Crisis Management - AUEB e

Crisis Management
Ά ΝΝΑ Ζ Α ΡΚ Ά Δ Α
ΔΗ Μ ΌΣΙ ΕΣ Σ ΧΈ Σ ΕΙΣ
O D E 3 45
MS M P/ T
What is Crisis ?
• A sudden and unexpected event leading to major unrest.
• Any emergency situation which
• disturbs
• leads to instability
• affects
•
•
•
•
an individual,
a group,
an organization or
society on the whole.
Characteristics of Crisis
• A sequence of sudden disturbing events
harming the organization.
•Generally arises on a short notice.
•Triggers a feeling of fear and threat amongst
the individuals.
What brings on crises
• Natural disasters
• Consumer
• boycotts
• disputes
• legal actions
• Violence
• vandalism
• thefts
• terrorism.
• Technological failure
• Employees
• undermine each other and the
organisation
• misrepresent organisational policy
• present conflicting information
• strike for indefinite periods.
• Management
• illegal behaviors
• accepting bribes
• fraud
• data or information tampering
• bankruptcy
Typology of crises
• Natural Crisis
• Technological Crisis
• Confrontation Crisis
• Crisis of Malevolence
• Crisis of Organizational Misdeeds
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•
•
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Crisis of Skewed Management Values
Crisis of Deception
Crisis of Management Misconduct
Bankruptcy
• Crisis due to Workplace Violence
• Crisis Due to Rumours
• Accidental
• Manufactured
• Escalated
Sudden
OR
Smouldering
Crisis Management
Essential Features of Crisis Management
• Includes activities and processes to analyse and understand events.
• Enables the managers and employees to respond effectively to
challenges.
• Consists of effective coordination amongst departments.
• Points to keep in mind during crisis
• Don’t panic or spread rumours around.
• Be patient.
• Keep in regular touch with
• employees
• stake holders
• media.
• Avoid being too rigid.
• Adapt to new situations.
Damage
containment
• Goals
• Assume control of the crisis
• Conduct damage assessment
• Restore normal operations
• Restore reputation
• Techniques
• CMT & CMP
• Crisis communications
•Rhetoric
•Persuation
Rhetoric
• ‘Pathos’ = appeal to emotions
• ‘Logos’ = an appeal to the audiences’ logical
reasoning
• Kernel of truth
• ‘Ethos’ = show the speaker’s character
and/or credentials.
• Demonstrate power and authority
• Create a sense of credibility and trustworthiness
Shakespear – Julius Ceasar (Brutus)
Romans, countrymen and lovers! Hear me for my cause, and be silent, that you
may hear: believe me for mine honour, and have respect to mine honour, that
you may believe: censure me in your wisdom, and awake your senses, that you
may the better judge. If there be any in this assembly, any dear friend of
Caesar’s, to him I say, that Brutus’ love to Caesar was no less than his. If then
that friend demand why Brutus rose against Caesar, this is my answer: Not
that I loved Caesar less, but that I loved Rome more. Had you rather Caesar
were living and die all slaves, than that Caesar were dead, to live all free men?
As Caesar loved me, I weep for him: as he was fortunate, I rejoice at it; as he
was valiant. I honor him: but, as he was ambitious, I slew him. There is tears for
his love: joy for his fortune; honor for his valor: and death for his ambition.
Who is here so base that would be a bondman? If any, speak; for him have I
offended. Who is here so rude that would not be a Roman? If any, speak: for
him have I offended. Who is here so vile that will not love his country? If any,
speak; for him have I offended. I pause for a reply.
Principles of persuasion
• Liking: people will say “yes” more often to those they like.
• Consistency: ‘one vision – one voice”, stick to your guns!
• Authority: we are more easily persuaded by those with
authority. Use titles and symbols such as attire and space.
• Scarcity: we are more motivated by loss than gain and we are
more easily persuaded when the resource is limited
• Consensus: people look to others and follow what they are
doing. People are like sheep, of which a flock is more easily
driven than a single one
• Reciprocation: trying to get without first giving is as fruitless as
trying to reap without having sown. Humans have an inherent
desire to return favours