Prof.Dr.Aung Tun Thet CRISIS MANAGEMENT. “Whatever you do will be insignificant, but it is very...
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Transcript of Prof.Dr.Aung Tun Thet CRISIS MANAGEMENT. “Whatever you do will be insignificant, but it is very...
Food and Fuel CrisisFood and Fuel Crisis Global Warming CrisisGlobal Warming Crisis
Asian Financial CrisisAsian Financial Crisis
Population CrisisPopulation Crisis
Human Security CrisisHuman Security Crisis
AIDS CrisisAIDS Crisis
Drug CrisisDrug Crisis
Crisis (Crises)
Mid-Life CrisisMid-Life Crisis
Succession CrisisSuccession Crisis
Crisis
DANGER
If you avoid it
OPPORTUNITY
If you face it
Crisis
• Affect all segments of society
• Caused by a wide range of reasons
• Three common elements
a) a threat to society,
b) the element of surprise, and
c) a short decision time
Humans• Experience crisis
• Caused by societal tragedies, for e.g. Nargis cyclone - large magnitude act of nature beyond our control
• Personal experiences - illness, death, or another difficult experience
Reactions
• Different to the same crisis
• Emotional experiences unique
• Changing nature of crisis response
• Fear - insecurity • Stress - Good stress and bad stress• Guilt, Shock, and Disbelief• Post Traumatic Stress Disorder • Anger
Phases • Shock - disbelief
• Denial - "This can't be happening to me." “This cannot be correct. Let's get another opinion."
• Overwhelming thoughts or emotions - day dreams, fantasies, depression, shame, or anxiety
• Acceptance
• Conclusion
Tips
• Communication most important -listening, comforting and supportive dialogue
• You are not alone• Share Feelings • Take steps - positive action to relieve
panic or pain• Pray Use your faith to get through
Proactive Model
STIMULUS RESPONSEFREEDOM
TOCHHOSE
Self-Awareness
ImaginationConscience
IndependentWill
U.K.
• During the next five years,
• 83% of companies will face a crisis
• that negatively impacts the profitability of a company 20 to 30%
Crisis management
• A new field of management
• Forecasting potential crises and planning to deal with them, e.g., how to recover if your computer system completely fails
• Completing a crisis management plan before they experience a crisis
Crisis management
• Identifying the real nature of a current crisis,
• intervening to minimize damage and• recovering from the crisis
• Strong focus on public relations to recover damage to public image and assure stakeholders
Crisis management• A discipline within the broader context of management
• Skills and techniques • to assess, • understand, and • cope with any serious situation, • from the moment it first occurs to the recovery point
• Methods used to respond to both the reality and perception of crises
Crisis management
• Systematic attempt to avoid crises or to manage those crises events that occur
• Incident Management
Organizational crises
• Extortion• Bribery• Hostile Takeover• Terrorist Attack• Copyright infringement• Vehicular fatality• Information sabotage• Workplace bombing• Natural disasters • Computer tampering• Sexual harassment
• Executive kidnapping• Product/service boycott• Work-related homicide• Malicious rumour• Hazardous material leak• Plant explosion• Personnel assault• Assault of customers• Product recall• Counterfeiting
4 types of organizational crises
I. Sudden - fires, explosions, natural disasters, workplace violence, etc;
II. Smouldering - problems or issues start small and could be fixed or averted if someone pay attention or recognize the potential for trouble
III. Bizarre - a one-of-a-kind crisis
IV. Perceptual - long-running problem
Organizational Crisis Management
• The process by which the organization manages a wider impact,
• such as media relations, and
• enables recovery
Crisis Management Framework
• Based on existing management structures and responsibilities
• Reflect (or improve upon) existing lines of communication, both within the company, and with other organizations affected
Lessons Learned• Bhopal
• Poor communication before, during, and after the crisis cost thousands of lives
• Importance of cross-cultural communication
• Union Carbide’s management placed under house arrest
• Symbolic intervention counter productive
• Difficulty in consistently applying management standards to multi-national operations and the blame shifting
Ford and Firestone Tire and Rubber Company (2000)
• 100 deaths• Recalled 6.5 million tires• Committed three major blunders1. Blamed consumers for not inflating their tires
properly2. Blamed each other for faulty tires and faulty
vehicle design3. Said very little about what they were doing to
solve a problem that had caused more than 100 deaths
Exxon (1989)
• Tanker ran aground in Alaska• Spilled millions of gallons of crude oil• Killed thousands of fish, fowl, and sea otters• Hundreds of miles of coastline polluted and
