Public Relations Issue and Crisis - Essay Example

Part A Understanding the concept of crisis and issue is a very difficult task owing to the fact that there is very little differentiation between the two. Differences between crisis and issue can be identified when organization looks into the seriousness of the matter and analyzes it from different angles which will help to understand the manner in which it impacts organization. Different academicians and scholars have presented different views on crisis and issue which highlights the differences between the two. This essay looks towards understanding the components of crisis and issue and looks to analyze the manner where different situations results in different things for organization. This will help to differentiate between crisis and issue and will help organization to develop strategies based on whether the situation is an issue or a crisis. Crisis is thereby a situation or an event which leads towards creating an unstable situation which could either affect an individual, group, community or the entire society. Crisis is associated with negativity and impacts the concerned person heavily and might also provide little or no warning to react to the situation. Some scholars have also defined crisis as a complex system which results in reducing the functioning of the system and requires decision to be taken immediately and the reason for its existence is not known immediately but is known after the entire incident is analyzed (Boin, 2004). Issues on the other hand are much smaller than crisis and don’t create a situation which is uncontrollable. Further finding the underlying cause for an issue is easier and provides an opportunity where the person involve can analyze the situation and based on it take decisions so that overall effectiveness is achieved in decision making. Issues generally are seen to lead towards crisis as the culmination of smaller issues which when not addressed at the correct juncture leads to crisis. Issues provide the person involved with sufficient time to deal with the matter and if the person involved in the incident is willing to make the required changes that efficiency can be achieved and issues can be controlled (Coombs, 2008). A similarity between issue and crisis is that both are dangerous and can lead towards physical and monetary loss. Since, both an issue and crisis is associated with negativity it results in creating negative impacts and have a bearing on the overall performance of an organization or an individual or an economy (Morin, 2003). Issues and crisis both at the time when they are starting provides an opportunity to he handled and looked at so that it doesn’t becomes fatal but at most time such warnings are ignored and it results in creating disastrous situation. Crisis usually results in creating a situation where carrying out the normal work becomes difficult but issues don’t result in such a problem. This is primarily due to the fact that crisis is much bigger in form and looks to engulf everyone having an association with the event but issues generally affects people associated with it and others who have no relation can carry the normal activities without any problem (Gummesson, 2006). Another different between crisis and issue is that crisis at most times requires external support from external agencies to solve the matter. These results in creating a scenario where different people associated with it find it hard to come to a conclusive decisions (Cho and Karla, 2006). Issues on the other hand needs to be sorted between the different people involved and requires little or no participation from external agencies. A primary reason for involving external agencies to solve a crisis is that there is lack of knowledge or understanding with regard to the actual situation. This requires help from external agencies so that the problem can be better understood and better decisions can be arrived (Tucker and Melewar, 2005). This is in addition to the fact external agencies are also in some way or the other engulfed in the crisis so taking the help to those bodies helps to arrive at a better decisions. In case of issue the actual matter is known to the bodies involved so involving external bodies won’t be of any help as the external bodies won’t be in a position to provide the correct directives to deal with the situation (Pearson and Mitroff, 2003). The other difference between issue and crisis is that crisis doesn’t provide time to ponder over the situation and take decisions. Instead crisis requires that decisions are taken immediately which increases the risk as the decision could further aggravate the situation by making it worse. This might result in creating a situation where the decisions which have been taken doesn’t provide the correct solution and instead makes the crisis worsen (Adler, 2002). Issues on the other hand provides time to be dealt with and provides an opportunity where different solutions can be analyzed and based on it the most effective one can be picked. This will ensure that issues will be handled in the most productive manner and will help to provide a positive solution to the problem which the situation presents (Sturges, 2004). The other important factor which differentiates crisis from issue is that crisis looks to be of a bigger magnitude and will thereby catch the attention of the stakeholders, customers and the media. This might thereby result in presenting the entire situation in a bad light and might have an impact on the future potential and working. Issues on the other hand are much smaller in magnitude and will thereby have limited or no impact on the stakeholders, customers and media (Kouzmin, 2008). This will result in ensuring that the decisions which are taken are will be better and will have a limited impact on the working style and pattern. Thus, crisis and issues are different from one another and issues generally lead towards crisis if not handled at the early stage. Different scholars and academicians have highlighted the same and shown the manner in which issues and crisis are different from one another and also shows the manner in which both are the same. This thereby helps to understand the concept of crisis and issue and shows the manner in which both have an effect on the working style. References Adler, P. (2002). Corporate scandals: It's time for reflection in business schools. Academy of Management Executive, 16 (3), 148—149 Boin, A. (2004). Lessons from Crisis Research, in International Studies Review, Managing Crises in the Twenty-First Century, 6, 166-174 Cho, S. and Karla K. (2006). Framing effect on the public’s response to crisis: Human interest frame and crisis type influencing responsibility and blame. Public Relations Review, 32, 420-422 Coombs, W. T. (2008). An Analytic Framework for Crisis Situations: Better Responses from a Better Understanding of the Situation. Journal of Public Relations Research, 10 (3), 177-191 Gummesson, E. (2006). Qualitative research in management: addressing complexity, context and persona. Management Decision, 44 (2), 167-179 Kouzmin, A. (2008). Crisis Management in Crisis? Administrative Theory and Praxis, 30 (2), 155-183 Morin, E. 2003. Towards a crisiology, Industrial and Environmental Crisis Quarterly 7 (1), 5-23 Pearson, M., and Mitroff, I. (2003). From crisis prone to crisis prepared: a framework for crisis management. Academy of Management Executive, 7 (1), 49-59 Sturges, L. (2004). Communicating through crisis: A Strategy for Organizational Survival. Management Communication Quarterly, 7 (3), 297-316 Tucker, L. and Melewar, T. (2005). Corporate Reputation and Crisis Management: The Threat and Manageability of Anti-corporatism. Corporate Reputations Review, 7 (4), 377-388. Part B The article which has been chosen is “Holden says it being driven out of Australia” by Aston, H., Hagon, T. & Blackburn, R. published in the Sydney Herald on 9th April 2013 highlights the different issues which Holden their car maker is facing. The article highlights that Holden cars are slowly looking to stop production in Australia and have already resulted in job losses for people. Some of the reasons which have been identified for it are that the cost of imported cars is cheaper in Australia compared to producing the car by them. This is matched by the fact that the Australian dollar is fluctuating and moving downwards. This has been aided by rising cost which has increased the level of pressure on the car industry and has affected other adjoining industries as well. The situation highlights that it is a crisis which the Australian car industry is facing. One of the prime reason for the situation to be considered as a crisis is that a crisis affects an individual, group, community or the entire society. This is seen in the car industry as the situation had resulted in job losses and has also affected other adjoining industries. This has impacted the entire society and the economy and has affected the car industry thereby increasing the level of difficulties. Crisis is associated with negativity and impacts the concerned person heavily and might also provide little or no warning to react to the situation. This is seen in the car industry as the situation has resulted in complicating the industry and has created a negative impact on the entire economy (Boin, 2004). Crisis usually results in creating a situation where carrying out the normal work becomes difficult. This is seen in Holden motors which is finding it difficult to compete with the increasing competition level and has resulted in job losses. This is primarily due to the fact that crisis is much bigger in form and looks to engulf everyone having an association with the event but issues generally affects people associated with it and others who have no relation can carry the normal activities without any problem (Gummesson, 2006). This has thereby affected other allied industries which supplies semi finished products to Holden. It has affected those industries and has resulted in impacting the performance of the industry heavily. Crisis at most times requires external support from external agencies to solve the matter. This situation is reflected in the article as Holden requires financial support from the government to finance future projects. Further, they requires assistance from the government is some other form apart from the monetary incentive so that they can strengthen the performance and compete with other players in the industry (Cho and Karla, 2006). A primary reason for involving external agencies to solve a crisis is that there is lack of knowledge or understanding with regard to the actual situation. This requires help from external agencies so that the problem can be better understood and better decisions can be arrived (Tucker and Melewar, 2005). This is something that Holden looks to achieve as it will help to strengthen the entire working scenario and will provide the required momentum through which better strategies can be developed. This is in addition to the fact external agencies are also in some way or the other engulfed in the crisis so taking the help to those bodies helps to arrive at a better decisions. In case of issue the actual matter is known to the bodies involved so involving external bodies won’t be of any help as the external bodies won’t be in a position to provide the correct