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.

Characteristics of Crisis

 Crisis is a sequence of sudden disturbing events harming the organization.

 Crisis generally arises on a short notice.
 Crisis triggers a feeling of fear and threat amongst the individuals.

Why Crisis ?

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.

Crisis Management

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.

Crisis refer to unplanned events which cause harm to the organization and lead to
disturbances and major unrest amongst the employees.

Crisis gives rise to a feeling of fear and threat in the individuals who eventually lose
interest and trust in the organization.

Crisis Management Model

Gonzalez-Herrero and Pratt proposed a Crisis Management Model which

identified three different stages of crisis management.

According to Gonzalez-Herrero and Pratt, crisis management includes following

three stages:

1. Diagnosis of Crisis

The first stage involves detecting the early indicators of crisis. It is for the
leaders and managers to sense the warning signals of a crisis and prepare the
employees to face the same with courage and determination. Superiors must
review the performance of their subordinates from time to time to know what
 they are up to.

The role of a manager is not just to sit in closed cabins and shout on his
subordinates. He must know what is happening around him. Monitoring the
performance of the employee regularly helps the managers to foresee
crisis and warn the employees against the negative consequences of the
same. One should not ignore the alarming signals of crisis but take necessary
actions to prevent it. Take initiative on your own. Don’t wait for others.

2. Planning

Once a crisis is being detected, crisis management team must immediately

jump into action. Ask the employees not to panic. Devise relevant strategies
to avoid an emergency situation. Sit and discuss with the related members to
come out with a solution which would work best at the times of crisis. It is
essential to take quick decisions. One needs to be alert and most importantly
patient. Make sure your facts and figures are correct. Don’t rely on mere guess
works and assumptions. It will cost you later.

3. Adjusting to Changes

Employees must adjust well to new situations and changes for effective
functioning of organization in near future. It is important to analyze the causes
which led to a crisis at the workplace. Mistakes should not be repeated and new
plans and processes must be incorporated in the system.

Structural Functions Systems Theory

According to structural functions systems theory, communication plays a pivotal role in

crisis management. Correct flow of information across all hierarchies is essential.
Transparency must be maintained at all levels. Management must effectively
communicate with employees and provide them the necessary information at the times
of crisis. Ignoring people does not help, instead makes situations worse. Superiors
must be in regular touch with subordinates. Leaders must take charge and ask the
employees to give their best.

Diffusion of innovation Theory

Diffusion of innovation theory proposed by Everett Rogers, supports the sharing of

information during emergency situations. As the name suggests during crisis each
employee should think out of the box and come out with something innovative to
overcome tough times. One should be ready with an alternate plan. Once an
employee comes up with an innovative idea, he must not keep things to himself.
Spread the idea amongst all employees and departments. Effective communication is
essential to pass on ideas and information in its desired form.

Unequal Human Capital Theory

Unequal human capital theory was proposed by James. According to unequal

human capital theory, inequality amongst employees leads to crisis at the workplace.
Discrimation on the grounds of caste, job profile as well as salary lead to frustrated
employees who eventually play with the brand name, spread baseless rumors and
earn a bad name for the organization.

Crisis Management Plan

Crisis refers to a sequence of unwanted events leading to major disturbances and
uncertainty at the workplace.

Crisis is an unexpected event which not only causes harm to the organization but also
triggers a feeling of fear and insecurity amongst the individuals.

Organizations must be prepared well to face inevitable threats and come out of tough
times without much difficulty. Individuals must immediately jump into action; the
moment crisis is being detected at the workplace.

What is a Crisis Management Plan ?

Individuals need to adopt a step by step approach during critical situations. Planning is
essential. Getting hyper does not solve any problem, instead makes the situation
worse. It is a crime to take impulsive and hasty decisions during crisis. It is essential to
think rationally and devise strategies which would work best during emergency
situations. Complaining and cribbing lead you nowhere.

Crisis Management Plan refers to a detailed plan which describes the various
actions which need to be taken during critical situations or crisis.

Any plan prepared by superiors, members of crisis management team and related
employees to help organization overcome crisis in the best possible way is called
crisis management plan.

Why Crisis Management Plan ?

 Crisis management plan helps the employees to adopt a focused approach

during emergency situations.
 Crisis management Plan elaborates the actions to be taken by the management
as well as the employees to save organization’s reputation and standing in the
industry. It gives a detailed overview of the roles and responsibilities of
employees during crisis.
 Individuals representing the crisis management team formulate crisis
management plan to reduce the after effects of crisis at the workplace.
  Crisis Management Plan helps the managers and superiors to take quick and
relevant actions as per the situation.
 Crisis Management plan protects an organization from inevitable
threats and also makes its future secure.
 Such plans reduce instability and uncertainty amongst the employees and
help them concentrate on their work.

