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

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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.

STUDENT’S 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

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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.

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CHAPTERS

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ACKNOWLEDGEMENTS EXECUTIVE SUMMARY CHAPTER 1 INTRODUCTION TO CRISIS MANAGEMENT
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NEED OF STUDY OBJECTIVES OF STUDY PERIOD OF STUDY RESEARCH METHODOLOGY

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CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5

TYPES OF CRISIS MANAGEMENT CRISIS LEADERSHIP CASE STUDIES CONCLUSION BIBLOGRAPHY

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CHAPTER-1 INTRODUCTION TO CRISIS MANAGEMENT 1.1 1.2 1.3 1.4 NEED OF THE STUDY OBJECTIVES OF THE STUDY PERIOD OF THE STUDY RESEARCH METHODOLOGY

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the event could more accurately be described as a failure or incident. the full gamut of disasters comes to mind. (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. with a distinct possibility for an undesirable outcome." Therefore the fourth defining quality is the need for change. a product safety issue. fires. For the purpose of this book. and (c) a short decision time. examples of a crisis can include when an organization experiences a product failure. which involves assessing potential threats and finding the best ways to avoid those threats. a product market-shift. an incident that results in a poor image or negative reputation. Obviously. or the general public. etc. product tampering.INTRODUCTION TO CRISIS MANAGEMENT What Is a Crisis? In discussing the development of a Crisis Management Plan. floods. it could damage the bottom line. that is. If change is not needed. Crisis management is the process by which an organization deals with a major unpredictable event that threatens to harm the organization. an international incident that negatively affects the organization. This undesirable outcome could interfere with the normal operations of the organization. Three elements are common to most definitions of crisis: (a) a threat to the organization. its stakeholders. It also means an opportunity. one should start by clarifying what a crisis is. In contrast to risk management. In addition. or it could cause close media or government scrutiny.) Keep in mind that crisis does not only mean danger. tornadoes. bombings. and a financial problem – especially a fuzzy accounting problem. (b) the element of surprise. earthquakes. it could jeopardize the positive public image. a "crisis" is an unstable time for an organization. crisis management involves 6 . Venette] argues that "crisis is a process of transformation where the old system can no longer be maintained.

The organization and communication involved in responding to a crisis in a timely fashion makes for a challenge in businesses. moving operations to another site). There must be open and consistent communication throughout the hierarchy to contribute to a successful crisis communication process. Crisis management is occasionally referred to as incident management.g. 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. assess. putting the fire out) and the longer term recovery and restoration phases (e. The related terms emergency management and business continuity management focus respectively on the prompt but short lived "first aid" type of response (e. Crisis management consists of: • • • Methods used to respond to both the reality and perception of crises. and cope with a serious situation. Crisis management methods of a business or an organization are called Crisis Management Plan. It is a discipline within the broader context of management consisting of skills and techniques required to identify. understand.g.dealing with threats after they have occurred. The credibility and reputation of organizations is heavily influenced by the perception of their responses during crisis situations. 7 . especially from the moment it first occurs to the point that recovery procedures start. Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms. although several industry specialists such as Peter Power argue that the term crisis management is more accurate. Crisis is also a facet of risk management. Communication that occurs within the response phase of emergency management scenarios.

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

typically natural disasters considered as'acts of God. 3.[4][5] Example: 2004 Indian Ocean earthquake (Tsunami) Technological crises Technological crises are caused by human application of science and technology. storms. tidal waves. floods. volcanic eruptions. tornadoes and hurricanes. Some technological crises occur when 9 . 7. but crises can be clustered. and droughts that threaten life. 6.' are such environmental phenomena as earthquakes. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Lerbinger categorized seven types of crises 1. property.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. landslides. 4.CHAPTER 2 2. 2. and the environment itself.Potential crises are enormous. 5. Natural disaster Technological crises Confrontation Malevolence Crisis of skewed management value Crisis of deception Crisis of management misconduct Natural crises Natural crises.

