Crisis management

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An organizational crisis is described as a rare, high-impact event that jeopardizes the organization's survival. It is marked by uncertainty regarding the cause, effects, and solutions, along with the need for rapid decision-making[1].

Crisis management is the process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders.[2] The study of crisis management originated with large-scale industrial and environmental disasters in the 1980s.[3][4] It is considered to be the most important process in public relations.[4]

Three elements are common to a crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time.[5] Venette argues that "crisis is a process of transformation where the old system can no longer be maintained".[6] Therefore, the fourth defining quality is the need for change. If change is not needed, the event could more accurately be described as a failure or incident.

In contrast to risk management, which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats before, during, and after they have occurred. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures start.

  1. ^ Sherman, W. Scott (2018). "Crisis? What Crisis? Strategic Crisis Management, and the GM Ignition Switch Crisis". SAM Advanced Management Journal. 83 (1): 41–50. ProQuest 2708789991 – via Proquest.
  2. ^ Bundy, Jonathan; Pfarrer, Michael D.; Short, Cole E.; Coombs, W. Timothy (2017). "Crises and Crisis Management: Integration, Interpretation, and Research Development". Journal of Management. 43 (6): 1661–1692. doi:10.1177/0149206316680030. S2CID 152223772.
  3. ^ Shrivastava, Paul; Mitroff, Ian I.; Miller, Danny; Miclani, Anil (1988). "Understanding Industrial Crises[1]". Journal of Management Studies. 25 (4): 285–303. doi:10.1111/j.1467-6486.1988.tb00038.x.
  4. ^ a b ASIS International, "Organizational Resilience: Security, Preparedness, and Continuity Management Systems-Requirements with Guidance for Use, ASIS SPC.1-2009, American National Standard", 2009
  5. ^ Seeger, M. W.; Sellnow, T. L.; Ulmer, R. R. (1998). "Communication, organization and crisis". Communication Yearbook. 21: 231–275.
  6. ^ Venette, S. J. (2003). Risk communication in a High Reliability Organization: APHIS PPQ's inclusion of risk in decision making. Ann Arbor, MI: UMI Proquest Information and Learning.