3. Formalization-and-control stage. The structure of the organization stabilizes in the third state. Formal rules and procedures are imposed. Innovation is deemphasized, 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 on a more conservative
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.