Management Of Crises In An Organization
(A Case Study Of Anammco Plc Emene Enugu)
Crisis management within an organization pertains to the strategic handling of unexpected and challenging events that may disrupt normal operations and threaten the entity’s well-being. It involves a dynamic and adaptive approach to mitigate the impact of unforeseen circumstances. Successful crisis management requires a combination of proactive planning, swift response, and effective communication. Key elements include risk assessment, scenario planning, and the establishment of clear communication channels. The ability to navigate through crises relies on the organization’s resilience, agility, and capacity to learn from past experiences. Leaders play a crucial role in steering the organization through turbulent times, making decisive decisions, and fostering a culture that values preparedness. In essence, crisis management is an intricate process that demands continuous refinement and a vigilant commitment to safeguarding the organization’s stability and reputation.
Crises are inherent in any human enceinte and perform an integral part in any be managed. It generates problems between employees and the management, between groups in the organization and affects the society at large.
The researcher finds out the causes of crises and management of it in our case study Anammco Plc Emene Enugu chasing the working system, non-payment of wages and salary as at when due, non employees participation on matters affecting them, poor working conditions and management insensitive of employees welfare. These result to poor working morals, low productively on the part of the employees.
After analyzing the data collected from both secondary and primary, the researcher suggested or holds that crises can be reduced through two-way communication system, operative open door policy, ensuring good working condition. These preventive approaches were confirmed after testing the hypothesis.
The research methodology employed were questionnaire, collection of relevant textbooks, in all addition, statistical models – Chi-Square is used in calculating the sample size and testing of hypothesis.
It was recommended that management must be sincerely concerned with the welfare of employees, solicit and respect suggesting of employees and must realize that participatory management is the best approach to reduce crises and ensures obedient and higher productivity.
Title Page
Approval Page
Dedication
Table of Content
Abstract
Chapter One
1.0 Introduction
1.1 Background Of The Study
1.2 Statement Of The Problem
1.3 Purpose Of Study
1.4 Scope Of The Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Significance Of The Study
1.8 Limitations Of The Study
1.9 Definitions Of The Study
Reference
Chapter Two
2.0 Review Of Related Literature
2.1 Organizational Level Crises
2.2 Forms Of Organizational Level Crises
2.3 Approaches For Managing Organization Level Crisis
2.4 Intergroup Crisis
2.5 Causes Of Intergroup Crisis
2.6 Management Of Intergroup Crisis
2.7 Background Of Anammco Emene Plc Enugu
References
Chapter Three
3.0 Research Design And Methodology
3.1 Research Design
3.2 Area Of The Study
3.3 Population Of The Study
3.4 Sample And Sampling Procedure /Technology
3.5 Instrument For Data Collections
3.6 Validation Of The Instrument
3.7 Reliability Of The Instrument
3.8 Method Of Data Collection
3.9 Method Of The Analysis
References
Chapter Four
4.0 Data Presentation And Analysis
4.1 Presentation And Analysis Of Data
4.2 Testing Of Hypothesis
4.3 Summary Of Result
References
Chapter Five
5.0 Discussions, Recommendation And Conclusion
5.1 Discussions Of Result /Findings
5.2 Conclusions
5.3 Implications Of The Research Finding
5.4 Recommendations
5.5 Suggestions For Further Research
References
Appendices
Bibliography
INTRODUCTIONS
1.1 GENERAL BACKGROUND OF THE STUDY
Industrial /organizational crisis constitute a very important component of the industrial relations system. They can be seen as any disputes between employers and worker or between workers and workers, which is connected with the employment or terms of employment and deployment or terms of work. They involve the pursuit of incompatible on at least seemingly incompatible goods by two or more parties so that gains for one party result in loss for the other.
Organizational crisis are usually more exciting to observers and so invariably attract greater attention and comment than peace. As a result in all countries, news papers contain more reports about labour disputes than labour harmony.
Keller 1954 holds two views concerning industrial conflict or crises. The harmony. Relation view: holds that conflict is unavoidable and only occurs because of abnormality in a stable and well integrated organization which has restore a natural homoeostasis while the other realistic view: hold that crises is inherent in any human encounter. It performs an integral part in any dynamic social system and is necessary element of change.
Dispute is the essence of industrial relations because the structural features of organization necessarily result in tensions among persons on different strata. The industrial relations system consists largely of maintaining a balance among these tensions in the interest of pressuring a going enterprise.