Characteristics of Crisis Management Plan

 Crisis Management Plan should be made in the presence of all executives.

Every member of crisis management team should have a say in the plan. It is
important for each one to give his / her valuable inputs and suggestions.
 Crisis Management Plan should take into account all identified problem areas
and suggest a possible solution for all of them to help the organization come out
of crisis as soon as possible.
 Make sure the plans are realistic and solve the purpose of saving organization’s
reputation and name.

How to make a crisis management plan ?

 Identify the problem areas and various factors which led to crisis at the
workplace.
 Discuss issues and areas of concern amongst yourselves on an open forum
for everyone to share their opinion.
 Make sure you have accurate information. Don’t depend on guess works and
assumptions. Double check your information before submitting the final plan.
 Crisis Management Plan should not only focus on ways to overcome crisis but
also on making the processes foolproof to avoid emergency situations in future.

Crisis Communication - Meaning, Need and its Process

Crisis refers to sequence of unwanted events at the workplace which lead to
disturbances and major unrest amongst the individuals. Crisis generally arises on a
short notice and triggers a feeling of threat and fear in the employees. In simpler words
crisis leads to uncertainty and causes major harm to the organization and its
employees.

It is essential for the employees to sense the early signs of crisis and warn the
employees against the negative consequences of the same. Crisis not only affects the
smooth functioning of the organization but also pose a threat to its brand name.

What is Crisis Communication ?

Crisis Communication refers to a special wing which deals with the reputation of the
individuals as well as the organization. Crisis communication is an initiative which
aims at protecting the reputation of the organization and maintaining its public
image. Various factors such as criminal attacks, government investigations, media
enquiry can tarnish the image of an organization.

Crisis Communication specialists fight against several challenges which tend to harm
the reputation and image of the organization.

Need for Crisis Communication

Crisis can have a negative effect on brand image. Crisis Communication experts are
employed to save an organization’s reputation against various threats and unwanted
challenges.

Brand identity is one of the most valuable assets of an organization. The main purpose
of Crisis Communication team is to protect the brand identity and maintain the
organization’s firm standing within the industry.

Crisis Communication specialists strive hard to overcome tough situations and help
the organization come out of difficult situations in the best possible and quickest way.

Crisis Communication Process

 Employees should not ignore any of the external parties and important
clients Come out, meet them and discuss the problem with them. There is
nothing to be ashamed of. If needed, seek their help. Media must not be
ignored. Answer their questions. Avoiding media makes situation all the more
worse.
 Don’t criticize individuals. Show a feeling of care and concern for them.
Share their feelings and encourage them not to lose hope. Encourage them to
deliver their level best. Put yourself in their place. Respect them and avoid
playing blame games.
 Effective communication must be encouraged at the workplace during
emergency situations. Employees should have an easy access to superior’s
cabins to discuss critical issues with them and reach to a mutually acceptable
solution.
 Information must flow across all departments in its desired form. One
should not rely on mere guess works or assumptions during crisis. Make sure
the information you have is accurate.
 Crisis communication specialists must learn to take quick decisions.
Remember one needs to respond quickly and effectively during unstable
situations. Think out of the box and devise alternate plans for the smooth
functioning of organization.
 Make sure information is kept confidential. Serious action must be taken
against employees sharing information and data with external parties. Such
things are considered highly unprofessional and unethical and spoil the
reputation of the organization.
 The superiors must evaluate performance of employees on a regular
basis. Ask for feedbacks and reports to know what they are up to. Conduct
 surprise audits to track performance of employees.

Organizations hire crisis communication specialists to overcome tough times as well

as to maintain their reputation and position in the market.

Crisis Management Team

Sequence of sudden unwanted events leading to major disturbances at the workplace
is called crisis. Crisis arises on an extremely short notice and triggers a feeling of fear
and uncertainty in the employees.

It is essential for the superiors to sense the early signs of crisis and warn the
employees against the same. Once a crisis is being detected, employees must quickly
jump into action and take quick decisions.

What is a Crisis Management Team ?

A Crisis Management Team is formed to protect an organization against the adverse

effects of crisis. Crisis Management team prepares an organization for inevitable
threats.

Organizations form crisis management team to decide on future course of

action and devise strategies to help organization come out of difficult times as
soon as possible.

