UNIT-3 CRISIS MANAGEMENT

UNIT III CRISIS MANAGEMENT - Implications – People issues –

Environmental issues –Psychological fall outs – Learning to keep calm –
Preventing interruptions – Controlling crisis – Importance of good
communication – Taking advantage of crisis – Pushing new ideas –
Empowerment.

3.1 CRISIS MANAGEMENT - MEANING, NEED AND ITS FEATURES

What is Crisis ?
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 affects an individual, group, organization or society
on the whole.
3.1.1 Characteristics of Crisis
 Crisis is a sequence of sudden disturbing events harming the
organization.
 Crisis generally arises on a short notice.
 Crisis triggers a feeling of fear and threat amongst the individuals.
Why Crisis ?
Crisis can arise in an organization due to any of the following reasons:
  Technological failure and Breakdown of machines lead to crisis.
Problems in internet, corruption in the software, errors in
passwords all result in crisis.
 Crisis arises when employees do not agree to each other and fight
amongst themselves. Crisis arises as a result of boycott, strikes for
indefinite periods, disputes and so on.
 Violence, thefts and terrorism at the workplace result in
organization crisis.
 Neglecting minor issues in the beginning can lead to major crisis
and a situation of uncertainty at the work place. The management
must have complete control on its employees and should not
adopt a casual attitude at work.
 Illegal behaviors such as accepting bribes, frauds, data or
information tampering all lead to organization crisis.
 Crisis arises when organization fails to pay its creditors and
declares itself a bankrupt organization.
3.1.2 Crisis Management
The art of dealing with sudden and unexpected events which
disturbs the employees, organization as well as external clients refers
to Crisis Management.
The process of handling unexpected and sudden changes in
organization culture is called as crisis management.
3.1.3 Need for Crisis Management
 Crisis Management prepares the individuals to face unexpected
developments and adverse conditions in the organization with
courage and determination.
 Employees adjust well to the sudden changes in the organization.
 Employees can understand and analyze the causes of crisis and
cope with it in the best possible way.
 Crisis Management helps the managers to devise strategies to
come out of uncertain conditions and also decide on the future
course of action.
 Crisis Management helps the managers to feel the early signs of
crisis, warn the employees against the aftermaths and take
necessary precautions for the same.
 Essential Features of Crisis Management
 Crisis Management includes activities and processes which help
the managers as well as employees to analyze and understand
events which might lead to crisis and uncertainty in the
organization.
 Crisis Management enables the managers and employees to
respond effectively to changes in the organization culture.
 It consists of effective coordination amongst the departments to
overcome emergency situations.
  Employees at the time of crisis must communicate effectively with
each other and try their level best to overcome tough times.
Points to keep in mind during crisis
 Don’t panic or spread rumours around. Be patient.
 At the time of crisis the management should be in regular touch
with the employees, external clients, stake holders as well as
media.
 Avoid being too rigid. One should adapt well to changes and new
situations

3.2 IMPLICATIONS OF CRISIS

Crisis refers to sudden unplanned events which cause major
disturbances in the organization and trigger a feeling of fear and threat
amongst the employees.
Following are the implications of crisis:
1. Natural Crisis
 Disturbances in the environment and nature lead to natural
crisis.
 Such events are generally beyond the control of human
beings.
 Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis,
Flood, Drought all result in natural disaster.
2. Technological Crisis
 Technological crisis arises as a result of failure in technology.
Problems in the overall systems lead to technological crisis.
 Breakdown of machine, corrupted software and so on give
rise to technological crisis.
3. Confrontation Crisis
 Confrontation crises arise when employees fight amongst
themselves. Individuals do not agree to each other and
eventually depend on non productive acts like boycotts,
strikes for indefinite periods and so on.
 In such a type of crisis, employees disobey superiors; give
them ultimatums and force them to accept their demands.
 Internal disputes, ineffective communication and lack of
coordination give rise to confrontation crisis.
4. Crisis of Malevolence
 Organizations face crisis of malevolence when some
notorious employees take the help of criminal activities and
extreme steps to fulfill their demands.
 Acts like kidnapping company’s officials, false rumours all
lead to crisis of malevolence.
5. Crisis of Organizational Misdeeds
  Crises of organizational misdeeds arise when management
takes certain decisions knowing the harmful consequences
of the same towards the stakeholders and external parties.
 In such cases, superiors ignore the after effects of strategies
and implement the same for quick results.
Crisis of organizational misdeeds can be further classified into
following three types:
i. Crisis of Skewed Management Values
 Crisis of Skewed Management Values arises when
management supports short term growth and ignores
broader issues.
ii. Crisis of Deception
 Organizations face crisis of deception when
management purposely tampers data and information.
 Management makes fake promises and wrong
commitments to the customers. Communicating wrong
information about the organization and products lead
to crisis of deception.
iii. Crisis of Management Misconduct
 Organizations face crisis of management misconduct
when management indulges in deliberate acts of
 illegality like accepting bribes, passing on confidential
information and so on.
. Crisis due to Workplace Violence
 Such a type of crisis arises when employees are indulged in
violent acts such as beating employees, superiors in the
office premises itself.
. Crisis Due to Rumours
 Spreading false rumours about the organization and brand
lead to crisis. Employees must not spread anything which
would tarnish the image of their organization.
. Bankruptcy
 A crisis also arises when organizations fail to pay its creditors
and other parties.
 Lack of fund leads to crisis.
. Crisis Due to Natural Factors
 Disturbances in environment and nature such as hurricanes,
volcanoes, storms, flood; droughts, earthquakes etc result in
crisis.
. Sudden Crisis
 As the name suggests, such situations arise all of a sudden
and on an extremely short notice.
  Managers do not get warning signals and such a situation is
in most cases beyond any one’s control.
. Smoldering Crisis
 Neglecting minor issues in the beginning lead to smoldering
crisis later.
 Managers often can foresee crisis but they should not ignore
the same and wait for someone else to take action.
 Warn the employees immediately to avoid such a situation.
3.2.1 Crisis Management Plan
Crisis refers to a sequence of unwanted events leading to major
disturbances and uncertainty at the workplace.
Crisis is an unexpected event which not only causes harm to the
organization but also triggers a feeling of fear and insecurity amongst
the individuals.
Organizations must be prepared well to face inevitable threats
and come out of tough times without much difficulty. Individuals must
immediately jump into action; the moment crisis is being detected at
the workplace.
 What is a Crisis Management Plan ?
Individuals need to adopt a step by step approach during critical
situations. Planning is essential. Getting hyper does not solve any
problem, instead makes the situation worse. It is a crime to take
impulsive and hasty decisions during crisis. It is essential to think
rationally and devise strategies which would work best during
emergency situations. Complaining and cribbing lead you nowhere.
Crisis Management Plan refers to a detailed plan which describes the
various actions which need to be taken during critical situations or
crisis.
Any plan prepared by superiors, members of crisis management
team and related employees to help organization overcome crisis in the
best possible way is called crisis management plan.
 Why Crisis Management Plan ?
 Crisis management plan helps the employees to adopt a focused
approach during emergency situations.
 Crisis management Plan elaborates the actions to be taken by the
management as well as the employees to save organization’s
reputation and standing in the industry. It gives a detailed
overview of the roles and responsibilities of employees during
crisis.
 Individuals representing the crisis management team formulate
crisis management plan to reduce the after effects of crisis at the
workplace.
 Crisis Management Plan helps the managers and superiors to take
quick and relevant actions as per the situation.
 Crisis Management plan protects an organization from inevitable
threats and also makes its future secure.
 Such plans reduce instability and uncertainty amongst the
employees and help them concentrate on their work.
 Characteristics of Crisis Management Plan
 Crisis Management Plan should be made in the presence of all
executives. Every member of crisis management team should
have a say in the plan. It is important for each one to give his / her
valuable inputs and suggestions.
 Crisis Management Plan should take into account all identified
problem areas and suggest a possible solution for all of them to
help the organization come out of crisis as soon as possible.
 Make sure the plans are realistic and solve the purpose of saving
organization’s reputation and name.
 How to make a crisis management plan ?
 Identify the problem areas and various factors which led to crisis
at the workplace.
 Discuss issues and areas of concern amongst yourselves on an
open forum for everyone to share their opinion.
 Make sure you have accurate information. Don’t depend on guess
works and assumptions. Double check your information before
submitting the final plan.
  Crisis Management Plan should not only focus on ways to
overcome crisis but also on making the processes foolproof to
avoid emergency situations in future.

