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Organizational Communication Issue of Toyota - Research Paper Example

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But by the end of 2009, its position in world marked changed. Toyota recalled approximately 9million vehicles from global market when a fatal crash of 2009 of Lexus ES 350 due to the problem of “unintended…
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Organizational Communication Issue of Toyota
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Download file to see previous pages But apologies regarding how the whole situation of information shared and communication with public has been done came much later. Toyota through press releases responded to the government, NHTSA’s queries and through this releases it tried to defend itself by refuting the claims made by Toyota users regarding the possible cause of faults in the vehicle. But in spite of this, Toyota had to pay a $16.4 million fine to NHTSA in USA on April 19, 2010. It was found out that Toyota face media scrutiny which leads to increased confusion of stake holders and their criticism and questions. Toyota’s failure to respond to the public and government in transparent way and it denied the problem until asked to take actions (May 100-107).
An important function of organization is communication during crisis time. A crisis can cause financial loss, decreased confidence of stakeholders and buyers purchase intentions from the organization. To handle the communication training should be given to the spokesperson. To Lerbinger, Feran-Banks and Coombs, attention should be placed on media relation in crisis time. This was important for Toyota which gave late and vague response in media regarding recall of vehicle. Communication should include pre drafted messages from top management and news releases which can be used during crisis. Corporate Leadership Council and Business Roundtable supported the use of these templates. PR personnel will play a key role in drafting these messages. A separate website can be created for a crisis situation or a section in existing website could be devoted to deal with these. Stakeholders and media turn up to internet during crisis situation. Taylor and Kent in 2007 persuaded the use of internet during organizational crisis. Quick response by informing the media and stakeholders about the cause and nature of crisis from the side of organization is very necessary or ...Download file to see next pagesRead More
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