ABSTRACT
This project is a review Management of Crisis in an Organization; a study of MB ANAMMCO PLC EMENE ENUGU. The problems identified are crisis response, effective information management, the need to prepare leaders for this role and validate their capabilities, and crisis communications. The major objectives of this study include: the effects of crisis response on the management of crisis in organization, the effects of Strategic thinking and decision making on the management of crisis in organization, the effects of Information management on the management of crisis in organization, the effects of leadership on the management of crisis in organization and how communication can affect the management of crisis in organization. The descriptive survey method was used and the research tool was questionnaire. 245 staffs answered the questionnaire. Frequency percentages and criterion mean score of 7.51 were used in data analysis using Chi-square formula and presentation was done by the use of tables. Taro Yamani’s Statistical formula was used for the sample size determination of 245 from a total population of 629 staffs. The findings from the study showed that the effect of crisis response on the management of crisis in organization is high. Finally, solutions and recommendations were proffered that crisis management is a key capability in the armoury of an organisation’s resilience to disruption. In conclusion, it is the strategic capability in times when fast, effective response is required.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Management of a major crisis requires prevention, planning, testing, evaluation and maintenance to mitigate and minimize the consequences. The process used by a company can determine the outcome for those affected, including employees, community and the company. According to F. John Reh (2009:131), a crisis is any natural, accidental or intentional event that severely impacts people, property, and/or the environment. Effects might include fatalities, disabling injuries significant destruction or contamination, or jeopardize the organization’s reputation or products, threatening a company’s reputation or its continued existence. The consequences are independent of company size, quality of management, industry or location, (Lawrence S. K. 2001:12).
Crisis Management defined as the preparation and application of strategies and tactics that can prevent or modify the impact of major events on the company or organization. It is the way of thinking and acting when everything “hits the fan.” At worst, crisis management can be the life-or-death difference for a product, career, or company (Caywood, 1997:189). Crisis has potential to do direct impact on corporate reputation. For this reason, crisis periods are indeed time of the reputation risk management for the managers in the competitive business environment. Crisis situations are risky process and it should manage timely manner. Kolawole, O. D. (2002), see crisis management as the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. The study of crisis management originated with the large scale industrial and environmental disasters in the 1980s. Three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time. Venette (2000:12) argues that “crisis is a process of transformation where the old system can no longer be maintained.” Therefore the fourth defining quality is the need for
change. If change is not needed, the event could more accurately be described as a failure or incident. Peter Drucker (1909-2005),
In contrast to risk management, which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats before, during, and after they have occurred. That is, crisis management is proactive, not merely reactive. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures start.
Virtually nothing can damage organizational reputation and financial performance more rapidly and more deeply than the impact of a major crisis. Yet many organizations continue to delegate responsibility for crisis management to operational middle managers, while reputation management increasingly secures a place at the executive table.
However a significant trend in crisis management is now emerging which has the potential to reshape the discipline with substantial implications for the development of organizational structure and design. This trend is the advance of proactive crisis prevention as opposed to reactive crisis response, which brings with it more comprehensive parameters of what should be recognized as integral elements of crisis management within a broader continuum of management activities.
According to Hisrich, R. D. and Peter M. D. (2002), in order to properly understand the emerging shape of crisis management it is essential to appreciate the longer term evolution of the discipline. It is also important to recognize that in the present discussion the term crisis is used to refer primarily to organizational crises – where particular organizations or groups of organizations are specifically impacted. This discussion is not intended to focus on societal crises – including natural disasters such as earthquakes, hurricanes, forest fires or even
climate change – where individual organizations may be affected but only as part of broader community or national impact.
The British scholar Denis Smith observed in 2005: “The definition of crisis has generated considerable debate within the academic literature and there is no real collective acceptance about the precise meaning of the term” (p. 319).
Yet there is a good deal of academic and practitioner support for the broad concept of a crisis fundamentally as a low probability and highly damaging occurrence (Bekesua. T. A. 2003). A frequently cited descriptive definition is that developed by Pearson and Clair (1998): “An organizational crisis is a high impact event that threatens the viability of the organization and is characterized by ambiguity of cause, effect and means of resolution, as well as by a belief that decisions must be made swiftly”
1.2 STATEMENT OF THE PROBLEM
The problem of the study is to determine management of crisis an organization in
ANAMMCO PLC EMENE ENUGU
Crisis management is more than just crisis response alone. Crises are events that, by their very nature, exceed any planning expectations.
Crisis Management has been said to involve a need for making “wise and rapid decisions” and is a function of collating information, developing strategy, and delivering direction in a timely manner; any team required to make decisions must therefore be empowered to apply this process.
Effective information management involves collecting information from a set of sources and assessing source credibility whenever a new piece of information is received from unknown or unverified sources.
