Organizations sometimes face critical situations or crises that can induce severe consequences or even disasters if wrong decisions are made. The bulk of crisis management research has relied heavily on case study methods yet often with rhetorical or even inconsistent suggestions. With an exclusive focus on crisis prevention, the issue of how organizations can maintain good performance when faced with critical situations has largely remained unexplored. There is also an apparent lack of consideration regarding how aspects of organizational design and task environment interact and affect organizational performance under critical situations. In this paper, we attempt to address this issue from an open system’s perspective and integrate techniques of computational modeling with the analyses of two crisis cases, the Vincennes incident and the Hinsdale incident. The use of a computational model with strong organization theory foundation has provided a systematic mechanism for abstracting empirical information and generating theoretical results, thus complementing conventional case analyses, which thrive on in-depth information but are often limited by the lack of analytical ability to provide theoretical insight that goes beyond empirical descriptions. For the two crisis cases, the study shows, through detailed quantitative illustrations, that the computer model can be very effective in predicting organizational performance and suggesting designs that organizations can employ to mitigate the impact of crises. This study has demonstrated that our approach of computational case analysis can be very successful in providing systematic and explicit guidance for effective crisis mitigation both theoretically and empirically.

A field study of 179 employees in an investment technology firm explores the relationship between identity comprehension and individual work outcomes. Identity comprehension is defined as the degree to which the relative importance of one’s identities is recognized by important others. Results show that individuals with higher levels of identity comprehension in work teams are likely to have higher levels of creativity and satisfaction and lower levels of absenteeism.

Organizations are occasionally faced with technologically based and accident triggered crises that can be extremely costly. An example is Bhopal, a major chemical spill. In the aftermath of such a disaster, organizations, both the one that suffered and others in the same or similar industries, often reexamine how they are structured. The questions arise: how should organizations be designed if they are to perform well in such crises, and would organizations benefit from structural changes during crises? We address these questions using a combination of computational analysis and archival data on 69 real organizations faced with crises. For each crisis incident, we contrast the organization’s predicted and actual performance in a crisis situation. We find a high level of validation for the computational model. Using the validated computational model we then go on to address the hypothetical question: what is likely to have happened if the real organization had responded differently to the crisis. The findings show that there is no guarantee that a well performing organization in a general situation will continue to do so during a crisis situation. In addition, how to design or restructure an organization to mitigate the impact of crises will depend on the various design factors the organization employs. This work further demonstrates that often, the lessons learned by organizations when responding to crisis situations may be exactly the wrong lessons.

In recent years there has been a growing interest in the impact of co-operative union±management relations on ®rm performance and organizational outcomes such as employee turnover and absenteeism. This paper seeks to identify the factors that affect the development of a co-operative industrial relations climate and analyses the effects of that climate on organizational and union allegiance and on employee attendance behaviour. The data are drawn from a study of a large automotive manufacturer in Australia. The results indicate that a positive union±management relationship is associated with higher levels of work attendance. Moreover, this outcome is consistent with the presence of strong and effective unionism at the workplace. 1.

*An earlier version was awarded best paper at the second Industrial