Introduction

Crisis management is defined as how an organization deals with the emergence of a sudden situation. The Covid-19 pandemic was a sudden situation that led to changes in all business perspectives affecting the operations. Crisis management is characterized by three elements that include foresight which is the ability to predict a situation and make plans on how to handle business in such a situation. The second element is coping, which is the capability to prevent adverse effects once a problem occurs (ATILGAN, 2019). The final one is the recovery in which businesses have strategies that will help them recover from the adverse effects of the situation. Based on this perspective, the pandemic has adversely affected many companies, and hence there is a need to apply crisis management strategies. The pandemic has affected the worldwide economy, meaning that the business has suffered, and the ones with better crisis management approaches are the ones that have achieved quick recovery. There are four phases of crisis management, and they include mitigation or prevention of the risks, preparedness, response, and healing. Many businesses have suffered from funding withdrawals, supply chain disruptions, and the contraction of severe trade. The paper will discuss crisis management by businesses to ensure that recovery has been achieved and that quality services are offered to the customers (International Finance Corporation, 2021). Effective leadership can be identified as one of the major approaches that have contributed to successful crises management. This research paper will discuss crisis management and how new organizations have been formed during the age of Covid-19.

Leadership

The management process in crisis management has been used as the key to helping many organizations overcome the adverse effects of the pandemic. Leadership qualities like effective communication and decision-making and others help in crisis management. These qualities help businesses to mitigate the destructive and wide-scale impact of the Covid-19 pandemic. Effective crisis management calls for leadership qualities that promote growth due to improved adaptation approaches. Organizational leaders need to apply leadership styles based on the situation to successfully come out of a crisis (Gemma & Aaron, 2020). However, leadership cannot be used as the only approach to help in crisis management. In the process of making a better response to the pandemic, five behaviors need to be executed by leaders during this Covid-19 pandemic age.

One of these behaviors includes a network of teams that contribute to the successful management of the crisis. The virtual network of teams is significant in providing support by offering ideas that can be utilized to solve existing problems. These teams may include the response team, project management, and medical advisory team. The Covid-19 pandemic resulted in panic, especially when it led to the closure of business networks such as supply chains. Leaders need to display bounded optimism and calmness. When the leader shows these behaviors, it helps the employees be calm and motivated to support the business despite the effects of the pandemic (Gemma & Aaron, 2020). A leader is also expected to make quality decisions despite the uncertainty surrounding the business environment in the world. The authority of the leaders is given a chance for them to make accountable and transparent decisions that will help the company move forward. The decisions help in empowering the right people to make decisions that will respond to the crisis effectively. Another behavior is the demonstration of empathy in which leaders prioritize human tragedy before business. Covid 19 required some healthy measures to be considered, and the leaders needed to apply them as a priority to cater to the stakeholders’ health. Making a positive difference to the lives of the stakeholders welcomes their support hence successful crisis management (Gemma & Aaron, 2020). Effective communication by the leaders is crisis behavior that helps in the proper direction. The Covid-19age has resulted in changes in with the employees, the supply chains and the customers. As a leader, one should communicate with these stakeholders to make decisions on the way forward.

Flexible Organizational Structure

Flexible organizational structure is the other approach that has helped companies to manage and overcome the crisis. The leadership ensures that the organizational structure is flexible and can adapt to the changes that occur. During the age of the Covid-19 pandemic, most of the flexible companies were the ones that survived the adverse effects. Based on flexibility, crisis management is achieved when the structure supports an open culture and behavioral flexibility, which promotes expertise t