1/2/2023 MODULE 4 ISSUES MANAGEMENT IN AN ORGANISATION ‘TYPES OF ISSUES 0) Universal issues: have serious and forthcoming effects on a large number of people. Eg. energy crisis b) Advocacy issues: potential problems foremost of the population that are identified by groups claiming to represent the broad public interest. Scope of problem suggests government intervention. Example Health insurance reform ‘A: CONCEPT OF ISSUES MANAGEMENT + Issues refers to a trend or condition either internal or external which will if continued affect @ company's operations over the period of its business plan. + May present either threat or opportunity to corporation. * Results from difference between expectations of corporation and its publics, Contin. ) Selective issues: affect special interest of group. Eg. Medical aid reimbursement that results in cost shifting. d) Technical issues: of little direct interest to the population and are left to experts. Eg. Hazardous waste disposal. Cont... + For instance providing discounts or price breaks outside of the usual company policies and practices and other unfair practices are prime examples of possible business issues ‘B= Common categories of ssuesin Organizations 1. Board operations Low attendance at meetings ~Low participation in meetings — High turnover of Board members = No, or poor, decision making Conflict among Board members -Micromanagement of day-to-day activitiesCont. Lack of clear focus for the organization and for making major decisions Frequent, conflicting suggestions from Board and/or employees Continual shortage of funds across the organization = Conflict among Board members and employees about priorities, roles and responsibilities Cont. 4, Employee development Frequent turnover Frequent complaints and conflict Poor performance Compliance (“going through motions”) on the job Cont. 2, Strategic planning Lack of clear focus for the organization and for making major decisions Frequent, conflicting suggestions from Board and/or employees Continual shortage of funds across the Conflict among Board members and Cont... 5, Teamwork = Conflict between team members =Inefficiencies in activities High turnover of members Confusion about decision making and problem solving Poor performance among members = Ineffective meetings ‘employees about priorities, roles and ~ Low morale responsibilities Cont.. Contin 3, Business planning =Lack of clear goals and outcomes with products and services Shortage of resources for products and services =Uttle or no results from products and services Frequent complaints from employees who deliver products and services, =Conflict and turnover among employees who deliver products and services 6. Financial management Shortage of resources for products and services Lack of understanding of costs of various resources Bills continually not paid on time Problems reported by annual financial audits ‘Numerous requests for funds from investors —Frequent refusals from investors1/2/2023 Cont. 7. Advertising and promotions little or no available feedback from customers Strong testimonials and results from customers, yet little growth in products and services Confusion among customers about features and benefits of products and services “Lack of resources to obtain, develop and deliver products and services Cont. + An issue is a point or matter in question or in dispute, or a point or matter that is not settled and is under discussion or over which there are opposing views or disagreements. Often project issues are first identified as a risk and through the risk management planning process may already have a planned approach to managing the issue. Cont... 8. Evaluations of products and services Confusion among employees about products and services Inability to successfully describe products and services to others Poor results from products and services Frequent complaints and conflicts among employees who deliver products and services Ineffective advertising and promotions ISSUES VS CRISIS + Tony Jacques, a well-known crisis and issues management expert. and author, has identified eight key differentiators between crisis and issues management: + Choice —Crisis: Fewer options and the choices continue to decrease asthe crisis continues Issue: More time to explore all possible choices, weigh pros and cons and make sna 27 informed decision Cont. + There is often confusion between Cris Issue Management and how the activities of each interface and interact with each other. + Issue management is a normal executive activity, done according to schedule in office hours while business continues. A crisis, by definition, is outside normal experience, it causes top executives to drop all other priorities, and it may severely disrupt continuity ofthe organization's core business. and Contes. * Certainty Crisis: Need to make decisions without knowingaall the facts Issue: Time to thoroughly research, gather and analyze information * Urgency Crisis: Under pressure to make a decision onthe spot Issue: Time to fully assess and make the vow best decision1/2/2023 Cont... + Cost Crisis: Cost is no object when trying to save the business Issue: Can evaluate options and choose the most cost-effective plan of action * Continuity Crisis: Dally activity is consumed by the crisis, which could disrupt business “Issue: Managed during regular office hours and itis business as usual Cont. sin general, all_organizations/ projects, regardless of type or size » should have an issue tracking system or log where issues are regularly managed and monitored on a regular basis. Contin. + Time Crisis: All crises eventually come to an end, but financial and reputational impacts could linger Issue: Issues can extend for months, year or decades + Impact “Crisis: Possible threats to_health, property, environment ec Issue: Possible threats to market share, _ financials and reputation B: SCANNING OF ISSUES IN BUSINESS ENVIRONMENT + Environmental scanning refers to the study of the information gathering practices in order to; 1) reduce the randomness of information flowing into the organization and 2) provide early warnings for managers of changing external conditions. Cont. + Outcome Crisis: Minimize damage to the business and help it survive Issue: Work toward positive outcome by Identifying and addressing issues early + So organization/ project issue management includes utilizing the outputs from the project risk management planning if the Issue was identified as a risk during the risk planning processes. i) INTERNAL ENVIRONMENT * Internal environment refers to the controllable factors internal to the firm i.e., factors existing within a business firm. £g. Organization culture, vision and mission, management structure, power structure, human_resources, company image and brand equityii) EXTERNAL ENVIRONMENT * External environment refers to external aspects of the surroundings of business enterprise, which have influence on the functioning of business. There are two types of external environment namely Micro CAtbccmie condtions eter tothe Fremnt state ofthe economy in 2 Cony orreion. £9 cons domestic product, the higher the GOP the batter the business envionment and per capt income the higher the pe ata Income th beter the business enionment and Macro environment. Reiuee eal —Avatobilty of copital, lack of capital deteriorates business acthities and vice — : wemiversa 2 MICRO ENVIRONMENT Cont... ‘The — micro environment/ Task environment consists of the factors in the company’s immediate environment that affects the performance and working of the company. It includes the following; = curomers, ~ Employees = snpties = sareolsre Metis ome Competitors A IMarkets for goods and services, plenty availability of markets act as a stimulant for business firms to increase production and vice versa =Infiation, moderate inflation rate promotes business activities and vice versa Growth of foreign trade, this expands the size of market for local businesses MACRO ENVIRONMENT * Macro environment. Uncontrollable factors that influences an organization’s decision-making, strategies and performance. These include the following: * The economic environment: economic condition & policy. Coni Strength of financial market, a well functioning of stock market e.g, DSE promotes business activities and vice versa, Exchange rate, It has become a major concern for companies doing business Internationally. Changes inthe exchange rate can have major Implications for profitability of sem international operations .1/2/2023 Cont. + Economic Policies: Economic policy is a course of action that is intended to influence or control the behavior of the economy. Eg; + Industrial Policy + Fiscal policy(ie tax) + Monetary policyfi.e interest rate) + Foreign investment policy and + Export-Import policy (Exim policy) C: SCANNING OF ISSUES IN HUMAN RESOURCE «An effective manager usually knows when to address a problem and when to let a smaller issue go. Some human resources issues are beyond the scope of ‘one's supervisory or managerial duties. + How each business deals with its specific human resources issues depends on the HR manager or director as well as we * company policy. * Cont... Cont. 2. Social Environment: The social environment of business includes social factors like customs, traditions, values, beliefs, poverty, literacy, life expectancy rate etc. 3. Political environment: The political system prevailing in a country can promotes or discourages the business activities. + Human resources (HR) issues commonly experienced by employers include establishing productivity, recruiting employees, arranging and carrying out training, and preventing discrimination. + Workers in personnel management also face challenges such as resolving conflicts and keeping workers safe. Cont... Sqechnological Environment: The progress of business depends on the level of technology available in a country. . Demographic Environment: the size and density of population with direct bearing on the demand for various goods and services. Cont. Establishing and distributing benefits, encouraging and maintaining diversity, and| handling outsourcing are major concerns as well. How each business deals with its specific human resources issues depends on the HR| manager or director as well as company| policy. No matter what approach a business takes, addressing these issues usually is an ‘ongoing process.3/2/2023 ) Productivity + Maintaining employee