DIFFRENCE BETWEEN MODEL AND THEORY

A theory is  a generalized statement aimed at explaining a phenomenon. A model, on the other
hand, is a purposeful representation of reality. ... Another way to link the two and point out
differences is, a model is often used to describe an application of a theory for a particular case.
 Crisis management model
 Management crisis planning
 Contingency planning
 Business continuity planning
 Structural-functional systems theory
 Diffusion of innovation theory

What Is a Crisis Management Model?

A crisis management model is the conceptual framework for all aspects of preparing for,
preventing, coping with, and recovering from a crisis. By viewing events through a model, crisis
managers gain context and can better apply best practices.
A crisis is an unpredictable or low-probability event that can cause significant negative effects to
a business. Often, the causes, consequences, and solutions to a crisis are unclear, yet stakeholders
must act quickly.
Many approaches have been developed as part of a larger effort to build overall organizational
capacity and skill to anticipate, avoid, and mitigate crises. Therefore, most approaches emphasize
the importance of taking initiative, rather than being reactive.
This spectrum of skillfulness in crisis management can be broadly described as a crisis
management maturity model that ranges from reactive to proactive — or even pre-emptive
action.
Proactive vs. Reactive Crisis Management Approaches
Proactive Approach
The proactive approach includes planning for the future, taking into consideration the potential
problems that on occurrence may disturb the orders of processes in the system. It is about
recognizing the future threats and preventing them with requisite actions and planning so that
you don’t end up getting into bigger trouble.
Reactive Approach
The reactive approach manages the issues once they emerge or being encountered, without
appropriate arrangements on how to, what to, when to, and whom to report. Possessing a reactive
approach is not an adequate plan, preferably not a strategy. It resembles an issue that has
happened as of now and you have no other alternative than to manage it.
Characteristics of Organizations with Reactive Approach and Proactive Approach
Though it’s true that you cannot plan for every single issue in advance, planning for potential
problems will help you save time, costs, and efforts that you can invest for unexpected problem
occurrences. This implies that being proactive is a better way to win the race of quality
management.
However, it doesn’t imply that being proactive is a perfect way to deal with quality issues. We
must look at the common challenges that companies face for being proactive.

The different approaches along a crisis management maturity model, from most to least
advanced, are as follows: 
Pre-emptive Crisis Management: This approach seeks to prevent or resolve a crisis at its
earliest sign.
Proactive Crisis Management: In this approach, organizations take initiative early in the crisis
and seek to shape how events unfold.
Responsive Crisis Management: This occurs when there is little warning of a crisis. However,
thoughtful and quick analysis can lead to effective action that accounts for long and short-term
results.
Reactive Crisis Management: This is often a panic-driven or knee-jerk reaction. Emotions like
fear play a leading role, and objective thinking is largely absent from the crisis response. The
company faces crises defensively and, following the crisis, the business may experience
problems, high turnover of senior leaders, or even business failure. 
A similar model by Can Alpaslan and colleagues focuses on stakeholder involvement and views
the crisis management maturity continuum as follows:
Proactive Crisis Management: All stakeholders that could potentially be harmed should
participate in crisis preparation. In the response phase, the organization anticipates knock-on
effects and voluntarily discloses the most negative information before the media discovers it.
Accommodative Crisis Management: The organization accepts that a crisis is possible and
involves a broad set of stakeholders in preparation. In a crisis, the company accepts
responsibility, voluntarily meets the needs of the victims, and tells the truth.
Defensive Crisis Management: The business prepares only for crises with high expected costs
and involves stakeholders only if required by law. During a crisis, the organization resists
admitting full responsibility, but does admit some. The company only does what is mandated by
law.
Reactive Crisis Management: The organization denies the possibility of a crisis and any
negative consequences. In a crisis, the company denies all responsibility, closes off
communications, and hides the truth. Its stance is uncooperative.
Scenario-Based vs Capacity-Based Model
Until the mid-20th century, organizations primarily faced crises that they had seen before
(though of course they were still challenging). The most common threats included natural
disasters and labor problems, so companies typically planned for these and other familiar
scenarios. 
However, the increasing pace of business, advancements in technology, and increasing
globalization forced companies to more frequently confront novel and unpredicted crises, such as
workplace violence or global pandemics. In this newer context, scenario-based planning holds
limited value, since this kind of preparation hinges on facing a known hazard, which triggers a
set series of actions. 
Organizations fare better by developing their capacities to handle any kind of crisis, even ones
that are completely new. Companies can still detail response plans for common kinds of
calamities, like fires, but compared to the scenario-based model, a capacity-based model
emphasizes building capacities like communications, financial backup plans, and readiness for
remote work.

Crisis Management Model

Crisis refer to unplanned events which cause harm to the organization and lead to disturbances and
major unrest amongst the employees.

Crisis gives rise to a feeling of fear and threat in the individuals who eventually lose interest and trust in
the organization.

