What is a crisis management? It is an unexpected crisis that happens on the company that will affect the trust and loyalty of the stakeholder. It can be extremely costly because it will affect the company reputation and brand. For example like financial failure from poor business management, workplace violence, fires, cybercrime, computer viruses, product tampering or union strikes and other external issue like damaged economy that causes from London bombings, terrorists attacks on 11 September and others. The SHRM 2005 report indicates that only 56% organizations created or revised their disaster preparedness plans but 45% did not after the terrorist attacked on 11 September. HR leader’s functions are to solve this problem by using a strategic role to contribute tangible deliverables through advance preparation, including safety and security initiatives, leadership development, talent management and solid communication plans. 2.Defining crisis management and HR role.
Crisis management is defined as organization preestablished activities and guidelines for preparing and responding to significant a sudden event that causes great suffering or destruction, for example like fires, earthquakes, severe storms, workplace violence, kidnappings, bomb threats, acts or terrorism and others. Crisis management is about developing an organization capability to react quickly when crisis happens. Through crisis management planning, organization can better prepare to handle unforeseen event that may cause serious level of damage. Usually HR has not been functioned to design to organize or oversee safety and security initiatives, but regardless of the organization size, HR has a strategic role and responsibility to ensure their organization aware of the human side of a crisis and plan ahead to help minimize its effects. 3.The business case
There have 4 main topics on business case. First is cost of survival, second is a challenge, third is the human side of crisis and lastly is the ethical and legal balance. For cost of survival, there is an increased focus on domestic safety and security and concern for global security. After the Katrina disaster, the crisis management has been implemented and sustainability of every aspect of the workplace in US. Second is a challenge. The organizations maybe are reluctant to provide the essentials. For example like commitments from CEO when any unexpected event happened. Change on management practises also will cause the organisation that is weak will not be able to overcome their challenge like emergency or disaster that will come anytime. This because they have a small financial fund and also lack of absorb the impact of the damage. Next is human side of crisis. The most error that organization doing is in crisis management planning they concern first about the tendency to focus on systems, operations, infrastructure and public relations, while people last on the list. It means that the organization not concern or lack of the attention about the workers. Organizations need to pay greater attention to the impact of critical events on employees, their families and the community. Because business recovery cannot be occur without employees. HR plays a strategic role in promoting trustful and prepared leadership throughout the organization to help reassure employees about their safety. Lastly is the ethical and legal balance. Organizations have a moral and legal duty to safeguard their employees and the integrity of their business. The Occupational Safety and Health Act (OSHA) require that employers must provide the employees with a place of free from recognized hazards that can cause to death or serious physical harm. Further, it makes good business sense to include crisis management as an integral part of corporate governance. 4.Strategic crisis management planning.
A crisis can be strategically managed more effectively...