Stage 4 is described as which of the following?

• A. Emphasizes informal coordination
• B. Uses formal systems to achieve greater coordination
• C. Reduces coordination
• D. Abolishes headquarters staff

Answer: (B)

Stage 4 is about using formal systems to achieve greater coordination. As organizations grow and become more complex, relying on informal coordination isn’t enough to keep activities aligned. Implementing formal structures—standardized procedures, clearly defined roles, formal reporting, and centralized planning—helps synchronize work across units, reduce misunderstandings, and manage interdependencies more predictably. That’s why this stage emphasizes formal systems to improve coordination. The other ideas— relying mainly on informal coordination, reducing coordination, or abolishing headquarters staff—don’t fit Stage 4’s move toward structured, systematized control.