Change or paradox: the double-edged sword effect of organizational crisis on employee behavior

Abstract

Purpose

Based on cognitive appraisal theory of stress, this study develops an integrated model to examine the double-edged sword effect and boundary conditions of the impact of organizational crisis on employee behavior.

Design/methodology/approach

This study collected 672 employees’ data through three stages of longitudinal follow-up. Hierarchical regression analysis and SPSS macro process were used to test the hypotheses.

Findings

The paper finds that organizational crisis induces unethical pro-organizational behavior through enhanced job insecurity and foster taking charge by stimulating career calling. Employee resilience negatively moderates the relationship between organizational crisis and job insecurity as well as the indirect effects of organizational crisis on unethical pro-organizational behavior through job insecurity. Conversely, it positively moderates the association between organizational crisis and career calling and the indirect effects on taking charge through career calling.

Research limitations/implications

This study not only expands the research on the mechanisms of organizational crisis' effects on employees' behaviors but also provides practical guidance for corporate managers on how to respond to organizational crisis.

Practical implications

The following insights are available to organizations and managers: first, this study confirms that organizational crisis can be perceived as threatening stressors that create job insecurity, which in turn leads to pro-organizational unethical behavior. Therefore, managers in organizational crisis should focus on stress regulation and guidance, pay timely attention to changes in the mindset of employees to reduce job insecurity, and strictly prohibit unethical pro-organizational behavior. They should promptly calm and control the atmosphere of panic and anxiety in the organization, do a good job of coordinating the division of labor, reduce personnel conflicts and contradictions, create a good organizational climate and reduce employees' sense of stress and negative perceptions of organizational crisis, thus reducing job insecurity and being able to meet the challenges in a better state. Secondly, this study confirms that employees also perceive organizational crisis as challenges and develop career calling, which in turn inspires proactive change behaviors. This suggests that managers in organizational crisis should promote the positive perception of organizational crisis as challenge, stimulate the career calling of employees in organizational crisis and call on and encourage employees to actively adopt taking charge. Therefore, managers should promptly give employees work affirmation, rewards and punishments, enhance the sense of participation and intrinsic motivation of subordinates, improve self-efficacy and self-confidence levels, effectively reduce the negative perception of organizational crisis, awaken positive psychological energy within individuals, increase their sense of belonging to the organization and thus, increase employees' awareness of the positive challenges of organizational crisis, stimulate employees' career calling through positive and optimistic beneficial pressure drive them to lead the corresponding changes in the crisis. Finally, this study confirms that employees' own resilience can change the double-edged sword effect of organizational crisis. Employees with high resilience are more likely to see organizational crisis as challenge and are thus more likely to develop career calling and are more inclined to initiate change, while employees with low resilience are more likely to see organizational crisis as threat, are more negatively affected by them, develop greater job insecurity and are, thus, more inclined to commit unethical pro-organizational behaviors. This reflects the fact that organizations should constantly cultivate employees' resilience and enhance their cognitive toughness at the same time. For instance, the organization can regularly use promotional lectures and scenarios to help leaders and employees establish corporate ethics, strengthen moral beliefs and correctly understand the nature of unethical affinity behavior. Managers should encourage and advocate positive and correct behaviors such as overcoming difficulties, positive innovation and positive suggestions to promote the sustainable and healthy development of the organization.

Social implications

The results of this study can increase the organization’s understanding of the negative effects of crisis, help the organization take measures to manage and guide the employees in organizational crisis, more effective and targeted functional changes within the organization, reduce stress damage and improve the efficiency and effectiveness of crisis management. It is also beneficial to improve competitiveness and foresight in the organization’s industry and enhance organizations and employees’ resilience.

Originality/value

This study explores the double-edged sword effect of organizational crisis on employees’ behavior from the perspective of the cognitive appraisal theory of stress, which theoretically opens up a new research perspective, enriches the research in the fields of organizational crisis and taking charge, pro-organizational unethical behavior relationship and practically provides theoretical guidance for enterprises and managers on how to effectively respond to organizational crisis from the employees, which is of great practical significance.

Citation

Genqiang, L., Yueying, T., Yong, M. and Min, L. (2024), "Change or paradox: the double-edged sword effect of organizational crisis on employee behavior", Journal of Organizational Change Management, Vol. 37 No. 2, pp. 439-462. https://doi.org/10.1108/JOCM-03-2023-0088