CRISIS MANAGEMENT

Andrew S. Egos

TOPIC DESCRIPTION: This topic explores varying definitions and

concepts of Crisis Management and crisis. Including the
framework that is applied, and some theories connected to
Crisis Management.

LEARNING OBJECTIVES: This lesson aims to provide the readers

with knowledge about Crisis Management. Specifically, this
sought to:

a) Define crisis management and crisis based on its nature

and concepts and understand its importance to public
administration;

B) To highlight key concepts and approaches for effective

crisis management in the public sector, including crisis
preparedness, response strategies, communication,
leadership, and learning from crises.

I. Nature, Approaches, Concepts, and Definitions of Crisis

Management

1. What is Crisis Management?

Crisis management is the stage in which organizations or

institutions will give efforts that will focus on addressing
the crisis. It involves strategic planning, decision-making,
and leadership actions undertaken by organizations or leaders
during times of crisis. It consists of a process involving
managing various stakeholders, such as the local community,
government entities, customers, suppliers, and others. It also
underlines the significance of leadership in guiding through
crises, making tough decisions, and establishing a clear
direction in difficult and rapidly changing situations.

2. What is a crisis?

Crisis consists of various terms, such as disasters,

catastrophes, emergencies, or contingency (Herbane, 2010).
Before establishing a framework to address the crisis, it must
be identified first, by classifying what type it is, and how
it will affect the affected areas, or population. A crisis will
threaten the organization, including that it can have a high-
damage impact while being low-probability, which cannot be
predicted.

Managing a crisis requires an organization or institution

to produce swift decision-making in order to address the crisis
immediately. Especially keeping in mind that crises are
unpredictable events that threaten the affected stakeholders,
and depending on how they will be addressed by an institution
or organization, it will also affect their reputation, and
performance of them, which will either generate positive or
negative outcomes.

3. The lifecycle of a crisis

In order to know how a crisis begins, an approach is

made which will look at four stages:

• Preconditions
o It is a set of smaller events before the actual
fallout of a crisis. Through those smaller events,
their combination will eventually lead to an
occurrence, which is called a “trigger event” that
 will cause the crisis to commence (Roux-Dufort,
2009)
• Trigger Event
o It is the point when a crisis escalates.
• Crisis
o It is the escalation of the crisis which has
produced great damage to the affected subjects. It
can have major impacts on various factors
• Post-crisis
o It is the aftermath of the crisis. This stage is
the point where organizations or institutions will
reflect on the event, and evaluate the performance
in order to identify what needs to be improved or
added to the protocol.

4. Strategic approaches to crisis management

Crisis management requires a strategic mindset or

perspective (Chong and Park, 2010). In order to achieve and
understand effective crisis management, it is required to
understand the environment is constantly changing, that
includes the crises that may occur, that is why there are
several approaches to crisis management that can be used by
organizations or institutions.

• SWOT Analysis
o By using this approach, this process is important in
a systematic matter, because it ensures that
potential crises are not overlooked. That is why we
must observe the internal and external of the
organization, institution, or situation, to
determine the risk factors that will be confronted.
 o The SWOT analysis should also be used to assess
crisis vulnerability during the strategic planning
process (Chong. 2004)
o The use of the SWOT analysis to identify such
threats is a major planning tool in assessing
crisis vulnerability (Parnell, 2013)
• Proactive Approach
o This strategy involves anticipating and planning for
problems before they happen. It emphasizes risk
analysis, emergency preparation, and proactive steps
to avert or lessen catastrophes. (Mitroff, I. I,
2005)
• Adaptive Approach
o This method includes continuous monitoring and
modifying crisis management plans in light of how
the situation is developing. It places a strong
emphasis on adaptability, taking criticism to heart,
and changing course when a crisis scenario develops
(Comfort, L. K., & Kapucu, N., 2006)

