Which change describes moving from Stage 2 to Stage 3?

• A. Increase formalization and centralized control.
• B. Increase delegation and decentralization.
• C. No change to structure.
• D. Return to a traditional hierarchy.

Answer: (B)

Progressing to the next stage means giving more decision-making freedom to the people who actually run things. In Stage 2, organizations often rely on formal rules and centralized control to keep things consistent during the early rollout of change. Stage 3 shifts gears by distributing authority: managers delegate decisions to front-line and regional teams, letting them make choices closer to the work. This decentralization helps speed up responses, tailor actions to local needs, and strengthen buy-in because those closest to the work have a say.

If you see emphasis on more formal rules and top-down control, that signal points to staying in Stage 2 rather than moving to Stage 3. Not changing the structure would also imply no progression, and returning to a traditional hierarchy would undermine the empowerment that Stage 3 brings.