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Crisis management

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127-507: An organizational crisis is described as a rare, high-impact event that jeopardizes the organization's survival. It is marked by uncertainty regarding the cause, effects, and solutions, along with the need for rapid decision-making. Crisis management is the process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders . The study of crisis management originated with large-scale industrial and environmental disasters in

254-489: A quake , tremor , or temblor  – is the shaking of the Earth 's surface resulting from a sudden release of energy in the lithosphere that creates seismic waves . Earthquakes can range in intensity , from those so weak they cannot be felt, to those violent enough to propel objects and people into the air, damage critical infrastructure, and wreak destruction across entire cities. The seismic activity of an area

381-729: A tsunami . Earthquakes can trigger landslides . Earthquakes' occurrence is influenced by tectonic movements along faults, including normal, reverse (thrust), and strike-slip faults, with energy release and rupture dynamics governed by the elastic-rebound theory . Efforts to manage earthquake risks involve prediction, forecasting, and preparedness, including seismic retrofitting and earthquake engineering to design structures that withstand shaking. The cultural impact of earthquakes spans myths, religious beliefs, and modern media, reflecting their profound influence on human societies. Similar seismic phenomena, known as marsquakes and moonquakes , have been observed on other celestial bodies, indicating

508-450: A business or an organization are called a crisis-management plan. A British Standard BS11200:2014 provides a useful foundation for understanding terminology and frameworks relating to crisis, in this document the focus is on the corporate exposure to risks in particular to the black swan events that result in significant strategic threats to organizations. Currently there is work on-going to develop an International standard. Crisis management

635-399: A certain task can be fulfilled through a system of coordinated division of labor . Economic approaches to organizations also take the division of labor as a starting point. The division of labor allows for (economies of) specialization . Increasing specialization necessitates coordination. From an economic point of view, markets and organizations are alternative coordination mechanisms for

762-480: A collective actor?). By coordinated and planned cooperation of the elements, the organization is able to solve tasks that lie beyond the abilities of the single element. The price paid by the elements is the limitation of the degrees of freedom of the elements. Advantages of organizations are enhancement (more of the same), addition (combination of different features), and extension. Disadvantages can be inertness (through coordination) and loss of interaction . Among

889-463: A correct vote (however correctness is defined). The problem is that if the average member is subsequently worse than a roll of dice, the committee's decisions grow worse, not better; therefore, staffing is crucial. Parliamentary procedure, such as Robert's Rules of Order , helps prevent committees from engaging in lengthy discussions without reaching decisions. This organizational structure promotes internal competition . Inefficient components of

1016-411: A crisis hits, organizations must be able to carry on with their business in the midst of the crisis while simultaneously planning for how they will recover from the damage the crisis caused. Crisis handlers not only engage in continuity planning (determining the people, financial, and technology resources needed to keep the organization running), but will also actively pursue organizational resilience. In

1143-487: A crisis in a timely fashion makes for a challenge in businesses. There must be open and consistent communication throughout the hierarchy to contribute to a successful crisis-communication process. The related terms emergency management and business continuity management focus respectively on the prompt but short lived "first aid" type of response (e.g. putting the fire out) and the longer-term recovery and restoration phases (e.g. moving operations to another site). Crisis

1270-482: A crisis of confidence for those who manage vital systems. Following a simulation exercise, a thorough and systematic debriefing must be conducted as a key component of any crisis simulation. The purpose of this is to create a link and draw lessons from the reality of the simulated representation and the reality of the real world. The whole process relating to business continuity planning should be periodically reviewed to identify any number of changes that may invalidate

1397-932: A crisis of malevolence when opponents or miscreant individuals use criminal means or other extreme tactics for the purpose of expressing hostility or anger toward, or seeking gain from, a company, country, or economic system, perhaps with the aim of destabilizing or destroying it. Sample crises include product tampering, kidnapping, malicious rumors, terrorism, cybercrime and espionage. Example: Chicago Tylenol murders Crises occur when management takes actions it knows will harm or place stakeholders at risk for harm without adequate precautions. Lerbinger specified three different types of crises of organizational misdeeds: crises of skewed management values, crises of deception, and crises of management misconduct. Crises of skewed management values are caused when managers favor short-term economic gain and neglect broader social values and stakeholders other than investors. This state of lopsided values

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1524-412: A cyber crisis management plan, a broader, carefully considered, integrated and validated plan can be developed to meet an organization's unique demands before the crisis strikes." Preparing contingency plans in advance, as part of a crisis-management plan, is the first step to ensuring an organization is appropriately prepared for a crisis. Crisis-management teams can rehearse a crisis plan by developing

1651-571: A depth of less than 70 km (43 mi) are classified as "shallow-focus" earthquakes, while those with a focal depth between 70 and 300 km (43 and 186 mi) are commonly termed "mid-focus" or "intermediate-depth" earthquakes. In subduction zones, where older and colder oceanic crust descends beneath another tectonic plate, deep-focus earthquakes may occur at much greater depths (ranging from 300 to 700 km (190 to 430 mi)). These seismically active areas of subduction are known as Wadati–Benioff zones . Deep-focus earthquakes occur at

1778-488: A depth where the subducted lithosphere should no longer be brittle, due to the high temperature and pressure. A possible mechanism for the generation of deep-focus earthquakes is faulting caused by olivine undergoing a phase transition into a spinel structure. Earthquakes often occur in volcanic regions and are caused there, both by tectonic faults and the movement of magma in volcanoes . Such earthquakes can serve as an early warning of volcanic eruptions, as during

