Mitroff (1996)

Management > Crisis Management > Lectures > Independent Research > Mitroff's other book > Factors of CM - Types/Phases > Factors of CM - Systems/Stakeholders

Factors of CM - Systems/Stakeholders

Systems

This looks at how well the firm can manage the complex systems which can create a crisis. Many crises occur due to a breakdown in the linkages among three interrelated subsystems, organisations, people and technologies:

1. Organisational factors, such as reward systems and communication channels, affect human responses, risk assessments and will be incomplete
2. Employees interact with technological systems.
3. People's limitations affect their reactions under stressful conditions

All three of these subsystems need to be analysed systematically and CM plans must clearly specify the crisis roles and procedures that must be assumed during a crisis.

The firm's informal culture greatly affect the rules and procedures (Institutions, see North, 1994), as one of "the distinguishing hall marks of crisis prone organisations is a faulty mind set or belief structure".

Stakeholders

People who would be affected by crises need to be accounted for. Crisis prepared firms ensure in their CM plans that as many parties as possible are cared for during a crisis, including employees, customers, competitors, politicians and society at large.

CMT and Simulations