Crisis management, HR Management

Crisis Management

Obviously, any company hopes not to countenance "situations causing a major business disruption which arouses extensive media coverage" (crisis). The public assessment that is a consequence from this media coverage frequently affects the usual operations of the company and can have a (negative) financial, legal, political and governmental impact. Extensive value destruction is to be feared of, particularly when the crisis is not managed well in the view of the media / public opinion. Crisis management handles with giving the right crisis response.

Some generic help and hints on crisis management

1. Prepare emergency plans beforehand (crisis management team and members can be created at very short period of time, rehearsing of crises of several types)

2. Instantly and clearly announce internally that the only persons to talk about the crisis to the external world are the crisis team members)

3. Move rapidly 

4. Use crisis management advisors (advice by objectivity of PR advisors is significant)

5. Give precise and right information (remember that trying to influence information will critically backfire if it is revealed, also internally!)

6. When deciding upon events and actions, take not only the short-term losses, but center also on long term effects.

Managers at all levels of the organization are worked to manage crises and often do so on a regular basis. Their skills are really checked when they have to deal with significant crises that have the potential to disturb the organization's value creation process, operating expenses, income sources, competitive position, stock price and ongoing business.

The effective crisis management takes place when potential crises are investigated and dealt with rapidly - before they can affect the organization's business. In those cases they never come to the notice of the organization's key stakeholders or the common public through the news media. 

Creating a Business Continuity Plan

In cases where the crisis already has exploded, or it is predictable the crisis will affect the organization's key stakeholders, a business continuity plan is useful to lessen the damage and disruption. Designing such a plan can seem as a daunting task, but in reality it is a common-sense task. It includes finding those functions and procedures that are important to the business, then developing the operational and communications emergency plans to deal with the potential failure of one or most of them and how key stakeholders will act when they find it out. A significant element that is at times overlooked is to examine the Business Continuity Plan.

Corporations with business continuity plans will be in a superior position to reduce the business impact and financial harm. Most of that, executives may discover that the process of developing these plans also has a roundabout advantage. Their organizations are highly sensitive to probable crisis conditions that could disturb the business and affect its profits, operating expenses and overall growth. Consequently their managers react more rapidly and efficiently to head them off. 

Posted Date: 7/24/2012 3:45:34 AM | Location : United States







Related Discussions:- Crisis management, Assignment Help, Ask Question on Crisis management, Get Answer, Expert's Help, Crisis management Discussions

Write discussion on Crisis management
Your posts are moderated
Related Questions
What are the development phase of Human resources management concept?


Q. Conduct of the enquiry? Conduct of the enquiry: this step should deal with three points: 1. Deciding as to who should be the enquiry officer. 2. Deciding as how to pro

Ask Identifies Users of HR Services 1. Identifies at least 3 users of HR services internal to your organisation and for each of them at least 2 key needs 2. Explain how HR can en

Q. Conference method? Conference method: under this method a conference is held in accordance with an organized plan. Mutual problems are discussed are participants pool their

reason why some companies don''t pay sufficient attention to staff induction

Explain the techniques of Data mining Data mining techniques used have to be specific to the domain and also depend on the area of application. Important requirements are that

Identifies 3 users of HR services internal to your organisation and for each of them at least 2 key needsd#

Q. Show External source of recruitment? External source: organizations may look people outside it. Entry level jobs are usually filled by new entrants from outside. Also in the

Leadership Leadership is an influence process directed at shaping the behaviour of others. When they lead managers seek to make (influence) their subordinates to willingly foll