CRISIS

MANAGEMENT
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.
WHAT IS CRISIS MANAGEMENT?

 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.
 Due to the unpredictability of global events, organizations
must be able to cope with the potential for drastic changes
in the way they conduct business.
 Crisis management often requires decisions to be made
within a short time frame, and often after an event has
already taken place.
 In order to reduce uncertainty in the event of a crisis,
organizations often create a crisis management plan.
 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.
 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.
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.
Need of Crisis Management Plan
 Crisis management plans … 
 help you maintain your great reputation with customers,
competitors, and industry leaders during and after a crisis.
 improve the safety, health, and well-being of everyone who
works for and does business with your company.
 give you peace of mind as an employer and company —
you’ll be ready for any situation that comes your way.
 increase productivity during and after a crisis. Everyone will
know their role and function throughout a crisis so there’s
less downtime, more action, and quicker resolution.
How to Create a Crisis Management Plan?

1. Identify all possible types of crises.

2. Determine the impact of each type of crisis on your
business.
3. Consider the actions you’d need to take to resolve each
type of crisis.
4. Decide who will be involved in the actions you need to take
in each scenario.
5. Develop resolution plans for each type of crisis.
6. Train everyone who needs to be familiar with your plans.
7. Revisit and update your plans regularly and when
necessary
1. Identify all possible types of crises.
 creating a crisis management plan for your business is
to identify all possible types of crises that could
happen to your specific business.
 Financial crisis
 Personnel crisis
 Organizational crisis
 Technological crisis
 Natural crisis
2. Determine the impact of each type of crisis on
your business.
 Loss in sales
 Customer dissatisfaction
 Tarnished reputation
 Increase in expenses (to fix the issue at hand)
 Decrease in customer loyalty to your brand
3. Consider the actions you’d need to take to
resolve each type of crisis.
 Responsive crisis management
 Proactive crisis management
 Recovery crisis management
4. Decide who will be involved in the actions you
need to take in each scenario.
 it’s time to think about who will carry out the necessary
resolution plans and actions.
 This might include specific employees with expertise in
different areas of your business, HR, public relations, and
anyone else you see fit based on your specific situation.
 Depending on the type of crisis, you might also determine
you need the assistance of lawyers, consultants, or first
responders.
5. Develop resolution plans for each type of crisis.
 How long will it likely take to resolve the crisis?
 What tools and resources will you need?
 How many people, and which people, did you determine will
be involved?
 Will you need to address your customers directly?
 What is the cause of the crisis and how can you prevent it
from happening again (or from worsening?)
6. Train everyone who needs to be familiar with
your plans.
 Everyone involved in your crisis management plans should
be trained on the role they’re expected to play.
 You might choose to do this through meetings and
presentations, or bring in experts to chat with your
employees about how to manage their job functions during
a crisis.
7. Revisit and update your plans regularly and
when necessary.
 As your company grows, you might increase your number of
employees, open offices in new cities (or countries), or change
the structure of your business operations, there is need to revisit
and update your crisis management plans to ensure they still
apply and work for your company.
 ?
1. Steps of Crisis Communications
2. Stages of Crisis