Chapter 12--Crisis Leadership and the Learning Organization Key
1. A
crisis is a high-probability, low-impact event that threatens the viability of
the organization and is characterized by ambiguity of cause, effect, and means
of resolution, as well as by a belief that decisions must be made
swiftly.
FALSE
FALSE
2. Technological
advances have diminished organizations' attempts to control crisis
communications.
TRUE
TRUE
3. Crises
come in many forms including succession crisis, product failures, human error
disasters, and sexual harassment.
TRUE
TRUE
4. Effective
crisis management depends on planning and people.
TRUE
TRUE
5. A
pre-crisis plan is the best way to lessen the negative consequences of any
crisis.
TRUE
TRUE
6. A
pre-crisis plan is the first step of any crisis management program.
TRUE
TRUE
7. Pre-crisis
planning entails three components that every organization should address when
putting together a comprehensive crisis response plan: (1) appointing a crisis
leader, (2) creating a crisis response team, and (3) creating a risk assessment
team.
FALSE
FALSE
8. In
pre-crisis planning, it is important that crisis management responsibilities be
divided and spread across the organization without a central command to avoid
turf wars and conflict.
FALSE
FALSE
9. One
of the primary duties of the crisis leader includes requiring individuals or
departments to keep logs of complaints or incidents.
TRUE
TRUE
10. In
most small organizations, the crisis management team is led by a senior-level
executive.
FALSE
FALSE
11. Experience
reveals that dividing the duties of crisis management throughout the
organization without a central command is often more successful than the team
approach.
FALSE
FALSE
12. Your
leader has appointed you to supervise the risk assessment part of precrisis
planning, and, therefore, your first step in the five step process is to assess
and rank risks.
FALSE
FALSE
13. Risk
assessment is a common tool used in crisis planning.
TRUE
TRUE
14. Rational
analysis and planning is a tool that helps leaders prevent or respond to crises
through decision-making skills based on possible outcomes or crises.
FALSE
FALSE
15. The
first step in the risk assessment process is risk reduction.
FALSE
FALSE
16. SWOT
analysis is used in the risk reduction step in the risk assessment
process.
TRUE
TRUE
17. It
is generally believed that within an hour of becoming aware that a crisis
situation may exist, company officials must be prepared to issue an initial
statement to the media and other key stakeholder groups.
TRUE
TRUE
18. Developing
a bunker mentality is a recommended strategy for senior leaders to use when
dealing with a crisis.
FALSE
FALSE
19. It
is generally believed that it does make a difference whether the company
representative or spokesperson is a senior-level manager or someone at a lower
level of responsibility.
TRUE
TRUE
20. One
of the short-term benefits of developing an effective crisis communication
system with employees is that the organization will have won over the
confidence, loyalty, and commitment of the employees, who appreciate being
involved and listened to during a crisis.
FALSE
FALSE
21. A
press release is a printed statement that describes how an organization is
responding to a crisis and who is in charge.
TRUE
TRUE
22. It
is critical during a press conference to involve technical specialists to
provide more expert and detailed background information.
TRUE
TRUE
23. In
the aftermath of a crisis, it is recommended that top management form a crisis
evaluation team to evaluate the organization's effectiveness in managing the
crisis.
FALSE
FALSE
24. A
learning organization is more appropriate for a stable environment where change
is slow and incremental.
FALSE
FALSE
25. A
learning organization is one that is skilled at creating, acquiring, and
transferring knowledge, and at modifying behavior to reflect new knowledge and
insights.
TRUE
TRUE
26. In
terms of a learning organization, employees who engage in continuous learning
activities are more likely to be a source for their organizational and
competitive advantage.
TRUE
TRUE
27. Explicit
knowledge is the instinct and intuition that an experienced practitioner
possesses.
FALSE
FALSE
28. Organizational
learning involves external and internal sources.
TRUE
TRUE
29. Discontinuous
change occurs when anticipated or expected changes bear no resemblance to the
present or the past.
TRUE
TRUE
30. The
traditional organization is based on the bureaucratic model that emphasizes a
command-and-control structure, decentralized decision making, highly formalized
systems, specialized tasks, and an adaptive culture.
FALSE
FALSE
31. The
traditional organization fosters competition among individuals.
TRUE
TRUE
32. The
mindset of leaders in a learning organization is that there is a "right
way" to do things.
FALSE
FALSE
33. The
learning organization embraces the idea that people will learn if encouraged to
face challenges, experiment, fail, and reflect on their experiences.
TRUE
TRUE
34. As
related to organizational culture, researchers are finding that the higher the
level of learning and knowledge acquisition, the greater the level of financial
performance, but the lower the level of nonfinancial performance.
FALSE
FALSE
35. Some
experts have argued that failed efforts to create a learning organization
should be, at least in part, blamed on lack of resources.
FALSE
FALSE
36. Leaders
in learning organizations face a single challenge of creating flexible and
adaptive organizations.
FALSE
FALSE
37. Leaders
in learning organizations face the dual challenge of encouraging creativity and
flexibility and maintaining organization-wide standards that emphasize
efficiency and accountability.
TRUE
TRUE
38. The
purpose of using benchmarking is to imitate competitors' best practices which
leads to a competitive advantage for a company.
FALSE
FALSE
39. Encouraging
systems thinking in a learning organization means that boundaries are increased
with other companies.
FALSE
FALSE
40. Benchmarking
yields a comparative advantage by allowing a company to imitate the best
practices of others.
FALSE
FALSE
41. Learning
is more likely to take place in an organization in which experimentation on a
large scale is encouraged and permitted.
FALSE
FALSE
42. One
way to encourage experimentation is to create a sense of urgency in the
organization.
TRUE
TRUE
43. Encouraging
systems thinking is a guideline for enhancing organizational learning.