kidnapping. Exxon Valdez oil spill Confrontation crises Confrontation crises occur when discontented individuals and/or groups fight businesses. sit-ins. or economic system. and other types are picketing. and oil spills. country. the crisis is categorized as megadamage. The common type of confrontation crises is boycotts. ultimatums to those in authority. and resisting or disobeying police. blockade or occupation of buildings. and various interest groups to win acceptance of their demands and expectations. 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. perhaps with the aim of destabilizing or destroying it. government. Samples include software failures. terrorism. malicious rumors. Sample crises include product tampering. industrial accidents. or seeking gain from. Example: Rainbow/PUSH’s (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.human error causes disruptions (Human breakdowns). Lerbinger specified three different types of crises of organizational misdeeds: crises of 1 0 . Examples: Chernobyl disaster. a company. and espionage. 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.

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. and crises of management misconduct. employees. Example: Dow Corning’s 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.skewed management values. and the community. 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. 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: DuPont’s Lycra 1 1 . crises of deception.

Example: Procter & Gamble's Logo controversy 1 2 . Sample is linking the organization to radical groups or stories that their products are contaminated.Rumors False information about an organization or its products creates crises hurting the organization’s reputation.

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

capability. 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. Perspective-taking: the ability to consider another person's or group's point of view. James's research demonstrates how leadership competencies of integrity. 2. but do not always. 3. financial. 4. Organizations such as the Red Cross's primary mission is to prepare for and prevent the escalation of crisis events. 1. of what occurs. and transparency impact the trust-building process. 1 4 .events erode public trust in leadership. retrospectively. safety. and other threats to firm survival. 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. mutual respect. 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. sense early warning signals (red flags) that suggest the possibility of a crisis. 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. positive intent. and move into the business recovery phase. the goal of crisis containment and damage control is to limit the reputational. The detection stages of a crisis include: Sense-making: represents an attempt to create order and make sense.

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. and technology resources needed to keep the organization running). 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 . Crisis handlers not only must engage in continuity planning (determining the people. Learning In the wake of a crisis. financial.Business recovery When crisis hits. but will also actively pursue organizational resilience.a leadership challenge 1 5 .

product recall or natural calamity. Leadership framework for crisis management A leader must institutionalize the process of crisis management to anticipate. First step in doing so starts with leader setting the tone by clarifying the goals and purpose of crisis management plan. prepare and mitigate an impending crisis. for identifying all possible crises that the company or any of its units may face and develop. To ensure an effective crisis management mechanism leadership support and involvement is absolutely essential. This demonstrates leadership’s commitment and promotes an enabling environment. plans. Crisis management is closely linked to public relations where company’s image and pride are at stake. Second step in the process is to identify a core crisis management team. Crisis may hit an organization in the shape of terrorist attack. which provides definitions for generally used terms and identifies different levels of crisis in the organization. industrial accidents. roles and responsibility for preparing and mitigating each of the crises. which essentially are based on the philosophy and values of the organization. Leadership should help his top management team draft the crisis management policy. The role of 1 6 .Crisis management of late has become an important component of managing the business. In the current day situation no business is immune to crisis.

It is through such response and follow-up that the company and the leader emerge from the crisis with enhanced image and reputation. the then 1 7 . It is organizational values and leader’s belief that determine the organizational response to crisis on hand. 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. as usually crises are characterized by that dreaded element called surprise. 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. Next step for leadership is to ensure effective and elaborate communication strategy and infrastructure even in the case of crisis / emergency / disaster. Meticulously designed crisis management plans might have been crafted and laborious drills might have been conducted to ascertain high levels of general preparedness. Crisis resolution . so that timely and consistent communication with internal and external stakeholders / partners is maintained at all times. 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. so a strong emphasis on crisis resolution is part of crisis management. James Bruke. marketplace pressures etc.the ultimate test This generally is not sufficient. process. Classic case cited for organizational response and successful crisis management is how Johnson & Johnson handled Tylenol crisis in early eighties. Actions emanating from common understanding of organizational values have everyone in the company wedded to the cause. location. 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.leadership at this stage is empowering the core team for studying and analyzing crisis by various attributes such as industry.

