MANAGING CRISIS SITUATIONS FOR PERFORMANCE ENHANCEMENT: A SCIENTIFIC INQUIRY

Abstract

Management activity, whether we are talking about a company or a state, brings with it challenges and situations that are not always the desired ones. Challenges can ultimately add value to a company's business, but they can also lead to its exit from the market in which it operates. We call these crisis situations; although they are not desirable, it is imperative to have a plan in place to respond to and manage them, according to the possible risks the company may face. Although crisis situations bring with them their negativity, there are cases where companies can turn them into performance drivers with the right and appropriate response. According to PwC's Global Crisis and Resilience Survey 2023, 96% of responding companies indicated that they have experienced at least one crisis situation. As we will see in a sub-chapter of this paper, even large, reputable companies can fail to manage a crisis properly. In this article, we will look at the right way to handle a crisis situation, the importance of critical communication and the possible negative effects of mismanaging alarming situations.