International Management Essay
The present study undertakes the one of the burning issues of today’s world: Crisis Management. The very area of study is a much-studied one in the corporate sector around the world which is equally important for all the countries regardless of the size of volume of population. This is because of the reason that crisis management deals with systematic treatment of a crisis and much more. To handle a crisis or a disaster in a systematic way is fast becoming the challenge of the present world. The reasons are far and numerous.
However, the most glaring reasons are new and massive forms of disasters are emerging. The examples are earthquakes and other calamities caused by the change in global environment, and most of all, terrorist attacks. The result of these disasters is immense loss of human and material capital. Thus governments and companies are coming up with more solid research and policies to fight the crisis in different ways. As such, the study examines and answers the following questions: 1) What is crisis management in the context of today’s corporate world and major governments?
2) What latest contributions have been recorded in the corporate and governmental sector? Or how is the term
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ii) The study then examines the operations of the three major countries of the world so that a practical application of crisis management can also be obtained as far as these three governments are concerned. The research technique that the present study bases on is triangulation of the data. Another important aspect of the study is to look for the most recent development of the crisis management phenomena in the corporate culture and the research done in the very area.
The study then looks at the issue from as many different perspectives as possible: Internet journals, major corporate researches and development: the firms those are exclusively dealing with the crisis management services, and so on. Purpose of the Study The purpose of the present study is to have a through understanding of Crisis Management, its challenges and limitations, so that more general awareness can be created both on the common as well as on the corporate and governmental front. This is for the reason that so much is being recorded when it comes to disasters and calamities.
The intellectual circle is now more on the side of the development of crisis management because it is the need of the present century. Thus the present paper elaborates on this up-to-present much neglected issue of crisis management and also brings as its model the current development in the corporate sector globally and in the major three countries. Therefore, the paper provides a worldview on the issue crisis management. This is a very effective study when it comes to the overall and latest study regarding crisis and its management in a systematic way.
It is aimed that the study will help understand the issue of crisis management more coherently and forward steps can be taken in the light of the extensive research that the paper brings from different perspectives. Crisis Management: a Review In today’s world of Information technology, the World Wide Web, with technological advances like extensive space exploration, cellular networking around the globe, and so on, the body of knowledge is expanding with a very fast pace.
This expansion in the body of knowledge is due to extensive research, and studies not only in the present disciplines of knowledge themselves, but also in the naturally occurring circumstances that need immediate concerns of human mental labour as they leave grave marks on the history of life in general. The marks are more prominent whenever life on the mother planet Earth is disturbed by any unforeseen calamity.
However harsh their jaws maybe, today, man has stood up to fight the unforeseen and is trying hard to cope with such situations in time so as to save more damage and trying to delay as well as reduce the happenings of such occurrings in the future. This struggle, to put in short, in today’s world is known as the Crisis Management in which, intellectuals (generally known as managers of some firms, departments, or governments) sit together to find out ways through which life can be saved from the harsh strokes of lethal calamities.
If such a calamity has, after all, struck, then these intellectuals try to reduce the sufferings on the part of their fellow human beings. Other elements considered for serious safety are the financial, administrative, and property losses in short. “Crisis management will include a response to an incident involving a weapon of mass destruction, special improvised explosive device, or a hostage crisis that is beyond the capability of the lead federal agency” (thefreedictionary.
com). When we talk about in-depth analysis of crisis management, there is no doubt that to avoid ambiguity and to improve our understating of the subject, we first need look into the meaning of the terms associated with this discipline of knowledge today. Hence, in the introduction, I would, first of all, draw an understanding of both the terms: ‘crisis’ and ‘management’; after that I would like to pursue the context in which both these terms are used in the field of management.
I would, however, stick in my analysis of the present issue to the definition and understanding of these terms in the manner as they are known in today’s business and management world globally. For example, the word crisis, in human psychology, psychiatry, and so forth, has a rather different association from the crisis that is referred to business and management world (Mja. com. au).
Here, it is seen more in the situation of mental process and responses to human life and this is not the concern of the present paper. According to a source, in today’s context of business and management of productivity and profit, the word crisis (crises for plural) “is a turning point or decisive moment in events. Typically, it is the moment from which an illness may go on to death or recovery. More loosely, it is a term meaning ‘a testing time’ or ’emergency event’” (Wikipedia. org).
As such in today’s time crisis applies to a time where a natural (like Tsunami, Katrina, and so forth) or man-caused disaster (such as terroris attacks on the World Trade Centers: USA, or elsewhere) strikes life on this planet causing huge suffering and chaos to other fellow human beings as well as bringing enormous financial, administrative, and social losses to life. As such, there has always been struggle, in business world, to save life, both human and of material, from the damages done by a crisis occuring in any form or shape.
According to another source we find out the definition and the need to focus on a crisis situation in today’s context of business and managemet, whether it is a private venture of an effort from a govenment: “A crisis can be defined as any unplanned event, occurrence or sequence of events that has a specific undesirable consequence. Natural disasters, financial manipulation, societal disruption, pollution and stringent regulations are but a few examples of potential crisis situations.
