Crisis Management and Communication MAR026-3

Crisis Management and Communication MAR026-3

Introduction

Crisis management refers to the process of identification of issues n an organisation and adaptation of policies that can eradicate these issues. Importance of crisis management can be reflected in the effective management of situations in the organisation. The study will highlight the different types of crises. Ryanair will be chosen for the analysis of the study. In this scenario, the organisation has encountered issues of non-refunding the customers within seven days.

Ryanair is an airline organisation that has been situated in 1984. Headquarters of the entity are established in Swords in Ireland. Michael O'Leary is the CEO of the organisation (ryanair.com, 2021).

Distinguish various types of crises from each other

Crisis in an organisation can be segregated into different parts. The natural crisis can be depicted as the disturbances that have caused in the environment. Tornadoes, hurricanes, tsunamis, drought and earthquakes can be regarded as the natural crisis that can affect the functions of an organisation. The natural crisis is beyond the control of human beings. On the other hand, technological crisis results from a failure in technology in the organisation or in the economy (Lu and Choi, 2020). Breakdown of the machine along with corrupted software can be denoted as the technological crisis in an organisation. Ryanair can face confrontation crisis were the employees in the organisation tend to fight among themselves. Decision-making in the organisation has been disrupted in this scenario. Thereafter, non-productive acts can be reflected among the employees in the organisation. Boycotts and strikes are examples of confrontation crisis. In this scenario, employees tend to disobey their superiors.

On the other hand, they can force their demands over the employees and that can cause confrontation crisis in the entity. Ineffective communication can result in an internal dispute. In this situation, the entity can introduce effective communication to resolve issues. Unity in decision-making can be depicted in this situation (Wang and Dong, 2017). Crisis of malevolence is the method of wrongful deeds of the employees to force action over the superiors. It can be regarded as a criminal activity. Employees can kidnap the officials of the organisation for the demand of money or promotion. It can be resolved in accordance with the communication and monitoring the employees. However, it is difficult for the superiors to understand the psychological aspects of the employees in the organisation. Crisis of organisational misdeeds refers to the wrongful decision-making of the management of an organisation that can affect the stakeholders along with the external parties of the entity. In this context, after the effects of a decision are being ignored by the superiors of the organisation.

Inclusion of the employees in the decision-making of the entity can be depicted as a strategy for the eradication of the issue related to organisational misdeeds. Crisis due to workplace violence can affect all of the employees in the organisation. Employees of Ryanair can involve in violent acts and that can cause workplace violence. On the contrary, proper monitoring of the employees and their demands in the organisation can reduce the chances of occurring these crisis. Bankruptcy can be denoted as a crisis where the entity will be failed to pay the due money to creditors (Min and Choi, 2017). It can be eradicated with the proper management of finance of the organisation. However, faults of the employees and finance cannot easily be detected by the superiors in the organisation. Smoldering crisis can be stated as issues that are being ignored by the management due to its minority. However, it can cause major effects to the organisation and that cannot be resolved by the management at that scenario.

Define various response strategies

The customers in accordance with a preferred of their flight fare have rated Ryanair the worst airline. Customers have reflected that the organisation is suffering from communication issues with customers during their refund of flight fare. Covid-19 has been the reason for the reduction in the quality of communication in the organisation (Kokpan, 2020). A large number of light have been cancel during the outbreak of covid-19. As the organisation has been facing issues with their expenses hence The Organisation was unable to repay the amount provided by the customers for booking of their flights.  Ryanair has the policy of refunding the money within 7 days after a cancellation (irishtimes.com, 2021). However, the organisation has not replied to the customers who have cancelled their booking during the outbreak of covid-19. Some of the customers have stated that they have to wait for 3 months to get the refund of their money (irishtimes.com, 2021). In this scenario, Ryanair has not replied anything to the customers in accordance with their refund. That is how customers have rated Ryanair as the worst Airlines in the global economy. the legal time frame for the returning of the money was 7 days however our customers of Ryanair have replied that no one has received the payment within this time frame.

