Crisis management involves dealing with unexpected events that disrupt an organization. A crisis can arise due to technological failures, employee disagreements/violence, neglecting issues, or financial problems. Effective crisis management requires analyzing potential risks, responding quickly to changes, communicating well, and having leaders guide the organization out of uncertainty. It involves four stages: warning signs, the crisis event, resolution, and reflection. Planning is key and includes identifying risks and discussing concerns. Leaders must take control during a crisis and prevent panic by interacting with employees and maintaining hope.

1. Crisis
Management

2. A sudden and unexpected event leading to major unrest amongst the
individuals at the workplace is called as organization crisis. In other
words, crisis is defined as any emergency situation which disturbs the
employees as well as leads to instability in the organization.
Crisis

3. Why do crisis arise?
Technological failure.
Disagreement and violence among employees.
Neglecting minor issues in the beginning.
Inappropriate behaviors such as accepting bribes, frauds, speculation.
Financial inability or bankruptcy.

4. Crisis Management
The art of dealing with sudden and
unexpected events which disturbs
the employees, organization as well
as external clients refers to Crisis
Management.

5. Types of Crisis
Natural crisis
Technological
crisis
Confrontation
crisis
Crisis of
Malevolence
Crisis of
Organizational
Misdeeds

6. Types of Crisis
Crisis Due to
Rumors
Bankruptcy
Crisis Due to
Natural
Factors
Sudden Crisis
Smoldering
Crisis

7. Need for Crisis
management
To face unexpected and adverse situations
in the organization efficiently.
To adjust well in the sudden changes in
the organization.
Help managers devise strategies to come
out of uncertain conditions and also
decide on the future course of action.

8. Features of crisis
managementAnalyze and understand events which might lead to crisis and uncertainty in the
organization.
Respond effectively to changes in the organization culture.
Effective monitoring systems and coordination amongst the departments to overcome
emergency situations.
Effective communication.
Avoiding rumors.
Prompt response and adaptability to changes.

9. Crisis Management: Four
Stages
Prodromal Crisis Stage
Warning—precursor
Symptom —precrisis
Acute Crisis Stage
Point of no return
Crisis has occurred
Crisis Resolution Stage
Patient is well/
whole again
Chronic Crisis Stage
Lingering on—perhaps
indefinitely; period of self-
doubt; self-analysis

11. Crisis Management
Model
Diagnosis
of crisis
Planning
Adjusting
to changes

12. Crisis Management
Plan
Crisis Management Plan refers to a detailed plan
which describes the various actions which need
to be taken during critical situations or
crisis.

13. Importance of crisis management plan

14. How to make Crisis Management
Plan
Identify factors
that may lead to
crisis
Discuss issues
and areas of
concern amongst
yourselves on an
open forum for
everyone to share
their opinion.
Ensuring accuracy
of information

15. Role of
Leaders/Manager in
Crisis Management

16. Role of Leader
One should lead from the front.
Managers should have full control on the employees.
One should be alert at the workplace.
Leaders must try their level best to prevent crisis.
Ask the employees not to panic at the time of crisis.
The leaders should interact with the employees more often.
Planning is essential to avoid emergency situations.

17. Role of Leader
Identify the important processes and systems which should keep
functioning.
Don’t let negativity creep in the organization.
Never lose hope.
Leaders should strive hard to come out of tough times as soon as
possible.
Don’t avoid stakeholders, external parties and most importantly media.

18. Successful Crisis
Management Stories
Tylenol (Johnson
and Johnson)
Pepsi

19. Unsuccessful Crisis
Management Story
Bhopal Gas
Tragedy
Exxon