II. Understanding the process of crisis management and crisis

5. The five-stage framework

The goal of crisis management is to stop or limit the harm

that a crisis can do to a company and its stakeholders. Crisis
management is a method, not a single thing. Pearson and
Mitroff’s (1993) five-stage framework provides an even more
comprehensive approach to understanding the stages of a crisis
and the process of crisis management. These stages include:
o Signal detection
o There is usually some kind of warning before a
disaster happens. The step that promotes those
warnings is signal detection. Organizations need to
adopt a mentality and acquire the necessary skills
to become skilled at signal detection.
o Crisis Management Teams needs to monitor and surveil
various source of information in order to detect
signals for a potential crisis. Once information is
collected, the data needs to be analyzed in order to
detect patterns, trends, and anomalies that may
indicate a crisis is developing or escalating. CMT
then needs to assess and evaluate the likelihood of
a crisis based on the information that was detected.
CMT needs to make the decision on how they will
respond to the potential crisis, and what plan of
action will be used.
o Preparation/prevention
o This phase entails the creation of crisis management
teams and strategies for dealing with potential
crises. Crisis management is addressed in such a
methodical and consistent way that it is virtually
considered a science. As many crises as possible
should be avoided, and those that do come should be
handled skillfully.
o According to Barton (2001), the crisis team often
consists of representatives from the fields of
public relations, law, security, operations,
finance, and human resources.
o According to Augustine (1995) plans and teams have
limited value if they are never tested. According to
Mitroff, Harrington, and Gia (1996), training is
 essential so that team members may practice making
judgments under pressure. A crisis management plan
(CMP) is a guide, not a construction manual. Tasks
should be assigned in advance if a designated crisis
team is present. In a crisis, the team members should
be aware of their duties and obligations.
o Containment/damage limitation
o The actual crisis management takes place at this
phase. The goal is to minimize the impact on
stakeholders and organizations by keeping the crisis
under control to the maximum degree feasible.
o This is when organizations need to initiate their
response plan and take immediate action in order to
manage the situation at hand.
o In This stage, communication is important,
organizations need their communication plan to be
accurate, consistent, and not a waste of time, as it
is critical in times of crisis.
o Organizations should prioritize the people or
stakeholders and create a strategy that can manage
their needs during a crisis. It is also important to
give information to those affected by a crisis in
order for them to understand the situation.
o Recovery
o At this stage, efforts are made to get things back
as close to normal as possible. Additionally, the
recuperation will frequently happen in phases. The
recovery process is improved, raising the standard
of operations to one that is greater than it was
prior to the crisis.
o This is the stage where it is critical in crisis
management since it focuses on restoring everything
 that can be restored to normalcy, and return to a
stable environment. There is a need for effective
management of emergency response.
o Multiple organizations or agencies will coordinate
with each other to deploy necessary resources, and
services to the affected people.
o Organizations need to support the affected
communities, by providing emergency relief and
facilitating recovery programs.
o Learning
o Lessons from crises are learned through this stage's
reflective actions. The focus is not on finding
scapegoats and shifting the responsibility to other
parties, which is a response that is frequently
endorsed in a litigious society. Instead, the
greatest emphasis is placed on resolving current
operating issues and avoiding new ones.
o In this stage, it is when organizations will conduct
an evaluation of their performance on their
response, plans, strategies, and effort. By doing
so, they can analyze to seek room for improvement.
This involves reviewing their procedures, and
protocols, including identifying their weaknesses
and strengths.
o Organizations will include putting effort into
building a long-term effect on their plans and
preparedness. Enhancing their performance will
promote resiliency alongside the organizations and
the community.
6. What are the challenges in crisis management?

Complexity and Uncertainty

Crises are known for their intricate and unpredictable

nature, with rapidly shifting conditions that pose challenges in
forecasting and addressing. Public administrators may encounter
difficulties in comprehending the comprehensive extent and nuances
of the crisis, evaluating its impacts, and devising suitable
response plans. Ambiguity resulting from uncertainty can impede
effective decision-making and coordination efforts.

Limited Resources

Crises frequently place a heavy burden on public

administrations, including their personnel, funding, equipment,
and infrastructure. Effectively managing crises may necessitate
additional resources that may not be readily accessible, and
securing sufficient resources in a timely manner can present
difficulties. Budgetary constraints and competing priorities can
further compound the limitations on resources, posing additional
challenges to crisis management.

Public pressure and expectation

During times of crisis, the public often places high

expectations on public administrators, demanding swift and
efficient responses. However, public administrators may encounter
difficulties in managing these expectations, addressing concerns,
and upholding the public trust. The added scrutiny from the media
and the public can further intensify the pressure, requiring public
administrators to adeptly navigate public relations challenges
while concurrently managing the crisis at hand.

