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CRISIS COMMUNICATION AND ITS ROLE IN REPUTATION MANAGEMENT IN ORGANISATIONS: ACASE OF ROKO CONSTRUCTION COMPANY BY NAMATOVU JACKLINE LUBEGA 02/00616/135089 A PROPOSAL SUBMITTED IN IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE A BACHELORS DEGREE IN PUBLIC RELATIONS AND MEDIA MANAGEMENT OF CAVENDISH UNIVERSITY UGANDA.
Transcript

CRISIS COMMUNICATION AND ITS ROLE IN REPUTATION MANAGEMENT IN

ORGANISATIONS: ACASE OF ROKO CONSTRUCTION COMPANY

BY

NAMATOVU JACKLINE LUBEGA

02/00616/135089

A PROPOSAL SUBMITTED IN IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE A BACHELORS DEGREE IN PUBLIC RELATIONS AND MEDIA

MANAGEMENT OF CAVENDISH UNIVERSITY UGANDA.

CHAPTER ONE: INTRODUCTION

1.0 INTRODUCTION

This chapter starts by presenting a background discussion,

statement of problem, objective of the study, scope or range of

the selected topic of this proposal.

1.1 BACKGROUND OF THE STUDY

A crisis is the ultimate unplanned activity and the ultimate test

for managers. In a time of crisis, conventional management

practices are inadequate and ways of responding usually

insufficient. This author, a communications practitioner with

global experience, details a well-managed crisis response that

will leave stakeholders with a favorable impression and renewed

confidence in the affected company. Porritt, (2005)

Crises are taken as a threat to the organizational reputation.

Crises damage the reputation and such changes can affect how

stakeholders interact with the organization (Barton, 2001;

Dowling, 2002). Post-crisis communication can be used to repair

the reputation and/or prevent reputational damage (Coombs and

Holladay, 2005). The field of crisis communication is dominated

by case studies. The end result is that we know precious little

about how stakeholders react to crises or to the crisis response

strategies used to manage crises (Ahluwalia et al., 2000; Dawar and

Pillutla, 2000; Dean, 2004). Crisis management needs evidence-

based crisis communication guidance. Evidence-based guidance for

decision making in a crisis must be supported by scientific

evidence from empirical research rather than personal preference

and unscientific experience (Rousseau, 2006).

A reputation is an aggregate evaluation stakeholders make about

how well an organization is meeting stakeholder expectations

based on its past behaviors (Wartick, 1992). The term

'organization' is used here instead of corporation because SCCT

is applicable to variety of organizational forms and the term

'corporation' implies a specific type of for-profit organization.

As evaluations, reputations are favorable and/or unfavorable.

Stakeholders are any group that can affect or be affected by the

behavior of an organization (Agle et al., 1999; Bryson, 2004).

Reputations are widely recognized as a valuable, intangible

asset. Reputational assets can attract customers, generate

investment interest, improve financial performance, attract top-

employee talent, increase the return on assets, create a

competitive advantage and garner positive comments from financial

analysts (Carmeli and Tishler, 2005; Davies et al., 2003; Fomrun

and Gardberg, 2000; Fombrun and van Riel, 2004).

Few circumstances test a company’s reputation or competency as

severely as a crisis. Whether the impact is immediate or

sustained over months and years, a crisis affects stakeholders

within and outside of a company. Customers cancel orders.

Employees raise questions. Directors are questioned. Shareholders

get antsy. Competitors sense opportunity. Governments and

regulators come knocking. Interest groups smell blood. Lawyers

are not far behind. Gundlach,(2004)

As the ultimate unplanned activity, a crisis does not lend itself

to conventional “command and control” management practices. In

fact, some of the techniques for managing a crisis may fly in the

face of conventional notions of planning, testing and execution.

Preparation and sound judgment are critical for survival. Meijer,

(2004)

The first task is to identify crisis risks or to recognize a

crisis when it breaks out. From a communications standpoint, a

crisis is a business or organizational problem that is exposed to

public attention, and that threatens a company’s reputation and

its ability to conduct business. A crisis can take on many forms,

including natural or man-made disasters, environmental spills,

product tampering or recalls, labor disruptions or criminal acts,

to name a few. What makes them a crisis is the fact that they are

the focus of intense media scrutiny. Porritt, (2005)

Since the Tylenol crisis of the 1980s (unknown parties tampered

with bottles of the product), the concept of crisis management

has become a specialized activity in the domains of

communications and public relations. Companies have come to

recognize crisis communications capabilities as a vital part of

their risk management and business continuity strategies.

National Public Relations has been on the front lines of some of

the highest-profile crises in Canada and beyond, for more than 30

years. We have devoted many more hours to helping companies

avoid, manage and recover from a crisis. This article

encapsulates our strategy for survival. Härtel, (2000)

Crisis communications are often undertaken with hopes of solving

the problem of the organization at hand. No community and no

organization public or private, is immune from crises. The world

has continued to experience devastating crises of all types. In

2008, the United States experienced the largest economic crisis

since the Great Depression. This crisis had a systemic effect and

impacted every major bank in the financial system. The event

created a ripple effect across the world and ultimately created

aglobal recession (Sorkin, 2009).

