The paper "The Impact of Individual & Group Behaviour on Crisis Management" is an outstanding example of management coursework. In the context of the shipping industry, a “ crisis” can be defined in a relatively straightforward way as any occurrence that varies from the expected norms of operational performance to cause some kind of loss. That definition, however, comprises many different levels of severity; a crisis could be an unexpected minor problem, such as a mechanical breakdown that causes a delay and extra costs, all the way up to a catastrophic incident which results in the loss of the ship, crew, and cargo. Crisis management is the way in which the organisation – in this case, the ship crew and the DPA – responds to and solves the crisis.
There are many factors that contribute to the success or failure of crisis management, beginning with sound risk analysis that can help to prevent crises from occurring in the first place. Risk analysis determines the hazards that exist, and which could potentially cause a crisis; part of the risk analysis process is risk management, which is the reduction of risks as far as possible to prevent adverse effects. Even so, risk management cannot always prevent every risk from creating a crisis.
When a crisis does occur, managing it successfully depends on how well the organisation can work together to resolve the problem and minimise the loss. The behaviour of individuals and the group has a significant impact on crisis management; people may react very differently than expected in a crisis so that procedures and measures are carried out in a way that was not foreseen when they were planned. Many factors have an effect on behaviour, including the way people process information, cultural differences among people, styles of leadership, and stress factors.
This report attempts to look at factors that affect behaviours in a systematic way, with the objective to discover where human behaviour can and should be accounted for in crisis planning and management. 2. Principles of Risk Analysis & Risk Management “ Risk” can be defined as the chance that an adverse occurrence will happen and the severity of the result if it does occur. (North, 1995: 914) Risk management is one of four steps in the complete risk analysis process, which begins with risk identification, then risk assessment, risk management, and risk communication.
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