Organizational Crisis

- Defined as any sudden and unexpected event leading to major unrest at the workplace.
- Any emergency situation which disturbs the employees and leads to instability in the
organization
- Affects an individual, group, organization, or society as a whole.

Four ways people process information during a crisis

1. Simplify messages (use simple messages)

2. Holding onto current beliefs (messages should come from a credible source)
3. Look for additional information and opinions (use consistent messages)
4. Believing the first message (release accurate messages as soon as possible)

Simple, credible, consistent, accurate

The mental States in a Crisis

-a wide range of emotions could occur in the midst of a crisis

-psychological barrier could interfere with cooperation and response from the public

Communicator (ways of mitigation)

- Acknowledging feelings in words, expressing empathy, and being honest.

1. Uncertainty - (honesty) Tell them:

What you know. What you don’t know. What process you are using to get answers.

2. Fear, Anxiety, and Dread - (empathy)

Fear is an important psychological consideration in the response to a threat.

3. Hopelessness and Helplessness - avoidance is vital in communicating objectively in a

crisis.
Hopelessness is the feeling that nothing can be done by anyone to make the situation better.

Helplessness is the feeling that people have that they, themselves, have no power to improve
their situation or protect themselves. (may withdraw mentally/physically)

4. Denial - refers to the act of refusing to acknowledge either imminent harm or harm that
has already occurred.

Characteristics of a Crisis
● a sequence of sudden disturbing events harming the organization.
● generally arises on short notice.
 ● triggers a feeling of fear and threat amongst the individuals.

Types of Crisis

1. Natural Crisis - Disturbances in the environment and nature lead to natural crises. Such
events are generally beyond the control of human beings.
2. Technological Crisis - crisis arises as a result of failure in technology.
3. Confrontation Crisis - arise when employees fight amongst themselves.
4. Crisis of Malevolence - when some notorious employees take the help of criminal
activities and extreme steps to fulfill their demands.
5. Crisis of Organizational Misdeeds - when management makes certain decisions
knowing the harmful consequences of the same towards the stakeholders and external
parties.

1. Crisis of Skewed Management Values - arises when the business gives

more importance to revenue over its functioning and its commitment to customers or employees
or to the world
2. Crisis of Deception - a result of concealment of material information from the
management or t he consumers by the management

3. Crisis of Management misconduct - a result of illegal activities taken by the

management for achieving its ends or achieving the personal ends of those in power

6. Crisis due to workplace violence - arises when employees are indulged in violent acts
such as beating employees, superiors in the office premises itself.
7. Crisis due to rumors - Spreading false rumors about the organization and brand leads
to crisis. Employees must not spread anything which would tarnish the image of their
organization.
8. The bankruptcy of Financial Crisis - business not having funds to pay its dues such as
paying dividends, interests, making repayments of loans, etc.
9. Sudden Crisis- arise on short notice and beyond anyone’s control.
10. Smoldering Crisis - Neglecting minor issues, in the beginning, lead to a smoldering
crisis later.

Stages of Crisis

1. Prodromal Stage (pre-crisis/precursor) - usually bring it to the attention of the

supervisor; not yet visible to the general public.
2. Acute Stage - becomes visible outside the organization.
3. Chronic Stage - longest of the four
4. Resolution Stage - return to normal