Strategic Public Relations Management - Literature review Example

Communications management Name xxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxx Lecture xxxxxxxxxxxxxxxxxxxx Date xxxxxxxxxxxxxxxxxxxx “Public relations is more than a tactical tool used purely to “communicate” information or to add a gloss to information. It is an integral part of the strategic management process grounded on thorough-going (sic) research and skilled, objective analysis” (Gregory &CIPR 2010). Introduction Globalization and the highly information-driven business macro- and micro-environments have driven the trend of increasingly fierce competition. In such a tone, management focus is to ensure control and survival in the competition. Given the speed at which new markets are emerging and equally getting saturated relative to the speed of globalization, organizations are now banking their competitiveness on one thing: information. Surviving in markets and competition is now demanding more strategic management styles that are more controlling of situations. As such, being competitive and surviving is dependent on having the right information for the market place and being able to use the information competitively. This applies both to the micro- and macro-environment. This radical shift has spurred growing literature and research on information marketing, knowledge management, and public relations management amongst others. This is in addition to contemporary concerns for organizational reputation, social responsibility, legitimacy, trust which have created a greater need for public relations. The role of public relations has also evolved with the shift mentioned. It is now more than just a tactical management tool used to communicate information or add gloss to information (Gregory & CIPR 2010). The contemporary business practice views it as playing an integral part in strategic management. Other literature refers to it as a vital tool for business intending to survive amid fierce competition now characterizing the globalized business settings (Austin & Pinkleton 2006). It has also been delineated as being strategic with regard to knowledge management. It is a strategy in knowledge management and uses knowledge as strategy. It is with this background that this thesis seeks to demonstrate how strategic public relations practice and management can be and has become. It will also seek to delineate on its role in strategic management. This is relative to business competition. It will also seek to build on the contemporary definition of public relations and apply this to various engagements of businesses. This is by relating to theories posited about the practice. Strategic public relations management Various literature has concentrated on defining contemporary public relations. The most appropriate definition in the information driven contemporary world is one that focuses on the need for interrelationships with various publics reflecting on interaction. This builds on interacting with the various audiences on various platform that encourage communications exchange and participation. Any organization has audiences in both the macro and micro-environment. The macro presents practitioners with interactions amongst organizational resources and structures. The micro involves participants such as suppliers, marketing supply chain, governing authorities, shareholders and competitors. Hendrix & Hayes (2010) point to the nature of the practice as a process. They point out that as a process, it involves research, objectives, programming and evaluation, each being modified by practitioners as per the needs of an audience. Strategic P.R is founded on thorough on-going research that is skilled, analytical and objective. Feitsch (2009) points out to the process when he indicates the need of a planned process inorder to maintain mutual understanding and trust amongst all the parties. The focus on the process-nature of the practice has been furthered on by literature that refines these four phases more distinctly. These are the formative research phase, strategy, tactics and evaluative research (Smith 2009). The formative research comprises of situational, organizational and macro analyses. Strategy is made up of goals and action plan formulation, as well as strategic communication. At the tactics level, the strategies are turned into communcation tactics and an implementation plan which is actualized. This is followed by evaluative research in which the P.R assesses the extent of success. Strategic public relations will undertake this deliberately and in sequence (Smith 2009). With reference to the concentration on interaction, there are organizations which have shifted from the basic traditional practice to corporate communications management and corporate affairs (Oliver 2010). This is both in the organizational structure as well as the roles of departments and employees. This in the pursuit of transforming PR practice into the strategic phase. Gregory (2010) points out that there is an implication that management recognizes the status of the practice as so. This is because of how it participates in strategic management as a distinct managerial unit and as well an integral part of the management. Citing the process-nature of contemporary strategic management, it indemnifies relatively higher congruence with strategic management. This is to marry with the changing business paradigm with regard to individuals and increasingly differentiated societies increasingly pushing for social order. This has created a window of opportunity for P.R practitioners to partake strategic role-playing. Strategic management begins with intensive and objective research. Corporate relations involve three main players interacting on the same plane. These are the organization, the audience and the common issue between them which is either a problem or a potential. The research phase is implemented to enable the organization and practitioners gather information about these elements so that any communication and action is knowledge based. To begin with, organizations have various audiences with distinctive traits. There are those who are long-term such as shareholders, and there are those who are contacted on a short-term or a single-instance prevalence. Research results are used to set the objectives which are achieved through strategically planned programmes. This is later followed by an eventual evaluation. However, it is vital to indicate that evaluation is a continuous activity such as strategic management