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Identify the key factors that affecting crisis management effectiveness in the private sector

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Identify the key factors that affecting crisis management effectiveness in the private sector


1. Introduction

As per Brandebo, (2020), the organisations are using different types of strategies so that they can manage crisis of the organisation which are related to the financial and resources. Apart from this, there are various factors which affect the entire planning of the business which they create after facing any crisis in the business. The current research is based on analysing the key factors which happened in the organisation and affect the effectiveness of crisis management. With the help and analysis of this research it will become effective to understand the strategies that can be use for managing the internal functionality of the business so that negative influences can be removed.

1.1 Research title or topic

“Identify the key factors that affecting crisis management effectiveness in the private sector

1.2 Rationale

Crisis management considered as the process that is adopted by the organizations for dealing with the unexpected events and disruptive situations which may threaten stakeholder’s interest and organizational goals. This research is based on evaluating the factor which affect and hinder the organizations strategies for crisis management. The analysis in the research is conducted in the context of private sector  is selected for critical evaluation (Bundy et al., 2017). The research topic is significant for organisation as they are facing financial and other crisis due to Covid-19 pandemic situation.

Covid-19 cancelled the fashion shows booking, ramp walks, fashion events etc that are organised by organisation because of which financial crisis and employees turnover problems are faced by organisation (Christensen et al., 2016). In the similar context, Organisations is now taking effective actions for crisis management but there are some factors which affect the strategy and its effectiveness for the organisation. The research conducts critical analysis on factors that affect private sector organisation while managing crisis that are causes to them in this pandemic situation.

1.3 Question

What are the factors and situations that affect and create negative impact on organisational planning which they take for crisis management?

1.4 Aim

Research aim is “to analyse the factors which affect the crisis management planning and strategies that in private sector organisation”.

1.5 Objectives

  1. Is to analyse the initiatives that are taken by the private sector organisations for crisis management
  2. Is to analyse the situations or factors that are affecting the effectiveness of crisis management which are taken by organisation
  3. Is to determine the strategies that organisation can adopt and apply for reducing the negative impact of factors on crisis management

2. Literature review

Crisis management strategies

Crisis management in the perspective of organisation is important and plays vital role through which organisation can handle the uncertain events impact on the business. Liu et al., (2017) stated that currently many organisations are dealing with financial crisis due to Covid-19 pandemic situation. The organisations are taking many initiates and adopt strategies to overcome the crisis and its negative impact. Team building and enhancement of collaboration working is the major action or step that every organisation takes so that they can face crisis and its impact on the business goals. It is important for the organisation to understand the reasons behind crisis so that effective actions can be taken. As per Bundy et al., (2017), equal delegation of the activities among the team members is important so that time and situation can be managed during crisis situation.

Refresh goals is another strategy that is also used by the organisations for pushing team members towards new and re-created goals. The leader’s plays important role in the crisis management as they modify strategies by which obstacles of business can be resolved. Transparency among the virtual team members is important by which decisions can be taken by prior approval of the team members. Involvement and engagement of all the employees in the crisis management strategy selection helps to resolve the misunderstanding and miscommunication issues. Coombs and Laufer, (2018) claimed that financial safety with proper insurance actions is also taken by the organisations by which they can arrange funds to resolve the crisis in a systematic manner. Implementation of the financial system stability is important through which the financial crisis can be resolved with proper funds planning.

Factors affecting effectiveness of crisis management

Crisis management strategies are adopted by the organisation but there are certain factors which affect the effectiveness of crisis management strategy. Lack of resources availability or resources scarcity is one of the major factors that negatively influence the actions which are taken against the crisis management. Brandebo et al., (2020) stated that due to limited resources availability in the organisation may causes issues for leaders and manager to continue the processing of crisis management because this limitation restrict the functions of organisation. Apart from this, miscommunication and lack of commitment from the employee’s side can also hinder the performance of the organisation regarding crisis management. The employee’s commitment towards business goals is important but due to their commitment lacking which negatively affects the effectiveness of crisis management.

