A DETAILED STUDY ON CRISIS MANAGEMENT

CRISIS MANAGEMENT
PROJECT REPORT
Project report submitted in partial fulfillment of the requirement of
South Asia University for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

2011
Submitted By

Sunil B
To

Affiliated to

ACKNOWLEDGEMENT
First and foremost, I thank the Almighty God,my parents,teachers and friends.
I express my sincere thanks to the concerned for granting permission to conduct my project
work CRISES MANAGEMENT in his esteemed concern and for helping and providing
various information and data.

STUDENTS DECLARATION
I, Mr.Sunil B hereby declare that the Project Work titled A Study on CRISES
MANAGEMENT is the original work of mine and submitted to the South Asian
University in partial fulfillment of requirements for the award of Master of Business
Administration.

Date

Signature of the student

EXECUTIVE SUMMARY
This study aims at the studying in detailed THE CRISIS
MANAGEMENT. It also highlights the various types of crisis
management and different strategies of crisis management and
goes depth to the crisis management.
Accordingly the research design was prepared and adequate
literature survey was made. Secondary data was collected through the
internet and other sources. After the collection of secondary data analysis
was made to analysis the data.

CHAPTERS

TITLE

PAGE

ACKNOWLEDGEMENTS
EXECUTIVE SUMMARY
CHAPTER 1

INTRODUCTION TO CRISIS

MANAGEMENT
NEED OF STUDY

10

OBJECTIVES OF STUDY

12

PERIOD OF STUDY

14

RESEARCH METHODOLOGY

16

CHAPTER 2

TYPES OF CRISIS MANAGEMENT

18

CHAPTER 3

CRISIS LEADERSHIP

22

CHAPTER 4

CASE STUDIES

28

CHAPTER 5

CONCLUSION

59

BIBLOGRAPHY

61

CHAPTER-1
INTRODUCTION TO CRISIS MANAGEMENT
1.1

NEED OF THE STUDY

1.2

OBJECTIVES OF THE STUDY

1.3

PERIOD OF THE STUDY

1.4

RESEARCH METHODOLOGY

INTRODUCTION TO CRISIS MANAGEMENT

What Is a Crisis?
In discussing the development of a Crisis Management Plan, one should start
by clarifying what a crisis is. For the purpose of this book, a "crisis" is an
unstable time for an organization, with a distinct possibility for an undesirable
outcome. This undesirable outcome could interfere with the normal
operations of the organization, it could damage the bottom line, it could
jeopardize the positive public image, or it could cause close media or
government scrutiny. Obviously, the full gamut of disasters comes to mind;
that is, fires, floods, tornadoes, earthquakes, bombings, etc. In addition,
examples of a crisis can include when an organization experiences a product
failure, a product safety issue, product tampering, a product market-shift, an
incident that results in a poor image or negative reputation, an international
incident that negatively affects the organization, and a financial problem
especially a fuzzy accounting problem. (Author Note: The "fuzzy accounting"
problem is difficult to prepare for because you will be working with the culprit
when developing the Crisis Management Team's plan.)

Keep in mind that crisis does not only mean danger. It also means an
opportunity.
Crisis management is the process by which an organization deals with a
major unpredictable event that threatens to harm the organization, its
stakeholders, or the general public. Three elements are common to most
definitions of crisis: (a) a threat to the organization, (b) the element of
surprise, and (c) a short decision time. Venette] argues that "crisis is a process
of transformation where the old system can no longer be maintained."
Therefore the fourth defining quality is the need for change. If change is not
needed, the event could more accurately be described as a failure or incident.
In contrast to risk management, which involves assessing potential threats and
finding the best ways to avoid those threats,
crisis management involves
6

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 cope with a serious situation, especially from
the moment it first occurs to the point that recovery procedures start.

Crisis management consists of:

Methods used to respond to both the reality and perception of crises.

Establishing metrics to define what scenarios constitute a crisis and
should consequently trigger the necessary response mechanisms.
Communication that occurs within the response phase of emergency
management scenarios.

Crisis management methods of a business or an organization are called Crisis

Management Plan.
Crisis management is occasionally referred to as incident management,
although several industry specialists such as Peter Power argue that the term
crisis management is more accurate.
The credibility and reputation of organizations is heavily influenced by the
perception of their responses during crisis situations. The organization and
communication involved in responding to a crisis in a timely fashion makes
for a challenge in businesses. There must be open and consistent
communication throughout the hierarchy to contribute to a successful crisis
communication process.
The related terms emergency management and business continuity
management focus respectively on the prompt but short lived "first aid" type
of response (e.g. putting the fire out) and the longer term recovery and
restoration phases (e.g. moving operations to another site). Crisis is also a
facet of risk management, although it is probably untrue to say that Crisis
Management represents a failure of Risk Management since it will never be
possible to totally mitigate the chances of catastrophes occurring.
7

NEED OF THE STUDY

The crisis is exploding at a very fast pace
In this connection the study of crisis management and its operation
according to different strategies and crisis management leadership is
a useful study.

OBJECTIVES OF THE STUDY

The objectives of the study are as follows:

To find out the work of crisis management

To understand the crisis management
To analysis the various types of crisis management
To study the various types of crisis leadership

RESEARCH METHODOLOGY

Research methodology for this project is a very important aspect.

Secondary data has been collected and the data has been compiled for any
research to understand the work of crisis management.
8

CHAPTER 2

2- TYPES OF CRISIS MANAGEMENT

During the crisis management process, it is important to identify types of
crises in that different crises necessitate the use of different crisis management
strategies.Potential crises are enormous, but crises can be clustered.
Lerbinger categorized seven types of crises
1.
2.
3.
4.
5.
6.
7.