In Africa, there was a recent crisis in Congo. The Democratic

Republic of Congo was rocked by a rebel insurgency that seized

the strategically vital eastern city of Goma, raising fears among

southern African capitals of a broader regional conflict. The M23

rebels pulled out of Goma, sparking a flurry of diplomatic

efforts to prevent the crisis from flaring up again. Porritt,

(2005)

East African countries also face devastating crises that at times

destroy their reputation for example the financial crisis which

was at The Kenya Petroleum Refineries Ltd that loomed Kenya in

2013. This crisis affected its landlocked neighbors that include

Uganda, Rwanda, Burundi and eastern Congo.

A case study of Roko Construction limited located at 160A & B

Bombo Road Kawempe, Kampala, 172, Uganda. ROKO is the first

construction company in Uganda and amongst the first in East

Africa to receive the internationally recognized ISO 9001:2008

certification. "This solution gives clients assurance of quality

workmanship." He adds: "we are the number one contractor in the

building sector. That is the norm and no one argues that." So the

research looks forward to look for the impact of communication

crisis on reputation management.

1.2 PROBLEM STATEMENT

Despite the fact that most of the companies in the world have

built their reputations for years but have failed to maintain the

top most part of the reputation through them facing a crisis in

communication which is seen as a standing threat to most

companies’ reputation management an example of Roko construction

limited which had built its strong reputation around the country

and the world at large but for just a small incidence that

occurred when they were building and debris stroked a man who was

moving along the road besides the building which the company was

building and the man died. This strongly shaked Roko

construction’s reputation management just in so short a time, so

there is need for the company to come up with a checklist for

communication crisis management through them knowing Names and

contact information of the crisis team/ spokespeople. People need

to know who holds responsibility for leading the organization

through the crisis. Understanding what level of “crisis” you’re

facing. Establishing criteria to decide when a minor incident has

the potential to become a national crisis can be a challenge. And

if they fail to do so them their reputation is most likely to

stay at stake. Härtel, (2000)

1.3 GENERAL OBJECTIVE

To assess the impact of crisis communication on reputation

management of an organizations

1.4 SPECIFIC OBJECTIVES

I. To determine the steps taken in evaluating the reputation

threat of a crisis communication

II. To understand the crisis communication strategies so as to

maintain reputation

III. To find out how the strategies of crisis communication

protect against negative reactions to a crisis

1.5 RESEARCH QUESTIONS

I. What are the steps taken in evaluating the reputation threat

of a crisis communication?

II. What are the various crisis communication strategies that

can be used to maintain reputation?

III. How the strategies of crisis communication protect against

negative reactions to a crisis

1.6 SCOPE OF THE STUDY

1.6.1 Geographical scope

The research will be conducted at Roko construction Limited

located in Kawempe Bombo road.

1.6.2 Time scope

The research will be done within a period of 2 months that’s from

June to July. Because it’s when the researcher will have control

over the data that will be collected

1.6.3 Subject scope

The research will focus on the impact of crisis communication on

reputation management of organizations.

1.7 SIGNIFICANCE OF THE STUDY

To policy makers

The research will guide policy makers to address the challenges

raised as a result of a negative public image and how such

challenges can be overcame. It further guides policy makers in

designing suitable policies on crisis communication management.

To academicians

Academically, the data and information got from this research

will be used to educate and inform students, scholars and

researchers about the same topic about the steps in crisis

communication and the stages of a crisis.

To practitioners

The information got from the research will further provide

direction for public relations practitioners of different

organizations to follow in trying to create a positive image for

their organization amongst their publics.

1.8 CONCEPTUAL FRAMEWORK

The conceptual framework is simply a construct of the

interrelationships that exist among the variable to be studied.

It clearly illustrates the causative variable, the effect s

including other intervening factors in the relationship. The

conceptual framework is useful in research because it provides a

vivid illustration of the relationships among the different

factors in a given research. It clearly outlines the structure of

the research and guides the researcher in the whole research

process.

Figure 1: The study conceptual framework

Source: situational crisis communication model

Conceptualization

On the basis of the conceptual framework, the following four

hypotheses were developed:

(Dependent variable)

Communication crisis

Natural disasters

Criminal

(Intermediate)

INTERVENTIONS

Management attitude

Competence

(Independent variable)

Reputation management

Image maintenance

Past

- Hypothesis 1: According to the null hypothesis (Ho), the effect

of natural disasters on company image and past behavior

maintenance is insignificant given the intervening factors like

management attitude, competence, organization culture remaining

constant while according to the alternative hypothesis (H1), the

effect of natural disasters on company image and past behavior

maintenance is significant given the intervening factors like

management attitude, competence, organization culture remaining

constant

- Hypothesis 2: According to the null hypothesis (Ho), the effect

of criminal acts on company image and past behavior maintenance

is insignificant given the intervening factors like management

attitude, competence, organization culture remaining constant

while according to the alternative hypothesis (H1), the effect of

criminal acts on company image and past behavior maintenance is

significant given the intervening factors like management

attitude, competence, organization culture remaining constant.