CEO. leadership is about “how to be” rather than “how and what to do”. managing them. 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. led his team based on the direction provided by the J&J credo which places the company’s responsibility to customers above that of towards other stakeholders such as employees and shareholders. 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. The challenge of a crisis is an ultimate test of leader’s character. The figure above shows how the cycle of identifying crises. A trigger for change Anticipating crisis is a matter of strategic planning and risk management. 1 8 . But when confronted with crisis. but each crisis that manifests itself. Through all the preparedness leaders clarify "how and what to do". must be dealt with adeptly by leaders.

coli infection.CHAPTER 4 CASE STUDIES EXAMPLES OF SUCESSFUL CRISIS MANAGEMENT Tylenol (Johnson and Johnson) In the fall of 1982. At week's end. Odwalla Foods When Odwalla's apple juice was thought to be the cause of an outbreak of E. appeared in television ads and at news conferences informing consumers of the company's actions. Johnson & Johnson recalled and destroyed 31 million capsules at a cost of $100 million. Johnson & Johnson was ready. when another bottle of tainted Tylenol was discovered in a store. Tamper-resistant packaging was rapidly introduced. In October 1996. Colorado and 1 9 . an outbreak of E. 8 after taking cyanide-laced Tylenol capsules. the company lost a third of its market value. coli bacteria in Washington state. killing seven people. a murderer added 65 milligrams of cyanide to some Tylenol capsules on store shelves. Responding swiftly and smoothly to the new crisis. California. The affable CEO. James Burke. including three in one family. and Tylenol sales swiftly bounced back to near pre-crisis levels. established a toll-free telephone hot-line to answer consumer questions and offered refunds or exchanges to customers who had purchased Tylenol capsules. it immediately and indefinitely canceled all television commercials for Tylenol. 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. Johnson & Johnson was again struck by a similar crisis in 1986 when a New York woman died on Feb.

Though upset by the situation. coli poisoning. Odwalla conferred with the FDA and Washington state health officials. They told each to check their e-mail for a news release outlining the recalls. which Pepsi made public and then followed with their first video news release. Forty-nine cases were reported. The Mattel CEO Robert Eckert did 14 TV interviews on a Tuesday in August and about 20 calls with individual reporters. detailed symptoms of E. has been plagued with more than 28 product recalls and in Summer of 2007. faced two product recall in two weeks. At Mattel. recall announcement by federal officials. By the week's end.m. including the death of a small child. established a schedule of daily press briefings. they were appreciative of the company's response.. 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. showing the production process to demonstrate that such tampering was impossible within2their factories. expressed remorse. Odwalla then developed through the help of consultants . Mattel had responded to more than 300 media inquiries in the U. and took responsibility for anyone harmed by their products. earning high marks from consumers and retailers. Mattel Mattel Inc.S. and explained what consumers should do with any affected products.effective thermal processes that would not harm the products' flavors when production resumed. the toy maker. This led to an arrest. The company "did everything it could to get its message out. A second video news 0 . All of these steps were communicated through close relations with the media and through full-page newspaper ads. a public relations staff of 16 was set to call reporters at the 40 biggest media outlets. sent out press releases which announced the recall. just after the 7 a. concern and apology. Within 24 hours. amongst problems with exports from China.British Columbia was traced to unpasteurized apple juice manufactured by natural juice maker Odwalla Inc. invited them to a teleconference call with executives and scheduled TV appearances or phone conversations with Mattel's chief executive. alone.

