Analysis of an Organizational Crisis and Leadership Application

This report provides a critical analysis of an organizational crisis stemming from supply chain issues within a fast-food restaurant. The crisis, resulting in store closures and customer dissatisfaction, is examined for its causes and potential consequences. The report identifies transformational leadership as the most effective style for addressing the crisis, highlighting its advantages such as strong communication and empathy. However, it also acknowledges potential disadvantages like employee burnout and a lack of detailed focus. The report offers recommendations to overcome these disadvantages, such as considering employee opinions and thoroughly analyzing all aspects of the crisis. The conclusion emphasizes the suitability of transformational leadership and suggests actionable steps for effective crisis management.

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.

The main advantage lies in their characteristics where the presence of integrity and
emotional intelligence are high (Sommer et al. 2016). As the given organizational crisis have
heavily affected the brand reputation, customer expectations and workforce of the company it
is highly recommended for the leader to take any action sensibly.
Another advantage is that they are a very good communicator at every level (Haddon
et al. 2016). This will ensure that customers, and employees both will be tackled efficiently
by communicating with them in the most effective manner.
Further, another advantage is their approach to being authentic and empathetic
(Sommer et al. 2016). These characteristics of a leader are going to assure that sincere
apology will be produced in order to set accountability for the mishap and crisis that let the
expectations of the customer down.
Disadvantages of transformational leadership style in solving the crisis
While making the decision to address the situation, a transformational leader might
consider to change and develop few business operations including its supply chain. This, in
turn, can upset the employees currently working in the organization (Celik et al. 2016). If the
employees are made to go beyond their tasks and duties to fulfil the satisfaction of the
customer or compensate for the crisis, they might not feel good. This will cause employee
burnout and the will be dissatisfied.
Also, a transformational leader prioritizes only a few things and have the tendency to
neglect potential opportunities and therefore can pose as a disadvantage (Spoelstra et al.
2016). As a transformational leader may neglect the detail in the challenges, they do not pose
of the benefit of taking a decision in the long term and lack a clear vision for their action.
Transformational leaders are very good at motivating the employee, subordinates and
uplifting the morale of the stakeholders however they are not applicable in every situation
(Spoelstra et al. 2016). In the present case, the leader might take the wrong approach in
addressing the crisis.

Recommendations on how those disadvantages could be overcome
For the disadvantages identified in this leadership style the following points can be
taken into consideration to overcome the challenges:
 The opinion of every employee must be taken into consideration before
making a final decision (Hawkins, 2017). This will ensure the employee does
not burn out.
 The leader is expected to look into every detail of the organizational crisis and
then map out the possible opportunities and disadvantages with an alternative
decision. By figuring out the most efficient decision, the leader may act upon
that decision.
 The organizational crisis must be thoroughly viewed from the perception of
every stakeholders and customer and make the decision in their best interest
(Hawkins, 2017).
Conclusion
The report studied an organizational crisis where major administrative problems in the
supply chain have led to a delay of certain products and led to shutting down half of its
stores. For this crisis, transformational leadership style is best suited to address the crisis and
make an effective decision. Further, the report outlined the advantages and disadvantages of
this kind of leadership style and recommended a course of action to overcome the
disadvantages.

References
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Academic Research in Business and Social Sciences, 6(2), pp.183-196.
Gribas, J., Disanza, J., Legge, N. and Hartman, K.L., 2018. Organizational Image Repair
Tactics and Crisis Type: Implications for Crisis Response Strategy Effectiveness. Journal of
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Haddon, A., Loughlin, C. and McNally, C., 2015. Leadership in a time of financial crisis:
what do we want from our leaders?. Leadership & Organization Development Journal, 36(5),
pp.612-627.
Hawkins, P., 2017. Leadership team coaching: Developing collective transformational
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Schlesinger, P. and Doyle, G., 2015. From organizational crisis to multi-platform salvation?
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crisis. Group & Organization Management, 41(2), pp.172-202.
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