Crisis
What is crisis?
- A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is
called 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:
- Techological 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 result of boycott, strickes for indefinits 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 process of handling unexpected and sudden changes in organization culture is called as crisis
management.
Need of 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 situtations.
Types of crisis
- Natural crisis
- Distubances in the environment and nature lead to natural crisis.
- Such events are generally beyond the control of human beings.
- Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis, Flood, Drought all result in
natural disaster.
- Techological crisis
- Technological crisis arises as a result of failure in technology. Problems in the overall
systems lead to technological crisis.
- Breakdown of machine, corrupted software and so on give rise to technological crisis.
- Confrontation crisis
- Confrontation crises arise when employees fight amongst themselves. Individuals do not agree
to each other and eventually depend on non productive acts like boycotts, strikes for
indefinite periods and so on.
- In such a type of crisis, employees disobey superiors; give them ultimatums and force them
to accept their demands.
- Internal disputes, ineffective communication and lack of coordination give rise to
confrontation crisis.
- Crisis of Organizational Misdeeds
- Crises of organizational misdeeds arise when management takes certain decisions knowing the
harmful consequences of the same towards the stakeholders and external parties.
- In such cases, superiors ignore the after effects of strategies and implement the same for
quick results.
- Crisis due to Workplace Violence
-
Such a type of crisis arises when employees are indulged in violent acts such as beating
employees, superiors in the office premises itself.
- Crisis Due to Rumours
-
Spreading false rumours about the organization and brand lead to crisis. Employees must not
spread anything which would tarnish the image of their organization.
- Bankruptcy
- Lack of fund leads to crisis.
- A crisis also arises when organizations fail to pay its creditors and other parties.