1. Introduction
What is a crisis management? It is an unexpected crisis that happens on the company that will affect the trust and loyalty of the stakeholder. It can be extremely costly because it will affect the company reputation and brand. For example like financial failure from poor business management, workplace violence, fires, cybercrime, computer viruses, product tampering or union strikes and other external issue like damaged economy that causes from London bombings, terrorists attacks on 11 September and others. The SHRM 2005 report indicates that only 56% organizations created or revised their disaster preparedness plans but 45% did not after the terrorist attacked on 11 September. HR leader’s functions are to solve this problem by using a strategic role to contribute tangible deliverables through advance preparation, including safety and security initiatives, leadership development, talent management and solid communication plans.
2. Defining crisis management and HR role.
Crisis management is defined as organization preestablished activities and guidelines for preparing and responding to significant a sudden event that causes great suffering or destruction, for example like fires, earthquakes, severe storms, workplace violence, kidnappings, bomb threats, acts or terrorism and others. Crisis management is about developing an organization capability to react quickly when crisis happens. Through crisis management planning, organization can better prepare to handle unforeseen event that may cause serious level of damage. Usually HR has not been functioned to design to organize or oversee safety and security initiatives, but regardless of the organization size, HR has a strategic role and responsibility to ensure their organization aware of the human side of a crisis and plan ahead to help minimize its effects.
3. The business case
There have 4 main topics on business case. First is cost of