3.3 THE ENVIRONMENTAL CRISIS

An unprecedented crisis
One of the most compelling reasons for studying environmental science
and management is the fact that, in the view of many leading authorities,
we are now experiencing an environmental crisis; indeed, many authors
have claimed that the present environmental crisis is unprecedented in its
magnitude, pace and severity (Park 2001). Awareness of this environmental
crisis has grown since the 1970s, partly as a result of the prominence given
to major so-called 'environmental' disasters such as the Sahelian droughts of
the 1970s and 1980s and the nuclear accident at Chernobyl in 1986. A major
assessment of the global environment published in 1999, the UNEP Global
Environment Outlook 2000 report (UNEP 1999), drew attention to two
critical, recurring themes:
 the fact that the global human ecosystem is threatened by grave
imbalances in productivity and in the distribution of goods and
services - as evidenced by the fact that a large proportion of the
human population lives in poverty, and that a widening gap exists
 between those who benefit from economic and technological
development and those who do not
 the fact that accelerating changes are occurring at the global
scale, with rates of economic and social development outstripping
progress in achieving internationally co-ordinated environmental
stewardship - with the result that improvements in environmental
protection due to new technologies are being 'cancelled out' by
the magnitude and pace of human population growth and
economic development
Consequently, a wide range of environmental problems has emerged;
those problems include anthropogenic climate change ('global warming'),
the depletion of stratospheric ozone (the 'ozone hole'), the acidification of
surface waters ('acid rain'), the destruction of tropical forests, the depletion
and extinction of species, and the precipitous decline of biodiversity. Yet,
while all of these problems have physical (environmental) manifestations,
their causes - and their potential solutions - are invariably bound up with
human attitudes, beliefs, values, needs, desires, expectations, and
behaviours. Thus the symptoms of the environmental crisis cannot be
regarded purely as physical problems requiring solutions by environmental
'specialists'; instead, they are intrinsically human problems and they are
intimately related to the question of what it means to be human.
3.3.1 Main features of the environmental crisis
At this point, a very brief overview of the environmental crisis may be
helpful. It is important to emphasise that a wide range of views about the
nature and severity of the current environmental crisis exists, and some of
the issues are highly controversial. Nevertheless, there is broad agreement
that the environmental crisis encompasses the following main issues.
 Climate change: anthropogenic climate change due to pollution of
the atmosphere by greenhouse gases (and other contaminants) is
now regarded as one of the major global environmental issues. It
occurs largely as a result of the combustion of fossil fuels,
emissions from agriculture and pastoralism, and land-use changes
that accompany the destruction, clearance and burning of forests.
Climate change already has observable ecological and social
effects, and its projected impacts could potentially result in
profound changes in global mean surface temperature, sea level,
ocean circulation, precipitation patterns, climatic zones, species
distributions and ecosystem function.
 Stratospheric ozone depletion: the depletion of stratospheric
ozone due to the pollution of the atmosphere by halocarbons
(such as chlorofluorocarbons, or CFCs) is another serious
environmental issue. It is a significant concern because the lack of
protective ozone at high altitudes results in increased levels of
 harmful solar ultraviolet (UV-B) radiation reaching the earth's
surface, causing a range of health-related and ecological impacts.
 Degraded air quality: other forms of air pollution are also
significant, particularly at regional and local scales, as they may
seriously degrade air quality; worldwide, approximately one
billion people inhabit areas - mainly industrial cities - where
unhealthy levels of air pollution occur. Many air pollutants are
responsible for the degradation of air quality, but some key
pollutants include particulate matter (such as soot), tropospheric
ozone, oxides of nitrogen, oxides of sulphur, lead and various
aromatic compounds (such as benzene). Many air pollutants may
cause or aggravate respiratory and cardiovascular illnesses; some
are known carcinogens; and some can cause damage to
vegetation and, in turn, produce a range of ecological effects.
 Degraded water quality: similarly, water quality can be seriously
degraded by contamination with pollutants, giving rise to a range
of health-related and ecological effects (such as the degradation
of coral reefs). A major source of water pollution is the terrestrial
run-off to inshore waters that occurs in many coastal locations;
such run-off may contain significantly elevated levels of nitrogen
and phosphorus from agricultural land and from human
settlements. Many other human activities lead to water pollution,
 including mining and industrial processes, which may create toxic
effluent. Oil spills, accumulation of plastics and the
bioaccumulation of persistent organic chemicals are some of the
other causes of serious degradation of the marine environment.
 Scarcity of fresh water: besides the pollution of freshwater
sources, there are a variety of other reasons for the scarcity of
fresh water for drinking in many parts of the world - many of
which are related to poor water resource management practices.
For instance, the over-abstraction of water from rivers results in
water shortages and problems of salinisation downstream.
Irrigation practices may also be responsible for the depletion of
local water sources and the salinisation of irrigated land. Vast
differences in water security exist at the global scale, reflecting
both demand for fresh water and the scale of public and private
investment in water supplies, treatment and distribution.
 Land contamination: land contamination occurs as a result of
chemical or radioactive pollution, especially by long-lived
(persistent) chemical species that enter the soil. Land
contamination may cause profound ecological effects and it
presents severe constraints to development, since contaminated
land must typically be rehabilitated before it is safe to use for
agriculture, construction or recreation.
 Deforestation: it has been estimated that around half of the
world's mature forests have been cleared by humans.
Deforestation occurs for a variety of reasons, but the majority of
deforestation now occurs when tropical forests are cleared for
agriculture and pastoralism; other reasons include the destruction
of trees for charcoal production and the selective logging of
forests for timber. Whilst tropical forests cover only around 6% of
the earth's surface, they are an essential part of the global
ecosystem and of the biosphere: they help to regulate climate;
they protect soils from erosion; and they provide habitats for a
vast number of plant and animal species. One estimate suggests
that around 90% of the world's species are found in tropical
forests (Park 2001).
 Soil erosion and degradation: concerns about soil erosion, soil
degradation and the problem of desertification have become
acute. In part, these concerns are based on the historical
experiences of dramatic soil erosion and transport in New World
countries including the USA (during the 'Dust Bowl' of the 1930s)
and Australia. Whilst analyses of the problems of soil erosion and
degradation have become more sophisticated, recently, it is clear
that these problems continue to have important consequences
 for agricultural and pastoral productivity as well as for the
functioning of natural ecosystems.
 Land use change and habitat loss: these issues overlap with
others, such as deforestation, but they are broader and include
the clearance of forest for agriculture and pastoralism, the
transformation of land during urban growth, the development of
new infrastructure (such as roads), the drainage of wetlands, and
the destruction and removal of coastal mangrove forests.
 Biodiversity loss: many plant and animal species are threatened
with extinction, due to the spread of disease, the destruction and
degradation of their habitats, and direct exploitation. In 1999,
UNEP (1999) estimated that one-quarter of the world's mammal
species and around one-tenth of the world's bird species faced a
significant risk of total extinction. Threats to biodiversity are not
confined to terrestrial ecosystems; serious concerns have been
raised about the future of marine and coastal wildlife species as a
result of the pollution, over-exploitation and acidification of ocean
and seas.

