Organizational Crisis. Part I: Definition and Conceptualization

Abstract

Initially, a two part definition of organizational crisis is presented, related to their significance and prevalence and reflecting either (a) opportunities to meet organizational goals or (b) demands or threats that may prevent an organization from attaining its goals or limiting its abilities to meet them and (c) which the organization seeks to resolve because outcome stakes are important and the ideal resolution strategy uncertain. Thus, crises have both objective and subjective aspects. A number of elements of the definition are discussed in terms of their implications for organizations and their subsystems. Finally, three major aspects of our conceptualization are described in terms of empirical examples from our investigations followed by a typology of eight kinds of organizational crisis based upon three dimensions, (1) control, (2) opportunity-threat, and (3) organizational susceptibility and vulnerability to crisis. Part II will deal with strategies and responses to crisis.