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PUBLISHED DATE: - 11-12-2024
DOI: -
https://doi.org/10.37547/tajmei/Volume06Issue12-04
PRINCIPLES AND LEVELS OF MANAGEMENT
OF PR ACTIVITIES IN CRISIS SITUATIONS
Ergasheva Fotimakhon Ibragimovna
Associate Professor of the Department of “Economics,” PhD, Namangan Institute of Engineering
and Technology, Uzbekistan
INTRODUCTION
For the effective functioning of any socio-economic
system, two main conditions are necessary - its
functioning (activity) and development. The
functioning of the system is the continuity of
functions that determine the properties that
determine the integrity of the system. The
development of the system is the acquisition of a
new quality that helps to enhance its vital activity
in a changing environment. Activity and
development are interrelated and reflect the unity
of the main trends of the socio-economic system.
Functionality is, on the one hand, the force that
holds the development of the system and, at the
same time, its nutrient environment. Development
itself creates conditions for a more stable existence
of the system, disrupting many activity processes.
Thus, the emergence of a cyclical (cyclical)
development trend gives rise to a characteristic
feature consisting in the periodic onset of crises.
In the new millennium of world globalization, the
business sphere is becoming a global activity: it is
complex and dynamic. Each enterprise, like any
biological organism, grows, develops, ages and
faces many risks during its existence.
The instability of the socio-political situation in the
country often leads to failures in the work of large
and small enterprises, increasing the likelihood of
crises in one or another area of their activity.
The modern dictionary of concepts and terms
defines a crisis as “a difficult, difficult situation, an
acute shortage, a shortage of something; a period
of transition; a s
harp change.”
Practice shows that every enterprise sooner or
later faces risks. Crises are an integral part of our
lives, in which much cannot be predicted, and most
importantly, no one is immune from risks. Crisis
situations are the most complex and dramatic area
of PR-methods application.
In general, crisis situations can be managed, which
is confirmed not only by the experience of some
well-known companies, but also by the existence of
a special direction and the rapidly developing field
of PR practice.
RESEARCH ARTICLE
Open Access
Abstract
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Literature review
The crisis is currently affecting the activities of
many countries. At the same time, there are many
different views on the concept of crisis, revealing
some of its aspects. The relevance of studying this
concept is associated with its description of all the
relations and signs inherent in the crisis and the
formation of a single idea about it.
We believe that for a deeper understanding of the
concept of crisis, it is necessary to consider its
evolution. Translated from Greek, “crisis” me
ans
result, decision, turning point. Studies have shown
that the concept of crisis itself is multifaceted,
which indicates its widespread use in various
fields of scientific knowledge. The main
evolutionary stages of the term crisis are
presented in the table below.
Table 1
Evolution of the concept of “crisis”
Period
Identification
Scope
Description
Until the 17th
century
Turning point in the
course of the disease
Medicine
A turning point marked by
the disappearance of all
symptoms of the disease.
17th–19th
centuries
The urgency of the
situation
requires
an
immediate solution.
Social science
Reflects a negative character
(military, political conflict
situations, etc.).
End of the 19th
century, First half
of the 20th
century
One of the phases of a
continuous
production
cycle (crisis, depression,
revival, recovery)
Macroeconomics
It has two meanings:
- negative character (decline
in the standard of living of
the population);
- constructive phase of the
cycle.
Second half of
the 20th century
Economic crisis
Macroeconomics
Continuous production is a
phase of the cycle.
Systemic crisis
Systems theory
Change and replacement of
organizational forms of the
system.
Company crisis
Microeconomics
A conflict-like situation, an
acute shortage of funds, a
process
leading
to
bankruptcy.
Based on the presented features of the evolution of
the concept of "crisis," it can be concluded that
until the 17th century it had an exclusively medical
character, reflecting the peak of the disease in
humans. In medicine, the peak of the disease is
accompanied by the presence of severe symptoms,
for example, with the flu, which are high fever,
prolonged cough, general weakness, etc.
In the 17th and 19th centuries, the crisis took on
the status of a social concept reflecting various
conflict processes taking place in society (wars,
interstate conflicts, political tensions in the
country, etc.). During this period, states were
constantly in conflict with each other. Internal
tensions, accompanied by popular unrest
(uprisings), interstate conflicts, as well as wars, led
to the destruction of society. People could not live
normally and could not pay special attention to
their livelihoods. This led to a slowdown in the
development of the national economy and society,
since resources were constantly directed to
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defense capabilities to protect against external
threats, strengthen power, and maintain order
from within .
