No matter how well the company is run during normal business conditions crises are large-scale, unexpected, severe negative developments that are very likely to cause immediate chaos. (Warjas, 2002). It poses a real risk to a company's success, standing, image, and occasionally even survival. As a result, disasters have the power to fundamentally alter an organization. An organization may receive a call telling them that one of their buildings is on fire. It might also be a call to inform the business that hundreds or even thousands of people have become ill because of one of their goods in a specific location. Real crises often attract attention from apparently all over demanding for answers. It is therefore important to do crisis management Crisis management is described as the minimization of the deleterious consequences of a severe crisis using the available limited resources under extreme time limits (Coombs, 2007). Damage control remains the most common aspect of crisis management since its real essence is far beyond “fire extinguishing.” The rationale for crisis management is to cultivate the possible successes footling amid the pitfalls done by careful planning, decisive execution and good luck (Warjas, 2002).
Stages of Crisis Management
Crisis management has three main stages, these are pre-crisis, when the crisis hits and after the crisis. Stage one, which is the pre-crisis stage is the most crucial and thus requires a lot of effort since it requires planning and prevention. Adequate preparation and forethought in addition to wisdom and experience are effective for crisis management (Andrianopoulos, 2015). When the crisis hits, which is the stage two, it is important to recognize that there is a problem. Most of time organizations have the tendency to believe that things are not that serious. It’s always likely that things are more serious than they are thought to be till things blow over. The final stage is stage three which is after the crisis, also referred to as “after the smoke.” Proper planning and effective crisis management mean not letting go just immediately after the crisis has passed (Andrianopoulos, 2015).
Crisis Management Models
Crisis management in broad terms and simple terms as the ‘4Rs’ which is a four-stage process of reduction, readiness, response and recovery (Evans & Elphick, 2004). However, there are a number of models and conceptualizations exist relating to the crisis management. There are seven major crisis models which include Caplan’s, Arnold’s, Clarke and Varma, Model of Crisis Management, Process Model of Crisis Development, The Crisis of Life Cycle and Slatter’s Crisis Susceptibility Model.
Caplan’s Crisis Model
The model was advanced by Caplan in the year 1961. It gave crisis management a psychological perspective where it is centered on the way an individual cope with a crisis. One of the major limitations of the model is that it descriptive and does not have precision. Further, the most significant criticism of this model is that it has homeostatic characteristics (Evans & Elphick, 2004).
Arnold’s Model of Crisis
Advanced by Arnold in the year 1980 and looks at crisis management from a sociological perspective by looking at the way in which different communities react to crisis (Evans & Elphick, 2004). The model’s sociological perspective is a limitation since it only concentrates on the sociological view and is centered on the individual’s relation to a given group. The way an organization views a given crisis may be different from the way an individual views the same crisis.
Clarke and Varma
The model was advanced in the year 2004 by Clarke and Varma and demonstrates risk management as a strategic process (Evans & Elphick, 2004). Even though it presents it as a strategic process, it is difficult to operationalize in real life situations.
Model of Crisis Management
Developed by Smith in 1990 and Sipika in 1993 and demonstrates a process from the start to finish of a crisis. The fact that the process is described from start to finish, this presents its limitation since it may be too general and descriptive too.
Process Model of Crisis Development
Advanced by Booth in the year 1993 and seeks to identify the various features that appear to be common in several crises. One limitation is that it is too general and simple since every crisis is unique with regards to the specific causes and effects involved.
The Crisis Life Cycle
A model advanced in the year 2000 by Seymour and Moore and studies the obstacles to decision making when there is a crisis (Evans & Elphick, 2004). It can be tailored to fit any organization even though it's too descriptive and general which is one of its main limitations.
Slatter’s Crisis Susceptibility Model
The model was developed by Slatter in 1984 and gives an economic approach to crises. Instead of being a process like in other models, this model is just states the factors that may bring about crises within an organization. It only indicates the factors that are vulnerable to crises within an organization.
Crisis Management Theories
Diffusion of Innovation Theory
Diffusion Innovation theory, unlike other theories, supports the idea of sharing information when there is an emergency (Rogers, 1995). The theory was proposed by Everett Rogers. It requires that when there is a crisis then it's up to each and every employee to think out of the box and come up with something innovative to get over the crisis. Therefore, it is important that employees share their ideas once they have come up with them. Effective communication is crucial for the ideas to be communicated across all the departments in the desired form (Rogers, 1995).
Unequal Human Capital Theory
The theory war proposed by James and according to the theory, a crisis within a workplace can be brought about by inequality amongst the employees (Singh & Chahal, 2015). Discrimination that may be based on things such as job profile and even salary result in frustration in some employees who then spoil with the brand name. This eventually results in the organization earning a bad name.
Structural Functions Systems Theory
Communication plays a central role in the management of a crisis. It is important to have the right flow of information across all the hierarchies within an organization (Singh & Chahal, 2015). Further, it is crucial to uphold transparency at every level of the organization's management. In this regard, at times of crisis, the management should communicate with the employees and offer any essential information in an effective manner. It's important not to ignore any persons since ignoring people may make the crisis situation even worse. It's therefore important for the leaders to take charge and urge the other employees to put their best foot forward.
References
Andrianopoulos, A. (2015). Essential Steps for Crisis Management and Crisis Containment. The American College of Greece.
Coombs, W. T. (2007). Crisis Management and Communications.
Evans, N., & Elphick, S. (2004). Models of Crisis Management: An Evaluation of Their Value for Strategic Planning in the International Travel Industry. Newcastle: Northumbria University.
Rogers, E. M. (1995). Diffusion of Innovations (4th ed.). New York: The Free Press.
Singh, P. P., & Chahal, H. S. (2015). Reactive Crisis Management Model. Journal of Research in Business, Economics and Management, 250-251.
Warjas, M. A. (2002). Effective Crisis Management: Grace Under Pressure. Chicago: KMZ Rosenman.
