The paper 'Crisis Management Issues' is a great example of a Management Case Study. News Corporation is a media station that for years had played a profound role in modern society before it was closed down as it provided a lot of information to both public and private institutions. In their search for information however, the media house did engage in some unacceptable ways of gathering news. It was such a major embarrassment for the company that had been seen as a role model for many to be involved in such misconduct of having unethical ways of collecting information through phone hacking.
When such a company is involved in such illegal activities, it corrupts its image which is negatively affected not forgetting the trust that it had for the audience and various stakeholders of the company. News Corporation group which is based in London is not new to such practices that saw it been closed after some of its reporters were accused of giving improper reports and gaining access to information that was confidential by hacking people's phones and bribing police officers to carry out private investigations.
Information that was gotten by private means was published in tabloids and it is through these tabloids that there were revelations that some of News Corporation’ s information was gotten illegally in the year 2005 (Kenneally 2011). Due to several scandals that were proofed to be true, the organization was closed after 168 years of existence when it was found out that one of its tabloids was the center of a phone-hacking scheme. The report will start with an introduction of a brief history of the crisis and proceed to discuss the issues in the following format: The response strategies that were mostly used in News Corporation utilized to solve the conflict The communication strategy that was adopted in this conflict How messages varied in speakers and overtime The application of SCCT theory model in the response strategy Conclusion and recommendations Response strategies News Corporation adopted three postures in their approach to resolving conflict.
There was the denial posture where someone especially a manager denies the existence of any crisis has given an explanation of why there are no crises going on. Scapegoating is also another type of denial posture that people inside the organization blame someone else to having committed some crisis (Coombs 2007).
In the denial posture, the person who is accused to have engaged in a crisis refuses to have done the act hence blames someone or something else. In a report by Spillius and Blackde (2011), Mr. Rupert Murdoch denied allegations that had been set against the company claiming that he would not abide by the ‘ total lies’ made on behalf of his company on situations of phone hacking.
The management and journalists of News Corporation among them Rebecca Brooks, Anderson Coulson, and five other journalists were being accused of invading private information by hacking voicemails of over 600 people which saw them deny these allegations and claimed that they were false (Spillius and Blackde 2011). Rebuilding posture is what News Corporation adopted to be in control of the scandal that had emerged. Through this, there was compensation where there was the provision of money and many apologies made from the directors where they took responsibility for the occurrence of such an incident.
The management of the company apologized to the public for the negative image it had given them and representing the company, Mr. Murdoch regretted having made such a mistake (Bradshaw, Salamander and Stacey 2011). To show how serious the scandal had affected the organization, the company set July 16 and 17 aside to make apologies from Mr. Rupert the Executive chairman on behalf of the entire company (Kenneally 2011). An article in the Daily Mail Reporter named News of the World phone-hacking: company apologizes ‘ unreservedly ‘ and sets up ‘ victims ‘ compensation fund, said that the management claimed to have been involved in phone hacking and they found it their duty to compensate the victims with an amount of $670 million (BBC 2012).
ABC News 2012, Key players in News of the World scandal, ABC News, 16 May, Viewed 30 October, http://www.abc.net.au/news/2011-07-06/key-players-in-news-of-the-world-scandal/2784372
BBC 2012, James Murdoch declines $6m bonus over NoW controversy. 2 September, viewed 30 October 2012, http://www.bbc.co.uk/news/business-14770818
BBC News 2011b, Rebecca Brooks 'horrified' by Dowler phone hack claims, BBC News, 5 July, Viewed, 30 October, http://www.bbc.co.uk/news/uk-14033348
Bradshaw, T, Salamander, D & Stacey, K 2011, Hacking inquiry puts heat back on Murdoch, Financial Times, 6 September.
Coombs, W.T. 2007, protecting organization reputations during a crisis: The development and application of situational crisis communication theory. Corporate Reputation Review, Vol 10, No. 3, pp. 163-176.
Doctorow, C 2011, The phone-hacking scandal must not be used to rein in the press, The Guardian, 14 July
Guenthner, DH 2012, 'Emergency and crisis management: Critical incident stress management for first responders and business organizations’, Journal Of Business Continuity & Emergency Planning, 5, 4, pp. 298-315.
Hutchinson, S 2011, September 2009: Hacking at paper 'not widespread. 12 July, viewed 30 October 2012, http://www.bbc.co.uk/news/uk-14124271.
Kenneally, T 2011, The 'News of the World' Phone-Hacking Scandal: A Timeline of Tabloid Espionage, The Wrap, 6 October, viewed 30 October 2012, http://www.thewrap.com/media/article/news-world-phone-hacking-scandal-timeline-tabloid-espionage-28886.
Spillius, A & Blackde, R 2011, Phone hacking: Rupert Murdoch claims 'minor mistakes' have been made, The Telegraph, viewed 30 October 2012 http://www.telegraph.co.uk/news/uknews/phone-hacking/8639270/Phone-hacking-Rupert-Murdoch-claims-minor-mistakes-have-been-made.html. 15 Jul 2011