What is a major consequence of the formalization stage within an organization?

In the formalization stage within an organization, a key consequence is the increased bureaucratization and the establishment of formal systems. At this stage, organizations begin to develop structured processes, documented procedures, and clear policies that govern operations. This shift aims to create consistency, predictability, and accountability in how work is performed.

Formalization typically leads to the implementation of rules and regulations that define roles, responsibilities, and procedures. As organizations become more structured, there is often a greater emphasis on following established protocols to maintain efficiency and reduce variability in outputs. This bureaucratic approach ensures that everyone within the organization adheres to the same standards and expectations, ultimately striving for cohesion and order.

While lower levels of employee autonomy might result from this increase in formalization, the most significant effect is indeed the creation of these formal systems, which can impact creativity and adaptability in the long run. However, the primary focus during the formalization stage is recognizing how these structures help streamline organizational processes, making "increased bureaucratization and formal systems" a central feature of this transition.