Crisis management in a broad sense includes two situations
1) After the crisis, which is a traditional view of crisis management. In this situation, managers try to reduce the effects of losses and failures.
2) Before the crisis, which is a modern point of view in facing these conditions. In this case, the managers make the necessary plans to face unknown and possible critical situations so that in case of problems, financial losses or even lives are minimized in the future.
Organizational crisis is a situation in which the organization’s relationship with the surrounding environment or even the internal situation of the organization is out of balance. This situation can have different forms such as economic stagnation, loss of financial resources, ban on import and export of some goods, loss of human resources, change in political conditions of the country, etc.
The probability of occurrence of such crises is low and they have a lot of impact, which reduce the work efficiency of the institution. Although the cause of these crises is often unclear, they do not occur suddenly and unpredictably, and there must have been warning signs before their occurrence.
When a complex is in an ideal situation in terms of crisis management, it can prevent possible risks and minimize its possible destructive effects and even turn existing threats into opportunities.
Types of Crises
1. Urgent: This type of crisis cannot be predicted and occurs all at once; Therefore, organizations are not able to plan in advance to control them. Such crises have deep internal and external effects on the organization.
2. Gradual: These kinds of crises occur gradually and over time, that’s why they can be prevented with prior planning and the destructive effect caused by them can be controlled.
Several criteria can be used to identify and classify crises; such as threat, time phase and intensity of events. These three criteria will guide managers to recognize when a problem will become a crisis in the organization.
It is the effort of internal forces to prevent the occurrence of a crisis or to reduce the effects of a crisis after it occurs. If the crisis management is after the occurrence or during it, we should focus on the published news related to the crisis, form a management team and provide reports indicating the existing problems and actions taken.
But in crisis management, before it occurs, we predict possible risks, plan to control them, form a management team, and they learn the necessary training, and finally, they expose their learning in an experimental way.
The Necessity of Crisis Management
Although the existence of management ability in times of crisis in organizations is important, but this category cannot be limited to organizations. We live in a world called a global village. Any unexpected and negative event in this village can include many parts such as the embargo of a country, the crash of an airplane, the decrease in the monetary value of a country. In such a situation, crisis management shows its importance more than before.
Because the organization and maintenance of domestic and international relations, staying safe from various threats, all depend on the correct management of the existing conditions.
Benefits of Crisis Management
Organizations with strong crisis management can:
- establishing working and effective relationships with news agency networks and having people to help them in conveying news.
- full preparation for legal claims.
- provide accurate and timely information when necessary.
- increasing organizational commitments when facing a crisis.
- reducing the impact of critical cases on the organization.
To sum up
Crisis management is a series of preferably preventive measures for possible risks and threats that reduce the harmful and destructive effects of the crisis. This process helps us to know the stage of the existing risks and plan to deal with them and take correct and effective measures.