The Role of Leadership in Crisis Management: A Literature Review

Abstract

Purpose: The purpose of this study is to collect and analyze arguments and counterarguments about the role of leadership in crisis management. The aim is to enhance the existing knowledge in this field by examining and evaluating recent studies on the role of leadership in crisis management within organizational settings. An analysis of the literature examines the explanations of the nature of crises and leadership styles for crisis management. This analysis aims to develop a theoretical framework that may guide companies in their activities to effectively handle a crisis Methodology: This study is a literature review that examines the role of leadership in crisis management. Abstracts containing the phrase 'the role of leadership in crisis management' were kept for the further stages of the research project. The method ensured that the publications provided a thorough and extensive examination of the function of leadership in crisis management. Abstracts that fulfilled these criteria were categorized as either one or two, depending on the importance of their topic and the empirical evidence they presented. Abstracts that received high ranking were thoroughly scrutinized and selected for further examination based on the inclusion of key terms and the discussion of leadership's role in crisis management across the main portions of the articles. This method ensured to present a conceptual model that focuses on the proactive aspects and variables of the crisis management process. The report examined different leadership styles in crisis management as discovered by academic researchers and empirical studies. A thorough evaluation of multiple literary sources was conducted to assess their contribution to the research. Findings: The findings of the study showed that there is no leadership style that can be considered universally effective. The selection of a leadership style is contingent upon several factors, including the competency and conditions of the followers, as well as other variables. There is no one-size-fits-all strategy to effective leadership, since leaders need to adapt their tactics to fit the individual conditions influenced by internal and external forces. Unique Contribution to Theory, Practice and Policy: The academic theories i.e. transformational, transactional and charismatic leadership theories and concepts on crisis management and the role of leadership discussed in this study acknowledge how critical leadership is in crisis management, especially given the frequency and severity of crises organizations face today, such as natural disasters, economic recessions, global pandemics, and cybersecurity threats. In times of crisis, leadership is seen as an essential requirement for creating a proactive organizational environment and culture. These theories and models provide useful pillars for navigating different crises. The study provides a thorough grasp of the role of leaders in crisis management. Transformational leadership, for example, inspires followers to put the organization's goals above their own and encourages change and transformation to reduce environmental risks and disasters. The transformational leadership theory places emphasis on symbolic behavior and the role of leaders in motivating followers to surpass expectations and achieve success; transactional leadership offers rewards if staff follow their aims and receive recognition from the company.  Effective compensation systems motivate employees to provide excellent service and address challenges; and charismatic leadership, provides the leader with the chance to exhibit innovation and depart from the current state of affairs in order to develop a solution for the problem. In times of crises, it offers the leader an opportunity to rally support from the followers.