Natural disaster
Technological crises
Confrontation
Malevolence
Crisis of skewed management value
Crisis of deception
Crisis of management misconduct

Natural crises
Natural crises, typically natural disasters considered as'acts of God,' are such
environmental phenomena as earthquakes, volcanic eruptions, tornadoes and
hurricanes, floods, landslides, tidal waves, storms, and droughts that threaten
life, property, and the environment itself.[4][5]
Example: 2004 Indian Ocean earthquake (Tsunami)
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
9

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 megadamage. Samples include software failures,
industrial accidents, and oil spills.
Examples: Chernobyl disaster, Exxon Valdez oil spill
Confrontation crises
Confrontation crises 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 is
boycotts, and other types are picketing, sit-ins, ultimatums to those in
authority, blockade or occupation of buildings, and resisting or disobeying
police.
Example: Rainbow/PUSHs (People United to Serve Humanity)
boycott of Nike
Crises of malevolence
An organization faces a crisis of malevolence when opponents or miscreant
individuals 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. Sample crises include product tampering, kidnapping, malicious
rumors, terrorism, and espionage.
Example: 1982 Chicago Tylenol murders
Crises of organizational misdeeds
Crises occur when management takes actions it knows will harm or place
stakeholders at risk for harm without adequate precautions. Lerbinger
specified three different types of crises of organizational misdeeds: crises of
1
0

skewed management values, crises of deception, and crises of management

misconduct.
Crises of skewed management values
Crises of skewed management values are caused when managers favor shortterm economic gain and neglect broader social values and stakeholders other
than investors. This state of lopsided values is rooted in the classical business
creed that focuses on the interests of stockholders and tends to view the
interests of its other stakeholders such as customers, employees, and the
community.
Example: Sears sacrifices customer trust
Crises of deception
Crises of deception occur when management conceals or misrepresents
information about itself and its products in its dealing with consumers and
others.
Example: Dow Cornings silicone-gel breast implant
Crises of management misconduct
Some crises are caused not only by skewed values and deception but
deliberate amorality and illegality.
Example: Martha Stewart fraud case
Workplace violence
Crises occur when an employee or former employee commits violence against
other employees on organizational grounds.
Example: DuPonts Lycra

1
1

Rumors
False information about an organization or its products creates crises hurting
the organizations reputation. Sample is linking the organization to radical
groups or stories that their products are contaminated.
Example: Procter & Gamble's Logo controversy

1
2

CHAPTER 3
CRISIS LEADERSHIP

Crisis Leadership
Erika Hayes James, an organizational psychologist at the University of
Virginias Darden Graduate School of Business, identifies two primary types
of organizational crisis. James defines organizational crisis as any
emotionally charged situation that, once it becomes public, invites negative
stakeholder reaction and thereby has the potential to threaten the financial
well-being, reputation, or survival of the firm or some portion thereof.
1. Sudden crisis
2. Smoldering crises
Sudden crises
Sudden crises are circumstances that occur without warning and beyond an
institutions control. Consequently, sudden crises are most often situations for
which the institution and its leadership are not blamed.
Smoldering crises
Smoldering crises differ from sudden crises in that they begin as minor
internal issues that, due to managers negligence, develop to crisis status.
These are situations when leaders are blamed for the crisis and its subsequent
effect on the institution in question.
James categorizes five phases of crisis that require specific crisis leadership
competencies. Each phase contains an obstacle that a leader must overcome
to improve the structure and operations of an organization. Jamess case study
on crisis in the financial services sector,
for example, explores why crisis
1
3

events erode public trust in leadership. James's research demonstrates how

leadership competencies of integrity, positive intent, capability, mutual
respect, and transparency impact the trust-building process.
1.
2.
3.
4.
5.

Signal detection
Preparation and prevention
Containment and damage control
Business recovery
Learning

Signal detection
Signal detection is the stage in a crisis in which leaders should, but do not
always, sense early warning signals (red flags) that suggest the possibility of a
crisis. The detection stages of a crisis include: Sense-making: represents an
attempt to create order and make sense, retrospectively, of what occurs.
Perspective-taking: the ability to consider another person's or group's point of
view.
Preparation and prevention
It is during this stage that crisis handlers begin preparing for or averting the
crisis that had been foreshadowed in the signal detection stage. Organizations
such as the Red Cross's primary mission is to prepare for and prevent the
escalation of crisis events. Walmart has been described as an emergency relief
standard bearer after having witnessed the incredibly speedy and wellcoordinated effort to get supplies to the Gulf Coast of the United States in
anticipation of Hurricane Katrina.
Containment and damage control
Usually the most vivid stage, the goal of crisis containment and damage
control is to limit the reputational, financial, safety, and other threats to firm
survival. Crisis handlers work diligently during this stage to bring the crisis to
an end as quickly as possible to limit the negative publicity to the
organization, and move into the business recovery phase.
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4

Business recovery
When crisis hits, organizations must be able to carry on with their business in
the midst of the crisis while simultaneously planning for how they will
recover from the damage the crisis caused. Crisis handlers not only must
engage in continuity planning (determining the people, financial, and
technology resources needed to keep the organization running), but will also
actively pursue organizational resilience.
Learning
In the wake of a crisis, organizational decision makers adopt a learning
orientation and use prior experience to develop new routines and behaviors
that ultimately change the way the organization operates. The best leaders
recognize this and are purposeful and skillful in finding the learning
opportunities inherent in every crisis situation.

Crisis management - a leadership challenge

1
5

Crisis management of late has become an important component of managing the

business. In the current day situation no business is immune to crisis. Crisis may hit an
organization in the shape of terrorist attack, industrial accidents, product recall or
natural calamity. Crisis management is closely linked to public relations where
companys image and pride are at stake.
Leadership framework for crisis management
A leader must institutionalize the process of crisis management to anticipate, prepare
and mitigate an

impending crisis. To ensure an effective crisis management mechanism leadership

support and involvement is absolutely essential.