1905-475: A few exceptions to this: Supershear earthquake ruptures are known to have propagated at speeds greater than the S wave velocity. These have so far all been observed during large strike-slip events. The unusually wide zone of damage caused by the 2001 Kunlun earthquake has been attributed to the effects of the sonic boom developed in such earthquakes. Slow earthquake ruptures travel at unusually low velocities. A particularly dangerous form of slow earthquake

2032-476: A group of peers who decide as a group, perhaps by voting. The difference between a jury and a committee is that the members of the committee are usually assigned to perform or lead further actions after the group comes to a decision, whereas members of a jury come to a decision. In common law countries, legal juries render decisions of guilt, liability, and quantify damages; juries are also used in athletic contests, book awards, and similar activities. Sometimes

2159-400: A list of contingency plans and to be always on alert. Organizations and individuals should always be prepared with a rapid response plan to emergencies which would require analysis, drills and exercises. The credibility and reputation of organizations is heavily influenced by the perception of their responses during crisis situations. The organization and communication involved in responding to

2286-408: A major portion of his waking hours working for organizations. His need to identify with a community that provides security, protection, maintenance, and a feeling of belonging continues unchanged from prehistoric times. This need is met by the informal organization and its emergent, or unofficial, leaders. Leaders emerge from within the structure of the informal organization. Their personal qualities,

2413-399: A manager may be confronted by an emergent leader who can challenge his role in the organization and reduce it to that of a figurehead. However, only the authority of position has the backing of formal sanctions. It follows that whoever wields personal influence and power can legitimize this only by gaining a formal position in the hierarchy, with commensurate authority. An organization that

2540-427: A narrow version of institutions or represent a cluster of institutions; the two are distinct in the sense that organizations contain internal institutions (that govern interactions between the members of the organizations). The study of organizations includes a focus on optimising organizational structure . According to management science , most human organizations fall roughly into four types: These consist of

2667-412: A negative impact on the organization's reputation. This can also refer to the efforts to inform employees or the public of a potential hazard which could have a catastrophic impact. There are 3 essential steps that an organization can take to prepare for and withstand a communications crisis: 1) Define your philosophy; 2) Assess your vulnerabilities; 3) Develop a protocol. Crisis management strategy (CMS)

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2794-418: A number of disciplines, such as sociology , economics , political science , psychology , management , and organizational communication . The broader analysis of organizations is commonly referred to as organizational structure , organizational studies , organizational behavior , or organization analysis. A number of different perspectives exist, some of which are compatible: Sociology can be defined as

2921-612: A particular location in the Earth is the average rate of seismic energy release per unit volume. One of the most devastating earthquakes in recorded history was the 1556 Shaanxi earthquake , which occurred on 23 January 1556 in Shaanxi , China. More than 830,000 people died. Most houses in the area were yaodongs —dwellings carved out of loess hillsides—and many victims were killed when these structures collapsed. The 1976 Tangshan earthquake , which killed between 240,000 and 655,000 people,

3048-827: A particular purpose. The word in English is derived from the Spanish organisation, which itself is derived from the medieval Latin organizationem and its root organum was borrowed whole from the Latin word organon , which means tool or instrument, musical instrument, and organ . There are a variety of legal types of organizations, including corporations , governments , non-governmental organizations , political organizations , international organizations , religious organizations , armed forces , charities , not-for-profit corporations , partnerships , cooperatives , and educational institutions , etc. A hybrid organization

3175-493: A result, and in the event of an actual crisis, the team members will act more quickly and effectively. A note of caution when planning training scenarios, all too often simulations can lack ingenuity, an appropriate level of realism and as a consequence potentially lose their training value. This part can be improved by employing external exercise designers who are not part of the organisational culture and are able to test an organizations response to crisis, in order to bring about

3302-465: A selection committee functions like a jury. In the Middle Ages, juries in continental Europe were used to determine the law according to consensus among local notables. Committees are often the most reliable way to make decisions. Condorcet's jury theorem proved that if the average member votes better than a roll of dice, then adding more members increases the number of majorities that can come to

3429-444: A serious situation, especially from the moment it first occurs to the point that recovery procedures start. Crisis management is a situation-based management system that includes clear roles and responsibilities and processes related organizational requirements company-wide. The response shall include action in the following areas: crisis prevention, crisis assessment, crisis handling, and crisis termination. The aim of crisis management

3556-423: A simulated scenario to use as a drill. The plan should clearly stipulate that the only people to speak to publicly about the crisis are the designated persons, such as the company spokesperson or crisis team members. Ideally it should be one spokesperson who can be available on call at any time. Cooperation with media is crucial in crisis situation, assure that all questions are answered on time and information on what

3683-765: A single rupture) are approximately 1,000 km (620 mi). Examples are the earthquakes in Alaska (1957) , Chile (1960) , and Sumatra (2004) , all in subduction zones. The longest earthquake ruptures on strike-slip faults, like the San Andreas Fault ( 1857 , 1906 ), the North Anatolian Fault in Turkey ( 1939 ), and the Denali Fault in Alaska ( 2002 ), are about half to one third as long as

3810-422: A situation that causes a significant disruption to their business, especially one that stimulates extensive media coverage. Public scrutiny can result in a negative financial, political, legal and government impact. Crisis management planning deals with providing the best response to a crisis. With the growing threat of cyber attacks, "traditional information technology incident response plans often fail to consider

