Crisis Management Presenter: Md. Ehtesham Khan Professor and Head Department of Political Science Magadh University, Bodh Gaya
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Crisis Management
Presenter: Md. Ehtesham Khan
Professor and Head
Department of Political Science
Magadh University, Bodh GayaWhat is Crisis?
A time of great disagreement, confusion or
suffering.
- Cambridge Dictionary
Example: Leadership Crisis, Economic and
Banking Crisis, a Crisis of Confidence etc.What is Management?
• The control and organisation of something,
esp. a business and its employees.
- Cambridge Dictionary
• Example: Management of a large real-estate
company
• The activity or job of being In-charge of a
company, organisation, department or team
of employees.Define Management
• Management is what a manager does.
- Louis A.Allen
• To manage is to forecast and plan, to
organise, to command, to coordinate and to
control
- Henry Fayol
• Management is the art of knowing what you
want to do…. in the best and cheapest way.
- F.W. TaylorDifference between Administration,
Management and Organisation
Administration formulates the policies.
Management gets the policies executed.
Organisation provide the basic structures
to execute the policies.
Administration
Organisation ManagementWhat is Crisis Management? The actions that are taken to deal with an emergency or difficult situation in an organised way. The panel’s report discusses campus safety, security and crisis management. It Plans anticipate problems that might arise and seek to reduce their impacts
What is Crisis Management?
Crisis management is a series of functions
or processes that help to identify, study
and forecast crisis issues, and to derived
specific means that would enable
organisations to prevent or cope with a
crisis. It involves the systematic attempt
to prevent organisational crises and/or to
manage any that occur.
- Piarson and Clair,1998What is Crisis
• Effective crisis management invoving
complex science and technology is wholly
dependent on well-thought out, and
actively practiced, crises response plans.
- Heineman, 2011Characteristics of Crisis It is the sequence of sudden disturbing events harming the organisation. It generally arises on a very short notice. It triggers a threat.
Crisis Management, Disaster Management, Risk Management, Emergency Management Crisis Management- It is a discipline with the broader context of management, consisting of skills and techniques to cope with a serious situation. It deals with threats before, during and after they have occurred. Disaster management- It involves planning, drill mock session when disaster occurred either manmade or natural strikes. It is details of procedure and steps to recover from disaster. Thus crisis management is a part of disaster management
Risk Management- It involves assessing potential threats and finding the ways to avoid those threats. Emergency Management: The Emergency management and Business continuity management basically focus on first aid (prompt but short lived).
Types of Crisis Management
According to Lerbinger there are eight types
of crises.
1.Natural Disaster
Earthquakes, volcanic eruptions,
tornadoes, floods, landslides, tsunamis,
storms and droughts.
Examples: Tsunami, 2004, Chennai,India
Cyclone Fani, 2019, Odisha,India
Amphan, 2020, W.B.,India2. Technological Crisis It occurred when human application of science and technology caused disruptions (technological or human breakdowns). Examples: Chernobyl disaster, Russia, 1986 Exxon Valdez oil spill, Alaska, USA,1989 Vizag gas leak in LG Polymers industry, RR Venkatapuram, Vishakhapatnam, 2020
3. Confrontation Crisis This crisis occurs when discontented individuals or groups fight businesses, government, and various interest groups to win acceptance of their demands. Examples: boycotts, picketing, sit-ins, blockade, occupation of buildings and resisting the administration etc. -boycott of Nike,2019,USA -Protest against CAA, 2019/20, India
4. Malevolence Crisis When opponents use criminal means and extreme tactics for the purpose of expressing hostility or anger toward, or seeking gain from, a company, country, or economic system, perhaps with the aim of destabilizing or destroying is called Malevolence crisis Examples: product tampering, kidnapping, malicious rumours, terrorism, cybercrime and espionage. -9/11 terror attack,2001,Manhattan, New York -26/11 terror attack,2008, Mumbai, India
5. Organisational Misdeeds • The crisis occurs when management takes action it knows will harm or place stakeholders at risk for harm without adequate precautions. • Lerbinger categorises three types of organisational crisis. • 1.crisis of skewed management values-Managers favour short-term economic gain • 2. crisis of deception-Management conceals information of the products • 3. crisis of management misconduct- Deliberate illegality
6.Workplace Violence The crisis occurs when an employee or former employee commits violence against other employees on organisational grounds
7. Rumours False information about an organisation or its products creates crises hurting the organisation’s reputation. Example: Proctor and Gamble logo myth
8.Terror Attacks/ Man-made disasters The crisis occurs as a result of human intent, error, or failed systems. The threat of terrorism affects all communities around the world. Example: 9/11 terror attack, Manhattan, Newyork, 2001
Crisis Leadership James identifies five leadership competencies which facilitate organisational restructuring during and after a crisis. Building an environment of trust Reforming the organisation’s mindset Identifying obvious and obscure vulnerabilities of the organisation. Making wise and rapid decisions Learning from crisis to effect change
• Thus crisis leadership research concludes that a leadership action in crisis reflects the competency of organisation. Developing effective human resource is vital when building organisational capabilities through crisis management executive leadership.
Thanks
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