Applying Crisis Theory to Organizations: A Case Study

Abstract

For both the administrator and the consultant, it is important to distin guish among crisis, stress, and conflict in an organization. Crisis theory, previously concerned mainly with the state of the individual, suggests that the major sign of organizational crisis is progressively rising tension, which results in emergency efforts to mobilize tension-reducing re sources. A case study of an organizational crisis is presented to illustrate the applicability of crisis theory to an organization. Factors that appear to precipitate organizational crisis and those that lead to its satisfactory resolution can be compiled from careful case studies. An awareness of such factors and of the nature of a crisis has important implications for organizational consultants and administrators. Suggestions for interven tions are offered.