The Role Of Communication And Its Impact On The Situation Of A Crisis

1061 Words Dec 4th, 2016 5 Pages
In today’s ever-increasing volatile world, the crisis can hit a company from any industry without a prior intimation. In the Freshfields Bruckhaus Deringer LLP report, 50% of communications advisers surveyed, believe that organizations are not adequately prepared to handle a crisis (Freshfields 2013). This is because most of the companies prioritize their public image and direct all communication efforts externally in the situation of a crisis. Corporate executives, employees, board of directors, and vendors are amongst the top 9 recommended audiences to target during a crisis (Bernstein, J; Bernstein, E, 2015). However, companies tend to ignore that employees are equally important stakeholder group and efficient internal employee communication leads to fulfillment of 3 P’s i.e. predict the crisis, prepare according to the situation, and practice actions to successfully achieve the organizational objectives.
The role of communication is becoming an increasingly important factor in the understanding of the value of intangible organizational assets (Ritter, 2003 p. 50). During a crisis, internal communication is such intangible asset that can impact the employee engagement, organizational performance, and productivity resulting in affected stock price, stakeholder value, and brand reputation. The most common internal reason for the crisis is 55% of wrong strategic decision-making, followed by 38% of insufficiency internal communication (Dr. Lymbersky 2014). Hence, it…

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