CRISIS MANAGEMENT

Crisis management is the process by which a person and/or an organization deals with an unpredictable event that threatens to harm an individual, an organization, its stakeholders, or the general public. There are three elements involved, namely, (a) a threat (b) the element of surprise, and (c) a short decision making time. Crisis management involves dealing with threats after they have occurred. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and deal with a serious situation, especially from the moment it first occurs to the point that recovery starts.

It is said that there are seven types of crises

1. Natural disaster
2. Technological crises
3. Confrontation
4. Malevolence
5. Crises of skewed management value
6. Crises of deception
7. Crises of management misconduct

Natural crises

Natural crises, typically natural disasters considered as 'Acts of God' are such environmental happenings such as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides, tidal waves, storms, and droughts that threaten life, property, and the environment itself.

Technological crises

Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Some technological crises occur when human error causes disruptions (Human breakdowns). People tend to assign blame for a technological disaster because technology is subject to human manipulation whereas they do not hold anyone responsible for natural disaster. When an accident creates significant environmental damage, the crisis is categorized as mega-damage. Samples include software failures, industrial accidents, and oil spills.

Confrontation crises

Confrontation crisis occur when discontented individuals and/or groups fight businesses, government, and various interest groups to win acceptance of their demands and expectations. The common type of confrontation crises are boycotts, agitations, picketing, sit-ins, ultimatums to those in authority, blockade or occupation of buildings, and resisting or disobeying law & order.

Crises of malevolence

An organization faces a crisis of malevolence when opponents/ competitors or miscreant individuals with in the organization use criminal means or other extreme tactics for the purpose of expressing hostility or anger toward, or seeking gain from, a company, country, or economic system, perhaps with the aim of destabilizing or destroying it. This is a sort of interpersonal competition for self gains. Sample crises include product tampering, kidnapping, malicious rumors, terrorism, and espionage.

Crises of organizational misdeeds

Crises occur when management takes actions it knows will harm or place stakeholders at risk for harm without adequate precautions. They include crises of organizational misdeeds, crises of skewed management values, crises of deception, and crises of management misconduct.

Workplace violence

Rumors

False information about an organization or its products creates crises hurting the organization’s reputation. Sample is linking the organization to radical groups or stories that their products are contaminated, etc.

Management of Crisis

In any crisis, whether personal or organizational, there are principles that a Leader should place into action. When dealing with a crisis worry can be a major mental block at the first instance. Understanding the crisis is the major task involved in the crisis management.. A Leader should maintain calm and show positive approach to the situation. Assess the depth of the crisis and then prepare mentally to accept that. Once the problem is understood we have to fragment the problem into various tasks.

A serious challenge looks overwhelming, but seen by step by step approach a solution comes at every step-solving a problem part by part like a crossword puzzle. An action plan has to be prepared once we get an understanding on the crisis. It includes the in-depth study of the crisis, steps to make the situation better, the quickest time-frame to solve the problem, search for getting help, implementation of the action plan at very short intervals, review through measurement of the effectiveness of the steps taken and implement corrective action, in case needed.. In making an action plans a focus on the past experience, if any, helps in solving.

In dealing with crisis a Leader will be exposed to a sense of isolation as far as the responsibility sharing is concerned. Leaders take responsibility themselves by virtue of their nature. It is always advantageous to take support from others not only for making quick decisions but also to ease out emotional stress. It is also advisable to keep a trustworthy team who can take decisions.

I have placed a collection from various sources and from my own experiences as the Head of an Institution. I would welcome my network friends to put their views.