Formalization and employee thriving at work: a moderated mediation model including work engagement and centralization

Abstract

Purpose

Until recently, scholars have begun to examine the contextual antecedents of employees thriving at work. A recent study has shown that one aspect of organizational structure/context (i.e. formalization) can be an important antecedent of employee thriving at work. However, scholars have urged doing research examining how different aspects of organizational structure can combinedly influence employee work outcomes such as thriving at work. Given that, the present paper proposes a theoretical model to unravel the mechanisms of how two aspects of organizational structure (i.e. formalization and centralization) may operate as the antecedents of employees thriving at work. In particular, the author draws on the Conservation of Resources Theory (COR) to hypothesize that employees' work engagement mediates the relationship between their perception of formalization and thriving at work. The author further hypothesizes that the indirect relationship between formalization and employee thriving at work is moderated by employees' perception of centralization, such that the relationship is stronger in the presence of a lower level of centralization than higher.

Design/methodology/approach

The author gathered data by employing a time-lagged survey design involving 136 full-time employees from different organizations.

Findings

Results show that employee work engagement mediates the relationship between formalization and employee thriving at work. Further, the indirect relationship between formalization and employee thriving at work is stronger when the level of centralization is relatively low.

Research limitations/implications

Formalization is able to enact employees' thriving at work, particularly when organization implements relatively less centralized structure.

Originality/value

This study first introduces work engagement as a mediator in the formalization–employee thriving at work relationship and centralization as a moderator along this mediating process.

Citation

Rahaman, H.M.S. (2022), "Formalization and employee thriving at work: a moderated mediation model including work engagement and centralization", Personnel Review, Vol. 51 No. 9, pp. 2442-2460. https://doi.org/10.1108/PR-03-2021-0223