The possibility of crisis in an organisation cannot be ruled out, as crisis is a part of organisation’s existence. However, an organisation’s ability to manage crisis when they occur will go a long way to determine whether the organisation will continue to exist, maintain its reputation, as well as stakeholder trust. This paper examines crisis management and response strategies with regards to brain drain (also known as “Japa” phenomenon) in Guaranty Trust Bank (GTBank). GTBank is one of Nigeria’s foremost banks in Nigeria, with several branches across Africa and beyond known for its innovation and application of technology to provide top notch banking services. This research employs the Situational Crisis Communication Theory (SCCT) as well as the Stakeholder Theory to explore how GTBank was able to handle the crisis caused by the mass exit of its highly skilled workforce. The research utilized the qualitative method, sourcing secondary data from literature, company reports as well as other credible media sources to evaluate GTBank’s strategies for mitigating reputational damage and maintaining stakeholder confidence. From the findings, it was revealed that GTBank utilized stakeholder engagement, effective crisis communication, and adaptive HR policies. The study concludes that by integrating strategic employee engagement, transparent communication, and stakeholder management.
Table of Contents
- Abstract
- 1.0 Introduction
- 2.0 Literature Review
- 2.1 Situational Crisis Communication Theory (SCCT)
- 2.2 Stakeholder Theory
- 2.3 Mitigating Reputational Damage
- 3.0 Methodology
- 3.1 Research Design
- 3.2 Data Sources
- 3.3 Data Analysis
- 3.4 Justification of Methodology
- 4.0 Findings and Discussion
- 5.0 Conclusion
- References
Objective & Thematic Focus
This paper comprehensively examines crisis management and response strategies, particularly focusing on the "Japa" brain drain phenomenon within Guaranty Trust Bank (GTBank). The primary objective is to explore how GTBank effectively managed the crisis stemming from the mass exit of its highly skilled workforce, mitigating reputational damage, and maintaining stakeholder confidence.
- Crisis Management and Response Strategies
- The "Japa" Brain Drain Phenomenon in Nigeria
- Mitigation of Reputational Damage
- Maintenance of Stakeholder Confidence
- Application of Situational Crisis Communication Theory (SCCT)
- Application of Stakeholder Theory
Excerpt from the Book
2.1 Situational Crisis Communication Theory (SCCT)
The Situational Crisis Communication Theory (SCCT), this theory was propounded by William Timothy Coombs in the year 2007, to guide organizations to respond to crises situation based on the nature of the occurrence and perceived responsibility. Coombs (2007) opines that crisis communication is more effective when the response provided by an organization matches the type of crisis that has occurred and how much stakeholders think the organization is to blame.
According to Coombs (2007), the SCCT identifies three broad crisis which are namely victim, accidental, and preventable.
i. The victim cluster Organization itself is perceived to be the victim of a circumstances which is an act of God or generally uncontrollable. These are occurrences such as natural disasters, malicious rumours, or external attacks. When such events occur, the organization is absorbed of blame as they are not responsible for the crisis.
ii. The accidental cluster – In this cluster, crises do not occur intentionally. They happen due to technical failures, system downtime, or even human error. In this cluster, the organization may share responsibility in the cause of the crisis. Occurrences in this cluster are perceived as unintentional, an error rather than deliberate misdeed.
iii. The preventable cluster – The organisation is certainly at fault as crises arises from organizational negligence, ethical lapses, or poor managerial decisions.
For the SCCT to be effective, communication strategies must be tailored for the clusters depending on the cluster in which the crisis has been assessed to fall under. In the victim cluster denial or bolstering may be used. In the accidental cluster diminishment strategies may be adopted. Lastly, in the preventable cluster, it will be required that apologies, finding sustainable solution, and transparency to restore trust and reputation strategies may be adopted.
Summary of Chapters
Abstract: This section introduces the study, outlining its focus on crisis management in GTBank concerning the "Japa" brain drain, employing SCCT and Stakeholder Theory, and detailing the qualitative methodology and findings on GTBank's strategies.
1.0 Introduction: This chapter describes the Volatile, Uncertain, Complex, and Ambiguous (VUCA) environment businesses operate in, introduces the "Japa" phenomenon as a major human capital crisis in Nigeria, and explains its impact on GTBank, setting the stage for the research.
2.0 Literature Review: This section delves into the theoretical foundations of the study, presenting Situational Crisis Communication Theory (SCCT) and Stakeholder Theory as frameworks for analyzing GTBank's crisis response.
