CRISIS MANAGEMENT:

MEANING, NEED AND ITS FEATURES

Prepared by Sofiia Zamorylo
МЕ-39 group
What Is Crisis Management?

A sudden and unexpected event leading to major

unrest among the individuals at the workplace is
called as organization crisis.

The art of dealing with sudden and unexpected

events which disturbs the employees, organization as
well as external clients refers to Crisis Management.

Crisis management - the process of handling

unexpected and sudden changes in organization
culture.

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 In fact, 69% of leaders have
Within the category of experienced at least one
business crises specifically, corporate crisis from 2014-
there are a number of 2019 — with the average
different situations with number of crises
the potential to cause great experienced being three.
damage to the company no
matter the industry, size,
or resources.

One can prepare their business for

the possibility of one of these
unplanned events by
All businesses are susceptible to
implementing a crisis management
these crises which is why it’s
plan, understanding the stages of
critical to be prepared for anything
a crisis, and ensuring they have
to avoid what could be a corporate
the right people to help them
downfall.
manage and work through a crisis.

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Need for Crisis Management:

 Crisis Management prepares the individuals to face unexpected developments

and adverse conditions in the organization with courage and determination.

 Employees adjust well to the sudden changes in the organization.

 Employees can understand and analyze the causes of crisis and cope with it in
the best possible way.

 Crisis Management helps the managers to devise strategies to come out of

uncertain conditions and also decide on the future course of action.

 Crisis Management helps the managers to feel the early signs of crisis, warn
the employees against the aftermaths and take necessary precautions for the
same

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 Essential Features of Crisis Management

Crisis Management
includes activities and Crisis Management Employees at the time
processes which help enables the managers It consists of effective of crisis must
the managers as well as and employees to coordination among the communicate
employees to analyze respond effectively to departments to effectively with each
and understand events changes in the overcome emergency other and try their level
which might lead to organization culture. situations. best to overcome tough
crisis and uncertainty in times.
the organization.

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 Example of Effective Crisis Management and Communication

The crisis:
In 1982, seven people in Chicago died after taking cyanide-laced capsules of Johnson & Johnson's over-the-counter
medication Tylenol. The incident remains unsolved. The company's response has become a textbook example of how to
manage a crisis.

The response:
Johnson & Johnson immediately launched a massive response to the incident, which included halting all product
advertising and sending 450,000 messages to healthcare facilities and other stakeholder groups. It also issued safety
warnings to consumers.
Despite the evidence indicating that the toxic substance was accidentally introduced through the store shelves and
therefore not the company’s fault, the company did not try to hide the truth, and the brand eventually started making
tamper-proof packaging. James Burke, the company’s CEO at the time, even went so far as to express regret later on
that the company did not immediately switch to a more secure caplet immediately following the incident.

https://www.youtube.com/watch?v=l1R0EnzGB3I&t=216s

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THANKS FOR YOUR
ATTENTION!