Proactive Crisis Management (PCM) : Perceptions of crisis-awareness and crisis-readiness in organizations in relation with their actual strategic initiatives against industrial crises caused by human errors.
Abstract: Abstract Purpose: In a competitive and constituently changing global business environment, it is almost impossible for organizations to avoid crises of various types and magnitude. The objective of this study is to display relationships between perception of crisis awareness, crisis readiness and the organizations` actual crisis management initiatives against major industrial crises. This thesis also aims to clarify if the perception of crisis-awareness and crisis-readiness could be affected by other factors that should be in considerations, which in turn could affect the outcomes of crisis-management initiatives and actions in industrial organizations. Methodology: By way of introduction, the problem, which is related to the industrial crises and proactive crisis-management and which also refers to the core topic of the study was formulated and discussed. Research questions about “How the employee’s perception of crisis- awareness and crisis-readiness affects the outcomes of an organization's crisis-management initiatives?” and “How top managements could affect the employee’s perception of crisis- awareness and crisis-readiness positively toward PCM in their organization?” were identified. The covering and important data was collected through scientific literatures and articles and was presented in the theory part. Collected data and empirical findings from the world’s two largest automaker namely, Volkswagen and Toyota, whom has been involved in scandals and crises related to core research of this paper. Empirical findings has been analyzed and finally the answer to the research questions were proposed. Findings: The result of the research indicates that the perception of crisis awareness and crisis readiness in organization have a direct impact on the organizations crisis management initiatives and activities and also there are elements like Corporate Culture, Personnel Education in Crisis Management and Corporate Communication and also other factors, which would affect the perceptions in organizations. Implication: The study suggest that by effective use of elements presented here, organizations could influence employees crisis awareness and crisis readiness positively, thus strengthening the organizations crisis management capacities.
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