some of the principles and formal rules laid out in the document are code of conduct and ethics, legal policy, safety and health policy, contracts review and execution and etcetera. Historically Qantas has been pretty efficient with regards to health and safety standards of its employees and passengers. It immediately grounded its A380 fleet after a