First step in doing so starts with leader setting the tone by clarifying the goals and
purpose of crisis management plan, which essentially are based on the philosophy and
values of the organization. Leadership should help his top management team draft the
crisis management policy, which provides definitions for generally used terms and
identifies different levels of crisis in the organization. This demonstrates leaderships
commitment and promotes an enabling environment.
Second step in the process is to identify a core crisis management team, for identifying
all possible crises that the company or any of its units may face and develop, plans,
roles and responsibility for preparing and mitigating
each of the crises. The role of
1
6

leadership at this stage is empowering the core team for studying and analyzing crisis
by various attributes such as industry, location, process, marketplace pressures etc.
Next step for leadership is to ensure effective and elaborate communication strategy
and infrastructure even in the case of crisis / emergency / disaster, so that timely and
consistent communication with internal and external stakeholders / partners is
maintained at all times.
Establishing partnerships with external agencies is one of the critical leadership roles so
that relevant knowledge and physical resources are available to the organization in
times of crisis.
Also the leaders at appropriate levels should ensure that training pertaining to crisis
management is imparted to the people and organizational preparedness for facing the
crisis is checked time to time through properly designed mock drills.
Crisis resolution - the ultimate test
This generally is not sufficient, as usually crises are characterized by that dreaded
element called surprise, so a strong emphasis on crisis resolution is part of crisis
management. While no plan may manage a crisis but a practical plan and general
preparedness may go a long way in resolving any crisis that may arise.
Meticulously designed crisis management plans might have been crafted and laborious
drills might have been conducted to ascertain high levels of general preparedness, but
that one critical decision which defines the organizational response and gives crisis
resolution a specific direction and that affects the outcome and perception of
stakeholders and general public in the big way depends on the values instilled by the
leader over the years.
It is organizational values and leaders belief that determine the organizational response
to crisis on hand. Actions emanating from common understanding of organizational
values have everyone in the company wedded to the cause. It is through such response
and follow-up that the company and the leader emerge from the crisis with enhanced
image and reputation.
Classic case cited for organizational response and successful crisis management is how
Johnson & Johnson handled Tylenol crisis in early eighties. James Bruke, the then
1
7

CEO, led his team based on the direction provided by the J&J credo which places the
companys responsibility to customers above that of towards other stakeholders such as
employees and shareholders.
Through all the preparedness leaders clarify "how and what to do". But when
confronted with crisis, leadership is about how to be rather than how and what to
do.
The challenge of a crisis is an ultimate test of leaders character.
A trigger for change
Anticipating crisis is a matter of strategic planning and risk management, but each crisis
that manifests itself, must be dealt with adeptly by leaders, who also must consolidate
the lessons learnt and communicate the same to the people as organizational learning
and thus drive sense for initiating change in the organization.

The figure above shows how the cycle of identifying crises, managing them, and more
importantly extracting learning from the act of managing the crisis and communicating
the learning as a trgger for initiating a change programme to overcome the vulnerability
of the organization can take the organization to higher orbit of maturity and
performance.
1
8

CHAPTER 4
CASE STUDIES
EXAMPLES OF SUCESSFUL CRISIS MANAGEMENT
Tylenol (Johnson and Johnson)
In the fall of 1982, a murderer added 65 milligrams of cyanide to some
Tylenol capsules on store shelves, killing seven people, including three in one
family. Johnson & Johnson recalled and destroyed 31 million capsules at a
cost of $100 million. The affable CEO, James Burke, appeared in television
ads and at news conferences informing consumers of the company's actions.
Tamper-resistant packaging was rapidly introduced, and Tylenol sales swiftly
bounced back to near pre-crisis levels.
Johnson & Johnson was again struck by a similar crisis in 1986 when a New
York woman died on Feb. 8 after taking cyanide-laced Tylenol capsules.
Johnson & Johnson was ready. Responding swiftly and smoothly to the new
crisis, it immediately and indefinitely canceled all television commercials for
Tylenol, established a toll-free telephone hot-line to answer consumer
questions and offered refunds or exchanges to customers who had purchased
Tylenol capsules. At week's end, when another bottle of tainted Tylenol was
discovered in a store, it took only a matter of minutes for the manufacturer to
issue a nationwide warning that people should not use the medication in its
capsule form.

Odwalla Foods
When Odwalla's apple juice was thought to be the cause of an outbreak of E.
coli infection, the company lost a third of its market value. In October 1996,
an outbreak of E. coli bacteria in Washington state, California, Colorado and
1
9

British Columbia was traced to unpasteurized apple juice manufactured by

natural juice maker Odwalla Inc. Forty-nine cases were reported, including
the death of a small child. Within 24 hours, Odwalla conferred with the FDA
and Washington state health officials; established a schedule of daily press
briefings; sent out press releases which announced the recall; expressed
remorse, concern and apology, and took responsibility for anyone harmed by
their products; detailed symptoms of E. coli poisoning; and explained what
consumers should do with any affected products. Odwalla then developed through the help of consultants - effective thermal processes that would not
harm the products' flavors when production resumed. All of these steps were
communicated through close relations with the media and through full-page
newspaper ads.

Mattel
Mattel Inc., the toy maker, has been plagued with more than 28 product
recalls and in Summer of 2007, amongst problems with exports from China,
faced two product recall in two weeks. The company "did everything it could
to get its message out, earning high marks from consumers and retailers.
Though upset by the situation, they were appreciative of the company's
response. At Mattel, just after the 7 a.m. recall announcement by federal
officials, a public relations staff of 16 was set to call reporters at the 40
biggest media outlets. They told each to check their e-mail for a news release
outlining the recalls, invited them to a teleconference call with executives and
scheduled TV appearances or phone conversations with Mattel's chief
executive. The Mattel CEO Robert Eckert did 14 TV interviews on a Tuesday
in August and about 20 calls with individual reporters. By the week's end,
Mattel had responded to more than 300 media inquiries in the U.S. alone.