3.4 PSYCHOLOGICAL FALL OUTS

Mental States in a Crisis
 During a disaster, people may experience a wide range of
emotions. Psychological barriers can interfere with cooperation and
response from the public. Crisis communicators should expect certain
patterns, as described below, and understand that these patterns affect
communication.
There are a number of psychological barriers that could interfere
with cooperation and response from the public. A communicator can
mitigate many of the following reactions by acknowledging these
feelings in words, expressing empathy, and being honest.
3.4.1 Uncertainty
Unfortunately, there are more questions than answers during a
crisis, especially in the beginning. At that time, the full magnitude of the
crisis, the cause of the disaster, and the actions that people can take to
protect themselves may be unclear. This uncertainty will challenge even
the greatest communicator. To reduce their anxiety, people seek out
information to determine their options and confirm or disconfirm their
beliefs. They may choose a familiar source of information over a less
familiar source, regardless of the accuracy of the provided
information.7 They may discount information that is distressing or
overwhelming. Many communicators and leaders have been taught to
sound confident even when they are uncertain. While this may inspire
trust, there is a potential for overconfidence, which can backfire. It is
important to remember that an over-reassured public isn’t the goal.
You want people to be concerned, remain vigilant, and take all the right
precautions.
3.4.2 Fear, Anxiety, and Dread
In a crisis, people in your community may feel fear, anxiety,
confusion, and intense dread. As communicators, our job is not to make
these feelings go away. Instead, you could acknowledge them in a
statement of empathy. You can use a statement like, “we’ve never
faced anything like this before in our community and it can be
frightening.” Fear is an important psychological consideration in the
response to a threat. Bear in mind the following aspects of fear:
■ In some cases, a perceived threat can motivate and help people take
desired actions.
■ In other cases, fear of the unknown or fear of uncertainty may be the
most debilitating of the psychological responses to disasters and
prevent people from taking action.
When people are afraid, and do not have adequate information, they
may react in inappropriate ways to avoid the threat.
Communicators can help by portraying an accurate assessment of the
level of danger and providing action messages so that affected people
do not feel helpless.
3.4.3 Hopelessness and Helplessness
Avoiding hopelessness and helplessness is a vital communication
objective during a crisis. Hopelessness is the feeling that nothing can be
done by anyone to make the situation better. People may accept that a
threat is real, but that threat may loom so large that they feel the
situation is hopeless. Helplessness is the feeling that people have that
they, themselves, have no power to improve their situation or protect
themselves. If a person feels helpless to protect him- or herself, he or
she may withdraw mentally or physically. According to psychological
research, if community members let their feelings of fear, anxiety,
confusion, and dread grow unchecked during a crisis, they will most
likely begin to feel hopeless or helpless. If this happens, community
members will be less motivated and less able to take actions that could
help themselves.
Instead of trying to eliminate a community’s emotional responses
to the crisis, help community members manage their negative feelings
by setting them on a course of action. Taking an action during a crisis
can help to restore a sense of control and overcome feelings of
hopelessness and helplessness.11 Helping the public feel empowered
and in control of at least some parts of their lives may also reduce fear.
As much as possible, advise people to take actions that are
constructive and directly relate to the crisis they’re facing. These
actions may be symbolic, such as putting up a flag or preparatory, such
as donating blood or creating a family check-in plan.