The Bhopal incident illustrates the difficulty in consistently 2 1 . Symbolic intervention can be counter productive. This made public communications effective throughout the crisis.release displayed the man arrested. According to Union Carbide’s own chronology of the incident (2006). a day after the crisis Union Carbide’s 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. The corporation was completely open with the public throughout. during. EXAMPLES OF UNSUCESSFUL CRISISMANAGEMENT Bhopal The Bhopal disaster in which poor communication before. the corporation ran a series of special campaigns designed to thank the public for standing by the corporation. local residents were not sure how to react to warnings of potential threats from the Union Carbide plant. After the crisis had been resolved. along with coupons for further compensation. and every employee of Pepsi was kept aware of the details. a crisis management strategy can help upper management make more calculated decisions in how they should respond to disaster scenarios. This case served as a design for how to handle other crisis situations. The company simultaneously publicly worked with the FDA during the crisis. illustrates the importance of incorporating cross-cultural communication in crisis management plans. Operating manuals printed only in English is an extreme example of mismanagement but indicative of systemic barriers to information diffusion. and after the crisis cost thousands of lives. According to American University’s Trade Environmental Database Case Studies (1997). A third video news release showed surveillance from a convenience store where a woman was caught replicating the tampering incident.

radial ATX and ATX II tire treads were separating from the tire core—leading to grisly. Exxon On March 24. at times. spectacular crashes—Bridgestone/Firestone recalled 6. Exxon. These tires were mostly used on the Ford Explorer. the CEO. 2 2 . The two companies’ committed three major blunders early on. 1989. First. In response to claims that their 15-inch Wilderness AT. the company had neither a communication plan nor a communication team in place to handle the event—in fact. fowl. did not become an active part of the public relations effort and actually shunned public involvement. even laying blame. numerous fishermen. a tanker belonging to the Exxon Corporation ran aground in the Prince William Sound in Alaska. say crisis experts. especially Native Americans. Hundreds of miles of coastline were polluted and salmon spawning runs disrupted. the world's top-selling sport utility vehicle (SUV). by contrast. Lawrence Rawl.applying management standards to multi-national operations and the blame shifting that often results from the lack of a clear management plan. on other groups such as the Coast Guard. did not react quickly in terms of dealing with the media and the public. and sea otters.5 million tires. Ford and Firestone Tire and Rubber Company The Ford-Firestone Tire and Rubber Company dispute transpired in August 2000. and the company acted defensively in its response to its publics. killing thousands of fish. Exxon established its media center in Valdez. the company did not appoint a public relations manager to its management team until 1993. lost their livelihoods. 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 deaths—until they got called to Washington to testify before Congress. a location too small and too remote to handle the onslaught of media attention. they blamed consumers for not inflating their tires properly. These responses also happened within days of the incident. 4 years after the incident. The Exxon Valdez spilled millions of gallons of crude oil into the waters off Valdez.

Government of India Ministry of Agricultu re (Department of Agriculture & Cooperation) Drought Management Division 2 3 .

2 4 .Periodicity of occurrence of Drought in various parts of the country.

The crisis recovery model based upon past experiences. to minimize adverse impact and on maintaining individual sovereign of The goal of the crisis at and the community credibility. helps in reducing the time taken to mobilize resources for an effective response. public. property and environment. Being prepared to respond to a Crisis situation. Evolving a CMP…. which is pressed into action in the event of a crisis situation to minimise damages to life. contingency 2 5 . crisis management is to facilitate over all management situation large. Crisis Management Plan refers to the actionable programme. on identified priorities and trigger-points with appropriate response matrix viz. enabling us to return to normal business operations more quickly.1. It also helps us to maintain cordial relations among stakeholders. controlling and strengthening the Government’s credibility with the 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 goals and in involved crisis. Thus. 2 6 . but has been developed to address crisis that have the potential for a much greater impact on the Nation. responders (Ministries / Departments. 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. a 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.action plans of different agencies could be known as Crisis Management Plan (CMP). Organisations communication process for quickly notifying the Public in the event of a The Plan outlined in this document does not replace the emergency procedures or contingency action plans already drawn by different agencies. Despite the of crisis crisis fact that care has been taken to include all aspects may be occasions when an entirely management in the document. in The identified priorities of CMP is to clarify responsibilities of various and individuals) and putting together a defining the roles and crisis management. it cannot be negated that still there new and unforeseen situation could arise during the same type of crisis.

