PART ONE Flashcards
What is the definition of a crisis, and how does it differ from normal business operations?
A crisis is a major occurrence with a potentially negative outcome that affects an organization and interrupts the normal flow of business. Unlike regular operations, a crisis presents unexpected challenges that require immediate attention and response.
Explain the concept of crisis management and its importance to organizations.
Crisis management is a strategic planning process that prepares organizations for potential crises. It is crucial because it helps mitigate risks, allows organizations to control their responses, and minimizes the uncertainty associated with negative events, ultimately protecting the organization’s reputation and operations.
How does effective crisis communication contribute to crisis management?
Effective crisis communication establishes a dialogue between the organization and its stakeholders, helping to convey accurate information, reduce uncertainty, and build trust. It can alleviate the impact of a crisis and may even enhance the organization’s reputation if managed well.
What are the key questions to consider when assessing potential crises for an organization?
Key questions include:
What are the worst things that could happen?
What can we prevent?
What are we willing to do to prevent these events?
Can we afford the risk?
How will we deal with a crisis if it occurs?
What communication strategies will we implement during a crisis?
How do the characteristics identified by Hermann (1963) differentiate crises from other events?
Hermann identified three characteristics:
Surprise: Crises often come unexpectedly, exceeding normal expectations.
Threat: They create serious threats to the organization’s operations, finances, or reputation.
Short Response Time: Organizations have limited time to respond effectively, necessitating quick decision-making.
Discuss the difference between a crisis and a disaster. Provide examples of each.
A crisis is an event that creates instability and poses threats to an organization, such as a product recall or a data breach. A disaster is a larger-scale event causing significant physical damage, like an earthquake or a terrorist attack.
What are some examples of intentional and unintentional crises?
Intentional crises: Terrorism, sabotage, workplace violence, unethical leadership.
Unintentional crises: Natural disasters (like hurricanes), disease outbreaks (like pandemics), product failures, and economic downturns.
Define uncertainty in the context of crisis management. What factors contribute to uncertainty during a crisis?
Uncertainty refers to the inability to determine the present or predict future outcomes during a crisis. Factors include lack of information, complexity of the situation, and rapid changes in circumstances.
How do epistemological and ontological uncertainties differ? Provide examples of each.
Epistemological uncertainty relates to a lack of knowledge about the crisis (e.g., not knowing the full scope of an incident). Ontological uncertainty involves situations where future conditions are unrelated to the past (e.g., a new, unforeseen crisis that changes the operational landscape).
What is Uncertainty Reduction Theory (URT), and how does it apply to crisis communication?
URT posits that uncertainty creates a need for communication to seek information, helping to alleviate anxiety. In crises, organizations must actively provide information to reduce stakeholder uncertainty and build trust.
How does threat perception contribute to uncertainty during a crisis?
Threat perception can vary among stakeholders; some may see a situation as critical, while others may not. This divergence contributes to uncertainty as it affects how different parties respond to the crisis.
Why is it crucial for organizations to communicate early and often following a crisis?
Early and frequent communication helps to manage uncertainty, keeps stakeholders informed, and prevents misinformation from spreading, thereby maintaining trust and credibility.
What are some key questions stakeholders might have after a crisis, and why is it important for organizations to address these?
Stakeholder questions include: What happened? Who is responsible? What should we do next? Addressing these questions is vital to reduce anxiety, restore confidence, and provide clarity about the organization’s response.
What are the different approaches organizations can take when responding to a crisis? Which approaches are most effective, and why?
Organizations can respond with routine procedures (e.g., firing responsible individuals) or unique solutions (e.g., addressing systemic issues). Unique solutions are often more effective as they tackle underlying problems rather than just symptoms.
Discuss the implications of responding to crises with routine solutions versus unique solutions.
Routine solutions may provide short-term relief but often fail to address the root causes of a crisis. Unique solutions foster long-term improvements and can prevent similar crises from occurring in the future.