directives to deal with the situation (Pearson and Mitroff, 2003). Ensuring the role of the government in decision making will help to remove the obstacles which the car industry is facing. Also, having more interference from government bodies and external agencies will help to strengthen the car industry and will provide the required strategies through which the car industry is able to deal with the different issues it is facing in a proper manner. Crisis doesn’t provide time to ponder over the situation and take decisions. Instead crisis requires that decisions are taken immediately which increases the risk as the decision could further aggravate the situation by making it worse (Adler, 2002). This is something which the Holden car manufacturers are facing. The manufacturer has to take decisions regarding the future prospect of the organization and while looking to do so have to take steps and action at the quickest as money is involved and results in complicating the mater. This has been aided by the fact that increasing investments in this direction has caught the attention of many stakeholders and has raised concern regarding the manner in which decisions are taken in this direction. Crisis looks to be of a bigger magnitude and will thereby catch the attention of the stakeholders, customers and the media. This might thereby result in presenting the entire situation in a bad light and might have an impact on the future potential and working (Kouzmin, 2008). This has been reflected in case of Holden cars where increase investments being made by the manufacturer especially at the time when the car industry is facing tougher situation has caught the attention of most. This has been aided by the fact that it has even raised concern towards the government and the manner decisions are taken by them government has caught the attention of most. This situation has even shown the government in the bad light and has raised concerns regarding the manner decisions are taken and the different factor which are considered before taking any decisions. The article shows that the crisis hasn’t been managed properly and both the manufacturer and the government instead of taking steps to deal with it have looked towards delaying it. The crisis is happening and slowly it is affecting the car and other allied industry. This on the long run will have an impact on the Australian economy and will result in increasing unemployment and also raise concern regarding the future growth potential. The inability and unwillingness of both the manufacturer and the government to deal with the crisis has affected the manner in which decisions are taken. To deal with the crisis it is imperative that the car industry is provided the required support from the government. This can be through protectionism or the government can look towards raising the taxes on imported cars. This will ensure that the imported cars are priced in a similar manner as the domestic cars and will help to ensure that an opportunity is provided through which the car industry will be able to revive. Dealing with the crisis at the moment becomes the most important aspect as it will lead towards long term affects and will require proper formulation of strategies. The overall effect at the moment is negative and is seen in the car industry as the situation had resulted in job losses and has also affected other adjoining industries. This has impacted the entire society and the economy and has affected the car industry thereby increasing the level of difficulties. The overall perspective at the moment should focus on dealing with the crisis so that it doesn’t affect other industries and the economy on the whole. This could lead towards unrest and requires proper formulation of strategy which will help to deal with the crisis in a better way. This thereby highlights that the article shows the entire incident as a crisis as it fulfills the different conditions of crisis and looks towards creating a negative impact on the society and the economy. References Aston, H., Hagon, T. & Blackburn, R. (2013). Holden says it being driven out of Austrlia. The Sydney Herald. Retrieved on April 8, 2013 from http://global.factiva.com.ezproxy.ecu.edu.au/ga/default.aspx Adler, P. (2002). Corporate scandals: It's time for reflection in business schools. Academy of Management Executive, 16 (3), 148—149 Boin, A. (2004). Lessons from Crisis Research, in International Studies Review, Managing Crises in the Twenty-First Century, 6, 166-174 Cho, S. and Karla K. (2006). Framing effect on the public’s response to crisis: Human interest frame and crisis type influencing responsibility and blame. Public Relations Review, 32, 420-422 Coombs, W. T. (2008). An Analytic Framework for Crisis Situations: Better Responses from a Better Understanding of the Situation. Journal of Public Relations Research, 10 (3), 177-191 Gummesson, E. (2006). Qualitative research in management: addressing complexity, context and persona. Management Decision, 44 (2), 167-179 Kouzmin, A. (2008). Crisis Management in Crisis? Administrative Theory and Praxis, 30 (2), 155-183 Morin, E. 2003. Towards a crisiology, Industrial and Environmental Crisis Quarterly 7 (1), 5-23 Pearson, M., and Mitroff, I. (2003). From crisis prone to crisis prepared: a framework for crisis management. Academy of Management Executive, 7 (1), 49-59 Sturges, L. (2004). Communicating through crisis: A Strategy for Organizational Survival. Management Communication Quarterly, 7 (3), 297-316 Tucker, L. and Melewar, T. (2005). Corporate Reputation and Crisis Management: The Threat and Manageability of Anti-corporatism. Corporate Reputations Review, 7 (4), 377-388. Read More

