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Following Are The Types of Crisis

The document outlines different types of organizational crises, including natural crises caused by environmental disturbances, technological crises resulting from failures in systems or technology, and confrontation crises arising from disputes among employees. It also discusses crises of malevolence caused by criminal acts, as well as crises of organizational misdeeds brought on by decisions ignoring harmful consequences. Specific types of organizational misdeed crises mentioned are those involving skewed management values, deception, and misconduct.

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Sana Malik
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260 views2 pages

Following Are The Types of Crisis

The document outlines different types of organizational crises, including natural crises caused by environmental disturbances, technological crises resulting from failures in systems or technology, and confrontation crises arising from disputes among employees. It also discusses crises of malevolence caused by criminal acts, as well as crises of organizational misdeeds brought on by decisions ignoring harmful consequences. Specific types of organizational misdeed crises mentioned are those involving skewed management values, deception, and misconduct.

Uploaded by

Sana Malik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Types of Crisis

Crisis refers to sudden unplanned events which cause major disturbances in the organization and trigger
a feeling of fear and threat amongst the employees.

Following are the types of crisis:

1. Natural Crisis
 Disturbances in the environment and nature lead to natural crisis.
 Such events are generally beyond the control of human beings.
 Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis, Flood, Drought all result in
natural disaster.
2. Technological Crisis
 Technological crisis arises as a result of failure in technology. Problems in the overall
systems lead to technological crisis.
 Breakdown of machine, corrupted software and so on give rise to technological crisis.
3. Confrontation Crisis
 Confrontation crises arise when employees fight amongst themselves. Individuals do not
agree to each other and eventually depend on non productive acts like boycotts, strikes
for indefinite periods and so on.
 In such a type of crisis, employees disobey superiors; give them ultimatums and force
them to accept their demands.
 Internal disputes, ineffective communication and lack of coordination give rise to
confrontation crisis.
4. Crisis of Malevolence
 Organizations face crisis of malevolence when some notorious employees take the help
of criminal activities and extreme steps to fulfill their demands.
 Acts like kidnapping company’s officials, false rumours all lead to crisis of malevolence.
5. Crisis of Organizational Misdeeds
 Crises of organizational 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.

Crisis of organizational misdeeds can be further classified into following three types:

 Crisis of Skewed Management Values


 Crisis of Skewed Management Values arises when management supports short
term growth and ignores broader issues.
 Crisis of Deception
 Organizations face crisis of deception when management purposely tampers
data and information.
 Management makes fake promises and wrong commitments to the customers.
Communicating wrong information about the organization and products lead to
crisis of deception.
 Crisis of Management Misconduct
 Organizations face crisis of management misconduct when management
indulges in deliberate acts of illegality like accepting bribes, passing on
confidential information and so on.
ii. Crisis due to Workplace Violence
 Such a type of crisis arises when employees are indulged in violent acts such as beating
employees, superiors in the office premises itself.
 Crisis Due to Rumours
 Spreading false rumours about the organization and brand lead to crisis. Employees
must not spread anything which would tarnish the image of their organization.
 Bankruptcy
 A crisis also arises when organizations fail to pay its creditors and other parties.
 Lack of fund leads to crisis.
 Crisis Due to Natural Factors
 Disturbances in environment and nature such as hurricanes, volcanoes, storms, flood;
droughts, earthquakes etc result in crisis.
 Sudden Crisis
 As the name suggests, such situations arise all of a sudden and on an extremely short
notice.
 Managers do not get warning signals and such a situation is in most cases beyond any
one’s control.
 Smoldering Crisis
 Neglecting minor issues in the beginning lead to smoldering crisis later.
 Managers often can foresee crisis but they should not ignore the same and wait for
someone else to take action.
 Warn the employees immediately to avoid such a situation.

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