3.5 LEARNING TO KEEP CALM

8 Ways to Stay Calm During a Crisis
1. Slow down.
If possible, don’t react immediately. Instead, be patient and
collect as much information as possible. Ask yourself, Is this really going
to matter a year from now? If the answer is yes, step back to remove
yourself somewhat from the situation. Instead of seeing yourself as an
active participant, try to view yourself as a representative of your
company. This perspective will help you remain less emotional and
improve your ability to make decisions.
2. Stay positive.
When stressful situations occur, your mind may go in a thousand
directions and some of your thoughts may be negative. The more your
mind wanders, the more difficult it will be for you to remain calm. Stop
yourself from beginning to imagine the worst-case scenario. Instead, let
go of negative thoughts and refocus your mind on something positive,
no matter how small.  
3. Never ask “what if?”
This worst question you could ask yourself or others in the middle
of a crisis begins with "what if." This line of questioning induces sheer
panic and forces you to process situations that have not occurred and
may never happen.
“What if” questions compound the fear and escalate the problem. Say
your company has failed to deliver a project on time. Your first instinct
may be to think, What if my client decides to hire someone else? That
thought could easily lead to the question "What if I don’t make payroll
this month?" Instead, focus on the facts and work on a solution.   
4. Take care of your body.
If you make your personal health a priority, you’ll be better
equipped to handle a crisis. Eat a balanced diet, exercise regularly and
receive plenty of sleep. Exercise lowers the level of stress
hormones and helps the body function at its highest level. By improving
your health, you’ll increase your self-control, memory and emotional
intelligence -- important characteristics that will help you respond well
to an emergency. 
5. Limit caffeine.
When you’re in the middle of a dire situation, you might be
tempted to run to the break room to grab a cup of coffee. Caffeine may
trigger a release of adrenaline, giving you a quick burst of energy and
physical strength, only to be followed by a crash marked by fatigue and
irritability in some cases. Instead of reaching for that cup of coffee,
soda or an energy drink, hydrate yourself with water.
6. Call a trusted friend or mentor.
Use your support system and don’t be afraid to ask for advice
with a stressful situation. Someone who isn’t emotionally invested in
the situation will be able to see the dilemma from a different
perspective and can help you arrive at potential solutions. When you
reach out to people you trust and respect, you’ll feel more grounded.
That security will help you control your stress and anxiety. As you
explain the situation, you may even start to share your thoughts out
loud, which might prompt you to discover a new approach or solution.
7. Disconnect.
Pull away from the situation for a while, even if only for an hour
or two. When you give yourself time to process a dilemma and the
surrounding emotions, you’ll be able to approach the situation with a
fresh perspective.
8. Develop a coping strategy.
A crisis may require you to put in long hours at the office or spend
weekends working at home. If you remain in a prolonged state of
stress, you may cause long-term damage to your health and undermine
your ability to make rational, informed decisions.
3.6 PREVENTING INTERRUPTIONS
Everyday interruptions at work can be a key barrier to managing
your time effectively and, ultimately, can be a barrier to your success.
Methods to Prevent Interruptions
a.Control or eliminate self-distractions
Your colleagues aren’t the only ones interrupting you at work—
chances are, you interrupt yourself, too! Are you often distracted by
social media, the internet, or your phone? Set limits on when and
how often you’ll use these things, and during periods of time where
you’re not using them, set them aside or don’t log on.
For example, tell yourself you’ll check your phone and social
media accounts at lunch, and then at two five-minute breaks during
the day, but that the rest of the time you’ll push them aside so you
can focus on your work. Once you come up with the right plan for
you, stick to it even when you might be tempted! Remind yourself
that you can use them later—just not right now.
b.Do your most important tasks first
Believe it or not, work that’s of lesser importance (busywork)
can distract you from doing your most important work. People often
think that by crossing a ton of small items off their to-do list, they’ll
feel productive. Don’t let these little tasks interrupt the progress you
need to make on your bigger goals!
Make a list of priorities where tasks labeled A are the most
important, B tasks are of medium importance, and C tasks are of
lesser importance and you’ll get to them when you can. Then, do
your A tasks first, B tasks when you’re done your A tasks, and C tasks
when all the B tasks are done. Sure, this method probably won’t help
you cross ten things off your to-do list before lunchtime—but it can
help you make progress on your larger, more important projects
while not forgetting about the other less-crucial projects on your list.
c.Keep a list
In addition to having a priority list for your tasks, consider
keeping another list—an interruptions list. Keep a notepad by your
desk and put today’s date on the page. Whenever someone calls,
visits, or instant messages you needing something that is important
but not right-now urgent, and you’re already in the middle of
something else, write down what they want instead of immediately
jumping into what they asked for.
This can help you minimize the impact of the interruption. It
allows you to stay mostly focused on the task at hand and to only
take a brief break to write the new task down. Writing it down can
prevent you from forgetting about the new task. Then, once you’re
finished your current task, take a look at whatever you’ve written
down on your interruptions list and decide if you need to re-prioritize
any of your other tasks to accommodate them.
d.Time-block and batch tasks
Whenever possible, it’s a good idea to do similar tasks together.
For example, if you need to write two articles and analyze three
reports over the course of a day, you may want to make time in your
schedule to do the two articles in the same timeframe, and then
block out another period of time to analyze the reports. Because
writing an original piece and analyzing data each utilize two different
mindsets, it’s best to batch like tasks together so you’re not
constantly switching back and forth between the two “brains” you
need to do the work. (Studies show there’s actually a “switching
cost” that forces you to slow down when you’re trying to switch back
and forth between tasks that are very different.) 
Blocking out time for like tasks also presents you with another
advantage: You have your schedule well-organized with your must-
do tasks, which means you can build time to accommodate new tasks
around those periods. So for example, if you’re writing your articles
between 9 and 11 AM, and someone comes by at 10:30 AM to
interrupt you with something they want you to do, you can tell them,
“Sure, I’m happy to learn more about it—I’m free at 11:00 to discuss
it further.” Then just make a note to reach out to that person at the
time you specified, and turn your attention back to the task at hand. 
e.Handle email efficiently
Email can be both a help and a hindrance. It’s a help because
it’s an easy way to communicate and to keep a record of what people
sent you. It can be a hindrance because it’s tough to control when
the emails come in, the notifications might distract you when you’re
handling another task, and it contributes to an “always on” type of
feeling.
Take control by scheduling times to manage your email. Many
workers are constantly interrupted by email. Set your own personal
rules, based on what’s realistic for your workplace culture and what’s
most helpful for you, as to how often you check and respond to your
email. For example, on an average day where there’s nothing too
crazy going on, could you check it at the beginning of your work day
and then once an hour, and not at all when you’re in the middle of a
time-block for a project? Of course, on a day where there is an
urgent project that requires your attention and collaboration, you
may need to temporarily abandon this routine.
 
