THE EFFECT OF CRISIS MANAGEMENT IN ORGANISATION EFFICIENCY AND EFFECTIVENESS

ABSTRACT

This study was conducted to analysed the effect of crisis management in organisation efficiency and effectiveness.

Being able to effectively respond in the event a crisis is relevant to an organisation’s survival. Whether or not an organisation is prepared for a potential crisis depends upon senior officials and other personnel operating within the company.

The scope of this study covers area such as the basic element and concept of crisis management. The important of adoption of crisis in an organisation. The type and process of crisis management and the impact it has in promoting general productivity and effectiveness in organisation performance. Data were collected through personal interview conducted and questionnaire administered on the selected study population, the statistical tools used in this study are simple percentage distributed table and Pearson’s Correlation Coefficient to test the hypothesis formulated. Finding shows that effectiveness crisis management helps to boost morale and general productivity. It was also discovered that some reason for crisis management team failure include member non-cohesion, absence of shared common purpose, social loafing and unwillingness to cooperate with another.

TABLE OF CONTENTS

Title Page

Certification                                                                              i

Dedication                                                                                ii

Acknowledgement                                                                    iii

Abstract                                                                                    iv

Table of Content                                                                       v

Chapter One

1.1       Introduction                                                                    1

1.2       Statement of Purpose                                                     2

1.3       Purpose of Study                                                            2

1.4       Scope of Study                                                                3

1.5       Research Question                                                         3

1.6       Research Hypothesis                                                      3

1.7       Definition of Terms                                                         4

Chapter Two

2.1       Introduction                                                                    5

2.2       Crisis                                                                               5

2.3       Crisis Management and Team Effectiveness                 8

2.4       Role of the Crisis Management Team                            10

2.5       Factors that may Influence the Effectiveness of a

         Crisis Management Team                                               15

2.6       Crisis Management Process                                           15

2.7       Differentiating Crisis Communication from Crisis

         Management                                                                    16

2.8       Crisis Management Plant                                               18

2.9       Benefit of Effective Crisis Management in Organisation  20

         References                                                                       21

Chapter Three

3.1       Research Design                                                             24

3.2       Sampling Procedure                                                       24

3.3       Data Collection Instrument                                            24

3.4       Data Analysis Techniques                                              25

3.5       Sample Size                                                                     26

3.6       Limitation of Study                                                         26

Chapter Four

4.1    Data Analysis, Presentation and Interpretation           27

Chapter Five

5.1       Summary of Finding                                                       56

5.2       Conclusions                                                                    57

5.3       Recommendation                                                            59

Bibliography                                                                   61

Questionnaire                                                                 64

CHAPTER ONE

INTRODUCTION

The most critical incident any organization can face at any point in time is crisis. Crisis does not discriminate based on a company’s size or notoriety, and they can surface when a company least expect it. They come in many form: strikes, layoffs, product recalls or allegation of misconduct, but while some of these may seem small, every crisis has the potential to damage the reputation of a company.

Crisis management is the process used to manage the response and recovery from critical incidents or business interruptions that cannot be adequately handled within the normal scope of business operations crisis management is a relative new field to management, operationally crisis management activities include forecasting potential crisis and planning how to deal with it. Organization should invest time and resources in order to identify potential crisis before they occur; this include identifying the real nature of crisis if any, intervening to minimize damage and also strategy to recover from the crisis. Crisis management often includes strong focus on public image and assure stakeholders that recovery is underway.

Crisis management, in the security field as elsewhere, presents many different aspects depending upon the nature and dimension of the event involved. It always rests upon a philosophical basis, which has to be transformed into a guiding policy. The impact of a crisis is always susceptible of being affected in some way by preparations undertaken to meet and deal with the event, these preparations translates into practical operational terms constitute what is called crisis management.

Fundamentally, crisis management is concerned with minimizing harm and restoring order through the intelligent employment of the appropriate, available resources.

1.2       STATEMENT OF PURPOSE

The major issues of interest in this study is to look at the benefit an organization will derive from effective crisis management for enhancing safety for staff and customers and also increasing confidence and moral within the organization.

1.3       PURPOSE OF STUDY

Basically, the study has it’s special aim of examining the effect of crisis management in organization efficiency and effectiveness. And also how managers are normally represented in the crisis management team. It attempts to know how crisis should be dealt with as an operational management issue that is simply undertaken in extreme circumstance.

1.4       SCOPE OF STUDY

The scope of this study covers areas such as the basic element and concept of crisis management. The importance of adoption of crisis in an organization. The type and process of crisis management and the impact it has in promoting general productivity and effectiveness in organization performances.

1.5       RESEARCH QUESTIONS

a.       What are the benefits an organization could derive in effective crisis management?

b.      What variables are considered in the process of crisis management on organization?

c.       What are the framework upon which crisis management is built?

d.      What are the justifying factors in adopting crisis management concept in organization?

e.       In applying crisis management principles what are its limitations?

1.6       RESEARCH HYPOTHESIS

H₁:    Crisis management creates conducive environments for organization effectiveness.

H₀:    Crisis management does not create conducive environments for organization effectiveness.

H₁:    Effective crisis management helps to boost employee morale and general productivity (organization effectiveness).

H₀:    Effective crisis management does not helps to boost employee morale and general productivity (organization effectiveness).

1.7       DEFINITION OF TERMS

Organization: Is a combination of individual effort in pursuit of certain common purpose (John B, Miner 1978).

Objective: Can be defined as a statement of intentions, expectation goals or targets set by management for accomplishment (Adetoye 1998).

Policy: Can be defined as the objectives, the mode of thought and the body of principles underlying the activities of an organisation (Breach 1953).

Crisis: Is a significant business disruption that stimulates extensive new media coverage.

Personality: The unique pattern of attitudes predisposition and behaviour possessed by an individuals (G.A. Cole (2002).

Strategy: Is the determination of the basic long-term goals and objective of an enterprise (Alfred D. Chandler 1962).

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