CRISIS (Seri Management Crisis)

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CRISIS (Seri Management Crisis). Rachmat Kriyantono, Ph.D (Materi ini saya tulis juga di buku PR & Crisis Management, 2012, Prenada Jakarta). WHY IMPORTANT TO STUDY CRISIS ....???. Every organization is likely to experience crisis - PowerPoint PPT Presentation

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CRISIS (Seri Management Crisis)

CRISIS(Seri Management Crisis)Rachmat Kriyantono, Ph.D(Materi ini saya tulis juga di buku PR & Crisis Management, 2012, Prenada Jakarta)WHY IMPORTANT TO STUDY CRISIS....???Every organization is likely to experience crisisCrisis generally threat: the reputation & other organization resourcesCrisis is starting point: good reputation or bad reputationFor PR: this is the best challenge and PR can be called The truly PR based on how PR deals with the crisis

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia2Specific threats to organisation: Operational viabilityReputationCredibilityFinancial stabilityLegal actionDEFINITIONDevlin (2007, h.5): an unstable time for an organization, with a distinct possibility for an undesirable outcomeBorodzics (2005): crisis is more than emergency situation.Duke & Masland (2002) & Kouzmin (2008): Crisis as situation that causes physical & nonphysical damages & disrupts organization system & the environment as a whole, especially for the victims.Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia4Seeger, Sellow & Ulmer (1998), cited in Smudde (2001, h.34): 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 organizations high-priority goals. Burnet (in G. Harrison, 2005, h.7): composed of a continuum, beginning with an incident, followed by a conflict, and ending with a crisis, the most serious form of disruption.

5Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-IndonesiaG. Harrison (2005, h.11) : a crisis is a critical period following an event that might negatively affect an organization in which decisions have to be made that will affect the bottom line of an organization. It is a time of exploration requiring rapid processing of information and decisive action to attempt to minimize harm to the organization and to make the most of a potentially damaging situation.

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia6CHARACTERISTICS....Specific event The cause of crisis can be identified. Organization can experience more than one crisis, such as employees demonstration & product tamper. Unexpected & happen any timeTends to threat organization life & cause damage. As a part of organization process.Unpredictable time / Low probabilityAlthough we acknowledge that crisis may happen, but nobody knows the exact time when it comes (Coombs, 2007, h.136).

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia7Crisis produces information uncertainty.Rumours spread out at the beginning. Public relations must actively provide communication channel to disseminate truth and open information (crisis communication). Causing panicAs a result of uncertainty situation. Differential perceptionsHigh impact on organization activities.Negative impact: profit decrease, public trust loss, media scrutiny, public & regulator investigation, unproductive changes. Positive impact: new hero, new strategy, new regulation, better changes (it depends on post crisis communication.Potential for conflictsExternal & internalPro & contra

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia8The situation materialises unexpectedlyDecisions are required urgentlyTime is shortSpecific threats are identifiedUrgent demands for information are receivedThere is sense of loss of controlPressures build over timeRoutine business become increasingly difficultDemands are made to identify someone to blameOutsiders take an unaccustomed interestReputation suffersCommunications are increasingly difficult to manage Common features of a crisis:SOURCES OF CRISISG. Harrison (2005) & White & Mazur (1995): Internal sources: human, managemen, & technology External: goverment regulation, natural disaster, malevolent.Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia10Types of sourcesTechnological crisis- Technology misconduct during organization activities (Chernobyl, Lumpur Lapindo, Bhopal, Exxon Valdez, Korean rocket).Confrontation crisisBad relations between organization & public. Crisis happens when the public express its anger (publik outrage)

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia11malevolence- someone/group wants to harm organization: sabotage, terorism.Management crisis- Management fails to do its resposibility: corruption, loss of valas, change of board of directors, take over (aquitition). Natural disaster crisisProduct crisisProduct tampermisproduction

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia12CRISIS STAGESCoombs (2010); Devlin (2007); Smudde (2001):Pra-krisis (pre-crisis)Serious situation starts & the organization begins to aware. If it is ignored, it will cause the crisis worse. Example: Union carbide Bhopal. Some staff had anticipated gas leaking without inform management in Bhopal. 2000 people dead. Issue management is crucial, as a part of crisis plan. Media begins to sniff at something trouble, then investigate it.

Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia13Krisis (acute crisis) The situation cant be managed by organization so the situation spread out the organization widely. This stage = critical stages of the issue life cycle. No crisis without public outrage. Bad example: biscuit poisonous or employees strike. Good example: Sukhoi Russia Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia14Pascakrisis (post-crisis)Crisis has been accummulatedOrganization tries to maintain reputation or lose it. Recovery stage: detemine success or failure Self-Reflexion diri agar situasi yang sama tidak terulang. Rachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia15HAPPY STUDYINGRachmat Kriyantono, Ph.DRachmat Kriyantono, Ph.D -Lecturer of Public Relations, School of Communication, University of Brawijaya, Malang-Indonesia16Happy StudyingReferences:Kriyantono, R. (2012). PR & Crisis Management. Jakarta: PrenadaRegester & Larkin (2008). Risk & Issue Management. Baca yuuk...