Pepsi
The Pepsi Corporation faced a crisis in 1993 which started with claims of
syringes being found in cans of diet Pepsi. Pepsi urged stores not to remove
the product from shelves while it had the cans and the situation investigated.
This led to an arrest, which Pepsi made public and then followed with their
first video news release, showing the production process to demonstrate that
such tampering was impossible within2their factories. A second video news
0

release displayed the man arrested. A third video news release showed
surveillance from a convenience store where a woman was caught replicating
the tampering incident. The company simultaneously publicly worked with
the FDA during the crisis. The corporation was completely open with the
public throughout, and every employee of Pepsi was kept aware of the details.
This made public communications effective throughout the crisis. After the
crisis had been resolved, the corporation ran a series of special campaigns
designed to thank the public for standing by the corporation, along with
coupons for further compensation. This case served as a design for how to
handle other crisis situations.

EXAMPLES OF UNSUCESSFUL CRISISMANAGEMENT

Bhopal
The Bhopal disaster in which poor communication before, during, and after
the crisis cost thousands of lives, illustrates the importance of incorporating
cross-cultural communication in crisis management plans. According to
American Universitys Trade Environmental Database Case Studies (1997),
local residents were not sure how to react to warnings of potential threats
from the Union Carbide plant. Operating manuals printed only in English is
an extreme example of mismanagement but indicative of systemic barriers to
information diffusion. According to Union Carbides own chronology of the
incident (2006), a day after the crisis Union Carbides upper management
arrived in India but was unable to assist in the relief efforts because they were
placed under house arrest by the Indian government. Symbolic intervention
can be counter productive; a crisis management strategy can help upper
management make more calculated decisions in how they should respond to
disaster scenarios. The Bhopal incident2 illustrates the difficulty in consistently
1

applying management standards to multi-national operations and the blame

shifting that often results from the lack of a clear management plan.

Ford and Firestone Tire and Rubber Company

The Ford-Firestone Tire and Rubber Company dispute transpired in August
2000. In response to claims that their 15-inch Wilderness AT, radial ATX and
ATX II tire treads were separating from the tire coreleading to grisly,
spectacular crashesBridgestone/Firestone recalled 6.5 million tires. These
tires were mostly used on the Ford Explorer, the world's top-selling sport
utility vehicle (SUV).
The two companies committed three major blunders early on, say crisis
experts. First, they blamed consumers for not inflating their tires properly.
Then they blamed each other for faulty tires and faulty vehicle design. Then
they said very little about what they were doing to solve a problem that had
caused more than 100 deathsuntil they got called to Washington to testify
before Congress.

Exxon
On March 24, 1989, a tanker belonging to the Exxon Corporation ran aground
in the Prince William Sound in Alaska. The Exxon Valdez spilled millions of
gallons of crude oil into the waters off Valdez, killing thousands of fish, fowl,
and sea otters. Hundreds of miles of coastline were polluted and salmon
spawning runs disrupted; numerous fishermen, especially Native Americans,
lost their livelihoods. Exxon, by contrast, did not react quickly in terms of
dealing with the media and the public; the CEO, Lawrence Rawl, did not
become an active part of the public relations effort and actually shunned
public involvement; the company had neither a communication plan nor a
communication team in place to handle the eventin fact, the company did
not appoint a public relations manager to its management team until 1993, 4
years after the incident; Exxon established its media center in Valdez, a
location too small and too remote to handle the onslaught of media attention;
and the company acted defensively in its response to its publics, even laying
blame, at times, on other groups such as the Coast Guard. These responses
also happened within days of the incident
2 .
2

Government of India
Ministry of Agriculture
(Department of Agriculture & Cooperation)
Drought Management Division

2
3

Periodicity of occurrence of Drought in various parts of the country.

2
4

1.

Evolving a CMP.
Crisis Management Plan refers to the actionable programme,

which

is pressed into action in the event of a crisis situation to

minimise damages to life, property and environment.

Being prepared to respond to a Crisis situation, helps in reducing

the time taken to mobilize resources for an effective response. It also
helps us to maintain cordial relations among stakeholders, enabling us
to return to normal business operations more quickly.
crisis management is to facilitate over all management
situation
large,

to

minimize

maintaining

adverse

individual

impact
and

on

sovereign

The goal of
of

the

crisis

the community
credibility,

at
and

controlling and strengthening the Governments credibility with the

public.

CMP helps us to develop preventive measures in a time framed

manner and provides for continuous improvement in managing crisis
situation.

CMP ensures

factual and timely communication of what

needs to be done under a specific circumstance to all the stake holders

to minimise the losses.

The crisis recovery model based upon past experiences, on

identifed priorities and trigger-points with appropriate response matrix
viz. contingency
2
5

action

plans

of

different

Management Plan (CMP).

the goals and in

agencies

could

be

known

in

defining the roles and

crisis

Crisis

The identified priorities of CMP is to clarify

responsibilities of various

responders (Ministries / Departments, Organisations

involved

as

management,

and

and

individuals)

putting together a

communication process for quickly notifying the Public in the event of a

crisis.

The Plan outlined in this document

does not replace

the

emergency procedures or contingency action plans already drawn by

different agencies, but has been developed to address crisis that have
the potential for a much greater impact on the Nation.

Despite the

fact that care has been taken to include all aspects

of

crisis

management in the document, it cannot be negated that still there

may be occasions

when

an entirely

new and unforeseen

situation could arise during the same type of crisis.

crisis

Thus, it is

necessary that the team of officers included in the Crisis Management

Group (CMG) evolve a strategy to handle such unforeseen situations
which can later be included as a part of the
CMP as
process.

continuing

This Crisis Management Plan (CMP) is part of overall

spectrum of
Drought Management Plan but is restricted to the
management interventions required during the time of Crisis.
2
6

2
7

2.