  2 7 .

issue.arid zone areas and a rare to very rare phenomenon in dry humid and humid areas. in agriculture and sector. a common phenomenon in semi. or several It occurs is a climatic feature which stems from the lack of rainfall over an extended years resulting in severe in all climatic almost Drought normal phenomenon in arid It is zone areas. In a large country like India having many agro. may not necessarily have any serious impact if departure from normal is not significant and the rainfall is sufficient enough to sustain the soil moisture. drought is not considered as a crisis of urgent nature but considered as a management is a natural. Hydrological Drought. its impact on the community at large can be minimized. 2 8 . a natural disaster. temperature etc. the which droughts. Unlike below primarily Meteorological. Drought connotes a situation of water shortage for human. recurring Drought period of time (i. and Drought the is classified as the -19% Hydrological Agricultural connotes Agricultural.e. a season shortage of water resources).2. cattle and agriculture consumption resulting in economic losses.climatic zones. which can be anticipated and also expected on the basis of rainfall pattern. Drought – a Crisis Generally. The documents on drought management during droughts of 1987 and 2002 are testimony to this fact. Meteorological specific rainfall reduction of normal rainfall. though drought cannot be prevented totally. regions of the world.

as more than 73% of annual rainfall in the country is occupy 77.  A total of 68% of sown area is subject to drought in varying degrees. 9 . The available data on rainfall indicate on drought perspective that –  16% of the Country’s total area is drought prone and annually about 50 million people in the country are exposed to the crisis of drought.  35% of area receives rainfall between 750-mm . 85% is concentrated in 100-120 days (SW Monsoon)  33%of area receives less than 750-mm rainfall and is chronically drought prone.In India.6%).  Most of drought prone areas lie in the arid(37%) and sub-humid(21%) areas arid (19. However.  Annual Average Rainfall is 1160 mm in India.  21% area receives less than 750 mm rainfall (large area of Peninsular and Rajasthan)  Rainfall is erratic in 4 out2of 10 years.6% of its total land area of 329 million hectares. semiof the country that the next monsoon. Areas affected by drought needs to wait till received during the SW Monsoon season. drought essentially occurs due to failure of south-west monsoon (June – September).1125-mm and is drought prone.

 Irrigation Potential is 140 Million Ha (76 MHa Surface + 64 MHa Groundwater) 3 0 .

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 . urbanization. which have rapid onset. and (ii) Early warning indicators necessarily ambiguous because they may or may not culminate in a full-blown drought. rapid industrialization. for the following reasons: (i) Slow onset and prolonged course of droughts as against the other disasters. tsunami etc) or man-made disasters. cropping intensity and declining ground water level. natural calamities (like earthquakes. 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. Depletion of Ground water and limitation of surface water imply that not all net sown area is amenable to irrigation. Problems are likely to aggravate.  Net Result – Inevitability of Drought in Some Part or Other. and a limited in case of droughts are duration. cloudbursts. floods.  Per Capita Water availability is steadily declining due to increase in population. The necessarily mechanism differs for anticipating similar and managing droughts other from arrangements concerning disasters.

duration over a period of time. 3 2 .

In such situations the relief based management approach has to be launched to contain the impact of drought. 3 3 . Long ‘break’ activity of South-West Monsoon.) The risk management plan having early warning indicators in case of drought are ambiguous. it is to be understood that besides having a general risk management plan for handling drought with long. provide additional resources (food grains / financial assistance etc.State Government’s primary responsibil ity: The primary responsibility of managing drought (or any other natural disasters) is of the respective State Governments.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. iii) Insufficient rains during the month of July. as they may or may not culminate into a full-blown drought. Early indicators of Droughts… The following constitute ‘early warning indicators’: For Kharif (sowing June to August) i) ii) Delay in onset of South-West Monsoon. Thus. of disasters The and role of the Central Government is to supplement the efforts of the State Government in effective management to combat the situation.