These components determine the formation and
course of the economic crisis at the macro and
micro levels. The crisis affects each participant in
economic relations to one degree or another: an
individual, a company, and the state. Individuals,
that is, citizens, create a need for certain goods and
services, forming a market. Enterprises exploring
markets produce products (services) to meet
demand, thereby satisfying their needs for their
activities, and the state collects taxes to solve
socio-economic problems necessary for the
activities of its management apparatus and the
distribution of income. The effectiveness of these
decisions depends on the course and degree of the
economic crisis.
To date, there are many interpretations of the term
"economic crisis."
Table 2
Definition of “Economic Crisis”
Author
Description of the concept of crisis
E. M.Korotkov
The threat to the viability of contradictions in the socio-economic system
(organization) in the external environment and its exacerbation.
A.B.Borisov
A sharp deterioration in the situation, manifested in a decline in production and the
disruption of existing production relations, a decline in the standard of living and
well-being of the population.
J.B.Sey, D.Ricardo
The imbalance between different sectors of production is restored in the process of
the development of a market economy.
DJ. Keyns, E.Hansen Overproduction of goods due to insufficient propensity to consume, which lags
behind income growth.
A.P.Dobrovinskiy
A phenomenon that represents the existence of a gap between the consumption and
production of goods.
D.M.Keyns
A sudden and sharp change from an uptrend to a downtrend.
S.Fisher,
R.Dornbush,
R.Shmalenzi
Disruption of equilibrium of various natures (the emergence of new methods of
production and products, changes in monetary and tax policy, consumer
preferences, aggregate demand, etc.).
G.P.Ivanov
The uneven development of the economy, changes in production and sales
volumes, and their decline are observed.
P.Lagadek
Facing problems that go beyond the usual, along with instability.
K.F.Hermann
An unexpected and unpredictable situation that threatens an organization's priority
goals due to time constraints in decision-making.
Authors such as A.B.Borisov, J.B.Say, and D.Ricardo
interpret the concept of “crisis” as a deterioration
in the well-being and standard of living of the
population as a result of a decrease in
consumption, a disruption of the economic
relations of all participants in this process, as well
as a violation of the balance between the
production and consumption of goods. J.Keynes
and E.Hansen, taking the same approach as the
first three authors, consider the crisis to be an
overproduction of goods resulting from a decrease
in profitability, which reflects the standard of
living of the population. A.P.Dobrovinsky, without
indicating the sources of these processes, defines
the crisis as a phenomenon resulting from the
discrepancy between the production and
consumption of goods.
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Reducing or eliminating the negative effects of this
crisis and crisis situations in the economy creates
the need for effective influence and management.
Crisis management is the art of mastering a
complex situation, eliminating more risks and
dangers, and and allowing you to subdue most of
the undesirable processes and control the events
that are taking place.
Crisis management is used both in extreme
situations associated with natural disasters and
accidents, and to regulate problems in the business
world. Its main principles can be formulated as
follows: empathy, openness, truthfulness, and
timely prevention. One of the main ideas is to
predict and prevent a crisis. To do this, a particular
enterprise must carefully monitor and analyze
many factors of its environment, identify factors
that pose a potential threat to its profits, image and
competitiveness.
The development of PR technologies is an
important factor in the globalization of the world,
which is of particular importance in reducing the
impact of various economic crises, which leads to
the strengthening of interstate relations and, along
with the means of communication, allows the
formation of a single interconnected financial
system and an international trade system.
S.Black stated: “Public relations is the art and
science of achieving mutual understanding based
on the provision of a high level of information
(data).”
According to another approach - PR (public
relations) is defined as an art and social science
that allows analyzing trends, predicting their
consequences,
advising
organizational
management, and implementing pre-planned
action programs that serve the interests of
organizations and the public. It states that:
It is a science and art based on the management of
social information in conditions of priceless
competition;
It is a combination of science and art, and its main
driving motive is not money, but public interest.
