Abstract:
Of all stakeholders challenged by organisational crisis, employees are arguably the most
affected. While scholars have extensively investigated external stakeholder influence on crisis,
the internal stakeholder’s perspective is lacking. Employees as internal stakeholders, form
perceptions about how they are led during crisis. Perceptions either support or disrupt CEO
ability to effectively resolve crisis.
Using qualitative methodology, 23 semi-structured interviews were conducted with line
managers to CEOs to understand how employees perceived CEOs strategic leadership during
two crisis events of the COVID-19 pandemic, and the political unrest, in Eswatini. An additional
interest of the study was to explore how employee perceptions during crisis can be positively
shaped by CEOs to effectively resolve crisis.
The research findings first illustrate that CEOs play a critical role in shaping employee
perceptions during crisis. Several factors: leader behaviour and trait, knowledge about CEOs
(experience and biases) and the context and style of leadership, shape how employees
perceive CEOs during a crisis. Second, the findings show that employee perceptions influence
the support CEOs garner. Third, CEOs who apply leadership traits perceived positively by
employees during crisis, manage and resolve crisis effectively. Fourth, leadership traits and
behaviours which CEOs use to drive effective crisis outcomes include: care and empathy,
communication, decisiveness, agility, positive attitude, a calm demeanour, vulnerability,
honesty, use of incentives, listening, and the use of clear policy frameworks.
The study contributes to the theories and frameworks of impression management, attribution
theory and reintegration and employee trust repair during crisis. Importantly, it expands the
strategic leadership role of CEOs during crisis, to embody crisis management through learned
behaviours and understanding of what employees require from CEOs. By reviewing employee
perceptions during crisis, the researcher suggests ways in which CEOs can strategically lead
to shape impressions and perceptions of employees to drive positive and collective crisis
resolution. This knowledge will assist leaders to manage their employees during crisis.
