A crisis is a situation in which the usual solutions are no longer valid. Every crisis is an unstable situation involving sudden and decisive changes. The Chinese curse those they are angry with by saying “may God leave you in an uncertain situation”. From the 1990s to the present day, crises stemming from the Gulf War in 1991, the current account deficit in 1994 and 1998, the earthquake in 1999 and the collapse of the banking system in 2001 have caused serious disruption to business life in Turkey and disrupted the distribution of wealth to society.
Turkey has experienced uncertainty five times in the last seventeen years. Therefore, in the last quarter of 2008, we have been inoculated, in a sense, to the uncertainty caused by external causes and which has engulfed us. Any crisis is the result of mismanagement and is essentially a correction. This is why our banking system, unlike its counterparts in the US and Europe, entered the recent crisis in a strong position.
At the institutional level, the need to find quick and urgent solutions creates a time pressure. Such crises affect people and decisions in terms of emotional aspects rather than material consequences. Therefore, a crisis is an emotional process. During this process, changes occur in organizations depending on the competence and personal maturity of managers.
The primary need of the organization is “resilience”
In the current economic crisis, the characteristic that organizations need most is resilience. By resilience, I mean the ability of an institution to withstand external shocks and tolerate uncertainty for a long time.
Organizations that can withstand crises and prolonged uncertainty are characterized by
- High levels of employee engagementExistence of a vision that employees believe in
- A common value system shared by all employees
- Existence of a management climate that supports innovation and creativity for the organization
- Since times of crisis are characterized by a preponderance of personal concerns and worries, employees’ energy should not be wasted on personal concerns and non-work matters.
The presence of the above-mentioned characteristics in an organization not only ensures resilience and endurance, but also creates a great internal solidarity that will enable the organization to achieve its goals. For an organization to meet the challenges of the external world, it must first and foremost be strong internally.
Resilience is built on values
Values are rules for living and a compass for decisions. Values are deeply held beliefs about the path to follow to achieve a particular outcome and are reflected in the world through behavior.
For an organization to be strong internally means that it has a culture based on values. In such an organization, under an effective leader, there are managers who are committed to him/her and to the mission of the organization, and employees who are dedicated to their work and to the organization.
Shared values build trust. Thus, it is possible to create a community that forms a common denominator. Values create cohesion and unity, and thus it is possible to achieve common goals quickly and effectively. The strength of an organization is measured by the commitment of the individuals working in that organization to the common values they share. If there are no shared values, people are indifferent to each other and to the organization and are indifferent to each other’s and the organization’s problems.
Dealing with problems of their own making
In an organization that is strong internally, employees do not devote their energy to resolving human relations tensions or dealing with problems of their own making. This is because these behaviors are rooted in habits that have developed over time in the organizational culture and that limit and inhibit the potential of the organization. These include bureaucracy, infighting, blaming, short-term focus, avoiding responsibility, protecting departmental interests, gossip, etc. This is called cultural entropy.
This is a period when every organization should carefully evaluate its economic situation. This requires cutting non-essential costs and seeking new sources of income that are compatible with the core business. But these are not the only things to do.
The most objectionable practice in times of crisis is to lay people off in order to reduce expenditures. This wastes the intellectual capital of the organization and the investment in organizational commitment and human resources policies up to this point.
The consequence of such measures is that employees become demotivated and spend their time gossiping, worrying, and speaking angrily against the organization and their managers. However, in times of increased threat from the outside world, the expectation is that employees will put their energy and creativity to work at the highest level.
When the economy is down and things are not going well, both customers and employees worry about their future. The way to reduce these concerns is to be open. It is necessary to inform employees about the state of the organization and the possible effects of developments in the economy without creating despair and pessimism. Because nature does not accept a vacuum. An Indian proverb says, “the devil fills the vacuum.” In corporate life, in the absence of information, the feelings of the most pessimistic and anxious are reflected as “reality”. For this reason, communication must be maintained in order to calm employees’ anxieties.
Prof. Dr. Acar Baltaş
Ref: https://www.acarbaltas.com/degerlerle-kriz-yonetimi/
