Designing a New Model in Organizational Crisis Management (Case study: Isfahan Oil Refining Company)
Abstract
Recent approaches in crisis management are usually reactive, incidental, and unstable. There is no practical model as a comprehensive guide in crisis management. On the other hand, some of the components in the crisis management process are not specific to one stage and may be vital in others. The purpose of this paper is to provide a comprehensive model with an overlapping attitude of the organizational crisis management process.
Introduction
Organizations require a comprehensive model to be more agile in managing the crisis. In reality, the overlapping happens in crisis management, which means that some components are vital in two or more stages of the process. This issue has not been seen in studies so far. Therefore, this paper aims to design a comprehensive model with an overlapping approach. In the end, prioritizing the components was done using the importance-performance analytical procedure in Isfahan Oil Refining Company. Research questions are as follows:
What factors and elements are in the organizational crisis management model with an overlapping approach?
What are the priority components in Isfahan Oil Refining Company?
Case study
To model fitting and prioritizing the components, the statistical population of Isfahan Oil Refining Company has been used. The issue of crisis management in this organization is very vital due to the type of activity. Therefore, surveying this article in this organization will be a suitable practical framework for others in crisis management.
Theoretical framework
A review of studies showed that crisis management models were designed in three main stages: pre-crisis, in-crisis and post-crisis. By emphasizing the overlapping approach, the conceptual model in this paper included seven factors consisting of three main stages and the four overlapped ones. These factors are "pre-crisis", "in-crisis, post-crisis", "pre and in-crisis", "in and post-crisis", "post and pre-crisis", "pre and in and post-crisis".
This study has a developmental and practical purpose, and its approach is mixed. Surveying all internal and external articles related to professional research between 2009 and 2021 was done in the qualitative section. Then, designing a theoretical model was performed using the overlap approach and three rounds of the Delphi method. In the quantitative part, the experimental model was prepared based on the confirmatory factor analysis approach, and the model fitting did by AMOS software. In the Delphi method, 19 experts were by snowball sampling. In model analysis, 228 people participated from the statistical population of Isfahan Oil Refining Company based on a stratified random sampling method. Finally, prioritizing the components was done using the importance-performance analytical method.
Discussion and
Most studies concentrated on presenting the new elements of organizational crisis management. Some of them examined the relationship between the several components. On the other hand, the models in recent studies showed progress in crisis management from linear to nonlinear approaches. Although this is a development in organizational crisis management studies, an overlapping occurs practically (Pennington-Gray, 2018). It means that some elements in the crisis management process are not specific to a particular stage and maybe are vital in two or more. So, the 47 components were presented in a new model by seven factors focusing on the overlapping approach.
Conclusion
Presenting a new comprehensive model of organizational crisis management with an overlapping approach did in this paper in seven factors: "pre-crisis", "in-crisis, post-crisis", "pre and in-crisis", "in and post-crisis", "post and pre-crisis", "pre and in and post-crisis". Based on the overlapping approach, recognizing the type of crisis, identifying the crisis life cycle, understanding the thresholds of turning small events into a large one are in "pre and in-crisis". Controlling the access to information, allocating sufficient authority to decision making with minimal delay, managing destructive emotions are there at "in and post-crisis". Strategic thinking at all levels of the organization, organizational credibility, identifying the strengths and weaknesses are in "post and pre-crisis". Awareness of crisis activities, transparency, coordination, and commitment, and honesty, trust-building and collective efficiency is vital in the whole process of organizational crisis management. Prioritizing the components showed that empowering individuals, allocating sufficient authority to decision making with minimum delay, identifying organizational strengths and weaknesses, communicating based on honesty, making inter-organizational trust and collective efficiency had more priority. Also, the company performance in the post-crisis phase was unfavourable.
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