3. Formalization-and-control stage. The structure of the or ganization stabilizes in thc third stage. Formal rules and procedures are imposed. Innovation is deempbasized, while efficiency and stability are emphasized. Decision makers are now more entrenched, with those in senior authority positions in the organization holding power. Decision making also takes making also takcson a more conscrvative posture. At this stage, the organization exists beyond the· presence of anyone individual. Roles have been clarified so that the departure of members causes no severe threat to the organization.