- Hypothesis 3: According to the null hypothesis (Ho), the effect

of environmental spills on company image and past behavior

maintenance is insignificant given the intervening factors like

management attitude, competence, organization culture remaining

constant while according to the alternative hypothesis (H1), the

effect of environmental spills on company image and past behavior

maintenance is significant given the intervening factors like

management attitude, competence, organization culture remaining

constant

- Hypothesis 4: According to the null hypothesis (Ho), the effect

of product recalls on company image and past behavior maintenance

is insignificant given the intervening factors like management

attitude, competence, organization culture remaining constant

while according to the alternative hypothesis (H1), the effect of

product recalls on company image and past behavior maintenance is

significant given the intervening factors like management

attitude, competence, organization culture remaining constant

Conclusion

This chapter discusses the background of the study, problem

statement of the research topic, the objectives, purposes, scope

of the study and the conceptual frame work that shows the

relationship between the variables. And the next chapter

discusses the literature review whereby it reveals what others

discussed about the topic.

CHAPTER TWO: LITERATURE REVIEW

2.0 IntroductionThis chapter covers the review of literature from other scholars

related to the topic. The review of literature will be done under

respective theme which includes: the impact of crisis

communication on reputation management.

Defining Crisis Communication

A crisis can occur at various levels within an organization or

business and can be caused by internal and external factors.In

the research below, a crisis is defined by different authors as

show below. A crisis can be defined as a specific, unexpected,

and non-routine event or series of events that create high levels

of uncertainty and threaten or are perceived to threaten an

organization’s high-priority goals. (Seeger, Sellnow, & Ulmer,

1998, p. 194). It can as well be referred to as are events that

damage the reputation of and threaten the positive face of an

organization (Coombs & Schmidt, 2000).

Ole R. Hosti defined a crisis as situations characterized by

surprise, high threat to important values and a short decision

time. Thierry C. Pauchant and Ian I. Mitroff, say that a crisis

is a ‘disruption that physically affects a system as a whole and

threatens its basic assumptions, its subjective sense of self,

its existential core.’ Crisis expert Steven Fink defines a crisis

as an "unstable time or state of affairs in which a decisive

change is impending." He further points out that all crises run

the risk of escalating in intensity, coming under close scrutiny

of the media and the government, interfering with normal

operations, jeopardizing the positive public image of the

organization and damaging a company’s bottom line.

Crisis communication is a public relations profession sub

specialty that is designed to protect and defend an individual,

company or organization facing a public challenge to its

reputation. The ways in which organizations can restore their

public image after a crisis have been developed extensively.

According to Stamsnijder (2002) crisis communication refers to

offering information from transmitters to receivers for the

purpose of escalation of a crisis situation and thereby reducing

the tangible and intangible consequences of an event.

Communication is in this case very important to provide all

involved parties as soon as possible with the correct and

complete information, even before or after a crisis arises

(Stamsnijder, 2002, p.3). In order to limit the escalation of a

crisis situation, crisis communication has three objectives. The

first objective is meaning (or interpretation) and refers to

explaining what the crisis means for the ones involved and/or the

society (NCC, 2010b, p.1).in this case, it is important to

reflect on the feelings of the victims and to indicate the

feelings in the community.

A reputation develops through the information stakeholders

receive about the organization (Fombrun and van Riel, 2004).

Stakeholders receive information through interactions with an

organization, mediated reports about an organization (including

the news media and advertising) and second-hand information from

other people (eg, word of mouth and weblogs). Most of the

information stakeholders collect about organizations is derived

from the news media. That is why media coverage is an important

feature of reputation management (Carroll, 2004; Carroll and

McCombs, 2003; Meijer, 2004). Second-hand information from social

media on the internet, such as weblogs or blogs, is critical for

some crises. Kryptonite, the bicycle lock makers and Edelman

Public Relations' fake, supportive blogs for Wal-mart are

examples of crises that transpired primarily online rather than

in the news media.

Because reputations are evaluative, some point of comparison is

required. Stakeholders compare what they know about an

organization to some standard to determine whether or not an

organization meets their expectations for how an organization

should behave. A failure to meet expectations, an expectation

gap, is problematic for organizations (Reichart, 2003).

Reputations are based in large part on how stakeholders evaluate

an organization's ability to meet their expectations for treating

stakeholders.

