21st Century Organizational Trends

•Organizations in the 21st century are quickly adopting itself to the environmental changes and consumer expectations. To successfully implement flexible management practices the organization needs to use the 21st century trends.
•Stephen P. Borgatti identified five organizational trends that influence the workplace of the 21st century. These trends also have an effect on workplace communication. The major trends that will influence the way we do business in the 21st century are globalization, diversity, flexibility, flat structures, and networks (http://www.analytictech.com/mb021/trendsin.htm).

Globalization - MNC’s and TNC’s are all the results of globalization. Companies today want to expand their operations globally. They want to have access to many different markets in different countries, which enable them to enlarge their domain and to spread risks about a larger customer potential. In multinational corporations of the 21st century, manufacturing and sales offices are spread across the globe. The exponential growth of truly global organizations, or globalization, has been a huge trend over the past century. The key benefit of global organizations is the ability to exploit regional differences in customers’ needs and production capabilities, such as worker expertise, costs, government aid and so forth.

Diversity - The global workforce is more heterogeneous in the 21st century: sexually, racially, culturally, and individually. Global companies hire employees with different backgrounds and nationalities, which fosters the learning process and helps in enhancing the performance of the company by taking the best of all the worlds. However, diversity is considered both a supporting factor of innovation, and a source of conflicts. Management and employees need to cope with different styles of interacting, dressing, presentation, and physically appearance in a multicultural company.
For example, Microsoft is committed to diversity for better performance. http://www.microsoft.com/about/diversity/default.mspx

Experience – Diversity in the faculty teaching at IUP has benefited me as a student as I get to learn from faculties who come from different cultural background. I get a chance to experience different teaching methods that enhances my knowledge and skills.

Flexibility – Flexible organizations are the ones in which organization systems, processes, and people are able to respond differently to different situations. By being flexible, the corporations have fewer detailed rules, greater autonomy, and special job schedules for mothers, and women. The corporations have been able to save huge amounts by letting the employees to decide the working schedules, working from home, job sharing and paying according to the skills.
For example, Google allows its employees to bring their pets at the workplace. http://www.google.co.in/intl/en/plex/index.html

Flat - Organizations in the 21st century are becoming more flat and the levels in the hierarchy are disappearing. Communication is fast in flatter structures and the chances for delays in communications are very low in this structure. This structure helps the company for speedy exchange of information and cost reduction. Better communication between management and workers, less bureaucracy, easier decision-making and better team worker are few of the advantages of the flat structure. The disadvantages of flat organizations are : workers may have more than one manager/boss, hinder the growth of the organization, structure is limited to small organizations such as partnerships, co-operatives and some private limited companies and function of each department/person could be blurred and merge into the job roles of others.

For example, Google has a flat organization structure with no hierarchies. Every employee and important and wears several hats.

Networked - Direct communication across unit and firm boundaries enhances the speed of decision-making. In a changing environment, chain of commands may loose importance, because they extend the time for decision-making. Many companies outsource activities that are not their core competencies. If they decide to offshore, they have to establish a network with their service providers in the other countries. The company has to keep in touch with its offshore locations, since they deal directly with the customers. This can only be achieved through networks. Many companies establish strategic alliances, which are also considered a kind of network.

Experience – For my travel to US in August, I have booked Jet Airways flight till New York and for my further journey to Pittsburg Jet is providing Continental Airline as it is does not flights operating till Pittsburg. However, this networked alliance has made my traveling easier and economical. http://www.iimahd.ernet.in/publications/data/2003-01-02AbhishekGoel.pdf

Communication Technologies

•From pigeons to emails, communication technologies have modernized the world we live in today.
•The medium of communication has completely changed with the rapid changes in technology.
•Individuals and corporations today are communicating with each other and the rest of the world in ways that would not have been possible years ago.
•New technologies are used by corporations communicate from social, economic, political and cultural perspectives with its various constituencies.
•Communication is known as the sharing of information, thoughts, and ideas, and in a similar pattern communication technology can be thought of as the use of knowledge, tools, and skills for the purpose of facilitating communication and making it easier, more economical, and more efficient.
•Word of mouth, writing letters, speaking to one another, etc are the basic traditional technologies used by people for communication over a period.
•Businesses today use a wide variety of technologies to communicate internally with its employees and externally with its constituencies. Few to be listed are :

Internet – Internet can be called as one of the best human invented technologies for economical and efficient communication worldwide. Internet has transformed the way society and businesses communicate. It eliminates the barrier of distance and time. Internet is the platform for rest of the communication technologies like email, instant messenger, blogs, etc. Corporate websites initiates a two way communication process in which the relevant constituencies can obtain direct information from the company sources for its queries. http://en.wikipedia.org/wiki/Internet

Intranet - Organizations are making extensive use of private organization networks, using internet protocols, network connections to share information securely and communicate in a safe and secure mode. Increasingly, intranets are being used to deliver tools and applications. The use of this technology helps the organization to develop an effective internal communication. Safety from intruders is assured and the hacker cannot easily access the corporate information, as there are different layers of security.

Experience - Reliance Industries uses corporate intranet and the Knowledge Management System to communicate internally with its employees. Employees can chat, email, and get relevant company and industry information from the intranet. I had a chance of using the corporate intranet facility as I was an intern. Internal communication is enhanced with the use if this technology.

E-mail - This technology allows businesses and even the other common users to communicate fast and from any place. Emails can be sent and received from anywhere at almost no cost. However, the wrong persons can read emails, and security is a highly discussed issue in this case. It is widely being used by corporations to communicate personally with its constituency to cater to their needs. It is another substitute for traditional letter writing.

http://en.wikipedia.org/wiki/E-mail

Cell phones and Telephones – Cell phones today are the easiest mode of communication, personally and professionally. It is an easier way to contact various business partners and maintain intimate one to one relations. Technologies like fax clubbed with telephone fast, easy to use and good if people are waiting for documents or statements that can not be provided orally. Cell phones today are available with additional camera and music options. Inbuilt GPRS technology also helps to connect to the internet.

For example, the use of Blackberry cell phones by executives has completely changed the communication arena. It is used as a mini computer that enables a user to view and send emails, checking the appointments, making and answering calls and the most important thing communicating with the organization for updating themselves about the latest news.

