10/04/ · Crisis Management Plan. A crisis is any event that causes disruption of a company`s operation or business function for a period beyond the acceptable downtime. Management 8 MANAGEMENT TURNOVER CRISIS Sometimes change in the organization management is considered as a type of crisis. Some companies think about their CEOs as indispensable, or In crisis management much like in risk management, a sense of urgency needs to be created from top management. This helps to place authority on plans and process to be followed with
Crisis Management Essays | WOW Essays
Home — Essay Samples — Business — Strategic Management — Crisis Management Plan. Numerous studies have been conducted on various facets of crisis management plan focusing on the dynamic of business environment that is constantly being confronted by many issues both internal and external. However, the essay identifies crisis that pose a direct threat crisis management essay the progress of companies in the financial industries. Regardless of the nature of a crisis; either small or big, any crisis cause by human or natural induced could have a far greater impacts towards the company. Hence, the essay discusses both the external and internal factors that result to crisis in an organization.
And further, develops a crisis management crisis management essay that explains the few challenges that an organization management team faces while implementing the crisis management plan. Factors That Cause Crisis A financial institution such as the commercial banks plays a crucial role in the financial stability and economic development of a countries or business organizations; therefore it is important to differentiate between the internal and external crisis that may have factor in the operation of a financial institution. However, managers and business owners crisis management essay not directly influence the internal crisis that may affect their businesses and crisis management essay they handle it or adjust to these crises have a major impact on the success of their businesses.
Financial institution should strive to minimize both the internal and external factors that may cause a crisis in the organization. Over the decades the improvement in digital landscape has increased the escalation in cyber-attacks in most business organizations. As such management strives to protect their valuable information, reputation, brand and customers by preventing any internal or external factors that may cause a crisis in the organization. Consequently, attention paid to internal and external factors may pull management focus from the primary tasks in the organization, crisis management essay. This could result into loss of productivity, which can lead to the loss in the profit margin, crisis management essay.
The existing factors that may cause a crisis in a financial institution can crisis management essay categorized into two; internal and external factors. The Causes of the Internal Factors The internal factors that take place within organization involved internal stakeholders and lack of other resources, crisis management essay. The internal factors comprise of lists of things within the organization that may cause a potential crisis to arise. Unlike the external factors, internal factors can be controlled by the management. Managing internal factors that may cause organization crisis is key to business success since the management can actually manage these factors.
The management plays a very essential role in the internal factor that may lead to crisis. These internal factors may include; Leadership factors; leadership refers to the individual in an organization that makes all the important decisions that concern the operation of the business including financing, sales, budget, human resource and marketing Booth, The leadership styles of a business can greatly affect the performance of the organization either negatively or positively. Poor leadership can results into lack of strong visionary who is unable to properly manage the employees; crisis management essay result to internal crisis that may greatly affect the success of the business.
Ensuring that your employees have the right skills to perform the job is essential to your organization success. Funding factors, lack of money in any organization can determine whether the company will survive or close it operation. For example, when your cash resources are too limited, it affects all levels of your organization functionalities. Culture factors, culture consists of the values, attitudes, crisis management essay behaviors that the employees live by. For example, crisis management essay, if you create a culture that every employee competes with one another it is a recipe for internal, but if you emphasize collaboration and teamwork it serve the desire result. Communication factors are informational strategy form part of the administrative procedures of an organization which may include poor or inaccurate record keeping.
It may also include outdated or faulty IT systems. These factors affect the organization ability to achieve its goals and objective. These factors pose a threat that can alter how potential customers perceive the organization, crisis management essay. Internal cyber-hacking crime; some employees may leak internal data that may lead to the potential crisis that could threaten the future of the organization, crisis management essay. It quite difficult for management to believe that employees would sabotage the organization data The Cause of External Factors The external factors occur outside the organization, which influences the smooth operation and success of the business.
Unlike the internal factors, management has no control over external factors; but they must try to anticipate plan and adjust to these crises should in case they occur. A good example of an external factor includes; cybercrime or hacking, hackers could get access to the organizational system unnoticed and extracting or sabotage critical information and date. The attempt could cause devastating risk that would result in the major crisis that would affect the business performances. Market risk factors, is also a major factor that would result in a potential crisis.
Customer factors, customers are unpredictable and uncontrollable. Customers can positively or negatively affect the business reputation and business should ensure that customers are well satisfied with the product or service afforded. Business risk, business risk is the possibility that a financial institution would experience lower profit than anticipated or it will earn a loss rather than a profit. Management planning is a plan for and responds to internal and external factors that pose threat to a business such as mention above, crisis management essay. Therefore organization should have strategic plans in placed as to ensure smooth transition from the effects of the crisis to normalcy. Therefore, it is very important for managers to focus not only on when and how crisis could occur.
To minimize such unanticipated impact on the organizations requires reasonable crisis management practice. In other word, the elements develops and discusses the five phases of crisis management plan but has categorized the phases in three classes. However, for better analysis and understanding, Crisis management essay have summed up the phases into three groups. This includes crisis management, the second category is referred to as operational crisis team and the final category is referred to as crisis of legitimation. Management Crisis This division of people will often encompass the first three phases of the crisis management plan. That is signal identification, preparedness, and prevention phases.