TRUE
TRUE
44. Creating
a culture that rewards those who succeed, as well as occasionally rewarding
those who fail, sends a message that the organization encourages
risk-taking.
TRUE
TRUE
45. Which
of the following is (are) crises with which organizations may need to respond?
A. natural disasters.
B. terrorist attacks.
C. human error disasters.
D. executive misconduct.
E. all of the above
A. natural disasters.
B. terrorist attacks.
C. human error disasters.
D. executive misconduct.
E. all of the above
46. Strategic
crisis leadership requires all of the following EXCEPT:
A. integrating crisis management into the strategic management process so it remains a regular part of the overall strategy-evaluation process.
B. using environmental monitoring techniques to identify events that could trigger crises in the future.
C. identifying emerging patterns or trends in the regulatory environment, competitive landscape, and social environment.
D. establishing a culture that embraces crisis awareness and preparation as a way of life.
A. integrating crisis management into the strategic management process so it remains a regular part of the overall strategy-evaluation process.
B. using environmental monitoring techniques to identify events that could trigger crises in the future.
C. identifying emerging patterns or trends in the regulatory environment, competitive landscape, and social environment.
D. establishing a culture that embraces crisis awareness and preparation as a way of life.
47. Emerging
trends in the current business environment that make crisis management
especially important among the skills of leadership include:
A. technological advances.
B. the economic downturn.
C. the overall desirability of learning about risk matrices.
D. all of the answers are correct
A. technological advances.
B. the economic downturn.
C. the overall desirability of learning about risk matrices.
D. all of the answers are correct
48. An
effective crisis management plan is one that is:
A. supported by training and periodic drill sessions.
B. coordinated and controlled across levels and units of the organization.
C. upgraded frequently.
D. all of the answers are correct
A. supported by training and periodic drill sessions.
B. coordinated and controlled across levels and units of the organization.
C. upgraded frequently.
D. all of the answers are correct
49. The
best way to mitigate the negative consequences of any crisis is by:
A. top management support.
B. a pre-crisis plan.
C. a capable and supportive staff of employees.
D. all of the answers are correct
A. top management support.
B. a pre-crisis plan.
C. a capable and supportive staff of employees.
D. all of the answers are correct
50. Pre-crisis
planning entails all of the following components EXCEPT:
A. appointing a crisis leader.
B. assessing risk.
C. analyzing the environment.
D. creating a crisis response team.
A. appointing a crisis leader.
B. assessing risk.
C. analyzing the environment.
D. creating a crisis response team.
51. Pre-crisis
planning
A. allows leaders and followers to develop a mental detachment from the issue.
B. allows leaders and followers to make good decisions under low pressure circumstances.
C. is the best way to eliminate the negative consequences of a crisis.
D. allows leaders and followers to make good decisions under severe pressure in the most difficult circumstances.
A. allows leaders and followers to develop a mental detachment from the issue.
B. allows leaders and followers to make good decisions under low pressure circumstances.
C. is the best way to eliminate the negative consequences of a crisis.
D. allows leaders and followers to make good decisions under severe pressure in the most difficult circumstances.
52. The
primary duties of the crisis leader may include activities such as:
A. coordinating the activities of the crisis management team to ensure that the members work well together.
B. requiring individuals or departments to keep logs of complaints or incidents.
C. monitoring customer and employee complaints and behavior.
D. all of the answers are correct
A. coordinating the activities of the crisis management team to ensure that the members work well together.
B. requiring individuals or departments to keep logs of complaints or incidents.
C. monitoring customer and employee complaints and behavior.
D. all of the answers are correct
53. A
crisis response team should:
A. draw on critical internal resources rather than external resources.
B. involve a good mix of representatives from all sectors of the organization.
C. not emphasize diversity due to the critical nature of crises and the likelihood of disagreement with diverse individuals.
D. all of the answers are correct
A. draw on critical internal resources rather than external resources.
B. involve a good mix of representatives from all sectors of the organization.
C. not emphasize diversity due to the critical nature of crises and the likelihood of disagreement with diverse individuals.
D. all of the answers are correct
54. Which
of the following is NOT one of the steps in the risk assessment process?
A. risk reduction
B. risk identification
C. crisis management
D. risk analysis
A. risk reduction
B. risk identification
C. crisis management
D. risk analysis
55. The
crisis leader shares the risk chart created during risk assessment and ranking
during the ____ step of the risk assessment process.
A. risk identification
B. risk reduction
C. crisis management
D. crisis prevention
A. risk identification
B. risk reduction
C. crisis management
D. crisis prevention
56. The
best gauge to determine an organization's readiness to respond to a crisis is
how it rates according to which of the following factors?
A. awareness and access to crisis management information
B. readiness for a quick response
C. effective communication plan in place
D. all of the answers are correct
A. awareness and access to crisis management information
B. readiness for a quick response
C. effective communication plan in place
D. all of the answers are correct
57. A
risk assessment process begins with a "what-if" scenario analysis
which asks which of the following questions?
A. What could happen?
B. Where are we vulnerable?
C. How much will it cost the company?
D. A and b.
E. None of the above
A. What could happen?
B. Where are we vulnerable?
C. How much will it cost the company?
D. A and b.
E. None of the above
58. It
is generally believed that within ____ of becoming aware that a crisis
situation may exist, company officials must be prepared to issue an initial
statement to the media and other key stakeholder groups.
A. 24 hours
B. 30 minutes
C. an hour
D. 48 hours
A. 24 hours
B. 30 minutes
C. an hour
D. 48 hours
59. Which
of the following is NOT one of the key tenets of crisis leadership, according
to some experts?
