native courses of action to be taken if an intended plan of action is unexpectedly disrupted or
rendered inappropriate.
organization uses in the event of a disaster or other unexpected calamity. Some elements of
crisis management may be orderly and systematic, whereas others may be more ad hoc and
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A classic example of widespread contingency planning occurred during the late 1990s
in anticipation of what was popularly known as the Y2K bug. Concerns about the impact
of technical glitches in computers stemming from their internal clocks’ changing from
1999 to 2000 resulted in contingency planning for most organizations. Many banks and
hospitals, for example, had extra staff available; some organizations created backup
computer systems; and some even stockpiled inventory in case they could not purchase
new products or materials.
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The devastating hurricanes—Katrina and Rita—that hit the Gulf Coast in 2005
dramatically underscored the importance of effective crisis management. For example,
inadequate and ineffective responses by the Federal Emergency Management Agency
(FEMA) illustrated to many people that organization’s weaknesses in coping with crisis
situations. On the other hand, some organizations responded much more effectively.
Walmart began ramping up its emergency preparedness on the same day Katrina was
upgraded from a tropical depression to a tropical storm. In the days before the storm
struck, Walmart stores in the region were supplied with powerful generators and large
supplies of dry ice so they could reopen as quickly as possible after the storm had passed.
In neighboring states, the firm also had scores of trucks standing by crammed with both
emergency-related inventory for its stores and emergency supplies it was prepared to
donate—bottled water, medical supplies, and so forth. And Walmart often beat FEMA
by several days in getting those supplies delivered.
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Seeing the consequences of poor crisis management after the terrorist attacks of
September 11, 2001, and the 2005 hurricanes, many firms today are actively working to
create new and better crisis management plans and procedures. For example, both
Dana
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Rules and regulations are standing plans describing how activities are to be carried out. This
workplace, for example, has posted a set of safety rules to be followed by all employees near the
time clock where they register their hours of work.
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