Role and Significance of Crisis Management in Enterprises

Abstract :

Dynamically changing environment, necessity to adjust to the growing demands of customers and emerging crises in the organisation force the enterprises to verify their hitherto modes of operation. A crisis is a unique situation which determines the mode of functioning of an organisation. A crisis is often perceived as a pejorative phenomenon, which adversely affects the organisation’s development and is a threat for the meeting of its goals and, in case no steps or incorrect steps are taken, may lead to the fall of the enterprise. However, it may also be a stimulus to act and it may constructively affect the company’s operation. A company, reacting to a crisis, has to assess the conditions both in its environment, as well as internally and verify the artefacts, the system of values and the major principles which form the basis of building its organisational culture. Therefore the management, apart from taking steps related to current operation, should also act in the area of crisis management.?