Responding to Crises

Journal of Business Administration, 1978, 9(2): 111-137

21 Pages Posted: 27 Dec 2015 Last revised: 29 Dec 2015

See all articles by William H. Starbuck

William H. Starbuck

University of Oregon - Charles H. Lundquist School of Business; New York University (NYU) - Department of Management and Organizational Behavior

Arent Greve

NHH Norwegian School of Economics

Bo Hedberg

Stockholm University

Date Written: 1978

Abstract

Crises are situations that threaten organizations' continued existence. Organizations encounter crises largely because they did not adapt sufficiently to changes in their social or technological environments. When organizations do face crises, their responses have a series of phases. At first, the organizations try to ignore the threatening situation -- perhaps it will go away. Next, they try to hide the problems by distorting reports of their performance. Through both phases their executives make public statements that all is well.Then the organizations try to address their problems by replacing top executives, but when they replace only one or two, the remaining executives continue to operate as they did in the past, so adaptations are inadequate. Finally, there is a realization that serious changes must take place, but by this time, workers have lost confidence in their bosses, many of the most skilled workers have left, and financial resources have been depleted.

Keywords: crises, threats, adaptation, environmental change

Suggested Citation

Starbuck, William H. and Greve, Arent and Hedberg, Bo, Responding to Crises (1978). Journal of Business Administration, 1978, 9(2): 111-137, Available at SSRN: https://ssrn.com/abstract=2708264

William H. Starbuck (Contact Author)

University of Oregon - Charles H. Lundquist School of Business ( email )

1208 University of Oregon
Eugene, OR 97403-1208
United States

New York University (NYU) - Department of Management and Organizational Behavior ( email )

44 West 4th Street
New York, NY 10012
United States

Arent Greve

NHH Norwegian School of Economics ( email )

Helleveien 30
NO-5045 Bergen
Norway

Bo Hedberg

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

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