CRISIS

MANAGEMENT

DR. HALIMAH MOHD YUSOF

 Course synopsis
This course present applied therapeutic counselling in
general, and crisis management in particular. Crisis
management activities include forecasting potential crises
and planning how to deal with them. Crisis management
in current environment includes identifying the nature of
crisis, intervening to minimize damage and recovering
from the crisis.Various models, theories, and strategies
associated with crisis management will be critically
discussed in class. Students are expected to be proactive
and to be actively engaged in class activities.
 TOPICS COVERED

Week Topic
Week 1: Introduction to crisis management
Week 2: Theories and models of crisis intervention
Week 3: Crisis prevention
Week 4: Crisis assessment models
Week 5: Crisis management planning and strategies [Part I]
Listening & acting in crisis intervention
Week 6: Crisis management planning and strategies [Part II]
Handling, counselling & confidentiality in crisis
management
Week 7: Test
Specific crisis response and handling [Part I]
Crisis of lethality, bereavement & grief
 TOPICS COVERED

Week Topic
Week 8: Specific crisis response and handling [Part II]
Violent behaviour in the workplace
Week 9: Mid-semester break
Week 10: Specific crisis response and handling [Part II]
Crisis/hostage negotiation
Week 11: Specific crisis response and handling [Part IV]
Burnout, vicarious traumatization & compassion fatigue
Week 12: Disaster management
Disaster response
Week 13: Case Study Presentation
Week 14: Case Study Presentation
 GRADING
No. Assessment Numbe Each (%) Total (%) Week
r

1. Test 1 20 20 6
2. Assignment/ Case Study 2 5 10 3-11

3. Group Project
- Report 1 20 20 12
- Presentation 1 10 10 12

4. Final Exam 1 40 40
Total 100
 CRISIS MANAGEMENT
SHR 4313
INTRODUCTION TO CRISIS MANAGEMENT
CONTENTS

Crisis Definition
Crisis Characteristics
Types of crises
Sources of potential crises
Identifying potential crises
Determining potential crises
 Crisis Definition 1

An organizational crisis is a low-

probability, high-impact event
that threatens the viability of the
organization and is characterized
by ambiguity of cause, effect, and
means of resolution, as well as
by a belief that decisions must
be made swiftly (Pearson & Clair,
1998: 60)
Crisis Characteristics 1

A crisis is unlikely to happen makes the planning for a

crisis even more troublesome. Why plan for something
bad if it may not occur? (Spillan & Crandall, 2002)

A crisis can have a high-damage impact

Ambiguity means that the causes and effects of the crisis

might be unknown, at least initially.
Cont Crisis Characteristics 1

Ambiguity also implies that the means of resolving the

crisis is often debatable

Certain aspects of managing a crisis may require swift

decision making
Crisis Definition 2

A crisis is the perception of an

unpredictable event that
threatens the important
expectancies of stakeholders
and can seriously impact an
organizations performance
and generate negative
outcomes (Coombs, 2007: 2-
3)
Crisis Characteristics 2

A crisis is generally perceived to be a threat by the

organizations stakeholders i.e. employees, customers and
the community

Not all stakeholders will perceive that a crisis is actually

occurring. Example: a product defect that is detected by
consumers, but not the company. Actually a crisis has
occurred, because the perceptions of at least one group
of stakeholders have been impacted in a negative manner
by the event
So
A crisis is an event that has a low probability of occurring,
but should it occur, can have a vastly negative impact on
the organization. The causes of the crisis, as well as the
means to resolve it, may not be readily clear, nonetheless,
its resolution should be approached as quickly as possible.
Finally, the crisis impact may not be initially obvious to all
of the relevant stakeholders of the organization.
Types of Crises (Bernstein, 2011)

3 general categories (Bernstein, 2011)

Creeping crises: foreshadowed by a series of events that

decision maker dont view as part of a pattern
Slow-burn crises: have given some advance warning, but the
situation has not yet caused any actual damage
Sudden crises: the damage has already occurred and will get
worse the longer it takes to respond
Creeping crises