2.1 Steps in Evaluating the Reputational Threat of a Crisis Communication

Crisis managers follow a two-step process when using these three

factors to assess the reputational threat. The first step in

assessing the reputational threat is to determine the initial

crisis responsibility attached to a crisis. SCCT posits that each

crisis type generates specific and predictable levels of crisis

responsibility–attributions of organizational responsibility for

the crisis. Furthermore, crisis types are grouped into three

clusters that produce similar levels of crisis responsibility:

victim cluster, accidental cluster and intentional cluster. By

identifying the crisis type, the crisis manager can anticipate

how much crisis responsibility stakeholders will attribute to the

organization at the onset of the crisis thereby establishing the

initial crisis responsibility level. The Crisis Responsibility–

Organizational Reputation Proposition, represented by arrow A in

the model illustrated in Figure 1, states that as stakeholders

attribute greater crisis responsibility to the organization,

their perceptions of the organizational reputation will decline.

This link had to be verified if SCCT is to have any value.

Research has established that crisis responsibility is negatively

related to organizational reputation (Coombs and Holladay, 1996,

2001).

The second step in assessing the reputational threat involves

crisis history and prior relationship reputation, the two

intensifying factors. Crisis history and an unfavorable prior

relationship reputation serve to increase the initial assessment

of the reputational threat. A victim crisis generates the same

reputational threat as an accident crisis when there is a history

of crises and/or an unfavorable prior relationship reputation.

Similarly, the presence of intensifying factors results in

accident crises creating the same reputational threat as an

intentional crisis (Coombs and Holladay, 2001, 2004).

Two propositions explain how the intensifying factors can alter

the initial reputational threat. The Crisis History Proposition,

represented by arrows B1 and B2 in the model, states that an

organization that experienced a similar crisis in the past is

attributed greater crisis responsibility and suffers more direct

and indirect reputational damage than an organization with no

history of crises. The Prior Relationship Reputation Proposition,

represented by arrows B3 and B4 in the model, states an

organization that treated stakeholders badly in the past is

attributed greater crisis responsibility and suffers more direct

and indirect reputational damage than an organization with a

neutral or positive relationship reputation. Research supports

the belief that both crisis history and an unfavorable prior

relationship reputation intensifies attributions of crisis

responsibility and have a direct effect on reputations (Coombs,

2004a, 2004b; Coombs and Holladay, 2001). The Crisis History and

Prior Relationship Reputation Propositions illuminate how

situation factors can amplify the reputational threat of a crisis

and alter the nature of the crisis.

Crisis responsibility triggers affective reactions as well as

being a reputational threat. Emotions operate on a parallel track

to reputation and affect behavior intentions as well. Increased

attributions of crisis responsibility generate stronger feelings

of anger and in some extreme cases schadenfreude (drawing pleasure

from the pain of others) toward the organization while reducing

feelings of sympathy for the organization (Coombs and Holladay,

2005). The Crisis Responsibility–Affect Proposition, represented

by arrow C in the model, argues that as crisis responsibility

strengthens, feelings of anger and schadenfreude intensify and

feelings of sympathy lessen. Negative emotions can cause

stakeholders to lash out at an organization (engage in negative

word of mouth) or to sever interactions with the organization

(Coombs and Holladay, 2004).

Ultimately, the model needs to connect the effects of a crisis to

behavior intention. If crises altered reputations and create

affect but did not impact behavioral intentions, there would be

no reason to worry about the effects of crises. The

Organizational Reputation–Behavior Intention Proposition,

represented by arrow D in the model, posits that the more

negative the reputation, the less likely stakeholders are to

report behavioral intentions that are supportive of an

organization (eg, using products or services). Hence, the

reputational damage inflicted by a crisis has implications for

the interactions between the organization and its stakeholders.

After a crisis, customers can stop buying products or community

members may no longer support the organization. Research

demonstrates that the post-crisis reputation is related to

behavioral intentions such as purchase intention and support for

an organization (Coombs and Holladay, 2001; Siomkos and Kurzbard,

1994). The relationship is important because changes in the

reputation will have behavioral ramifications.

The Affect–Behavioral Intention Proposition, represented by arrow

E in the model, believes the stronger the feelings of negative

affect (anger and schadenfreude), the less likely stakeholders

are to report behavioral intentions that are supportive of an

organization and will be more likely to engage in negative word

of mouth. Research has shown limited support for this proposition

(Coombs and Holladay, 2004; Jorgensen, 1996; Rudolph et al., 2004).

Crisis responsibility can impact behavioral intentions through

emotions as well as through reputation. While reputation and

emotions are closely related, that connection is largely

explained by the shared connection to crisis responsibility.

2.2 Crisis Communication Response Strategies

Crisis response strategies are used to repair the reputation, to

reduce negative effect and to prevent negative behavioral

intentions. Crisis response strategies, what management says and

does after a crisis, have been studied extensively in management

(e.g., Bradford and Garrett, 1995; Marcus and Goodman, 1991;

Siomkos and Shrivastava, 1993) and communication (e.g, Allen and

Caillouet, 1994; Benoit, 1995). A researcher cannot hope to craft

the one, perfect list of crisis response strategies. What can be

created is a list of useful crisis response strategies. SCCT

demands a theoretical link between crisis situations and crisis

response strategies. Logically, we cannot match crisis response

strategies to the reputational threat of a crisis if there is no

conceptual connection between the two. Responsibility provides

the conceptual link in SCCT. The evaluation of the reputational

threat (the situation) is largely a function of crisis

responsibility.

