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From crisis prone to crisis prepared: a framework for crisis management -…
From crisis prone to crisis prepared: a framework for crisis management
Crises could be grouped into major types.
Systems
Executives should examine their crisis capabilities across each of five organizational systems:
(a)
Technical
: Its components include those mechanisms that organize company work.
(b)
Human factor
: integrates people and machinery.
(c)
Infrastructural
: For effective crisis management, an appropriate infrastructure must be in place.
this includes
Open and effective communication channels among levels and across divisions
as well as
Job descriptions which specify who is accountable for supporting crisis management activities and reporting bad news.
(d)
Cultural
and (e)
Emotional/belief
: The cultural system of the organization at large reflects the emotional/belief system of senior executive’s mindsets.
Senior executives' attitudes and beliefs regarding the organization's potential for crises, and the organization's ability to prepare for and manage crises will determine the success of crisis management.
Stakeholders
Organizations which are well prepared recognize that a crisis has the potential to affect not only themselves and their products, but also the broadest array of potential stakeholders
like
Consumers, competitors, suppliers, and members of their general environment.
Managers and executives who evaluate and enhance their capabilities in each of these four major crisis management variables keenly aware of their vulnerabilities and set out to improve deficiencies in an on-going crisis management process.
the purpose of crisis management
Is to prepare an organization to think creatively about the unthinkable so that the best possible decisions will be made in time of crisis.
Crisis types
External Economic Attacks External Information Attacks Mega Damage
Psycho
Breaks
Perceptual
Executives should prepare for the fullest range of crises.
If mismanaged a single type can set off a chain reaction of other crises.
Phases
1.- Warning signals
: learn how to separate those signals indicative of a looming crisis from the barrage of noise which is part of daily business.
2.- Preparation/prevention:
creation of crisis teams as well as crisis training and simulation exercises.
3.- Damage containment:
is to limit the effects.
4.- Recovery:
the best prepared organizations have programs of short-term and long-term business recovery.
5.- Learning:
refers to adequate reflection and critical examination of the lessons learned from experiencing a crisis.