The reasons for focusing on these issues may result from a commitment to protect the public, your employees, to comply with government regulations or to protect the firm from possible liabilities and litigation. The consequences for not focusing on these issues can be disastrous” (palimpsest. stanford. edu). Some intellectuals are of the opinion that there is difference between a crisis, and disaster. For example, to such intellectuals as James E. Lukaszewski, ABC, APR, Fellow PRSA: “Crises are caused by human beings through commission, omission, accident, negligence, or ignorance.
Disasters are generally natural events beyond human control – tsunamis, earthquakes, hurricanes, tornados, and incredibly powerful storms. Disasters produce victims, but unless responders act negatively, carelessly, or callously, there is far less potential for blame, bad news, or mindless victimization and collateral damage” (proquest. umi. com). If put this way, crises are the terrorist attacks, managerial carelessness, and so forth that cause damage to business operations such as productivity, management of manpower, and so on.
However, this mutually exclusive difference between a disaster and crisis is no more in practice when it comes to crisis management as a discipline and a branch of business management. As such companies seek to work against any disaster, calamity, damage, naturally occurring ill-happenings, and so forth, by limiting it into the circles of crisis management. Hence, “Crisis Management is a systematic response to unexpected events that threaten the people, property and operating continuity of the organization” (crisismanagement-disasterrecovery.
com). Moving along the lines of our analysis, we find that the term management in today’s time is a function that “characterizes the process of and/or the personnel leading and directing all or part of an organization (often a business) through the deployment and manipulation of resources (human, capital, intellectual or intangible)” (Wikipedia. org). It is also “viewed as a subset of administration, specifically associated with the technical and mundane elements within an organization’s operation” (administrationinfo. com).
Hence, for crisis management, we can say that, in a business activity or operation, a crisis is a testing time that has come to pass due to some unforeseen circumstances. And it is the business personnel that have to deal with this testing time. As such they have to put efforts so as to reduce the damages occuring due to a crisis as well as try to maintain business. The meaning of efforts in business management is also changed today. Now it means employing skills to handle a situation and not the employment of natural human reactions, or intutions. This is because skills can be taught and learned.
They can also yeild expected results if observed according to the set procedures. For crisis management, therefore, there are certain procedures that the business personnel deploy today to fight a crisis. In the next section, I will bring to light the specific branch of crisis management as it exists today in the twenty first century. I would also study the operations of crisis mangement in different countries like the United Kingdom, the United States of America, and China, to analyse the on-going progress in the field of crisis mangement in business world.
I intend to carry out this countrywise analysis of my case in an attempt to draw a broader understanding of crisis management. It is also intended to provide the reader with more data so that the reader can come to a proper assessment of the issue of crisis management and its pros and cons in the business world of the twenty first century. Crisis Management in Twenty-first Century Put together, the term crisis management is seen as one of the most on-talks issues of the twenty-first century.
In business, a crisis can mean discontinuity to productivity, installment of manpower, and so on: resulting in complete failure to make profit and maintain repute in the market. Thus, today, managers and companies look more cautious when it comes to dealing with an unforeseen crisis. This trend especially took to sky-high focus of the business world after such disasters as the terrorist attacks on the World Trade Centers, USA, Tsunami, Indonesia, and Katrina, USA. In these three major catastrophes, many companies lost a huge amount of their assets, and repute due to the damage registered by these crises.
In the context of the twenty-first century, crisis management is to deal with a crisis in quickly and effectively once it has struck a company site or the like. The effective crisis management needs certain steps to be followed. First of all, the most important factor is a trained team of professional managers, other professionals, technicians, and the general staff of a company. The people as a team, then, are trained: ? to analyse and evaluate the consequences of a threat. ? to carry out a development of some alternative ways and to implement those procedures to fight a crisis.
? to observe a systematic communication of on-going information among their network. The communication is effective as it spreads from bottom to top if need arises or the other way around. This communication is also the process of informing all on a team of the decision making process in a time of crisis. ? there is professional commitment to recover from the crisis that has struck a company lately. Crisis management is best at practice when the team as a whole is also sifted through the following managerial steps so that a most effective outcome can be obtained. a) Reduction of Personal Liability
For effective crisis management, a company should form such a managerial structure that can ensure the reduction of the personal liability of the staff in general and directors and managers in particular. This procedure is a must to make certain that arrangements of contingency plans, recovery efforts, and so forth are not marred by any personal liability of the concerned people on a company. Thus if a person professionally follows the set rules of an organization, it builds a sense of trust by that person because the “Persons who act for organizations are in a position of trust with that organization.
They manage and protect it in the best interests of the shareholders, who are owners of the organization” (crisismanagement-disasterrecovery. com). b) Immediate Actions for the Safeguarding Every possible effort should be made to safeguard the existing assets, productive equipment and so forth. This can only be possible in a more effective way if a company has on its disposal a team trained for such a crisis situation; otherwise, “Product, facilities, equipment and people can all be threatened by a disaster situation.
Without implemented and rehearsed emergency response programs, the chaotic atmosphere and stressful conditions will prevent an organized and immediate response. The losses that could be suffered will increase substantially with every passing hour” (crisismanagement-disasterrecovery. com). The team must be trained how to carry out procedures that need immediate action as “Only the immediate actions of the organization can minimize the loss or inaccessibility of corporate assets” (crisismanagement-disasterrecovery. com).