ABSTRACT

Organizational instability is becoming a common issue that arises more frequently today. Hence, being able to lead an organization through a crisis is vital and will certainly continue to be an essential aspect as crises are at times inevitable despite much planning being done as a foreseeable strategy. There are some essential traits, characteristics, and behaviors that are recurrently associated with effective leadership in crisis situations. Research evidence shows that the characteristics of a crisis leader require one to be charismatic and inspiring, to think strategically and to have the ability and desire to empathize by relating, expressing sadness and compassion. First, a leader who is charismatic helps employees in coping with feelings of distress triggered by the crisis. Second, the ability to think strategically and see the holistic picture serves as a contributing factor to success for a leader to effectively manage a crisis. Last, but not least, it is crucial that leaders are able to deal with their own effectively as well as that of his or her employees during a crisis as it could be a prolonged and fluctuating emotionally challenging event. A leader must relate, empathize with the varying situational aspects, expressing and relating to desolation about the crisis, and show compassion towards affected employees. This exemplifies the care and concern extended for their employees. Research study shows that leaders who took the responsibility during the crisis received more favorable evaluations than those who did not. There must be adequate, honest, and effective engagement with the varying stakeholders of the organization, where the leader must know the who, what, when, and how of communication. In this chapter, we would discuss the core behaviors to be embraced by leaders that contribute to improving the effectiveness of handling a crisis. Although every crisis varies and the organization’s circumstances are different, there are several key recommendations and strategic approaches that an organization’s leader must undertake in order to overcome the challenges that they could potentially face.