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Crisis Management

825 Words4 Pages

In regard to a company, the consequences of crisis are visible both in internally as externally environment. Often in decline situation existing management avoid one another and denies responsibility. Once the company it’s caught in this spiral, it’s hard to reverse the threatening situation. Generally, it has been claimed by the literature that in order to successfully managing a crisis, two fundamental elements are required: accurate preventive work and considerable experience. Each crisis has a beginning and an end, what it is in the middle is the itinerary of the crisis and it should be immediately clarified, as it permits identifying possible points of departure to govern the process and, above all, intervene to abbreviate the route and …show more content…

Consequently, if it is not prepared to face it, the risk of not being able to maintain control of events and their consequences it’s higher. Besides this, it must be recognize that sometimes, there is the fear to drive the vertex of the organization affected by the crisis, triggering inadequately the management of the situation guiding the worst attitude: the inaction (Burton, 1993)
Even though the existing management cannot be directly blamed for the emergence of a crisis, it often fails to deal with it, threatening to escalate risking business continuity, the company assets and its reputation. Therefore, as the emerge of the crisis and its development can be significantly influenced by this factor, it has been argued that in the phase of turnaround the firm should underline the importance of new leaders in particular moments of the system’s development path, with the aim to heal the crisis (Golinelli, 2000; Sterman, …show more content…

However, these strategic choices have come under pressure in the current era of globalization, as leaders are required to coordinate and control much greater complexity and dynamism from the ones they performed in the past. In some cases the establishment of new leadership involves substitution of employees at a middle management, if this process is extensive than it can be said that the company faces a management reengineering (Gonzales,

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