Drought a Crisis
Generally, drought is not considered as a crisis of urgent

nature

but

considered

as

a
Drought

management

issue.

is

recurring

natural,

climatic feature which stems from the lack of rainfall over an extended
period of time (i.e. a season

or several

shortage of water resources).

regions

of

the

world.

years

It occurs

Drought

is

resulting in severe

almost

in

all

climatic

normal phenomenon in arid

zone areas, a common phenomenon in semi- arid zone areas and a rare
to very rare phenomenon in dry humid and humid areas.

It is a

natural disaster, which can be anticipated and also expected on

the basis of rainfall pattern, temperature etc. In a large country like
India having many agro- climatic zones, though

drought cannot be

prevented totally, its impact on the community at large can be

minimized. The documents on drought management during droughts of
1987 and 2002 are testimony to this fact.

Drought connotes a situation of water shortage for human,

cattle

and agriculture consumption resulting in economic losses,

primarily

in

agriculture

Meteorological,
Hydrological
Drought,

sector.

Hydrological

and

Agricultural

which connotes

and

Drought

classifed

Agricultural. Unlike

droughts,

specifc

is
the

as
the

Meteorological

rainfall reduction

below

-19%

of normal rainfall, may not necessarily have any serious impact if

the

departure

from normal is not significant and the rainfall is

sufficient enough to sustain the soil

2 moisture.
8

In India, drought essentially occurs due to failure of south-west

monsoon (June September). Areas affected by drought needs to
wait till

the

next monsoon, as more than 73% of annual rainfall in the country is

received during the SW Monsoon season.
The available data on rainfall indicate on drought perspective
that
16% of the Countrys total area is drought prone and annually
about
50 million people in the country are exposed to the crisis of
drought;
A total of 68% of sown area is subject to drought in varying
degrees;
35% of area receives rainfall between 750-mm - 1125-mm
and is
drought prone;
Most of drought prone areas lie in the
arid(37%) and sub-humid(21%) areas

arid (19.6%), semiof the

country that

occupy 77.6% of its total land area of 329 million hectares.

Annual Average Rainfall is 1160 mm in India. However,
85% is concentrated in 100-120 days (SW Monsoon)
33%of area receives less than 750-mm rainfall and is
chronically
drought prone;
21% area receives less than 750 mm rainfall (large area of
Peninsular and Rajasthan)
Rainfall is erratic in 4 out of 10 years.
2
9

 Irrigation Potential is 140 Million Ha (76 MHa Surface + 64

MHa
Groundwater)

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0

 Depletion of Ground water and limitation of surface water

imply that not all net sown area is amenable to irrigation.
Per Capita Water availability is steadily declining due to
increase in population, rapid industrialization, urbanization,
cropping intensity and declining ground water level. Problems
are likely to aggravate.
Net Result Inevitability of Drought in Some Part or
Other.

The

mechanism

necessarily

differs

for

from

anticipating
similar

disasters, natural calamities (like

and

managing

arrangements

droughts

concerning

other

earthquakes, floods, cloudbursts,

tsunami etc) or man-made disasters, for the following reasons:

(i)

Slow onset and prolonged course of droughts as against

the

other disasters, which have rapid onset, and a limited

duration; and
(ii)

Early warning indicators

in case

of

droughts

are

necessarily ambiguous because they may or may not

culminate in a full-blown drought.

The
issue

Government

of

India

in

2002

decided

to

retain

the

of management of drought with the Department of Agriculture

and Cooperation when it was decided to transfer the management of

all other type of natural and man-made disasters with the Ministry of
Home Affairs. Unlike other natural disasters its onset is slow but has a
very serious impact on the economy due to its intensity and longer
3
1

duration over a period of time.

3
2

State Governments primary responsibility:

The primary responsibility of managing drought (or any other

natural disasters)

is

of

the

respective

State

Governments.

The

role of the Central Government is to supplement the efforts of the

State Government in effective management of disasters and provide
additional

resources

(food

grains

/ fnancial assistance etc.) to

combat the situation.

The risk management plan having early warning indicators in

case of drought are ambiguous, as they may or may not culminate
into a full-blown drought.

In

such

situations

the

relief

based

management approach has to be launched to contain the impact of

drought. Thus, it is to be understood that besides having a general
risk management plan for handling drought with long- term and shortterm approaches, we need to have a Crisis Management Plan (CMP)
to deal with drought situation by the Central Government and the
State Governments to minimize its impact.

Early indicators of Droughts

The following constitute early warning indicators:

For Kharif (sowing June to August)

i)

Delay in onset of South-West Monsoon.

ii)

Long break activity of South-West

Monsoon. iii) Insufficient rains during the

month of July.

3
3

iv)

Rise in Price of fodder.

v)

Absence of rising trend in Reservoir Levels.

vi)

Drying up sources of Rural Drinking Water Supply.

vii)

Declining

trend

in

progress

of

sowing

over

successive

weeks compared to corresponding fgures for normal years.

For Rabi (sowing November to January)
i)

Defciency in closing figures for South-West Monsoon (30th

September).

ii)
for

Serious depletion in level of Ground Water compared to fgures

normal years.

iii)

Fall in the level of Reservoirs compared to fgures of the

corresponding period

in the normal years indication of

poor recharge following SW Monsoon.

iv)

Indication of marked soil moisture

stress. v)
vi)

Rise in price of fodder.

Increased deployment of water through tankers

(For Tamil Nadu & Pondicherry the crucial period is North
East Monsoon October to December)

Other Seasons
For areas like Gujarat, Madhya Maharashtra, Marathwada and
North Interior Karnataka the crucial period is March / April when
due to chronic hydrological drought, many areas develop acute scarcity
of Drinking Water.
3
4

For specifc states and particular crops there are particular times
in a year when progress of rains is of special signifcance e.g. February
rains in Kerala for plantation crops.

3.