A similarity between issue and crisis is that both are dangerous and can lead towards physical and monetary loss. Since, both an issue and crisis is associated with negativity it results in creating negative impacts and have a bearing on the overall performance of an organization or an individual or an economy (Morin, 2003). Issues and crisis both at the time when they are starting provides an opportunity to he handled and looked at so that it doesn’t becomes fatal but at most time such warnings are ignored and it results in creating disastrous situation.

Crisis usually results in creating a situation where carrying out the normal work becomes difficult but issues don’t result in such a problem. This is primarily due to the fact that crisis is much bigger in form and looks to engulf everyone having an association with the event but issues generally affects people associated with it and others who have no relation can carry the normal activities without any problem (Gummesson, 2006). Another different between crisis and issue is that crisis at most times requires external support from external agencies to solve the matter.

These results in creating a scenario where different people associated with it find it hard to come to a conclusive decisions (Cho and Karla, 2006). Issues on the other hand needs to be sorted between the different people involved and requires little or no participation from external agencies. A primary reason for involving external agencies to solve a crisis is that there is lack of knowledge or understanding with regard to the actual situation. This requires help from external agencies so that the problem can be better understood and better decisions can be arrived (Tucker and Melewar, 2005).

This is in addition to the fact external agencies are also in some way or the other engulfed in the crisis so taking the help to those bodies helps to arrive at a better decisions. In case of issue the actual matter is known to the bodies involved so involving external bodies won’t be of any help as the external bodies won’t be in a position to provide the correct directives to deal with the situation (Pearson and Mitroff, 2003). The other difference between issue and crisis is that crisis doesn’t provide time to ponder over the situation and take decisions.

Instead crisis requires that decisions are taken immediately which increases the risk as the decision could further aggravate the situation by making it worse. This might result in creating a situation where the decisions which have been taken doesn’t provide the correct solution and instead makes the crisis worsen (Adler, 2002). Issues on the other hand provides time to be dealt with and provides an opportunity where different solutions can be analyzed and based on it the most effective one can be picked.

This will ensure that issues will be handled in the most productive manner and will help to provide a positive solution to the problem which the situation presents (Sturges, 2004). The other important factor which differentiates crisis from issue is that crisis looks to be of a bigger magnitude and will thereby catch the attention of the stakeholders, customers and the media. This might thereby result in presenting the entire situation in a bad light and might have an impact on the future potential and working.

Issues on the other hand are much smaller in magnitude and will thereby have limited or no impact on the stakeholders, customers and media (Kouzmin, 2008). This will result in ensuring that the decisions which are taken are will be better and will have a limited impact on the working style and pattern. Thus, crisis and issues are different from one another and issues generally lead towards crisis if not handled at the early stage. Different scholars and academicians have highlighted the same and shown the manner in which issues and crisis are different from one another and also shows the manner in which both are the same.

This thereby helps to understand the concept of crisis and issue and shows the manner in which both have an effect on the working style.

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