Managing Organizations at Times of Crisis - Case Study Example

Organizational Crisis Management Name: Unit: Course: Professor name: Submission Date: Managing Organizations at Times of Crisis Crisis management in an organization is very critical since it entails reducing the occurrences and impacts of unforeseen events in the entire life of an organization. Currently, the organization of managing crisis, emergency management, and business continuity majorly depends on administrative controls. Therefore, a manager is believed to play a bigger role in ensuring there is positive response to managing emergencies that may occur during business operations. In crisis management, the most likely threats that an organization is most likely to face in future include financial loss by disrupting its activities, product harms and industrial accidents, and organizational reputation damages (Alfonso, 2008 p.150). Therefore, this paper reflects on the efforts and analysis effected by managers in planning and strategizing on future corporate crisis. Transformational Leadership Style Transformational leadership is found in management levels. And it consistently believes that a leader at the management levels should work with his juniors to share a vision that may guide them in identifying the required change, to change through inspiration and executing notable changes with committed team members. Nielsen et al. state (2008) all the remarkable changes come along with subordinate’s self-reliance and self-sufficiency over certain jobs in an organization. Consequently, as a result, leaders must be able to train to and inspire organizational members to go beyond their work goals. Such progress comes with proper decision making from the junior through their leaders’ motivations. Therefore, the emergence of new leadership notion known as transformational leadership. Transformational leadership as compared to other leadership styles, it remains considered to be an effective method of dealing with the future organizational crisis. Since this type of leadership rotates at all levels of the organization including, teams, departments, divisions, and the entire team it then gets related with positive results about other leadership forms. In contrast to transactional and laissez-faire leadership styles, transformational leadership is a procedure in which leaders and followers push one another to higher levels of motivation and ethics. It indicates that a mutual relationship between leaders and staff exists (Javed, 2012). The reciprocal relationship between the managers and the subordinate is essential since the cohesiveness of the management team justifies the improbability of crises occurring. With this determination, there would be proper planning towards crisis management. In establishing crisis management plans, an organization needs to define leadership styles it applies in its operations. Determining leadership style is so crucial in identifying crisis management plans (Judge, 2008). Furthermore, leadership and emergency management are closely related and so, the best leadership technique pushes for better response to difficulties. Contrary to transactional leadership styles, transformational leadership is vital during the times of uncertainties. Leaders who use transactional leadership skills focus on the use of punishments and bonuses to motivate the subordinate staff towards accomplishing and changing the outcomes of organizational difficulties. Nevertheless, transformational leaders work towards transforming the future through providing higher manager job performances to the followers in management groups while transactional leaders lead towards inoperative job performances. Unlike transactional leaders who only focus on maintaining the organizational image, transformational leaders work towards a determined objective of organizational progress of reducing the amount threats that are likely to occur in their business operations. On the other hand, leaders who apply laissez-faire leadership style avoid making decisions and also abdicate their responsibilities when an organization is an about to face uncertainties. And therefore, the junior staff working under this kind of leadership are left with the burden of executing the management tasks. Transformational leaders rather involve the employees in making long-term decisions rather than concentrating on short term issues. According to Chaudhry (2012), the use of laissez-faire leadership style has created several adverse effects on crisis management response amongst the employees. In general, transformational leadership have globally been linked with the positive outcomes in determining the occurrences of future management crisis. This style of leadership entails high levels of effort, job performance and job satisfaction. The impacts can be foreseen through affective organizational leadership commitment, employees’ exceptional collaboration with the managers in making crucial long-term decisions, and proper predictions of future corporate threats. De et al. argue that (2010 p.268) transformational leadership is uniquely associated with some outcomes such as dealing with subordinates’ self-efficacy, progressive commitment and interpersonal motivational