3937-422: A tendency to backfire and will greatly exacerbate the situation. The contingency plan should contain information and guidance that will help decision makers to consider not only the short-term consequences, but the long-term effects of every decision. When a crisis will undoubtedly cause a significant disruption to an organization, a business continuity plan can help minimize the disruption. First, one must identify

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4064-668: Is "functional" and assures that each type of expert in the organization is well-trained, and measured by a boss who is a super-expert in the same field. The other direction is "executive" and tries to get projects completed using the experts. Projects might be organized by products, regions, customer types, or some other schemes. As an example, a company might have an individual with overall responsibility for products X and Y, and another individual with overall responsibility for engineering, quality control, etc. Therefore, subordinates responsible for quality control of project X will have two reporting lines. The United States aerospace industries were

4191-427: Is a body that operates in both the public sector and the private sector simultaneously, fulfilling public duties and developing commercial market activities. A voluntary association is an organization consisting of volunteers. Such organizations may be able to operate without legal formalities, depending on jurisdiction, including informal clubs or coordinating bodies with a goal in mind which they may express in

4318-473: Is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment. As most organizations operate through a mix of formal and informal mechanisms, organization science scholars have paid attention to the type of interplay between formal and informal organizations. On the one hand, some have argued that formal and informal organizations operate as substitutes as one type of organization would decrease

4445-525: Is a theory that earthquakes can recur in a regular pattern. Earthquake clustering has been observed, for example, in Parkfield, California where a long-term research study is being conducted around the Parkfield earthquake cluster. An aftershock is an earthquake that occurs after a previous earthquake, the mainshock. Rapid changes of stress between rocks, and the stress from the original earthquake are

4572-769: Is also a facet of risk management , although it is probably untrue to say that crisis management represents a failure of risk management, since it will never be possible to totally mitigate the chances of catastrophes' occurring. During the crisis management process, it is important to identify types of crises in that different crises necessitate the use of different crisis management strategies. Potential crises are enormous, but crises can be clustered. Lerbinger categorized eight types of crises Natural disaster related crises, typically natural disasters, are such environmental phenomena as earthquakes , volcanic eruptions , tornadoes and hurricanes , floods , landslides , tsunamis , storms, and droughts that threaten life, property, and

4699-410: Is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms

4826-410: Is called the hypocenter or focus, while the ground level directly above it is the epicenter . Earthquakes are primarily caused by geological faults , but also by volcanic activity , landslides, and other seismic events. The frequency, type, and size of earthquakes in an area define its seismic activity, reflecting the average rate of seismic energy release. Significant historical earthquakes include

4953-473: Is converted into heat generated by friction. Therefore, earthquakes lower the Earth's available elastic potential energy and raise its temperature, though these changes are negligible compared to the conductive and convective flow of heat out from the Earth's deep interior. There are three main types of fault, all of which may cause an interplate earthquake : normal, reverse (thrust), and strike-slip. Normal and reverse faulting are examples of dip-slip, where

5080-433: Is corporate development strategy designed primarily to prevent crisis for follow-up company advancement. Thus, CMS is synthesis of strategic management. It includes projection of the future based on ongoing monitoring of business internal and external environment, as well as selection and implementation of crisis prevention strategy and operating management. This is including current status control based on ongoing monitoring of

5207-400: Is divided into 754 Flinn–Engdahl regions (F-E regions), which are based on political and geographical boundaries as well as seismic activity. More active zones are divided into smaller F-E regions whereas less active zones belong to larger F-E regions. Standard reporting of earthquakes includes its magnitude , date and time of occurrence, geographic coordinates of its epicenter , depth of

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5334-495: Is established as a means for achieving defined objectives has been referred to as a formal organization . Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs , and tasks make up this work structure . Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement

5461-462: Is not needed, the event could more accurately be described as a failure or incident. In contrast to risk management , which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats before, during, and after they have occurred. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with

5588-419: Is occasionally referred to as incident management , although several industry specialists such as Peter Power argue that the term "crisis management" is more accurate. A crises mindset requires the ability to think of the worst-case scenario while simultaneously suggesting numerous solutions. Trial and error is an accepted discipline, as the first line of defense might not work. It is necessary to maintain

5715-545: Is probably a statistical fluctuation rather than a systematic trend. More detailed statistics on the size and frequency of earthquakes is available from the United States Geological Survey. A recent increase in the number of major earthquakes has been noted, which could be explained by a cyclical pattern of periods of intense tectonic activity, interspersed with longer periods of low intensity. However, accurate recordings of earthquakes only began in

5842-423: Is proportional to the area of the fault that ruptures and the stress drop. Therefore, the longer the length and the wider the width of the faulted area, the larger the resulting magnitude. The most important parameter controlling the maximum earthquake magnitude on a fault, however, is not the maximum available length, but the available width because the latter varies by a factor of 20. Along converging plate margins,

5969-658: Is rooted in the classical business creed that focuses on the interests of stockholders and tends to disregard the interests of its other stakeholders such as customers, employees, and the community Crisis of deception occur when management conceals or misrepresents information about itself and its products in its dealing with consumers and others. Some crises are caused not only by skewed values and deception but deliberate amorality and illegality. Crises occur when an employee or former employee commits violence against other employees on organizational grounds. False information about an organization or its products creates crisis hurting

6096-531: Is subject to human manipulation. That said, a decent amount of research demonstrates that the remedy or response strategy after a technological crisis (such as a data breach) can contribute significantly to an organization's overall reputation. There is also a cross-sectional difference among firms – firms with higher reputations tend to be less impacted by the blame on the technological crisis. In contrast, people do not hold anyone responsible for natural disaster. When an accident creates significant environmental damage,

