Crisis Management In An Organization (A Case Study Of Anammco Plc Emene, Enugu State)

Project and Seminar Material for Business Administration and Management BAM

Crisis Management In An Organization (A Case Study Of Anammco Plc Emene, Enugu State)


Crises are inherent in any human enceinte and perform an integral part in any be managed. It generates problems between employees and the management, between groups in the organization and affects the society at large.

The researcher finds out the causes of crises and management of it in our case study Anammco Plc Emene Enugu chasing the working system, non-payment of wages and salary as at when due, non employees participation on matters affecting them, poor working conditions and management insensitive of employees welfare. These result to poor working morals, low productively on the part of the employees.

After analyzing the data collected from both secondary and primary, the researcher suggested or holds that crises can be reduced through two-way communication system, operative open door policy, ensuring good working condition. These preventive approaches were confirmed after testing the hypothesis.

The research methodology employed were questionnaire, collection of relevant textbooks, in all addition, statistical models – Chi-Square is used in calculating the sample size and testing of hypothesis.

It was recommended that management must be sincerely concerned with the welfare of employees, solicit and respect suggesting of employees and must realize that participatory management is the best approach to reduce crises and ensures obedient and higher productivity.

Chapter One


1.1 Background of the Study

Industrial / organizational crisis constitute a very important component of the industrial relations system. They can be seen as any disputes between employers and worker or between workers and workers, which is connected with the employment or terms of employment and deployment or terms of work. They involve the pursuit of incompatible on at least seemingly incompatible goods by two or more parties so that gains for one party result in loss for the other. Organizational crisis are usually more exciting to observers and so invariably attract greater attention and comment than peace. As a result in all countries, news papers contain more reports about labour disputes than labour harmony. Keller 1954 holds two views concerning industrial conflict or crises. The harmony. Relation view: holds that conflict is unavoidable and only occurs because of abnormality in a stable and well integrated organization which has restore a natural homoeostasis while the other realistic view: hold that crises is inherent in any human encounter. It performs an integral part in any dynamic social system and is necessary element of change. Dispute is the essence of industrial relations because the structural features of organization necessarily result in tensions among persons on different strata. The industrial relations system consists largely of maintaining a balance among these tensions in the interest of pressuring a going enterprise. Organizational crisis are of the most part normal and even necessary; They have both advantages and disadvantages for the enterprise, demands by worker forces management to search for efficiency or for new market in order to meet new demands. On the other hard, demand which impair the efficiency of the enterprise or result in an unacceptably higher costs to the customer, threaten the enterprise’s future. For the society as a whole workers demands have been an engine for social porgies brining shorter working how’s, longer holidays, better working conditions and many other improvements over the years. But the welfare of society also may be adversely affected by productivity where prices are forced up or efficiency excessively lowered and by the inflationary effects of increase in labour costs not covered by increase productivity. Although crises are an element in the maintenance of equilibrium in industries comes abnormal, dysfunctional or pathological. Examples include crises accompanied by pervasive violence and disputes which results in major economic and social disorganization of a community.

In the cost majority of industries, the sources of disputes are to be found in tensions innate to the industrial relations system. Studied have shown that where people work together in an enterprises many interests are to be found, some shared, some not. The employer wants the operations to be a successful as possible whether judged by profit, non –profit or other measures of efficiency. The needs to keep his labour costs reasonably commensurate with those of his inspires managers and supervisors, but in addition they have other interests of their own as also the employees. On the worker’s side their diverse interests maximizing wages and improving the condition under which they supply their labour, ensuring the securing of their job. Fair treatment from their managers, avoiding any unduly tough work place, belonging to congenial work groups and working in a sate and reasonably pleasant environment. In addition, all staff in the enterprise may have outside interests, which affect their life within it. For example, work may share common objectives with comrades elsewhere through their trade union or even under aims through political movements, which influences their conduct at work. Their interests may conflict with the achievement of enterprise goals set by management.

1.2 Statement of Problem

In view of the fact that an employee spends the greater part of the day in his place of work and most active vigorous part of his life as a workman, it is pf permanent importance’s that working conditions should be healthy, convenient and attractive, that the work itself should be as interesting as possible and that relations among the employees themselves and between employees and management should be cordial and co-operative and not confrontational. It is in this context that we should identify the necessary skills for the effective management of industrial /organizational crises. It is the contention of this research work that for management of industrial crises to be effective, management and workers union must be knowledgeable about the organizational process that impinge on the workers and must be able to diagnose the environment of employees. This can be achieving through the power of information. Information can be even more important than the traditional tangible resources because rational problem solving and influence by presentation are essential in a complex setting.