Experience – My cell phone keeps me attached to my parents who are far off in a different place. It helps me to be in constant touch with my friends through SMS (short messaging service). By connecting a data cable, I can even access the internet, check my mails, and reply to them.

Blogs - Blogs enable people to read ideas and statements and share the same information on a common forum. These statements can help people to understand the company's objectives, services, products, etc and add comments to these statements with the feedback. A typical blog combines text, images, and links to other blogs, web pages, and other media related to its topic that can be displayed in an attractive manner. Organizations today are making use of blocks by writing articles, making journal entries about their ventures, their employees are also contributing by sharing views and this information can be used by a variety of its constituencies.
For example, Google’s official blog provides information related to its culture and products.

http://googleblog.blogspot.com/

Voice over Internet Protocol – VoIP is software uses the internet to transmit voice and other forms of digital sounds over the internet. The various forms of VoIP are video conferencing, voice chat, movies, music albums and free international calls. This technology helps organization to communicate effectively by saving on traveling costs, managing time, and sharing of strategic information in short period of time.

Pod cast – It is a digital media file, or a series of such files, that is distributed over the Internet using syndication feeds for playback on portable media players and personal computers. These are easily assessable by the internet users and can easily be viewed. The organizations are using pod cast to inform their constituents about their actions.

Instant Messenger – IM is a common communication tool with businesses and the common masses. It instantly helps you convey the message and get the necessary feedback in form of a reply. Promptness unlike in email is an advantage of IM.

Wikis – “Wiki is a piece of software that allows multiple authors to edit web page content. Ward Cunningham originally described a wiki as "the simplest online database that could possibly work.” Wikis are widely used by internet users to gain and share information.

http://en.wikipedia.org/wiki/Wiki

Corporate Communication Relevance

•Organizations need to communicate effectively with both the constituencies – external and internal.
•In internal communication, organization deals with employees, employers and managers. In external communication, organization deals with existing and prospective customers, suppliers, investors, government and the wider public.
•The stakeholders, employees, government, creditors, bankers, top management, competitors and others want to know what is going on inside the organization, how well it communicated depends on the strategic approach followed by the business.
•In an era of intense competition, money is not all that matters organization should built good relationships with the constituencies. The value of any organization is the combination of what a constituency perceives an organization and the way the organization receives the perception. Organizations need to maintain good relations with other companies in the industry too.
•Corporate communication has gained relevance due to several factors like technological developments, public’s growing awareness of issues and increased skepticism of corporate intentions.
•Through several medium, the corporations communicate with its constituencies. Few to be listed are :

1.Image and identity - Image is the corporation seen through the eyes of its constituencies and identity consists of an organization's defining attributes, such as people, products, and services. Identity should not vary from one constituency to another, but each constituency can have another image of the company. Determining what the organization's image is with different constituencies, is a task performed by the corporate communications function. Identity building is also a part of the communication function's work; that means to decide how the organization wants to be perceived and what measures to take to ensure a proper identity.

For example, Google uses three different types of logos to communicate its work culture and its identity with its various constituencies.http://www.google.co.in/intl/en/stickers.html

2.Corporate and product advertising - Corporate advertising brands a corporation while product advertising brands a product. Corporate ads do not try to sell one product or service - it tries to sell the company itself. The corporate communication function is involved in developing corporate advertising campaigns. The corporate communication department also plans issue advocacy advertisements that are made to generate opinion from the constituencies about specific issues that affect the company.

3.Media Relations – The manner in which the corporations deal with the media directly affects the rest of the constituencies. As the media is present everywhere news about businesses can reach the constituencies through internet, TV, radio, newspaper, etc. The media increasingly reports about companies, and the communications department must be prepared to get media calls any time. The communications department helps to train employees to communicate effectively with the media personnel.

4.Internal communications – Corporate communication function designs strategies that ensure that the workforce is more engaged, productive, and loyal so that it feels more informed and involved. Internal communications should make sure employees get information that is affecting them before the public gets it.

5.Investor Relations – Investors are the most important constituency determining the company’s revenues and growth. IR professionals interact with individual and institutional investors and are involved with the financial statements and annual reports. Corporations need to communicate with investors and potential investors to gain a better share of the investor’s capital.

For example, Infosys’s website has special section for its investors. The aim is to inform the investors of the company’s financial performance and status. http://www.infosys.com/investor/default.asp


6.Crisis Communication – Organization’s stand during any crisis can be better justified to the constituencies with the help of the corporate communication function. Hence, communications professionals should also be involved in crisis planning. http://usinfo.state.gov/products/pubs/pressoffice/crisis.htm

Theories of Communication

Theories of Communication

“To communicate,” means to let one’s ideas, views, opinions or simply just a message, action or touch flow as information through a channel to a targeted listener. Communication is the process of information flow by which living creatures can convey and acquire information related to their surroundings; to carry out the daily life activities. Communication is thus an information related behavior.

Three common communication settings are:

1.Interpersonal (face- to- face) – direct one to one communication
2.Machine assisted (computers, cell phones, etc) – use of email, instant messages, conversation over cell phones, etc, which makes use of machines as a channel for information exchange.
3.Mass communication- information to be conveyed is targeted at a larger audience that is scattered. Television, radio, print media like magazines, newspapers, etc are used as medium of communication.

Models of Communication

Theorists have proposed various models of communication from time to time. Linear models dominated communication research earlier but gradually convergence models of network communications evolved. In linear models individuals as the unit of analysis and the information flow is unidirectional whereas in convergence models information exchange relationships are the unit of analysis.

•Lasswell's Model

Harold Lasswell a political scientist in 1948 proposed a linear model, which explains the communication process as "Who says what to whom in what channel with what effect." Lasswell’s model focuses primarily on verbal communication just as Aristotle’s. The model is a simple description of one-way communication process, which comprises of a speaker who communicates a message to a receiver by making use of any of the media like print, radio, television, etc to finally convey the information.
•Shannon & Weaver’s Model

The Father of Information Theory, Claude Shannon’s published work for Bell Telephone forms the basis of the Shannon and Weaver model. The model consists of an information source, which selects a desired message out of a set of possible messages, and the selected message may consist of written or spoken words, or of pictures, music, etc. It has a transmitter that converts the message into a signal, which is sent over the communication channel from the transmitter to the receiver.