Organizational crisis are of the most part normal and even necessary; They have both advantages and disadvantages for the enterprise, demands by worker forces management to search for efficiency or for new market in order to meet new demands.
On the other hard, demand which impair the efficiency of the enterprise or result in an unacceptably higher costs to the customer, threaten the enterprise’s future. For the society as a whole workers demands have been an engine for social porgies brining shorter working how’s, longer holidays, better working conditions and many other improvements over the years. But the welfare of society also may be adversely affected by productivity where prices are forced up or efficiency excessively lowered and by the inflationary effects of increase in labour costs not covered by increase productivity.
Although crises are an element in the maintenance of equilibrium in industries comes abnormal, dysfunctional or pathological. Examples include crises accompanied by pervasive violence and disputes which results in major economic and social disorganization of a community.
In the cost majority of industries, the sources of disputes are to be found in tensions innate to the industrial relations system. Studied have shown that where people work together in an enterprises many interests are to be found, some shared, some not. The employer wants the operations to be a successful as possible whether judged by profit, non –profit or other measures of efficiency. The needs to keep his labour costs reasonably commensurate with those of his inspires managers and supervisors, but in addition they have other interests of their own as also the employees.
On the worker’s side their diverse interests maximizing wages and improving the condition under which they supply their labour, ensuring the securing of their job. Fair treatment from their managers, avoiding any unduly tough work place, belonging to congenial work groups and working in a sate and reasonably pleasant environment.
In addition, all staff in the enterprise may have outside interests, which affect their life within it. For example, work may share common objectives with comrades elsewhere through their trade union or even under aims through political movements, which influences their conduct at work. Their interests may conflict with the achievement of enterprise goals set by management.
1.2 STATEMENT OF PROBLEM
In view of the fact that an employee spends the greater part of the day in his place of work and most active vigorous part of his life as a workman, it is pf permanent importance’s that working conditions should be healthy, convenient and attractive, that the work itself should be as interesting as possible and that relations among the employees themselves and between employees and management should be cordial and co-operative and not confrontational.
It is in this context that we should identify the necessary skills for the effective management of industrial /organizational crises. It is the contention of this research work that for management of industrial crises to be effective, management and workers union must be knowledgeable about the organizational process that impinge on the workers and must be able to diagnose the environment of employees. This can be achieving through the power of information. Information can be even more important than the traditional tangible resources because rational problem solving and influence by presentation are essential in a complex setting. The control of scarce information by management on what motivates specific people, for instance, or on outcomes or processes related to organizational goals can enhance one’s problem salving ability. Thus, information is power.
Curiously enough, although workers union have as their central concern the improvement of the working conditions of their members; but they do not take the workers interests and needs as the starting point of negotiation. Instead the conditions of service as laid down by management are the focal point: However, advances in the behavioral sciences have enabled us to know about the worker. It is they imperative for trade unions and management to have a good knowledge about the workers.
Again, while workers and management are concerned about improving the condition of work which often are interpreted narrowly to include only salaries, wages and fringe benefits the quality of the actual works undertaken by a worker hardly ever features as an area of theorists and researchers on job design that some jobs are ultrasonically more satisfying than others. Workers a lineation has been found to stem from the nature of the jobs, jobs that the worker has no measure of control over the methods to be used, tend to repel to worker, lower his morale and reduce his performance.
1.3 PURPOSE OF STUDY
The objective of the study generally is to secure the highest possible level of mutual understanding and good will between several interests which take part in the processes of an undertaking so as to maxi mix productivity for industry and real incomes for workers.
Summarily this study has the following as its objectives.
(1) Elimination /reduction of conflict /disputes situations among individuals in organizations.
(2) Creation of group harmony in the work community
(3) Provision of a warble work environment.
(4) Minimizing labour turnover
(5) Increasing the feeling of individual’s self worth.
(6) Freedom to express himself, recognition for the ability.
(7) Increase level of efficiency and productivity.
1.4 SCOPE OF THE STUDY
For the purpose of this study, we shall Focus primary on the intergruop types of organizational crises among the staff of our case study organization.
The scope of this cover the management and worker’s union crises and the strategies or steps in managing crises between this two groups with particular reference to Anammco Emene Plc Enugu.
