Question

explain in detail what crisis management plan is and why it is important for every firm to have one?

500 words/ 2 references in APA format

Answer 1

Crisis is generally and emergency situation that an organization may experience that may lead to unexpected and major uncertainties for the business and it may cause the business to suffer quite a bit of loss or unexpected conditions which will impact the business negatively. I believe that this is a common phenomenon an organizations need to be well prepared and ready for such unexpected situations so that thy are ready and quite capable of handling such situations. Now the question is how to deal with such situations and the answer is simple because the organizations need to have a crisis management plan that is a proper documented plan that will help the organization deal with such issues and make the organization's environment back to what it was so that it can again compete in the industry.

Crisis management plan is generally the step by step approach that organizations need to adopt in case of such situations because solutions will not be provided by panicking in such situations hence it would be better for organizations to understand the approach that is available and act accordingly. Firstly, the employees need to be aware of the plan and approach they need to follow. Secondly, the management and employees need to understand that the reputation of the organization is at stake and hence they need to be effectively working with the plan to overcome such situations. thirdly, this plan helps the managers in taking quick decisions based on the situation. Lastly, the instability and uncertainty created will be reduced to quite some extent.

In order to create a crisis management plan the organization needs to be aware of the primary problem and the issue that are related and may affect the organization. Such issues should be analyzed by the management, employees and may even be shared on open forum for discussion and solution for the betterment of the organization. The objective of the crisis management plan is not only to take care of the present emergency situation but also make sure that such situations are not repeated in the past at all.

References

Bundy, J.; Pfarrer, M. D.; Short, C. E.; Coombs, W. T. (2017). "Crises and crisis management: Integration, interpretation, and research development". Journal of Management.
Shrivastava, P. Mitroff, I.I., Miller, D. and A. Miglani, " Understanding industrial crises".Journal of Management Studies, 1988