During signal transmission through the channel, receiver may come across noises, which are any mental or physical distraction that interferes with the transmission of a signal from the source to the destination. "Correction channels” are introduced which overcomes the problems created by noise and the information in form of the signal finally reaches the receiver.
•Schramm’s Model

Wilbur Schramm in 1954 provided several additional models out of which the first was essentially an elaboration of Shannon's. He introduced the concept of “commonness” between the source and the receiver. The message from the source is encoded and is transmitted in form of a signal to the receiver where it gets decoded. Here the information carried in form of a signal is encoded and decoded in the common way in which both the sender and receiver can interpret it easily.

In his second model, he introduced the concept of field experience, which helps in determining whether a message would be received at its destination in the manner intended by the source.

Schramm’s third model is based on the convergence or network approach. Due to various kinds of noise there are chances that the message gets distorted till it reaches the receiver, to overcome the problem he introduced the concept of feedback which helps the sender to modify the information form what he observes or hears from the receiver or the audience. The communication process now takes a circular form as both parties take on the roles of sender and recipient.

Schramm’s model emphasizes on the importance of feedback for the information to reach the receiver in the same manner as desired by the sender. Feedback is essential in the business environment to ensure that the constituencies interpret the information correctly from the companies.

•Westley-MacLean Model

Bruce Westley and Malcolm MacLean, Jr. proposed a model, which tells that in an environment various events occur on which advocates may choose to comment. The advocate’s comment are taken up by different types of media like print, radio, television, etc which passes on the information to the audience. The audience responds to these comments and gives its feedback to the media and to the advocates. Even the media can give its feedback to the advocates. The model elaborates the feedback concept and emphasizes on mass communication and interpersonal communication, as well as the relationship between the two.

•Kincaid’s Convergence Model
In the convergence model, "communication" is defined as a process in which participants create and share information with one another in order to reach a mutual understanding.

Lawrence Kincaid proposed the Convergence Model in 1979, which lead to a relational perspective of human communication. When information is shared with individuals or groups taking part in the communication process, it may lead collective action towards mutual agreement and mutual understanding. Before this, the information is understood, interpreted and perceived by individuals.

Communication is this model is viewed as a process rather than a single event. The model emphasizes information exchange and networks that exist between individuals.

References and links

1.http://www.cas.usf.edu/lis/lis260/lectures/shannon.html

2.http://www.cultsock.ndirect.co.uk/MUHome/cshtml/index.html

Experiences

1.Systematically conveyed messages through proper a channel can lead to timely deliverance of the information to the receiver, making the work process easier. I personally experienced this during my internship at Reliance Industries. From the day I joined, I was well instructed and guided regarding my day-to-day activities by my project guide. My project guide communicated the information regarding my work of the day in a clear and an understandable manner. The department activities being spread all around the company premises made it difficult for him to coordinate physically with me regarding my progress, so he was in constant touch through emails. This helped me improve my email communication style with the senior executives. On a regular basis, he took my feedback to ensure that I understood the organization and its functions well. Thus good communication skills can help the receiver interpret the information without any flaws and regular feedback helps in modifying that the information in case of any errors.

2.Information exchange can become difficult at times due to various kinds of noises in the environment. Physical noise as well as mental noise can distract the communication process. Constant distractions during lecture hours in the college when students arrive late and try to enquire regarding the class, deviates my concentration and the information from the lecturer is misinterpreted which finally leads to difficulties during examination.Lasswell's Model
Harold Lasswell a political scientist in 1948 proposed a linear model, which explains the communication process as "Who says what to whom in what channel with what effect." Lasswell’s model focuses primarily on verbal communication just as Aristotle’s. The model is a simple description of one-way communication process, which comprises of a speaker who communicates a message to a receiver by making use of any of the media like print, radio, television, etc to finally convey the information.

Crisis Communication: Expect the Unexpected

“A crisis is a major catastrophe that may occur wither naturally or as a result of human error, intervention or even malicious intent. It can include tangible devastation, such as the destruction of life or assets, or intangible devastation such as the loss of an organization’s credibility or other reputational damage. The latter outcomes may be result of management’s response to tangible devastation or the result of human error.”

• News Media have traditionally derived a high percentage of front page or prime time news stories from crises occurring in the corporate world.
• A crisis is everything has everything journalists and readers alike crave: high drama and the catharsis that accompanies witnessing such events.
• Mangers need to understand crisis communication because organizations too face crises that are often capable of reaching huge proportions and substantiality influence the work ability.

Types of Crisis
• Natural Occurrences : Corporations face crisis that occur naturally : A hurricane rips through a town, leveling the local waste management company’s primary facility; an earthquake turns the three biggest supermarkets in the area into piles of rubble; a ship is battered at sea by a storm and sinks with the cargo destined for a foreign market. Organizations have no control over these incidents and it cannot be avoided.
• Human induced crisis: There are many crises that are caused by human error or negligence, which can be prevented through planning. Such human crises can be bigger than the natural disasters in terms of cost to the companies in terms of both dollars and reputation. Not all human crises can be lumped together. One type includes cases in which the company is clearly at fault, for instance cases of negligence. The second type of crises includes cases in which the company becomes a victim. A company’s role as either perpetrator or victim in a crisis is the distinction upon which public perception often hinges.

Crisis Characteristics
• Element of surprise – For example, Pepsi learning of reports of a syringe found in a Diet Pepsi can. The element of surprise leads to a loss of control. It is hard to think strategically when overwhelmed by unexpected outside events.
• Insufficient Information – The company does not have all the facts right away, but very quickly finds itself in a position of having to do a lot of explaining.
• The quick pace of events – Things escalate very rapidly. For example, even before Exxon’s crisis centre was up and running in Valdez, the state of Alaska and several other environmental groups were mobilized.
• Intense Scrutiny – Executives are often unprepared for the media spotlight, which is instantaneous, as answers and results normally take time.