6223-410: Is the tsunami earthquake , observed where the relatively low felt intensities, caused by the slow propagation speed of some great earthquakes, fail to alert the population of the neighboring coast, as in the 1896 Sanriku earthquake . During an earthquake, high temperatures can develop at the fault plane, increasing pore pressure and consequently vaporization of the groundwater already contained within

6350-467: Is the frequency, type, and size of earthquakes experienced over a particular time. The seismicity at a particular location in the Earth is the average rate of seismic energy release per unit volume. In its most general sense, the word earthquake is used to describe any seismic event that generates seismic waves. Earthquakes can occur naturally or be induced by human activities, such as mining , fracking , and nuclear tests . The initial point of rupture

6477-520: Is to be well prepared for crisis, ensure a rapid and adequate response to the crisis, maintaining clear lines of reporting and communication in the event of crisis and agreeing rules for crisis termination. The techniques of crisis management include a number of consequent steps from the understanding of the influence of the crisis on the corporation to preventing, alleviating, and overcoming the different types of crisis. Crisis management consists of different aspects including: Crisis-management methods of

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6604-425: Is usually framed by formal membership and form (institutional rules). Sociology distinguishes the term organization into planned formal and unplanned informal (i.e. spontaneously formed) organizations. Sociology analyses organizations in the first line from an institutional perspective. In this sense, the organization is an enduring arrangement of elements. These elements and their actions are determined by rules so that

6731-509: The 1556 Shaanxi earthquake in China, with over 830,000 fatalities, and the 1960 Valdivia earthquake in Chile, the largest ever recorded at 9.5 magnitude. Earthquakes result in various effects, such as ground shaking and soil liquefaction , leading to significant damage and loss of life. When the epicenter of a large earthquake is located offshore, the seabed may be displaced sufficiently to cause

6858-400: The 1980 eruption of Mount St. Helens . Earthquake swarms can serve as markers for the location of the flowing magma throughout the volcanoes. These swarms can be recorded by seismometers and tiltmeters (a device that measures ground slope) and used as sensors to predict imminent or upcoming eruptions. A tectonic earthquake begins as an area of initial slip on the fault surface that forms

6985-587: The 2004 Indian Ocean earthquake is simultaneously one of the deadliest earthquakes in history. Earthquakes that caused the greatest loss of life, while powerful, were deadly because of their proximity to either heavily populated areas or the ocean, where earthquakes often create tsunamis that can devastate communities thousands of kilometers away. Regions most at risk for great loss of life include those where earthquakes are relatively rare but powerful, and poor regions with lax, unenforced, or nonexistent seismic building codes. Tectonic earthquakes occur anywhere on

7112-499: The Himalayan Mountains . With the rapid growth of mega-cities such as Mexico City, Tokyo, and Tehran in areas of high seismic risk , some seismologists are warning that a single earthquake may claim the lives of up to three million people. While most earthquakes are caused by the movement of the Earth's tectonic plates , human activity can also produce earthquakes. Activities both above ground and below may change

7239-426: The brittle-ductile transition zone and upwards by the ground surface. The mechanics of this process are poorly understood because it is difficult either to recreate such rapid movements in a laboratory or to record seismic waves close to a nucleation zone due to strong ground motion. In most cases, the rupture speed approaches, but does not exceed, the shear wave (S wave) velocity of the surrounding rock. There are

7366-413: The least principal stress. Strike-slip faulting is intermediate between the other two types described above. This difference in stress regime in the three faulting environments can contribute to differences in stress drop during faulting, which contributes to differences in the radiated energy, regardless of fault dimensions. For every unit increase in magnitude, there is a roughly thirty-fold increase in

7493-401: The 1980s. It is considered to be the most important process in public relations . Three elements are common to a crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time. Venette argues that "crisis is a process of transformation where the old system can no longer be maintained". Therefore, the fourth defining quality is the need for change. If change

7620-553: The 20th century and has been inferred for older anomalous clusters of large earthquakes in the Middle East. It is estimated that around 500,000 earthquakes occur each year, detectable with current instrumentation. About 100,000 of these can be felt. Minor earthquakes occur very frequently around the world in places like California and Alaska in the U.S., as well as in El Salvador, Mexico, Guatemala, Chile, Peru, Indonesia,

7747-433: The 21st century. Seismic waves travel through the Earth's interior and can be recorded by seismometers at great distances. The surface-wave magnitude was developed in the 1950s as a means to measure remote earthquakes and to improve the accuracy for larger events. The moment magnitude scale not only measures the amplitude of the shock but also takes into account the seismic moment (total rupture area, average slip of

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7874-399: The Earth's core was located in 1913 by Beno Gutenberg . S waves and later arriving surface waves do most of the damage compared to P waves. P waves squeeze and expand the material in the same direction they are traveling, whereas S waves shake the ground up and down and back and forth. Earthquakes are not only categorized by their magnitude but also by the place where they occur. The world

8001-484: The Earth. Also, the depth of the hypocenter can be computed roughly. P wave speed S waves speed As a consequence, the first waves of a distant earthquake arrive at an observatory via the Earth's mantle. On average, the kilometer distance to the earthquake is the number of seconds between the P- and S wave times 8. Slight deviations are caused by inhomogeneities of subsurface structure. By such analysis of seismograms,