The control of scarce information by management on what motivates specific people, for instance, or on outcomes or processes related to organizational goals can enhance one’s problem salving ability. Thus, information is power. Curiously enough, although workers union have as their central concern the improvement of the working conditions of their members; but they do not take the workers interests and needs as the starting point of negotiation. Instead the conditions of service as laid down by management are the focal point: However, advances in the behavioral sciences have enabled us to know about the worker. It is they imperative for trade unions and management to have a good knowledge about the workers. Again, while workers and management are concerned about improving the condition of work which often are interpreted narrowly to include only salaries, wages and fringe benefits the quality of the actual works undertaken by a worker hardly ever features as an area of theorists and researchers on job design that some jobs are ultrasonically more satisfying than others. Workers a lineation has been found to stem from the nature of the jobs, jobs that the worker has no measure of control over the methods to be used, tend to repel to worker, lower his morale and reduce his performance.

1.3 Purpose of Study

The objective of the study generally is to secure the highest possible level of mutual understanding and good will between several interests which take part in the processes of an undertaking so as to maxi mix productivity for industry and real incomes for workers.

Summarily this study has the following as its objectives.

  1. Elimination /reduction of conflict /disputes situations among individuals in organizations.
  2. Creation of group harmony in the work community
  3. Provision of a warble work environment.
  4. Minimizing labour turnover
  5. Increasing the feeling of individual’s self worth.
  6. Freedom to express himself, recognition for the ability.
  7. Increase level of efficiency and productivity.

1.4 Scope of the Study

For the purpose of this study, we shall Focus primary on the intergruop types of organizational crises among the staff of our case study organization.

The scope of this cover the management and worker’s union crises and the strategies or steps in managing crises between this two groups with particular reference to Anammco Emene Plc Enugu.

1.5 Research Questions

  1. What are the causes of crises in the organization?
  2. What are the effects of these crises to the management, employees and the society eat large?
  3. How often do these organizational crises occur?
  4. Use in solving these crises?

1.6 Research Hypothesis

Based on the foregoing the research hypotheses are formulated as follows

Ho: Non-employees participation in decision-making does not result to organizational crisis.

Hi: Non- employees participial in decision making account for industrial crises.

Ho: Changes in operations or methods of doing works does not enhance industrial crises.

Hoi: Changes in operations or method of doing work enhances industrial crises.

1.7 Significance of the Study

The research topic management of industrial crises will help management; entrepreneurs to know various preventive crises approach, be confident and make policies that can reduce these crises which hinder the attainment of business mission.

Secondly Government will know how some of their decision gear industrial crises especially the issue of change without adequate notification, planning and use of diplomacy.

1.8 Limitation of the Study

During the process of this research, the researcher encountered some constraint, which hindered the collection of information.


The researcher wishers to state it clearly that the period under which this study is done is short especially when academic commitment such as writing of term papers, assignment, tests and above all the preparation for the HNDII final exanimations.


A research paper of this nature requires a lot of money, which is not readily available to a student like the researcher. The researcher is handicapped financially, and thereby cannot afford to make an intensive research.

Back of facilities also reduced the potentiality of this study. The researchers do not have easy access to books and previous studies by other authors based on this study.

Because of all the above limitations the researcher is then recommending that other researchers can make further investigations and improve on this study.

1.9 Definitions of Terms

Industrial Employees

Will include the whole web of workers under the employment of both service and manufacturing industries.


A condition of objectives incompatibility between valves or goals; as the behaviour of deliberately interfering with another goal achievement.

Industrial relations

Concerns human relations in the process of production.


The ability to get thing done through The Use of People.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to reiterate that the objective of this study was to examine how crisis can be managed in an organization.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in supporting the view the findings from the study.

5.2 Summary

Crisis as generally agreed is an integral part of the human society. It has its negative effects and also has positive outcome. The problem is not to hindered crisis from occurring but to prevent it and more so handle it responsibly if it arises and thus harness the positive outcome of crisis. Some have argued that crisis has no positive outcome, even the name denotes negativity. However, we should note that crisis does not appear suddenly but it’s an explosion of accumulated grief. The study focused on crisis management, it gave a background in the first chapter and reviewed other related and relevant literature in the second chapter. The third chapter dealt with the study’s methodology while the fourth chapter presented and analyzed the data collected.

5.3 Conclusion

As it has been discussed in detail and well understood that in the world today, which is very challenging and uncertain and the practice of strategic planning is the most reliable and efficient way to compete with these difficulties for all types of businesses. We discussed that strategic planning can contribute to the development of both operational capability and enhanced capacity to learn both during and after the crises. Theories of crisis management should expand their current boundaries to incorporate the strategic planning contribution. This study reveals that, organizations as a corporate body has a clear strategic plan to face and avoid the crisis when they occur, which is articulated to all of its employees at various levels and departments within the organization. It reveals that, the strong agreement of factors of various dimensions of strategic planning and crisis management indicate that, there is an existence of strategic planning exercise in crisis management and there is a strong relationship between strategic planning and crisis management on organizations adopted by employees of the bank and hence affects the banks performance positively.

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