1.5 RESEARCH QUESTIONS
1. What are the causes of crises in the organization?
2. What are the effects of these crises to the management, employees and the society eat large?
3. How often do these organizational crises occur?
4. Use in solving these crises?
1.6 RESEARCH HYPOTHESIS
Based on the foregoing the research hypotheses are formulated as follows
Ho: Non-employees participation in decision-making does not result to organizational crisis.
Hi: Non- employees participial in decision making account for industrial crises.
Ho: Changes in operations or methods of doing works does not enhance industrial crises.
Hoi: Changes in operations or method of doing work enhances industrial crises.
1.7 SIGNIFICANCE OF THE STUDY
The research topic management of industrial crises will help management; entrepreneurs to know various preventive crises approach, be confident and make policies that can reduce these crises which hinder the attainment of business mission.
Secondly Government will know how some of their decision gear industrial crises especially the issue of change without adequate notification, planning and use of diplomacy.
1.8 LIMITATION OF THE STUDY
During the process of this research, the researcher encountered some constraint, which hindered the collection of information.
TIME: The researcher wishers to state it clearly that the period under which this study is done is short especially when academic commitment such as writing of term papers, assignment, tests and above all the preparation for the HNDII final exanimations.
Money: A research paper of this nature requires a lot of money, which is not readily available to a student like the researcher. The researcher is handicapped financially, and thereby cannot afford to make an intensive research.
Back of facilities also reduced the potentiality of this study. The researchers do not have easy access to books and previous studies by other authors based on this study.
Because of all the above limitations the researcher is then recommending that other researchers can make further investigations and improve on this study.
1.9 DEFINITIONS OF TERMS
Industrial Employees – will include the whole web of workers under the employment of both service and manufacturing industries.
Conflict – A condition of objectives incompatibility between valves or goals; as the behaviour of deliberately interfering with another goal achievement.
Industrial relations – Concerns human relations in the process of production.
Management – The ability to get thing done through The Use of People.
Management Of Crises In An Organization:
Managing crises in an organization requires a combination of preparedness, clear communication, decisive action, and effective leadership. Here are some key steps and considerations for managing crises:
- Risk Assessment and Preparedness: Identify potential risks and vulnerabilities to the organization’s operations, reputation, and stakeholders. Develop a crisis management plan that outlines roles, responsibilities, communication protocols, and response procedures for different types of crises.
- Early Detection and Monitoring: Implement systems and processes for early detection and monitoring of potential crises. This may include regular risk assessments, monitoring of external factors, and the use of technology for real-time monitoring of threats and incidents.
- Clear Communication Channels: Establish clear communication channels within the organization for reporting and escalating potential crises. Ensure that all employees understand how and when to report incidents, and designate specific individuals or teams responsible for managing communication during a crisis.
- Training and Simulation: Provide training and conduct simulation exercises to prepare employees for different types of crises. This helps build competence and confidence in responding effectively when a crisis occurs.
- Decisive Action: When a crisis occurs, leaders must act quickly and decisively to contain the situation and minimize damage. This may involve activating the crisis management team, implementing predefined response procedures, and making difficult decisions under pressure.
- Transparency and Honesty: Maintain transparency and honesty in communication with stakeholders, including employees, customers, suppliers, investors, and the media. Provide regular updates on the situation, even if the information is limited, and avoid withholding or misrepresenting information.
- Adaptability and Flexibility: Be prepared to adapt and adjust response strategies as the situation evolves. Monitor feedback and assess the effectiveness of response efforts, making necessary changes to improve outcomes.
- Stakeholder Management: Consider the needs and concerns of all stakeholders affected by the crisis, including employees, customers, suppliers, regulatory agencies, and the community. Develop strategies for managing stakeholder expectations and addressing their concerns.
- Post-Crisis Evaluation and Learning: After the crisis has been resolved, conduct a thorough evaluation to assess the organization’s response and identify lessons learned. Use this feedback to update crisis management plans, improve preparedness, and build resilience for future crises.
- Crisis Communication Recovery: Once the crisis has passed, focus on rebuilding trust and reputation through effective communication and actions. Acknowledge any mistakes or shortcomings, demonstrate accountability, and highlight measures taken to prevent similar incidents in the future.
By following these steps and principles, organizations can effectively manage crises, minimize damage, and emerge stronger and more resilient in the face of adversity.