f.Designate yourself as busy
Is there a setting you can activate on your email or instant
messages that designates you as busy? If so, set it during times that
you are focused on your projects and would prefer not to be
interrupted. If people notice you’re busy, they may wait to approach
you until the “busy” setting is turned off.
g.Pick a new location
While not everyone will be able to do this, if you keep getting
interrupted by people stopping by to chat with you, or if you are
distracted by noisy neighbors, ask if you can work on your project in
a quieter location for a while. Perhaps you could use a conference
room to do a few hours of work, or you could even ask to take your
work home for a couple hours so that you don’t have as many in-
person interruptions.
h.Take a walk
If you need to recover from an interruption, get up and take a
5-minute walk. Walking can clear your head and help you get back to
your desk feeling focused and ready to re-start your task. Plus, you’ll
get a few extra minutes of physical activity and an opportunity to
stretch your legs!
 
3.7 CONTROLLING CRISIS
Crisis management is the identification of threats to an
organization and its stakeholders, and the methods used by the
organization to deal with these threats. In order to reduce uncertainty
in the event of a crisis, organizations often create a crisis
management plan.
Daily headlines are filled with companies dealing with crisis. Is
your company prepared? Just as BP learned with the gulf oil spill and
Malaysian Airlines learned through two disasters, a crisis can strike at
any time. However, unlike Fortune 500 firms, smaller companies are
often unprepared and usually do not have a crisis plan in place. They
believe it will never happen to them. But, what if it does?
How well would your company fare if you died in an auto accident on
the way to work? Who would assume your role and continue
operations? Suppose you own a retail company and you discover that
one of your primary products or services has created a major health
issue--what would you do? If you operate a construction company and
an industrial accident has killed several key members of your team--
how would you react?
Before a crisis strikes, business owners should think about how a
disaster would impact employees, customers, suppliers, the general
public and their company's value. A crisis can strike any company
anytime, anywhere. Advanced planning is the key to survival. Here are
seven critical steps to crisis management that every company should
have in place regardless of its size.

1.Have a plan--Every plan begins with clear objectives. The objectives

during any crisis are to protect any individual (employee or public) who
may be endangered by the crisis, ensure the key audiences are kept
informed, and the organization survives. This written plan should
include specific actions that will be taken in the event of a crisis.
2. Identify a spokesperson--If the crisis could potentially impact the
health or well-being of customers, the general public or employees, it
may attract media attention. To ensure your company speaks with one
voice and delivers a clear consistent message, a spokesperson must be
identified as well as prepared to answer media questions and
participate in interviews.
3. Be honest and open--Nothing generates more negative media
coverage than a lack of honesty and transparency. Therefore, being as
open and transparent as possible can help stop rumors and defuse a
potential media frenzy. This transparency must be projected through all
communications channels: news interviews, social media, internal
announcements, etc.
4. Keep employees informed--Maintaining an informed workforce
helps ensure that business continues to flow as smoothly as possible. It
also minimizes the internal rumor mill that may lead to employees
posting false reports on social media.
5. Communicate with customers and suppliers--You do not want
customers and suppliers to learn about your crisis through the media.
Information on any crisis pertaining to your organization should come
from you first. Part of the crisis communications plan must include
customers and suppliers and how they will be regularly updated during
the event.
6. Update early and often--It is better to over-communicate than to
allow rumors to fill the void. Issue summary statements, updated action
plans and new developments as early and as often as possible.
Remember that with today's social media and cable news outlets, we
live in a time of the 24/7 news cycle. Your crisis plan must do the same.
7. Don't forget social media--The Ebola crisis and other recent major
news events have all confirmed that social media is one of the most
important channels of communications. Be sure to establish a social
media team to monitor, post and react to social media activity
throughout the crisis.
A crisis that is not managed well can wipe out decades of hard work
and company value in a matter of hours. A well-managed crisis confirms
that your company has the processes and procedures in place to
address almost any issue that may develop.
Another critical component of crisis management planning is the
establishment of a succession plan. You should clearly outline the
necessary steps to follow if you suddenly become unable to perform
your duties. This plan may include selling the company, or transferring
ownership to family members or key employees.
What is most important is that you create the crisis management plan
when everything is running smoothly and everyone involved can think
clearly. By planning in advance, all parties will have time to seriously
think about the ideal ways to manage different types of crises.
As you develop your crisis management plan, seek advice from the
experts that include your leadership team, employees, customers,
communications experts, investment bankers, exit planners, lawyers
and financial managers. Each of these individuals can provide you
valuable insight that could be critical should a crisis strike your
company.