Responsibility requires accountability and the organization must

answer for its actions (Weiner, 2006). The crisis response

strategies are the organization's answer. SCCT's list of crisis

response strategies is built around the perceived acceptance of

responsibility for a crisis embodied in the response. As crisis

response strategies become more accommodative, show greater

concern for victims, stakeholders perceive the organization as

taking greater responsibility for the crisis (Coombs and

Holladay, 2004, 2005). Table 2 defines the primary and

supplemental crisis response strategies used in SCCT. Previous

research found that the primary SCCT crisis response strategies

form three groups based upon perceptions of accepting

responsibility for a crisis: (1) denial, (2) diminish and (3)

rebuild (Coombs, 2006).

2.2.1 Creating a crisis communications plan

The issues audit becomes the front end of a company’s crisis

communications plan, and arguably, the most important document in

the plan. As a complement to a company’s emergency procedures,

the crisis plan should contain detailed communications response

procedures in the event that any of the potential crises

identified in the communications audit, or unforeseen external

events, come to pass. (Weiner, 2006).

The following is a checklist of the contents of a good crisis

communications plan: Names and contact information of the crisis

team/ spokespeople. People need to know who holds responsibility

for leading the organization through the crisis. Crisis triage.

Understanding what level of “crisis” you’re facing. Establishing

criteria to decide when a minor incident has the potential to

become a national crisis can be a challenge.” First response.

What information has top priority? How will you initially respond

to media alerts / notification procedures? Who needs to get

information, and in what order of priority? By phone, e-mail,

pager or fax? Situation room; assess the physical space that will

be the nerve Centre for managing the crisis, including the

required hardware and software, staffing, location and layout,

Stakeholder communications. How do you plan to communicate with

customers, shareholders, employees, government and the media?

Contact lists. Include the “inputs (which media outlets and

Internet message boards should be monitored, which opinion

leaders should be kept track of, etc.) and “outputs” (which

journalists should be contacted, which newspapers and television

programs should be approached, which media outlets need to hear

your story). Template responses. Standardized format, language

and protocol for all communications. Access to the crisis plan is

essential. Many companies now maintain both print and electronic

versions for ease of access and remote retrieval. (Coombs and

Holladay, 2004)

Testing the plan, in order to ensure that the messages contained

in the crisis plan are delivered effectively and with

credibility, and that the plan can be carried out, it needs to be

tested. This is where crisis training and simulations come in, as

well as media training. Crisis training is best delivered by

outside trainers who take participants through crisis theory and

its practical applications to their industry or company. The

crisis plan is reviewed and implemented in a simulated crisis to

assess the organization’s preparedness, and to identify areas

that need improvement. Did the crisis response, when played out,

escalate or solve the crisis? (Allen and Caillouet, 1994)

Respect the role of the media. The media are not the enemy; they

have direct access to the audiences you need to reach. Rather

than avoiding media, use them as a conduit to communicate key

messages. Prepare a statement that includes the confirmed facts;

communicate what the company is doing and provide background

information. (Weiner, 2006).

Communicate, communicate, and communicate. The first rule of

crisis management is to communicate. Early hours are critical and

they set the tone for the duration of the crisis. The media’s

first questions are likely to be simple and predictable: What

happened? Where? When did you know of the problem? What are you

doing about it? Who’s to blame? Were there warning signs? How

will life or property be protected or compensated? Be as

forthright as possible; tell what you know and when you became

aware of it; explain who is involved and what is being done to

fix the situation. Be sure to correct misinformation promptly

when it emerges. (Siomkos and Shrivastava, 1993)

Take responsibility. One of the more controversial tenets of

crisis management is that someone involved in a crisis must be

prepared to empathize, even publicly apologize, for the events

that have transpired. This is different from accepting blame.

Taking responsibility means communicating what an organization is

doing to remedy a situation that the media and the public have

determined involve that organization in some way. (Mark, 2000)

Centralize information. A company needs to move quickly to gain

control over information and the resolution of the crisis. Ensure

that appropriate levels of management are updated with

information from a wide variety of sources (media coverage,

analyst comments, competitive intelligence, managers’ first-hand

reports, etc.). (Marcus and Goodman, 1991), Establish a crisis

team. Create and train the crisis team before a crisis strikes,

and establish a situation room. During a crisis, when everyone

goes into action, be sure the team has access to the highest

levels of management.( Siomkos and Shrivastava, 1993)

2.3 How Crisis Communication Strategies Protect against Negative

Reactions to Crisis Communication

SCCT holds that communication affects people's perceptions in a

crisis. The words used and action taken by management affect how

people perceive the organization and/or the crisis. In turn,

those perceptions shape evaluations of the organizational

reputation as well as stakeholders' emotional response toward and

future interactions with the organization (Nerb and Spada, 1997).