A. work with your crisis management team
B. play not to lose and develop a bunker mentality
C. stay engaged and lead from the front
D. focus on the big picture and communicate the vision.
A. work with your crisis management team
B. play not to lose and develop a bunker mentality
C. stay engaged and lead from the front
D. focus on the big picture and communicate the vision.
60. All
of the following are questions that often emerge after a crisis EXCEPT:
A. What happened?
B. What are you going to do to ensure it never happens again?
C. When did it happen?
D. How did it happen?
A. What happened?
B. What are you going to do to ensure it never happens again?
C. When did it happen?
D. How did it happen?
61. A
____ is a printed statement that describes how an organization is responding to
a crisis and who is in charge.
A. press release
B. crisis bulletin
C. press kit
D. crisis release
A. press release
B. crisis bulletin
C. press kit
D. crisis release
62. The
press kit:
A. is a package of information about a company.
B. should include a specific press release related to the current incident.
C. should be distributed to the media when a crisis breaks.
D. all of the answers are correct
A. is a package of information about a company.
B. should include a specific press release related to the current incident.
C. should be distributed to the media when a crisis breaks.
D. all of the answers are correct
63. Effective
crisis communication requires:
A. providing some detail regarding how the organization will avoid a repeat in the future.
B. assembling all stakeholders together and presenting the same message.
C. keeping the crisis leader informed about how the organization is handling the crisis.
D. all of the answers are correct
A. providing some detail regarding how the organization will avoid a repeat in the future.
B. assembling all stakeholders together and presenting the same message.
C. keeping the crisis leader informed about how the organization is handling the crisis.
D. all of the answers are correct
64. In
the aftermath of a crisis, top management should launch an evaluation that
pertains to:
A. how effectively the crisis team and the crisis management plan performed.
B. what worked least in mitigating the problem.
C. how effectively the organization handled victims and family members.
D. all of the answers are correct
A. how effectively the crisis team and the crisis management plan performed.
B. what worked least in mitigating the problem.
C. how effectively the organization handled victims and family members.
D. all of the answers are correct
65. In
his book, The Fifth Discipline, Peter Senge makes a compelling case that
an organization's survival is linked to its:
A. top management.
B. employees' dedication.
C. ability to learn and adapt.
D. all of the answers are correct
A. top management.
B. employees' dedication.
C. ability to learn and adapt.
D. all of the answers are correct
66. A
____ organization is one that is skilled at creating, acquiring, and
transferring knowledge, and at modifying behavior to reflect new knowledge and
insights.
A. traditional
B. learning
C. diverse
D. dynamic
A. traditional
B. learning
C. diverse
D. dynamic
67. Under
which of the following conditions is a learning environment most needed?
A. a stable environment where change is slow and incremental.
B. a rapidly changing environment where employee skills and abilities remain unchanged.
C. an environment with increasing pressure for employees to upgrade their skills and where there are no guarantees of job security
D. in a rapidly changing environment with increasing globalization, competition, and technological shifts.
A. a stable environment where change is slow and incremental.
B. a rapidly changing environment where employee skills and abilities remain unchanged.
C. an environment with increasing pressure for employees to upgrade their skills and where there are no guarantees of job security
D. in a rapidly changing environment with increasing globalization, competition, and technological shifts.
68. Which
of the following is (are) internal sources of organizational learning?
A. customers
B. competitors
C. Academic publications
D. employees
A. customers
B. competitors
C. Academic publications
D. employees
69. Organizational
knowledge:
A. is developed through training sessions.
B. is both tacit and explicit.
C. cannot exist without the emphatic sponsorship of top management.
D. all of the answers are correct
A. is developed through training sessions.
B. is both tacit and explicit.
C. cannot exist without the emphatic sponsorship of top management.
D. all of the answers are correct
70. Explicit
or tacit knowledge is:
A. highly personal.
B. strongly rooted in action.
C. the instinct and intuition that an experienced practitioner possesses.
D. expressed in a system of rules.
A. highly personal.
B. strongly rooted in action.
C. the instinct and intuition that an experienced practitioner possesses.
D. expressed in a system of rules.
71. Tacit
knowledge is acquired from
A. manuals regarding an organization's culture.
B. databases acquired from other sources.
C. intuition based on experience.
D. genetics
A. manuals regarding an organization's culture.
B. databases acquired from other sources.
C. intuition based on experience.
D. genetics
72. Which
of the following is a characteristic of a traditional organization?
A. flat horizontal structure
B. personal and group networks of free, open exchanges with no filters
C. centralized decision making
D. loose, flexible, and adaptive roles
A. flat horizontal structure
B. personal and group networks of free, open exchanges with no filters
C. centralized decision making
D. loose, flexible, and adaptive roles
73. Which
of the following is a characteristic of a learning organization?
A. strategy is formulated from the top and passed down
B. formal systems of communication tied to the vertical hierarchy with lots of filters
C. stable environment
D. loose, flexible, and adaptive roles
A. strategy is formulated from the top and passed down
B. formal systems of communication tied to the vertical hierarchy with lots of filters
C. stable environment
D. loose, flexible, and adaptive roles
74. All
of the following are characteristics of traditional organizations EXCEPT:
A. adaptive culture that encourages continuous improvement and change.
B. stable environment.
C. vertical structure.
D. rigid culture that is not responsive to change.
A. adaptive culture that encourages continuous improvement and change.
B. stable environment.
C. vertical structure.
D. rigid culture that is not responsive to change.
75. All
of the following are characteristics of learning organizations EXCEPT:
A. flat horizontal structure.
B. centralized decision making.
C. adaptive culture that encourages continuous improvement and change.
D. strategy is a collaborative effort within the organization and with other companies.
A. flat horizontal structure.
B. centralized decision making.
C. adaptive culture that encourages continuous improvement and change.
D. strategy is a collaborative effort within the organization and with other companies.
76. The
traditional organization is based on the bureaucratic model that
emphasizes:
A. highly formalized systems.
B. a rigid, closed culture.
C. specialized tasks.
D. all of the answers are correct
A. highly formalized systems.
B. a rigid, closed culture.
C. specialized tasks.
D. all of the answers are correct
77. In
learning organizations:
A. the horizontal structure is constituted around functional specialities rather than work flows or processes.
B. few strict rules and procedures prescribe how things are done.
C. rewards are individualized.
D. all of the answers are correct
A. the horizontal structure is constituted around functional specialities rather than work flows or processes.
B. few strict rules and procedures prescribe how things are done.
C. rewards are individualized.
D. all of the answers are correct
78. ____
change occurs when anticipated or expected changes bear no resemblance to the
present or the past.
