Human Resources Crisis Management and Contingency Management HL ONLY.
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Transcript of Human Resources Crisis Management and Contingency Management HL ONLY.
Human Resources Crisis Management
and Contingency Management
HL ONLY
Learning Objectives To explain the difference between crisis
management and contingency planning Evaluate the costs and benefits of contingency
planning Discuss how far it is possible to plan for a crisis
What disasters could your house face?
What disasters could your business face?
Whole industry crisis
Whole country crisis
Individual company crisis
Write down some examples of each one
Crisis managementRefers to the management of operations before, during and after the event of a crisis
Contingency planning Is about being proactive, development plans before an event happens. A ´what if´ approach
What can a business do to avoid the following ‘disasters’?
• Fire in building• Power supply breakdown• Virus infection• Theft of equipment• Theft of customer data
Think about working in
the headquarters
of a bank
What implications did this have for Pemex
What other types of crisis might a business face?
Hostile takeover
Faulty/dangerous products
Environmental disaster
Major customer withdrawingorders
Physical destruction e.g. bombing / earthquakes / Physical destruction e.g. bombing / earthquakes / fires
Strikes by workforce
What areas of a business
could a crisis affect?
Marketing: public image under threat – PRAd campaignsPromotions to increase sales
Personnel: Leadership style …crisis usually requires direct authoritarian leadership;
internal and external communication that is rapid and direct; external communication that is informative and truthful.
Training
Recruitment
Operations: particularly if JITStorage/warehousingMachinery
Finance: ad campaigns; environment clean up; compensation
Can crisis be avoided?• Companies can have contingency plans
established in order for staff to know how to deal with a crisis when it occurs
Contingency Plan content• A list of the most critical business functions;• A list of the facilities, hardware, software, data, personnel and
other equipment necessary to support those functions• A back-up procedure• A method for getting in touch with all key personnel• A recovery procedure • Education and training of personnel involved in implementing the
plan• Regular drills to test the effectiveness of the plan
Contingency Plans
Value• Sense of security• Limits damage• Speeds up recovery
process• Informs staff training• Preventative
measures can be part of CSR
Limitations• Costly and time
consuming– Including opportunity
cost
• Needs reviewing• Lack of predictability
Key steps in contingency planning
1. Identify the potential disasters – some could be the same for all businesses, some maybe specific to the industry
2. Assess the likelihood of these occurring
3. Minimise potential impact4. Plan for continued operations
Contingency Plan
• Cadbury’s withdraws products made in China
• Cadbury’s is fined
In each case:
• Identify the cause of each event• Identify the potential threat
• What actions could have been taken to prevent these events?• Rank each event on a scale of 1 – 10 in terms of seriousness to the future
success of Cadbury’s• Justify your answer
Strategy tactics – what would the
school do if a bomb went off if you were in the
centre oftown during a college trip?
Strategy tactics You are head of ICT at
a bank and a ‘tape’ of all
customerData has been lost in
transit!
Strategy tactics What are the
implications to Pemex if the main FUEL lines break?How would you have reacted?
Strategy tactics – what if Richard Branson
died in an accident?
How should the Virgin conglomerate react?