is. This presents PR as a four-step management process or model which is very critical in establishing symmetrical communication that is two-way. In a bid to indemnify the greater role of public relations in strategic management or in presenting it as strategic management, perhaps the best way to approach is the way of corporate social responsibility (CSR). Together with corporate identity, CSR is probably the most prominent area of concentration focused on by PR professionals given the orientation of establishing, caring for and maintaining a reputation and an image for the organization (Feitsch 2009; Capriotti & Moreno 2007). Its importance has increased over time as demonstrated by the increased demand by various audiences which are very keen and evaluative of the civic behavior of different companies. This demand and importance has been complemented by a trend in which the companies have increasingly taken up social. However, whilst business and corporate leaders agree with the need to address societal needs and expectations for competitiveness, there has been a persistent struggle in building CSR into a corporate strategy (Galberth 2009). This struggle is demonstrated by organizations taking up typical approaches that are relatively weak and often fail to capture the fundamentals of organizational strategy. Establishing a CSR that is run and integrated with P.R takes CSR beyond the typical activities of policy formulation, ethics, launching events and reporting them and is encouraged by empirical studies. This is because P.R broadens the scope of CSR and enhances its offensive sense (Davis 2005). In this sense, CSR and social issues are addressed in an approach that demonstrates their importance to a business entity. The practice of CSR is a PR function since the organization interacts with its publics beyond the platforms such as the supply chain to and fro the organization, business regulations and competitors. The PR professionals use it to achieve social goals that are acceptable and laudable by various audiences. This has become of great importance especially in liberal pluralist societies that characterize the 21st century (Theaker 2004). Such societies are exerting social pressure on organizations which may either make the organizations vulnerable or may impede organizational strategic future. This has been recently experienced in various sectors. For instance, there are markets in which financial instituitions have been forced to shape up along societal inclinations leading to change of strategy and core business operations. This considers the recent global economic crunch whose effects have not yet, as of now, cleared off most economies globally. The interconnectivity of social issues makes strategic and more impacting CSR even more important. CSR is of value to PR practitioners given that CSR initiatives allow the organization build goodwill with the society. As such, the P.R professionals participate by proposing the most appropriate activities. In this, rationale is a well informed research seeking to match need with supply. They also decide on whom to reach, the timing, the objectives and the messagesas well as policy formulation. Organizational activities are often run based on policies and the practitioners participate in this formulation. Thus, it is not just a reserve of management to develop the structure for CSR leaving it to PR department to implement and communicate. The professionals take this beyond by providing techniques that are fine tuned to specifics of the audience, of the need and the activity. This is strategically done to create the impression that the organization is engaging in the activities from the motivation of duty it owes the society and not self-interest (Theaker 2004). Corporate responsibility is based on the rationale that any PR and CSR activity is not for explicit self-interest but it is based on the understanding of the rights of the communty and that the organization owes it duty of care. In addition to this, P.R also strategically addresses the concerns of shareholders so that they see the eventual value of such initiatives. CSR puts billions of shareholder money at stake given that its outcomes may not only pose a risk to a company, but also create betterment opportunity (Davis 2005). In this pursuit, P.R is involved in identifying the beneficiaries and their needs as well as the most appropriate means of satisfying them. This is done using a social audit that is based on thorough research methodology. The role of P.R in CSR presents it as a strategic function in an organization. The approach complies with what Steyn (2007) conceptualizes as a three-stride desk of the contemporary practice. The practice is conceptualized as a strategic role in top management that actively participates in the formulation of general organizational strategy. Secondly, the practice is conceptualized at the functional level of middle management and thirdly as being operational with the implementation role. Steyn further specifically delineates that the PR strategist is the information acquisition role of the boundary spanner, while the PR manager and technician roles form the information disposal role (Steyn 2011 pp.520). In these roles, the P.R management will participate at the three levels within an organization: micro, meso and the macro-environment. Linking with CSR, the macro level details extensive social audit, planning and budgeting with regard to the external audiences. The meso level and the macro have to do with implementation and draws relatively more from within the organization. Stenyn’s proposition is aligned to the excellence theory whose focus is on the value of P.R to an organization and how effective it can be with respect to social responsibility (Heath 2005; Fearn-Banks 2011). Effectiveness is rooted on problem solving whose intention is to satisfy all the stakeholders. This is also built on by the stakeholder theory. This model presents four models, in which an organization can adopt their P.R: press agentry, public information, two-way assymetric and two-way symmetric models (Fearn-Banks 2011). They operate on a continuum based on emphasis for truth and social responsiveness, purpose of communication and the extent of interaction. An effective strategic P.R, whose function is beyond passing information, is built on two way symmetrical model allowing a tri-level manifestation in an organization. Such would allow P.R managers and strategists to engage different publics negotiating on mutual grounds