Organizational Crisis Emergence: A Proximity Matrix

Sunia Fukofuka

ABSTRACT

  The crisis literature is replete with studies that looked at the stages of the crises or the classification of the crisis events and such studies are important in organizing the crisis construct and understanding the required managerial competencies that is necessary in dealing with it. However, these studies does not equip managers with tools to identify the point of transition between phases especially the transition between pre-crisis stage and operational crisis stage. Furthermore, though we may understand the various types of crisis, it is impossible to prepare for every type of crises that can be imagined to happen to the organization. It is neither economically viable nor feasible to pursue such a course. As such, the focus of this paper is to build a model that can enhance the visibility of the proximity between the crisis incident and the organization. This model was built through a study of events that led to the sinking of the MV Princess Ashika in Tonga (2009) and events that led to the collapse of the Barings Bank (1995). The grounded theory methodology was employed in this study and a Proximity Matrix was built that allows the manager to see the proximity between the crisis incident and the organization.

KEYWORDS: Crisis Management; Organizational Crisis; Crisis Proximity; Crisis Emergence; Grounded Theory

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