Butcher (2018) claimed that lack of managerial control over the activities may also hinder the effectiveness which is expected from the crisis management initiative. It is important for the organisation to enhance the management roles and responsibilities to so that certain pre-steps can be taken to resolve the issues. There are some situations where managers and leaders failed to maintain coordination with the team regarding planning and execution which causes consequences in the crisis management processing. According to Al Thani and Obeidat (2020), sometimes availability of the funds is also limited because of which financial planning gets failed in the organisation and that affect overall management system regarding financial crisis management.

Strategies to reduce negative impact on crisis management effectiveness

Strategies and actions needs to be used by the organisation for reducing the negative impact on the crisis management functions so that further issues can be resolved. The organisation must plan resources properly by prioritising the resources within the specified time. Li and Wei (2016) stated that organising activities within the duration supports the organisation to avoid the outcome delay issue or affect during the proper crisis management. Excellent communication needs to be developed among the team members by arranging the activities as per team member’s abilities and efficiency. Managers and leaders of organisation need to become more responsible by taking project and planning ownership so that better managerial actions can be taken.

Improve leadership styles and coordination with the team members helps to improve the participation level of the team members. Gajda (2017) claimed that leaders can use democratic leadership style rather than autocratic leadership style so that team members can be involved in the crisis management process. This action can also improve the commitment level of the employees and that increased efficiency level from the employees can enhance the productivity level of the business. It is more important for the organisations to create emergency funds account which can be used by them in the financial crisis situation. The pre-actions taken by the organisation with the support of the leaders and managers is one of the supportive factors that mainly reduce the negative impact from the strategic planning that is planned by the organisation.

Relevancy of literature review

The points that are covered in the literature review are supportive factors which help to understand factors which affect the strategies of the organisation related to crisis management. The articles and books that are already published by another author have reviewed in the literature review section through which accurate and reliable information about the selected topic is collected. This part cover high relevancy for getting the reliable information in this research as it developed the overall understanding and its further improvement planning for the organisation.




Al Thani and Obeidat, (2020)

The Impact of Strategic Leadership on Crisis Management


Bundy, Pfarrer, Short, and Coombs, (2017)

Crises and crisis management: Integration, interpretation, and research development


Coombs and Laufer, (2018)

Global crisis management–current research and future directions


Brandebo, (2020)

Destructive leadership in crisis management


Li and Wei, (2016)

How to save brand after crises?


Liu, Shankar and Yun, (2017)

Crisis management strategies and the long-term effects of product recalls on firm value


Gajda, (2017)

Innovations in crisis management



3. Research methodology

2.1 Approaches

Research approaches such as- deductive and inductive are chosen by researcher of this research project so that further proper direction for research can be set. Deductive approach focuses on research questions and hypothesis part so that proper answers over the asked questions can be received. Inductive approach focuses on theoretical aspects of topic by which quality of information is collected by the researcher (Kumar, 2019). The current research is based on evaluating the factors which affect the crisis management policies of organisation so it is important for researcher to conduct research on organisation only by using deductive approach. This approach supports to get the answer against the asked question in the research so that effective outcome can be generated.

2.2 Methods

Research techniques are related to survey done for interview purpose, observation, discussions and for general analysis. The techniques selection basically depends on topic of research and observation. The research techniques can be qualitative approach or quantitative approach. The quantitative approach is often done in numerical format. The tools such as questionnaires and schedules are used to make the analyzing of data. Questionnaire survey being done on the employees of private sector organisation by asking them questions on crisis management. Their opinion about how they feel and their satisfaction level regarding the policies made by the management team. The survey provides information regarding the statistical and numerical format on the key factors that affects the crisis management (Leavy, 2017).

2.3 Data collection

Data collection method is one of the types of data collecting which is required to collect the data on the key factors that affects the crisis management. There are two methods used for collecting the data that is primary method and secondary method. This method will help in providing and collecting different level of data based on research topic. The secondary method provides qualitative details on factors affecting crisis management by critically examining articles, books, newspaper and journals. Primary data provides fresh handed information regarding key factors that affects the crisis management. The primary data is one which is fresh and not used before for any project (Schmitt, 2018).

2.4 Sampling

The research selects quantitative method with the collection of primary data from questionnaire survey so selection of proper sample size is required. There are different sampling techniques which researcher needs to select including- random technique, systematic technique, clustered technique and convenience technique. The selection of respondents is based on research outcome requirement so that biased selection can be neglected (Snyder, 2019). The research is conduct to understand the factors which affect the whole planning of organisation during its crisis management so sample size is also selected from the organisation only through which realistic information must be gathered. Managerial level of 80 employees is selected as the sample size by the researcher with the application of systematic technique. 