PR as a science and technology has developed since
the middle of the 20th century, and it is associated
with the development of new technological tools
and mass communications: television, the Internet,
etc. In the management system, PR activities can be
broadly divided into two areas:
−
working with the external public,
including customers, partners, competitors,
government agencies, etc.;
−
working with the internal public
(the enterprise's own employees).
The second direction determines the most
important role of PR in the management system.
What could be more important for an enterprise
than its employees? Because in some cases they
may not understand the actions of management,
may not be able to distinguish their views, and may
be dissatisfied.
Therefore, the programs developed and
implemented by the PR service to involve
employees in the activities of the company allow
improving the psychological climate in the
enterprise, minimizing conflict situations arising
due to lack of information or misunderstanding,
and solving many other problems.
METHODOLOGY
In the process of research, the approaches of
scientists to crises, crisis situations, and PR
activities were studied. Based on the data studied,
observation, logical approach, historicism, and
generalization methods were used.
RESULTS
We have considered the need to prevent crises and
crisis situations above and the many definitions
given to the concepts of PR activities and public
relations.
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Research conducted within the framework of the
topic shows that various crises can occur in the
economic and social system due to certain factors.
In these crisis conditions, PR activities use specific
principles. We will express it through the following
figure.
Figure 1. Principles of PR activities in crisis situations.
Every crisis is different, but there are a few general
principles that can help companies not only
survive the crisis, but also achieve efficiency in
their production processes. They are:
1. Speed and operational advantage. If the situation
gets out of control, the company will be in a
position to take action. The first day of the crisis is
a crucial time when the company's reaction should
be monitored. Delaying this process creates an
information vacuum. In such conditions,
competitors, without hesitation, immediately fill it
with rumors, assumptions and their own
comments.
2. Openness of information. This means not only
providing the media with all the necessary
information, but also adequately answering the
questions of any audience. Every unanswered
question serves as a basis for rumors. Any lack of
information
is
immediately
filled
with
assumptions. If the crisis is caused by competitors
or spoilers, they try to take advantage of such
situations to the maximum.
For example, you are asked what material the caps
of your beverage bottles are made of. If you leave
this question unanswered, rumors will soon
spread that you make them from lead or waste
products. Loyal customers may say this is
nonsense. Better yet, you should provide
information that the caps are made from a special
plastic raw material that is non-toxic,
hypoallergenic (does not cause allergies), and has
passed all possible testing.
3. Honesty. Honesty is the best policy. There is a
financial reason for this. It is naive to believe that
journalists are not interested in controversial
topics. Because the truth will come out sooner or
later. Hiding the truth and destroying documents
will not save the company.
If the company has made a mistake or an accident
has occurred at the enterprise, it is better to admit
it openly and be the first to announce your
thoughts and plan of action.
4. Initiative. You should be the main source of news
about what is happening around your company.
Even if you have to publish negative information, it
is better to do it yourself. In any case, someone will
take the initiative, and it is better if it is you,
Specific principles of PR activities in crisis situations
Speed and performance advantage
Openness of information
Initiative
Working with multiple levels at once
Honesty
Coordination
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because there you can give your own
interpretation of events.
You have to play by your own rules. The
mechanism is simple: journalists like to get
information before anyone else. If you provide
information first, journalists will steal it from you.
In this case, you should provide complete and
detailed information, including all the details, so
that journalists do not have to look for it in other
sources. If you actively provide information in
advance, alternative sources will simply become
uninteresting.
5. Coordination. It is very important to understand
that any disagreements within the company will
not be interpreted in your favor. If the leader says
one thing and his deputy simultaneously gives an
interview that interprets it differently, then an
awkward situation can arise. In a crisis situation,
the fact of disagreements within the company
reduces trust, and in such cases, trust is the second
most important resource after time.
6. Work with multiple levels simultaneously. In a
crisis situation, the target audience is not limited to
the media. For example, representatives of PepsiCo
worked on multiple levels simultaneously:
- Media. Visits to enterprises, press conferences for
journalists were organized, consultants worked,
and information materials were prepared on
everything, even the details of packaging
technology;
- consumers. Informative videos are released for
them, and the company distributes information
directly to consumers. A “helpline” will be created,
where any citizen can contact with a question of
interest;
- employees and partners. All employees are
explained the essence of the incident and the
correct interpretation of events;
- government organizations. Enterprises should
cooperate with government organizations,
ensuring that they have full access to any
information.
