Typically, what happens here is bureaucracy because learning and know how are hoarded by managers, who keep everything secret. Bureaucracy is a reaction on the part of employees to the repeated frustrations of running into this secrecy. Complexity and rules abound, sometimes to the point of ritual. Lots of redundancy here, and trial and error, but real change is impossible within the existing structure. Ego is big on all levels.
Leadership is authoritarian, distant, harried.
High level of managerial burnout. Employees are often sullen, resentful. Instead of loyalty, now employees feel either competitive or hopeless. Each tends to believe that only he is really doing his job, and he has little if any respect for leadership. Almost all occurrences of employees or ex-employees going amok with a rifle happen in organizations at this stage.