Organizational Responses to Crisis: The Centrality of Trust

Abstract

Within this division, there is a real problem with the lower level people not trusting the people at the top, because the people feel that the management doesn't tell them the truth, doesn't level with them, isn't honest, has a hidden agenda, plays games. I could go on and on. I think it's worse today than I have ever seen it in my 33-year career in this company. --Automotive executive In the latter part of the twentieth century, organizational crises have become almost routine. Indeed, crises are occurring on a scale not previously encountered, most of them human-caused, either through faulty decisions (Janis, 1989), technological complexities (Perrow, 1984) or both (Pauchant & Mitroff, 1992). The purpose of this paper is to develop a midrange theory that explains why organizations respond differently during crisis, and how organizational performance may increase rather than decrease during crisis.

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