Chapter 4

Public Relations Departments and Firms

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Chapter 4 Objectives

Understand the role and functions of a public relations department Be more knowledgeable about the staff function of public relations Understand the structure of a public relations firm and its various activities Know the difference between working in a department and working in a firm
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Public Relations Departments

BEFORE: primary objectives were promotion and publicity NOW: complex and dynamic process of negotiation and compromise with a number of key publics

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Corporate Structure Shapes the Public Relations Role

The role of public relations in an organization often depends on

The type of organization The perceptions of top management The capabilities of the public relations executive

The differences between large and complex organizations and small-scale organizations

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Having Influence is Based on Four Factors

Perception of value by top management Practitioners taking on the managerial

role Reporting to the CEO Years of professional experience

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Organization of Departments

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Public Relations as Staff Functions

Traditional management theory divides an organization into line and staff functions Line managers
Can delegate authority Set production goals Hire employees Directly influence the work of others

Staff
Have little or no direct authority Indirectly influence the work through suggestions, recommendations, and advice

Although public relations departments can function only with the approval of top management, there are varying levels of influence that departments may exert
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Levels of Influence
Concurring Authority

Compulsory-Advisory

Advisory
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Cooperation with Other Staff Functions

Ideally, public relations is part of managerial subsystem and contributing to organizational strategy Other staff functions are required in the communication process with internal and external publics Requires cooperation to avoid possible friction with
Legal Human resources Advertising Marketing
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The Trend Toward Outsourcing

Fortune 500 companies now spend 25% of public relations budgets on outside firms Companies of all sizes spend more than 40% of their public relations budget on services from outside firms Brings expertise and resources that cannot be found internally The most frequently outsourced activities are
Writing and communications Media relations Publicity Strategy and planning Event planning

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Public Relations Firms

Predicted to grow as more countries adopt free-market economies and Internet applications continue to expand Services
Marketing communications Executive speech training Research and evaluation Crisis communication Media analysis Community relations Events management Public affairs Branding and corporate reputation Financial relations

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Global Reach

Most major public relations firms generate substantial revenues from international clients International work isnt only for large firms
Small and medium-sized firms around the world have formed working partnerships with each other to serve client needs Firms form affiliations and cooperate with each other to service clients with international needs
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How Public Relations Firms Get Business

Organizations will hire public relations firms

For supplemental staffing Help with special projects Specific expertise

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Pros and Cons of Using a Public Relations Firm

PROS Objectivity Variety of skills/expertise Extensive resources International jobs Offices throughout the country Special problem-solving skills Credibility CONS Superficial grasp of a clients unique problems Lack of full-time commitment Need for prolonged briefing period Resentment by internal staff Need for strong direction by top management Need for full information and confidence Costs

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Fees and Charges

A public relations firm charges for its services in several ways

Basic hourly fee, plus out-of-pocket expenses Retainer fee Fixed project fee

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