How Does Captive Insurance Work?
Insurance companies are very different from other companies. Other companies have to pay upfront for buying raw materials. They get paid later when they finally sell the product. Also, the difference between their selling price and their buying price is termed as profit which they have to pay taxes upon. On the other hand, insurance […]
Personal Grooming Tips for Women
Personal grooming refers to an art which helps individuals to clean and maintain their body parts. Human beings need to wash, clean their body parts to look good and for personal hygiene as well. Personal grooming helps in enhancing an individual’s self esteem and also goes a long way in developing an attractive personality. Personal […]
Functioning of the Long-Term Memory
Long term memories last for a longer period of time as it has the capacity to store information for a relatively longer period of time and retrieve the same whenever required. Some of the important facts related to long term memory which should be known are provided below: Long term memories usually remain out of […]
Importance of Communication in an Organization
Effective Communication is significant for managers in the organizations so as to perform the basic functions of management, i.e., Planning, Organizing, Leading and Controlling. Communication helps managers to perform their jobs and responsibilities. Communication serves as a foundation for planning. All the essential information must be communicated to the managers who in-turn must communicate the […]
Decision Making in a Confusing World
Trust, But Verify! Decision Making in an Information Overload Scenario From the time we wake up to the time we finish for the day, we are bombarded with all kinds of facts, opinions, news, and views. In this context, the key imperative is to how to decide on anything to do with our daily lives […]
Crisis refer to unplanned events which cause harm to the organization and lead to disturbances and major unrest amongst the employees.
Crisis gives rise to a feeling of fear and threat in the individuals who eventually lose interest and trust in the organization.
Gonzalez-Herrero and Pratt proposed a Crisis Management Model which identified three different stages of crisis management.
According to Gonzalez-Herrero and Pratt, crisis management includes following three stages:
The first stage involves detecting the early indicators of crisis. It is for the leaders and managers to sense the warning signals of a crisis and prepare the employees to face the same with courage and determination. Superiors must review the performance of their subordinates from time to time to know what they are up to.
The role of a manager is not just to sit in closed cabins and shout on his subordinates. He must know what is happening around him. Monitoring the performance of the employee regularly helps the managers to foresee crisis and warn the employees against the negative consequences of the same. One should not ignore the alarming signals of crisis but take necessary actions to prevent it. Take initiative on your own. Don’t wait for others.
Once a crisis is being detected, crisis management team must immediately jump into action. Ask the employees not to panic. Devise relevant strategies to avoid an emergency situation. Sit and discuss with the related members to come out with a solution which would work best at the times of crisis. It is essential to take quick decisions. One needs to be alert and most importantly patient. Make sure your facts and figures are correct. Don’t rely on mere guess works and assumptions. It will cost you later.
Employees must adjust well to new situations and changes for effective functioning of organization in near future. It is important to analyze the causes which led to a crisis at the workplace. Mistakes should not be repeated and new plans and processes must be incorporated in the system.
According to structural functions systems theory, communication plays a pivotal role in crisis management. Correct flow of information across all hierarchies is essential. Transparency must be maintained at all levels. Management must effectively communicate with employees and provide them the necessary information at the times of crisis. Ignoring people does not help, instead makes situations worse. Superiors must be in regular touch with subordinates. Leaders must take charge and ask the employees to give their best.
Diffusion of innovation theory proposed by Everett Rogers, supports the sharing of information during emergency situations. As the name suggests during crisis each employee should think out of the box and come out with something innovative to overcome tough times. One should be ready with an alternate plan. Once an employee comes up with an innovative idea, he must not keep things to himself. Spread the idea amongst all employees and departments. Effective communication is essential to pass on ideas and information in its desired form.
Unequal human capital theory was proposed by James. According to unequal human capital theory, inequality amongst employees leads to crisis at the workplace. Discrimation on the grounds of caste, job profile as well as salary lead to frustrated employees who eventually play with the brand name, spread baseless rumors and earn a bad name for the organization.
Your email address will not be published. Required fields are marked *
Chain of Command, Business Continuity Planning, and Crisis Leadership in Corporates
February 12, 2025
