Philippine E-Journals

Organizational Crisis: The Incestuous Relationship Between Primary Values, Gaps, Disabled Functions, and Management Failures

Sunia Fukofuka

 

Abstract:

The nature of organizational crisis is changing and there is a call from scholars that the crisis framework should be modified to reflect these changes. Though it is important to factor in changes in the crisis framework, it is even more critical to recognize the factors that stay the same. The purpose of this article is to figure out the factors that are the same regardless of the nature and the industry in which the crisis incident occurred. A grounded theory approach was employed in the analysis of the sinking of the MV Princess Ashika in Tonga (2009) and the collapse of the Barings Bank in Singapore/London (1995). It was found that there is an incestuous relationship between primary values, gaps, disabled functions, and management failures. This incestuous relationship is argued to be what remains the same in organizational crises regardless of the changes pointed out and this will be discussed. The understanding of these incestuous relationships will help practitioners in developing preventative measures to avoid crisis incidents rather than reacting to the crisis incident when it happens.