iv) v) vi) vii) Rise in Price of fodder. v) Other Seasons For areas like Gujarat. Drying up sources of Rural Drinking Water Supply. many areas develop acute scarcity of Drinking Water. Marathwada and North Interior Karnataka the crucial period is March / April when due to chronic hydrological drought. iii) Fall in the level of Reservoirs compared to figures of the corresponding period iv) vi) in the ‘normal years’ – indication of poor recharge following SW Monsoon. 3 4 . Madhya Maharashtra. Increased deployment of water through tankers (For Tamil Nadu & Pondicherry the crucial period is North East Monsoon – October to December) stress. For Rabi (sowing November to January) i) Deficiency in closing figures for South-West Monsoon (30th September). ii) for Serious depletion in level of Ground Water compared to figures “normal years’. Indication of marked soil moisture Rise in price of fodder. Absence of rising trend in Reservoir Levels. Declining trend in progress of sowing over successive weeks compared to corresponding figures for “normal years”.

3.  constant monitoring droughtrelated characteristics  Drawing up of 3 5 . Outcom e of the Crisi Nil Identifie d Trigge r mechanis Nil (Rainfall is above +19% to 19% cumulatively for more than 4 weeks period through out the season ) Strategic Response Matrix / Action  Developing and Strengthening drought preparedness  assessing food and water requirements and resources. February rains in Kerala for plantation crops.For specific states and particular crops there are particular times in a year when progress of rains is of special significance e.g. magnitude. trigger mechanism and strategic response matrix). Crisis Management Framework It is the framework of crisis analysis aimed at of fundamental aspects of Crisis situation (Phases of identification crisis. Level Phases of Crisi s 1. outcome of crisis (impact). Normal Vulnerabilit y Magnitud e (area Zero .

(Sudde n CAP (Crop  Preparation CAP (Water ) CAP (Health ) of updated Contingency Crop Plan and its propagation through effective agro-advisory services  Propagation of short-term (Apr Jun) Aler t (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 water conservation measures. waterbudgeting. ) water crisis and heat wave. Incipien t.e.2.  Proper health advisories and ensuring availability of emergency medical services  Continuation of ongoing alternative employment generation programmes in drought affected / prone areas. 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 . 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. 2 1- Forecast of late onset of acceleration monsoon of demand coupled with of employcontinuing ment.

water. 3 7 .  Meeting of Crisis Management Group (CMG) to review and revitalise the role of concerned machineries. fodder and power. food.

GW & SW level is lower than previo us Effective role of Extension machinery and realising the objectives of Contingency Crop Plan. Advisory Note: Identify alternative sources when the town is in “Warning” period and the supply of water may be restricted to 70 lpcd instead of 135 lpcd  Judicial use of drinking water (restricted supply of water for basic requirement and alternative non-potable water for other purposes)  Meeting of CMG to review the action initiated by line Departments and affected State Governments and taking decision for movement of water and fodder from . Deficit Rainfall for more than two weeks. Acute water crisis. Moderat CAP e (Crop) CAP (Water) CAP (Health ) CAP (Food & PD)  (May – Mid July) (Rainfall is less than the normal rainfall and below 19% and the deficit continuesfor more than 3 – 6 weeks & Soil moisture.3. 34 Delayed onset of monsoon. water-budgeting by irrigation and Drinking Water Department.  Operationalising shortterm water conservation measures by municipal and district agencies.

4. checking up of inflation etc.  Early release of instalments under CRF and ensuring that the State Governments utilise it for initial emergency measures. 57 Deficit or No rainfall during the sowing period. enhancing PDS allocations. Dry spell for more than 4 weeks. establishing cattle camps. Midseason withdrawal of monsoon. movement of water and fodder through railways.  Enabling employment under NREGA as a part of supplementary employment and  . Advisory Note: In the ‘Emergency’ period. import of food grains to meet the gap between demand and supply. GW & SW Referring the issue to NCMC for taking up with Cabinet for taking certain vital decisions like deferment / rescheduling /fresh loan. Deficit rainfall in the range of 20% to -40%. Wilting of Crops due to shortage of water and continuing heat wave conditions. additional allocation of food grains. alternative employment generation programmes. Severe CAP (Crop) CAP (Water) CAP (Cattle Care) CAP (Health) CAP (EGP) CAP (Food & PD) (JUL –SEP) (Rainfall is less than the normal rainfall and below 25% and the deficit continue for more than – 6 weeks & Soil moisture. water may be supplied at 40 lpcd and non-potable water may be supplemented for other uses.

