Leadership role in crisis management

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Dr. Forqan Uddin Ahmed :
Business crises are, by definition, unexpected and they happen outside and beyond usual business routines. Despite the character of unexpectedness, the majority of crises do not happen suddenly but as a result of a series of warning events and incidents. A company as a whole can usually run smoothly and grow steadily even though problems continually arise in different parts of the organization. Whether it is a corporation, a family, or even an individual, life rarely goes on year in and year out without some trouble or worry. This is one of the constants of human life.
Conflicts among employees or among management personnel can play havoc with the human relations within sections or departments of any company. Although undesirable, problems of this kind are bound to occur. While some friction among employees has to be tolerated, as an experienced manager knows, a little extra care taken when making appointments can ease the situation considerably. If a department is run by three section chiefs, for example, there will be differences of opinion, especially if the three people have similar personalities and abilities. To prevent frequent confrontations, choose people who is a good decision-maker
It is assumed that leaders would not be part of the problem, but only its solution. Yet, in real life, it is sometimes just the opposite and the crises happen as a result of inadequate behaviour of leaders before the crisis, or, even more frequently, the crises are not resolved in the most efficient way because of inadequate leadership in the crises. Future behaviour of business leaders in some unknown potential crisis situation is rarely foreseen as a problem and often assumed as adequate. The role of leadership in planning for crisis and managing crisis is to be particularly considered within contextual dimensions of responsible leadership, stakeholder management and sustainability.
Business leader in a contemporary company is a captain of a ship that sails no calm waters. His or her ship sails in the “perfect storm”, which is defined by complexity, diversity and insecurity. The successful and efficient leader, particularly the authentic leader, is expected to display not only integrity and sincerity but also courage and honesty. On the conceptual level, the first two challenges, the complexity of business environment and the imperative of diversification strategy can be treated as rational (complexity) and emotional (diversification) areas of involvement. The third issue, the matter of security, encompasses instincts and personal courage which are particularly important elements of the overall personality of a leader.
Effective leadership is effective to overcoming the crisis. Leaders should be visible during the crisis. Leaders should work to develop a positive company reputation during normal times to build a reservoir of good will, Leaders should be open and honest following a crisis, Leaders who manage crises successfully may create opportunities for renewal. Leaders should cooperate with stakeholders during a crisis and should work to build a consensus. Poor leadership can make a crisis much worse. Leaders must adapt their leadership style and contingencies during crises. A virtuous response to a crisis by the organization’s leaders may be the most effective in generating support sand renewal. Leaders have specific communication obligations for managing and learning form crises.
Leadership in times of crisis is particularly demanding. Although companies cannot fully plan for crises they can, and many do, use numerous scientifically based management processes to install crisis management routines into operations and to include potential risk and vulnerability assessments into strategy debates and planning process. In these processes roles of leaders need to be given special emphasis and consideration for various reasons, the renewal after crisis as an opportunity and the revival of company’s reputation being one of the most important, yet not the only reasons. Usually, the leader is not the member of crisis management team but a decision maker who only makes the decisions based on assessment and proposals of the team. Yet, he or she, nevertheless, remains the most important individual in the times of crises, very much exposed to the global exchange of information in new media and social networks that the company cannot control. Being in the spotlight, the leader cannot be a solo player. He or she is not only the most responsible manager on the board of a company in crisis, he or she is very often the most visible symbol of the company with all the long term implications this has on the future survival of the company.
We must remember, also, that ability and aptitude are not fixed or unchanging. Most people are constantly growing in their occupation. It is important to be able to accurately gauss our abilities at any particular point in our careers and be careful not to take on jobs that exceed them.
At the same time, however, we should constantly try to improve our capacities. The more skills and knowledge we acquire, the more ambitious projects and difficult assignments we can take on. A solid grasp of your own ability can magnify the enjoyment and satisfaction you receive from the labor you invest, including the confidence that we are making a significant contribution to society and the world.

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