A. Acquisitional
B. Radical
C. Organizational
D. Discontinuous
A. Acquisitional
B. Radical
C. Organizational
D. Discontinuous
79. Which
of the following is NOT one of the guidelines for enhancing organizational
learning?
A. broaden employees' scope of reference
B. encourage systems thinking
C. create a shared vision for learning
D. create a climate in which experimentation is encouraged
A. broaden employees' scope of reference
B. encourage systems thinking
C. create a shared vision for learning
D. create a climate in which experimentation is encouraged
80. Benchmarking:
A. allows a company to imitate the best practices of others.
B. is a leader strategy.
C. yields a comparative advantage.
D. is not recommended to develop creative thinking skills.
A. allows a company to imitate the best practices of others.
B. is a leader strategy.
C. yields a comparative advantage.
D. is not recommended to develop creative thinking skills.
81. The
encouragement of systems thinking:
A. is a task of leaders who seek to enhance organizational learning.
B. has the best results in traditional organizations.
C. was a driving force in the 1980s, but has been largely discarded in favor of specialized thinking.
D. increases efficiency, but appears to deter creativity.
A. is a task of leaders who seek to enhance organizational learning.
B. has the best results in traditional organizations.
C. was a driving force in the 1980s, but has been largely discarded in favor of specialized thinking.
D. increases efficiency, but appears to deter creativity.
82. In
creating a learning organization culture, there must be a culture which is
conducive to individual and team learning which
A. has team learning.
B. encourages self-initiated activity.
C. does not need support from leaders.
D. uses a taskmaster approach to excel.
E. a and b
A. has team learning.
B. encourages self-initiated activity.
C. does not need support from leaders.
D. uses a taskmaster approach to excel.
E. a and b
83. Which
of the following should exist in a learning organization culture?
A. doing things right the first time without mistakes.
B. broadening employees' frames of reference to enhance learning.
C. sharing knowledge to encourage creative ideas.
D. providing employees opportunities to solve problems.
E. a and b
A. doing things right the first time without mistakes.
B. broadening employees' frames of reference to enhance learning.
C. sharing knowledge to encourage creative ideas.
D. providing employees opportunities to solve problems.
E. a and b
84. In
a learning organization, incentives and rewards should be?
A. small to avoid inter-departmental competition.
B. large to encourage innovation and learning.
C. visible to others.
D. invisible, almost, unnoticeable, to avoid morale problems.
E. b and d
A. small to avoid inter-departmental competition.
B. large to encourage innovation and learning.
C. visible to others.
D. invisible, almost, unnoticeable, to avoid morale problems.
E. b and d
85. How
is creative thinking and innovation encouraged in a learning
organization?
A. encourage employees to consider possibilities that do not exist.
B. encourage employees to research and learn from some of the best in the industry.
C. provide large and visible rewards for successful ideas and innovations.
D. all of the above.
A. encourage employees to consider possibilities that do not exist.
B. encourage employees to research and learn from some of the best in the industry.
C. provide large and visible rewards for successful ideas and innovations.
D. all of the above.
86. Explain
why crisis leadership competence is an important consideration when hiring new
leaders.
Crises
are inevitable. It is not a question of "if" a crisis will happen,
but "when." A crisis can inflict severe damage to an organization if
not properly managed. In a crisis, stock prices plummet and operating costs
escalate, causing both short- and long-term financial losses. A crisis that is
mismanaged can also damage an organization's reputation and diminish consumer
confidence in the organization's mission, or in some cases can lead to its
demise altogether. As the economy limps on and speculation of it sliding into a
recession builds, the real prospect exists that many corporations are going to
face a crisis of survival. Rising oil prices, the housing downturn, the subprime
crisis, the credit crunch, and talk of possible inflation and recession are all
ingredients that could stymie even the best-prepared CEOs.
87. Identify
the benefits of pre-crisis planning.
Pre-crisis
planning buys you time. You are ready when a crisis strikes. Many organizations
are presented with early warning signals of an impending crisis but fail to
recognize and heed them. The problem is detecting the signals that warn of a
crisis. It is for this reason that experts recommend pre-crisis planning for
any size of business. Pre-crisis planning allows you to create systems and
procedures for detecting signals that warn of an impending crisis before it
happens. Effective pre-crisis planning leads to effective crisis management
during and after a crisis.
88. Identify
three key components of the pre-crisis planning phase.
Three
components to pre-crisis planning that every organization (large, small,
for-profit, or non-profit) should address are: (1) appointing a crisis leader,
(2) creating a crisis response team, and (3) assessing risk.
89. Describe
the five-step process for crisis risk assessment.
The
five-step process for risk assessment consists of: (1) risk identification, (2)
risk assessment and ranking, (3) risk reduction strategies, (4) crisis prevention
simulations, and (5) crisis management. In step one, crisis team members begin
by first identifying the worst-case incidents that could have severe
consequences on people, the organization's financial position, or its image.