Crisis Management Model

Gonzalez-Herrero and Pratt proposed a Crisis Management Model which identified three different
stages of crisis management.

According to Gonzalez-Herrero and Pratt, crisis management includes following three stages:

1. Issue of Management /Diagnosis of Crisis

The first stage involves detecting the early indicators of crisis. It is for the leaders and managers
to sense the warning signals of a crisis and prepare the employees to face the same with courage
and determination. Superiors must review the performance of their subordinates from time to time
to know what they are up to.

The role of a manager is not just to sit in closed cabins and shout on his subordinates. He must
know what is happening around him. Monitoring the performance of the employee regularly
helps the managers to foresee crisis and warn the employees against the negative
consequences of the same. One should not ignore the alarming signals of crisis but take
necessary actions to prevent it. Take initiative on your own. Don’t wait for others.
 2. Planning/ Prevention
Once a crisis is being detected, crisis management team must immediately jump into action. Ask
the employees not to panic. Devise relevant strategies to avoid an emergency situation. Sit and
discuss with the related members to come out with a solution which would work best at the times
of crisis. It is essential to take quick decisions. One needs to be alert and most importantly
patient. Make sure your facts and figures are correct. Don’t rely on mere guess works and
assumptions. It will cost you later.

3. Crises (Refer to Responding a Crises)

4. Post Crises/ Adjusting to Changes
Employees must adjust well to new situations and changes for effective functioning of
organization in near future. It is important to analyze the causes which led to a crisis at the
workplace. Mistakes should not be repeated and new plans and processes must be incorporated
in the system.

Structural Functions Systems Theory

According to structural functions systems theory, communication plays a pivotal role in crisis
management. Correct flow of information across all hierarchies is essential. Transparency must be
maintained at all levels. Management must effectively communicate with employees and provide them the
necessary information at the times of crisis. Ignoring people does not help, instead makes situations
worse. Superiors must be in regular touch with subordinates. Leaders must take charge and ask the
employees to give their best.

Diffusion of innovation Theory

Diffusion of innovation theory proposed by Everett Rogers, supports the sharing of information during
emergency situations. As the name suggests during crisis each employee should think out of the box
and come out with something innovative to overcome tough times. One should be ready with an alternate
plan. Once an employee comes up with an innovative idea, he must not keep things to himself. Spread
the idea amongst all employees and departments. Effective communication is essential to pass on ideas
and information in its desired form.

Crisis Management Plan

Crisis refers to a sequence of unwanted events leading to major disturbances and uncertainty at the
workplace.

Crisis is an unexpected event which not only causes harm to the organization but also triggers a feeling of
fear and insecurity amongst the individuals.

Organizations must be prepared well to face inevitable threats and come out of tough times without much
difficulty. Individuals must immediately jump into action; the moment crisis is being detected at the
workplace.

What is a Crisis Management Plan ?

Individuals need to adopt a step by step approach during critical situations. Planning is essential. Getting
hyper does not solve any problem, instead makes the situation worse. It is a crime to take impulsive and
hasty decisions during crisis. It is essential to think rationally and devise strategies which would work best
during emergency situations. Complaining and cribbing lead you nowhere.

Crisis Management Plan refers to a detailed plan which describes the various actions which need
to be taken during critical situations or crisis.

Any plan prepared by superiors, members of crisis management team and related employees to help
organization overcome crisis in the best possible way is called crisis management plan.

Why Crisis Management Plan ?

 Crisis management plan helps the employees to adopt a focused approach during emergency
situations.
 Crisis management Plan elaborates the actions to be taken by the management as well as the
employees to save organization’s reputation and standing in the industry. It gives a detailed
overview of the roles and responsibilities of employees during crisis.
 Individuals representing the crisis management team formulate crisis management plan to
reduce the after effects of crisis at the workplace.
 Crisis Management Plan helps the managers and superiors to take quick and relevant actions
as per the situation.
 Crisis Management plan protects an organization from inevitable threats and also makes its
future secure.
 Such plans reduce instability and uncertainty amongst the employees and help them
concentrate on their work.

Characteristics of Crisis Management Plan

 Crisis Management Plan should be made in the presence of all executives. Every member of
crisis management team should have a say in the plan. It is important for each one to give his /
her valuable inputs and suggestions.
 Crisis Management Plan should take into account all identified problem areas and suggest a
possible solution for all of them to help the organization come out of crisis as soon as possible.
 Make sure the plans are realistic and solve the purpose of saving organization’s reputation and
name.

How to make a crisis management plan ?

 Identify the problem areas and various factors which led to crisis at the workplace.
 Discuss issues and areas of concern amongst yourselves on an open forum for everyone to
share their opinion.
 Make sure you have accurate information. Don’t depend on guess works and assumptions.
Double check your information before submitting the final plan.
 Crisis Management Plan should not only focus on ways to overcome crisis but also on making the
processes foolproof to avoid emergency situations in future.