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Research on Enterprises Crisis Culture under the Background of International Market Competition
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Research on Enterprises Crisis Culture under the Background of International Market Competition

 

Guojian Lin    Wei Song

ABSTRACT

With the further development of world economic globalization, the international competition is increasingly vigorous, and the crisis confronted by enterprises is ubiquitous. More and more attentions have been paid to strengthening the construction of enterprises crisis culture in various nations. Enterprise Crisis culture can permeate every link, such as enterprise production, enterprise management and enterprise sales. The paper has a detailed discussion to the meaning of enterprise crisis culture under the background of international market competition. The paper combined with background of international market competition and characteristics of enterprise crisis, and has an analysis of the approach of enterprise crisis culture construction, including paying more attention to enterprise crisis culture construction, establishing enterprise crisis culture management system, and strengthening the learning of enterprise internal about crisis culture and so on, so as to enhance the capacity of enterprises to withstand the crisis ultimately.

KeywordsEnterprises crisis; crisis culture; market competition

 

INTRODUCTION

With the global economic integration process has speeded up, the international market economy continues to improve, enterprises increasingly fierce competition, the survival and the development of enterprises face more and more difficulties, the crisis of enterprises in the competition has been increasing. The crisis of enterprises from all aspects, and some can be expected, some unpredictable. In the context of competition in the international market, the crisis of enterprises from within the enterprise, such as: sharp changes in the international market, and related products competition, significant changes in enterprise management control, the key posts of professional brain drain, deadly quality, personal accident, etc.; enterprise crisis also from outside the enterprise, such as: natural disasters, the international financial crisis, domestic policy changes. Under such circumstances, it is important for enterprises to build enterprises crisis culture..

Construction enterprise crisis culture is to improve the capacity and competitiveness of enterprises adapt to the needs of capacity. Through building enterprise crisis culture can not only enhance the competitiveness of existing enterprises, and more emphasis on the point is to ensure that businesses can obtain a "sustainable" competitive advantage. The environment is always changing, today's competitive advantage may does not exist any more tomorrow. Only a vigilant shaping the sense of crisis, enterprises be able to calmly deal with the crisis. Crisis culture can enhance their resilience and competitiveness, and maintain competitive advantage, enterprises in the face of fierce competition in the international market will in a dominant position.

The building of crisis culture is the needs of early warning of crisis. Often at the origin of the crisis of prosperity, when in a good situation, there was no attention to the crisis precursor. Therefore, we must correctly forecast the crisis, crisis prevention, defuse the crisis, we should hold a position of initiative.

The building of crisis culture is the needs of entrepreneurs to keep a sober mind. Enterprises in the situation with prospects for good, businesses and workers prone to emotional meeting, most prone to slack thinking, which would jeopardize the hard-won has been made in the good momentum of development, threatening what has been achieved, wasted corporate prospects, signs of such thinking, we must decisively to contain..

The level of construction Enterprise Crisis culture often determine of the enterprise's long-term survival, in the Directory of the world's top 500 enterprises, more than one-third of enterprises will be replaced by a new name each 10 years. The reason, it was discovered that the smooth development of the enterprise when it is the beginning of the decline of these enterprises. It is precisely at this point in time, they ignore the existence of the crisis, making the ultimate crisis occurred. Therefore, in order to become outstanding enterprises, we must now face up to its various crises or before the onset of the warning issued through various forms and channels building crisis culture.

MEANING AND FUNCTIONS OF ENTERPRISE CRISIS CULTURE

Enterprise Crisis Culture is the process of resisting crisis in long-term, through the efforts of entrepreneurs and employees and recognized by all employees and compliance with, a certain crisis in the context of the crisis of the concept, the crisis system, disaster prevention, implication of the enterprises, as well as all the staff and all the activities on the prevention of crisis in the spirit of the materialization of certain aggregate.

Enterprise Crisis Culture has many special functionsas shown in Figure 1:

 

Guiding Function

The leading role of enterprise crisis culture is that the guiding functions. Mainly include two aspects: on one hand, enterprise crisis culture play a guiding role for the psychological state of the crisis staff and crisis prevention; on the other hand, play a guiding role for the enterprise crisis management activities. The guiding function of enterprise crisis culture guide employees in the right cultural crisis, under the guidance of a scientific sense of crisis, thus resist have a sober understanding of the crisis.

