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BPS 426 2022 Students Copy
BPS 426 2022 Students Copy
•
Crisis is not simple; it is complex and difficult to understand, and it defies
cause-and-effect description (Brammer, 1985, p. 91; Kliman, 1978, p. xxi).
The symptoms that overlie precipitating crisis events become tangled
webs that crisscross all environments of an individual. When an event
reaches a fulminating point, there may be so many compounding
problems that the worker has to intervene directly in a variety of areas.
Further, the environment of individuals in crisis figures prominently in the
ease or difficulty with which the crisis can be handled. Families and
employees are among the salient entities that may directly affect problem
resolution and a return to stability. And when large numbers of people are
affected at the same time by a crisis, systemic involvement may occur, and
the entire ecological system of a neighbourhood, community,
geographical region, or country may need intervention.
•
3. Seeds of Growth and Change
• A financial crisis occurs when a business loses value in its assets and
the company can't afford to pay off its debt. Typically, this is caused by
a significant drop in demand for the product or service.
• In these cases, the company must move funds around to cover
immediate short-term costs. Then, they'll need to reanalyze their
revenue sources to look for new ways to generate long-term income
as well as increase their margins.
2. Personnel Crisis
• If the confrontation crisis is happening internally, use conflict resolution skills to defuse the
situation before it escalates further.
• Examples of a Confrontation Crisis
• Hollywood Foreign Press Association: In 2021, the Hollywood Foreign Press Association
faced a boycott because of the lack of diversity and inclusion in the organization. More than 100 of
Hollywood’s publicity firms said that they’ll tell their clients, most of whom are famous stars, to not
attend the Golden Globes or other HFPA events unless the organization is reformed.
• In a public statement, the HFPA said, “As a demonstration of our commitment, the board has
unanimously approved a plan to increase membership to a minimum of 100 members this year,
with a requirement that at least 13% of the membership be Black journalists.”
• Target: In early 2021, a California Target location was subject to a protest after the store’s security
wrongfully accused three Black teens of shoplifting. According to The Los Angeles Times, Target
issued a public apology, saying that it “fired a security staffer and would require that other
employees at the store retake mandatory security and racial bias training.”
7. Workplace Violence Crisis
• Cow & Gate and Tesco: In 2020, the food manufacturer Cow & Gate
experienced a crisis of malevolence after its baby food jars were
subject to tampering. In response, it immediately recalled the
affected products, and in late 2020, a man was
apprehended and charged for the crime.
Examples 2 of a Crisis of Malevolence
• Accellion: In December 2020, Accellion, a file transfer service, was
subject to a sophisticated hacker attack that exposed data from
several organizations, including Harvard and Kroger. The attack
exposed the Social Security Numbers of Harvard students and Kroger
pharmacy’s customer base.
Examples 2 of a Crisis of Malevolence
(cont …)
• In a statement, Accellion said that it “alerted all 320 potentially
affected customers with multiple emails beginning on [December] 22
— and followed up with emails and phone calls.” Accellion put a patch
in place to prevent the further leaking of data and gave customers the
option of canceling their subscriptions.
• Now that we've identified a few situations that could affect your
business, the next step is to understand the different management
types that are used to address crises.