Crisis Management “Crisis management is the management of operations during the actual crisis (in the midst of the event) and the management of the business before, during, and after the crisis. Most crises require management from the outside-in and the inside-out by the management team” (Nykiel, 2005). A crisis whether internal and or external can occur at any moment in a hospitality industry. For example “internal crisis in the hospitality industry include a breakout of a food borne illness in a restaurant, infestation of rodents in a hotel and an outbreak of the flu on a cruise line” (L.
Pullium, personal communication, September 11, 2008). Some examples of external crisis are “terrorism, environmental disasters such as hurricanes, tsunamis, tornadoes, and floods. Successful managers of any organization should have a crisis management plan. An effective crisis management plan can assist in saving lives if managed properly. According to Nykiel (2005), there are seven (7) parts to managing a crisis, such as: 1- Know the mission and approach to the crisis. 2- Review the history of crisis and look at the potential for other crisis to take place. – Perform a walk through of a potential crisis. Create a “what if” situation. 4- Follow initial crisis strategy procedures. 5- Identify all persons affected by the crisis. 6- Incorporate the organizations’ media policy. 7- Evaluate the crisis management plan. Baderman Island developed a crisis management plan in an effort to “protect the safety and well-being of the guest, employees, and visitors”. Baderman Island’s crisis guidelines are to “provide a process that facilitates organized decision-making at unique times that might otherwise be quite chaotic”.
In addition, Baderman Island’s crisis management plan will “minimize injury or loss of life, focus decision-making on critical issues in a potentially stressful environment, provide a flexible response process to a variety of emergencies, protect guest, employees, Baderman Island property and protect public image and confidence” (Olsen, n. d. ) in Baderman Island. [pic] In addition to the crisis management plan is the crisis management team. The teams normally consist of employees of the organization and each team member has a specific responsibility.
For example, Deon Mango, Director of Engineering responsibility is to contact the media spokesperson Mr. Darrian Green. Team member Jerry Watermelon’s responsibility is to contact Crisis Care. Each team member always has a two-way radio on hand with a supply of batteries, cell phone, and emergency medical kits. Hospitality facilities must develop their own crisis plans and emergency guidelines. A “cut and paste” or “template” approach using other facilities emergency plans will typically not lead to full ownership and successful crisis planning within one’s facility.
In fact, it could lead to increased liability. Hospitality Facilities prepared for crisis and emergency situations: 1. Train staff on security and emergency planning issues. 2. Assess and refine hotel security and emergency preparedness plans. 3. Exercise emergency/crisis plans. Hospitality Facilities can enhance crisis preparedness by taking practical steps: 1. Train staff on early warning signs of violence and hotel crisis management. 2. Form crisis teams and guidelines for manmade and natural crises. . Assess and enhance hotel communications capabilities. 4. Create and test evacuation, lockdown, and other safety drills. 5. Coordinate emergency planning with police, fire, and other public safety agencies. These, along with a number of other balanced and rational strategies, may reduce risks to prevent a crisis and in the worst-case scenario, to prepare security and community officials for effectively managing those emergencies which cannot be prevented.
Baderman Island’s Crisis Management Plan Baderman Island’s Crisis Team Leaders: |Katt Channing |(702) 555-1212 | |Olivia John |(702) 555-1313 | |John Travolta |(702) 555-1414 | |Mike Apples |(702) 555-1515 |Jerry Watermelon |(702) 555-1616 | |Deon Mango |(702) 555-1717 | |Darrian Green |(702)555-2222 | |(Media Spokesperson) | |
I. Emergency Services Phone Numbers |Emergency Police/Fire Ambulance————————————911 | | | Non-Emergency Numbers Baderman Island Police |(702) 555-2500 | |Baderman Island Fire |(702) 555-2600 | |Mainland Police |(702) 333-2700 | |Mainland Fire |(702) 333-3900 | |Beach Police |(702) 555-5200 | |Crisis Care (24 hr) |(702) 333-1111 (702) 333-1112 | II. Food and Shelter Baderman Island Food and Shelter |(702) 222-7800 | |Salvation Army |(702) 222-7900 | |Mainland Community Crisis |(702) 222-8900 | |American Red Cross |(702) 222-9900 | III. Hospitals and Medical Care |St. Rose Hospital |(702) 333-4900 | |Mainland Hospital |(702) 333-3900 | |Emergency Medical Center |(702) 333-2900 | (Olsen, n. d. ) IV. Evacuation Codes [pic] Strategies and Mitigating Risk “There are many types of foreseeable risks associated with the hospitality industry. Both internal and external risks pose hazardous conditions to employees as well as guest.
World events such as the attacks on the World Trade Centers on September 11th 2001 and natural disasters such as the recent catastrophic tsunamis and hurricanes all provide valuable lessons to the hospitality industry. Internal risk are such as accidents, health risks, infectious disease outbreaks, sanitation problems, fires, and any number of natural disaster incidents that may occur” (University of Phoenix Week, 2004, Week Four Overview). Risk and uncertainty are part of the everyday operating environment for all organizations. Sometimes the risks may be sufficient to generate a crisis. If the crisis is left unattended, it can become a disaster.
