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CM Lecture 2

Management > Crisis Management > 3 perspectives

 

3 Perspectives

There are three perspectives on crisis process:

  1. System: industry/sector level
  2. Organisational
  3. 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:

  1. System functionality (normal status)
  2. Event
  3. Bifurcation point (two conflicting situations cause a crisis)
  4. Adaptation/adjustment to environment (e.g. the government intervenes and helps sort problem)
  5. 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:

  1. Organisational stasis
  2. Disruption: signals of change/danger
  3. Crisis
  4. 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.
  5. 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:

  1. Individual functionality
  2. Shock - crisis denial/acceptance (causes the "fight or flight" reaction, where the brain goes into survival mode, shutting down all but basic functions)
  3. 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)
  4. 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)
  5. 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

 

 Copyright Heledd Straker 2006

Go placidly amid the noise and haste