8128-573: The Philippines, Iran, Pakistan, the Azores in Portugal, Turkey, New Zealand, Greece, Italy, India, Nepal, and Japan. Larger earthquakes occur less frequently, the relationship being exponential ; for example, roughly ten times as many earthquakes larger than magnitude 4 occur than earthquakes larger than magnitude 5. In the (low seismicity) United Kingdom, for example, it has been calculated that

8255-495: The United States in anticipation of Hurricane Katrina . Usually the most vivid stage, the goal of crisis containment and damage control is to limit the reputational, financial, safety, and other threats to firm survival. Crisis handlers work diligently during this stage to bring the crisis to an end as quickly as possible to limit the negative publicity to the organization, and move into the business recovery phase. When

8382-453: The advantages of using the other one. For instance, if parties trust each other the use of a formal contract is unnecessary or even detrimental to the relationship. On the other hand, other scholars have suggested that formal and informal organizations can complement each other. For instance, formal mechanisms of control can pave the way for the development of relational norms. Earthquake An earthquake  – also called

8509-463: The average recurrences are: an earthquake of 3.7–4.6 every year, an earthquake of 4.7–5.5 every 10 years, and an earthquake of 5.6 or larger every 100 years. This is an example of the Gutenberg–Richter law . The number of seismic stations has increased from about 350 in 1931 to many thousands today. As a result, many more earthquakes are reported than in the past, but this is because of

8636-418: The basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position. In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal organization expresses the personal objectives and goals of

8763-404: The brittle crust. Thus, earthquakes with magnitudes much larger than 8 are not possible. In addition, there exists a hierarchy of stress levels in the three fault types. Thrust faults are generated by the highest, strike-slip by intermediate, and normal faults by the lowest stress levels. This can easily be understood by considering the direction of the greatest principal stress, the direction of

8890-566: The cause of other earthquakes in the past century. A Columbia University paper suggested that the 8.0 magnitude 2008 Sichuan earthquake was induced by loading from the Zipingpu Dam , though the link has not been conclusively proved. The instrumental scales used to describe the size of an earthquake began with the Richter scale in the 1930s. It is a relatively simple measurement of an event's amplitude, and its use has become minimal in

9017-558: The concept of the Crisis Arc. Erika Hayes James, an organizational psychologist at the University of Virginia's Darden Graduate School of Business, identifies two primary types of organizational crisis. James defines organizational crisis as "any emotionally charged situation that, once it becomes public, invites negative stakeholder reaction and thereby has the potential to threaten the financial well-being, reputation, or survival of

9144-563: The crisis and its subsequent effect on the institution in question. James categorises five phases of crisis that require specific crisis leadership competencies. Each phase contains an obstacle that a leader must overcome to improve the structure and operations of an organization. James's case study on crisis in the financial services sector, for example, explores why crisis events erode public trust in leadership. James's research demonstrates how leadership competencies of integrity, positive intent, capability, mutual respect, and transparency impact

9271-523: The crisis is categorized as megadamage . Samples include software failures, industrial accidents, and oil spills. Confrontation crisis occur when discontented individuals and/or groups fight businesses, government, and various interest groups to win acceptance of their demands and expectations. The common type of confrontation crisis is boycotts, and other types are picketing, sit-ins, ultimatums to those in authority, blockade or occupation of buildings, and resisting or disobeying police. An organization faces

9398-502: The critical functions and processes that are necessary to keep the organization running. This part of the planning should be conducted in the earliest stages, and is part of a business impact analysis phase that will signpost "How much does the organization stand to lose?” (Osborne, 2007). Practical Business Continuity Management. Business Management: Top tips for effective, real-world Business Continuity Management). Each critical function and or/process must have its own contingency plan in

9525-445: The cross-organizational activities that need to be performed to remain resilient when a major cyber crisis occurs, resulting in a delayed, chaotic, unstructured, and fragmented response. A cyber crisis management plan is designed to reduce these risks through careful pre-planning; therefore, developing a cyber crisis management plan requires organizations to take a holistic approach to cyber crisis planning. By proactively acting to build

9652-490: The current plan. Providing information to an organization in a time of crisis is critical to effective crisis management. Structural-functional systems theory addresses the intricacies of information networks and levels of command making up organizational communication. The structural-functional theory identifies information flow in organizations as "networks" made up of members ". Information in organizations flow in patterns called networks. Another theory that can be applied to

9779-404: The demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain cooperation from others by means of persuasion or control over rewards. Power

9906-529: The dip angle of the rupture plane is very shallow, typically about 10 degrees. Thus, the width of the plane within the top brittle crust of the Earth can reach 50–100 km (31–62 mi) (such as in Japan, 2011 , or in Alaska, 1964 ), making the most powerful earthquakes possible. The majority of tectonic earthquakes originate in the Ring of Fire at depths not exceeding tens of kilometers. Earthquakes occurring at

10033-678: The displacement along the fault is in the direction of dip and where movement on them involves a vertical component. Many earthquakes are caused by movement on faults that have components of both dip-slip and strike-slip; this is known as oblique slip. The topmost, brittle part of the Earth's crust, and the cool slabs of the tectonic plates that are descending into the hot mantle, are the only parts of our planet that can store elastic energy and release it in fault ruptures. Rocks hotter than about 300 °C (572 °F) flow in response to stress; they do not rupture in earthquakes. The maximum observed lengths of ruptures and mapped faults (which may break in

10160-439: The distance from the earthquake and the underlying rock or soil makeup. The first scale for measuring earthquake magnitudes was developed by Charles Francis Richter in 1935. Subsequent scales ( seismic magnitude scales ) have retained a key feature, where each unit represents a ten-fold difference in the amplitude of the ground shaking and a 32-fold difference in energy. Subsequent scales are also adjusted to have approximately

