What are the main types of crisis?

Introduction

Crisis refers to sudden unplanned events which cause major disturbances in the organization and trigger a feeling of fear and threat amongst the employees. The category of crisis types include:

• Natural
• Technological
• Confrontation
• Malevolence
• Organizational Misdeeds
  • Skewed Management Values
  • Deception
  • Management Misconduct
• Due to Workplace Violence
• Due to Rumours
• Lack of Fund
• Due to Natural Factors

Natural

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

For example Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis, Flood, Drought all result in natural disasters.

Technological

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

For example Breakdown of the machine, corrupted software and soon give rise to the technological crisis.

Confrontation

Confrontation crises arise when employees fight amongst themselves. Individuals do not agree with 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

Organizations face a 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 a crisis of malevolence.

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.

For example, Crisis of organizational misdeeds can be further classified into the 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

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

For example, Management makes fake promises and wrong commitments to the customers. Communicating wrong information about the organization and products lead to a crisis of deception.

Management Misconduct

Organizations face a crisis of management misconduct when management indulges in deliberate acts of illegality

• For example: accepting bribes, passing on confidential information.

Due to Workplace Violence

Workplace violence is a type of crisis that arises when employees are indulged in violent acts

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

Due to Rumours

The spreading of false rumours about the organization and brand leads to a crisis.

• For example, Employees spreading factually inaccurate information which tarnishes the image of their organization.

Lack of Fund

The crisis also arises when organizations fail to pay their creditors and other parties.

• For example Lack of funds leads to crisis, bankruptcy and any other liquidity crisis.

Goh, M. H. (2016). A Manager’s Guide to Implement Your Crisis Management Plan. Business Continuity Management Specialist Series (1st ed., p. 192). Singapore: GMH Pte Ltd.

Extracted from Appendix 2: Crisis Types

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