How to prepare for crisis
• Assess the risk – Organizations need to analyze whether it can be attacked or not and by whom. However, the question arises as how can organizations determine whether they are more or less likely to experience crisis or not. First, publicly traded companies are at risk because of the nature of their relationship with the key constituency, their shareholders. A privately held company does not have to worry about shareholders when a crisis hits, but it does have to worry about the loss of goodwill, which can affect sales.
• Set Communication Objectives for Potential Crises - The overriding objective of all crises planning should be to maintain the flow of communication at all times – not jus on paper but in practice as well. Managers need to focus on what kind of things they will say and to whom as the crises involve intangibles such as the loss of reputation rather than the loss of lives.
• Consider the Constituencies – Companies need to determine which constituencies would be most affected by a crisis. Ranking the constituencies over one another during the hectic fast-paced environment of a crisis is difficult. Hence planning helps the organization further refine which potential crises it should spend the most time and money preparing for.
• Analyze channel choices – Companies should select effective communication channel to convey the message. Mass distribution of memos would be too impersonal for a message to employees in time of crisis. The company might consider personal or group meetings or a “town hall” gathering instead. The choice of communication channel reflects how sensitive a company is to its constituencies’ needs.
• Assign different teams to each crisis - Different problems require different kind of problems, hence a company need to determine in advance, who will be on what team for each crisis. Assigning different teams to handle different crises helps the organization put he best people in charge of handling that crisis and the necessary communications.
• Plan for centralization - When it comes to crises approach must be completely centralized. Planning for centralization can help strip away layers of bureaucracy, keep lines of communication open throughout the organization and dissipate conflict, all of which are especially critical in a crisis.
• What to include in a Crisis Plan – Research on crisis planning has shown that following information is almost always included in crisis plan :

1. A list of whom to notify in an emergency
2. An approach to media relations
3. A strategy for notifying employees
4. A location to serve as crisis headquarters
5. A description of the plan

Communicating during Crisis
• Get control of the situation – The first step is for the appropriate managers to get control of the situation as soon as possible. This involves defining the real problem with the use of reliable information and then setting measurable communication objectives for handling it. Failing to take this seemingly obvious, but crucial first step can be devastating to crisis management effort.
• Gather as much information as possible - Directly related to defining the problem, the gathering of relevant information is crucial to addressing a crisis. This involves managing the information coming from several sources. As information becomes available, someone should be assigned to mine this information.
• Set up a centralized Crisis Management Centre – Crisis management centre will serve as the platform for all communication during the crisis. All communications about the crisis should come from this one centralized location. The centre should include adequate computers, phone services, fax machines, etc.
• Communicate early and often – The organization’s spokesperson needs to say whether he or she can as soon as possible. Silence and delayed responses should be avoided. Companies need to put good inside people on the front lines rather than hired guns and should encourage managers to adopt a team approach with others involved in crisis communication.
• Get inside the media’s head – Members of the media in and extremely competitive environment, which explains why they all want to get the story first. They are also accustomed to a crisis environment in their work. They look for stories with villains, victims and visuals.
• Communicate directly with the affected constituencies – Employees are likely to be the best media sources in the crisis as each of them act as a goodwill ambassador for the firm. Hence, the employees need to be communicated first about the crisis. External constituencies need to be contacted as well, which includes customers, shareholders, communities, suppliers, emergency services, experts and officials. All the available technologies should be used to communicate with them including e-mail, voice mail, faxes, direct satellite broadcasts, and online services.
• Keep the business going – Except the top management, which is involved in dealing with the crisis, others should work to keep the business going. Managers should plan ahead replacements for employees working in crisis team.
• Make plans to avoid another crisis immediately – Post crisis, corporate communications executives should work with other managers to ensure the organization will be even better prepared the next time it is faced with the crisis. Companies should realize that there is no better time than the period immediately following a crisis to prepare for the next one because motivation is high to learn from mistakes made the first time.

Experience
• When cyclone struck the state of Gujarat in India in 2001, devastation of life and property was to its peak. I was in my school and the Independence Day function was being celebrated. When the earth trembled, all the students and the staff got panic. However, the Principal took control of the situation and she evacuated the school premises. Due to centralization of authority, the flow of instructions from her to rest of the staff members was very fast and effective. The school management took responsibility of students’ safety and managed to send all of us safely back home. Due to the efficient management during the crisis, there was no loss of lives and no one was even wounded.

• In July 2004 when I was in the first year of under graduation, there was a bomb threat in the college. The college premises was full of students who ran here and there spreading the news, which made the President come up front and console the students by touring the whole campus and denying the fact of any bomb present. The management was able to react quickly because it had collected relevant information and made the necessary security checks for any threats as soon as it got the news. It was well aware of the students’ security and had the crisis team at hand to handle the issue. Parents and the media were contacted as soon as possible to stop the rumors spread any further and timely and accurate information was provided.

Example

• Communications during The Syringe Scare, Pepsi-Cola
When two separate reports of syringes found in Pepsi cans prompted the FDA to issue an advisory recommending that Pepsi drinkers empty their cans into cups before drinking in 1993, Pepsi-Cola Co. sprang into action.

Utilizing public relations principles to develop a four-step plan of action, Pepsi communicated with its publics and the FDA as new facts were discovered. First, the company granted on-site interviews and brought camera crews into the canning line to rule out the possibility of sabotage. To counteract the inevitable spreading of a local story to national news, the company develops several methods of dispersing information including news releases, video releases, trade letters, still photos, graphs and interviews.

Then, the Pepsi CEO appeared on every major network to share the message that the contamination was virtually impossible in the plants. Advisories were sent out twice daily while six media relations personnel were stationed to answer phone calls and inquiries from various media.

Throughout the crisis, FDA officials concentrated on finding the source of the contamination, while Pepsi focused on the safety and reliability of its packaging process. As a result, the scare ended in less than seven days. A very large crisis for the company was diverted by adhering the plan developed and being upfront about the situation.

Pepsi was able to return to normal sales within two months and in fact ended the season with an increase of seven percent in sales. In addition, 94 percent of consumers reported that Pepsi had handled the crisis responsibly and 75 percent said they felt confident in Pepsi products as a result.

