Crisis management

Most managers’ regular jobs are interrupted occasionally by a crisis. Since such an event is an extreme of one sort or another, its consequences can also be extreme. So the proper handling of crisis is of vital importance to a business. The classic case of crisis management occurred in 1990 when the Perrier bottled water company withdrew 160 million bottles from shops around the world after unacceptably high levels of benzene had been found in its water.

Learning about crisis management is a bit like learning the safety instructions in an aircraft before takeoff: you hope you will never need them, but you are not going to skip the class. Here are a few widely recommended hints.

· Look out for advance warning of an impending crisis.

· Have a contingency plan and an alternate product or process ready.

· Speed of reaction is vital.

· Do not overreact.

· Watch out to see if competitors are trying to take advantage of your crisis.

· Be prepared to give up market share initially.

· Do not assume that everybody is hostile, and do not clam up.

· A crisis is the time to call upon goodwill that has been fostered during the good times.

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Participative management

A company that has a regular system for involving its employees in decision making is using participative management. Rather than being a particular manager’s style, participative management is an overall approach adopted by an organization. It has been widely and successfully used in Japan, and some American companies have practiced it for many years.

The participative approach to management is considered an important tool for today’s companies. It works when employees have knowledge and experience that can make a positive contribution to the decision-making process.

The success of participative management depends on managers who are willing t involve others and lead them in productive meetings and group problem-solving sessions. It is up to the manager to solicit ideas and encourage and debate. Although participative management does improve human relations, its major value is in improving productivity and quality while reducing costs.

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