The need to prepare leaders for this role and validate their capabilities reinforces the importance of holding realistic rehearsals and simulations of crisis situations.
Crisis Communications has largely been represented as comprising what is said by an organisation in the media during and after a crisis.
1.3 OBJECTIVES OF THE STUDY
The major objectives of this study include:
a. To determine the effects of crisis response on the management of crisis in organization.
b. To determine the effects of Strategic thinking and decision making on the management of crisis in organization.
c. To examine the effects of Information management on the management of crisis in organization.
d. To examine the effects of leadership on the management of crisis in organization.
e. To ascertain if communication can affect the management of crisis in organization.
1.4 RESEARCH QUESTIONS
This research study will find answers to the following research questions at the end of the investigation.
1. Does crisis response affect the management of crisis in organization?
2. What are the effects of Strategic thinking and decision making on the management of crisis in organization?
3. Does Information management affect the management of crisis in organization?
4. What are the effects of leadership on the management of crisis in organization?
5. How does communication affect the management of crisis in organization?
1.5 HYPOTHESES FORMULATION
The following hypotheses have been formulated:
| 1. | H0: low | The effect of crisis response on the management of crisis in organization is | |
| H1: high | The effect of crisis response on the management of crisis in organization is | ||
| 2. | H0: | There is no effect of strategic thinking and decision making on the |
management of crisis in organization.
H1: There is an effect of strategic thinking and decision making on the management of crisis in organization.
3 H0: The effect of Information management has on the management of crisis in organization is low.
H1: The effect of Information management has effect on the management of crisis in organization high.
4. H0: There is no effect of leadership on the management of crisis in organization.
H1: There is an effect of leadership on the management of crisis in organization.
5. H0: There is no significant relationship between communication and the management of crisis in organization.
H1: There is a significant relationship between communication and the management of crisis in organization.
1.6 SIGNIFICANCE OF THE STUDY
The benefit of this study is as follows:
a. It will help management to know what it entails to improve crisis management in an organization.
b. This study will help management to know the benefit of crisis control and planning. c. This study will motivate other researchers to go into further study on the issue.
d. The information contained in this study will be of immense value to students, management and the general public.
1.7 SCOPE OF THE STUDY
This study attempts to examine the management of crisis an organization in ANAMMCO PLC EMENE ENUGU.
It will cover Nature of Management in Organizations, Definition of Crisis, Different Types and Levels of Crises, the Crisis Management Cycle, Definition of Crisis Management, Stages of Crisis Management, Elements of an Effective Crisis Management Capability, Developing the Crisis Management Capability and Key Benefits of Fostering Crisis Management Capability
1.8 LIMITATIONS OF THE STUDY
In carrying out this research many factors served as constraints:
Inadequate Time: time factor constitutes the major limitation of this research study. It relates to the fact that the time for research work was short because it was combined with lectures, studies and examination. Time was another limitation encountered during the course of study. Sometimes, Secondary data collected were not reliable, hence they were rejected. A lot of time was spent on the selection and examination of secondary data for the study.
Negative attitude of respondent: the problem facing the researcher with regards to the respondents relates to the non-cooperation and uncompromising attitude some respondents in giving out relevant information or facts.
Another major limitation of this work is its non experimental dimension. This factor makes it difficult to ascertain that the result of the research would be exactly the same anywhere it is carried out. Collection of primary data for this study was a major constraint, as the researcher has to be on the field personally in all the data collection processes.
1.9 BRIEF HISTORY OF MERCEDES-BENZ ANAMMCO
ANAMMCO was conceived in the 1970s as a joint venture between the Federal Government of Nigeria (FGN) and Daimler-Benz AG (“Daimler”) of Germany to import and assemble Completely Knocked Down (CKD) units of Mercedes Benz trucks and buses in Nigeria. “ANAMMCO” is an acronym of ANAMBRA MOTOR MANUFACTURING COMPANY. By its Memorandum of Association, ANAMMCO is established to carry on the business of importation of CKD sets of Mercedes Benz commercial vehicles and passenger cars as well as spare parts pertaining thereto and the assembling of same in Nigeria under license from Daimler, utilizing parts purchased from Daimler or from local suppliers.
Daimler and ANAMMCO also entered into Manufacturing and Agency Agreements which gave ANAMMCO selling rights in respect of trucks and buses imported in CKD version and assembled and/or manufactured by ANAMMCO in Nigeria only and the spare parts appertaining thereto.
