You are on page 1of 2

Natural disasters: The devastating earthquake and tsunami that hit Japan on March 11, 2011 as well as the

recent lrene hurricane that hit the U.S. coast. Technical disasters: In November 2009, the cell phone company Nokia recalled around 14 million mobile phone chargers from around the world after these chargers proved to be an electrical shock hazard due to faulty/loose covers. Crisis of confrontation: In 2008, Jet Airways in India fired approximately 1,900 of its employees as a cost- cutting measure, but hired them back after widespread media attention and general public outcry. Acts of malevolence: The terrorist attack in Mumbai on November 26, 2008, is an example of this. Acts of deception: The scams regarding the organization of the 2010 Commonwealth Games in Delhi are acts of deception. Management misconduct: Satyam's chairman, Ramalinga Raju, resigned from Satyam's board of directors in 2009 after admitting to cheating six million shareholders. He was imprisoned in Hyderabad on charges including embezzlement, cheating, and insider trading. Managers tend to overlook the simmering events that lead to a sudden crisis. However, a shrewd crisis management team is constantly vigilant for issues that can snowball into a major crisis. Some issues that can turn into a major crisis if left unchecked include: Crime: A petty crime committed by an employee or one that occurs in the workplace should not be ignored. It is often the symptom of a simmering crisis. Industrial unrest: Failure of the management to resolve a long-standing issue might result in it turning into a major crisis

Mismanagement: Acts such as misappropriation of funds should be investigated, as these depict problematic issues in the functioning of an organization. Consumer issues: Unhappy, irritated, and complaining customers should not be ignored as collectively they can pose a danger to a firm. Whistle-blowing: Whistle-blowing and whistle-blowers should not be suppressed. These are but symptoms of the larger ills that plague organizations.

Legal actions: Legal suits initiated by the company or vice versa need a deeper investigation of the real issues so that the crisis can be nipped in the bud. Discrimination: Differentiating on the basis of gender and nationality indicates a deeper malaise within the system and has the potential to transform into a bigger issue.

You might also like