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    CRISIS MANAGEMENT

    Marie Mikusova

    Crisis Team and Crisis Manager

    Sara Trullenque Espallargas

    saratrullenque_13!otmail"#om

    30.11.2013

    Contents

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    Introduction

    Crisis Management Team

    o Definition

    o Members

    o Role

    Crisis Manager

    o Definition

    o Role

    o Effective crisis managers

    Conclusion

    References

    Introduction

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    Crisis management involves dealing with threats before, during, and after

    they have occurred. It is a discipline within the broader contet of management consisting

    of s!ills and techni"ues re"uired to identify, assess, understand, and cope with a serious

    situation, especially from the moment it first occurs to the point that recovery procedures

    start.

    In addition, crisis management is about developing an organi#ation$s

    capability to react fleibly and thus be able to ma!e the prompt and necessary decisions

    when a crisis happens. If an organi#ation prepares for the %worst&case scenario,' then it can

    handle other situations as well.

    (eing able to effectively respond to a crisis is relevant to an organi#ation)s

    survival. *hether or not an organi#ation is prepared for a potential crisis depends upon

    senior officials, and other personnel operating within the company. Corporations with

    established crisis management teams are able to communicate and effectively respond in

    the event of a crisis.

    Crisis Management Team

    -Defnition

    + crisis management team is set up to respond immediately to warning

    signals of crisis in an organi#ation and protect it against the adverse effects, as well as

    eecute relevant plans to overcome emergency situations.

    Their purpose is also deciding on future course of action and devising

    strategies to help organi#ation come out of difficult times as soon as possible.

    +ccording to Coombs -/, %a crisis management team is a cross&

    functional group of people within the organi#ation who have been designated to handle any

    crisis'.

    -Members

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    + crisis management team consists of individuals from senior

    administration, technical operations, public affairs, public relations, consumer affairs,

    investor relations, and advertising. In other words, the crisis management team should

    involve personnel from all departments in the organi#ation.

    Employees who are members of a crisis management team must possess

    effective communication and management s!ills. These s!ills allow team members the

    opportunity to facilitate and echange ideas among the organi#ation$s diverse departments,

    monitor !ey assumptions that may influence the belief system of the crisis plan, obtain

    employee opinions on potential crisis and crisis management, and encourage novel

    eperiments that could benefit the organi#ation in preparing for a crisis 0auchant and

    Mitroff, -1/.

    -Role

    +cceptance that a crisis has occurred and ma!ing an appropriate response to

    it is fundamental to crisis management.The crisis team is appointed to ta!e charge of the

    situation immediately,success in beating the crisis depends on crisis team ability.It is also

    very important to have a unified version and strategy of who presents it.

    They focus on detecting the early signs of crisis, identifying the problemareas, discussing the identified areas of concern face to face with employees and finally

    preparing crisis management plan for emergency situations and net crisis. The crisis

    management team would also prepare a brief for the board of directors and for the rest of

    the business. This is often done with the help of affairs department or e"uivalent/, as the

    brief also forms the basis of a common message, communicated to appropriate eternal

    organi#ations including the media/.

    2nce an organi#ation is viewed in a negative viewpoint, the reputation andthe overall survival of the company may be at ris!. 3enior officials within the corporation

    will often attempt to communicate with the media, the general public, and !ey sta!eholders

    in order to appear as having controlled or contained the crisis. Communication presents

    various challenges in the containment phase of a crisis. 4or eample, not only are !ey

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    sta!eholders informed, progress reports must be the provided, and any actions ta!en by the

    crisis team must be reported Coombs, -/

    Roles of managers within the crisis management team should be based on

    their everyday roles. The leader maintains the cohesiveness of the team and establishesbasic principles of crisis management for the team.

    Crisis Manager

    -Defnition

    (arton 155-/ suggests %today$s organi#ational leaders must be able to

    recogni#e, anticipate, manage, and formally prepare for a crisis'.

    + leader must institutionali#e the process of crisis management to anticipate,

    prepare and mitigate an imminent crisis. To ensure an effective crisis management

    mechanism leadership support and involvement is absolutely essential.