2.1 Situational Crisis Communication Theory (SCCT): This part elaborates on Coombs' SCCT, defining its purpose in guiding organizational crisis responses, identifying victim, accidental, and preventable crisis clusters, and outlining appropriate communication strategies for each.
2.2 Stakeholder Theory: This section introduces Freeman's Stakeholder Theory, highlighting the importance of balancing diverse stakeholder interests, ethical responsibility, and the stages of stakeholder engagement during a crisis.
2.3 Mitigating Reputational Damage: This chapter discusses how GTBank can apply both SCCT and Stakeholder Theory to effectively manage reputational risks arising from the "Japa" crisis through transparent communication, employee engagement, and ethical responsiveness.
3.0 Methodology: This section details the research approach, which is a qualitative case study focusing on GTBank, explains the secondary data sources utilized (reports, academic publications, media), and describes the thematic analysis method employed.
4.0 Findings and Discussion: This chapter presents the study's findings, revealing GTBank's challenges with talent retention due to "Japa," its initial reactive stance, and its evolution towards proactive, empathetic crisis management strategies aligned with SCCT and Stakeholder Theory.
5.0 Conclusion: This final chapter summarizes the severe impact of the "Japa" crisis on GTBank, emphasizing that effective crisis management requires transparent communication, accountability, empathy, and a multi-stakeholder approach to foster trust and adapt to the global labor landscape.
References: This section lists all academic and corporate sources cited throughout the paper.
Keywords
Crisis Management, Situational Crisis Communication Theory, Stakeholder Theory, Reputational Damage, GTBank, Japa, Brain Drain, Stakeholder Confidence, Nigeria, Organizational Crisis, Employee Retention, Communication Strategies, Human Capital, VUCA.
Frequently Asked Questions
What is this work fundamentally about?
This work fundamentally addresses crisis management and response strategies within organizations, specifically examining how Guaranty Trust Bank (GTBank) managed the "Japa" brain drain phenomenon and its impact on reputation and stakeholder confidence.
What are the central thematic areas?
The central thematic areas include crisis management, the "Japa" brain drain phenomenon, reputational damage mitigation, maintaining stakeholder confidence, and the application of Situational Crisis Communication Theory (SCCT) and Stakeholder Theory.
What is the primary objective or research question?
The primary objective is to explore how GTBank successfully handled the crisis caused by the mass exodus of its skilled workforce, aiming to understand its strategies for mitigating reputational damage and sustaining stakeholder confidence.
Which scientific method is used?
The study employs a qualitative case study approach, utilizing secondary data sources such as company reports, academic literature, and media publications, analyzed through thematic analysis.
What is covered in the main body?
The main body covers a literature review of Situational Crisis Communication Theory and Stakeholder Theory, the methodology used, findings on GTBank's crisis response and challenges, and a discussion of these findings.
Which keywords characterize the work?
Key terms characterizing the work are Crisis Management, Situational Crisis Communication Theory, Stakeholder Theory, Reputational Damage, GTBank, Japa, Brain Drain, and Stakeholder Confidence.
How does the "Japa" phenomenon impact Nigerian organizations, specifically GTBank?
The "Japa" phenomenon represents a major human capital crisis for Nigerian organizations like GTBank, leading to mass emigration of skilled professionals, which disrupts operations, causes loss of institutional knowledge, and raises concerns about reputational damage and sustainability.
What are the three main crisis clusters identified by the Situational Crisis Communication Theory (SCCT)?
According to Coombs (2007), the SCCT identifies three broad crisis clusters: victim (organization is not to blame), accidental (unintentional errors, shared responsibility), and preventable (organizational fault due to negligence or poor decisions).
Why is a stakeholder-focused approach critical for GTBank in managing the "Japa" crisis?
A stakeholder-focused approach, as advocated by Stakeholder Theory, is critical because the "Japa" crisis affects all stakeholder groups (employees, customers, investors, regulators). Engaging with these groups through empathy, transparency, and accountability is essential for preserving trust and ensuring long-term sustainability.
What strategies did GTBank adopt to address the crisis according to the findings?
GTBank initially reinforced perceptions of unfavorable working conditions but later refocused on transparent communication, introduced wellness programs, flexible work schedules, professional development initiatives, and embraced ethical leadership, empathy, and inclusivity to rebuild trust and address workforce challenges.
- Arbeit zitieren
- Clinton-Peters Ogomezie (Autor:in), 2025, Crisis Management And Response. Developing Strategies For Managing Crises And Maintaining Stakeholder Confidence, München, GRIN Verlag, https://www.grin.com/document/1669616