10287-554: The early 1900s, so it is too early to categorically state that this is the case. Most of the world's earthquakes (90%, and 81% of the largest) take place in the 40,000-kilometre-long (25,000 mi), horseshoe-shaped zone called the circum-Pacific seismic belt, known as the Pacific Ring of Fire , which for the most part bounds the Pacific plate . Massive earthquakes tend to occur along other plate boundaries too, such as along

10414-403: The earth where there is sufficient stored elastic strain energy to drive fracture propagation along a fault plane . The sides of a fault move past each other smoothly and aseismically only if there are no irregularities or asperities along the fault surface that increases the frictional resistance. Most fault surfaces do have such asperities, which leads to a form of stick-slip behavior . Once

10541-426: The earthquakes strike a fault in clusters, each triggered by the shaking or stress redistribution of the previous earthquakes. Similar to aftershocks but on adjacent segments of fault, these storms occur over the course of years, with some of the later earthquakes as damaging as the early ones. Such a pattern was observed in the sequence of about a dozen earthquakes that struck the North Anatolian Fault in Turkey in

10668-504: The energy released. For instance, an earthquake of magnitude 6.0 releases approximately 32 times more energy than a 5.0 magnitude earthquake and a 7.0 magnitude earthquake releases 1,000 times more energy than a 5.0 magnitude earthquake. An 8.6-magnitude earthquake releases the same amount of energy as 10,000 atomic bombs of the size used in World War II . This is so because the energy released in an earthquake, and thus its magnitude,

10795-432: The environment itself. Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Some technological crises occur when human error causes disruptions (Human breakdowns). People tend to assign blame for a technological disaster because technology

10922-400: The event that one of the functions/processes ceases or fails, then the business/organization is more resilient, which in itself provides a mechanism to lessen the possibility of having to invoke recovery plans (Osborne, 2007). Testing these contingency plans by rehearsing the required actions in a simulation will allow those involved to become more acutely aware of the possibility of a crisis. As

11049-413: The execution of transactions . An organization is defined by the elements that are part of it (who belongs to the organization and who does not?), its communication (which elements communicate and how do they communicate?), its autonomy (which changes are executed autonomously by the organization or its elements?), and its rules of action compared to outside events (what causes an organization to act as

11176-458: The fact that no single earthquake in the sequence is the main shock, so none has a notably higher magnitude than another. An example of an earthquake swarm is the 2004 activity at Yellowstone National Park . In August 2012, a swarm of earthquakes shook Southern California 's Imperial Valley , showing the most recorded activity in the area since the 1970s. Sometimes a series of earthquakes occur in what has been called an earthquake storm , where

11303-462: The fault has locked, continued relative motion between the plates leads to increasing stress and, therefore, stored strain energy in the volume around the fault surface. This continues until the stress has risen sufficiently to break through the asperity, suddenly allowing sliding over the locked portion of the fault, releasing the stored energy . This energy is released as a combination of radiated elastic strain seismic waves , frictional heating of

11430-411: The fault plane that holds it in place, and fluids can exert a lubricating effect. As thermal overpressurization may provide positive feedback between slip and strength fall at the fault plane, a common opinion is that it may enhance the faulting process instability. After the mainshock, the pressure gradient between the fault plane and the neighboring rock causes a fluid flow that increases pore pressure in

11557-418: The fault surface, and cracking of the rock, thus causing an earthquake. This process of gradual build-up of strain and stress punctuated by occasional sudden earthquake failure is referred to as the elastic-rebound theory . It is estimated that only 10 percent or less of an earthquake's total energy is radiated as seismic energy. Most of the earthquake's energy is used to power the earthquake fracture growth or

11684-541: The fault, and rigidity of the rock). The Japan Meteorological Agency seismic intensity scale , the Medvedev–Sponheuer–Karnik scale , and the Mercalli intensity scale are based on the observed effects and are related to the intensity of shaking. The shaking of the earth is a common phenomenon that has been experienced by humans from the earliest of times. Before the development of strong-motion accelerometers,

11811-448: The firm or some portion thereof". Sudden crises are circumstances that occur without warning and beyond an institution's control. Consequently, sudden crises are most often situations for which the institution and its leadership are not blamed. Smoldering crises differ from sudden crises in that they begin as minor internal issues that, due to manager's negligence, develop to crisis status. These are situations when leaders are blamed for

11938-414: The first to officially use this organizational structure after it emerged in the early 1960s. A hierarchy exemplifies an arrangement with a leader who leads other individual members of the organization. This arrangement is often associated with the basis that there are enough to imagine a real pyramid, if there are not enough stone blocks to hold up the higher ones, gravity would irrevocably bring down

12065-417: The focus. Once the rupture has been initiated, it begins to propagate away from the focus, spreading out along the fault surface. Lateral propagation will continue until either the rupture reaches a barrier, such as the end of a fault segment, or a region on the fault where there is insufficient stress to allow continued rupture. For larger earthquakes, the depth extent of rupture will be constrained downwards by

12192-406: The force that "pushes" the rock mass during the faulting. In the case of normal faults, the rock mass is pushed down in a vertical direction, thus the pushing force ( greatest principal stress) equals the weight of the rock mass itself. In the case of thrusting, the rock mass "escapes" in the direction of the least principal stress, namely upward, lifting the rock mass, and thus, the overburden equals