3.8 IMPORTANCE OF GOOD COMMUNICATION

Crisis Communication - Meaning, Need and its Process
Crisis refers to sequence of unwanted events at the workplace
which lead to disturbances and major unrest amongst the individuals.
Crisis generally arises on a short notice and triggers a feeling of threat
and fear in the employees. In simpler words crisis leads to uncertainty
and causes major harm to the organization and its employees.
It is essential for the employees to sense the early signs of crisis and
warn the employees against the negative consequences of the same.
Crisis not only affects the smooth functioning of the organization but
also pose a threat to its brand name.
 What is Crisis Communication ?
Crisis Communication refers to a special wing which deals with the
reputation of the individuals as well as the organization. Crisis
communication is an initiative which aims at protecting the
reputation of the organization and maintaining its public image.
Various factors such as criminal attacks, government investigations,
media enquiry can tarnish the image of an organization.
Crisis Communication specialists fight against several challenges which
tend to harm the reputation and image of the organization.
 Need for Crisis Communication
Crisis can have a negative effect on brand image. Crisis Communication
experts are employed to save an organization’s reputation against
various threats and unwanted challenges.
Brand identity is one of the most valuable assets of an organization. The
main purpose of Crisis Communication team is to protect the brand
identity and maintain the organization’s firm standing within the
industry.
 Crisis Communication specialists strive hard to overcome tough
situations and help the organization come out of difficult
situations in the best possible and quickest way.
 Crisis Communication Process
 Employees should not ignore any of the external parties and
important clients Come out, meet them and discuss the problem
with them. There is nothing to be ashamed of. If needed, seek
their help. Media must not be ignored. Answer their questions.
Avoiding media makes situation all the more worse.
 Don’t criticize individuals. Show a feeling of care and concern for
them. Share their feelings and encourage them not to lose hope.
Encourage them to deliver their level best. Put yourself in their
place. Respect them and avoid playing blame games.
 Effective communication must be encouraged at the workplace
during emergency situations. Employees should have an easy
access to superior’s cabins to discuss critical issues with them and
reach to a mutually acceptable solution.
 Information must flow across all departments in its desired
form. One should not rely on mere guess works or assumptions
during crisis. Make sure the information you have is accurate.
  Crisis communication specialists must learn to take quick
decisions. Remember one needs to respond quickly and
effectively during unstable situations. Think out of the box and
devise alternate plans for the smooth functioning of organization.
 Make sure information is kept confidential. Serious action must
be taken against employees sharing information and data with
external parties. Such things are considered highly unprofessional
and unethical and spoil the reputation of the organization.
 The superiors must evaluate performance of employees on a
regular basis. Ask for feedbacks and reports to know what they
are up to. Conduct surprise audits to track performance of
employees.
Organizations hire crisis communication specialists to overcome tough
times as well as to maintain their reputation and position in the market.
Crisis Communication:
updates and important company information during the crisis.
A simple crisis communication plan involves:
 Detailed plan – The plan should outline and explain how your
organization will communicate about the crisis and handle the crisis.
Have a boilerplate statement ready while you gather details.
 Crisis communication team – Responsible for collecting
information, creating and disseminating key messages and working
with the media.
 Key messages – Consider all possible crises your organization
could face and develop key messages to be used in response.
 Internal communications – determine how employees will
receive key messages.
 Contacts and media list – Gather contact information for any
other organizations you may need to communicate with during a
crisis. And make sure you are able to easily access customer
information (within compliance regulations).
3.8.1 The Importance of Crisis Communication
When it comes to crisis in the workplace, research shows that the
areas that make employers most vulnerable are corporate reputation
(73 percent), cyber-crime (70 percent), and rumors (68 percent). Two-
thirds (66 percent) named supply chain issues, regulatory action, and
natural disasters as vulnerabilities as well. 
Therefore proper crisis communication in the workplace can help you:
 Protect your employees and other stakeholders during a crisis
 Build trust in the workplace
 Prevent the spread of misinformation in the workplace
 Prevent panic and help employees feel secure
 Prevent the threat a crisis may have on the organization’s
strategic objectives, reputation and viability. 
 Align employees with the overall crisis management strategy and
enable them to work towards the same goals
 Align the internal and external messages
 Keep customers loyal
 Keep the reputation of being an attractive employer

3.9 TAKING ADVANTAGE OF CRISIS

How to Benefit from a Financial Crisis
A financial crisis is the scariest time for anyone to be in. The
economy drastically declines and most people are stuck on what to do.
This article helps to understand the benefits of a financial crisis. While
most will take a loss in this situation, you can make some gain in a
troubling economy.
3.9.1 Being Smart with Your Money
1.Reserve your cash. Saving money can be a difficult thing to do.
People are often stuck on spending money for instant gratification
rather than saving money for long-term goals. Think about your wants
and needs in life. Let your rational mind influence you to seize your
goals. Saving can be simple and easy when you put the effort.
 Focus on saving money from your income.
  The best amount to save is 6-12 months of expenses in cash.
 Set simple goals to start with. For example, put $100 in a jar every
month.

2.Practice good financial habits. Make sure you budget and stretch

your resources. Work on implementing good choices in your daily life.
Delaying instant gratification by waiting on discounted prices can be the
key to successful saving. If you’re waiting on larger rewards, it can make
you more patient and result in keeping more money on hand.[2]
 Cut costs on things that you don't use.
 Reuse resources as often as you can.
 Cut/limit unnecessary spending (eating out, movies, shopping,
etc).
3.Be in control of your debt. Control your debt by avoiding paying only
the minimum on your balances. Debtors feel that paying the minimum
is sufficient, but it has a negative impact on your debt repayment, in
that it costs you more in interest in the long run. All types of income
should assist in alleviating debt. The less debt you have the less stress
on your shoulders and more money you can save or use.
 Control your credit card spending.
 Set aside emergency money. During a crisis income can vary,
while your responsibilities remain ongoing.
  Pay off the credit card with high interest to avoid paying more
interest in the long run.
 Avoid postponing payments.
 Have strong self-control (avoid credit line increases, limit
temptation, and be accountable).
4.Refrain from refinancing your home. During a financial crisis people
tend to see their homes as a piggy bank. Try not to use these “funds” to
cover living expenses. Your home is a place to live; it should be your
haven.
 A house is a long-term investment asset. Do not continue to drain
the equity you are building.
 You could be paying more than your home's worth if you
refinance or take out a second or third mortgage.
3.9.2 Investing Wisely
1.Diversify your portfolio. Trying to get the right mix of stocks, bonds,
and cash is tricky. The best mix is what you are comfortable with.
 It is a questionnaire that helps with your risk tolerance and
financial needs. Once you get that perfect mix, stick with it.
Refrain from changing it drastically besides the occasional
tweaking.
 Don’t let the financial media outlet influence your portfolio. Be
confident with your combination; don’t let your emotions dictate
 your strategy. This won’t help protect you from short-term loss,
but it will help limit the impact of a financial crisis and capitalize
on the recovery.
 Putting all your money in stocks can be dangerous during a crisis;
this can cause your assets to decline drastically.
 A ratio of stocks/bonds will determine your loss impact
percentage. Having a higher percentage of bonds will lessen the
blow on your portfolio.
2.Don't be averse to taking some risk. When investing in stocks, you
are automatically taking risks. Stocks are highly volatile; they can be up
one day but low on another. During a financial crisis, partaking in stocks
can be highly risky. The stocks fell greatly during the market crash of
2008 and a lot of people sold off everything. If these people rode out
the market crisis, they would have benefited from the recovery, which
most stocks increased after they stabilized. Not partaking in risk will
result in lost opportunity.
 Taking risks can pay off in the long run. Investing just a little
amount of money during a crisis can give you a handsome return
when the market stabilizes.
3.Be calm and confident. It is normal for a person to be frightened by a
financial crisis. Markets plunge fast and you are stuck finding a solution.
During these times, a person needs to be rational. To become rational,
you must be confident and calm during a calamity. A financial crisis can
take time to recover but during those times your emotions can’t be
influenced by it.
 The best mindset to be in is a future-oriented mindset. Think
about the stuff you do now that effects your future goals. You
can find happiness by looking forward to something with a future
focus. An example is when you keep a plunging stock and waiting
it out until the market stabilizes, which then leads the stock to
recover and possibly increase, giving you a good return.
 Most people tend to lead with their emotions, which can hurt
long-term goals. On the other hand, being rational during a crisis
can help lessen a tense situation.
4.Be aware that markets tend to overreact. The purpose of the
behavioral finance field is to identify and understand why people make
certain financial decisions. An economic crisis is inevitable, and markets
tend to always bounce back. Behavioral finance shows that people
follow the herd. Basically, people tend to act irrationally and panic.
People who are calm and confident capitalize on these events
 The market will fall drastically over a period of time. History
shows that the market will recover stronger.