2.5 Data analysis

Different approaches which are applicable in survey of questionnaire and schedules makes valid and accurate outcome on the key factors that affects the crisis management of organisation. The sampling approach is opting for selecting sample size for surveying. The statistical diagrams such as Pie charts, bar diagrams and histograms are being in used for collecting and gathering information from the respondents. The respondents’ answers are noted and analyzed through various diagrams. The respondents are being informed earlier for approval through the online form of concern which will avoid biasness in the management (Gaus , 2017).

2.6 Ethical consideration

Some of the ethics in the researcher including taking prior approval or concern of the respondents by circulating ethical form is required so that misleading or breach of contract can be avoided. Data protection is the most important factor that helps to avoid data theft and other data misuse related activities (Ryen, 2016). It is important for the researcher to secure the database system where all the confidential information about the research is kept.

2.7 Expected sources of information

The sources are used to collect the information such as- books, articles, journals and unused primary method by conducting questionnaire survey are the expected sources that researcher needs to use in this research. These sources are used and reviewed by the researcher to get reliable data about the topic in this research (Snyder,).

4. Research plan

Activities of research

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10

Week 11

Select project title and aims and objectives












Draft proposal












Submission of the proposal












Literature review
























Conduct data analysis












Findings of the research












Conclusion and recommendation












Submission of the dissertation













5. Potential outcome

The analysis and findings of the research has provided reliable outcome that helps to overcome the factors which may hinder the effectiveness of crisis management. As per the literature review, some of the valuable information about the topic is collected by which potential outcome is generated related to improvement that organisation can adopt. It is important for managerial level of employees to take active participate in the strategies that organisation has taken to minimize the negative impact of crisis (Bundy et al., 2017).

6. References

Books and Journals

Al Thani, F.B.H. and Obeidat, A.M., (2020). The Impact of Strategic Leadership on Crisis Management. International Journal of Asian Social Science10(6), pp.307-326.

Andrade, S.R., Schmitt, M.D., Storck, B.C., Piccoli, T. and Ruoff, A.B., (2018). Documentary analysis in nursing theses: data collection techniques and research methods. Cogitare Enferm23(1), p.e53598.

Brandebo, M.F., (2020). Destructive leadership in crisis management. Leadership & Organization Development Journal.

Bundy, J., Pfarrer, M.D., Short, C.E. and Coombs, W.T., (2017). Crises and crisis management: Integration, interpretation, and research development. Journal of Management43(6), pp.1661-1692.

Bundy, J., Pfarrer, M.D., Short, C.E. and Coombs, W.T., (2017). Crises and crisis management: Integration, interpretation, and research development. Journal of Management43(6), pp.1661-1692.

Butcher, B.W., (2018). Leadership and Crisis Management. Rapid Response System: A Practical Guide, 19.

Christensen, T., Lægreid, P. and Rykkja, L.H., (2016). Organizing for crisis management: Building governance capacity and legitimacy. Public Administration Review76(6), pp.887-897.

Coombs, W.T. and Laufer, D., (2018). Global crisis management–current research and future directions. Journal of International Management, 24(3), pp.199-203.

Gajda, W., (2017). Innovations in crisis management.

Gaus, N., (2017). Selecting research approaches and research designs: A reflective essay. Qualitative Research Journal.

Kumar, R., (2019). Research methodology: A step-by-step guide for beginners. Sage Publications Limited.

Leavy, P., (2017). Research design: Quantitative, qualitative, mixed methods, arts-based, and community-based participatory research approaches. Guilford Publications.

Li, M. and Wei, H., (2016). How to save brand after crises? A literature review on brand crisis management. American Journal of Industrial and Business Management, 6(2), pp.89-96.

Liu, Y., Shankar, V. and Yun, W., (2017). Crisis management strategies and the long-term effects of product recalls on firm value. Journal of Marketing81(5), pp.30-48.

Ryen, A., (2016). Research ethics and qualitative research. Qualitative research, 3, pp.31-48.

Snyder, H., (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, pp.333-339.





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