Crisis Management Team is formed to respond immediately to warning signals of

crisis and execute relevant plans to overcome emergency situations.

Role of Crisis Management Team

Crisis Management team primarily focuses on:

 Detecting the early signs of crisis.

 Identifying the problem areas
 Sit with employees face to face and discuss on the identified areas of concern
 Prepare crisis management plan which works best during emergency situations
 Encourage the employees to face problems with courage, determination and
smile. Motivate them not to lose hope and deliver their level best.
 Help the organization come out of tough times and also prepare it for the future.

Crisis Management Team includes:

Head of departments
Chief executive officer and people closely associated with him
Board of directors
Media Advisors
Human Resource Representatives
The role of Crisis Management Team is to analyse the situation and formulate crisis
management plan to save the organization’s reputation and standing in the industry.

How does Crisis Management Team function ?

A Team Leader is appointed to take charge of the situation immediately and

encourage the employees to work as a single unit.

The first step is to understand the main areas of concern during emergency
situations.

Crisis Management Team then works on the various problems and shortcomings
which led to crisis at the workplace. The team members must understand where things
went wrong and how current processes can be improved and made better for smooth
functioning of the organization.

It is important to prioritize the issues. Rank the problems as per their effect on the
employees as well as the organization. Know which problems must be resolved
immediately and which all can be attended a little later.

A single brain cannot take all decisions alone. Crisis Management Team should sit
with rest of the employees on a common platform, discuss prevailing issues, take each
other’s suggestions and reach to plans acceptable to all.

One of the major roles of the Crisis management team is to stay in touch with external
clients as well as media. The team must handle critical situations well.

Develop alternate plans and strategies for the tough times. Make sure you have
accurate information. Double check your information before finalizing the plan.

Implement the plans immediately for results. Proper feedback must be taken from time
to time.

Crisis Management team helps the organization to take the right step at the right time
and help the organization overcome critical situations.

Ways to Overcome Organizational Crisis

Sequence of unwanted events leading to uncertainty at the workplace is called as
crisis. Crisis leads to major disturbances at the workplace and creates unrest amongst
the employees.

Employees must not lose hope during crisis. It is important for them to face inevitable
threats with courage, determination and smile.

Let us go through various ways to overcome crisis:

 Adopt a focused approach. Take initiative and find out where things went
wrong. Identify the problem areas and devise appropriate strategies to
 overcome the same.
 Gather correct and relevant information. One should not depend on mere
guess works and assumptions during emergency situations. Double check your
information before submitting reports.
 Employees should change their perspective. One should always look at the
brighter side of things. Remember life has its own ups and downs. Unnecessary
cribbing and complaining does not help at the workplace. Avoid making issues
over petty things. Don’t adopt a negative attitude; instead understand the
situation and act accordingly.
 Effective communication is essential to overcome crisis in the
organization. Information must flow across all departments in its desired form.
Employees must be aware of what is happening around them. Individuals
should have an easy access to their superior’s cabin to discuss critical issues
and seek their suggestions. Superiors must address employees on an open
forum during critical situations.
 Roles and responsibilities must be delegated as per the employee’s
specialization. Make sure the right person is doing the right job. Employees
must be motivated to deliver their level best and focus on the organization’s
goals to overcome tough times in the best possible way.
 It is essential to take quick decisions during critical situations. Learn how to take
risks. The moment an employee detects the early signs of crisis, it is important
for him to act immediately. Escalate issues to your superiors and do inform your
co workers as well. Don’t wait for others to take action.
 Be calm and patient. Don’t panic and spread baseless rumours around. Taking
unnecessary stress makes situation all the more worse. Remember a calm
individual can handle things better. Relax and then decide on the future course
of action to overcome crisis. Don’t lash out at others under pressure.
 Discussions are essential during crisis. Sit with fellow workers and discuss
issues amongst yourselves to reach to mutually acceptable solutions which
would work best at the times of crisis.
 Be loyal to your organization even at the times of crisis. Stick to it during bad
times. Don’t just treat your organization as a mere source of earning money. It
is important to respect your workplace.
 Review your performance regularly. Be your own critic. Strive hard to achieve
your targets within the desired time frame. Don’t work only when your boss is
around.
 Avoid unnecessary conflicts and misunderstandings at the workplace.
Treat your fellow workers as members of your extended family. Help each other
when needed. Employees should not ask for unjustified things. Think from the
management’s perspective as well. Avoid criticizing your colleagues.
 Don’t hide at the times of crisis. Come out; interact with external clients as well
as media. Do not hesitate to ask for help. Ignoring outsiders worsens the
situations.