• SEVEN DIMENSIONS OF CRISIS COMMUNICATION MANAGEMENT:A STRATEGIC ANALYSIS AND PLANNING MODEL
By James E. Lukaszewski, APR, Fellow PRSA
As Published in Ragan's Communications Journal, January/February 1999

http://www.e911.com/monos/A001.html

Communicating Strategically

Communication Theory
Most of the corporate communication theories have its roots in Aristotle’s work. Modern communication theory has three components: organization, constituency and messages that can be related to Aristotle’s speaker, the person to be addressed and the subject respectively. The Corporate Communication Strategy framework is circular rather than linear which proves that communication is an ongoing process rather than one with the beginning and an end.

Developing Corporate Communication Strategies

Setting an Organization Strategy
To develop an effective communication strategy the organization needs to define an organization strategy, which includes three subsets:

Determining objectives – The organization needs to reason out the need to communicate. It may aim to communicate messages to its employees with accuracy to avoid chaos or to its other constituencies. Response of the constituencies is important.
Determining Resource availability – Before communicating anything to the constituencies the organization needs to check the availability of resources like money, human resource and time.
Diagnosing the organization’s reputation – Organization needs to analyze what kind of reputation it has in the minds of the constituencies. Based on the kind of the reputation it can formulate the strategies.

Analyzing Constituencies
Organization needs to analyze who its constituencies are. Different companies have different constituencies based on the nature, size and reach of their business. Constituencies’ attitude towards the organization is also an important factor to be considered while formulating the strategies for communication. If the company has a good reputation it can be easier to reach the objectives and if it is lacking communication can be problematic. Constituencies’ attitude towards communication itself is also important. The topic to be communicated should be known to the constituencies’ that can make to information transfer easier.

Appropriate delivery of messages – proper channel, structure and response

The messages to be delivered should be through a proper channel, which the organization needs to decide and the approach of delivering the message too has to be determined. Various channels of communications are available for the organization to communicate. It has to make a choice depending upon the constituencies to be addressed. Structuring of the messages can be done in direct or an indirect way. The company needs to decide when to use the direct way and when the indirect one. However, the companies need to be direct with its constituencies as indirect communication can be confusing and difficult to understand. After communicating the message through a proper channel to the constituencies, organizations must access the result or take necessary feedback to determine whether the communication had the desired result. Based on the responses and feedback organization can make the necessary modifications or revise the message for easy understanding.


References and links

www.uwgb.edu/clampitp/Corpcomm/Introd. -%20Strategy%20for%20PR-CC.ppt

Internal Communications: Today’s Strategic Imperative - Dolphin, Richard R Journal of Marketing Communications; Sep2005, Vol. 11 Issue 3, p171

Communicators comment on changing communication strategies
Communication World, June-July, 1991

Experiences

Big Bazaar, a chain of hyper market in India is known for its low prices. Being a regular visitor I notice that the share has clearly defined its organization’s objective to increase the sale and offer the customer lowest prices possible. For this information to pass on to different constituencies the store advertises in newspapers and television. It takes regular feedback regarding its services from the customer and improves the service. It also keeps in mind the reputation a consumer has about the store and delivers services accordingly. The company website helps the external constituencies like the investors, government etc to know the company better.

Kingfisher airlines objective is to make the flying experience of the customer a memorable one, as it is shown in its tagline “Fly the Good times”. The company has the necessary resources like sufficient time, manpower and money to improve the in-flight experience of its customers. It has good reputation in the minds of its constituencies which makes it easier for the company to communicate. The company makes use of proper channels for advertisements regarding its services. It uses the direct approach to structure information. Customers can directly mail the CEO personally and he responds to their complaints. A feedback is taken regularly from the passengers during the flight to improve the services.

The Changing Environment for Business

American Business Environment

The business environment in the United States has changed drastically over a period. Still it never had a positive image in the minds of the people. Public has been critical towards events like questionable accounting practices, drug recalls, corporate scandals, CEO’s salaries, etc and the scrutiny has grown intense. These fraud practices have grabbed public attention towards businesses.

The creation of nation’s transcontinental rail system in 1860 created hazardous working conditions for steel workers. Industrial Revolution also contributed to harsh and dangerous working conditions for laborers and exploitation of women and children. In 1920, the sharp rise in the stock market resulted in economic instability. The stock market bubble finally busted in 1929, which led to the Great Depression. By the mid1940’s companies geared up for the Second World War. During 1960’s public trust towards the institutions started declining. From 1970 to 1980, American attitude towards business reached an all- time low. The decade that followed saw extremities in the stock market. In the new millennium, corporations face public allegations for their fraud business practices.

Role of Hollywood

Through the years, media and television has played a significant role in bringing to the common person the corporate news stories and messages. Many of the Hollywood movies like The China Syndrome, Wall Street, Erin Brockovich, etc can be related to the famous corporate scandals that have taken place over a period.

Global Village

Technological advancements have helped disintegrating national boundaries and uniting the world into one Global Village. Large corporations are dominating the economy of the world. As public is getting more and more involved with business, it is looking for companies to demonstrate genuine interest for the society.

How to Compete in a Changing Environment

Business today is all about surviving and growing in spite of cutthroat competition. Corporations need to adapt themselves in the changing business environment to survive in the market. Company managers need to scan the changing environment for the necessary threats and plan strategies to overcome them. Technology is ever changing. Companies need to update their technology for growth through innovation. Companies must adapt to changing environment without compromising their principles. The core values and beliefs are the strengths of an organization that lays its foundations. Companies should connect communication with its strategies through its structure. Managers are hesitant to hire specialist in communication. However, they fail to realize that corporate communication teams play a vital role in defining the mission and also communicating is to internal and external constituents. The success of business today depends on the way corporations adapt and modify themselves to the changing global environment.

