At one time or the other, organizations would witness crisis whether internal or external in which its impact could induce severe consequences or even disasters if wrong strategic moves are devised. The issue of how organizations can maintain good performance when faced with critical situations has largely remained unexplored. This study therefore examines the effect of crisis management strategy on organizational performance of Palestinian companies. Crisis management forms the bedrock for peaceful coexistence between employers and employees and even the society at large. Crisis is inevitable in any organization because it comes in varied forms and degrees. In carrying out this study a total of 140 respondents were randomly selected from a staff population. Two hypotheses were formulated to guide the study and the data collected were analyzed using partial correlation. The results revealed that management challenges to crisis management strategy are attributed to poor organizational performance and that crisis management strategy does not have any effect on organizational performance. Based on the findings of the study, recommendations were made that multinational corporations in Palestine should make funds available for crisis management on a continuous basis, and that management of organizations should be pro-active when it comes to issues of crisis management strategies. Therefore, the extent to which an organization is able to forge ahead in spite of this unavoidable constraint will depend much on the crisis management strategies on whom rests the arduous task of resolving crisis.

Crisis Management is the choosing of an organized process, that is reasonably cost effective, in order to lessen certain threats facing the organization or company. It is a process coupled with the principle of sustainability. It is a measuring process, and one used to evaluate threats, and develop a strategy to manage it. These strategies include moving the threats elsewhere, avoiding them, and decreasing their negative impact, and accepting some or all of its effects. It indicates two options one which can occur. Undoubtedly the cases whereby there is only one chance are the cases where there are no threats. They are occurrences and events threaten the realization of goals, and could have a negative impact on the continuation of the work, thus making the crisis management a real art undertaken with competence, professionalism and experience. Threats are the chance that a company could face unexpected and unplanned losses, or could make the anticipated revenues fluctuate.