Decision-Making in Crisis Situations: How Do Leaders Manage Scarce Resources?

Abstract

Crises pose significant challenges for leaders, particularly in the management of scarce resources. The objective of this study was to explore the decision-making processes of leaders across various sectors during crisis situations, focusing on how they navigate the complexities of strategic decision-making, leadership challenges, and organizational dynamics. This qualitative study employed semi-structured interviews with 20 leaders experienced in crisis management from sectors including healthcare, emergency services, business, and non-profit organizations. Data collection aimed at achieving theoretical saturation was guided by a set of pre-determined, open-ended questions allowing for in-depth exploration of individual experiences and strategies. The interviews were transcribed, coded, and analyzed to identify recurring themes and patterns. Three main themes were identified: Strategic Decision-Making, Leadership Challenges, and Organizational Dynamics. Strategic Decision-Making encompassed risk assessment, resource allocation, long-term planning, stakeholder engagement, and decision-making styles. Leadership Challenges included communication barriers, ethical dilemmas, and stress and pressure management. Organizational Dynamics covered team dynamics, change management, leadership influence, resource management, and policy and governance. Each theme and its categories highlighted specific strategies and challenges faced by leaders in managing scarce resources effectively during crises. The study highlights the critical importance of strategic decision-making, robust communication, ethical leadership, and adaptive organizational policies in crisis management. Leaders who effectively navigate these aspects are better equipped to handle crises, suggesting a need for targeted training and policy development to enhance crisis preparedness and leadership competencies.