and reach compromise. This creates a dire need for knowledge based engagements. The excellence displayed by the two-way assymetrical approach is only possible if P.R is an integral part of strategic management. It is thus enabled to become strategic in engaging various publics. Fearn-Banks (2011) further explains the implications of the theory on the organization as meaning that P.R is represented in top management, is built on thorough research based on segmentation of stakeholders and that it is strategically managed through plans. The tri-level manifestation is also entrenched in the stakeholder theory which describes them as those with the ability to influence organizational performance. The theory posits the consideration of the publics as having a contractual relation with an organization indicating transactional and exchange needs and processes. This emphasizes on the need for strategic P.R management built on mutualism and negotiations so that there is a compromise. This should begin at stakeholder analysis which enhances understanding of how best to enhance relationships ethically and effectively. In building CSR and P.R into strategic management excellences management should concentrate on the hows of doing it, rather than formulating processes that are pursuant to this. This is because every situation presents the P.R strategist, managers and technician with unique characteristics needing specified processes. CSR is best contexualized. Literature delineates six key areas of focus in establishing CSR and P.R into strategy: mission, strategic issues, markets, customer needs, resources available, and competitive advantage (Galberth 2009). Mission refers to an organization’s fundamental purpose of being. Given the almost full homogeneity of societal issues and needs the strategy should be developed reflecting the context of organizational intent. This way, any P.R and CSR is a reflection of the organizational consideration on the value of the issue. Strategic P.R will help strike a much needed balance between the social and economic charters of the organization. Secondly, mission informs strategic issues formulation. This is an outside-in point that is based on social audit critically evaluating social issues. The results of this audit are then related to the mission. Market consideration features an interest in the targeted audiences in which there is strategic segmentation. This will be based on social dynamic variables such as demography, behavior and geography. This leads into an evaluation of customer needs given the need to create value. With this regard Galberth points out two important considerations: market orientation and innovation. The mission, issues and market characteristics then require to be matched with organizational resources. In this, resource-specificity and availability are emphasized. Finally, it is vital to consider strategy with reference to its potential for enhancing competitiveness with regard to either cost position or differentiation position (Galberth 2009; Porter & Kramer 2006). Success in external communications and CSR is rooted in an enabling internal environment. The need for strategic relations and communications strategy cannot be overlooked. This is especially so with the prevailing trend of knowledge based operations in the 21st century. This has led to growth of research and heightened focus in knowledge management, intellectual resources and capabilities. It is vital that knowledge is viewed strategically, and so is public relations. The extent of organizational link of intellectual resources to strategy is dependent on the degree to which products and services are knowledge-based. That not withstanding, information era we are in requires that this link is enhanced. A key indicator of an organization’s interest in knowledge as strategic is the relationship between strategy formulation and those responsible for knowledge management (Choo 2002). This is in addition to the extent to which P.R is oriented towards manifesting an organization as being knowledge-based. The view of P.R as being critical in this is vital. With regard to human resource, strategic P.R will require a beyond-traditional integration of the human resource department with P.R professionals. This is vital in creating multidimensional information flow. This is with reference to infrastructure development, implementation of strategies and communication techniques as well as crisis management. Conclusions Globalisation and the 21st information-based operations have greatly changes the orientation of competitiveness. Organizations are now banking on the ability to manage information. This demands a shift of P.R perspective into a more tactical and strategic practice. The reference of this practice has changed in some organizations into corporate relations management. This presents the practice as being strategic. It is also presents with regard to its integration in strategic management. The participation of P.R in community social responsibility indemnifies this strategic role especially given the related processes of research, objectives, programming and evaluation. As such, the P.R practitioners participate in strategic management across three levels: macro, meso and micro. This is in the roles of a P.R strategist, manager and technician all in one stride. The approach is either inside-out beginning with the micro, or outside-in, beginning with the external. This presents the practice as being knowledge- and strategy-based. The inclination to knowledge is more critical with the reference of whether an organization is knowledge-based and with regard to internal communications. The extent of integration between strategists and knowledge managers is a key indicator of this, often influencing internal performance. Bibliography Austin, E., & Pinkleton, B. (2006). Strategic public relations management: planning and managing effective communications programs, 2nd Ed. Mahwah: Lawrence Erlbaum Associates . Capriotti, P., & Moreno, A. (2007). Corporate citizenship and public relations: The importance and interactivity of social responsibility issues on corporate websites. Public relation review, 33 (2007) , 84-91. Choo, C. (2002). The strategic management of intellectual capital and organizational knowledge. Oxford: Oxford University press. Davis, I. (2005). What is the business of business? . McKinsey Quarterly, 3 , 105-113. Fearn-Banks, K. (2011). Crisis Communications: a casebook approach 4th Ed. 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