It is definite that crisis occurs in one time or another in organizations but the most important thing is how an organization is prepared to deal with a crisis whenever it occurs. At some time, scandals occur that potentially ruin the organization’s reputation and image. Therefore, an organization cannot prevent itself from crises but can develop strategies of addressing crises amicably as they occur before they ruin their image and reputation. The effectiveness of an organization is evaluated from its crisis management capacity. Effective crisis management determines the continuous survival of an organization and prevents its immediate closure (Sullivan 2003).

  1. What is a crisis? What types of crises might affect an organisation?


A crisis, according to Kuzmanova (2016), is defined differently but the most considered definition is a significant threat posed to the operations of an organization that can have adverse consequences of not properly and efficiently handled. Based on this definition, a crisis is an event that poses an organization to unfavourable attention from the external groups like shareholders, environmental pressure groups, politicians, and trade unionists as well as the media who have interests on the actions of the organization. There are different types of crisis that may affect an organization such as natural disaster, workplace violence, confrontational crisis, technological crisis, rumours, and organizational misdeeds among others (Hough & Spillan 2005).



Part A

1. What is a crisis? What types of crises might affect an organisation?
2. How can/should organisations respond to a crisis?
3. Discuss the impact of and importance of social media and online communication during
a crisis.

Part B

At the negotiation table, what’s the best way to uncover your negotiation counterpart’s hidden
interests? Ask questions, then listen carefully. Even if you’ve decided to make the first offer and
are ready with a number of alternatives, always open by asking and listening to assess interests.
Note that if your style of listening isn’t sufficiently empathetic, it won’t elicit honest responses.
Furthermore, you’ll have to ask a lot of questions to get a clear picture of someone’s interests. And
to model the type of response you’re seeking, you must be willing to reveal your own interests.
Practitioners often assume that exposing their interests will give the other side an unfair advantage,
but this is rarely true.
If your efforts to uncover the other party’s interests fail, try a new tack. Suppose that you’re a
lawyer negotiating with a potential client on behalf of your firm. You ask, “Are you more
concerned about the cost or the quality of our services?” His reply: “Both!”
You might then inquire, “Would you like us to assign our most senior attorney to your account?
Her hourly rate is a bit higher than anyone else’s, but she’s one of the best in the field.” The client’s
response will reveal whether he’s more concerned about price or quality.
Here’s another way to probe the same person’s interests: “Other clients have raved about the
incredible devotion of our junior associates – and we only hire the best – to their cases. Giving
them a prominent role would allow us to give you a lower hourly rate. Would you like to talk to
some of the clients who have benefitted from this approach?”
Sometimes negotiators snag on an underlying value difference.
When this happens, bridge the gap by identifying overarching values that could provide a
motivation to work together. Suppose that a community organization is challenging your company,
a manufacturer, to pay more attention to the health concerns of local residents. Rather than arguing
that your company has to stay focused on the bottom line, point out that you share the neighbors’
commitment to environmental improvement. Then consider proposing an effort to replace aging,
polluting equipment with more efficient production technologies that save your firm money in the
long run while simultaneously reducing the community’s health risk. Such value-creating
opportunities can be uncovered by searching for a common interest, such as commitment to

environmental improvement, rather than letting the differences that exist between you dominate the
1. Which negotiation approach is being described in the article above?
2. Describe the differences between Distributive and Integrative Bargaining.
3. What effect does framing have on negotiations?

Part C – Case Study

The Australian – Japanese Sugar Negotiations

In the late 70s a famous misunderstanding between Australian sugar cane growers and Japanese
sugar refiners occurred. It rumbled on for years. Both parties were indignant and perplexed at the
other’s “bad behavior”, as they saw it. NEGOTIATION SKILLS ASSIGNMENT.
The Japanese refiners had signed a ten-year, long-term contract to buy Australian sugar at the then
market price, less $5 a ton. The Australians would get the security of a ten-year sales agreement.
The Japanese would get guaranteed supplies at a competitive price vis-à-vis other refiners.
Everyone seemed happy and the deal was signed. NEGOTIATION SKILLS ASSIGNMENT.
Hardly was the ink dry on the paper than the price of sugar on world markets crashed by $10 a ton.
The Japanese refiners faced the prospect of paying more for their raw sugar than anyone else, a cost
that would fatally impact on the price of refined sugar and everything made from it.
Up to this point, both cultures probably saw eye to eye. It had been a good deal but now
circumstances had changed and the Japanese refines faced genuine difficulties. The cultural split
occurred over what to do about this. The Japanese suggested to the Australians that the contract be
renegotiated. After all the Australians could not possibly wish their partners to lost money; mutual
satisfaction and lasting relationships were surely the ideal.
The Australians pointed out that a contract was a contract. The Japanese had given their work.
Fluctuations in the world price of sugar were not unusual. All business involved risks. Had the
price risen, not fallen, the Australian growers would have been the losers. You cannot go crying to
your partner every time the markets shift. NEGOTIATION SKILLS ASSIGNMENT.
1. What cultural factors have played a role in the negotiation process?
2. Why does each party believe the other is in the wrong?
3. What actions could be proposed for the conflict to be reconciled?…….