I just read an article from harvard business paperback. It describes about the psychology of someone or organization when facing against a downturn which let to her/its final fate. There are four stages :
It start with a denial of the fact that a potential problem is arising, they tend to deny or hid the fact. Let only a handful peoples know. Recovery is possible if they openly accept the fact and move for a solution together.
When they can no longer deny or hide it, they start to point the finger at others and blaming. Recovery become a bit harder as there is an atmosphere of distrust (because of blaming) and teamwork fall.
Next peoples start to avoid, in this stage “everyone for himself”. Only thinking to secure their own interest. Recovery is hard as virtually there is almost no teamwork and communication, it needs a promising hope and strong leadership to restore.
The final stage is to stay passive and do nothing. Morale is very low on this stage as peoples already thinking they have no hope.