    +nticipating crisis is a matter of strategic planning and ris! management, buteach crisis that manifests itself, must be dealt with adeptly by leaders, who also must

    consolidate the lessons learnt and communicate the same to the people as organi#ational

    learning and thus drive sense for initiating change in the organi#ation.

    -Role

    6eaders and managers play an etremely important role during crisis. 2ne

    should lead from the front, show confidence and steadiness and ta!e complete charge of the

    situation, should have full control of his employees and be alert at the wor!place. + leader

    should be able to feel the early signs of crisis and warn the employees against the negative

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    conse"uences of the same. It is his duty to ta!e precautionary measures to avoid an

    emergency situation. + leader should be able to foresee crisis. 6eaders should strive hard to

    come out of tough times as soon as possible. 6earn to ta!e ris!s. Clarify the roles and

    responsibilities of the individuals during this time. 2nce the organi#ation is out of crisis, it

    is the leader$s duty to communicate the lessons learnt so that employees do not commit

    same mista!es again.Don$t avoid sta!eholders, eternal parties and most importantly media. It is

    necessary to meet them and eplain the whole situation. Ignoring people ma!es things

    worse. Develop strong partnerships with eternal parties and as! for

    help.http788www.managementstudyguide.com8role&of&leaders&in&crisis&management.htm

    -Eective crisis managers

    +ccording to 9arvard (usiness 3chool professor Daniel :oleman, leaders

    with emotional intelligence competencies such as empathy, self&awareness, persuasion,

    teamwor! s!ills and the ability to manage relationships/ are effective leaders. 3uch s!ills

    would be important in crisis management.

    :ibson 1555/ noted under conditions of a crisis, charismatic leadership is

    li!ely to emerge. In this situation, a leader is given the power to do what is necessary to

    solve the crisis. 3uch tactics might include empowering followers, contacting outside

    agencies, or directly eliminating the crisis.

    (ased upon this information, crisis management teams whose leader

    demonstrates a charismatic style of leadership may be more effective in controlling and

    eliminating an organi#ational crisis.

    Conclusion

    Crisis leadership research concludes that leadership action in crisis reflects

    the competency of an organi#ation, because the test of crisis demonstrates how well the

    institution$s leadership structure serves the organi#ation$s goals and withstands crisis.

    http://www.managementstudyguide.com/role-of-leaders-in-crisis-management.htmhttp://www.managementstudyguide.com/role-of-leaders-in-crisis-management.htm
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    Developing effective human resources is vital when building organi#ational capabilities

    through crisis management eecutive leadership.

    Crises or disasters can stri!e at any time. They are most devastating when

    sudden, but slower events can be cumulative and ;ust as damaging. *hen crises happen,there needs to be a practiced plan that ensures a positive, focused and effective response.

    During a crisis there tends to be confusion, uncertainty and even fear. + crisis management

    plan generates order out of chaos. It needs strong leadership by well&trained and rehearsed

    individuals. Everyone within an organi#ation should !now what his or her role is in a crisis.

    Re$eren#es

    http788www.managementstudyguide.com

    http788webarchive.nationalarchives.gov.u!8

    Thomson 6earning, Cincinnati, 29/.

    Coombs, *. T.7 -, 2ngoing Crisis Communication7 0lanning, Managing,

    and Responding 3age 0ublications, Thousand 2a!s/.

    Crisis Management ? Team Effectiveness7 + Closer Eamination @ing,

    :ranville. Aournal of (usiness Ethics, 1551

    :ibson, 1555, 2rgani#ations7 (ehavior, 3tructure, 0rocesses Irwin

    Mc:raw&9ill, (oston, M+/.

    6ER(IB:ER, 2tto. The Crisis Manager. 4acing disasters, conflicts, and

    failures. 1nd ed. Routledge.

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    0auchant, T. C. and I. I. Mitroff7 -1, Transforming the Crisis&0rone

    2rgani#ation7 0reventing Individual, 2rgani#ational, and Environmental Tragedies Aossey&

    (ass 0ublishers, 3an 4rancisco, C+/.