Managerial competencies in tackling an acute company crisis

Abstract

Abstract:The crisis manager's goal is not only to stop the crisis development in the company, but, as a further step, to achieve the fundamental turnover in its development leading to a successful solution. crisis management requires completely different managerial competencies from those used in "standard" periods as time pressure is a negative factor aggravating the situation and in addition to that, resources are reduced calling for stimulation. A crisis manager should motivate both himself and the staff and it is he who is expected to be creative even under pressure.Key words: company crisis, crisis management, turnover, managerial competencies Abstrakt: cílem krizového manažera je nejen zastavit krizový vývoj podniku, ale následně dosáhnout zásadní obrat v jeho vývoji a podnik vyvést z krize. Krizové řízení vyžaduje zcela odlišné manažerské kompetence, než "běžné" období, protože v krizi působí negativně časový tlak a zdroje jsou redukované a musí se mobilizovat. Krizový manažer musí motivovat nejen sebe, ale i ostatní pracovníky, zvládat stres a současně být přitom kreativním.Klíčová slova: krize podniku, krizové řízení, turnover, manažerské kompetence Supported by the Ministry of Education, Youth and Sports of the czech republic (grant no. MSM 6046070904).

Surviving Covid-19 and Beyond: A Conceptual Framework for Smes in Crisis

“…The impact of COVID-19 has put these SMEs into survival mode, (Korankye, 2020), supporting the argument that the longer the duration of the crisis, the higher is the threat of going out of business or being taken over (Bartik et al, 2020). The structural transformation necessitated by this extraordinary situation requires extraordinary management styles, radical measures, procedures, and decisions completely different from those employed under regular circumstances (Zuzák & Rymešová, 2008). In this context, strategic management methods offer decision-makers "a discipline for thinking rigorously and systematically about uncertainty" (Grant, 2016), thus the more turbulent the environment, the more important it becomes to use these tools.…”

“…Struggling to make urgent decisions while the company's existence is under threat is the very definition of crisis (Zuzák & Rymešová, 2008). It is important to realize that, whatever the reason, most crises happen with little or no warning, are difficult to foresee and have a devastating impact on small businesses and big corporations (Thorgren & Williams, 2020).…”

“…In a study which set out to determine relevant managerial characteristics from crisis standpoint, Zuzák and Rymešová (2008) found that key competencies of the strongest performers are efficient resource mobilization, self-motivation and swift, creative and pragmatic decision making (Svoboda, 2009). It is also important to have flexibility in management and communication styles (Zuzák & Rymešová, 2008).…”

“…In a study which set out to determine relevant managerial characteristics from crisis standpoint, Zuzák and Rymešová (2008) found that key competencies of the strongest performers are efficient resource mobilization, self-motivation and swift, creative and pragmatic decision making (Svoboda, 2009). It is also important to have flexibility in management and communication styles (Zuzák & Rymešová, 2008). In another study conducted by Rani et al (2019), winning qualities during crisis were shown to be "resourcefulness" (cash flow, investment, networking, assets, and adaptability) and optimism (preparedness to make decisions, take action, and sense of humor).…”

“…Lastly, Zuzák and Rymešová (2008) delineate three pillars of crisis management strategy as: strong leadership, acquisition of necessary cash, and fundamental transformation of the company.…”