References and links
“Changes in Business Cycles: Evidence and Explanations” - Christina D. Romer. http://www.nber.org/papers/w6948.pdf
“Why Good Communication is Good Business” – Marty Blalock
http://www.bus.wisc.edu/update/winter05/business_communication.asp

Experiences

•During my internship in reliance industry I had learnt about the way the company had evolved since its inception. Initially the employees were not provided with cell phones or internet to communicate with other departments of the company. But gradually with the help of information technology the company developed its own corporate intranet through which the employees can be in constant touch with each other and obtain necessary feedback regarding their work from their executives. The company also has a well designed website to communicate with the external constituencies. This proves that the company has adapted to the constant changing environment.

•The banks in India have become more accessible by customers through its communication network. Opening a bank account has become comparatively easier and the process is faster than it was earlier. Customers make use of ATM cards for cash withdrawals and other banking facilities. Transactions take place in a fraction of a second due to the advancements in information technology. Customer waiting time is almost nil. Internet banking is also gaining importance and the customers are getting accustomed to online transactions.

Internal Communications

Internal Communications and the Changing Environment

•The workplace today is different – tighter staffing, longer hours, greater workloads, and more emphasis on performance are the norms.
•The increasingly complex and highly competitive nature of today’s business environment puts greater pressure on employees and also calls for concerted effort in the area of internal communications.
“Internal communication is considered a vital tool for binding an organization, enhancing employee morale, promoting transparency and reducing attrition.”
•Today’s employees are increasingly demanding participation in the conversation that is driving the organizational change. In this light, communication should be a two-way process wherein employees feedback will be taken and the senior management act upon it
•Both the long-term and short-term fallout of ineffective internal communication can be damaging for an organization. It can start from the spread of rumors to disillusionment among employees to a gradual destruction of the company’s brand image. Worse, it may also lead to the slow death of the organization.
•Strong internal communications can increase workforce loyalty and productivity and thus will playa vital role in the company’s employee retention and overall success.

Importance of Internal Communications

•It provides information and encourages sharing by driving and supporting the organization’s short-term and long-term goals and objectives.
•It ensures that these initiatives are implemented and followed at a local level.
•It ensures that knowledge sharing and communication processes are part of the daily workflow across all functions of the business.
•It helps drive ownership and shared engagement.

Internal Communication Strategy

•The purpose should be clear.
•The timing and medium are important.
•Language must be used carefully.
•The tools of communication should be effective.
•When people are vulnerable, their tolerance for ambiguity decreases, so they need to be told clearly to feel secure.
•Communication has to be supported by action.

Organizing the Internal Communication Effort

•The best way to access the effectiveness of a company’s internal communication efforts is to determine what employees’ attitude are about the firm. This can be done through a communication audit. Based on audit results, communications professionals can design the right program for the organization
•Management can design the internal communication infrastructure to meet the needs of the employees’ from the audit.

Where Should Internal Communications Report?

•While the ultimate onus of internal communication rests with the HR, it is a shared responsibility since marketing, public relations, corporate affairs and others are all involved in the process..
•Large, multidivisional companies often have internal communications representatives within each division who repot jointly to the chief of staff for divisional management and to a firm wide corporate communication department.
•Internal communication should take place as a series of steps and not as an isolated event.
•Well-planned and delivered internal communication can drive the culture in an organization.
•The most important thing is the credibility of an information source.

An Effective Internal Communication Program

•Communicate Up and down – The best way to communicate with the employees is through informal discussions between employees and supervisors. Making work fun and enjoyable, respecting employees while involving them in decisions and empowering them, are ways in which companies can promote feelings that employees themselves are serving as catalysts for organizational change.
•Making Time for Face-to-Face Meetings – Employees should have access to senior management through regular, in-person meetings. Such meetings should provide employees with an opportunity to ask questions of management in an open forum.

Experience - During my internship at Reliance Industries, I noticed that the head of each department holds meeting with the department members twice a day. This gives employees a chance to ask questions and queries regarding their roles and responsibilities and receive a feedback for the same. Regular meetings like these reduce the gap between the management and the employees and help in improving the management-employee relationship.

•Communicate Online – Companies intranets serve as interactive platforms where employees can rally together and share their views on company programs, activities that contribute to building trust. An effective internal communication strategy should focus on both content and channel, recognizing that the use of simple channels offers the best potential for success.

For example - ICICI InfoTech has made its knowledge management (KM) portal a single window for communication; it includes presentations, information about new clients, and other company details. There is also an active discussion board. Employees can mark their attendance from the KM site, be it anywhere in the globe, including the client site.

•Create Employee-Oriented Publications – The most senior communication official and the CEO should take an interest in company publications to ensure that the employees are getting the real story about what is happening to the country and the industry in the most interesting presentation.

For example - Global consulting firm Arthur D. Little (ADL) publishes a quarterly management journal, called Prism, modeled on publications like the Harvard Business Review, and mails it to clients as well as to managers. In fact, a number of managers use Prism internally with their staffs to help build greater understanding of the firm's focus and specific skill sets. http://www.adlittle.com/insights/prism/

•Communicate Visually – Most large corporations have elaborate television studios with satellite capabilities staffed by professionals. Such sophisticated systems are the best mechanisms for communicating with the employees through the visual channels.
•Focus on Internal Branding - The concept of "employee empowerment" in the corporate world is about the need for a revolutionary, integrated, employee-oriented leadership philosophy, with an emphasis on transformation of an organization by tapping into the full potential of every employee.Focussing attention on employee branding will generate improved employee morale and ultimately, better results for the company.
•Consider the Company Grapevine – The company grapevine – an informal communication network including everything from private conversations between two employees to the latest anecdotes shared in the cafeteria – should be considered as much of a communication vehicle as a company’s house organ or employee meeting.

To retain employees companies have to attract, motivate and appreciate them. This can be done by improving internal communication. Team building, corporate parties, incentives, staff rewards, corporate breaks, etc. can benefit the company a great deal. Such corporate events help to improve workplace environment, employee morale and create a positive climate in the organization. While providing recognition, encouraging teamwork, noticing and rewarding their employees, companies ensure themselves more opportunities to retain their staff.

Thus investing in staff communication pays off. Corporate events such as team building days, incentive activities, and corporate celebrations improve communication between superiors and subordinates and boost relationships in teams, which leads to greater employee satisfaction and loyalty.

Media Relations

Media relations department is one of the most critical areas within any corporate communication function.

