Do Formalization and Centralization Influence Self-Efficacy and Its Outcomes? A Study of Direct and Moderating Effects

Authors: Ghulam Mustafa, Richard Glavee-Geo

Abstract:

This study examined the relationship between traditional variables of organizational structure (formalization and centralization), employee work related self-efficacy and employee subjective performance. The study further explored the moderating role of formalization and centralization on the link between employee self-efficacy and job performance. Five hypotheses were tested using a sample of employees from a large public organization in Pakistan. The results indicated a significant positive relationship between employee self-efficacy and job performance. Regarding the direct effects of formalization and centralization on self-efficacy, the results showed that formalization relates positively while centralization has a negative impact on self-efficacy. However, the results revealed no empirical evidence to confirm the hypotheses that formalization and centralization strengthen or weaken the relationship between self-efficacy and job performance.

Keywords: centralization, formalization, job performance, self-efficacy