1. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Chapter Four: Today’s Practice – Departments & Firms This multimedia product and its contents are protected under copyright law: any public performance or display, including transmission of any image over network; preparation of any derivative work including the extraction, in whole or in part, of any images; any rental, lease, or lending of the program.

2. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Overview Public relations departments Public relations departments Line and staff functions Line and staff functions Public relations firms Public relations firms

3. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Public Relations Departments Importance of PR to today’s organizations  PR pros seen as strategic communication managers  PR offers 184% ROI  CEOs want communication that is strategic, research-based, and two-way Organizational structure  Large vs. small firms  Management perceptions  C-suite attitudes/reporting issues  Sources of influence for PR

4. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Department Names  PR vs. corporate communications or communications  Other names  Corporate relations, investor relations, public affairs, etc. Organization of Departments  Leader titles  Reporting hierarchy  Size of departments

5. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Line and Staff Functions  Line manager  Delegates, sets goals, hires, influences others’ work  Staff function  Little direct authority  Indirectly influence others’ work through suggestions, recommendations, advice  PR is a staff function

6. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Public Relations Influence within the Organization  Access to management  PR influence is linked to access to top management  Recommendations to management help in formulating policy  Levels of public relations influence  Advisory: Management has no obligation to request or act on recommendations  Purely advisory practitioners are often ineffective  Compulsory-advisory: Management is required to listen to public relations’ perspective before acting  Concurring authority: PR and others must agree on an action  This has benefits and detriments for PR  Command authority: PR can require a particular action

7. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Sources of Friction within Organizations  Legal Department  Differences on public statements  Human Resources Department  Differences regarding employee communications  Advertising Department  Competing for resources  Philosophical differences  Marketing Department  Focuses on one public: current or prospective customers

8. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Public Relations Firms Trend toward outsourcing needs to PR firms Trend toward outsourcing needs to PR firms Firms can complement in-house expertise. Firms can complement in-house expertise. Firms offer diverse services. Firms offer diverse services. Firms have regional, national, and global reach. Firms have regional, national, and global reach. Many firms are owned by communication conglomerates and thereby can offer integrated services (i.e., PR and advertising expertise) through affiliates. Many firms are owned by communication conglomerates and thereby can offer integrated services (i.e., PR and advertising expertise) through affiliates.

9. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Firm Structure Depends on size of firm Depends on size of firm Small firm may only have owner and one or two associates Small firm may only have owner and one or two associates Large firms have an extended hierarchy Large firms have an extended hierarchy President President Executive VP Executive VP Senior VP Senior VP VP VP Account supervisor Account supervisor Account executive Account executive Assistant account executive Assistant account executive

10. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Deciding About Using a Firm Pros of using a firm Objectivity Objectivity Expertise Expertise Resources Resources Reach Reach Problem-solving skills Problem-solving skills Credibility Credibility Cons of using a firm Superficial knowledge Part-time commitment Need for long briefing Internal resentment Need for direction Need for information and confidence Potentially expensive

11. Copyright © Allyn and Bacon 2006Copyright © Allyn & Bacon 2008 Fee Structures of Firms Hourly plus Out-of-Pocket Hourly plus Out-of-Pocket Most widely used among large firms Most widely used among large firms Retainer Retainer Fixed by Project Fixed by Project Pay for Placement Pay for Placement Seldom used Seldom used