Coordination and Collaboration

Managing a crisis often entails the involvement of multiple

stakeholders, agencies, and government levels. Coordinating
efforts among diverse entities with varying mandates,
jurisdictions, and priorities can be inherently challenging.
Establishing effective communication channels, coordination
mechanisms, and collaborative partnerships requires proactive
measures but can encounter obstacles such as bureaucratic red tape,
divergent interests, and interagency coordination challenges.
Aftermath and Recovery

Handling the aftermath and recovery phase of a crisis presents

its own set of challenges. Public administrators may be tasked
with overseeing activities such as damage assessment, recovery
planning, and reconstruction efforts. Coordinating with diverse
stakeholders, addressing long-term impacts, and facilitating a
seamless transition to normalcy can be arduous and demand sustained
efforts from public administrators.

Psychological Impact

Crisis situations can exact a significant emotional and

psychological toll on public administrators tasked with managing
them. Coping with the aftermath of a crisis, witnessing the
suffering of affected individuals, and making tough decisions can
have adverse effects on the mental health and well-being of public
administrators. Managing their own emotions and the well-being of
their teams can be particularly challenging during crisis
situations, requiring careful attention and self-care measures.

7. How do organizations or institutions classify the crisis?

Different crises need the application of various crisis

management solutions which is why it is crucial to recognize
the different types of crises during the crisis management
process, in order to know what kind of intervention is needed
to address the crisis.

• According to Gundel (2005), a classification of crises is

“the first step to keep them under control” and allows for
analysis and planning of crisis management actions.
• A crisis may be forced on by external influences or one's
own actions. Natural disasters, security flaws, or malicious
rumors that damage a company's brand are a few examples of
external influences that may have an impact on an
organization's operations. Organizational crises are brought
on by the organization itself.
• Organizations can classify or identify what the crisis is
through its nature, impact, scope, and severity.
 III. Theories in Crisis Management

Contingency Theory

o This gives the importance for organizations or institutions

to be flexible and be able to adapt to every changing
circumstance to a crisis. Response strategies and action
execution should be able to address the specific crisis
situation. Especially knowing different crises require
different approaches, depending on their nature, scope, and
impact, including the resources that will be allocated, the
people involved and affected, and the regulations.

Attribution Theory

o In this theory, people will make effort to explain why certain

things happen, especially a crisis. People will either blame
the individual or the situation. The crisis attributes cause
emotions and has an impact on individuals’ connection with
others. Crises are unpleasant and unpredictable. Either the
organization has been affected by a crisis or the circumstance
is blamed (Coombs, 2007b; Coombs & Holladay, 2006).

SUMMARY AND CONCLUSION

Crisis management is an essential part of an organization

or institution as it plays a significant role in handling
various crises that will occur and affect other actors, such
as stakeholders, local communities, government entities, and
others.

It is not an easy task to tackle various crises that can

negatively impact the affected environment, that is why there
is a framework on the process or stages of how a crisis will
undergo and is being addressed. While crises pose a threat or
negative, with efficient crisis management, the harm may be
lessened, and the organization may even improve its strategies
and plans, ready to address a crisis. As no organization is
immune from a crisis, that is why everyone must make every
effort to develop and improve a strategy, and plans, in order
to be ready for a crisis.

REFERENCES:

W.R. Crandall, J.A. Parnell, J.E. Spillan. Sage, Los Angeles

(2014). Crisis Management: Leading in the New Strategy

Landscape (2nd edition).. 356 pp.

Comfort, L. K., & Kapucu, N. (2006). Inter-organizational

coordination in extreme events: The World Trade Center

attacks, September 11, 2001. Natural Hazards, 39(2), 309-327.

Mitroff, I. I. (2005). Why some companies emerge stronger and

better from a crisis: 7 essential lessons for surviving

disaster. AMACOM.

Gundel, S. (2005). Towards a New Typology of Crises. Journal of

Contingencies and Crisis Management, 13(3), 106-115.

Pearson, C., & Mitroff, I. (1993). From crisis prone to crisis

prepared: A framework for crisis management. Academy of

Management Executive, 7(1), 48–59

Hayes, A. (2022). Crisis Management: Definition, How It Works,

Types,

andexamples. Investopedia. https://www.investopedia.com/ter

ms/c/crisis-management.asp

Institute for PR. (2007, October 30). Crisis Management and

Communications | Institute for Public Relations.

https://instituteforpr.org/crisis-management-and-
communications/