Crisis Management

A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called as organization crisis. In other

words, crisis is defined as any emergency situation which disturbs the employees as well as leads to instability in the organization.

Crisis

Why do crisis arise?

Technological failure.

Disagreement and violence among employees.

Neglecting minor issues in the beginning.

Inappropriate behaviors such as accepting bribes, frauds, speculation.

Financial inability or bankruptcy.

Crisis ManagementThe art of dealing with sudden and unexpected events which disturbs the employees, organization as well as external clients refers to Crisis Management.

Types of Crisis

Natural crisisTechnological

crisisConfrontation

crisis

Crisis of Malevolence

Crisis of Organizational

Misdeeds

Types of Crisis

Crisis Due to Rumors

BankruptcyCrisis Due to

Natural Factors

Sudden CrisisSmoldering

Crisis

Need for Crisis management

To face unexpected and adverse situations in the organization efficiently.

To adjust well in the sudden changes in the organization.

Help managers devise strategies to come out of uncertain conditions and also decide on the future course of action.

Features of crisis management

Analyze and understand events which might lead to crisis and uncertainty in the organization.

Respond effectively to changes in the organization culture.

Effective monitoring systems and coordination amongst the departments to overcome emergency situations.

Effective communication.

Avoiding rumors.

Prompt response and adaptability to changes.

Crisis Management: Four Stages

Prodromal Crisis StageWarning—precursor

Symptom —precrisis

Acute Crisis StagePoint of no return

Crisis has occurred

Crisis Resolution StagePatient is well/

whole again

Chronic Crisis StageLingering on—perhaps

indefinitely; period of self-

doubt; self-analysis

Crisis Management Model

Diagnosis of crisis

Planning

Adjusting to changes

Crisis Management PlanCrisis Management Plan refers to a detailed plan which describes the various actions which need to be taken during critical situations or crisis.

Importance of crisis management plan

How to make Crisis Management Plan

Identify factors that may lead to

crisis

Discuss issues and areas of

concern amongst yourselves on an open forum for

everyone to share their opinion.

Ensuring accuracy of information

Role of Leaders/Manager in Crisis Management

Role of Leader One should lead from the front.

Managers should have full control on the employees.

One should be alert at the workplace.

Leaders must try their level best to prevent crisis.

Ask the employees not to panic at the time of crisis.

The leaders should interact with the employees more often.

Planning is essential to avoid emergency situations.

Role of Leader Identify the important processes and systems which should keep functioning.

Don’t let negativity creep in the organization.

Never lose hope.

Leaders should strive hard to come out of tough times as soon as possible.

Don’t avoid stakeholders, external parties and most importantly media.

Successful Crisis Management Stories

Tylenol (Johnson and Johnson)

Pepsi

Unsuccessful Crisis Management Story

Bhopal Gas Tragedy

Exxon