The person whom is often put in charge with the responsibility of recovering the supporting services that will enable the business to start functioning again is the facility manager, whose primary function is property management procedures. Baderman Island can ensure that the island as a whole is properly prepared for a crisis. Strategies can be put in place to mitigate risk, such as setting up a formal safety organization, including safety culture norms and beliefs about the importance of safety. Another strategy would be to retain monitoring services by experienced staff that is trained and educated to create an environment of constant awareness and reliability. Providing feedback on previous incidents is a good strategy to implement. This provides tips that may have been missed and Baderman can make sure that this feedback is incorporated into a risk-mitigating plan.
The result should be that those unpredictable everyday minor crises do not escalate to become major disasters (Davies, 1998). For example, facilities management can assist Baderman Island by mitigating the risks posed by the Islands potential liabilities by using the process of risk management. Which includes the four functions of management (planning, organizing controlling, monitoring) and maintaining the facility in a condition that is reasonable and responsive to the safety concerns of guest and having an effective contingency plan such as in Figure 1. Figure1. Contingency Plan 1 Mitigating Risk of Liabilities Function: Mitigating Risk of Liabilities Criticality: Safety and Security of Guest and Employees
Distribution List: Jerry China, Facility Manager, ext: 551; Mary Asia, Director of Human Resources, ext: 552; Andy Germany, Director of Engineering, ext: 553; Upper Management; (702) 222-3333 According to the University of Phoenix Week Two Overview (2004), maintenance of the physical asset is an ongoing process and can be broken down into four main categories: reactive/emergency, planned/preventive, corrective, and predictive maintenance. Reactive or emergency maintenance consists of maintenance or engineering related work that must be performed [sic] immediately to protect life, health, property, or other physical assets (such as refrigerated food).
Planned or preventive maintenance consists of scheduled inspections, service, and repairs that maximize the level of services at the property, prolong equipment life, and reduce equipment breakdowns and service interruptions. Corrective maintenance includes the repair and restoration of items after problems are identified [sic] but before major breakdowns occur. Predictive maintenance, a form of preventive maintenance, seeks to minimize the cost of conducting preventive maintenance through data analysis, risk assessment, and industry benchmarking to determine the most cost effective frequencies at which inspections, service, and repair should be conducted [sic]. pic] Facilities management and the crisis management team should go over the plans on a routine basis to make sure the plan is effective because the “risks associated with improperly implementing a crisis management plan are if there is a natural disaster, then many lives can be lost. If there is no contingency plan then employees and guest could incur a multitude of accidents and the facility and company will ensure lawsuits” (University of Phoenix, 2004, Week four Overview). If a fire breaks out in a hotel and the hotel does not have a crisis management plan and a contingency plan guest and employees could all be consumed by fire and or smoke, which more than likely will result in a loss of lives. For example, the Monte Carlo Resort and Casino located on the strip in Las Vegas, Nevada had a recent fire inside the hotel.
This was a life threatening experience for all involved however, the design of the facilities manager made this a positive experience by installing a fire alarm and installing not one (1) but two (2) stairway exits located at the opposite end of the hallway. Facilities management play an important role for organizations in the hospitality industry from protecting lives to scheduled maintenance and repairs and as long as facilities managers’ continue this process and perceive plans for natural disasters, organization, in the industry will continue to move forward successfully. Conclusion Moray Enterprises accepted the proposal and selected Baderman Island Resort as the site for its annual conference.
Because the conference will be held during peak hurricane season, Moray Enterprises wants to review Baderman Island Resort’s crisis management plan concerning natural disasters. Moray Enterprises wants to ensure the safety of its employees and guests and before signing any contracts, the company has to be satisfied with the plan and have complete confidence that if anything happens, everyone will be safe from harm. After reviewing the plan, it is the hope of Baderman Island Resort and its management team that Moray Enterprises will discover that Baderman Island Resort is more than prepared and equipped to handle any crisis or emergency, no matter how big or small, very effectively. References Davies, Hilary. Walter, Megan.
Property Management Journal. 1998. volume 16. Issue 1. Retrieved September 19, 2008 from http://www. emeraldinsight. com/Insight/viewContentItem. do;jsessionid=38B7870BB8E31A24C0C7852DA574FA35? contentType=Article&hdAction=lnkpdf&contentId=845464 Human Resources. Crisis Management Plan. Lewis & Clark College. Retrieved September 19, 2008 from http://www. lclark. edu/dept/hrpolicy/crisis_manage. html Olsen, R. B. (n. d. ). Crisis Management Plan, Retrieved September 17, 2008, from http://files. waukeganschools. org/teachers/CrisisManagement. pdf Nykiel, R. A. (2005). Hospitality Management Strategies (1st ed. ). Pearson Education, Inc. University of Phoenix (2004).
Week one Overview, Retrieved July 18, 2008, from University of Phoenix, Week One eRsource. HM/474-Capstone Course Web site University of Phoenix (2004). Week four Overview, Retrieved September 17, 2008, from University of Phoenix, Week Four eRsource. HM/475-Capstone Course Web site [pic] ———————– Baderman’s Crisis Guidelines Decision-Making Minimize Injury and Loss of Life Protect Guest Protect Employees Protect Baderman Property Protect Baderman’s Public Image Flexible Response Code Green (All Clear) Code Blue (Danger in the Community) Code Yellow (Evacuate) Code Red (Danger) Physical Assets Reactive Emergency Planned Preventive Corrective Predictive Maintenance