Crisis Management Framework

It

is

the

identifcation

framework

of

crisis

analysis

aimed

at

of fundamental aspects of Crisis situation (Phases of

crisis, magnitude, outcome of crisis (impact), trigger mechanism and

strategic response matrix).

Vulnerabilit
y
Magnitud
e
(area
Zero
.

Outcom
e
of
the
Crisi
Nil

Normal

Level Phases
of
Crisi
s
1.

(Rainfall
is
above +19%
to 19%
cumulatively
for
more than 4
weeks

Identifie
d
Trigge
r
mechanis
Nil

Strategic Response
Matrix
/
Action
Developing
and
Strengthening
drought
preparedness
assessing food and
water
requirements
and resources,
constant
monitoring droughtrelated
characteristics
Drawing
up
of

period
through out
the
season )

3
5

2.
2

1-

Incipien
t.
(Sudde
n

Forecast of
late
onset
of
acceleration
monsoon
of
demand
coupled with of
employcontinuing
ment.
)
water crisis
and
heat wave.

CAP
(Water
)
CAP
(Health
)

(Apr Jun)

Aler
t

CAP (Crop Preparation

(Rainfall
forecast
is
expected
to be less
than the
normal
rainfall and
below 19% and
the deficit
continues
for more
than 2-3
weeks &
Soil
moisture
level is
unsustainab
le)

3
6

of

updated

Contingency Crop Plan and

its
propagation through
effective
agro-advisory services
Propagation of

short-term

water
conservation
measures,
waterbudgeting,
Proper health advisories
and
ensuring
availability
of
emergency
medical
services
Continuation of
ongoing
alternative
employment
generation programmes in
drought affected / prone
areas, through NREGA as
a part of supplementary
employment
and as a social safety
net support under NREGA

Monitoring
over
exploitation of
ground
water
for
nonagricultural
and
nondrinking
purposes
(i.e. industrial /
commercial
/
entertainment purposes)
Advisory
Note:
(The ULBs may be
directed to
control the extraction of
water)
Energising
the
Identified
alternative sources
for
the requirement
of

water,
power.

food, fodder and

Meeting
of
Crisis
Management Group (CMG)
to review and revitalise
the role of concerned
machineries.

3
7

3.

34
Delayed
onset of
monsoon.
Deficit
Rainfall for
more than
two weeks.
Acute

Moderat CAP
Effective role of Extension
e
(Crop)
machinery and realising
CAP
the
(Water)
objectives of Contingency
CAP
Crop
(Health
Plan.
) CAP
Operationalising short(Food &
term
PD)
water
conservation
measures
by municipal and
water crisis.
district
agencies,
(May
water-budgeting
by
Mid
irrigation
and
Drinking
July)
Water Department.
Advisory
Note:
(Rainfall
is
Identify alternative sources
less than
when
the
the town is in Warning
normal
period
rainfall and
and the supply of water
below
may be
restricted to 70 lpcd
19% and
the deficit
instead of 135
continuesfor
lpcd
more than

Judicial use of drinking

3
water (restricted supply of
6 weeks &
water
for
basic
requirement
and
Soil
alternative
non-potable
moisture,
water for other purposes)
GW
Meeting of CMG to review
& SW level
the action
initiated by
is
line
lower
Departments and affected
State Governments
and
than
taking
previo
decision for movement of
us
water and fodder from

4.

57
Deficit or
No rainfall
during the
sowing
period. Midseason
withdrawal
of monsoon.
Dry spell for
more than 4
weeks. Deficit
rainfall in the
range of 20% to -40%.
Wilting
of
Crops due
to shortage
of
water
and
continuing
heat wave
conditions.

(JUL SEP)

(Rainfall
is
less than
the
normal
rainfall and
below
25%
and
the
deficit
continue for
more than
6 weeks
& Soil
moisture,
GW &
SW

Severe

CAP
(Crop)
CAP
(Water)
CAP
(Cattle
Care)
CAP
(Health)
CAP
(EGP)
CAP
(Food
& PD)

Referring the issue to

NCMC
for taking up with Cabinet
for
taking
certain
vital
decisions like deferment /
rescheduling
/fresh loan, movement of
water and fodder through
railways,
additional
allocation of food grains,
establishing
cattle
camps,
alternative
employment
generation
programmes,
enhancing
PDS
allocations, import
of food grains to meet the
gap between demand and
supply, checking up of
inflation etc.
Advisory
Note:
In the Emergency period,
water
may be supplied at 40
lpcd and
non-potable
water
may be
supplemented
for
other uses.

Early
release
of
instalments under CRF and
ensuring
that the State
Governments utilise it for
initial emergency measures.

Enabling
employment
under NREGA as a
part of
supplementary
employment and

Acute (Potential Disaster)

710

Early
withdrawal
of monsoon.
Midseason
withdrawal..
Severe
defcit of
cumulative
annual
rainfall.
Severe soil
moisture
defcit.
No
rainfall for
more than
4-6 weeks
in sown
area,
resulting
in
crop
damage
Severe
shortage
in
availability
of GW and
SW.

(JULOCT)

(Rainfall is
less
than
the normal
rainfall and
below 25% and
the defcit
continue

Extreme
(FULLY
BLOWN
DROUGHT)

CAP
(Water)
CAP
(Cattle
Care)
CAP
(Social
Sector)
CAP
(Energy
Sector)
CAP
(Health)
CAP
(Food
& PD)
CAP
(Labou
r
&
Emplo
y
ment)

Decision by Cabinet for

Constitution of
GoM / Task Force under the
chairmanship
of
a
Union
Minister of Cabinet rank to take
decisions during acute crisis
Monitoring of drought affected
States individually
by
each
designated area officer
in
the Department
about
ongoing
relief
measures.