“Media are both the constituency and a conduit through which investors, suppliers, retailers and consumers receive information about and develop images of a company.”

The News Media

•The news media is omnipresent in our society.
•With the advent of television and the tremendous growth in Internet, what had once been the domain of the print medium in newspapers increasingly has become part of the visual realm through television sets and computers.
•Business has always had an antagonistic relationship with the press. This stems from the privacy corporations enjoyed in the early past.
•However, businesses today clearly realize the importance of good publicity.
•The business sector has become much more public today.










The growth of Business Coverage in Media

With the change in public attitude over the period, business news section in the newspapers has gained much recognition.

•With the change in public attitude over the period, business news section in the newspapers has gained much recognition.
•Today so many magazines and websites are devoted to the business new that it is nearly impossible to find a topic not thoroughly covered by one media outlet or another.
•24-hour business coverage is found on FOX, CNBC and CNN.
•Business news in the present times is exciting as it covers stories appealing to a wider audience.

For example

Forbes gains attention from a broad readership by publishing salaries of top entertainers http://www.forbes.com/2006/04/17/06ceo_ceo-compensation_land.html
While Business Week attracts an audience through features such as widely read rankings of business schools and corporate boards.






Experience – I get to know about the corporate world and the latest news stories related to corporations through T.V. channels like CNBC, NDTV Profit, and etc.These channels show expert opinions regarding various business issue. These news channels also accurately and timely capture stock market movements.

Building Better Relations with the Media

•To build better press relationships with the members of the media, organizations must take time to cultivate relationships with the right people in the media, which can be handled by the employees within the company’s media relations department or by public relations firms.
•The measure of success in the media relations business has been the amount of “ink”(coverage) that a company gets whether aided by in-house professionals or and outsider consultant.
•Getting lots of ink, which means many articles written about a company, may not have any value if it does not help the company achieve the communication objective.
•If your news does not reach to the appropriate media contacts, it will not make a sound. The best way to ensure your news is received is to utilize a newswire service. Newswires hold databases of tens of thousands of media contacts, have contractual arrangements with thousands of news organizations and websites, and can help to determine which of these should receive your release based on relevance, geography and industry.
•The news release should contextualize the news, story or event in a manner that gives the target audience an appreciation for the significance of the news without being overly promotional.

Conducting Research for Targeting Media

A typical media research operation includes the following steps:

1.The senior management needs to determine the objectives for a certain story. After realizing the goals, the company should begin to search for the right place to pitch the story.
2.The corporate communication professionals look in their files to find out who covers their industry and the company specifically.
3.The corporate communication department needs to determine what angle the reporter takes each time he covers a firm in the industry.
4.The firm’s corporate communication team needs to determine what kind of a reporter they are dealing with.

Responding to Media Calls

•Companies can strengthen their relationships with the media through the way they handle requests for information.
•The Communications staff should ensure that the requests are met in a timely manner and one that will reflect the best on the company. The steps involved to meet the needs are:

The steps involved to meet the needs are:

1.Calls should come into a central office that deals with all the requests for information from important national media.
2.The person who takes the phone should try to find out what angle the reporter is taking on the story.
3.The person responsible should try to get as much information as possible while being careful not to give in return any information that is not already public knowledge
4.The tone of the conversation should be as friendly as possible
5.The media relation professional should communicate honestly about the possibilities of arranging an interview or meeting other requests.

Preparing for Media Interviews

The executive who will be interviewed needs to be prepared for the actual meeting with the reporter. The following approach works best.

•The executive should be given a short briefing on the reporter or producer’s prior work so that he or she develops a clear understanding of the reporter’s point of view.
•Next, the executive should be given a set of questions that the reporter is likely to ask.
•In preparing for a television interview, a full-dressed rehearsal is essential.
•In addition to thinking what to say, the executive need to think about the most interesting approach to expressing these messages.
•Finally, the executive needs to be prepared to state the key ideas as clearly as possible at the beginning of the interview.

Building a Successful Media Relations Program

•To build a successful media relations program the organizations must be willing to devote resources to the effort.
•Involve Media Relations Personnel in Strategy – Companies should involve the most senior corporate communication executive in the decision-making process.
•Develop In-House Capabilities – Companies do not consider media relations important enough to hire professional staff in this area but for long-term approach, it is beneficiary to develop an in-house media relations staff.
•Use outside Counsel Sparingly – Companies should hire outside counsel for advice or information, to help with a major story or when a crisis hits.

Developing an Online Media Strategy

•Internet has become a valuable tool that enables companies to get press releases out quickly and broadly.
•Companies’ media strategies need to be augmented with tactics for dealing with the new dimension of coverage. ·Because of the widespread reach of the internet, large number of companies are paying more attention to the web realizing that bad publicity online can threaten their bottom line.

“Blogs are publicly accessible public website that serves as a source of commentary, opinion and information on a variety of topics.”

Getting the organization visible on blogs is an increasingly important way to reach not only the buyers, but also to reach the mainstream media that cover the industry, because reporters and editors read blogs for story ideas.


"Blogging gives me a place in the media community to stand out," says John Blossom, president of Shore Communications Inc., a research and analysis company. Blossom has been blogging since March 2003 and writes about enterprise publishing and media markets. "In ways that I didn’t expect, my blog has allowed me to become a bit of a media personality. I have been picked up by some big bloggers, and that makes me aware that blogging is a terrific way to get exposure, because the rate of pickup and amplification is remarkable. The press reads my blog and reaches out to me for quotes. Sometimes a reporter who does not even speak with me quotes me in the media. For example, a reporter from the Financial Times recently picked up a quote and used it in a story—based on my blog alone."

Experience – Google’s blog provided me lot of information regarding the company during my research. Thus companies in this era of technology should make use of this tool to reach its constituencies.
http://googleblog.blogspot.com/

Handle Negative News Effectively

•When a company does stumble upon bad news about itself the communications department should quickly access the potential damage that the news might cause.
•Company lawyers should be consulted to discuss what legal stance the company might need to take.
For example, when Pepsi Co, India was faced with allegations regarding the pesticide residues found in the drink, the media department used proper channels and communicated to the consumers regarding the safety of the product.

