Management by Crisis: Short-Sighted Policy in Administration

Management by Crisis refers to a reactive method of administration where strategies are formulated as events occur. This often leads to organizational confusion due to its shortsighted nature.

Management by Crisis (MBC) is a reactive, rather than proactive, approach to administration. It is characterized by formulating strategies and responses only when crises or unexpected events occur. This method of management is generally regarded as shortsighted, often leading to organizational confusion and inefficiency.

Characteristics of Management by Crisis

• Reactivity: Decisions are made in response to crises rather than in advance of potential challenges.
• Lack of Planning: Insufficient strategic planning leads to ad-hoc and hasty decision-making.
• Short-Term Focus: Emphasis is placed on immediate problem resolution rather than long-term goals.
• Stress and Confusion: Frequent crises can create a stressful work environment and organizational confusion.
• Resource Strain: Constantly responding to crises can overwork employees and deplete resources.

The Process of Management by Crisis

• Crisis Emergence: An unexpected problem or opportunity arises.
• Immediate Response: Management assembles a team to handle the situation.
• Short-Term Solutions: Solutions are crafted to address the immediate issue.
• Repeat Cycle: The process repeats with each new crisis, often with no significant learning or planning for future prevention.

Historical Context

Historically, many organizations have defaulted to a Management by Crisis approach during periods of rapid change, economic turmoil, or political instability. It became more noticeable during times such as the Industrial Revolution and the early information age, where rapid developments made strategic foresight challenging.

Applicability in the Modern World

Pros

• Flexibility: Allows for a rapid response to unforeseen circumstances.
• Adaptability: Organizations become adept at managing change in real-time.
• Problem Solving: Strengthens problem-solving skills among management and staff.

Cons

• Inefficiency: Lack of planning leads to waste of time and resources.
• Employee Burnout: Continuous stress and pressure can lead to high turnover rates.
• Unpredictability: The organization lacks stability and clear direction.

Comparisons

Framework	Stability	Strategic Planning	Resource Allocation
Management by Crisis	Low	Minimal	Inefficient
Proactive Management	High	Extensive	Efficient

Related Terms

• Crisis Management: The process of handling crises in a systematic and planned manner.
• Strategic Planning: A proactive approach to setting long-term goals and determining the best methods to achieve them.
• Reactive Management: Managing by responding to events after they have occurred.

FAQs

What is the main drawback of Management by Crisis?

The main drawback is the lack of strategic foresight, which often leads to inefficiencies and organizational confusion.

How can an organization shift from Management by Crisis to Proactive Management?

Organizations can shift by developing comprehensive strategic plans, training staff in crisis prevention methods, and fostering a culture that prioritizes long-term goals.

Is there any situation where Management by Crisis is beneficial?

MBC can be beneficial in environments that are inherently unpredictable and require a highly flexible approach, such as emergency services and certain entrepreneurial ventures.

References

1. Drucker, P. F. (2001). Management Challenges for the 21st Century. HarperBusiness.
2. Kotter, J. P. (1996). Leading Change. Harvard Business Review Press.
3. Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Prentice Hall.

Summary

Management by Crisis is a reactive and often less efficient form of management that responds to issues as they arise rather than through premeditated planning. While it offers the advantages of flexibility and adaptability, the drawbacks of organizational instability and inefficiency underscore the importance of incorporating strategic planning and proactive management practices.