12319-449: The form of a manifesto , mission statement , or implicitly through the organization's actions. Organizations may also operate secretly or illegally in the case of secret societies , criminal organizations , and resistance movements . And in some cases may have obstacles from other organizations (e.g.: MLK's organization) . What makes an organization recognized by the government is either filling out incorporation or recognition in

12446-629: The form of either societal pressure (e.g.: Advocacy group ), causing concerns (e.g.: Resistance movement ) or being considered the spokesperson of a group of people subject to negotiation (e.g.: the Polisario Front being recognized as the sole representative of the Sahrawi people and forming a partially recognized state .) Compare the concept of social groups , which may include non-organizations. Organizations and institutions can be synonymous, but Jack Knight writes that organizations are

12573-516: The greatest organizational challenge is 'speaking truth to power' to predict truly worst-case scenarios. Organizations such as the Red Cross 's primary mission is to prepare for and prevent the escalation of crisis events. Walmart has been described as an emergency-relief standard bearer after having witnessed the incredibly speedy and well-coordinated effort to get supplies to the Gulf Coast of

12700-443: The individual membership . Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that generally characterize human life – the spontaneous emergence of groups and organizations as ends in themselves. In prehistoric times, man was preoccupied with his personal security, maintenance, protection, and survival. Now man spends

12827-576: The innovation, (3) another individual or other unit that does not yet have knowledge of the innovation, and (4) a communication channel connecting the two units. A communication channel is the means by which messages get from one individual to another. There has been debate about the role of apologies in crisis management, and some argue that apology opens an organization up for possible legal consequences. "However some evidence indicates that compensation and sympathy, two less expensive strategies, are as effective as an apology in shaping people's perceptions of

12954-410: The intensity of a seismic event was estimated based on the observed effects. Magnitude and intensity are not directly related and calculated using different methods. The magnitude of an earthquake is a single value that describes the size of the earthquake at its source. Intensity is the measure of shaking at different locations around the earthquake. Intensity values vary from place to place, depending on

13081-519: The internal and external environment, as well as crisis-coping strategy selection and implementation. Successfully managing a crisis requires an understanding of how to handle a crisis – beginning with before they occur. Alan Hilburg speaks about a crisis arc. The arc consists of crisis avoidance, crisis mitigation and crisis recovery. Gonzalez-Herrero and Pratt found the different phases of Crisis Management. There are 3 phases in any crisis management as shown below No corporation looks forward to facing

13208-476: The lengths along subducting plate margins, and those along normal faults are even shorter. Normal faults occur mainly in areas where the crust is being extended such as a divergent boundary . Earthquakes associated with normal faults are generally less than magnitude 7. Maximum magnitudes along many normal faults are even more limited because many of them are located along spreading centers, as in Iceland, where

13335-402: The main causes of these aftershocks, along with the crust around the ruptured fault plane as it adjusts to the effects of the mainshock. An aftershock is in the same region as the main shock but always of a smaller magnitude, however, they can still be powerful enough to cause even more damage to buildings that were already previously damaged from the mainshock. If an aftershock is larger than

13462-414: The mainshock, the aftershock is redesignated as the mainshock and the original main shock is redesignated as a foreshock . Aftershocks are formed as the crust around the displaced fault plane adjusts to the effects of the mainshock. Earthquake swarms are sequences of earthquakes striking in a specific area within a short period. They are different from earthquakes followed by a series of aftershocks by

13589-488: The monumental structure. So one can imagine that if the leader does not have the support of his subordinates, the entire structure will collapse. Hierarchies were satirized in The Peter Principle (1969), a book that introduced hierarchiology and the saying that "in a hierarchy, every employee tends to rise to his level of incompetence." In the social sciences, organizations are the object of analysis for

13716-736: The organization starve, while effective ones get more work. Everybody is paid for what they actually do, and so runs a tiny business that has to show a profit , or they are fired. Companies that utilize this organization type reflect a rather one-sided view of what goes on in ecology . It is also the case that a natural ecosystem has a natural border – ecoregions do not, in general, compete with one another in any way, but are very autonomous. The pharmaceutical company GlaxoSmithKline talks about functioning as this type of organization in this external article from The Guardian . By:Bastian Batac De Leon. This organizational type assigns each worker two bosses in two different hierarchies. One hierarchy

13843-504: The organization taking responsibility for the crisis because these strategies focus on the victims' needs. The sympathy response expresses concern for victims while compensation offers victims something to offset the suffering." Organization An organization or organisation ( Commonwealth English ; see spelling differences ), is an entity —such as a company , or corporation or an institution ( formal organization ), or an association —comprising one or more people and having

13970-427: The organization's reputation. Sample is linking the organization to radical groups or stories that their products are contaminated. These occur when the crisis was triggered by people, for example global financial crises, transportation accidents, massive destruction. Alan Hilburg, a pioneer in crisis management, defines organizational crises as categorized as either acute crises or chronic crises. Hilburg also created

14097-530: The rock. In the coseismic phase, such an increase can significantly affect slip evolution and speed, in the post-seismic phase it can control the Aftershock sequence because, after the main event, pore pressure increase slowly propagates into the surrounding fracture network. From the point of view of the Mohr-Coulomb strength theory , an increase in fluid pressure reduces the normal stress acting on

14224-437: The rupture of geological faults but also by other events such as volcanic activity, landslides, mine blasts, fracking and nuclear tests . An earthquake's point of initial rupture is called its hypocenter or focus. The epicenter is the point at ground level directly above the hypocenter. The seismic activity of an area is the frequency, type, and size of earthquakes experienced over a particular time. The seismicity at

