The child learns to express aggression and anger in constructive ways. Excessive punishment restricts the child's imagination and initiative. If the crisis of initiative is successfully resolved the child will have developed a sense of responsibility, dependability and self-discipline. Industry is the ability to work and learn adult skills. Peer interaction is very important in this stage.
Children learn that they are able to make things.
They develop a sense of competency and are able to master and complete tasks. Too great an emphasis on rules and regulations removes the child's natural desire to work at the expense of developing a sense of duty. The negative outcome of this stage is the possible development of a sense of inferiority. A school or home environment which denigrates, discriminates against, discourages, or which overprotects or causes the child to remain excessively dependent can result in diminished self-esteem and the development of a sense of inferiority or worthlessness. Identity is the sense of who we are and where we are going in life.