behaviors and intentions of seeking positive responses towards tackling management crisis. As much as positive impacts might be felt while applying transformational leadership styles, it might be encountered with some negative influences (Pawar, 2014 p.13). During its use, it might be affected by the personality of a leader. The character of a leader reflects the relationship of the followers. A poor figure distorts the effectiveness of transformation through job performance and satisfaction. Nevertheless, employees with self-motivation features are less likely to require transformational leaders to push them into action of undertaking organizational uncertainties. Barriers Managers Encounter During Problem Management Over the years, managers have experienced a lot of obstacles whenever they are tackling organizational unforeseen problems. Despite their progressive efforts, these barriers have emerged and have limited their functionality towards accomplishing crisis management. Therefore, the avoidance of minimal improbabilities of organizational problems have decreased and as a result, managers have been judged due to underperformance (Jaques, 2007). Thus, the following have been considered as obstacles that can prevent organizations managing risk effectively. Disruptive innovations have caused social changes in the organization affecting the management. Disruptive innovations are always unplanned acts within the organization and its prevalence challenges their operations. Setting up a complex, less expensive and inaccessible services may disrupt the performances of the management. Therefore, a management pursuing creative innovations is more likely to reduce the effects of social changes to their operations. The change in social factors is replicated through providing solutions in a more simpler way than many people within he social set up may require Poor communication between and within the structures of organization, departments, and groups can bar the manager from foreseeing future organizational crisis. Such a barrier can emerge due to some reasons including distrust between the management and the low, severe competition within the departments and underdeveloped communication strategies in the organization. Nonetheless, poor relations within the structures of organization minimizes sufficient operations of the managers regarding conventional long-term decision making (Veil, 2011 p.18). Failure to communicate can lead to valuable information passing unnoticed by the managers who need it to manage uncertainties. As a result, things may automatically go wrong in an organization because the management was not informed of the probable risks. The management may encounter cases of fraud and corrupt practices in the organization. An organization reporting the corruption culture may change the attitude of employees’ business performances. However, when an employee is involved in the culture of corruption, the management is held criminally responsible for the situation (Alfonso, 2008 p.151). Without immediate action of introducing anticorruption vices the ethical standards of an organization are likely to be lowered. A company reporting cases of bribery and corruption is most probably to face challenges in financial losses. Therefore, the management will then face difficulties to handle such uncertainty. Ways Organizations Can Improve their Competitiveness During Uncertainties During the crisis in the companies, both the employees and the managers can engage in individual initiatives to reduce probabilities of risk occurrences. Though an organization cannot ultimately prepare for a risk because of their unpredictability (Smith &Elliot, 2007 p.120). Therefore, in any case, an organization seeking possible resolutions towards encountering risks are greater chances of improving in their operations globally. Implementation of effective cooperate innovation can help organizations meet their competitiveness during uncertainties. Veil states (2011) to achieve such a factor, the organization need to strategize on corporate innovation factor. Introduction of the strategies within the organization makes the ethos of the current operations to change intensely. Due to this, the management will find the motivation to operate in an environment of creativity, teamwork and risk taking. All these factors are designed to improve productivity and make the organization more viable. And in order to achieve corporate innovative behaviours, the organization must ensure that employees pursue entrepreneurial opportunities to invent regardless of the current resources. Coordination of management roles throughout management levels implement successful corporate invention hence market competitive lead. For instance, when there is lack of managerial coordination, the sustainability aspect of an organization may be reduced. Sustainability strategies are necessary for continuous managerial roles. Employees must work with managers for innovative similarities. The market is managed according to the alignments evaluated by the managerial roles and the established behavior in terms of innovations (Jaques, 2007). Therefore, corporate inventions are part of successful market expansion to an organization. Identification