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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.
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