5.Don't take a quick exit. Taking a quick exit during a financial crisis can
be more harmful than the crisis because you can lose on valuable
assets. An example is when the market value of General Mills fell by
one-third in the middle of the crash in 2009. A lot of people sold off,
but at the end of 2009 General Mills recovered and grew 50% from its
pre-collapsed peak. Some stocks can increase more but a lot of stocks
don’t increase that much, but they mostly recover from a crisis. When
you understand the situation, you can see that most stocks are a
bargain to buy. Capitalizing on this opportunity will give you a great
return in the long run.[9]
 Most people like to sell their assets at low prices. Usually, prices
will bounce back up after the calamity. Hang in there.

6.Invest in the stock market. People tend to lose hope in the stock

market. During a crisis, you only see the lows. Yet it is tough to hold out
there is some optimism. Trends help shed some light during a calamity.
History always shows they're ups and downs. It takes timing to actually
capitalize on a possible profit. This can be very difficult which is why a
diverse portfolio can help establish a beneficial profit
 During a time of crisis, stock prices can plunge but can increase
drastically when markets stabilize. Essentially this provides an
opportunity for buying stocks at a discounted price. Be patient
with these stocks. It can take time for the market to recover.
7.Take advantage of the housing market. During a financial depression,
the housing market often sees a collapse in prices. When the housing
market bubble burst, a lot of people went under because they couldn’t
afford their mortgages. Home buyers and investors took advantage and
bought these assets at an extremely low price. If you can afford to
invest, then it is great to invest in the real estate market.
 If you have the funds and want to buy a home, it is smart to
purchase them during a housing depression

3.10 PUSHING NEW IDEAS

Crisis prompts us to think differently
Something is going on here that is clearly not about having lots of
resources – instead, it's often the shortage of them that forces a
different mindset. It's also about roadblocks – the obvious way ahead is
impassable, and so we need to find a new route. Crisis triggers a
different kind of search, one with several important characteristics:
 Ends, not means, drive the process – the presence of a
challenging vision compels innovation, even if the ways of
reaching the goal are unclear
 Extensive search – because the normal pathways may be blocked
the search for solutions pushes out into new and unfamiliar
territory
  Reframing – being able to see the problem from a fresh
perspective
 Creatively combining – improvising solutions from what is
available, often in novel configurations
 Experimental learning - improvising and building on what
emerges, early prototyping, fast intelligent failure
 Small, imperfect steps matter - Tolerance of imperfection and
incremental continuous improvement towards an optimal
solution how to use crisis as a way of triggering radical innovation
So how might we use some of these insights and construct a toolkit to
help our organization use crisis as a way of triggering radical
innovation?
Here are five possible pathways to explore:
1. Build a compelling vision – a familiar theme in change
management is the role played by burning platforms. They focus
the mind wonderfully on the need to change and the direction we
should take.
Of course, the trouble with burning platforms is that they are hot;
the trick is to avoid getting burnt. This is where simulations and
thought experiments can play a role, creating a compelling vision
to focus attention while still giving us room to explore.One way of
doing this is through the use of "futures" techniques like scenario
 planning. Scenarios are rich narratives in which we can safely
explore challenges and work out our responses. Shell's pioneering
use of scenario planning helped the company think the
unthinkable and prepare for it in the context of major oil price
shocks.
And there's a famous paper describing how Hyundai used
"crisis construction" as a tool for breaking the dominant and
comfortable thinking pattern within its automotive division.
Former General Electric CEO Jack Welch's renowned challenge
given to his divisional managers when trying to get them to come
up with radical innovations around an internet strategy offered a
powerful version of this approach. He simply asked them to think
like entrepreneurs looking to "destroy your business!"
2. Reframing offers another valuable tool – seeing the problem
through different eyes, and redefining it in ways that open up new
directions. Entrepreneurs are skilled at this, looking at an existing
business model and figuring out ways to upset the apple cart. Not
for nothing did Joseph Schumpeter, the godfather of innovation
studies, put "creative destruction" at the center of his thinking.
His gales have blown through an uncomfortably large list of
sectors with disruptive results – think low-cost airlines, music
distribution, city mobility, or accommodation, for example.
 Reframing for established organizations often means letting go of
your past and leaving behind historical models that have served
you well. Take the imaging industry – one which certainly
experienced a crisis (= turning point) with the arrival of digital
photography. Kodak's well-documented story is one of an
organization incapable of letting go and reframing fast enough,
despite having some powerful cards, including the first digital
camera and a slew of patents around the technology in its hands.
By contrast, Fujifilm made a more successful transition, using its
new eyes to see where else its core knowledge base might be
deployed. Coating surfaces with precision at micro-scale is a
valuable capability in fields like cosmetics and healthcare, sectors
in which Fujifilm has become a significant player.
3. Creatively combine – try reusing elements from one place in a
different context. Bricolage is a phrase used to describe how
entrepreneurs make use of anything available to them to create
new solutions – very much what our passengers on the "Phoenix"
did. This "scrapheap challenge" style of flexible thinking underpins
many examples of "frugal innovation," an approach that looks to
simplify and combine as a source of innovation.
4. Experiment and fail – Innovation is like making omelettes, you
can't do it without breaking eggs. Organizations like Pixar with a
reputation for repeating the innovation trick don't do so by
accident – they are built on a culture of experiment. Successful
entrepreneurship involves a strong element of play. But it also
requires a safe environment – a playground. That's where the idea
of "innovation laboratories" comes in.
A lab is somewhere where controlled experimentation can
happen, risks can be taken, and intelligent failure can operate.
Innovation labs have become increasingly popular, but there is a
risk that many of these are little more than a trendy environment,
some soft cushions and a slogan. To make them work requires
appropriate facilities, methodologies, and catalytic facilitation.
We're only now beginning to understand the key characteristics of
such powerful innovation spaces.
5. Prototype – one key role which labs play is to provide
environments in which different players can gather together
around prototypes. Prototypes are essentially boundary objects,
making ideas visible in their early half-formed state and providing
an opportunity for different people to shape and adapt them.
And a powerful source of such prototyping input comes from
users; research shows that users offer a rich source of early-stage
 innovation ideas. For many of them, the frustrations of their
situation – their "crises"' – drives them to create early prototypes,
which can provide the basis for developing radical solutions.
Similarly, finding "extreme users" who try to solve problems
under crisis conditions can offer some powerful new insights into
mainstream markets. Extreme users must be active experimenters
who are tolerant of failure because that's the way they learn
about what might work.