salmon spawning runs disrupted• Numerous fishermen, lost their livelihoods
Exxon (1989)
• Did not react quickly in dealing with the media and the public
• CEO not an active part of the public relations effort and actually shunned public involvement
• No communication plan or a communication team in place
• Media center too small and too remote to handle the media attention
• Acted defensively, even laying blaming others
Empowering PeopleInvolve Everyone in Everything
Use Self Managing Teams
Listen/Celebrate/Recognize
Spend more time on recruiting
Train and Retrain
Provide incentives
Guarantee employment
Simplify/Reduce Structure
Recognize Middle Manager’s role
Eliminate bureaucratic rules
Leadership at all levelsMaster Paradox
Develop an inspiring vision
Manage by example
Practice visible management
Pay attention (more listening)
Defer to front line
Delegate
Horizontal Management
Evaluate everyone on love of change
Create a sense of urgency
National Crisis
Emergency Management
Natural disaster
• Consequence of a natural hazard
• Human vulnerability - leads to financial, structural, and human losses
• Depends on the capacity of the population to support or resist the disaster, their resilience
Disasters occur when hazards meet vulnerability
• A natural hazard will never result in a natural disaster in areas without vulnerability
• Strong earthquakes in uninhabited areas
Emergency Management
• The discipline and profession of applying science, technology, planning, and management to deal with extreme events
• Effort to respond to emergencies and disasters
Emergency Management
• Prompt but short lived "first aid" and
• Longer term recovery and restoration phases (e.g. moving operations to another site)
• Increased understanding generate a more resilient society
Comprehensive Emergency Management (CEM)
• A holistic approach to disasters that takes into account all types, hazards, phases and actors related to emergency management
• Involves four interlinking phases
Four phases of CEM: unique relationships
Response Mitigation
PreparednessRecovery
activities to prevent a disaster
or minimize adverse impact
planning, training,
exercises and community education
provision of disaster assistance, debris removal, rebuilding
and relocation
search and rescue, evacuation, emergency medical services, and firefighting
Significant responses resulting from
Emergencies and Disasters
1. Uncertainty
2. Urgency
3. Consensus
4. Expansion of Citizenship Role
Traditional model
• Historically employed in disasters
• The civil defense, command and control, bureaucratic or emergency services perspective
Weaknesses
• Overlooked contributions of others
• Standard operating procedures do not work in every disaster
• Dealing with unpredictable or dynamic environments
• Rigid, cumbersome and even ineffective or inefficient
Professional model
• Advocated by many scholars
• Networking, Problem Solving or Emergent Norms or Public Administration viewpoint
Professional model
• Suggests:
• People resilient
• Individuals, groups and agencies inevitably involved in disasters
• Necessitate flexibility and departures from routine methods
The professional approach
• More inclusive and flexible
• Alternative to the traditional response model
Strengths
• Recognizes involvement of many actors
• Underscores the need to integrate activities
• Allows for flexibility in response
• Advocates resolving the situation even if it means departing from the emergency operations plan
Weaknesses• Reduces the importance of the central
authority
• Fails to recognize the need for hierarchical leadership
• Overlooks importance strategies developed in the past and tested over time
• Involvement of many actors create challenges (e.g. coordination of volunteers)
Compare and contrast
• Similarities and differences • Comparison involves examination of:• respective goals• levels of analysis• assumptions• and recommendations
Compare and contrast
• Each recognize the adverse effects of emergencies and disasters
• Attempt to resolve them in the quickest and most effective way possible
Significant differences
Traditional Model Professional Model
Level of analysis
Most applicable to emergencies and responses by practitioners in the field
More concerned about disasters and activities regarding the entire response system
Significant differences
Traditional Model Professional Model
Assumptions Chaos in society
Society possibly break down
Continuity of society
People and organizations deal with adverse situations in a logical and expected manner
Significant differences
Traditional Model Professional Model
Recommendations
Command and Control
Leadership needed to make correct decisions
Coordination and Cooperation
Individuals and agencies resolve problems by communicating and assisting one another