Therefore, this stage intent to bring about situations that poses a threat to the survival of an organization thus places the organization under what is referred to as time extreme pressure. However, this phase occurs when a management team fails to consider the imminent situation that is about to occur that can pose a threat to the survival of the business. The important aspect in this stage is effective communication, great culture value and the decision making process and how they generate vulnerability. Failure by the management team to respond to incidents in a reasonable manner could possibly lead to a potential crisis. Therefore, organization should understand that any minor issue should be highly tackled as it could result to catastrophic failure in the organization.
The organization should be able to identify signals that could result to potential crisis and the organization crisis management essay be prepared to handle the issues and possibly come up with strategies that can be adopted to prevent the crisis from developing further hence minimizing the effects posed by the crisis. Consequently, such issues will reflect in the failures of the contingency plans that address the scope and scale of the issues faced by the organization in its operational phase of any crisis. Operational Crisis The Second category as referred to Operational Crisis is a result of the escalation of a problem to a point where the damage has resulted crisis management essay damage the reputation of the organization or has threatened the organization reputation, crisis management essay.
This phase is characterized by human management in the reduction of the impacts faced by the organization due to the escalation of the crisis. This phase of the crisis management plan is by far the most visible and important as it indicates the damages already caused R. Consequently, this phase requires additional resources to contain the intent demands of the events, and eventually return the company to normal operation. This phase is also characterized by the role played by external factors that in most cases act as rescuers who take short term control of the damaging event until situation lowered to a more manageable level by the management processes of the organization.
In case the events have resulted to complete loss of business, this is the phases where all evidence is collected for further analysis. Due to the nature of the threat and effects causes, the crisis will often not end at this stage but could escalate further to a reputational building. Consequently, crisis management essay, the operational crisis stage crisis management essay often address issues that are as a result of an occurrence of damage due to the escalation of a problem to become a crisis. This creates an opportunity for the management team to come up with strategies that can be used by the organization to tackle future crisis that occurs in the first stage of crisis management plan.
In this stage the company will try and crisis management essay the already damage image towards its internal and external stakeholders. The company will take precaution and crisis management essay measures thus restoring confidence among its partners, customers and stakeholders. In this phase most companies will often utilize the recovery and learning process to identify the factors that resulted to the escalation of the crisis and come up with strategies by which the management team can improve for the future use. Hence, learning can be described as an integral aspect of a crisis where companies try to learn from their crisis management essay mistakes as a guiding action plan.
Further, the company could improvise feedbacks both positive and negative on their performance in regards to the crisis and help in developing a better action plan Vardarlıer, Challenges Considering the crisis management plan phases, it is quite difficult to understand or determine the most challenging phases an organization faces when dealing with a crisis. However, analyzing these phases independently, the last two stages; the recovery and learning which can be quite challenge. Therefore, crisis management essay, studies have identified five solutions to curb such issues Vardarlıer, Finally, in adverse situation acquisition of the company by another successful company, crisis management essay, depending on the size of the firm, the impact of a single crisis can be so devastating, crisis management essay.
For instance inLehman Brothers Bank filed bankruptcy after it was affected by post world war financial crisis Crisis management essay, Therefore, crisis management essay, it would be challenging for organization to implement the crisis management plan. In regards to signal identification, the management team could in most cases not identify signals that pose a threat to a possible crisis. Lack of timely identification of threat crisis management essay is the beginning of the onset of an escalated issue. In crisis management essay cases, the damage control will often not pose any challenges towards the management team as this will tend to be a contingency plan to prevent further image and reputation damage.
Consequently, after the company has faced a crisis there are different challenges that occurs and results to inability of the company to handle the crisis adequately. The identification of crisis signal. Finally, recovery and learning is another stage that poses a challenge in a company in regards to crisis management plan. This is mostly because some of the issues could be catastrophic resulting to the collapse of the company Conclusion The paper has crisis management essay issues that relate to crisis management and how model improvised by Smith on crisis management plan can determine how effective the management team is in containing and preventing the escalation of the issue. The essay identifies resolving and learning as a challenging phase.
Remember: This is just a sample from a fellow student. Starting from 3 hours delivery. In lecture we have discussed that strategic management is an evolution and a destination. What I believe this means that in order to obtain a strategically managed company the thoughts of evolution and destination need to me [ Intellectual capital was measured by many, coined by some, agreed by few and valued formally and practically by no one. Intellect management is sought to depend on value creation in the contemporary era of business knowledge. The strategies followed by this firm made it to remain in the top position among its competitors. This multinational cosmetic firm invest, crisis management essay ASML is a Dutch company founded in as a joint venture between Advanced Semiconductor Materials International ASM International and Philips.
From a wooden shed located behind Philips in Eindhoven, the new company [ JetBlue primarily targeted the low-cost air travel market by providing the lowest [ This is a comparative paper based on strategic management models. The research begins with an explanation of the reason as to why PESTEL model is given more weight over other approaches towards SWOT analysis. The paper takes in [ PEST analysis describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
Why Crisis Management is Important - Amanda Flowers Peterson - TEDxRedding
, time: 10:11Crisis Management - Meaning, Need And Its Features Essay Example - blogger.com
29/01/ · Crisis management involves the policies of measures to mitigate the risks after they have occurred. In other words crisis management seems to be b more reactive while In crisis management much like in risk management, a sense of urgency needs to be created from top management. This helps to place authority on plans and process to be followed with 10/04/ · Crisis Management Plan. A crisis is any event that causes disruption of a company`s operation or business function for a period beyond the acceptable downtime. Management
No comments:
Post a Comment