This process is described as risk identification and results in the creation of
a risk chart. Next, these incidents are analyzed and ranked. During the risk
reduction step, the crisis leader shares the risk chart created during risk
assessment and ranking with team members or larger audiences, and they begin
debating and formulating strategies for countering each crisis or threat. The
fourth step in the risk assessment process is crisis prevention. Here, tests
and simulations are conducted to test employees under pressure. The fifth step
of risk assessment is crisis management. A team is assembled and readied to
respond in the event of a real crisis.
90. Describe
the role of the CEO and communication in managing a crisis.
The
CEO must be out leading the charge before, during, and after a crisis. The
CEO's involvement demonstrates to the public the seriousness with which the
incident is viewed. Before a crisis, the CEO should be actively involved in
pre-crisis planning. During a crisis, he or she cannot develop a bunker mentality.
As mentioned in the chapter, the three key tenets of crisis leadership are (1)
stay engaged and lead from the front, (2) focus on the big picture and
communicate the vision, and (3) work with your crisis management team. During a
crisis, the CEO must have answers to the following questions: What happened?
How did it happen? What are you doing to address the crisis? And after the
crisis, what are you going to do to ensure that it never happens again? For all
of these things to happen, the organization must have in place a well-designed
communication system and the leader must be an effective communicator.
91. List
five or more attributes that can be used to describe the learning
organization.
·
|
Learning from mistakes and past experience
|
·
|
Learning from others
|
·
|
Systematic problem solving
|
·
|
Experimentation
|
·
|
Sharing knowledge
|
·
|
Strong leadership support
|
|
|
92. Distinguish
between the traditional organization and the learning organization.
The
traditional, efficiency-driven organization has a bureaucratic structure (a
tall pyramid), starting with the CEO at the top and everyone else functionally
organized in layers below. Decision making is centralized at the top of the
hierarchy, which controls and coordinates all functional units throughout the
organization. To ensure reliable and predictable results, tasks are rigidly
defined and broken down into specialized jobs. Strict formal rules and
procedures for performing each task are enforced. Though repetitive, boring,
and unchallenging, it is an efficient way to keeping the production line
running smoothly. An elaborate formal system of reporting allows leaders to
closely monitor work operations and maintain efficient, steady performance.
This formal system is a powerful tool for controlling information and often
acts as a filter in determining what information leaders decide to pass down to
lower-level employees.
By contrast, in learning organizations the vertical structure is abandoned for a flat, horizontal structure. The horizontal structure is constituted around work flows or processes rather than functional specialties. To encourage innovation and creativity in meeting current challenges, learning organizations are designing tasks that are much looser, free flowing, and adaptive. Few strict rules and procedures prescribe how things should be done. The term organic has been used to describe this type of organization. Responsibility and authority are decentralized to lower-level workers, empowering them to think, experiment, create, learn, and solve problems at their level.
By contrast, in learning organizations the vertical structure is abandoned for a flat, horizontal structure. The horizontal structure is constituted around work flows or processes rather than functional specialties. To encourage innovation and creativity in meeting current challenges, learning organizations are designing tasks that are much looser, free flowing, and adaptive. Few strict rules and procedures prescribe how things should be done. The term organic has been used to describe this type of organization. Responsibility and authority are decentralized to lower-level workers, empowering them to think, experiment, create, learn, and solve problems at their level.
93. Describe
the role of leadership in creating a learning organization.
The
learning organization represents a paradigmic shift in the approach
organizations take to managing their internal and external relationships. In
today's rapidly changing business environment, organizations must transform
into active learning organisms or risk becoming extinct. To succeed,
organizations must be proactive and anticipatory, which requires continuous
improvement. Thus, the traditional organization model that emphasized
efficiency and stability is being replaced by a model that is learning-driven
and adaptable.
Leaders play a critical role in effecting this transformation. Without effective leadership from the top and throughout the organizational structure, it is hard to imagine how the learning organization can succeed. A shared vision and mission are the basis for the emergence of strategy in a learning organization, and this is the responsibility of leadership. Leaders can play a key role in enhancing organizational learning by encouraging creative thinking, creating a climate in which experimentation and risk taking are encouraged, providing incentives for learning and innovation, building confidence in followers' capacity to learn and adapt, encouraging systems thinking, and creating a culture conducive to individual and team learning.
Leaders play a critical role in effecting this transformation. Without effective leadership from the top and throughout the organizational structure, it is hard to imagine how the learning organization can succeed. A shared vision and mission are the basis for the emergence of strategy in a learning organization, and this is the responsibility of leadership. Leaders can play a key role in enhancing organizational learning by encouraging creative thinking, creating a climate in which experimentation and risk taking are encouraged, providing incentives for learning and innovation, building confidence in followers' capacity to learn and adapt, encouraging systems thinking, and creating a culture conducive to individual and team learning.
94. Strategic
crisis leadership is about a leader taking action in three key areas. What are
these areas?
Strategic
crisis leadership requires a leader to: (1) use environmental monitoring
techniques to identify events that could trigger crises in the future, (2)
integrate crisis management into the strategic management process so it remains
a regular part of the overall strategy-evaluation process, and (3) establish a
culture that embraces crisis awareness and preparation as a way of life.
95. How
has the Internet affected the way crises are perceived in our society
today?
The
Internet allows millions to analyze and critique virtually every aspect of an
organization's response to a crisis. Technologies such as e-mail, Web pages,
and social networking sites are weapons for affected organizations and the
outside world to use during a crisis. A crisis is instantly visible and viral
with the potential to inflict terminal damage on the affected organization. In
many cases, there is a minute-by-minute real-time analysis of the financial
implications of the crisis by investors, customers, and analysts, as the
Internet is linked with investment portfolios.
96. What
are the main components of a precrisis plan?
Pre-crisis
planning entails three components that every organization (large, small, for
profit, or non-profit) should address when putting together a comprehensive
crisis response plan: (1) appointing a crisis leader, (2) creating a crisis
response team, and (3) assessing risk.