SCCT shares this belief in the power of communication with Image

Restoration Theory (Benoit, 1995). Image Restoration Theory is a

descriptive system used to analyze crisis cases. The focal point

is identifying which crisis response strategies were used in the

case and drawing speculative conclusions about the utility of the

crisis response strategies. Moreover, Image Restoration Theory

offers no conceptual links between the crisis response strategies

and elements of the crisis situation. SCCT draws upon the crisis

response strategies articulated in Image Restoration Theory by

integrating those strategies into a system that predicts how

stakeholders should react to the crisis and the crisis response

strategies used to manage the crisis.

Crisis response strategies have three objectives relative to

protecting reputations: (1) shape attributions of the crisis, (2)

change perceptions of the organization in crisis and (3) reduce

the negative affect generated by the crisis (Coombs, 1995). These

three objectives all support the larger goal of reputation

protection and are represented by arrows F1, F2, and F3 in the

model. Crisis managers may pursue any combination of these three

objectives with their responses.

As noted earlier, a crisis event is framed as being a specific

crisis type. Crisis managers use the crisis response strategies

to establish a frame or to reinforce an existing frame. In most

cases, the news media is the final arbitrator of the crisis

frames. The frames used in the news media reports are the frames

that most stakeholders will experience and adopt. That is why it

is critical that crisis managers present 'their side of the

story' to the news media. One exception would be crises that

transpire predominantly online. For online crises, people posting

crisis-related information to the internet provide the frames.

The people who post to the internet about crises include the

crisis managers, influential bloggers, critics of the

organization and crisis victims.( Marcus and Goodman, 1991)

Deny strategies seek to establish a crisis frame. Deny strategies

attempt to remove any connection between the organization and the

crisis. If the organization is not involved in a crisis, it will

not suffer any damage from the event. In rumor and challenge

crises, managers need to argue that there is no 'real' crisis.

Managers deny the truth to the rumor or refute the charges of

immoral conduct. If stakeholders, including the news media,

accept the no crisis frame of denial, the organization is spared

any reputational harm.

The diminish crisis response strategies argue that a crisis is

not as bad as people think or that the organization lacked

control over the crisis. If crisis managers lessen an

organization's connection to the crisis and/or have people view

the crisis less negatively, the harmful effects of the crisis are

reduced. Managers need solid evidence to support these claims and

even then might fail. Failure occurs when the news media or, in

the case of online-oriented crises, people posting messages

reject the crisis manager's frame and continue using a different

frame. Stakeholders will be given competing frames and will

select the frame provided by the source they find most credible.

Diminish strategies are most effective when reinforcing existing

crisis frames. Excuse strategies, lack of intent and/or volition

can be used to reaffirm a crisis situation as residing in the

accidental cluster. The value in reinforcing such a frame is that

an accidental crisis is much easier and less expensive to manage

than an intentional crisis (Coombs and Holladay, 2002, 2004).

To change perceptions of the organization in crisis, managers

present new, positive information about the organization and/or

remind stakeholders of past good works by the organization. The

key is to offset the negatives from the crisis with current or

past good works. Rebuild strategies are the main avenue for

generating new reputational assets. Rebuild strategies attempt to

improve the organization's reputation by offering material and/or

symbolic forms of aid to victims. The crisis managers say and do

things to benefit stakeholders and thereby take positive actions

to offset the crisis. Offering compensation or a full apology

both are positive reputational actions. The rebuild strategies

are used for crises that present a severe reputational threat

such as intentional crises or accidental crises coupled with a

crisis history and/or unfavorable prior relationship reputation.

(Goodman, 1991)

Bolstering offers a minimal opportunity to develop reputational

assets. Managers who have had positive relationships with

stakeholders can draw upon that goodwill to help protect the

organizational reputation, praise stakeholders for their efforts

during the crisis as a means of improving relationships with them

or draw sympathy from being a victim of the crisis. Praising

stakeholders generates some goodwill and being cast as the victim

evokes sympathy for the organization. Reminder, another

bolstering strategy, uses past good works to counter-balance the

current negatives from the crisis. The reminder strategy demands

that there are good past works from which to draw. All bolstering

strategies are best used as supplements to the three primary

strategies and adjusting information. ((Reichart, 2003)

A crisis will create negative affect, especially the intentional

crisis cluster. Stakeholders become angry and may even enjoy

seeing the organization suffer. Deny strategies eliminate

negative affect if people accept there is no crisis. Adjusting

information and rebuild strategies are the most effective ways to

reduce negative affect. Part of adjusting information is the

expression of concern for victims. Expressions of concern

themselves help to reduce negative affect. Expressing concern for

victims (adjusting information) and reinforcing this compassion

through compensation and/or a full apology serve to blunt

feelings of anger (Coombs and Holladay, 2005). A crisis can also

evoke sympathy for the organization. The victimage strategy

serves to reinforce the belief that the organization deserves

sympathy.

