Types of Crises

Introduction

The crisis refers to sudden, unplanned events which cause major disturbances in the organisation and trigger a feeling of fear and threat amongst the employees.

Types of Crises

These crisis types include:

Natural.

Technological.

Confrontation.

Malevolence.

Organisational Misdeeds

Skewed Management Values.
Deception.
Management Misconduct

Due to Workplace Violence.

Due to Rumours.

Lack of Fund.

Due to Natural Factors.

The brief explanation for each type of Crises will be further elaborated.

Natural

Disturbances in the environment and nature lead to natural crisis. Such events are beyond the control of human beings.

For example: Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis, Flood, Drought all result in natural disaster

Technological

A technological crisis arises as a result of a failure in technology. Problems in the overall systems lead to technological crisis.

For example: Breakdown of the machine, corrupted software, etc

Confrontation

Confrontation crises arise when employees fight amongst themselves. Individuals do not agree to each other and eventually depend on non-productive acts

For example: boycotts, strikes for indefinite periods, internal disputes, ineffective communication and lack of coordination give rise to confrontation crisis, employees disobey superiors; give them ultimatums and force them to accept their demands.

Malevolence

Organisations face crisis of malevolence when some notorious employees take the help of criminal activities and extreme steps to fulfil their demands.

For example: Acts like kidnapping company’s officials and false rumours all lead to crisis of malevolence

Organisational Misdeeds

Crises of organisational misdeeds arise when management takes certain decisions knowing the harmful consequences of the same towards the stakeholders and external parties.

In such cases, superiors ignore the after effects of strategies and implement the same for quick results.

For example: Crisis of organisational misdeeds can be further classified into following three types:

Skewed Management Values.
Deception.
Management Misconduct

Skewed Management Values

The crisis of Skewed Management Values arises when management supports short- term growth and ignores broader issues.

Deception

Organisations face a crisis of deception when management purposely tampers data and information.

For example: Management makes false promises and wrong commitments to the customers. Communicating wrong information about the organisation and products will lead to a crisis of deception.

Management Misconduct

Organisations face crisis of management misconduct when management indulges in deliberate acts of illegality

For example: accepting bribes, passing on confidential information

Due to Workplace Violence

Such a type of crisis arises when employees are indulged in violent acts.

For example: beating employees, superiors in the office premises itself

Due to Rumours

Spreading false rumours about the organisation and brand lead to crisis.

For example: Employees spreading factually inaccurate information that tarnishes the image of their organisation

Lack of Fund

A crisis also arises when organisations fail to pay its creditors and other parties.

For example: Lack of fund leads to crisis, bankruptcy, liquidity crisis

Reference

Goh, M. H. (2015). A Manager's Guide to Implementing Your IT Crisis Communication Plan. Business Continuity Management Specialist Series. Singapore: GMH Pte Ltd.

Extracted from "Appendix 2: Types of Crises"

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