Crisis Management

Topics: Crisis management, Management, Business continuity planning Pages: 22 (7026 words) Published: May 13, 2011
Crisis management
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Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. Three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time.[1] Venette[2] argues that "crisis is a process of transformation where the old system can no longer be maintained." Therefore the fourth defining quality is the need for change. If change is not needed, the event could more accurately be described as a failure or incident. In contrast to risk management, which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats after they have occurred. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures start. Contents

1 Introduction
2 Types of crisis
o2.1 Natural crises
o2.2 Technological crises
o2.3 Confrontation crises
o2.4 Crises of malevolence
o2.5 Crises of organizational misdeeds
2.5.1 Crises of skewed management values
2.5.2 Crises of deception
2.5.3 Crises of management misconduct
o2.6 Workplace violence
o2.7 Rumors
3 Crisis Leadership
o3.1 Sudden crises
o3.2 Smoldering crises
o3.3 Signal detection
o3.4 Preparation and prevention
o3.5 Containment and damage control
o3.6 Business recovery
o3.7 Learning
4 Models and theories associated with crisis management o4.1 Crisis Management Model
o4.2 Management Crisis Planning
o4.3 Contingency planning
o4.4 Business continuity planning
o4.5 Structural-functional systems theory
o4.6 Diffusion of innovation theory
o4.7 Role of apologies in crisis management
o4.8 Crisis leadership
o4.9 Unequal human capital theory
5 Examples of successful crisis management
o5.1 Tylenol (Johnson and Johnson)
o5.2 Odwalla Foods
o5.3 Mattel
o5.4 Pepsi
6 Examples of unsuccessful crisis management
o6.1 Bhopal
o6.2 Ford and Firestone Tire and Rubber Company
o6.3 Exxon
7 Lessons learned in crisis management
o7.1 Impact of catastrophes on shareholder value
o7.2 Crisis as Opportunity
8 Public sector crisis management
o8.1 Schools and crisis management
o8.2 Government and crisis management
o8.3 Elected officials and crisis management
9 Professional Organizations
10 See also
11 References
12 Further reading
13 External links

[edit] Introduction
Crisis management consists of:
Methods used to respond to both the reality and perception of crises. •Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms. •Communication that occurs within the response phase of emergency management scenarios. Crisis management methods of a business or an organization are called Crisis Management Plan. Crisis management is occasionally referred to as incident management, although several industry specialists such as Peter Power argue that the term crisis management is more accurate. [3] The credibility and reputation of organizations is heavily influenced by the perception of their responses during crisis situations. The organization and communication involved in responding to a crisis in a timely fashion makes for a challenge in businesses. There must be open and consistent communication throughout the hierarchy to contribute to a successful crisis communication process. The related terms emergency management and business continuity management focus respectively on the prompt but short lived "first aid" type of response (e.g. putting the fire out) and the longer term recovery and restoration phases (e.g....
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