In the middle of 2006 and in accordance with the then existent Shareholders Agreement between FGN and Daimler, Daimler nominated Mr. Jacques Gelin as the Managing Director of ANAMMCO. In March 2007, FGN through the Bureau for Public Enterprises (BPE) sold
24% (Twenty-four per cent) out of its 35% (Thirty-five per cent) interest in ANAMMCO to
G. U. Okeke & Sons Limited (GUO), a company owned by Chief Godfrey Ubaka Okeke (Chief Okeke). GUO also acquired 3% (Three per cent) of ANAMMCO’s equity from Leventis Ltd and another 0.5% (Half of one per cent) from Hon. Nnamdi Njoku, another shareholder. In order for the sale by FGN to GUO to be consummated, an amendment of the
Articles of Association of ANAMMCO was procured in March 8th 2007 at a meeting of the
then Board of Directors of ANAMMCO and the Annual General Meeting. The essence of the amendment to the Articles was that the pre-emption clause in the said Articles was removed. Objectives
To expand networks with comprehensive services through dealers that is qualified with abilities to meet the standard of the brand Mercedes-Benz.
Take great care of all customers and be able to answer and provide solutions to all concerns with professional skills.
Insure that every car will be insured with impeccable services according to the terms and conditions with accuracy.
Encourage staff and dealers to work with higher efficiency and enthusiasm.
To alleviate the transport problem in the country Nigeria.
To help reduce unemployment in the country.
Staff Welfare
MB-ANAMMCO continues to live up to its social responsibilities in all ramifications. It takes care of its 860 employees by offering them highly subsidized food at its modern canteen, providing free medical services to its employees and their dependants and offering them recreational facilities; it has a football club and also cultural groups. In addition, it occasionally donates to charity and identifies with the government in its socio-cultural endeavors and community development efforts.
After work, one can relax at the Anammco Staff Club situated in one of the most beautiful areas in Enugu. It is a haven for relaxation for staff and guest members. Other social activities include the Football Club and Cultural dance troop for staff relaxation.
Training
The Division co-ordinates training activities in the company to ensure that staff are equipped with the required skills to perform their duties effectively. Overseas courses are often arranged with our technical partners, while the services of reputable training organizations are often procured to handle local and in-plant training in the various fields, ranging from management training to computer courses.
Recruitment
Our philosophy of the best or nothing is practiced in our recruitment activities, where the best candidate is selected for the job. All vacancies are advertised and qualified candidates invited to apply. Selection is made after short listing and interviewing.
Management Team
Jacques Gelin (Managing Director)
Gabriel Ndu (Sales Manager)
Igwe G.C. Onyia (General Manager Personnel)
Rolf Ohlinger (Technical m\Manager)
Donatus Ngwoke (Chief Accountant)
Armin Schmand (Workshop Manager Abuja)
Organization
The company has five divisions with each division headed by a general manager except one headed by the managing director. The five divisions are:
1. Technical Division.
2. Marketing Division.
3. Personnel Division.
4. Controlling and Finance.
5. Corporate Affair Divisions.
The management of the company is made up of the divisional heads which at present is made of three expatriates and two Nigerian that head the personnel and marketing divisions.
Staff Strength
As at the time of this research work MB-ANAMMCO had a total of eight hundred and sixty employee made up of 850 Nigerian and 10 expatriates. Out of the Nigerian employee, 282 were senior staff while 568 were made up of junior and intermediate staff. Due to fluctuating economic trends in Nigeria, the company had carried out several staff rationalization and retrenchment exercise.
History
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG. Mercedes-Benz traces its origins to Karl Benz’s creation of the first petrol-powered car, the Benz Patent Motorwagen, patented in January 1886 and Gottlieb Daimler and engineer Wilhelm Maybach’s conversion of a stagecoach by the addition of a petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler Motoren Gesellschaft.
The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benz’s and Gottlieb Daimler’s companies into the Daimler-Benz company. Mercedes- Benz has introduced many technological and safety innovations that later became common in other vehicles. Mercedes-Benz is one of the most well-known and established automotive brands in the world, and is also the world’s oldest automotive brand still in existence today. Noted employees
Ferdinand Porsche—founder of Porsche, joined Mercedes in 1923 and developed the
Kompressor
Bruno Sacco—joined Daimler-Benz as a designer in 1958. Head of Design in 1975, retired in 1999
Rudolf Uhlenhaut—joined Daimler-Benz in 1931, his designs included the Silver
Arrows, the 300 SL and 300SLR
Adolf Eichmann—Former Nazi criminal. Worked in Argentina’s factory
Fig 1.1: Authority Relation in MB-ANAMMCO
Source: MB-ANAMMCO (2012)
This material content is developed to serve as a GUIDE for students to conduct academic research
EFFECTS OF MANAGEMENT ON EMPLOYEE WORKPLACE LEARNING IN DEVELOPING HUMAN CAPITAL IN SMALL MANUFACTURING ENTERPRISES IN SOUTHEAST NIGERIA
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