PsyCorp™

Malaysian Psychology Centre

Centre for Corporate Psychology
Centre of Excellence for
Rewarding Organisational Change

Keeping a cool head during crisis!

by
Dr. Edward Chan
Principal Consultant Psychologist
 What is Crisis?

An unstable situation of extreme danger

or difficulty.
Types of Crisis:
Financial: any crisis that reduces short-term
liquidity or cash flows, leads to bankruptcy
Public relations: negative publicity can kill a
company
Strategic: when new technology or changes
in business world make it hard for current
product/service to remain viable
Natural disasters/physical threats: fires,
hurricane, floods or any physical disaster
Examples of Crisis:
Sexual harassment allegations
Extortion threat
Security leak
Lawsuits
Discrimination allegations
Employee threats
Employee death or injury
Strike or work stoppage
Computer breach
Equipment malfunction
Disruption of phone, internet, or other services vital to business
Rumors that will damage company reputation
Whistle blowing
Cost of Crisis

Unmanaged or poorly prepared

crisis plan can ruin
organisation
Crisis & Stress
Crisis accumulate stress in organisation
In order to manage crisis well, organisation need
to keep organisational stress level low at all
times; before, during and after crisis's.
Crisis can push employees stress level once the
threshold especially for organisation with high
pre-existing stress level.
Stress at workplace
Stress is a major issue in the work place today – on both
professional and personal level.
If you have seen, or experienced, the signs of work stress, such as
low motivation, conflict, ill health and absenteeism, you will know
that unless managed effectively, stress will damage individual work
performance and consequently organizational success.

Signs and symptoms of excessive job and workplace stress

• Anxious, irritable, depressed
• Loss of interest in work
• Problems sleeping
• Fatigue
• Trouble concentrating
 COSTS OF STRESS TO THE
ORGANIZATION
INAPPROPRIATE LEVELS
OF PRESSURE

HIGH RATE OF
STAFF TURNOVER
INCREASED WORKLOAD
/ LOW MORALE

DIFFICULTIES IN
RECRUITING NEW
STAFF
COST OF STRESS
THE PERSONAL OR PSYCHOLOGICAL
Possible detrimental effects on health, mental &
emotional functioning, confidence and general well-
being.

THE SOCIAL AND INTERPERSONAL

Interpersonal relationships, teamwork, contribution
to the community & earning power are amongst the
social factors that can be damaged or destroyed by
stress.
 COST OF STRESS

THE ORGANIZATIONAL
Reduced productivity & efficiency, low sickness &
staff turnover rates etc.

THE PROFESSIONAL
Standards of practice & quality service can be
adversely affected. In the long run, it is not only staff
who suffer as a result of stress but also service users.
 The Stress Continuum
High Pressure S TRUGGLING
(inappropriate)
T ENSE

OPTIMUM
R EADY
E NERGISED

Low Pressure S TODGY (inappropriate)

S LEEPY

Source: Arroba and James (1987)

 THREE DIMENSIONS OF STRESS
• STRESSORS
- the situational factors that contribute to the experience
of stress.

• COPING METHODS
- the skills and strategies we develop as a means of coping
with life’s stresses and pressure.

• SUPPORT SYSTEMS
- the range of supports, both formal and informal, which
can be drawn upon.
COPING METHODS
Coping occurs at four levels:

•Removing the stressors from our lives.

•Not allowing ‘neutral’ events to become stressors.

•Developing a proficiency in dealing with situations we do

not wish to avoid.

•Seeking diversion from the pressure(s) or by relaxation.

 BREAKING THE STRESS
CYCLE

COGNITIVE

BEHAVIOUR EMOTION

PHYSIOLOGY
Critical Incident Management
Plan (CIMP)
“documented institutional plan designed to
maintain life safety and essential business
services during times of disruptions due to
incidents or events including, but not limited
to: workplace violence, accident, conflicts,
severe weather, utility interruptions,
telecommunications failures or other
unforeseen events”
Human & Psychological
Component of CIMP

The most unpredictable and difficult

component to manage
The most critical component to ensure
success of Critical Incident Management
Assessment & Development
Centre set up CIMP
Psychometric Tests
Crisis Stimulations & Interview
MBTI 2
EQ-i
MBTI 2
EQ-i
Employee Assistance Program
(EAP)
A Critical Incident & Organisational Stress
Management Tool
 WHAT IS AN EMPLOYEE
ASSISTANCE PROGRAM (EAP) ?

