An Insight of Rui Xiang Canvas HR Crisis (Case Study)


  • Junhong Gao Estonian Business School
  • Ruth Alas Estonian Business School



human resources, crisis, authoritarian leadership, crisis strategy, internal communication


Research was supported by ETF grant 7537

Human resources are one of the most important competitive advantages of Chinese enterprises. China has over one billion labor force. The large scale of labor force provides Chinese organizations sufficient human resources. However, HR crisis was found as one of the three main crisis types in Chinese organizations. The causes of human resources crisis vary. In this paper, the authors aim to give a deeper analysis of one typical human resources crisis case occurred in China, so as to gather empirical based knowledge, to complete crisis theory, to provide suggestions and reference to organization management practice.

The theoretical part reviewed human resources and crisis management theories. The crisis case demonstrated in this paper was collected in Chinese language. The analysis focused on three key factors of crisis management process, strategy, leadership, and communication. Finally, the authors concluded that the crisis happened due to the poor communication and crisis strategy which resulted from an extreme authoritarian leadership in the organization. To change the management style and improve communications are the suggestions to the enterprise managers.

This case is a good example of the downsides of authoritarian leadership going to an extreme ending. The case can be used as a teaching material for management and business students.


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