CHAPTER II

What is Crisis?
Objectives: At the end of the course, the students should be able to:
1. Understand what are the different causes of crisis;
2. Develop mitigating actions about crisis;
3. Coordinate with respective agencies the impending crises for preventive actions; and
4. Restore the impact of the crisis.
How does one define a crisis?
A crisis is a particularly difficult or dangerous point in a situation. Three elements must exist for
a crisis to take place:
 The situation must be stressful
 There is an existing time for intervention
 A period of time exists where an individual has trouble coping with the situation
Basic Concept of Crises and Incident Management
The 4P Crisis Management Model is envisioned dress crises situations in two phases the
Proactive and the Reactive in four Prediction, Prevention, Preparation and Performance
Phases of Crisis Management
Crisis management is continuing activity that has two distinct phases: The Proactive and the Re-
active phase.
A. The Proactive Phase. This phase is designed to predict or prevent the probability of
occurrence the same time prepare to handle them when they occur. It encompasses 3Ps of the 4P
Crisis Management Model prediction, prevention
(1) Prediction-This stage involves foretelling of the likelihood of crises occurring or manmade
through the continuous assessment of the all-possible threats and threats groups, as well as the
analysis of developing or reported events and incidents. Crises incidents can be predicted
through updated inputs from intelligence reports as well as the continuous monitoring and
analysis of the confluence of related events.
(2) Prevention- When most man-made crises/emergencies, this stage involves the institution of
passive and active security measures, as well as the remedy or solution of destabilizing factors
and/insecurity flaws leading to such crises/emergencies.
(3) Prepare- Preparation for crises/emergencies entails planning, organization, training and
stockpiling of equipment and supplies needed for such crises/emergencies. Simulated drills at
unspecified days and times test the effectiveness of preparations, bring out flaws and
weaknesses, and corrections/remedies effected to heighten levels of readiness of systems,
procedures, organization, equipment and logistics to better cope with actual crises/emergencies.
B. The Reactive Phase- Performance This phase covers the last of the 4Ps, Performance, which
is the actual execution or implementation of any of contingency plan when a crisis situation
occurs despite the pro-active measures.
The objectives in this stage are: to ensure a high probability of success in neutralizing the
perpetrator(s); to minimize, or cushion the adverse effects of the crisis incident; and, to ensure a
smooth and speedy rehabilitation or return to normalcy.
Following are the types of crisis:
Natural Crisis
Disturbances in the environment and nature lead to natural crisis. Such events are generally
beyond the control of human beings. Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis,
Flood, Drought all result in natural disaster.

Confrontation Crisis
Confrontation crises arise when employees fight amongst themselves. Individuals do not agree to
each other and eventually depend on non-productive acts like boycotts, strikes for indefinite
periods and so on. In such a type of crisis, employees disobey superiors; give them ultimatums
and force them to accept their demands. Internal disputes, ineffective communication and lack of
coordination give rise to confrontation crisis.

Crisis of Organizational Misdeeds

Crises of organizational misdeeds arise when management takes certain decisions knowing the
harmful consequences of the same towards the stakeholders and external parties. In such cases,
superiors ignore the after effects of strategies and implement the same for quick results.
Sudden Crisis As the name suggests, such situations arise all of a sudden and on an extremely
short notice. Managers do not get warning signals and such a situation is in most cases beyond
any one's control.
Smoldering Crisis
Neglecting minor issues in the beginning lead to smoldering crisis later. Managers often can
foresee crisis but they should not ignore the same and wait for someone else to take action. Warn
the employees immediately to avoid such a situation.

Crisis of Malevolence
Organizations face crisis of malevolence when some notorious employees take the help of
criminal activities and extreme steps to fulfill their demands. Acts like kidnapping company's
officials, false rumors all lead to crisis of malevolence.

Technological Crisis
Technological crisis arises as a result of failure in technology. Problems in the overall systems
lead to technological crisis. Breakdown of machine, corrupted software and so on give rise to
technological crisis.
Crisis due to Workplace
Violence Such a type of crisis arises when employees are indulged in violent acts such as beating
employees, superiors in the office premises itself.

Crisis Due to Rumors

Spreading false rumors about the organization and brand lead to crisis. Employees must not
spread anything which would tarnish the image of their organization.
Family Crisis
Family crises involve family disruptions or disturbances. They often occur due to underlying or
external factors such as happenings in the workplace or negative encounters with other family
members. The events that happen outside of the home are brought in from a psychological
perspective, which perpetuate family crises. For example, if a husband had a bad day at work, he
likely would not be in a positive mindset by the time he arrived home. When his wife informs
him of their child's misbehavior, the husband lashes out and physically abuses the child as
punishment. The husband's negative work interactions, in addition to the response to his child's
behavior, have caused a family crisis.

Natural disasters
Environmental crises beyond human ability to prevent. Tornadoes, hurricanes, earthquakes, and
volcanic eruptions are some examples. All those events can affect a company or derail or stop its
activities. They pose severe threats to lives, properties, money, and assets.

CONFLICT RESOLUTION STRATEGIES

Conflict Resolution Strategy #1: Avoiding

Avoiding is when people just ignore or withdraw from the conflict. They choose this method
when the discomfort of confrontation exceeds the potential reward of resolution of the conflict.
While this might seem easy to accommodate for the facilitator, people aren't really contributing
anything of value to the conversation and may be withholding worthwhile ideas. When conflict
is avoided, nothing is resolved.

Conflict Resolution Strategy #2: Competing

Competing is used by people who go into a conflict planning to win. They're assertive and not
cooperative. This method is characterized by the assumption that one side wins and everyone
else loses. It doesn't allow room for diverse perspectives into a well-informed total picture.
Competing might work in sports or war, but it's rarely a good strategy for group problem solving.
Conflict Resolution Strategy #3: Accommodating

Accommodating is a strategy where one party gives in to the wishes or demands of another.
They're being cooperative but not assertive. This may appear to be a gracious way to give in
when one figures out she/he has been wrong about an argument. It's less helpful when one party
accommodates another merely to preserve harmony or to avoid disruption. Like avoidance, it can
result in unresolved issues. Too much accommodation can result in groups where the most
assertive parties commandeer the process and take control of most conversations.

Conflict Resolution Strategy #4: Collaborating

Collaborating is the method used when people are both assertive and cooperative. A group may
learn to allow each participant to make a contribution with the possibility of co-creating a shared
solution that everyone can support a great way to collaborate and overcome conflict is to reach
out and touch them.

Conflict Resolution Strategy #5: Compromising

Another strategy is compromising, where participants are partially assertive and cooperative. The
concept is that everyone gives up a little bit of what they want, and no one gets everything they
want. The perception of the best outcome when working by compromise is that which "splits the
difference." Compromise is perceived as being fair, even if no one is particularly happy with the
final outcome