Weekly CMG
meeting and
monitoring
the
progress
of
drought relief measures
Review of visit by Area Officers to
the defcit rainfall States.
Strict
Water
conservation
measures and
monitoring
the
release
of
canal water for
irrigation
Constitution of Central Team to
visit to drought declared States.
Assessment of damages and
estimation of losses for release
of funds from NCCF
Special assistance to farmers /
dairy /
poultry
/
fshery
sector
Enabling employment under
NREGA
as a
part of
supplementary
employment and
as a social
safety net support

Revitalising
the
ongoing
programmes
for
vulnerable
sections of society
Preventive measures for loss of
human
/cattle
life
on
account
of
potential
disaster

Recovery (Post Disaster)

>100

Mitigate
d

(OCTJUN)

Normal
rainfall in
Rabi and
subsequen
t seasons.
Easing of
soil
moisture
stress
situation
Farming
/Rural
communit
ys
livelihood
requireme
nts
Returning

Rescheduling of farm loans

Early release of input
subsidy
Payment of losses in time to
(Cattle Care)
the benefciaries i.e. agriCAP (Energy
insurance, NCCF / CRF
Sector)
benefts etc.
CAP (Health)

Adequate availability of
CAP
seeds for sowing in next
(Employment
season
Guarantee

Monitoring of the
Programmes)
ongoing
relief
CAP (Food
measures
and
& PD)
taking necessary course
CAP (Labour
correction
&
Simultaneous
Employment)
documentation

Monitoring of the climate

and
ensuring
CAP (Water)
CAP

alternative
arrangements
against relapse
of the
drought.

CAP Contingency Action

Plan

Note:

Contingency Action Plans (SOP)

Cattle Care, Health, Energy

Sector, Food and

(in respect of Crop, Water,

livelihood Security) (To

be

prepared by concerned Central Government Ministries / Departments)

Specific Attention to Water User Groups:

Water User Groups

Potential Actions

Public Water Suppliers

Municipal Waste Discharges
Agriculture
Industry (Infrastructure, Food
processing including beverages,
others(heavy industry, mining)
Power Production (Hydro electric)
Recreation (Parks, fountains etc.)

4.

Leak Repair
Non-Essential Water use restrictions
Pressure Reduction
Voluntary Water Conservation
Mandatory Water Conservation
Emergency Source Enhancement
Interconnection
Major User Restriction
Emergency Rate Structures
Source Blending

Strategic Activity Planner

Activity

Jun Jul

Aug Sep Oct Nov Dec Jan Feb Mar Apr May

DROUGHT PREPAREDNESS
Reviewing CMP
Monitoring
Rainfall
Temperature
Surface water
Normal Area Vs
level
Sown area

Assessment
Drinking water
availability
Irrigation water
availability
Soil Moisture
Fodder availability
Food grains
availability
Energy
Sector
requirement
Inputs and Seed
availability

Water Conservation measures

Check dams /
Water sheds

Activity
Jun Jul
Rain Water
Harvesting
Ground Water
Recharge
Protection of
aquatic resources
for aquaculture

Aug Sep Oct Nov

Dec Jan Feb Mar Apr May

DROUGHT REPORTING
Early Warning System (EWS)
Forecast of
Contingency
Cropping
Forecast of Crop
Loss
Forecast of Water
Defciency
Forecast of Food
insecurity
Forecast of
Cattle feed
defcit
Declaration of
Drought

Estimation
Unsown area
Crop Loss due
to drought
Potential
Water defcit
For
irrigation
For drinking
Fodder
requirement,
availability,
additional
demand
Loss to AH/
Fisheries
Loss to Energy
Sector (fuel and
hydroelectricity)

Activity

Jun Jul

Aug Sep Oct Nov Dec Jan Feb Mar Apr May

DROUGHT
Propagation of
Forecast through
Extension
Services
Propagation of
contingency
cropping
Promotion of agro
forestry
Issue of Agro
advisories
Issue of General
advisories
CRF release
Alternative
employment
Food Security to
vulnerable
Sections
Food grain
requirement of
farming
community
Processing of
request for
additional
financial
Water and Fodder
movement
Energy
Sector
requirement
(Import /
Indigenous
procurement from
outside
State)
Cattle &the
animal
welfare (Vet.)
Cattle camp
Encouraging of
community
welfare
organizations for
mitigation efforts
and monitoring of

5. Agencies responsible for Identified Activities

Activity

Primary

Reviewing CMP
Monitoring
Rainfall
Temperature
Surface water level
Ground Water level
Monitoring of
Agricultural Drought

Assessment
Drinking water
availability
Irrigation
water
availability
Soil Moisture

Fodder, cattle feed and

poultry feed availability
Food grains availability
Energy Sector
requirement
Inputs and Seed
availability
Water Conservation
measures
Check dams /
Water sheds
Deficit irrigation,
Sprinkler and drip
irrigation, reuse of
irrigation water, use
of water of
suboptimal quality
Rain Water Harvesting
&

DAC
IMD
IMD
IMD
IMD
Drought
Research
Unit,
IMD Pune /
State
s
State
s
State
s
State
s
State
s
State
s
State
s

Secondar
y
MHA / NDMA
State
s
State
s
State
s
State
s
State
s

Tertiary
NCMC
Dept. of Agriculture
and
DAC
DAC
DAC
DAC

DWS &
MoWR (CGWB)
MoWR

DAC

NRSA / IMD /
MoWR
(Irrigation
DoWing)
AH&D

DAC

D/o F&PD
M/o Power /
PNG

DAC
DAC

DAC

DAC

DAC (Seeds
& NRM
Div)

State
s
State
s

DAC / RD (LR) /
MoWR
MoWR
(Irrigation
Wing)

DAC

State
s

MoWR / CGWB

DAC

DAC

Activity

Primary

Ground Water Recharge

Adjustment in sanction
water /Water Pricing
Monitoring of Water
levels in Headworks
such as Jackwells and
Tubewells

