CM Lecture 2
3 Perspectives
There are three perspectives on crisis process:
- System: industry/sector level
- Organisational
- Individual
From the general system model to the specific individual model, the
processes by which systems, organisations and individuals deal with crisis
can be observed.
1. Ecological System model
According to this model, crises can be viewed and dealt with in the
following manner:
- System functionality (normal status)
- Event
- Bifurcation point (two conflicting situations cause a crisis)
- Adaptation/adjustment to environment (e.g. the government intervenes
and helps sort problem)
- System equilibrium (back to normal)
(environment determined)
2. Organisational closed system model.
As at the system level, the following demonstrates how an organisation
deal with a crisis:
- Organisational stasis
- Disruption: signals of change/danger
- Crisis
- Recovery - Key phases in recovery include the reduction of costs,
HR change, and an action plan for the future
("re-planning"). This
often involves the hiring of a new CEO, as
he/she will be detached enough to be able to fire the relevant people.
- Organisational change and success
(Organisational determined) 3. Individual
(Behaviour) model It is important never to forget the effect of
crises on personal lives, whether originating from work or otherwise:
- Individual functionality
- Shock - crisis denial/acceptance (causes the "fight or flight"
reaction, where the brain goes into survival mode, shutting down all but
basic functions)
- Defensive retreat/acknowledgement (the person creates their personal
interpretation of the event, either being unable to admit it or being
able to acknowledge it publicly, as well as privately)
- Disintegration/incremental adjustment (the person either can't deal
with the situation and falls apart, or learns to accept it and move on.
The support received is a vital factor in a person's recovery)
- Failure/recovery
(Psychologically/socially determined)
Interdependence of the three models Crisis
and learning Slatter's recovery
Meyer's 9 causes of failure
Hoffman's turnaround strategies
Discussion
Invulnerability Syndrome |