Definition and Importance of Crisis, Crisis Management and Communication

1557 Words4 Pages
bulb-icon

Recommended: LITERATURE REVIEW FOR CRISIS LEADERSHIP

1.0 Introduction

Every organisation aim to be successful. A good and effective management strategy is one necessary thing that a business should have to be able to run well. In business, crisis which can interfere the running of the business (Fearn-Banks 2009, p.6), can happen anytime, therefore, this includes the need of a good crisis management plan. "Crisis management is a set of factors designed to combat crises and to lessen the actual damage inflicted" (Coombs 2012, p.5). To be able to have an effective crisis management, effective crisis communication is necessary.

The purpose of this report is to explain the importance of crisis communication, as well as an effective crisis communication strategy for business. This report covers the definition and importance of crisis, crisis management and communication, and a case study of a failing crisis communication strategy in business as an example.

The information in this report was gathered from several books and journals related to crisis communication.

2.0 Crisis

“A crisis is a major occurrence with a potentially negative outcome affecting the organization, company, or industry, as well as its publics, products, services, or good name” (Fearn-Banks 2009, p.6).

Crisis is more serious than just a problem. It occurs rapidly; therefore, it is hard to think of the way out. In trying to handle a crisis, removing the risk and uncertainty of it, and allows the business to control their destiny, they usually use a strategic planning, which is called crisis management. To have an effective crisis management, a business should have an effective communication. (Fearn-Banks 2009,p.6-7)

3.0 Case Study of Foxconn’s 2010 Employee Suicide Crisis

3.1 Problems

Foxconn is a contract man...

... middle of paper ...

...ess Continuity & Emergency Planning, 1, 2, pp.213-220, vieiwed 2 May, 2014 Business Source Complete, EBSCOhost

Schmidt, O & Chase, D 2013, ‘Communicating inside and out’, Communication World, 30, 9, pp.14-18, viewed 3 May, 2014 Business Source Complete, EBSCOhost

Veil, SR & Husted, RA 2012, ‘Best practices as an assessment for crisis communication’, Journal of Communication Management, Vol. 16 Iss: 2, pp.131-145, viewed 3 May, 2014 Emerald Insight database

Wolburg, JM 2011, ‘Crisis communication: theory and practice’, Journal of Consumer Marketing, Vol. 28 Iss: 6, pp.459-460, viewed 4 May 2014, 2014 Emerald Insight database

Xu, K & Li, W 2013, ‘An ethical stakeholder approach to crisis communication: a case study of foxconn’s 2010 employee suicide crisis’, Journal of Business Ethics, 117, 2, pp.371-386, viewed 3 May, 2014 Business Source Complete, EBSCOhost

Show More
Related

  • Sears And K-Mart: An Overview Of The Sears Financial Crisis

    743 Words  | 2 Pages

    The ability of a company to maintain a good reputation is directly linked to the company’s ability to retain its stakeholders (Peterson, 2005). During a negative event or crisis situation, a company needs to ensure that it has effective strategies and resources in place, to deal with it responsibly, efficiently to minimize losses in share price value and public perceptions of corporate reputation (Coldwell .D, Joosub .T, & Papageorgiou .E, 2012). It is always advantageous to analyze past crises in order to develop a conceptual understanding of crisis situations and appropriateness of various means of coping with them (STERN, E. K., pg.1, 2009).

    Read More

  • Describing the Interaction of the Components of the Autonomic Nervous System in a Relation to the Stress Response

    970 Words  | 2 Pages

    Harmening, W. (2014). "Crisis communication" In Harmening, W. (2014). Crisis intervention: The criminal justice response to chaos, mayhem, and disorder. Boston, MA: Pearson

    Read More

  • The Case of the Indiana State Fair

    880 Words  | 2 Pages

    ...g by; First, I would make sure that their is plenty of feedback for the employees. As our text suggests, "Without feedback, learning can not occur"(Crandall, W., Parnell, J. & Spillan, J. (2013). Secondly, I would make sure that I have a great crisis management team that are well trained and drilled. Thirdly, we would have a strategy and plan for crisis events. Also, It is very important to make sure that your team members are all confident in their ability to make good decisions for the company. So many times, people are afraid to make decisions. This leads to scapegoating within the departments, and the whole blame game. That doesn't get anybody anywhere.

    Read More

  • Tylenol Crisis

    1065 Words  | 3 Pages

    Nelson, Lauren. "Crisis Communications Case Study Tylenol." BCMpedia. A Wiki Glossary for Business Continuity Management (BCM) and Disaster Recovery (DR). 29 Apr. 2010. Web. 08 Feb. 2011. .

    Read More

  • Tylenol Murders

    1490 Words  | 3 Pages

    Crisis communication is an area of public relations that I find really fascinating. I enjoy learning about the proper steps that a professional takes when a company is pitted against a major crisis, and what they do in the face of chaos to turn the situation around and use the crisis in their own favor. One case study that exemplifies the degree to which a crisis can be managed effectively and a company can gain more respect by doing so is the case of the Chicago Tylenol Murders in 1982.