97. The
pre-crisis response plan requires the appointment of a crisis leader. Describe
the responsibilities of this person.
The
primary duties of the crisis leader may include activities such as the
following:
·
|
Requiring individuals or departments to keep logs of complaints
or incidents
|
·
|
Monitoring customer and employee complaints and behavior
|
·
|
Identifying emerging patterns or trends in the regulatory
environment, competitive landscape, and social environment
|
·
|
Coordinating the activities of the crisis management team to
ensure that the members work well together
|
|
|
98. The
best indicator of an organization's readiness to respond to a crisis is how it
rates on five factors. What are these five factors?
The best
gauge to determine an organization's readiness to respond to a crisis is how it
rates according to the following five factors:
1.
|
Quality of strategic crisis plan
|
2.
|
Awareness and access to crisis management information
|
3.
|
Readiness for a quick response
|
4.
|
Effective communication plan in place
|
5.
|
Effective crisis leadership
|
|
|
99. What
is the appropriate role of an organization's top leadership during a
crisis?
The
appropriate role for an organization's top leadership during a crisis is to
adhere to the following three tenets: (1) stay engaged and lead from the front,
(2) focus on the big picture and communicate the vision, and (3) work with your
crisis management team.
100. What
does it mean to say that organizational learning is a multilevel sharing
process?
Organizational
learning is a multilevel process, bringing together individual, group, and
organizational levels of analysis. It is dynamic, bridging the levels with
specific mechanisms. It involves multiple learning processes (intuition,
integrating, interpreting, and institutionalization) that allow learning to
feed forward to the organizational level and feed back to the individual. The
most successful learning organizations compound their advantage by encouraging
employees at all levels to collect and share information across boundaries
rather than hoarding it. This is facilitated through communication and
information hubs that make knowledge sharing a way of life. In the end, one of
the most important qualities for a learning organization to have is a strong
culture that supports not just knowledge creation but its transfer across
functional or divisional boundaries.
101. What
factors account for the fact that the learning organization is described as
more creative and innovative than the traditional organization form?
To
encourage innovation and creativity in meeting current challenges, learning
organizations are designing tasks that are much looser, free flowing, and
adaptive. Few strict rules and procedures prescribe how things should be done.
The term organic has been used to describe this type of organization.
Responsibility and authority are decentralized to lower-level workers,
empowering them to think, experiment, create, learn, and solve problems at
their level. Rather than responding to known challenges, employees are
encouraged to create the future. People with maverick ideas are
out-of-the-ordinary proposals are welcomed and given room to operate in a
learning organization.
102. Strategic
crisis leadership is about a leader taking action in three key areas. What are
these areas?
Strategic
crisis leadership requires a leader to: (1) use environmental monitoring
techniques to identify events that could trigger crises in the future, (2)
integrate crisis management into the strategic management process so it remains
a regular part of the overall strategy-evaluation process, and (3) establish a
culture that embraces crisis awareness and preparation as a way of life.
103. How
has the Internet affected the way crises are perceived in our society
today?
The
Internet allows millions to analyze and critique virtually every aspect of an
organization's response to a crisis. Technologies such as e-mail, Web pages,
and social networking sites are weapons for affected organizations and the
outside world to use during a crisis. A crisis is instantly visible and viral
with the potential to inflict terminal damage on the affected organization. In
many cases, there is a minute-by-minute real-time analysis of the financial
implications of the crisis by investors, customers, and analysts, as the
Internet is linked with investment portfolios.
104. Identify
the benefits of pre-crisis planning.
Pre-crisis
planning buys you time. You are ready when a crisis strikes. Many organizations
are presented with early warning signals of an impending crisis but fail to
recognize and heed them. The problem is detecting the signals that warn of a
crisis. It is for this reason that experts recommend pre-crisis planning for
any size of business. Pre-crisis planning allows you to create systems and
procedures for detecting signals that warn of an impending crisis before it
happens. Effective pre-crisis planning leads to effective crisis management
during and after a crisis.
105. What
are the main components of a pre-crisis plan?
Pre-crisis
planning entails three components that every organization (large, small,
for-profit, or non-profit) should address when putting together a comprehensive
crisis response plan: (1) appointing a crisis leader, (2) creating a crisis
response team, and (3) assessing risk.
106. The
pre-crisis response plan requires the appointment of a crisis leader. Describe
the responsibilities of this person.
The
primary duties of the crisis leader may include activities such as the
following:
·
|
Requiring individuals or departments to keep logs of complaints
or incidents
|
·
|
Monitoring customer and employee complaints and behavior
|
·
|
Identifying emerging patterns or trends in the regulatory
environment, competitive landscape, and social environment
|
·
|
Coordinating the activities of the crisis management team to
ensure that the members work well together
|
|
|
107. Describe
the five-step process to crisis risk assessment.
The
five-step process for risk assessment consists of: (1) risk identification, (2)
risk assessment and ranking, (3) risk reduction strategies, (4) crisis
prevention simulations, and (5) crisis management. In step one, crisis team
members begin by first identifying the worst-case incidents that could have
severe consequences on people, the organization's financial position, or its
image. This process is described as risk identification and results in the
creation of a risk chart. Next, these incidents are analyzed and ranked. During
the risk reduction step, the crisis leader shares the risk chart created during
risk assessment and ranking with team members or larger audiences, and they
begin debating and formulating strategies for countering each crisis or threat.
The fourth step in the risk assessment process is crisis prevention. Here,
tests and simulations are conducted to test employees under pressure. The fifth
step of risk assessment is crisis management. A team is assembled and readied
to respond in the event of a real crisis.
108. The
best indicator of an organization's readiness to respond to a crisis is how it
rates on five factors. What are these five factors?