.  Strict Water conservation measures and monitoring the release of canal water for irrigation  Constitution of Central Team to visit to drought declared States. (Rainfall is less than the normal rainfall and below 25% and the deficit continue CAP (Water) CAP (Cattle Care) CAP (Social Sector) CAP (Energy Sector) CAP (Health) CAP (Food & PD) CAP (Labou r & Emplo y ment) (JUL–OCT)  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. Severe soil moisture deficit. No rainfall for more than 4-6 weeks in sown area. Midseason withdrawal. resulting in crop damage Severe shortage in availability of GW and SW.5 Acute (Potential Disaster) 710 Extreme (FULLY BLOWN DROUGHT) Early withdrawal of monsoon.  Assessment of damages and estimation of losses for release of funds from NCCF  Special assistance to farmers / dairy / poultry / fishery 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 .  Weekly CMG meeting and monitoring the progress of drought relief measures  Review of visit by Area Officers to the deficit rainfall States. Severe deficit of cumulative annual rainfall.

 CAP – Contingency Action Plan Note: Contingency Action Plans (SOP) Sector. NCCF / CRF Sector) benefits 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 & Employment)  Simultaneous documentation  Monitoring of the climate and ensuring CAP (Water) CAP alternative arrangements against relapse of the drought.6 Recovery (Post Disaster) >100 Mitigate d (OCT–JUN) Normal rainfall in Rabi and subsequen t seasons. Cattle Care.e. Food and (in respect of Crop. Health. Energy livelihood Security) – (To be prepared by concerned Central Government Ministries / Departments) . Water. Easing of soil moisture stress situation Farming /Rural communit y’s livelihood requireme nts Returning  Rescheduling of farm loans  Early release of input subsidy  Payment of losses in time to (Cattle Care) the beneficiaries i. agriCAP (Energy insurance.

mining) Power Production (Hydro electric) Recreation (Parks.) Potential Actions           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 4.Specific Attention to Water User Groups: Water User Groups Public Water Suppliers Municipal Waste Discharges Agriculture Industry (Infrastructure. fountains etc. Food processing including beverages. others(heavy industry. Strategic Activity Planner Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Activity 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 .

availability.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 Deficiency Forecast of Food insecurity Forecast of Cattle feed deficit Declaration of Drought Estimation Unsown area Crop Loss due to drought Potential Water deficit For irrigation For drinking Fodder requirement. additional demand Loss to AH/ Fisheries Loss to Energy Sector (fuel and hydroelectricity) .

Activity 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 the State) Cattle & animal welfare (Vet.) Cattle camp Encouraging of community welfare organizations for mitigation efforts and monitoring of Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May DROUGHT .

reuse of irrigation water. IMD Pune / State s State s State s State s State s State s State s Primary Secondar y MHA / NDMA State s State s State s State s State s Tertiary NCMC Dept. use of water of suboptimal quality Rain Water Harvesting & DAC DAC DAC State s State s DAC DAC State s MoWR / CGWB DAC . Agencies responsible for Identified Activities Activity Reviewing CMP Monitoring Rainfall Temperature Surface water level Ground Water level Monitoring of Agricultural Drought DAC IMD IMD IMD IMD Drought Research Unit. 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. of Agriculture and DAC DAC DAC DAC Assessment Drinking water availability Irrigation water availability Soil Moisture DWS & MoWR (CGWB) MoWR NRSA / IMD / MoWR (Irrigation Wing) Do AH&D D/o F&PD M/o Power / PNG DAC (Seeds & NRM Div) DAC / RD (LR) / MoWR MoWR (Irrigation Wing) DAC DAC DAC Fodder. Sprinkler and drip irrigation.5.