CHAPTER THREE: METHODOLOGY

3.0 Introduction

This Chapter presents the design, population, sample, research

methods and instruments, quality of instrument, procedure and

data analysis techniques that will be employed in the study.

The basic method to use in this study is that of secondary data

content analysis. In this method, most often used to describe

events or process in society, the researcher is not responsible

for the collection of the original data. In this study the

indirect observational data were not only analyzed, however, but

also will be supplemented by the use of interviews.

3.1 Research design.

According to Kim, Y., & Kang, (2004) a research design is a plan

for selecting subjects, research sites and data collection

procedures to answer the research questions. It is the conceptual

framework within which research is conducted and constitutes the

blueprint for the collection of data and the analysis there for

the collected data is based on the purpose of the study and the

type of data involved. In this research, the researcher will use

a case study design. This will be used because; Case study

research excels at bringing the researcher to an understanding of

a complex issue or object and can extend experience or add

strength to what is already known through previous research. Case

study design also emphasizes detailed contextual analysis of a

limited number of events or conditions and their relationships.

3.2 Research population and sample size.

Cooper and Emory (1995,pg 24) define population as the total

collection of elements about which the researcher wishes to make

some inferences. An element is the subject on which the

measurement is being taken and is the unit of the study. The

population of interest in this study consisted of over (500)

respondents in Roko construction limited, Uganda. There is also a

need to sample the population because not all the population

elements do fit for the study.

Sample Size

From the sample population of 100 an appropriate sample size will

be determined using Sloven’s Formula to come up with appropriate

sample size that will be used in the study. Solven’s Formula

states that, given a population, the minimum Sample size is given

by:

n= N1+N(e2)

Where N is the known Population

e is the level of significant which is fixed at 0.05,

basing in the formula the minimum sample size was

n=100

1+100(0.052)

n= 1001+100(0.02)

n=100

1+2.5

n=1003.5

n=46 Respondents

3.3 Sampling procedure

The researcher will use a simple random sampling method in

selecting the sample size. This method offers equal opportunity

for each member of the population to be sampled. The essence of

using this method is to avoid research bias.

3.4 Sources of Data

Primary data is to be collected by contacting respondents using

self-administered questionnaires. This will be done to find out

the opinions, preferences, and attitudes, concerns of a cross-

section of the population about the impact of crisis

communication on reputation management a case of Roko

construction limited. Interviews will also be conducted to give

free responses by subjects from whom the researcher will gather

more perspectives.

Secondary data is also to be used and is obtained from existing

literature sources such as text books, journals, newspapers, and

the internet. The purpose of collecting the secondary data will

be to collaborate and strengthen the primary data.

3.5 Data collection instruments

Face to face interviews

This involves physical collection of data from the (46)

respondent through asking him/her some questions directly. It

will be used because it permits clarification of questions, and

it can be used to collect data from both illiterate and literate

respondents.

Questionnaire method

In this method the research forms questions were printed and

distributed to the 46 respondents in order to be answered. This

result in more honest response since respondents will be given

time to fill them.

3.6 Measurement of variables

Variables will be measured basing on the reliability and

viability of the research variables presented by the researcher.

3.7 Reliability and Validity of the instruments

Reliability: The aim of any research I believe is to use a given

procedure and reach a conclusion that will be applicable in any

given environment. The primary objective should be that if a

later investigation followed exactly the same procedures as

described by an earlier investigator and conducted the same study

all over again; this later investigator should be able to arrive

at the same results and conclusions. Thus the study is considered

to be highly reliable. However, due to the very nature of human

beings 100% reliability cannot be considered for this study, as

individual perceptions are central in this study. In other words

because we are different as individuals and that our individual

wants and preferences are different, future investigations may

not produce exactly the same results as reported in this thesis.

Nonetheless, I believe that the results of this study could be

regarded as highly reliable.

Validity: Research design is often divided into three broad

categories, according to “the amount of control the research

maintains over the conduct of the research study”. These three

broad categories namely: “Experimental, field and observational

research. They vary on two important characteristics: Internal

and External validity. The External research concerns the overall

validity of the research study (Watt & Van Den Berg, 1995, p.186-

194). In an Experimental research, the researcher controls the

setting in which the research is been conducted and may influence

the variable(s), while observing the changes or no change in the

variables. Thus, due to the ability to control and eliminate

certain variables and conditions that may have a profound effect

on the outcomes of the research, would likely improve the

validity of the research.

3.8 Data processing, analysis and presentation

Data will be analyzed and processed using tables showing

frequency and percentages using excel to check for accuracy,

because the data collection involves numerous sources and it is

to be sorted, arranged, classified in terms of the different

variables, condensed, and summarized with meaning and

descriptions of situations within the case study.

Data Presentation.

Here data showing figures will be presented in tables whereas

data on relationships between variables will be presented in both

essay form and through the use of correlation table.

