CRISIS MANAGEMENT : DETERMINING SPECIFIC STRATEGIES AND LEADERSHIP STYLE FOR EFFECTIVE OUTCOMES

Abstract

The purpose of this study is to investigate and discuss current literature on crisis management within organizational settings. Analyzing what the literature explains about the nature of crisis, steps toward effective crisis management, and a general model of crisis management provides a theoretical framework to understand what organizations should undertake in order to manage a crisis. From the discussion, it is found that a crisis, which is classified into two main types, namely natural and human-induced, can be viewed from two different perspectives. A crisis is an unexpected event that has the potential to threaten the function and the existence of an organization and it may strike at any time. On the other hand, a crisis can also cause an organization to blossom. In order to be able to manage a crisis effectively, an organization should be able to determine the role of the stakeholders and choose appropriate strategies and leadership style. More specifically, an organization needs to focus on the importance of a two-way style of communication, re-evaluate existing strategies before implementing new strategies as proposed in the study, and introduce a transformational visionary leadership style as essential steps to recover from the crisis situation.

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