Lack of rumor control system resulting in damaging

rumor
Inadequate steps to protect life and property in the event
of emergencies
Slow-burn crises

Most discrimination
complaints
Lack of regulatory
compliance safety,
immigration, hiring, permits
Sudden management changes
voluntary or involuntary
Local/state/national
governmental actions that
negatively impact operations
Sudden crises

Patient death/patient condition

worsened your healthcare
organization perceived to be
liable in some way
Serious on site accident
Insane/dangerous behaviour by
anyone at a location controlled
by your company
Natural disasters
Fires
Types of Crises (Devlin, 2007)

Non physical damage crises

Physical damage disasters
Non physical damage crises

Product issue: credibility when a manufacturer of a

product finds that there are questions regarding the
products effectiveness, credibility, or satisfaction. Example
is Mercedes Auto (Devlin, pp 10-11)

Product issue: safety when a manufacturer of a product

finds that one of its product is being accused of injuring
or killing customers. Example is Firestone Tire Company
(Devlin, pp 11-12)
Cont Non physical damage crises

Negative public perception of your organization. Example

is Greyhound Bus Co. (Devlin, pp 13)

Workplace violence assaults. Example is Windy City

Core Supply (Devlin, pp 16)
Physical damage disasters

Acts of nature earthquake, tornado, flood etc. Example

in Devlin, pp 17-20.

Accidents a fire, leak etc. Example in Devlin, pp 21-23.

Intentional acts a bomb, arson etc. Example in Devlin,

pp. 23-25
SUMMARY

YOU CANNOT PREVENT ALL CRISES FROM

STRIKING YOUR ORGANIZATION. THEREFORE YOU
NEED TO BE PREPARED.

1) BE PREPARED (CMP)
2) MANAGE IT SUCCESSFULLY (CMP Training &
Experience)
How to determine which crises could strike
your company

1. Analyze the threats

Make a list of all crises that could strike your organization i.e.
product issue, organization image, a financial problem, strike,
natural disasters

2. Predictability
Study crisis that is more likely to happen

3. Frequency
Study the history case studies of other organization
 4. Crises that could be missed
Crises caused by a supplier or vendor i.e. PlayDoh & flour vendor
Crisis caused by a bad exercise i.e. wrong timing & place of mock
exercise at Memorial Hospital, Virginia
Crisis caused by the action of an employee i.e. a surgeon from the
Sloan-Kettering Cancer Centre New York operated on the wrong
side of the brain
Crisis caused by the action of HRD i.e. termination/firing at wrong
timing
Crisis caused by the actions of the news media i.e. distorted news
Crisis caused by an owner liability issue i.e. lack of security at
WalMart parking
Crisis caused by the unexpected death of CEO & senior employees
i.e. in the terrorist attacks on 9-11, WTC
Sources of potential crises

Industry-related sources of risk

Major airlines crash/hijack
Chemical and petroleum companies explosions/discharge of
polluting or toxic materials
Food processors and packers. Example IBP, Inc, beef
contaminated with E.coli.
Financial service companies inappropriate investment
recommendations

Accidents and natural events

Earthquake, typhoon, tornado, hurricane, flood, fire
Example is flood in Chicago in 1992, a total lose fire at a
battery manufacturing plant in Japan impacted Motorola
Cont Sources of potential crises
Health and environmental disasters
Product tampering. Example is Johnson & Johnson Tylenol case
Catastrophic accidents. Example is Chernobyl nuclear plant in
1986
Environmental harm. Example is General Electric PCBs case

Technological breakdowns
Example is Great Blackout 2003 in the US & cyberpranksters
attack on major websites in 2000

Economic and market forces

Example is biotech stem cell technology

Rogue employees
Example is sexual harassment & Bostons pedophile priest scandal
2001-2003
Identifying potential crises

Seek broad-based input from many people

Complete a thorough risk audit by
approaching various departments in
organization
Make risk identification a regular
component of business planning and
evaluation
Conduct risk identification at all levels of
employees
Look outside and inside of organization.
Thinking of customers, suppliers, industry
analysts etc
Adopt the mind of an internal assassin