Sober reading for any organization experiencing trauma or long-term stress:
Even where there are strong beliefs in the “democratic way of life”, there is always a tendency in institutions, and in the larger containing society, to regress to simple, hierarchical models of authority as a way of preserving a sense of security and stability. This is not just a phenomenon of leadership – in times of great uncertainty, everyone in the institution colludes to collectively bring into being authoritarian organizations as a time-honored method for providing at least the illusion of greater certainty and therefore a diminution of anxiety.
But, when a state of crisis is prolonged, repetitive, or chronic there is a price to be paid. The tendency to develop increasingly authoritarian structures over time is particularly troublesome for complex organizations. Chronic crisis results in organizational climates that promote authoritarian behavior and this behavior serves to reinforce existing hierarchies and create new ones. Communication exchanges change and become more formalized and top-down. Command hierarchies becomes less flexible, power becomes more centralized, people below stop communicating openly and as a result, important information is lost from the system.
The centralization of authority means that those at the top of the hierarchy will be far more influential than those at the bottom, and yet better solutions to the existing problems may actually lie in the hands of those with less authority. Authoritarian leadership is likely to encourage the same leadership style throughout the organization. The loss of democratic processes results in oversimplified decision-making and the loss of empowerment at each organizational level reduces morale and increases interpersonal conflict.
From Trauma-organized systems and parallel process. N. Tehrani (Ed.), Managing Trauma in the Workplace (pp. 139-153). London: Routledge.