14351-522: The same numeric value within the limits of the scale. Although the mass media commonly reports earthquake magnitudes as "Richter magnitude" or "Richter scale", standard practice by most seismological authorities is to express an earthquake's strength on the moment magnitude scale, which is based on the actual energy released by an earthquake, the static seismic moment. Every earthquake produces different types of seismic waves, which travel through rock with different velocities: Propagation velocity of

14478-410: The science of the institutions of modernity ; specific institutions serve a function , akin to the individual organs of a coherent body. In the social and political sciences in general, an "organization" may be more loosely understood as the planned, coordinated, and purposeful action of human beings working through collective action to reach a common goal or construct a tangible product . This action

14605-464: The seismic waves through solid rock ranges from approx. 3 km/s (1.9 mi/s) up to 13 km/s (8.1 mi/s), depending on the density and elasticity of the medium. In the Earth's interior, the shock- or P waves travel much faster than the S waves (approx. relation 1.7:1). The differences in travel time from the epicenter to the observatory are a measure of the distance and can be used to image both sources of earthquakes and structures within

14732-487: The sharing of information is diffusion of innovation theory. Developed by Everett Rogers , the theory describes how innovation is disseminated and communicated through certain channels over a period of time. Diffusion of innovation in communication occurs when an individual communicates a new idea to one or several others. At its most elementary form, the process involves: (1) an innovation, (2) an individual or other unit of adoption that has knowledge of or experience with using

14859-422: The stresses and strains on the crust, including building reservoirs, extracting resources such as coal or oil, and injecting fluids underground for waste disposal or fracking . Most of these earthquakes have small magnitudes. The 5.7 magnitude 2011 Oklahoma earthquake is thought to have been caused by disposing wastewater from oil production into injection wells , and studies point to the state's oil industry as

14986-490: The surrounding fracture networks; such an increase may trigger new faulting processes by reactivating adjacent faults, giving rise to aftershocks. Analogously, artificial pore pressure increase, by fluid injection in Earth's crust, may induce seismicity . Tides may trigger some seismicity . Most earthquakes form part of a sequence, related to each other in terms of location and time. Most earthquake clusters consist of small tremors that cause little to no damage, but there

15113-423: The theories that are or have been influential are: A leader in a formal, hierarchical organization , is appointed to a managerial position and has the right to command and enforce obedience by virtue of the authority of his position. However, he must possess adequate personal attributes to match his authority, because authority is only potentially available to him. In the absence of sufficient personal competence,

15240-443: The thickness of the brittle layer is only about six kilometres (3.7 mi). Reverse faults occur in areas where the crust is being shortened such as at a convergent boundary . Reverse faults, particularly those along convergent boundaries, are associated with the most powerful earthquakes (called megathrust earthquakes ) including almost all of those of magnitude 8 or more. Megathrust earthquakes are responsible for about 90% of

15367-461: The total seismic moment released worldwide. Strike-slip faults are steep structures where the two sides of the fault slip horizontally past each other; transform boundaries are a particular type of strike-slip fault. Strike-slip faults, particularly continental transforms , can produce major earthquakes up to about magnitude 8. Strike-slip faults tend to be oriented near vertically, resulting in an approximate width of 10 km (6.2 mi) within

15494-536: The trust-building process. Signal detection is the stage in a crisis in which leaders should, but do not always, sense early warning signals (red flags) that suggest the possibility of a crisis. The detection stages of a crisis include: It is during this stage that crisis handlers begin preparing for or averting the crisis that had been foreshadowed in the signal detection stage. Hilburg has demonstrated that using an impact/probability model allows organizations to fairly accurately predict crisis scenarios. He's recognized

15621-505: The universality of such events beyond Earth. An earthquake is the shaking of the surface of Earth resulting from a sudden release of energy in the lithosphere that creates seismic waves . Earthquakes may also be referred to as quakes , tremors , or temblors . The word tremor is also used for non-earthquake seismic rumbling . In its most general sense, an earthquake is any seismic event—whether natural or caused by humans—that generates seismic waves. Earthquakes are caused mostly by

15748-436: The vast improvement in instrumentation, rather than an increase in the number of earthquakes. The United States Geological Survey (USGS) estimates that, since 1900, there have been an average of 18 major earthquakes (magnitude 7.0–7.9) and one great earthquake (magnitude 8.0 or greater) per year, and that this average has been relatively stable. In recent years, the number of major earthquakes per year has decreased, though this

15875-474: The wake of a crisis, organizational decision makers adopt a learning orientation and use prior experience to develop new routines and behaviors that ultimately change the way the organization operates. The best leaders recognize this and are purposeful and skillful in finding the learning opportunities inherent in every crisis situation. The effort taken by an organization to communicate with the public and stakeholders when an unexpected event occurs that could have

16002-402: Was done to resolve the situation is provided. The first hours after a crisis breaks are the most crucial, so working with speed and efficiency is important, and the plan should indicate how quickly each function should be performed. When preparing to offer a statement externally as well as internally, information should be accurate and transparent. Providing incorrect or manipulated information has

16129-641: Was the deadliest of the 20th century. The 1960 Chilean earthquake is the largest earthquake that has been measured on a seismograph, reaching 9.5 magnitude on 22 May 1960. Its epicenter was near Cañete, Chile. The energy released was approximately twice that of the next most powerful earthquake, the Good Friday earthquake (27 March 1964), which was centered in Prince William Sound , Alaska. The ten largest recorded earthquakes have all been megathrust earthquakes ; however, of these ten, only

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