Chapter Four:
Today’s
Practice –
Departments
& Firms
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Overview
Public relations departments
 Line and staff functions
 Public relations firms

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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
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Department Names
 PR
vs. corporate communications or
communications
 Other names
 Corporate
etc.
relations, investor relations, public affairs,
Organization of Departments
 Leader titles
 Reporting hierarchy
 Size of departments
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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
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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



Compulsory-advisory: Management is required to listen to public
relations’ perspective before acting
Concurring authority: PR and others must agree on an action


Purely advisory practitioners are often ineffective
This has benefits and detriments for PR
Command authority: PR can require a particular action
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Sources of Friction
within Organizations

Legal Department


Human Resources Department


Differences regarding employee communications
Advertising Department



Differences on public statements
Competing for resources
Philosophical differences
Marketing Department

Focuses on one public: current or prospective
customers
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Public Relations Firms
Trend toward outsourcing needs to PR firms
 Firms can complement in-house expertise.


Firms offer diverse services.
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.

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Firm Structure
Depends on size of firm
 Small firm may only have owner and one or two
associates
 Large firms have an extended hierarchy








President
Executive VP
Senior VP
VP
Account supervisor
Account executive
Assistant account executive
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Deciding About Using a Firm
Pros of using a firm
Objectivity
 Expertise
 Resources
 Reach
 Problem-solving skills
 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

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Fee Structures of Firms

Hourly plus Out-of-Pocket

Most widely used among large firms
Retainer
 Fixed by Project
 Pay for Placement


Seldom used
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Allyn & Bacon 2008