In this scenario, Ryanair has refused to pay the refunds to the customers in case of the flights that are still operating during Corona outbreak. In accordance with national lockdown rules, customers were not able to travel during this period. Thereafter it has created the satisfaction among the customers of the organisation as well. in this scenario the customers have asked for the refund as they were not capable of travelling during this period due to National lockdown rules. However, Ryanair has not communicated with the customers regarding their issues and that has created the satisfaction among these customers.

Ryanair has rated the worst Airlines joint hence the organisation has adopted strategies to mitigate this crisis as soon as possible.  Ryanair has included more number of staff for the refund process and eliminates backlog. The organisation has been capable of clearing the difference of the customers during March 2020 due to the help of these additional number of staff (businesstraveller.com, 2021).  They have been capable of processing the reforms of the other customers of April within June. The organisation has been able to process all the refunds of June within July 2020 (businesstraveller.com, 2021). Besides that, the organisation has provided cash refunds to the customers in accordance with UK Civil Aviation Authority (businesstraveller.com, 2021). Thereafter the organisation has been able to maintain the legislation of the economy. Besides that, it has been able to improve customer satisfaction with the help of cash refunds. The organisation has decided to adopt screen scraping.  The travel agent has been asked to provide the details of unauthorised booking hence the organisation will be able to process the refunds.

Ryanair has not been capable of improving their ratings among the customers as the entity was not able to provide a refund within the specified time of 7 days. The organisation has not communicated clearly with the customers and that is how they have to wait for 3 months to get a refund. This has created continuous dissatisfaction among the customers (Keše?ová et al., 2020). Providing cash refunds has helped to maintain the dignity and loyalty of Ryanair. However, the organisation has not been able to satisfy customers due to their late processing of refunds.

Apply theoretical models to a case study

Situational crisis communication theory (SCCT)

In accordance with SCCT, crisis in the economy or an organisation can be managed effectively. Crisis can create a negative impact on the business organisation and its stakeholders. Interaction among the stakeholders can be disrupted in accordance with the crisis occurred in the entity. The theory suggests that the organisation tends to search for attributes and reasons for the continuous issues affecting the organisation (Kriyantono and McKenna, 2019). Causes for the negative events can be researched and analysed with respect to the help of SCCT. Ryanair has been facing the issue of refunding to the customers after Covid-19. The organisation has encountered the crisis of refunding toe the customers as they have not been capable of obtaining enough receipts for their expenses. On the other hand, the entity has decided to hold refunds for the flights that have continued to operate in the economy.

SCCT theory can help to identify the crisis faced by Ryanair and help to resolve the issues. Victim, accident and intentional are the three clusters of crisis that can be detected with the help of SCCT. Customers of Ryanair have been victims of the organisation, as they have not been provided with refunds. In addition to that, lack of refund processes after Covid-19 has been the accident. Intentional method refers to the process where an organisation knowingly takes risks. In case of Ryanair, the organisation has adopted the strategy not to refund to the customers within seven days. It has affected the brand reputation of the organisation in these situations as well.

Conclusion

The study has analysed the different types of crisis such as natural, technological and misdeeds. It can affect the financial resources of the organisation. On the other hand, the organisation can encounter issues related to reduction in brand reputation. Customer dissatisfaction has been reflected among the customers Ryanair due to the issue of delaying in refunds after Corona outbreak.

Reference List

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irishtimes.com 2021. ryanair-rated-joint-worst-airline-at-dealing-with-refunds-in-2020 [Online] Available at: https://www.irishtimes.com/life-and-style/travel/ryanair-rated-joint-worst-airline-at-dealing-with-refunds-in-2020-1.4457184#:~:text=survey&text=Ryanair%20has%20been%20rated%20 [Accessed: 4 February 2021].

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