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Jackson and Sparks (2002)Management > Crisis Management > Lectures > Independent Research > Jackson and Sparks > OS
Organisational Studies (OS)OS literature argues that the cause of organisational failure is due to internal management issues. Theorists criticise IO concepts for assuming the situation to be rational, when often the causes of organisational failure stems from irrational behaviour of managers. Miller (1990) argues that “success can breed over-confidence and arrogance”, suggesting that successful companies are particularly at risk from failure. Kelly and Amburgey (1991) argue that success can breed failure and failure breeds failure, as firms employ activities which are effective, but they keep these procedures long after they have become useless. The advantages become a habit and so these companies are less likely to explore new activities. Barmash (1973): “Corporations are managed by men; and men, never forget, manage organisations to suit themselves. Thus corporate calamities are calamities created by men.” Macoby (2000) argues that narcissistic leaders isolate themselves from others during a crisis, preserving their own self image and ignoring everything that is going on around them. They will “stick to the knitting”, to past behaviours and routines, rather than thinking outside the box to help others. D’Aveni and MacMillan (1990) mention that groups and individuals become rigid during a crisis, meaning managers are less likely to change strategies in response to an external crisis. They will ignore the crisis, pretending that it doesn’t exist. (See Boin and Lagadec, 2000 for more information on most of these points) A combination of external and internal factors can be integrated in the study of organisational failure. For example, the distance of management from external realities affects the internal workings of the firm.
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