3.9 Limitations of the study

Questionnaires are also sharply limited by the fact that

respondents must be able to read the questions and respond to

them. Thus, for some demographic groups conducting a survey by

questionnaires may not be practical.

Some respondents will be too busy. This will makes the researcher

travel several times to their offices hence costing a lot of time

and money, at times the researcher will even be made to sit and

wait for longer hours. The frequent postponement of meeting busy

respondents will make the researcher incur more costs that were

not budgeted for.

The researcher will also face a problem of long distances with

poor means of transport. This will affect the administering of

questionnaires and carrying out interviews with some respondents.

This will limit the researcher on the number of people that were

reached and hence did not achieve the exact number of respondents

that he had anticipated to reach.

3.9.1 Solutions to the limitations of the study

The researcher will have answers where respondents did not

understand the phrasings of the questions. The researcher will

have also to apply informal one to one relationships for

collection of accurate data.

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APPENDIX 1

The estimated proposed budget

This is a table like structure that shows the expenditure on the

items and activities that will be done for the successful

implementation and completion of the research report.

Activity Items used N0 of

items

(Qty)

Cost per each

item

(Ushs)

Total cost

(Ushs)

Proposal

drafting

Note books

Pens

Facilitators

10

100

3

50

300

5000

5000

30000

15000

Proposal

typing

Note books

Pens

Typist

20

25

2

500

300

10000

10000

7500

20000

Data storage - - - 200000

Internet

access

Bundles 30 GB 20000 60000

Data analysis - - - 20000

Miscellaneous - - - 300000

Total

expenditures

- - - 4500000

APPENDICE 2

Work plan/log frame

Activit

y&

duratio

n

Week

1

Week

2

Week

3

Week

4

Week

5

Week

6

Week

7

Week

8

A

B

C

D

Below are the project activities represented by alphabetical

letters respectively

A Proposal drafting

B Data Storage

C Data analysis

D Data presentation and reporting

QUESTIONNAIRE

APPENDIX B: QUESTIONNAIRE FOR RESPONDENTS

Dear Respondents

I am NAMATOVU JACKLINE a student of Bachelor degree of Public

relations at Cavendish University Uganda conducting a research on

the impact of crisis communication on reputation management a

case of Roko construction limited, Kampala, Uganda.

You are requested to spend a few of your valuable time to answer

the questions as presented below: The information will be treated

with utmost confidentiality only for academic purpose and your

cooperation will be highly appreciated. Thank you in advance for

your participation.

SECTION A) BIO DATA

Please tick the box that corresponds with your answer

1) Gender

A) Male B) Female

2) Age

A) Below 25years B) 26-35years C)

36-45years D) above 46 year

3) Level of education

A) None B) O’ Level C)

A’ level D) Diploma

4) How many years spent in Roko construction?

A) Less Than 1 Year B) 2-4years

C) More than 5 years

5) What is your post in Roko construction Limited?

A) Manager B) porter

C) Engineer

SECTION B:

CRISIS COMMUNICATION AND REPUTATION MANAGEMENT

Based on the research questions

Please tick according to your level of agreement or disagreement

with the statements below. (SD strongly disagrees, D. Disagree,

A. Agree, SA Strongly Agree)

Items SD D A SA

What are the steps taken in evaluating the reputation

threat of a crisis communication?

1 2 3 4

1 The company managers are always observant to the

situations that usually occur during their operations

1 2 3 4

2 The company has always determined the initial crisis

communication responsibility attached to a crisis

communication that occurred during that time

1 2 3 4

3 The company managers have always grouped crisis

communication according to their responsibilities

1 2 3 4

4 The company managers have always considered the crisis

communication history and prior relationship reputation

so as to identify a quick solution for the crisis

1 2 3 4

5 The company managers have always made clear observations

on whether the crisis communication is affiliated to any

media interests

1 2 3 4

What are the various crisis communication strategies that

can be used to maintain reputation?

1 2 3 4

1 The company has always Established a criteria to decide

when a minor incident has the potential to become a

national crisis can be a challenge.

1 2 3 4

2 The company a been always accountable for the accidental

occurrences during their operations

1 2 3 4

3 The company has always had the names and contacts of a

crisis communication team

1 2 3 4

4 The company already has the leader for the crisis team 1 2 3 4

5 The company already has the close media which it monitors

always

1 2 3 4

6 The company always selected a print media to deal with in

the crisis communication

1 2 3 4

7 The company always respected the role of media 1 2 3 4

How the strategies of crisis communication protect

against negative reactions to a crisis?

1 2 3 4

1 The word used during the crisis communication changes the 1 2 3 4

public perception towards the company

2 The strategies always restore the image of the company 1 2 3 4

3 Strategies have always shaped attributions to the crisis 1 2 3 4

4 The strategies used always changed perceptions of the

organization in crisis communication error

1 2 3 4

5 The strategies always reduced the negative affect

generated by the crisis

1 2 3 4

Thanks for your cooperation


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