Introduction
Along with the global economic crisis, the impact of
organizational crises on human capital and its functioning is becoming
increasingly apparent. From this perspective, the strategic role of human
resource development analyzed in this article is very important. It provides a
conceptual basis for human resource management professionals, empowering and
developing human capabilities to understand how to build the crisis management
skills that are expressed at the institutional level
According to
As expounded by
Organizational Crisis
Management
As described by
The art of dealing with emergencies and contingencies that
disrupt employees, the organization, as well as external clients, leads to
crisis management or the process of
manipulating unexpected and sudden changes in the corporate culture is called
crisis management
According to the
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Figure -01
“Mitroff offers a five-stage
model for crisis management:(1) signal detection, seek to identify warning
signs and take preventative measures; (2) probing and prevention, active search
and reduction of risk factors; (3) damage containment, the crisis occurs and
actions taken to limit its spread; (4) recovery, effort to return to normal
operations; and (5) learning, people review the crisis management effort and
learn from it.” Cited
As explained by
Crisis Management Examples:
Figure – 02
1.
Uber
- How has Uber handled the negative attention? While the company makes
statements about every event, it is difficult to ignore the fact that the wrong
steps have been taken. Lack of transparency is Uber's biggest failure to handle
most of the public interest. A heartfelt letter from the CEO promising to be a
better leader will not go away from the company until the public sees the steps
and actions it has taken to get there. Uber is a classic example of how crisis
management can go wrong
2.
Cracker
Barrel - Restaurant crisis management does not treat this as a crisis. They
were silent on the issue and never addressed the business or Brad's wife in
public. You're still trashing a few hashtags #NotMyCountryStore on social media
channels in cracker barrels, and the firestorm is pretty much gone. And,
according to the company’s latest figures, they are doing well. Cracker Barrel
shows us an example of how silence can sometimes be the best form of crisis
communication
3.
Chipotle
- Burrito's crisis management strategy has long and often been criticized. Amid
the 2015 explosion, co-CEO Monty Moran said at an industry conference for
investors:
It is nourished by an unusual and
unconventional method chosen by the CDC to cover events related to the early
eruptions in the Northwest. ”he said. And: "Because the media likes to
write sensitive headlines, you'll probably see, you know, when someone goes
kiwis ... 'Ah, its E. coli from Chipotle for a while
4.
Pepsi
- The joy of flying under the radar has never seemed so happy and sweet to
Pepsi executives. In April 2017, Pepsi launched a new advertising campaign with
an ad starring Kendall Jenner. Over the next 48 hours, the "short
film" was viewed by nearly 1.6 million people on YouTube.
In less than 24 hours, however, the soda
company removed the ad and stopped advertising altogether. The second statement
followed: “Pepsi seeks to project a global message of unity, peace, and
understanding. We missed the mark, and we apologize. The response was
pronounced for its speed and direct forward nature, but it would take some time
for the brand to recover from this internally created "worst ad ever"
References
Booth, S. A., 2015. Crisis Management Strategy. 1
ed. London: Routledge.
Colesac, C.
M. & Eyena, S., 2011. The Strategic Role of Human Resources Development in
the Management of Organizational Crisis. Economia. Seria Management, 14(1),
p. 207.
Cristina,
2011. www.researchgate.net. [Online]
Available at: https://www.researchgate.net/publication/227490099_The_Strategic_Role_of_Human_Resources_Development_in_the_Management_of_Organizational_Crisis
[Accessed 15 04 2022].
Jia Wang, &
Hutchins, H. M. & Garavan, T.N., 2015. Exploring the Strategic Role of
Human Resource Development in Organizational Crisis Management. [Online]
Available at: file:///C:/Users/Janaka%20Perera/Downloads/ExploringtheStrategicRoleofHumanResourceDevelopmentinOrganizationalCrisisManagement.pdf
[Accessed 15 04 2022].
Juneja, P.,
2022. www.managementstudyguide.com. [Online]
Available at: https://www.managementstudyguide.com/crisis-management.htm
[Accessed 15 04 2022].
Khodarahmi,
E., 2009. Crisis management. Disaster prevention and Management, 18(5),
pp. 523-528.
Prater, M.,
2022. https://brandfolder.com/. [Online]
Available at: https://brandfolder.com/blog/crisis-management
[Accessed 16 04 2022].
W.Page, A.,
2021. www.pagecentertraining.psu.edu. [Online]
Available at: https://www.pagecentertraining.psu.edu/public-relations-ethics/ethics-in-crisis-management/lesson-1-prominent-ethical-issues-in-crisis-situations/crisis-and-crisis-management/
[Accessed 15 04 2022].
As a nation, the topic is timely and very suitable. A crisis is an unexpected, unfamiliar, and low probability, high impact event Precipitated by individuals, institutional structures, economics, technology, or natural disasters.
ReplyDeleteYes Janaka. Crisis management has grown in scope as a concept and a set of practices, and in the form of human resource development, it has become part of a more strategic approach to integrating HR activities and business policies. A strategic approach to human resource development is required because it entails designing and implementing HRD policies and practices to ensure that a firm's human capital contributes to the achievement of business objectives specified in this globalization era. To ensure crisis management, firm-specific capabilities must be integrated with high-level strategic integration of HRD, organizational structure, culture, and strategy.
ReplyDeleteReference; Zulkarnaini, N.A.S., Shaari, R., Sarip, A. (2020). Crisis Management and Human Resource Development: Advances in Human Factors, Business Management and Leadership. AHFE 2019. [Online] Available at; https://doi.org/10.1007/978-3-030-20154-8_50 [Accessed on 03 May 2022]
Today organisations are operating under high uncertainties, risk, turbulences such as natural disasters, terrorists attacks, corporate scandals. Small scale or large scale these things have huge impact on organisation as well as individuals.(Mitroff,1988; Pearson and Clair, 1998) To minimize the impact effective crisis management practices are continuous process of learning. (Lagadec, 1997).
ReplyDeleteWhile 2020 pushed industries to panic and forced them to evolve, 2021 was the year of rebalancing with informed strategies while dealing with the aftermath of the global COVID-19 pandemic. Companies were busy learning, unlearning, and strategizing for the future, from supporting employees during difficult times and adhering to vaccination protocols to preparing for ever-evolving virus variants. The Blogger has clearly demonstrated organizational crisis with four realistic examples, which is excellent, and you can find these references for more information below.
ReplyDeleteReferences
1) empxtrack.com. (n.d.). Top 8 Global HR Trends in 2021 and Beyond - Empxtrack. [online] Available at: https://empxtrack.com/blog/hr-trends-2021/.
2) Hbr.org. (2019). Human resource management. [online] Available at: https://hbr.org/topic/human-resource-management.
Today’s business environment requires a robust, enterprise-wide plan to deal with unexpected crises. Company reputation and brand, as well as the trust and loyalty of stakeholders, are all critical factors in the background of crisis management. At the helm, HR leaders play a strategic role in organizational sustainability to contribute tangible deliverables through advance preparation, including safety and security initiatives, leadership development, talent management and solid communication plans to support crisis management.
ReplyDelete