and detection of the patterns of catalytic innovations within the organization may improve their competitiveness. An organization addressing particular social changes it is their mandate to check on the current catalytic innovators. According to (Jaques, 2007) changes from traditional models to more technological innovations organizational operations may show up to global levels. The dynamics caused by catalytic innovations gives an organization the offering of expanding the market reach as a foremost player. Also, the new effects on technological dynamics have enabled reduction of costs on organizational performances and hence moving towards competitiveness in global market segment. Developing anti-fraud programs to discover business unethical practices within the organization. The anti-fraud programs may influence and take cultural differences into consideration in determining business ethical dilemmas (Smith, 2012 p.121). Better ethical practices in terms of avoiding fraudulent activities maintains the integrity and openness within the organization. And so, with this action more operations may be put into accountability. Therefore, the difference caused due better accountability of the firms’ accounts may but their operations at greater levels in the global market. More weight on financial uncertainties explains the relativity of changes in and hence competitiveness in international markets. In conclusion, all the measures discussed for and against crisis management in this paper are the practical ways of resolving crisis occurrence. Thus, from the organization experience, when all the factors are managed properly, there would be increased organizational competitiveness globally. Eventually, for improved operations within the structures of the organization critical forms of leadership also need to apply. Instead of focusing on irrational solutions, choosing the right measures in dealing with organizational crisis improves its global sustainability. Reflective Part In the last module, I was able to acquire and develop various academic skills. The academic skills enabled me to learn about the connections that exist between theories and models in the previously completed assignment. The topic was so helpful since it was based on case studies and research articles that were provided during the lecture. Thus, the topics were covered in the previous model included globalization, organizational culture, innovation and change, diversity, ethics, and leadership. The assignment required me to only choose only one topic out of the six items. I chose to go with globalization. The assignment required my skills of placing my argumentative points on the entire article. In the entire assignment which was part of the module covered, I was able to sharpen my academic proficiency on critical thinking about managing risks in guarded globalization. The test required me to explain relationships between organizations with the government to gain more profits and achieve competition advantages. from different sources through applying models or concepts from the topic of innovation and change. Therefore, my whole academic attitude changed towards displaying the assignment in an argumentative perspective through comparing and contrasting the issues in depth. References Alfonso, G.H. and Suzanne, S., 2008. Crisis Communications Management on the Web: How Internet‐Based Technologies are Changing the Way Public Relations Professionals Handle Business Crises. Journal of Contingencies and Crisis Management, 16(3), pp.143-153. Chaudhry, A.Q. and Javed, H., 2012. Impact of transactional and laissez faire leadership style on motivation. International Journal of Business and Social Science, 3(7). De Vries, R.E., Bakker-Pieper, A. and Oostenveld, W., 2010. Leadership= communication? The relations of leaders’ communication styles with leadership styles, knowledge sharing and leadership outcomes. Journal of business and psychology, 25(3), pp.367-380. Jaques, T., 2007. Issue management and crisis management: An integrated, non-linear, relational construct. Public Relations Review, 33(2), pp.147-157. Johansen, W., Aggerholm, H.K. and Frandsen, F., 2012. Entering new territory: A study of internal crisis management and crisis communication in organizations. Public Relations Review, 38(2), pp.270-279. Judge, T.A. and Piccolo, R.F., 2004. Transformational and transactional leadership: a meta-analytic test of their relative validity. Journal of applied psychology, 89(5), p.755. Nielsen, K., Yarker, J., Brenner, S.O., Randall, R. and Borg, V., 2008. The importance of transformational leadership style for the well‐being of employees working with older people. Journal of advanced nursing, 63(5), pp.465-475. Pawar, D., 2014. Styles of Leadership. International Journal of Research in all Subjects in Multi Languages, 2(7), pp.12-14. [Online]. http://raijmr.com/wp-content/uploads/2014/08/4_12-14-Prof.-Digesh-V.-Pawar.pdf, accessed 4/26/2017 Smith, D. and Elliott, D., 2007. Exploring the barriers to learning from crisis: Organizational learning and crisis. Management Learning, 38(5), pp.519-538. Veil, S.R., 2011. Mindful learning in crisis management. The Journal of Business Communication (1973), 48(2), pp.116-147. Read More