    Read More

  • Understanding Leader's Mental Models In Crisis

    984 Words  | 2 Pages

    In order to understand the thought process of leadership during a crisis, the authors state that we must first understand a conceptual model that is theoretically grounded, (Combe & Carrington, 2015). The conceptual model is divided into two elements, the descriptive and prescriptive mental models, (Combe & Carrington, 2015). The descriptive mental model focuses the external changes that occur during a crisis. The prescriptive mental model concentrates on future actions that need to be implemented to derail the cognitive overload due to continuous external changes as the situation unfolds. The prescriptive model aligns objectives, providing clarity to future implications related to the crisis, (Combe & Carrington, 2015). The authors, Combe & Carrington, (2015) have noted the importance of longitudal research perspective to capture the thought processes of interaction, communication and problem solving in a crisis. This type of research method is instrumental in depicting the challenges to incorporate better solutions to evolving situations. Sense making in a crisis defines these issues to ascertain the complexity and provide meaning to the event, (Combe & Carrington, 2015). Sense making entails the filtering of excessive data to identify the areas of importance. This perspective provides a means of taking a negative, that being disruptive and changing it to a positive or opportunity for

    Read More

  • Alan Jay Zaremba's Case Study: Organizational Communication At The Nuance Group

    1712 Words  | 4 Pages

    There are many definitions for what is considered to be a crisis. Alan Jay Zaremba, author of the textbook ”Organizational Communication,” combines several definitions of the word to conclude that a crisis is “an incident that occurs unexpectedly, could damage an organization’s reputation, values, and/or performance, and requires effective communication. (Zaremba, 2010) In the case of the Nuance Group, their current situation completely blindsided the organization, was a nightmare for their reputation, and communication was now the key element in restoring their image. This was indeed a crisis.

    Read More

  • Blue Bell-Listeria Crisis

    1317 Words  | 3 Pages

    An organization’s quick response to crisis and effective crisis management are both vital to their sustainability. Blue Bell Creameries faced crisis in April, when a bacterial contamination caused operations to halt world-wide. Crisis management for this company has involved much more than finding and fixing the issue. This company has responded to financial loss, legal ramifications, employee impact, and perhaps the most crucial – public perception.

    Read More

  • Fast Food Chain Case Study

    1154 Words  | 3 Pages

    The chosen scenario is the first one provided, regarding the accusations that a needle was found in a signature sandwich of a local fast food chain. This case is interesting since the organization is dealing with a rumor, however, before the issue escalates into what could become a potential crisis, the organization should communicate with stakeholders appropriately. Overall, the restaurant should use the strategies provided by the Situational Crisis Communication Theory (SCCT). First, the fast-food chain should explain that the information is a rumor, thus it will “seek to remove any connection between the crisis and the organization.” (Coombs, 2012, p.156) Then, use bolstering strategies to “build a positive

    Read More

  • Copper Pharmaceuticals Case Study

    1341 Words  | 3 Pages

    "Crisis management in today's business environment: HR's strategic role", Lockwood, Nancy R. Dec 2005, http://www.allbusiness.com/human-resources/851086-1.html

    Read More

  • Taco Bell E. Coli

    700 Words  | 2 Pages

    In order to save a brand during a time of crisis, a company, organization or government must have proper crisis communication. Every brand should be prepared for a crisis and have a plan intact for when it transpires. As mentioned in the

    Read More

  • Crisis Intervention

    1501 Words  | 4 Pages

    A crisis may occur when an individual is unable to deal effectively with stressful changes in the environment. A stressful event alone does not constitute a crisis; rather, crisis is determined by the individual's view of the event and response to it. If the individual sees the event as significant and threatening, has exhausted all his/her usual coping strategies without effect, and is unaware or unable to pursue other alternatives, then the precipitating event may push the individual toward psychological disequilibrium, a state of crisis (Smead, 1988).

    Read More

  • An Assessment of BP's Risk Management Issues and Poor Response to the Oil Spill

    3188 Words  | 7 Pages

    ..., Crisis communication failures: The BP Case Study, International Journal of Advances in Management and Economics, Issue 2, March-April 2013, accessed 28 March 2014,

    Read More

  • Strategic Management of Public Relations

    1159 Words  | 3 Pages

    In the evaluation of strategic management of public relations, both concepts of risk communication and situational theory can be integrated into the above-mentioned model. Risk communication is an ongoing process that builds the foundation for crisis communication. Particularly, the risk analysis process consists of hazard identification, risk assessment, significance of risks and communicating risk information.

    Read More

  • Effective Crisis Communication

    1702 Words  | 4 Pages

    The communication process is not something that begins when a crisis rears its ugly head rather it is a process that takes place in preparing for a crisis before it happens. While the term crisis represents a blanket term used to describe many situations, each situation is unique, thus presenting different obstacles to overcome. However, with a well-established advanced plan in place an organization places itself in a position to overcome and work around obstacles. The development of a comprehensive crisis management plan is one achieved through effective communication where each member of the crisis management team has an advanced shared understanding of his or her role and responsibility during a time of crisis (du Pr'e, 2005).

    Read More

More about Definition and Importance of Crisis, Crisis Management and Communication

Open Document