There are also groups involved in this process,
such as shareholders of the company. For each
such group, it will be necessary to present evidence
and convey information through communication
channels appropriate to the group.
Depending on the scope of PR activities and their
direction, different levels of public relations
management can be distinguished.
Figure 2. Levels of public relations management.
So, the levels of public relations management
include:
1. PR-management level. A comprehensive set of
works to create and strengthen the positive
reputation of the basic PR subjects as a unit of
Public Relations Management Degrees
PR Management Degree
Conceptual level
Speed level
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employees, including responsibility for the result
and long-term cooperation:
- management of communications within the
company, organization;
- development and implementation of a strategy
for the development of the basic PR subject:
- organization of a permanent PR-structure.
2. Conceptual level. Analytical and consulting-
project activities aimed at forming the image of the
basic PR subject:
- development of the image of the basic PR subject;
- provision of information and preparation of
analytical materials for the activities of the basic
PR subject:
- consulting and conducting special research on
creating corporate individuality, corporate style.
3. Level of efficiency. Implementation of one or a
number of events (promotions) that will help
increase the level of popularity of the organization:
- holding local events in the media;
- organizing and holding events for the press
(briefing, press conference, press tour, etc.):
- providing information to the activities of the basic
PR entity:
- organizing and holding a presentation, corporate
holiday.
Research shows that a crisis is also perceived as a
set of specific circumstances that lead to a negative
perception of a company by the media or
customers. It has the following characteristics: lack
of necessary information; unexpected competitive
situation; escalation of the situation; lack of control
tools; the emergence of a risk environment, etc.
Undoubtedly, the emergence of crisis situations is
inevitable, but readiness and a quick response to
them can completely change the outcome of
events. Companies that have developed an anti-
crisis PR strategy or an action plan for negative
situations will be able to soften the blow to their
reputation and quickly restore their lost position
in the market.
We believe that in crisis situations, a PR specialist
should understand the socio-economic essence of
the problem as deeply as possible, analyze the
origins of the process, and make full use of modern
scientific and practical approaches and methods.
CONCLUSIONS
Based on the research within the scope of the topic
and our above analysis, we can conclude the
following:
- the economic mechanism of the emergence of
crises consists in the sequential occurrence of
interrelated events;
- the crisis of an organization is caused by a
mismatch between its financial and economic and
external environmental parameters, that is, an
incorrect strategy or improper organization of
business, which is associated with poor adaptation
to market requirements;
- Crises can arise for objective reasons that are
associated
with
external
factors
and
macroeconomic development trends and are not
related to the activities of the organization
(saturation of the product market, bankruptcy of
contractors and customers, actions of competitors,
devaluation, changes in state credit policy, and
other market phenomena);
- Crises can occur due to subjective reasons, such
as internal reasons of the organization (risky
marketing
strategy,
internal
conflicts,
shortcomings in the organization and management
of production, etc.);
- the crisis of an organization, as a rule, is based on
a combination of the above factors, but studies
have shown that approximately 75% of crisis
situations in most organizations are associated
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with management factors - a low level of
management, the inability of managers to make
sound management decisions and adapt to
changes in the external market environment;
PR is not only used to strengthen relationships
between businesses and potential customers, but it
also helps an enterprise maintain relationships
with partners, suppliers, and customers, establish
relationships with government agencies, attract
investors, and even build relationships between an
organization's management and employees.
To effectively use the principles of PR activities in
crisis situations, we recommend the following: the
success of PR activities in crisis situations should
be to gain public trust; use reliable and
substantiated information about the activities of
enterprises in a crisis situation; take a clear
position, the organization should be flexible
enough to respond to the level of change and at the
same time adhere to its principled position;
involve top management in active actions, it should
demonstrate to others its participation in
overcoming the crisis, it should go to important
places, be present in public; use the help of famous
analysts,
leading
information
channels,
authoritative independent scientists or experts;
centralize communications, one person should be
responsible for disseminating information and
making statements on behalf of the organization,
supported by a team of experts; carry out constant
monitoring and assessment of the course of the
crisis, public opinion surveys should be universal,
check whether information messages are working
and make appropriate adjustments.
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