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Crisis Management
Crisis management is the systematic attempt to avoid organizational crises or to
manage those crises events that do occur. A crisis is a major, unpredictable
event that threatens to harm an organization and its stakeholders. Although
crisis events are unpredictable, they are not unexpected. Crises can affect
all segments of society – businesses, churches, educational institutions,
families, non-profits and the government and are caused by a wide range
of reasons. Although the definitions can vary greatly, three elements are
common to most definitions of crisis:
(a) A threat to the organization,
(b) the element of surprise, and
(c) a short decision time
There are four types of organizational crises:
planning
• Prepare contingency plans in advance (crisis management team and
members can be formed at very short notice, rehearsing of crises of
various kinds)
• immediately and clearly announce internally that the only persons to
speak about the crisis to the outside world are the crisis team members)
• Move quickly (the first hours after the crisis first breaks are extremely
important, because the media often build upon the information in the first
hours)
• Use crisis management consultants (advice by objectivity of PR
consultants is important, use the corporate image expertise of specialists)
• Give accurate and correct information (remember that trying to
manipulate information will seriously backfire if it is discovered, also
internally!)
• When deciding upon actions, consider not only the short-term losses, but focus
also on the long term effects
Models and theories associated with crisis management
• Crisis Management Model
• Management Crisis Planning
• Contingency Planning
• Business Continuity Planning
• Structural-Functional Systems Theory
• Diffusion of Innovation Theory
Piyush Anand, 3rd year