Crisis occurs within an organization the least it is expected, creating tremor to the foundation of the business. It threatens to harm the organization because of its element of surprise and requires decision making on a very short notice. It also means that the old system is not working out effectively and thus needs to be changed. This unpredictable event could bring potential risks which are needed to be taken care of. Crisis Management should be effectively utilized. This is the application of various strategies and techniques designed to help the company to cope with a sudden blow of a negative event.
- Understanding Crisis
Such cases occur when the management is not prepared for it. Planning for solutions to the problem is the main responsibility of the manager. After planning for the possible solutions, the manager should be able to monitor its efficiency through well- developed systems and task delegation. Including training programs for the stakeholders can also help in diminishing the negative effects of an unexpected dilemma to work on the recuperation of the company.
- Types of Crises
Crises can be categorized into many forms which require different approaches because one strategy may not work on the other, depending on the nature of the problem. These common crisis categories are known as follows:
Financial Crisis is the most common type of crisis that may occur within an organization. Financial crisis may be due to economic factors. These economic factors could be recession or depression, the rising and falling of prices and drying up of liquidity. These may lead to laying off jobs or bankruptcy of the company.
Natural Disasters are the most unpredictable crisis that could disrupt the normal flow of function of the stakeholders in the company. It may be due to typhoons or earthquakes, eruption of volcanoes, tornados, hurricanes, floods landslides, tsunamis and droughts which could bring damages to the building and people of the organization.
Technological Crisis is the result of failure in technology. It could be influenced by human application of science and technology, the breakdown of machines or corrupted software being used that disables the overall system.
Political and Social Crisis may also arise within the organization especially when the parties involve aim for promotion and possible accumulation of greater wealth from the company. Some people may banter with another and could create troubles. Another possible scenario is when a person leaves right in the middle of a project. These are deemed to bring negative changes preventing the company to progress. The knowledge of handling disagreements and personal rifts must be applied properly, without bias.
- Planning for an Impending Crisis
Imminent crises are expected to prepare for. This preparation includes extensive research for the alternatives to be used; reaching out to people to be contacted; and accessing potential resources. Without a clear plan, the company is about to be doomed.
A person has to take the responsibility in the crisis management as the team leader. The team must be able to come up with the strategies to be carried out to mitigate the existing crisis. The leader should look into the details, make judgments, suggest or delegate tasks whenever needed.
- Dealing with Crisis
In order to get back peace and harmony within an organization, it has to develop a response team to count on when emergencies happen. This team must be willing to represent the company to deal or meddle with media, authorities and even stakeholders. A company must also provide clear plans to be delivered to its people to avoid misinformation.
Conclusion
Having a well-thought plan, mastered management skills and good leadership will help the organization to recover from any kind of crisis management. A systematic approach to resolving issues should be emphasized as it will help the company reach its goals and achieve its vision.
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