Organizations tend to become less formalized as they age and grow in number of employees.

Question

Quizplus · Accepted Answer

As organizations grow in number of employees, they tend to become more formalized in order to establish clearer roles, responsibilities, and processes. However, as organizations age and become more established, they may be able to ease up on some of the formalization and bureaucracy in favor of more decentralized decision-making and flexibility.

Organizations Tend to Become Less Formalized as They Age and Grow