productivity and morale can be difficult when human resources issues are not addressed, or when they are handled inappropriately. + HR personnel, therefore, think very critically about the number of people per shift, team assignments, motivational offers like bonuses, and keeping morale high. iv) Discrimination «Businesses look to their HR departments to build diversity into the workplace, as those in personnel management generally are responsible for company recruitment, hiring, promotion, and termination. ii) Recruitment Companies sometimes need to offer more in terms of benefit packages or incentives, as well, because people increasingly look for jobs that reduce -y) Conflict Resolution + Ignoring some issues might lead to allegations of discrimination and unwanted publicity, loss of time, and loss of revenue resulting from lawsuits. + Investigating complaints of verbal or +The HR department determines how training sessions and seminars factor into the company calendar and budget. *S0 coordinating with third parties involved in the training is also necessary, in some instances. their risks unstable economic situations physical harassment is common, but other conflicts like broken promises from managers and stolen property also occur. iii) Training vi) Safety * Workers often use equipment that but if not properly used, can result in accidents or health problems. Even something like a desk that is not ergonomically positioned can be a potential injury source. + The HR department has to take this into account when it organizes workers. It also investigates allegations of unsafe equipment or managerial direction.1/2/2023 vii) Benefits + Common employee benefits include health insurance, life insurance, a dental plan, and employee product discounts ‘When employees are terminated, their benefits usually are too, so HR must keep records of the exact hiring and termination dates of each employee. Issues Management process + Issues are “unsettled matters which are ready for decision” that influenced the organization's operating environment + The diagram below depicts the issues management process through Jones ‘and Chase Systems Model (Jones & Chase, 1979). Vili) Outsourcing * Outsourcing refers to companies giving work to independent contractors outside the company rather than to in-house employees. + So HR department must make a clear scanning about that. Tsoves Management Process The Chase= eines Model ISSUE MANAGEMENT * Issues management is the process by which an organization tries to anticipate emerging issues and respond on them before they get out of hand. OR + Issue management is the process of identifying and resolving issues. * Using this Issue Management Process, organization can identify and resolve issues quickly, before they have an undesirable impact. 1. Issue Identification: Search for emerging or existing issues and identification of a list of potential issues. ~2. Issue Analysis: Understand how issue might impact the organization and make final prioritization.1/2/2023 3. Policy/ Issue Change Strategy Option: Organization choose one of issue change strategy options (eg reactive or proactive strategy). 4. Program design (Issue Action Program):This involves. the communication of the organization's position on the issue to the relevant constituencies. PROACHES OF HANDLING ISSUES IN AN ORGANIZATION The following eight approaches are recommended best practices for issue handling: i. Escalation Process — Raising awareness of the context to the right people in order to resolve 2 challenging situation. Occurs when staff can’t resolve the issue and uthorit wires assistance ff 5, Results /Evaluation: Compare actual outcome to the desired outcome. Industries often use self-regulation to prevent government regulation. Cont. 4. Documentation ~ All issues, regardless ‘of how minor they seem, should be centrally documented using some type of issue tracking system or log. Minimum Requirements - Tools used to manage issues should contain (at minimum) 2 unique identification number, priority, Issue description, impact summary, action steps, current status, and issue owner. UNCTIONS OF ISSUES MANAGEMENT * Sharpening planning for responsible adapting the organization + Knowing and exceeding standards * Monitoring issues * Communicating to build beneficial relationships Contre iv, Resolution Statement: Issues should be stated in such a way that it is clear how they can be resolved. v. Prioritization- Issues should be prioritized, assigned specific owners, with next steps and due dates documented. Issue ownership should be communicated clearly to those responsible for action items.Cont. Vi 80/20 Rule- asserts that 803 of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. vii. Regular Review- Regular review of issues and the issue log is a highly fecommended practice. The review process should occur daily for complex projects and at least weekly for simple projects. Cont. Speed up marketing with product and services relevant to unmet demand or expressed concerns Reduction of communication noise in the marketplace that can impede efficient and competitive organizational performance Cont.. vi . Issue History- Closed issues should remain in the issue log as