renovation and percolation of tanks.) MoWR / DWS D/o Food & PD D/o AHD DAC DAC DAC DAC DAC .Activity Ground Water Recharge in sanction Adjustment water /Water Pricing Monitoring of Water levels in Headworks such as Jackwells and Tubewells Judicial use of available water 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.charge of O&M State s MoWR DAC (Crops Division) State s MoWR State s CWC MoWR State s State s State s State s State s ICAR / DAC (Extn. evaporation from soil surface. Early Warning System (EWS) of Forecast Contingency Cropping of Crop Loss Forecast Forecast of Water Deficiency Forecast of Food Insecurity Forecast of Cattle feed deficit Primary State s State s ULB / Implementin g Agency Secondar y CGWB CWC Public Health Engineering Department / State Government Stat e Governmen ICAR / Directorate of Extensio n CWC Tertiary MoWR MoWR DAC ULB / Department in.) ICAR / DAC (Extn.

Fodder Water and movement Packaged / Bottled water Primary State s State s State s State s State s Secondar y DAC DAC DAC DoAHD&F Tertiary State s State s State s MoWR DWS DoAHD&F DAC DAC DAC State s States States States States States M/o Finance States States States States Power / PNG DAC ICAR M/o E&F DAC DAC States D/o Rural Development M/o WCD / SJ & E / RD D/o FPD DAC DAC DAC DAC DAC DAC DAC HLC / Finance States States Railways D/o DWS. 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. WCD. additional Loss to Energy Sector Drought Mitigation Propagation of Forecast through Extn. availability.Activity Declaration of Drought Estimation Normal Area Vs sown area Unsown area Crop Loss due to droughtAnimal Loss to Husbandry & Fisheries Sector Potential Water deficit For irrigation For drinking Fodder / cattle feed / poultry feed requirement. RD DAC DAC . SJ&E.

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 States States States Secondar y Power / PNG DoAHD DoAHD Panchayati Raj Tertiary DAC DAC DAC DAC States CGWB MoWR States CWC MoWR .

Nodal Officers Besides State Relief Commissioners and State Agriculture Secretaries. FAX. The issues to be decided by the Cabinet would be referred to NCMC for further necessary action by the Cabinet Secretariat. Government of India and got updated every month. e-mail. . Crisis Group Management There shall be a Crisis Management Group (CMG) for Drought Management as is defined in the Crisis Management Plan (National) to deal with various phases of drought.6. designation. the nodal officer nominated by the Department of Agriculture & Cooperation to coordinate with NCMC will be the Member-Secretary of CMG. the District Magistrate / Collector would be the head of the Crisis Management Group to deal the issue at sub-district / block / Taluk level. CMG under the Chairmanship of Additional Secretary & Central Drought Relief Commissioner would periodically review the drought preparedness. Joint Secretary (Drought Management). The composition of the CMG for Drought is at. 7. mobile number and address shall be maintained in the Drought Monitoring Cell (Control Room) of the Department of Agriculture & Cooperation. The list of nodal officers containing their name. At District level. line Departments / Ministries/ offices / agencies of the Central Government. At State level. take appropriate decisions and report the developments to the Agriculture Secretary and to National Crisis Management Committee (NCMC). a similar set up as envisaged for the Centre shall be made to review the crisis of drought. 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. telephone (office / residence).

the District Magistrate / Collector would be the nodal officer of the drought affected district. .At District level. who will be co-opted in the drought management spectrum at the time of acute crisis in their district.

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 .Conclusio n The aim of the CMP (Drought) is to help all stake holders to be more prepared and less vulnerable to drought. The strategic activity planner and identification of agencies responsible for managing the crisis is aimed at demarcation of the duties of respective personnel in the identified activity. This plan enables the officials who are responsible to focus their efforts on emerging crisis situations. which may require a unique response. It will also result in a timely and effective response by government agencies to reduce impacts during a drought crisis. As much as decisions taken in advance of a Crisis would make the remaining decisions are taken easily and go through the Crisis.

CHAPTER. As much as decisions taken in advance of a crisis would make the remaining decisions are taken easily and go through the crisis.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. 52 .

google.com 53 .indiangov.com www.com www.BIBLOGRAPHY www.wikipedia.com www.businessweek.