Organizational crisis also refers to the harm towards the heath as well as the well-being of the stakeholders of the organizations, both internal and external (Friedmann 2018). The crisis within the organization might include any activity that are threatening to any major product line or a specific unit of the business. The crisis within the organization might further discuss the damage that might be faced in the organizational performance in terms of finance (Bundy et al. 2017). There are five major types of crisis that might be faced by the organization including financial crisis, technological crisis, crisis of malevolence, natural crisis and crisis of organizational misdeeds (Booth 2015). Two major examples of the organizational crisis might be cited in the cases of the racial row that was faced by the airline company in China, Air China and the accounting scandal that was faced by the famous retail organization of the United Kingdom, Tesco PLC (Bbc.com 2016; Kizil and Ka?ba?? 2018).
Communication content and reason
The management of the business organizations should communicate a number of factors that are relevant to the issues that the organization might face in the duration of their operations within the given company. Fearn-Banks (2016) states that the major types of crisis that are faced by the companies active within the international markets refer to the financial crises, the natural crises and the crises that threatens the reputation and the good will of the concerned company.
The financial crises that is faced by the company should be communicated to both the internal and the external stakeholders of the company. This is due to the fact that the financial crises within the company affects both the employees of the organization as well as the external stakeholders of the organization like the governmental bodies that have been active within the concerned political boundaries, the external shareholders of the organization as well as the suppliers and the clientele of the organization (Dahles and Susilowati 2015). One major example of the financial crisis that might be cited in this case is the crashing down of the stock market within any given country. The crashing down of the stock market will result in the conditions wherein the companies within the country would face a huge crisis in the financial sector.
The other major type of crises that might befall a company is the natural crises. The management of the company should also communicate with the stakeholders the natural crises that is being faced by the company. This would help the company to take care of the safety of the staff of the organization as well as communicate to the clientele as well as the other concerned external stakeholders the reason behind the inconsistency of the regularity of their services (Coombs 2015). One major example of such a crisis might be cited in the tsunami that was faced by Japan. The tsunami is one of the major natural crises that had hit the country. The tsunami had resulted in a large amount of losses that were faced by the residents of the country as well as by the various companies that had been present within the territorial boundaries of the country.
The threats to the reputation of any business organization is also one of the major types of the crisis that is faced by the company. The management of the company as well as the public relations department within the organization should maintain a greater concern for the various issues that are discussed by the stakeholders of the company as well as the negative publicity that might be attempted by the rivals of the organization (Doppelt 2017). The concerned management as well as the public relations team should communicate the major factors and happenings of the organization in the various social media platforms that are accessed by the organization (Lachlan et al. 2016). The majorly popular social media platform that is generally accessed by the organizations all over the world is Facebook. The concerned management and the public relations department within the organization might be advised to maintain regular activity on the social media platform which in turn lead to the averting the crisis that is faced by the reputation of the concerned business organization.
The manager of the concerned organization should be communicating with the internal as well as the external stakeholders of the organization. The major internal stakeholders of the organization refer to the staff of the organization as well as the managerial staff as well as the Chief Executive Officer of the organization (Gruber et al. 2015). The major modes of the communication that need to be maintained for communicating with the staff of the organization refer to the various training procedures that are followed by the concerned organizations (Coombs 2015). The staff of the organization inclusive of the managerial employees as well as the CEO of the organization might be advised to attend the meetings that are conducted within the organization in order to deal with as well as ensure proper communication within the workforce during the times of the crisis within the organization (Dahles and Susilowati 2015). The company might also rely on the other technological media for the proper communication among the internal stakeholders of the business concern. This might include the implementation of the proper emails and memoranda that are being exchanged within the organization (Lachlan et al. 2016). The exchange of the memoranda as well as the emails are generally used in case of the communication among the managers and in some cases the CEO of the company as well.
The external stakeholders of the organization include the clientele of the organization as well as the investors of the company. The major modes of communication that is used in case of the external stakeholders relate to the advertisements that are shared over the various media, the public relations that are maintained by the concerned company (Harrison 2016). In case of the investors of the company, the majorly relied communication channel should be the one that involves the direct communication with the concerned investors of the organization.
