In the context of the stages of organizational decline, which of the following is a difference between the blinded stage and the crisis stage?
A) The blinded stage occurs because key managers fail to recognize the internal or external changes that will harm their organizations, whereas the crisis stage occurs because companies lack the resources to fully change how they run their businesses.
B) The blinded stage is the first stage of organizational decline, whereas the crisis stage is the fifth stage of organizational decline.
C) In the blinded stage, the company is dissolved through bankruptcy proceedings, whereas in the crisis stage, management recognizes the need to change but still takes no steps.
D) In the blinded stage, management announces belt-tightening plans designed to cut costs, increase efficiency, and restore profits, whereas in the crisis stage, managers wait to see if organizational performance problems correct themselves.

Question

Quizplus · Accepted Answer

The blinded stage occurs when managers fail to recognize the changes that harm their organization, whereas in the crisis stage, companies realize the need for change but lack the resources to implement it effectively. Therefore, the difference between these stages is that in the blinded stage, managers fail to recognize the problem, while in the crisis stage, they are aware of it but cannot effectively address it. Option B is incorrect because it is not accurate - the crisis stage is typically the final stage of organizational decline. Option C is incorrect because the dissolution of the company is typically the final stage in organizational decline, not the blinded or crisis stages. Option D is incorrect because while cost-cutting measures may be a form of crisis management, it is not unique to the blinded stage.

In the Context of the Stages of Organizational Decline, Which