The
best gauge to determine an organization's readiness to respond to a crisis is
how it rates according to the following five factors:
1.
|
Quality of strategic crisis plan
|
2.
|
Awareness and access to crisis management information
|
3.
|
Readiness for a quick response
|
4.
|
Effective communication plan in place
|
5.
|
Effective crisis leadership
|
|
|
109. What
is the appropriate role of an organization's top leadership during a
crisis?
The
appropriate role for an organization's top leadership during a crisis is to
adhere to the following three tenets: (1) stay engaged and lead from the front,
(2) focus on the big picture and communicate the vision, and (3) work with your
crisis management team.
110. What
is the difference between a press release and a press kit?
A
press release is a printed statement that describes how an organization is
responding to a crisis and who is in charge. A press kit is a package of
information about a company, including names and pictures of its executives, a
fact sheet, and key milestones in the company's history. In the event of a
crisis, the last item included in the press kit is a specific press release
related to the current incident.
111. List
five or more attributes that can be used to describe the learning
organization.
·
|
Learning from mistakes and past experience
|
·
|
Learning from others
|
·
|
Systematic problem solving
|
·
|
Experimentation
|
·
|
Sharing knowledge
|
·
|
Strong leadership support
|
|
|
112. Distinguish
between the traditional organization and the learning organization.
The
traditional, efficiency-driven organization has a bureaucratic structure (a
tall pyramid), starting with the CEO at the top and everyone else functionally
organized in layers below. Decision making is centralized at the top of the
hierarchy, which controls and coordinates all functional units throughout the
organization. To ensure reliable and predictable results, tasks are rigidly
defined and broken down into specialized jobs. Strict formal rules and
procedures for performing each task are enforced. Though repetitive, boring,
and unchallenging, it is an efficient way to keeping the production line
running smoothly. An elaborate formal system of reporting allows leaders to
closely monitor work operations and maintain efficient, steady performance.
This formal system is a powerful tool for controlling information and often
acts as a filter in determining what information leaders decide to pass down to
lower-level employees.
By contrast, in learning organizations the vertical structure is abandoned for a flat, horizontal structure. The horizontal structure is constituted around work flows or processes rather than functional specialties. To encourage innovation and creativity in meeting current challenges, learning organizations are designing tasks that are much looser, free flowing, and adaptive. Few strict rules and procedures prescribe how things should be done. The term organic has been used to describe this type of organization. Responsibility and authority are decentralized to lower-level workers, empowering them to think, experiment, create, learn, and solve problems at their level.
By contrast, in learning organizations the vertical structure is abandoned for a flat, horizontal structure. The horizontal structure is constituted around work flows or processes rather than functional specialties. To encourage innovation and creativity in meeting current challenges, learning organizations are designing tasks that are much looser, free flowing, and adaptive. Few strict rules and procedures prescribe how things should be done. The term organic has been used to describe this type of organization. Responsibility and authority are decentralized to lower-level workers, empowering them to think, experiment, create, learn, and solve problems at their level.
113. What
does it mean to say that organizational learning is a multilevel sharing
process?
Organizational
learning is a multilevel process, bringing together individual, group, and
organizational levels of analysis. It is dynamic, bridging the levels with
specific mechanisms. It involves multiple learning processes (intuition,
integrating, interpreting, and institutionalization) that allow learning to
feed forward to the organizational level and feed back to the individual. The
most successful learning organizations compound their advantage by encouraging
employees at all levels to collect and share information across boundaries
rather than hoarding it. This is facilitated through communication and
information hubs that make knowledge sharing a way of life. In the end, one of
the most important qualities for a learning organization to have is a strong
culture that supports not just knowledge creation but its transfer across
functional or divisional boundaries.
114. What
factors account for the fact that the learning organization is described as
more creative and innovative than the traditional organization form?
To
encourage innovation and creativity in meeting current challenges, learning
organizations are designing tasks that are much looser, free flowing, and
adaptive. Few strict rules and procedures prescribe how things should be done.
The term organic has been used to describe this type of organization.
Responsibility and authority are decentralized to lower-level workers,
empowering them to think, experiment, create, learn, and solve problems at
their level. Rather than responding to known challenges, employees are
encouraged to create the future. People with maverick ideas are
out-of-the-ordinary proposals are welcomed and given room to operate in a
learning organization.
115. Describe
the role of leadership in creating a learning organization.
The
learning organization represents a paradigmic shift in the approach
organizations take to managing their internal and external relationships. In
today's rapidly changing business environment, organizations must transform
into active learning organisms or risk becoming extinct. To succeed,
organizations must be proactive and anticipatory, which requires continuous
improvement. Thus, the traditional organization model that emphasized
efficiency and stability is being replaced by a model that is learning-driven
and adaptable.
Leaders play a critical role in effecting this transformation. Without effective leadership from the top and throughout the organizational structure, it is hard to imagine how the learning organization can succeed. A shared vision and mission are the basis for the emergence of strategy in a learning organization, and this is the responsibility of leadership. Leaders can play a key role in enhancing organizational learning by encouraging creative thinking, creating a climate in which experimentation and risk taking are encouraged, providing incentives for learning and innovation, building confidence in followers' capacity to learn and adapt, encouraging systems thinking, and creating a culture conducive to individual and team learning.
Leaders play a critical role in effecting this transformation. Without effective leadership from the top and throughout the organizational structure, it is hard to imagine how the learning organization can succeed. A shared vision and mission are the basis for the emergence of strategy in a learning organization, and this is the responsibility of leadership. Leaders can play a key role in enhancing organizational learning by encouraging creative thinking, creating a climate in which experimentation and risk taking are encouraged, providing incentives for learning and innovation, building confidence in followers' capacity to learn and adapt, encouraging systems thinking, and creating a culture conducive to individual and team learning.
