Organization crisis
- Organizational crises are high-impact, low-probability observances that jeopardize an organization's competitiveness and viability. As a result, designing and implementing an organizational system able of dealing with these traumatic events is a crucial managerial task. The application of strategies aimed to assist an organization in dealing with a sudden and severe bad event is known as crisis management. A crisis might happen as a result of an unforeseen accident or as an unanticipated consequence of an event that was previously deemed a potential concern.
- Organizational crisis occurs when a corporation has harmed its consumers or workers considerably. Rather than forging the same beneficial partnerships, these companies exploit their clients to benefit themselves or abuse their personnel to "save face."
The following are the three forms of organizational crises
1. Crisis of Deception: When a firm intentionally lies or tampers with public-facing product information, a crisis occurs.
2. Crisis of Management Misconduct: This form of crisis occurs when management engages in bad habits and acts knowingly and voluntarily.
3. Crisis of Skewed Management Values: When senior leadership prioritizes short-term financial benefits over social responsibility and disregards the interests of stakeholders such as customers and workers, a crisis occurs.
Examples of Organizational Crisis
1. Adverse government actions.
2. Anonymous accusations.
3. Assault of customers.
4. Bribery.
5. Competitive misinformation.
6. Computer tampering.
7. Confidential data loss or information disclosed.
8. Copyright infringement.
9. Counterfeiting.
10. Damaging rumors.
Cause of organizational Crisis
1. Poor maintenance practices.
2. Human error.
3. Bad planning.
4. Material failure.
5. Unethical or dishonest behavior.
6. Unresponsive culture.
7. Leadership failure.
8. Poor judgment.
9. Maintenance staff, designers, and accountants, for example, have insufficient training.
Types of crisis
1. Natural disaster
2. Crisis management
3. Technology
4. Finance
5. Organization
6. Violence
8. Energy crisis
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