Crisis, according to Venette, happens when there is a need for change. It may be a “threat to an organization, a surprise, or a short decision time.” That is why there is also a need to learn how to manage crisis. This so-called “crisis management” is a course of action in which harmful risks are dealt with. It should be taken notice that it is different to “risk management” which is engaged to evaluating inherent threats and finding the best things to keep clear of such, because crisis management deals with those risks after they have already occurred. By then, since the situation has already taken place, the person or organization involved has to exercise their skills and formulate a modus operandi on how to resolve the problem.
Crisis management, sometimes referred to as “incident management”, includes methods (which are also called Crisis Management Plan in business), indicators to define the scenario in crisis, and of course, open and consistent communication.
The term emergency management refers to short-term responses, while business continuity management is focused on long term recuperation stages. Although crisis is a component of risk management, it is never right to say that crisis management is a failure of the risk management because not everything is in our control. Some things just happen; it is never possible to totally eradicate the probabilities of those things occurring.
Since the topic is crisis, it might also be considered important to know its types since different types of crises have different needs of management strategies. There are seven types of crises: natural disaster, technological, confrontation, malevolence, organizational misdeeds, workplace violence, and rumors. Let us go to them one by one.
One is natural disasters such as earthquakes, tsunamis, etc. They are considered as “acts of God”—a situation when no one is in control but nature. This is where crisis management is very applicable since one/a group can’t help but let the catastrophe take place first before he/she/they could try to resolve the problem caused by those tragedies.
Another is technological crisis. Technological crises are the result of the application of science and technology. Unlike natural disasters, someone is held responsible for accidents caused by technology because the latter is subject to human exploitation. Examples of such accidents are the Chernobyl disaster, and Exxon Valdez oil spill.
Confrontation crises happen when people are not contented with the fulfillment of their own demands and expectations. Boycotts and strikes, which happen nowadays in many countries, are some forms of confrontation crises.
Crises of Malevolence are some sort of crab mentality. They occur when antagonists devise tactics in order to put down or even destroy someone, an organization, or a government administration, thinking of their own desires.
Crisis of organizational misdeeds takes place when people take known risks without safety or careful precautions. This comes in three types, which are the following:
✓ Crises of skewed management values are caused when short-term economic gain is only focused by the management. This will cause a huge degrade of the level of trust of the customers if they feel they are neglected by the company services rendered.
✓ Crises deception occurs when the organization creates false statement to their customers about the products and services of the company for their own personal gain.
✓ Crises of management misconduct are caused by the activities which are immoral illegal in nature.
Workplace violence occurs when employees commits violence against each other in the workplace.
Rumors and false advertisement about the company or its products can...