As a result, creativity wanes and overhead rates increase while employees work in a less efficient and productive manner. Paperwork and meetings increase. When difficulties arise, managers and employees become more worried about protecting their own positions than about solving problems in a resourceful manner. Stage Two . As a result, although the company once reacted like a gazelle in the marketplace, it becomes embedded in the tar of its own bureaucracy and behaves more like a plodding elephant.
Employees are more concerned with their own welfare than with satisfying customers.
The company may remain profitable, but the tar becomes thicker, overhead costs continue to increase, and the glory days appear to be over. To remedy increased costs, employees are laid off, and the remaining staff is pushed to work even harder. Stress increases as workers are expected to accomplish more with less. Depression and other stress-related illnesses run rampant throughout the organization. As a result, inefficiencies increase and overhead rates do not drop as significantly as planned.