Analyse The TCS Crisis Using The Image Repair Theory and Explain Which Strategy Has Been Most Employed by The Company. (20 Marks)

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1.

Analyse the TCS crisis using the Image Repair theory and explain which strategy has
been most employed by the company. (20 Marks)

● Image restoration theory/image repair theory, developed by William Benoit is the most
prolific framework for informal crisis communication research.
● IRT begins with an attack that threatens a reputation/Image, and attacks have two
components:

(1) an offensive act and

(2) an accusation of responsibility for the act.

● From the point-of-view of TCS’s situation, the narrative is centred around both elements.

1. It offended a mass of stakeholders who believed the attrition was unjustified.


This constitutes the offensive act.

2. There existed ire revolving the casual nature by which TCS handled the entire
accusation, the off-handedness was construed to be a lack of responsibility.

● The offensive act in this case, mass-firing (that was perceived to be guised under
the pretext of restructuring) had the possibility of being a threat to a reputation. It
became a threat when TCS was held responsible for the unfair downsizing
without any explanations whatsoever, and this posed a major reputational threat.

● From the three strategies of Image repair theory, namely:

1. Denial,
2. Evading responsibility
3. Corrective action
4. Reducing offensiveness,
5. Mortification

TCS employed the following:

1. To all the stakeholders: Reducing Offensiveness (not effectively executed):


TCS tried to minimize the offensiveness of the act by claiming to have inflicted
very little damage by citing that this is organizational routine action and that the
layoffs were nothing new.

2. To the employees: Denial (on part of the lower levels of hierarchy) by claiming to
not know the reasons behind their firing and that they were simply executing the
orders of their higher authorities.
2. What were the allegations against TCS? Why did the issue receive so much attention?
What should be the first step that TCS must take and give reason for the same? (20
Marks)

Following were the key allegations against TCS:

Unjust lay-offs of employees who had as much as 20 years of work experience and
ditching them when they had families to feed (an article by business standard)

Why the issue received so much attention:

● No strong communication sent across on part of TCS


● The involvement of YTNM and their firebrand protests

What should be the first step that TCS must take:

● TCS needs to put forth an effective and efficiently executed corporate communication
strategy as soon as possible (the ideal situation should have been within 30 mins -6
hours of the first allegation.) in order to sort the crisis.
● A Crisis Management team needs to be formed as quickly as possible, ensuring
adequate representation from all stakeholders involved.

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