Organizational crisis: emotions and contradictions in managing internal stakeholders

Abstract

Purpose Little research has focused on the impact of organizational crisis on their internal stakeholders – the employees. This paper aims to fill this void by examining the impression management strategies used by senior managers in managing their employees during organizational crisis and the impact of these strategies on employees. Design/methodology/approach The authors collected qualitative data from three organizations and used multiple analytical lenses (such as thematic, content and trope) to explore patterns in senior managers’ management of employees during crisis. Findings Emerging patterns in the data revealed that the emotional state and reactions of employees (individual and collective) during crisis include anger, fear, shame, depression and shock. Additionally, data revealed two major contradictions (tensions) in managing employees during crisis: maintaining and compromising standard and managers’ wants versus employees’ desire in the way organization crisis is managed. Based on these preliminary findings and using affective event theory and the theory of collective emotions as a frame, the authors built a conceptual model that depicts the relationship between organizational crisis, impression management and emotion-driven employee attitudes and behaviors. Research limitations/implications A major limitation in the current research is that authors’ data are largely composed of text (e.g. from newspaper and websites). Nevertheless, the textual data were based on actual interviews with stakeholders and victims and have more than compensated for the limitation. Theoretically, by examining the emotional states and reactions of internal (rather than external) stakeholders to organizational crisis, the authors extend the literature in the area of organizational crisis and crisis management, while the testable propositions in this conceptual model have a potential to open up new pathways for studying organizational crisis. Practically, it is imperative for managers to have skills to identify and manage key employees’ emotional states and reactions to crisis. Managers should align their words and actions during crisis management to increase employees trust. Also pre-crisis planning should include specific guidelines on how to identify and manage employees’ individual and collective emotions during crisis. Practical implications The results show that inappropriate impression management strategies may worsen employees’ emotional states and reactions (individual and collective) during crisis; therefore, it is imperative for managers to have skills in identifying key employees’ emotional states and reactions to crisis and the impression management strategies appropriate in managing them. A training that sharpens managers’ emotional intelligence will be helpful in managing the emotions of employees (individual and collective) during crisis. Also, pre-crisis planning should include specific guidelines on how to identify and manage employees’ individual and collective emotions during crisis, while senior managers’ words and actions during crisis need to be synchronized to engender employees’ trust. Originality/value This study demonstrates that beyond emotions of employees during crisis, there are contradictions and tensions in the senior manager’s management of their employees during crisis. Also, outcomes of a quantitative test of the conceptual model developed from the current study should improve the generalizability of the results and open up new pathways for future research in this area.