116. After
a recent plane crash, the CEO pays for all the family or close friends of the
victims to come to a central location and provides them with counseling
services, support, and accommodations. Which guideline to effective
communications is the CEO adhering?
a.
|
be present
|
b.
|
don't "spin"
|
c.
|
communicate plan of action
|
d.
|
be sensitive with affected parties
|
e.
|
avoid conflicting messages
|
f.
|
show a plan for how you will avoid a repeat in the future
|
g.
|
don't make excuses for the leader
|
h.
|
go the extra mile
|
i.
|
take credit without being self-absorbed
|
j.
|
be honest and straightforward with the media
|
|
|
D
117. One
of the largest airlines in the country is in negotiations with the pilot,
flight attendant, and mechanic unions to discuss how a bankruptcy might be
adverted. After a day-long conference between the CEO of the airline and the
heads of the pilot, flight attendant, and mechanic unions, all four leaders
take time to talk to the media together. Which guideline of effective
communications are these leaders concerned with?
a.
|
be present
|
b.
|
don't "spin"
|
c.
|
communicate plan of action
|
d.
|
be sensitive with affected parties
|
e.
|
avoid conflicting messages
|
f.
|
show a plan for how you will avoid a repeat in the future
|
g.
|
don't make excuses for the leader
|
h.
|
go the extra mile
|
i.
|
take credit without being self-absorbed
|
j.
|
be honest and straightforward with the media
|
|
|
E
118. A
CEO is taking the day off to spend with his family; however, his secretary
calls his cell phone to tell him that there is a major crisis at work and no
one knows what to do. The CEO decides to go to the office to see for himself.
Which guideline to effective communications is the CEO adhering?
a.
|
be present
|
b.
|
don't "spin"
|
c.
|
communicate plan of action
|
d.
|
be sensitive with affected parties
|
e.
|
avoid conflicting messages
|
f.
|
show a plan for how you will avoid a repeat in the future
|
g.
|
don't make excuses for the leader
|
h.
|
go the extra mile
|
i.
|
take credit without being self-absorbed
|
j.
|
be honest and straightforward with the media
|
|
|
A
119. Jane
works at a company in which employees who make mistakes are given verbal and
written reprimands. The jobs are also clearly defined and employees are not
allowed to deviate from the standard operating procedures. Which of the
following types of organizations does Jane work at?
a.
|
traditional
|
b.
|
learning
|
|
|
A
120. Jim
works in an organization where management lets the employees handle routine
decisions. His managers are always helpful and offer encouragement and ways to
improve when needed. Jim works in which of the following types of
organizations?
a.
|
traditional
|
b.
|
learning
|
|
|
B
121. Find
out if your college or university has a pre-crisis plan. If you find one, read
and critique it for its effectiveness and present your findings to your
classmates. If there is none, present an argument for having one.
Students'
answers will vary.
122. Identify
someone who has been or is part of a crisis prevention and management team,
preferably someone on your campus's crisis prevention and management team. Ask
him or her to describe the makeup and functioning of this team.
Students'
answers will vary.
123. Using
your college or university as a reference, identify five risk areas that could
result in crisis if nothing is done now. Recommend a risk reduction plan or
strategy that can help your school avert or deal with a crisis for one of these
risk areas.
Students'
answers will vary.
124. Think
of a leader whom you have observed in a crisis situation, either in person or
on TV. Critique the leader's handling of the crisis using the text discussion
as your guide.
Students'
answers will vary.
125. Looking
at Exhibit 12.3 from your book, explain whether where you work or have worked
is more of a traditional organization or a learning organization.
Students'
answers will vary.
126. Describe
why a senior leader's physical presence is critical during a crisis.
An
organization's degree of preparedness for a potential crisis depends upon
senior leaders and other responsible personnel. When there is a crisis,
employees will seek guidance from company senior leaders as to how business
operations will continue and ways to cope with the situation.
127. What
are the purpose and benefits of creating a comprehensive crisis response plan
before a crisis happens?
A
comprehensive crisis response plan based on risk analysis indicates who is in
charge of making key decisions, who is on the team and what their roles and
responsibilities are, who is to respond to media inquiries, how the plan will
be executed, and what other employees are required or not required to do or
say. This plan can mean the difference between survival and the total demise of
an organization. The benefits of a pre-crisis response plan are obvious¾faster
response time, better judgments, ready and available resources, fewer costly
mistakes, less panic, and quicker resolution of the crisis.
128. What
advice would you give to a leader who wants to improve his or her
organization's communications function so that it is more effective during a
crisis?
Students'
answers will vary.
129. How
important to an organization is internal (employee) communication during a
crisis?
Investing
time and other resources in developing an effective crisis communication system
with employees has significant short- and long-term benefits. In the short
term, well-informed employees will assist the organization in presenting the
facts to the outside world. Also, employees, even those of the lower levels of
the organization, may have excellent insight on the incident and valuable
suggestions on solution alternatives. Their immediate input may provide the
pathway to a quick recovery.
In the long term, the organization will have won over the confidence, loyalty, and commitment of the employees, who appreciate being involved and listened to during the crisis. Employees' sense of belonging and self-worth is enhanced, and a culture of teamwork and cohesion is created.
In the long term, the organization will have won over the confidence, loyalty, and commitment of the employees, who appreciate being involved and listened to during the crisis. Employees' sense of belonging and self-worth is enhanced, and a culture of teamwork and cohesion is created.
130. What
message does it send when the organizational culture encourages employees to view
mistakes/problems as opportunities for improvement rather than reasons to blame
or punish those involved?
Creating
a culture that rewards those who succeed, as well as occasionally rewarding
those who fail, sends a message that the organization encourages risk-taking.
If employees realize that mistakes or problems are viewed by leaders as a
symptom of poor performance, they tend to avoid or hide problems. This is often
the wrong approach, because more learning takes place from things that go wrong
than from things that go right.