a historical record and to facilitate lessons learned activities. Cont... Destruction of barriers to market entry and operational constraints Create socially management Reality check for response-able internal perceptions and plans versus external realities, offering a filter for the — organization's strategic initiatives G: IMPORTANCE OF HANDLING ISSUES IN AN ORGANIZATION + Issue handling creates value and benefits ‘across 2 broad spectrum, externally and internally. + Externally: Improves stakeholder relationships and dialog of mutuality that avoids or mitigates conflict and leads to win/win resolutions that account for the positions and goals of all_members in the stakeholder ecosystem Cont... + Internally: Enterprise-wide _(boundary-spanning) management and synergistic, efficient resource allocation Key issues.. Contact lists for all internal and external stakeholders. ~An outline for Executive Managers and their alternates to react on a consistent basis to a potential or existing crisis.1/2/2023 Key Issue inn ation and establishment of a Management/Emergency Operations Command Center for directing the crisis event + The logistical details for notification ‘and mobilization of the Crisis Management Centers and supplies/equipment needed, Crisis planning proces: '=Step Two: Develop Crisis Management Team (CMT) Plans. The team set up a flexible structure in a coordinated manner, Step 3: Establish Guidelines for Gathering Information and Internal Investigations. The CMT should be prepared to initiate the investigation, determine the facts, potential liability and available defenses. Key IssUeS.oom Guidelines for communicating to the public and the media (authorization). Guidelines for Social Media usage to manage the situation. Crisis planning proces: + Step Four: Provide Periodic Crisis Training Evaluation. This help to address legal issues before they occur and develop investigation procedures. + Step Five: Develop Guidelines for Crisis Communications. Guidelines for designated spokesperson covering the event. ** CRISIS PLANNING PROCESS *Major elements of _ effective management planning includes; * Step One: Create a Crisis Management Team and Assess Potential Crises. The CMT team can include legal counsel, investigators, public relations personnel, investor relation’s personnel, risk ‘manager, financial personnel, marketing personnel, employee —_relation’s personnel, and technical personnel. “ CRISIS COMMUNICATIONS! PUBLIC OPINION IN A CRISIS * Crisis communication is a sub-specialty of the public relations profession that is designed to protect and defend an individual, company, or organization facing a public challenge to its reputation.continue Crisis communication tactics at each stage * Crisis communication tacties during the pre- «rsis stage may include the following: a) researching and collecting information about crisis risks specific to the ‘organization; b) creating a crisis management plan that includes making decisions ahead of time about who will handle specific aspects of acrisisif and when it occurs; Continues. * Crisis communication tactics during the post- crisis stage may include the followin a) reviewing and dissecting the successes and fallures of the crisis management team in order to make any necessary changes to the organizatio employees, practices, or procedures; and b) providing follow-up crisis messages as necessary 3/2/2023 Continue ne ©) preparing press release templates for the ‘organization's public relations team in the event of crisis; and 4) the chain of command that all employees will follow in the dissemination of information to all publics during a crisis situation A rapid response crisis communications teem should be organized during the pre-crisis stage and all individuals who wil help with the actual crisis ‘communication response should be trained, ** ROLES OF EMPLOYEES IN CRISIS COMMUNICATION + Employees must be serious about their ‘own work. Review their performance regularly, Don’t always wait for their boss to ask for reports. They have to be their own critic and striving hard to achieve their targets within the desired time frame. * One should not take things lightly. Once a crisis is being detected, employees must immediately jump into action * Crisis communication tactics during the crisis stage may include the following: 2) the identification of the incident as a crisis by the organization's crisis management team; ') the collection and processing of pertinent information to the crisis management team for decision making; and ) also the dissemination of crisis messages to both internal and external publics of the soa Banization Roles of employees... ‘tis essential for the employees to respect their organization. One should maintain the {00d behavior ofthe organization. Avold spreading fake information. Don't spread baseless rumors about the product and organization, Encourage effective communication during emergency situations Employees must rely on accurate information, Mere assumptions and guess works create Br Oblems and misunderstandings later1/2/2023 ** ROLES OF MANAGEMENT (LEADERS) IN CRISIS COMMUNICATION Organizations management have to react in different ways to a crisis. They may respond * Stating that the accusations against them are false and providing evidence to show this, * Denying that the crisis exists + One should lead from the front. Show confidence and steadiness. Take complete charge of the situation, Continue... + Acknowledging that a problem has ‘occurred and explaining what they are doing to put it right. * Acknowledging that a problem has occurred, but stating that it is not significant to the larger scheme of things, e.g. one unhappy customer but many more happy ones + Apologizing for an incident, accepting blame and explaining what will be done to putt right. Continue... + Managers should have full control on the employees. They should know what is happening around. Any issue neglected in the initial stage might be a major concern later, Problems must be attended immediately +The leaders should interact with the employees more often. Let them feel that the company is there for them. Impart necessary crisis management trainings to the employees. ** MODEL OF CRISIS MANAGEMENT + Successfully diffusing a crisis requires an understanding of how to handle a crisis before it occurs. + Gonzalez-Herrero and Pratt proposed 2 Crisis. Management Model which identified three different stages of crisis ‘management. 1, Diagnosis of Crisis: The first stage involves detecting the early indicators of crisis. Continue... + Planning is essential to avoid emergency situations, Learn to take quick decisions. ‘Make sure everyone at the workplace is well informed about emergency situations. + Identify the important processes and systems which should keep functioning for the smooth running of the organization. Develop alternate plans With correct and accurate information. Cont. + It is for the leaders and managers to sense the warning signals of a crisis and prepare the employees to face the same with courage and determination. + Superiors must review the performance of their subordinates from time to time to know what they are up to, + Monitoring the performance of the employee regularly helps the managers to foresee crisis and warn the employees against the negative consequences of the same.1/2/2023 Cont. 2, Planning: Once a crisis is being detected, crisis management team must immediately jump into action. Devise relevant strategies to avoid an emergency situation. sit and discuss with the related members to come out with a solution which would work best at the times of crisis. It is essential to take quick decisions and employee have not to rely on mere guess works and assumptions. Cont. * Diffusion of innovation Theory: Diffusion of innovation theory proposed by Everett Rogers, supports the sharing of Information during emergency situations. As the name suggests during crisis each employee should think out of the box and come out with something Innovative to overcome tough times. One should be ready with an alternate plan, Once an employee comes up with an innovative Idea, have to spread the idea amongst all employees and departments. Cont. }. Adjusting to Changes: Employees must adjust well to new situations and changes for effective functioning of organization in near future. + It is important to analyze the causes which led to a crisis at the workplace. Mistakes should not be repeated and new plans and processes must be incorporated in the system. Cont. Unequal Human Capital Theory: ‘According to unequal human capital theory, inequality amongst employees leads to crisis at the workplace. + Discrimination on the grounds of caste, job profile as well as salary lead to frustrated employees who eventually play with the brand name, spread baseless rumors and earn a bad name for the organization. ** THEORIES FOR EFFECTIVE, EFFICIENT COMMUNICATION FOR CRISIS MGT TEAM + Structural Functions Systems Theory: ‘According to. structural. functions systems theory, Correct flow of information across all hierarchies is essential. Transparency must be maintained at all levels. Management must effectively communicate with employees and provide them the necessary information at the times of crisis. Superiors must be in regular touch with subordinates. Leaders must take charge and ask the employees to give their best. ** ELEMENT THAT CAN HAMPER CRISIS MANAGEMENT EFFORT + Effective crisis management requires four basic elements. If these aren’t in place, the company will likely stumble right at the beginning of a crisis, and will likely make critical errors in the initial response and recovery efforts.oo Cont. + These four critical elements are often Important in company crisis management: Clearly identified team roles and responsibilities =A formal incident assessment team and process Effective Incident Action Planning (IAP) skills Effective crisis. management team Cont + Although some weaknesses may be more obvious like; -Failure to adequately collect information or data and to plan around it. failure to establish a command hierarchy or structure. inability to clearly designate team vam OF organizational responsibilities. Contneneee to effectively communicate with —_ outside community members. Failure to consistently update and practice contingency plans. Failure to make crisis information easily understandable, accessible, and implementable. 10