3.11 EMPOWERMENT
How to Contain the Chaos and Empower Your Employees During a Crisis
When dealing with a crisis, a leader’s role is largely to guide
others through it. Good leaders understand that everyone responds to
crisis differently and know that they must be prepared for the myriad
ways people may react when faced with tragedy.
Tragedies often trigger additional tragedies. When under the
influence of the shock of traumatic stress, people and organizations
often make errors in judgment that lead to additional losses. Rash high-
risk decisions and behaviors, precipitous resignations, hostile blaming,
drunk driving charges, violence at home and work, and increased
suicide risk are examples of how traumatized people can make a bad
situation worse. 
 When people are shocked by a tragedy, immediate chemical and
neuro-psychological adjustments take place to address the present
threat in one of three ways: Fight, Flight, or Freeze. Whereas these
responses can have short-term survival value in the midst of a crisis,
they often do not translate well to productivity in today’s work
environments.
Consider these reactions in terms of their potential impacts upon
productivity and returning to work:
 Fight
Amidst a perceived threat, people immediately try to make sense of the
incident in an attempt to gain some sense of control over it.
Unfortunately, these decisions tend to be impulsive, extreme and self-
protective. Conditions are ripe for hostile blame and the resultant
allegations need not be accurate to be destructive.

 As people revert to primal defenses, risk of workplace violence

and suicide increase.
 Self-blame and other-directed blame impair productivity,
teamwork and morale.
 Frustration directed at or witnessed by customers damages
service delivery and organizational reputation.
  Vengeful litigation and corporate disparagement increase in
likelihood.
 Flight
Avoidance behavior is characteristic of acute traumatic stress. Impacted
employees may seek to avoid any stimuli associated with the incident.
This can include avoidance of the worksite, co-workers, tasks associated
with the tragedy, etc. Some withdraw from co-workers because of fear
that those conversations will produce emotional vulnerability.

 Absenteeism, especially when unplanned, increases replacement

costs and slows productivity targeted at deadlines.
 Attrition increases recruitment and training costs plus leads to
loss of intellectual and relational capital.
 Distancing inhibits teamwork and the exchange of necessary
communication.
 Freeze
Following traumatic events, people often report feeling numbly
immobilized. For a period of time, many experience difficulty thinking
abstractly, focusing and multi-tasking. Some express this reaction as a
desire to “remain invisible.”

 Excessive “hunkering down” produces ineffective, indecisive

results.
  Extended inaction decreases likelihood of employees ever
returning to work, resulting in disability and workers
compensation claims.
Like the presence of police tape at a crime scene or blockades at a
highway traffic accident, good crisis management quickly establishes a
perimeter in an attempt to contain the crisis. Leaders need to tactically
snatch operational control to “stop the skid” and are likely well trained
in how to do so. They may not be as well trained in how to contain
psychological skids, however. Trust will likely be in jeopardy but can be
restored when leaders visibly demonstrate a rare combination of both
competence and compassion. This combination is not easy to deliver
simultaneously – especially when the leader may also be impacted by
the tragedy. Often, leaders’ own emotional reactions influence them
toward appearing either just competent or just compassionate.  Order,
calm and safety are restored when people are assured that 1) their
leaders are capable of dealing with the issue and 2) will do so in a way
that cares about them personally. Fear and rage can be contagious. So
is calm.
Chaos is reduced when people are led by quick, simple movement
back to what they can understand and that produces a sense of safety.
This sense of order is achieved via:
  Meaningful information. Communicate. Communicate.
Communicate. Keep it simple. Make it practical. Focus upon
immediate solutions. Repeat it.
 Resolution of a familiar schedule. Individuals and especially
groups function best when natural rhythms kick back in. Routine.
No surprises. One foot in front of the other just like yesterday.
 Successful completion of familiar tasks. The powerlessness that
accompanies tragedy is fearsome in and of itself. A sense of
personal and group efficacy delivers increased calm. Direct people
toward what they do have control over to reduce panic regarding
what they do not. Focus them upon what they CAN do to
eliminate paralysis over what they cannot. Sometimes this activity
needs to be adapted so it’s not too challenging, but even
completing concrete, simple tasks creates momentum for
resuming full function.
Effective crisis leadership includes emphasis upon transition to a
future focus and next steps. Response that compassionately
acknowledges the impact of the incident and communicates pertinent
information is foundational but not enough. People derive a healthy
sense of order and efficacy when gently but decisively steered away
from reactive decisions toward routine, concrete, productive tasks.
Doing so communicates a hopeful expectation of recovery that
empowers and is likely to be internalized by them. Healthy, life-giving
control mitigates anger and anxiety and allows natural resilience to
occur.