LEADERSHIP FRAMEWORKS AMIDST CRISIS-INDUCED EVENTS

Abstract

The paper argues the standpoint that each crisis process requires individual and organizational adaptation, as well as behavioral and rational responses from management directed towards the recovery and adjustment of the organization. The foundational basis is a new approach to the analysis of human resources, knowledge, skills, and interpersonal interactions within the organization aimed at effectively responding to a crisis. Effective crisis management leaders involve key stakeholders to reshape reasoning, shared thinking, and roles individually and collectively. The beginning of the 21st century globally revealed the vulnerability and incapacity of systems to predict and respond to events caused by a pandemic. Decision-makers faced a high degree of uncertainty at the state level, as well as within organizations and their management. They had to deal with the consequences and new behavioral patterns in response to the crisis. The main idea of the paper is that each crisis process requires a series of decisions, activities, and interactions of the entire organization, considering that no organization responds in a way that is completely efficient or entirely inefficient. Even when an organization poorly communicated with the media, ignored stakeholders, or misunderstood the regulators of issues, some elements of crisis management were done well. Also, even if the organization managed to suppress the crisis and overcome challenges, adopting a “learning organization” approach to systematically solve situations of high uncertainty requires further improvement. Today’s global situation emphasizes that change management and preparedness for crisis situations should be high priorities for any organization. During a crisis, decision-making is under the pressure of perceived time constraints and colored by cognitive limitations. Employees, in crisis conditions, are the most significant source of new value, requiring management to align the work of employees with the organization’s goals and thereby minimize potential risks before the triggering event occurs. The authors of this paper wanted to emphasize that an effective response to a potential risky event requires an assessment of system performance in a way that allows managers to pave the way for ideas and capabilities of employees at all organizational levels. The general philosophy of crisis management approach is that there is, to a certain extent, a unique form of planning and coordination to enhance the reactivity, effectiveness, and efficiency of crisis management. In this paper, the authors aim to highlight the importance of flexibility through learning components and the application of a holistic approach in the strategic and operational environment of the organization, considering overall managerial policies, organizational specificities, and crisis management practices.