Cohesive Function

Enterprise crisis culture has a cohesive function, which made the staff closely linked prior to the crisis, in times of crisis and in the wake of the crisis. Enterprise crisis culture will encouraged the staff to overcome the crisis and the common goal form hard work. Cohesive function made all the staff to enhance the ideological spirit of the rally, then in action for a strong performance together, promote prevention activities.

Binding Function

Enterprise crisis culture is bound by its corporate functions and staff of the role played by the constraints. Culture is not an ordinary crisis regulations, it should be all staff must abide by a code of conduct crisis management. Enterprise crisis culture in the course of building also has a subtle sense of crisis and cultural infiltration infection incentive, the staff formed a binding among the tendency to standardize the behavior of groups.

Transmission Function

Enterprise crisis culture is not only play a role in their own enterprise but also constantly to other enterprises, and radiation crisis prevention information to society .Enterprise crisis culture radiation always exist in the crisis culture course, each enterprise are constantly learning other enterprises crisis culture and the successful experience in the process of development of crisis management.

CONSTRUCTION OF ENTERPRISES CRISIS CULTURE UNDER THE BACKGROUND OF INTERNATIONAL MARKET COMPETITION

Establish the Scientific Concept of Crisis

Scientific concept of crisis refers to that identification and crisis management should be consistent with objective laws, which is the key to building cultural crisis. The concept of a crisis is a relatively lengthy process, the enterprises should constantly absorbing advanced experience, makes the enterprise more scientific concept of the crisis.

Scientific concept of the crisis means that enterprises must fully take into account the nature of the crisis, a crisis of scientific recognition, and scientific crisis management, the conduct of scientific crisis repair, and so on. Crisis concepts require the enterprises can not neglect the existence of the crisis, and can not see too important about crisis what will impact on the normal business operations and management.

Scientific concept of the crisis means that enterprises to fully take into account the changing nature of the crisis and affiliates, as well as alleviate the crisis occurred in the arduous and complicated. In the international market competition, enterprises have been actively resisting the occurrence of the crisis, but the crisis continued occurred, it is important for enterprises to establish a scientific concept of crisis.

Crisis Cultural Integration of Enterprise Development Strategies

From the development of long-term goal of enterprises, the vision and the mission of enterprise culture decide business strategy, and make a decision of an enterprise strategic direction. From the perspective of enterprise development, once a clear corporate strategy, corporate culture will support the corporate strategy. Therefore, corporate culture and corporate strategy complementary, in the long run, the lead is a cultural strategy. It is useful for crisis cultural integration of enterprise development strategies. Enterprise development strategies in the development process, we need to carefully consider how to resolve the crisis faced by the enterprises and risks. In the implementation process, we need to constantly check whether deviated from the amendment and defuse the crisis. The enterprise culture of crisis construction must be complementary to the strategy of development, let crisis cultural integration of enterprise development strategies.

Nurture Crisis Management Capacity of Entrepreneurs

In the process of building the culture of crisis, the leadership of entrepreneurs is essential. First, because the crisis cultural building is a comprehensive activity, so businesses must be coordinated. The coordination is very important for cultural crisis, and the ability of entrepreneurs decide coordination. Secondly, the corporate existence crisis all the time, if the crisis outbreak, it will bring about serious consequences. Especially in the pursuit of the goal of economic efficiency-driven, companies sometimes make the wrong choice and decision-making, and these choices and decisions are often made by entrepreneurs. Therefore, the quality of entrepreneurs and the culture of crisis management capacity building are essential. Entrepreneurs should have a concept of crisis, and crisis management to resist the capacity, resulting in the building of cultural crisis can come up with effective proposals, and the crisis cultural can be more specific construction. In the context of competition in the international market, all kinds of crisis could occur at any time, entrepreneurs face a crisis, demonstrated a strong crisis management capability will reduce the devastating impact of the crisis.

Crisis Management System

Crisis cultural construction, the key is to develop a clear crisis management system. At present, many businesses did not improve the crisis management system, and have no full-time staff to deal with the various categories of unexpected events and deal with the relationship between the internal and external when a crisis occurred. Most will only deal with unexpected incidents to a temporary sector; in dealing with sudden incidents often is the lack of experience, passive response. If unexpected events were not effective control timely, and missed the best opportunity to resolve, resulting in the spread of the situation, a crisis was inevitable. The creation of an effective crisis management system, with special attention to the following points:

First, forecasting and warning the crisis. Enterprises should develop in accordance with its own laws and structural features, the collection of enterprise development which have significant or potentially significant impact on the external environment and internal information production, management, market development, financial and other aspects of information, analysis and information processing,. According to analysis business process that may predict the type of crisis, the nature, scale, causes, time, location, and consequences of, and to develop contingency plans.