Corporate Advertisements

Corporate advertising

"Corporate advertising can be defined as paid use of media that seeks to benefit the image of the corporation as a whole rather than its products or services alone”.

Corporate Advertising
•Brands the company
•The corporate communication area or the CEO bears the expenses

Product Advertising
•Brands the products
•Marketing Department bears the expenses

Samsung Product Advertisement for still cameras









Three categories of corporate advertising are :
1. Image Advertising
2. Financial Advertising
3. Issue Advocacy

Advertising to Reinforce Identity or Enhance Reputation

•Companies use corporate advertising to strengthen their identities following structural changes.
For example, after split up in the Reliance Group, Anil Ambani used ads to strengthen his company’s identity as “Reliance Communications” - Anil Dhirubhai Ambani Group (ADAG)

•Image advertising allows companies to differentiate themselves from the rivals. •Image advertising helps companies to reposition its image in the minds of its constituencies.

Advertising to attract investors

•Companies use corporate advertising to enhance their image in the financial community and to stimulate interest in a company’s stock among potential investors.
•Strong financially oriented corporate advertising campaign can increase the price of the company’s stock.
For example, Wipro’s financial ad to attract investors

Advertising to influence opinions

•Companies use issue or advocacy to respond to external threats from either government or special interest groups.
For example, Pepsi Challenge - The challenge was designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups: one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. The results of the test leaned toward a consensus that more Americans preferred Pepsi.

Who uses corporate advertising and why?

•Larger corporations use corporate advertising to establish a coherent reputation out of a variety of activities, products and services.
•Companies within more controversial industries: Cigarette companies, oil companies, pharmaceuticals and other large industrial companies that have image, health and pollution problems to deal with use corporate advertising.
•To increase sales - Corporate advertising is meant to do things that eventually boost sales but results cannot be direct or immediate.
•To create a stronger reputation - Corporate advertising creates goodwill and enhances reputation by letting constituents know about the organization, particularly if it does beneficial things that people might not be aware of.
•To recruit and retain employees - Corporate advertising campaigns helps companies attract the best and brightest work force at both the entry level and senior positions and creates an excitement among both potential and current employees.

Experience - As a consumer, advertisement influences my buying behavior largely. The ads in the magazines related to new products in the markets or improved versions of current products keeps me informed. A corporate ad redefines the image of a company in my mind as I get to know the values, which lay their foundations.
The controversy that surrounded Pepsi regarding its quality, made me reluctant to opt my favorite beverage for quite a few months. However, after the TV ad that featured the CEO of Pepsi Co, India addressing the nation regarding the safety of the product made me think again regarding my decision and I started consuming Pepsi again. Thus, ads play a very crucial role in the minds of the constituencies and affect the preferences and buying behavior.

Corporate Identity, Image and Reputation

"Reputation problems grow like weeds in a garden," Davis Young wrote in his book Building Your Company's Good Name. "Direct and indirect costs escalate geometrically."

Corporate Identity

“A company’s identity is the visual manifestation of the company’s reality as conveyed through the organization’s name, logo, motto, products, services, buildings, stationery, uniform and all other tangible pieces of evidence created by the organization and communicated to a variety of constituencies”.

Corporate identity can be broken down into four component parts:

•Corporate Strategy - Strategy is the overall plan that determines the company's product/market scope and the policies and the programs it chooses to compete in its chosen markets.
•Corporate Culture - Corporate culture is the shared values and beliefs that the organization's members hold in common, as they relate to each other, their jobs, and the organization.
•Organizational design - Organizational design refers to the fundamental choices top managers make in developing the pattern of organizational relationships.
•Operations - It is the aggregate of all the activities the firm engages itself, to affect its strategy.

All the components become a part of the reality of the corporation and can influence its identity in a wide variety of ways.However, consistency should be maintained across all the identity elements from logos and mottos to employee behavior. Thus corporate identity is the reality of the corporation—the unique, individual personality of the company that differentiates it from other companies.

Corporate Image

“Corporate image describes the manner in which outsiders perceive a company, its activities, and its products or services. It is the organization as seen from the viewpoint of its constituencies”.

•In a competitive business climate, many businesses actively work to create and communicate a positive image to their customers, shareholders, the financial community, and the public.
•A corporate image should be consistent with the positioning of the company's product, product line, or brand. Any inconsistency in the overall corporate image and the positions of individual product offerings will be confusing to the constituencies.

Experience – If I as a customer prefer vegetarian food and choose KFC restaurant that has the image of serving the best chicken, which is noticed in its name, the company’s image and ads will not convince me in making my choice.

•Corporations should realize that its image in the eyes of the various constituencies is important for the company. The image that various constituencies have of the company will influence their willingness to either provide or withhold support. Thus, if customers develop a negative perception of a company or its products, its sales and profits assuredly will decline.
•A company’s image with its employees is particularly important because of the vital role they play with the company’s other constituencies

Building a solid reputation

•Reputation differs from image because it is built up over time and is not simply a perception at a given point of time.
For example, TATA Group of Industries

•Reputation differs from identity because it is a product of both internal constituencies, whereas internal constituencies construct identity. Reputation is based on the perception of all the constituencies.
•Importance of reputation is evident from several prominent surveys and rankings that seek to identify the worst and best players in the game. For example, Fortune’s “Most Admired” list; Business Week and Interbrand’s “Best Global Brands” ranking, etc.
•Reputation can help companies to weather crises more effectively.
For example, Coco - Cola’s contamination cases in India in 2004 that came and went without damaging the firm in the long term.

Corporation’s Social Responsibility

•Companies today need to consider social responsibility and corporate philanthropy when thinking about its own reputation.
•Corporations need to act as “good corporate citizens”.

For example, GE’s support for environment protection moment through its "ecoimagination" project.
Coors Beers in the US is a charter member of “Two Percent Club”, a group of companies that pledge to give two percent of pre-tax profits back to the community. http://www.coors.com/part_community_funding.asp

•Thus to enhance its reputation company’s should conduct programs for the welfare of the social communities.

Coca-Cola an “eKo” friendly company. http://www.coca-colaindia.com/eko/default.asp