Organizational Crisis and Leadership Style

People, Culture and Contemporary Leadership

Introduction
The present report is going to critically analyse an organizational crisis, its
consequences and then apply a specific leadership style in order to solve the crisis. Here the
organizational crisis will be based on a fast food organization who is facing a crisis in
maintaining the demand of the customer. This scenario is going to be studied for its causes
and consequences. Further, one leadership style will be chosen that will be most relevant for
solving the crisis and discuss its disadvantages and provide recommendations for overcoming
the same.
Causes of the organisational crisis
The cause for such organizational crisis was a delivery problem in its supply chain.
The chain of the fast food restaurant switched its contract to a new supply chain which stated
that some major administrative problems have led to delay or cancel a number of deliveries
(Schlesinger and Doyle, 2015). As the organization came down to operational issues for their
new delivery services with the new supplier, the supply of chicken got tremendously affected
and more than half of the stores deprived of chicken to produce food for customers thereby
resulting in closing down of the stores.
Potential consequences of the crisis
As the organization struggled in getting a sufficient amount of chicken supply, the
company were forced to shut down more than half of its stores and faced a great loss in
revenue. The customer, on the other hand, was enraged and took social media to storm out
their concern and complained to the local politician as well (Gribas et al. 2018). Many
customers were forced to choose an alternative fast food chain over the company.
Advantages of transformational leadership style in solving the crisis
For the identified organizational crisis, the transformational leadership style is the
most effective leadership style for addressing the issue. A transformational leader is useful in
every kind of situation.