Crisis’ and ‘Crisis Management'

The crisis is a sudden unexpected event which is nothing but a threat and lead to Unrest to the organization, among people, stockholders and employees seriously interrupt the business and significantly damage the reputation Crisis Management is the process with which organization deals with and resolve the problem. In fact it is designed to lessen and prevent the damage happened during the crisis. Crisis management has 3 phases like pre crisis, crisis response and post crisis. The study of crisis management originated with the large-scale industrial and environmental disasters in the 1980s. the dangerous signals leading to crisis are-decreasing Market share and profitability; failure to plough back the profit into business. Lack of planning, inflexible CEO, Increased dependence on debt and restricted dividend policies etc., There are '10 commandments ’in crisis management like-speak with one voice, Resist the urge to discipline too early, Beginnings are as important as endings, every crisis is unique and advance planning is a vital etc., Also in crisis the Leadership is about playing to strengths and addressing weaknesses in the most productive and efficient way possible. And it is the ability to see a problem and be the solution. Crisis management is designed to protect an organization and its stakeholders from threats and/or reduce the impact felt by threats. As Crisis management can be divided into three phases: (1)-crisis pre-crisis, (2) crisis response, and (3) post, Effective crisis management handles the threats sequentially. Stealing thunder is a matter of timing involving the disclosure of information about a crisis. It is an effort taken by the company to communicate with the public and stakeholders when an unexpected event occurs that could have a negative impact on the company's reputation. Crisis Management Plan (CMP) is a reference tool, not a blueprint. A CMP provides lists of key contact information, reminders of what typically should be done in a crisis, and forms to be used to document the crisis response. Barton (2001) identifies the common members of the Crisis Team as public relations, legal, security, operations, finance, and human resources. We should now amend the list of common members to include the social media manager. The Initial Crisis Response Guidelines focus on three points: (1) be quick, (2) be accurate, and (3) be consistent. One of the major yardsticks in crisis communications is meeting public expectations. Some of the main reputational repair strategies are: 1.Attack the accuser2. Denial3. Scapegoat 4.Excuse, 5.Provocation 6.Defeasibility 7.Accidental, 8.Good intentions 9.Justification 10.Reminder 11.Integration 12.compensation13.Apology. etc.,. Best practices in the Post Crisis Phase are-Deliver all information promised to stakeholders, Keep stakeholders updated on the progression of recovery efforts, Analyze the crisis management effort.