Second, sound leadership system. For the crisis in the formation of a day-to-day crisis management working group is necessary. Members of this group of enterprises should be high, middle and lower cadres of, it is emphasized that the highest leaders of the enterprises directly involved in the group is extremely important. The direct involvement of senior leadership is the key to an effective solution to the crisis. Crisis management is normally cross-sector and inter-regional. Internal involved from production, marketing, service, financial, legal, personnel and other departments. External need not only to deal with the government and the media, but also with consumers, suppliers, brokers, shareholders, banks and the various aspects of communication. There are some small crisis management staff can be handled in accordance with the actual situation, but the crisis in a number of operational and policy adjustments, the human, financial and material resources are re-allocation of various types of external relations and coordination. General management is unable to complete the work of these difficult, and only the top decision makers have the ability to enterprises to do this kind of work. If there is no crisis management of enterprise leaders of the unified command coordination, it is difficult to imagine that such a multi-sector be able to consistent, coherent, cooperative support and rapid action.

Third, smooth internal communication channels. The most successful crisis management is no crisis, communication is very important in crisis management. Many crises are caused by a number of minor incidents. Do not emphasis on small cases, dispose of them procrastination, a perfunctory manner, minor incidents are involving up to a major incident, a crisis incident. How to control the small incident evolve not into a big crisis in the bud? Internal communication channels are important. Usually, when the crisis is most likely to be the originator detected in the first line of the work of the grass-roots workers, such as production, sales, technical staff, financial staff, although these staff positions lower, but they play significant roles. They can be found in the first time during a production of the unusual circumstances. Therefore, enterprises should establish a standard reporting process and a clear business processes, this will ensure that information from the front line, fully unobstructed views to the management of expression, and lead the policy makers to make the best of the situation, analysis, the rapid implementation of crisis response plan to effectively control the spread of the crisis.

Behavior and Culture of Crisis

First, enterprise management staff set a good example. Whether senior or middle-level cadres, cadres, should proceed from their actual work starting in the implementation of crisis management, the decision-making process, and continue to strengthen their own behavior norms, the staff set a good image of the acts.

Second, strengthen training. Enterprises should start on staff training on the culture of crisis, so that employees understand the enterprise crisis, understand crisis knowledge and information, staff will change some of the misconceptions ideas, enhance staff for the construction of cultural identity crisis.

Third, the crisis cultural ideas into VI, BI design, some of the crisis cultural concepts and standardization of the system after printing the booklets, anywhere can browse a staff study and discussion in the standards. By deepening crisis in the guidelines of the code of conduct, let crisis culture into the pursuit of value conscious of all the staff.

CONCLUSION

It is very important for the enterprise to build enterprise crisis culture under the background of competition in the international market. The paper has an analysis of the meaning and function of enterprise crisis culture, on this basis, the paper propose the channels to build enterprise crisis cultureinclude establish a scientific concept of crisis, crisis cultural integration of enterprise development strategies, nurture crisis management capacity of entrepreneurs, crisis management system, behavior and culture of crisis. These recommendations play an important role for improving the enterprise crisis management. This paper is funded by key research bases in the Field of Humanity in Heilongjiang Higher Education.

REFERENCES

1.       Markus Hällgren: Timothy L. Wilson. The nature and management of crises in construction projects: Projects as-practice observations. International Journal of Project Management, In Press, Corrected Proof, Available online 20 February 2008

2.       Richard O. Temple; Dennis J. Zgaljardic; Sybil Yancy; Shawn Jaffray. Crisis Intervention Training Program: Influence on Staff Attitudes in a Postacute Residential Brain Injury Rehabilitation Setting. Rehabilitation Psychology, Volume 52, Issue 4, November 2007, Pages 429-434

3.       Benjamin Brooks. The natural selection of organizational and safety culture within a small to medium sized enterprise (SME). Journal of Safety Research, Volume 39, Issue 1, 2008, Pages 73-85

4.       Q.G. Lin, Y.P. CAI, G.H. Huang, X.H. Nie and Q. Tan. An optimization-model-based interactive decision support system for regional energy management systems planning under uncertainty. Expert Systems with Applications, 4 March 2008 Pages 335-339

 

本文系黑龙江省高校人文社科重点研究基地基金资助项目(HEURS0731)

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