Communication content and reason
In order to deal with the proper communication within the organization, the management of the organization should be advised to discuss the nature of the crisis that is being faced by the organization in discussion. The managers should communicate with the staff of the organization the nature of the concerned crisis during the meeting as well as outline the various ways in which the concerned company might deal with the situations that have been threatening the stability of the organizational performance. The managers of the organization might also ask the concerned staff to put forth their suggestions in order to deal with the crisis situation that is faced by the concerned organization (Fearn-Banks 2016). This in turn leads to the conditions wherein the engagement of the concerned employees within the organization is increased. The increase of the employee engagement within the company has often led to the retention of the employees of the organization. The increase in the employee engagement would also help the concerned organization to overcome the crisis situation in a proper manner through the implementation of a plausible crisis management plan (Dahles and Susilowati 2015). The mangers might also be advised to communicate the crisis plan to the staff and welcome the suggestions from the staff as well.
The crisis plan should be communicated to both the internal as well as the external stakeholders of the organization. The internal recipients of the communication that is undertaken on the crisis plan refers to the people who have been serving the organization in the lower levels of the organizational hierarchy as well as the employees who have been serving at the managerial levels. The crisis plan should also be communicated to the CEO of the company as well (Doppelt 2017). The major communicational instruments that are recommended for the usage in the given organization refer to the meetings, training sessions and the emails that are circulated among the organizational workforce as well as the CEO of the company (Gruber et al. 2015). This helps in the proper maintenance of the records that are required for later references. The company should also convey the plans for mitigating the crisis to the external stakeholders of the organization which includes majorly the investors of the company as well as the concerned clients (Harrison 2016). The major modes of communication that should be used in this case refers to the direct communication with the concerned investors as well as the public relations of the concerned organization.
Conclusion
Thus, from the above discussion it might be discussed that the multitude of organizations that have been active within the international markets might require to develop on the skills of crisis management. This would help them gain an advantage over the other companies that have been their competitors. The crisis management of the organization is majorly known to help the company to survive through the critical periods that they might face in their due course of operation. In situations of organizational crisis, the management is should implement a plan for evaluating the degree of the crisis as well as assist in averting similar kinds of crisis in the future days.
References
Bbc.com 2016. Air China magazine sorry for London slur. [online] BBC News. Available at: https://www.bbc.com/news/uk-england-london-37307602 [Accessed 11 Feb. 2019].
Booth, S.A., 2015. Crisis management strategy: Competition and change in modern enterprises. Routledge.
Bundy, J., Pfarrer, M.D., Short, C.E. and Coombs, W.T., 2017. Crises and crisis management: Integration, interpretation, and research development. Journal of Management, 43(6), pp.1661-1692.
Coombs, W.T., 2015. The value of communication during a crisis: Insights from strategic communication research. Business Horizons, 58(2), pp.141-148.
Dahles, H. and Susilowati, T.P., 2015. Business resilience in times of growth and crisis. Annals of Tourism Research, 51, pp.34-50.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
Fearn-Banks, K., 2016. Crisis communications: A casebook approach. Routledge.
Friedmann, J., 2018. The crisis of transition: a critique of strategies of crisis management. In Life space and economic space (pp. 40-68). Routledge.
Gruber, D.A., Smerek, R.E., Thomas-Hunt, M.C. and James, E.H., 2015. The real-time power of Twitter: Crisis management and leadership in an age of social media. Business Horizons, 58(2), pp.163-172.
Harrison, S. ed., 2016. Disasters and the media: Managing crisis communications. Springer.
Kizil, C. and Ka?ba??, B., 2018. Accounting Scandals and Eye-Catching Frauds: USA-Japan Comparison by Considering the Role of Auditing. Journal of Asian Research, 2(3).
Lachlan, K.A., Spence, P.R., Lin, X., Najarian, K. and Del Greco, M., 2016. Social media and crisis management: CERC, search strategies, and Twitter content. Computers in Human Behavior, 54, pp.647-652.
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