It is a confidential counselling service

that allows employees to discuss
their problems and concerns
in an understanding & professional
environment
Work/life balance Managing
depression

Managing conflict
Assertiveness or difficult
skills
behaviour

Personal Advice on alcohol

motivation & drug use/misuse

Managing stress EAP Caring for elderly

relatives

Time management Coping with

bereavement

Enhancing Coping with

communication
skills redundancy

Managing
Emotional effects
personal & family
of ill health
relationships
 HOW DOES EAP WORK?
• Short term counselling focus
• Call into the service for:
– arranging an in-person appointment
– a telephone consultation with a counsellor
– a personal crisis or urgent situation
– information or referral assistance
– clarification about the service
 EAP Services
i. On site counselling sessions
ii. Training Talks/Workshops :
- organizational & personal stress mgmt
- providing support to employees on stress
problems at work and at home
- monitoring stress sources
- managing problem situations
- developing stress coping skills
- trouble shooting employees stress problems
 EAP Services

iii. Telephone counseling

iv. Face to face counseling for

employees and family members
 EAP Services
v. Critical incident debriefing

vi. Post traumatic stress intervention

vii. Mediation
- Between management & employees
- Between employees
- Between organisation & client customer
- Between organisation & suppliers
Cost Savings of EAP

Try this formula to see how much you’re losing:

The National Institute of Mental Health says 5% of your
workforce is depressed. Each depressed worker costs a
company about $3,000.
(Total # of employees) X (.05) = The total number of depressed
people at your work
(Total depressed employees) X Annual loss per employee =
Total cost of lost production
For example: A company of 200 employees is estimated to lose
$30,000 a year because of depressed employees.
Statistics
As a result of EAP’s:
Illinois Bell reported savings of nearly 1/2 million
dollars in sickness disability alone.
The US Postal Service realized a net savings after
cost of over 1.75 million dollars.
ServiceMaster reported Workers Compensation
claims were reduced by 32.7% and the average cost
per claim was reduced from $3,600 to $1,550.
General Motors reported a 70% reduction in total
dollars paid out for medical benefits over a five year
period for a specified group of high-risk employees
The reality …
25% of your work force will face significant impairment due to
personal problems during the course of their employment.
Industry loses over 100 billion dollars annually to alcoholism and
another 16+ billion to drug abuse through lost days, poor work,
accidents and Workers Compensation claims.
85% of all reportable accidents are caused by employee distress.
Alcoholics are absent two to four times more often, have accidents
two to four times more frequently and were found to file four times
more grievances than their nonalcoholic counterparts.
Workplace violence is becoming commonplace. Even in small and
medium size employment settings one in six employees will face the
psychological consequences of being the victim of a violent crime.
In excess of 15% of the adult population exhibits some serious
symptoms of stress.
Conclusions
In today’s competitive and volatile business
environment, organisation who are prepared
for crisis have an unrivaled edge to succeed.

Your organisation cannot afford to not have a

crisis management program.
 Q&A
Malaysian Psychology Centre
Centre of Excellence for Personal & Corporate Growth
Psycorp™ Centre for Corporate Psychology
Psychometric Testing
Assessment & Development Centre Set Up
Organisational & Personal Stress Audit & Management
Employee’s Behaviour Risk Audit & Management
Conflict Management & Mediation
Emotional Intelligence Assessment & Development
Leadership & Performance Coaching & Consultation
Counseling Support for Employees & Family Members
Personal & Corporate Development Profiling
Behavioural & Attitudinal Change Consultation, Training & Supervision
Programmes
Personality, Working Styles, Employee-Organisation Fit, Aptitude,
Attitudinal & Career Interest Test for Recruitment & Professional
Development
Employer Employee Alignment Programme
Employees Assistance Programme
Work Life Balance Programme
 Thank you for your
participation! ☺
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