Crisis Management - Meaning, Need and its Features

What is Crisis ?

A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called as organization crisis. In other words, crisis is defined as any emergency situation which disturbs the employees as well as leads to instability in the organization. Crisis affects an individual, group, organization or society on the whole.

Characteristics of Crisis

• Crisis is a sequence of sudden disturbing events harming the organization.

• Crisis generally arises on a short notice.

• Crisis triggers a feeling of fear and threat amongst the individuals.

Why Crisis ?

Crisis can arise in an organization due to any of the following reasons:

• Technological failure and Breakdown of machines lead to crisis. Problems in internet, corruption in the software, errors in passwords all result in crisis.

• Crisis arises when employees do not agree to each other and fight amongst themselves. Crisis arises as a result of boycott, strikes for indefinite periods, disputes and so on.

• Violence, thefts and terrorism at the workplace result in organization crisis.

• Neglecting minor issues in the beginning can lead to major crisis and a situation of uncertainty at the work place. The management must have complete control on its employees and should not adopt a casual attitude at work.

• Illegal behaviors such as accepting bribes, frauds, data or information tampering all lead to organization crisis.

• Crisis arises when organization fails to pay its creditors and declares itself a bankrupt organization.

Crisis Management

The art of dealing with sudden and unexpected events which disturbs the employees, organization as well as external clients refers to Crisis Management.

The process of handling unexpected and sudden changes in organization culture is called as crisis management.

Need for Crisis Management

• Crisis Management prepares the individuals to face unexpected developments and adverse conditions in the organization with courage and determination.

• Employees adjust well to the sudden changes in the organization.

• Employees can understand and analyze the causes of crisis and cope with it in the best possible way.

• Crisis Management helps the managers to devise strategies to come out of uncertain conditions and also decide on the future course of action.

• Crisis Management helps the managers to feel the early signs of crisis, warn the employees against the aftermaths and take necessary precautions for the same.

Essential Features of Crisis Management

• Crisis Management includes activities and processes which help the managers as well as employees to analyze and understand events which might lead to crisis and uncertainty in the organization.

• Crisis Management enables the managers and employees to respond effectively to changes in the organization culture.

• It consists of effective coordination amongst the departments to overcome emergency situations.

• Employees at the time of crisis must communicate effectively with each other and try their level best to overcome tough times.

Points to keep in mind during crisis

• Don’t panic or spread rumours around. Be patient.

• At the time of crisis the management should be in regular touch with the employees, external clients, stake holders as well as media.

• Avoid being too rigid. One should adapt well to changes and new situations.

Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.