Question

In: Operations Management

Question: What is crisis management? What distinguishes crisis management from management during ordinary business conditions? What...

Question:

What is crisis management? What distinguishes crisis management from management during ordinary business conditions? What are some principles for leading companies effectively during a crisis?

Your answers will be short essays and should be three full paragraphs or longer.

Solutions

Expert Solution

There are many changes that are taking place in the external as well as internal environment of an organization. changes may be positive or Negative which is uncertain and unpredictable in nature.

Crisis management is the process by which an organization deals with these kind of uncertainties which can hamper the growth of the organization and its related stakeholders.

To understand the difference between Crisis management and ordinary management, lets understand it wit a simple example.

A ship in an ocean. Simply steering it and giving it right direction is an example of ordinary management. But if ship get crashed with an iceberg same as in case of titanic, saving lives of peoples more and more in numbers is an example of crisis management.

Lets compare both with some more points:

1. Continuity : Ordinary management are based on schedules and are continuous in operation during the office hours while business continues, while during crisis management, all top executives drop all their scheduled work and work for a single priority towards crisis that can even stop the business continuity.

2.Cost : In ordinary management the main focus to to reduce the potential costs and earn profit , While in crisis management the main focus is to prevent lives of employees, prevent the company from being being affected at any cost.and this cost does not included in yearly budget.

3.Certainity :In ordinary management , there are previous data and analysis work , on basis of which decision is made, of which results are most certain in nature. but in case of crisis management , Decision are made Without any availability of previous data and results are mostly uncertain in nature.

4.Choices : During ordinary management, there are more alternative to work on , to discuss and then reach to a final Decision, while crisis management includes very less number of Alternatives and very less time to decide.

Some principles that most leading companies follows during a crisis are as follows:

1.Speedy Decisions : Management should made quick and easy Decision to either minimize the effect during crisis or can save an organization from being effected from a crisis.

2. Creativity : when things getting worsen and situation out of control, more creative ideas need to be addressed by the crisis management team to deal with the situation, as every situation is different and does not have theories and techniques to deal with every specific situation available in any book or internet.

3.Continuously frame the crisis: During a crisis, management should not only depend on a single Decision , but management decision to be flexible with all the incoming information about the crisis from authenticated source.management should re-Analyses the plan and remake the plan as per the information received and current situation.


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