State
s
State
s
ULB /
Implementin
g Agency

Judicial use of available

water

ULB /
Department
in- charge of
O&M
State
s

Planning of naturally
drought restraint crops
with less water
consumption
and
duration
Water Supply system
for
drought prone areas for
arranged supply of
water to commercial
and industrial
activities
having low
Reduction in
conveyance
loss, evaporation
from soil surface,
renovation and
percolation
of tanks,
Early Warning
System
(EWS)
Forecast of
Contingency
Cropping of Crop Loss
Forecast
Forecast of Water
Deficiency
Forecast of Food
Insecurity
Forecast of Cattle feed
defcit

State
s

Secondar
y CGWB
CWC
Public
Health
Engineering
Department
/ State
Government
Stat
e
Governmen
ICAR /
Directorate
of
Extensio
n
CWC

Tertiary
MoWR
MoWR
DAC

MoWR

DAC (Crops Division)

MoWR

State
s

CWC

MoWR

State
s
State
s
State
s
State
s
State
s

ICAR / DAC
(Extn.)
ICAR / DAC
(Extn.)
MoWR / DWS

DAC

D/o Food & PD

DAC

D/o AHD

DAC

DAC
DAC

Activity
Declaration of
Drought
Estimation
Normal Area Vs sown
area
Unsown area
Crop Loss due to
drought
Loss to Animal
Husbandry & Fisheries
Sector
Potential Water defcit
For irrigation
For drinking
Fodder / cattle feed /
poultry feed
requirement,
availability, additional
Loss to Energy Sector
Drought Mitigation
Propagation of
Forecast through
Extn.
Services
Propagation
of
contingency
cropping
Propagation of
agro forestry
Issue of Agro advisories
Issue of
General
advisories
CRF release
Alternative
employment
Food Security to
vulnerable Sections
Food grain requirement
of farming community
Request for additional
financial assistance
from
NCCF etc.
Water
and Fodder
movement
Packaged / Bottled
water

Primary
State
s
State
s
State
s
State
s
State
s

Secondar
y

Tertiary

DAC
DAC
DAC
DoAHD&F

State
s
State
s
State
s

MoWR
DWS
DoAHD&F

DAC
DAC
DAC

State
s
States

Power / PNG

DAC

States

ICAR

DAC

States

M/o E&F

DAC

States
States

DAC
DAC

M/o Finance
States

States

States
D/o Rural
Development
M/o WCD / SJ &
E / RD
D/o FPD

States

DAC

HLC / Finance

States

Railways

DAC

States

D/o DWS, WCD,

SJ&E, RD

DAC

States

DAC

DAC
DAC
DAC

Activity
Energy Sector
requirement
Cattle & animal welfare
(Vet.)
Cattle camp
Monitoring and
encouraging of NGOs /
VOs
Taking over of the
exploratory wells
in drought prone
areas
Adoption of traditional
methods of water
storage
and completion of

Primary
States

Secondar
y
Power / PNG

Tertiary

States

DoAHD

DAC

States
States

DoAHD
Panchayati Raj

DAC
DAC

States

CGWB

MoWR

States

CWC

MoWR

DAC

6. Crisis
Group

Management

There shall be a Crisis Management Group (CMG) for Drought

Management as is defned in the Crisis Management Plan (National) to
deal with various phases of drought. The composition of the CMG for
Drought is at. Joint Secretary (Drought Management), the nodal
officer nominated by the Department of Agriculture & Cooperation
to coordinate with NCMC will be the Member-Secretary of CMG.
CMG under the Chairmanship of Additional Secretary & Central
Drought Relief Commissioner would periodically review the drought
preparedness,
take appropriate
decisions and report
the developments to the Agriculture Secretary and to National
Crisis Management Committee (NCMC).
The
issues
to
be
decided by the Cabinet would be referred to NCMC for further
necessary action by the Cabinet Secretariat.
At State level, a similar set up as envisaged for the Centre shall be
made to review the crisis of drought.
At District level, the District Magistrate / Collector would be the head
of the
Crisis Management Group to deal the issue at sub-district / block /
Taluk level.

7. Nodal
Officers
Besides
State
Relief
Commissioners
and
State
Agriculture
Secretaries, line Departments / Ministries/ offices / agencies of
the Central Government, responsible for different sets of activity
connected with crisis management of drought shall nominate an
officer not below the rank of Director or equivalent in the
Government of India.
The list of nodal officers containing their
name, designation, telephone
(office / residence), FAX, e-mail,
mobile number and address shall be maintained in the Drought
Monitoring Cell (Control Room) of the Department of Agriculture &
Cooperation, Government of India and got updated every month.

At District level, the District Magistrate / Collector would be the nodal

officer of the drought affected district, who will be co-opted in the
drought management spectrum at the time of acute crisis in their
district.

Conclusio
n
The aim of the CMP (Drought) is to help all stake holders to be
more prepared and less vulnerable to drought.
It will also
result in a timely and effective response by government agencies
to reduce impacts during a drought crisis. The strategic activity
planner and identifcation of agencies responsible for managing the
crisis is aimed at demarcation of the duties of respective
personnel in the identifed activity.
This plan enables the officials who are responsible to focus
their efforts on emerging crisis situations, which may require a
unique response.
As much as decisions taken in advance of a
Crisis would make the remaining decisions are taken easily and go
through the Crisis.
However,
existence
of
a
National level mechanism and a holistic and integrated drought
management plan would reduce the focus of the Crisis
Management Plan (CMP) towards relief and rehabilitation in the
event of fully blown drought.

51

CHAPTER- 5

CONCLUSION

The strategic activity planner and identification of agencies responsible

for managing the crisis is aimed at demarcation of the duties respective
personnel in the identified activity.
The officials who are responsible to focus
efforts on emerging crisis situation which may require a unique response.
As much as decisions taken in advance of a crisis would make the
remaining decisions are taken easily and go through the crisis.

52

BIBLOGRAPHY
www.google.com
www.wikipedia.com
www.indiangov.com
www.businessweek.com

53