Proactive management of enterprise development in the conditions of organizational crisis

Abstract

Crises occur repeatedly throughout the lifecycle of an enterprise. Decision – making to overcome crises should consider the current stage of the enterprise's life, the type of crisis and many other factors. The necessity to identify crisis processes due to their reasons to neutralize them considering the features of particular periods of an enterprise lifecycle determines the importance of the research. The regulations of an organizational crisis theory that concern key reasons of crisis and its place in the lifecycle of an enterprise are discussed in the work. The  research is based on the contrastive method as well as on logical and structural analysis, modeling, classification and generalization methods. The authors have provided an original systematization of scientific approaches that describe the prerequisites and essence of the organizational crisis. Five scientific approaches, that characterize the reasons for the organizational crisis (financial instability, decrease in adaptability, managerial problems, decline of human resource management, organizational pathologies) have been revealed on the basis of Russian and foreign studies. Also the approach that considers organizational crisis as a transition between the stages of the enterprise's lifecycle has been described. On the basis of generalization of theoretical study results, the authors have given the definition of the organizational crisis, which, in contrast to the previous one, is considered to be the transition of an enterprise from the maturity lifecycle stage to the recession stage, and the crisis is identified in accordance to the distinguished prerequisites. The authors have proven that the organizational crisis in its development goes through several phases – preliminary, critical, chronic and decisive. Notably the decrease of various types of efficiency: financial, adaptive, social, innovative or management can intensify the crisis. The authors have proposed a proactive management mechanism of enterprise’s development in the condition of organizational crisis. The mechanism includes management stages and tools, that differ depending on the identified stages of the organizational crisis. During the research the authors have come to the conclusion that it is necessary to implement the proactive management mechanism for the development of an enterprise at the maturity stage to identify deviations in the development and implementation of management impact of premonitory character. Further research will concern the essence of the organizational crisis from the view point of the enterprise lifecycle theory. Also the efficiency of the suggested mechanism of the proactive management will be testified at particular enterprises of the region.

Keywords

enterprise lifecycle, lifecycle stages, organizational crisis, crisis factors, stages of organizational crisis, management efficiency, proactive management

For citation

Pytkin A.N., Kondrateva K.V. Proactive management of enterprise development in the conditions of organizational crisis. Perm University Herald. Economy, 2018, vol. 13, no. 1, pp. 121–139. DOI 10.17072/1994-9960-2018-1-121-139

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