Art of Leadership & Motivation
HRM – 760
Lecture 13
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood
Role of Leader in Crisis Management
FACE REALITY,
STARTING WITH YOURSELF
• The reality of the crisis is the most important lesson of
all. Until you acknowledge that you are facing a serious
problem, you cannot move forward to solve it.
• The crisis isn’t going to fix itself, so denying its
existence can only make things worse—much worse.
• That reality must start with you and your
acknowledgment of your role in the crisis itself.
CRISIS
A crisis can be defined as any unplanned event,
occurrence or sequence of events that has undesirable
consequence.
A crisis is a change – either sudden or evolving – that
results in an urgent problem that must be addressed
immediately.
A major crisis can affect the entire organization and, in
some cases can lead to its collapse.
We must act quickly to recognize its root causes,
contain it, and eventually resolve the crisis with the least
amount of damage.
Understanding Crisis
Crisis can affect all segments of society – businesses,
hospitals, educational institutions, families, and are
caused by a wide range of reasons.
The definitions can vary greatly, three elements are
common to most definitions of crisis:
1. threat
2. surprise, &
3. short decision time.
Human Psychology
during a Crisis
• Emotional Effects: Shock, terror, bad temper, blame,
anger, guilt, grief or sadness, high emotions,
helplessness.
• Cognitive Effects: Impaired concentration, impaired
decisionmaking, memory impairment, confusion.
• Physical Effects: tiredness, sleeplessness.
• Interpersonal Effects: Increased relational conflict,
social withdrawal, distancing, distrust.
Crisis - common features
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Time is short
Decisions are required urgently
Specific threats are identified
Urgent demands for information are received
There is sense of loss of control
Pressures build over time
Demands are made to identify someone to blame
Reputation suffers
Communications are increasingly difficult to manage
CRISIS MANAGENENT
Crisis Management consists of skills and techniques
required to assess, understand, and cope with any serious
situation.
With effective Crisis Management, we can minimize the
impact of potential crisis, avoid altogether – or in some
cases, even benefit from a crisis.”
Crisis Management
Objectives
1) Reducing tension during the incident
2) Demonstrating commitment & expertise
3) Controlling flow & accuracy of information
4) Managing resources effectively
Crisis Management:
the ultimate test
of leadership
• There is nothing like a crisis to test your
leadership.
• Like being in a war, crisis test you to your
limits because the outcome is rarely predictable
• Leaders develop through crisis
TYPES OF CRISIS
Natural (cataclysmic) events –
uncontrollable natural events, health disasters, earthquakes,
floods, fire, disastrous accidents, environmental pollutions.
Technology breakdowns –
data loss, security breaches, outofdate equipment.
Economic and market forces –
market swings, investment bubbles.
Businessrelated crisis – sudden death of a crucial leader,
serious breach of law, vendor fails to deliver critical supplies,
employee stealing from a client.
TYPES OF CRISIS
Personal Crisis events that have special meaning to
individuals and only individual suffers – failing exams,
divorce, being unemployed, etc.
Confrontation Crisis – e.g. disputes.
Acts of Malevolence – e.g. terrorism, kidnapping
Misconduct Crisis e.g. harassment, corruption, fraud, false
invoicing
Smoldering Crisis problems or issues that start out small
and could be fixed if someone was paying attention or
recognized the potential for trouble.
e.g. financial crisis in an organization, strike by union etc
HOW TO DEAL
WITH CRISIS ?
GET THE WORLD
OFF YOUR SHOULDERS
• You cannot get through this alone, so don’t try to carry
the whole world on your shoulders
• Reach out to others to share the burden and help you
come out a winner
• This is a great opportunity to strengthen chemistry
within your team, because the strongest bonds are built
in crisis.
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood