Communication in OrganizationsGary L. KrebsGeorge Maso.docx

Communication in
Organizations
Gary L. Krebs
George Mason University
Bridgepoint Education, Inc.
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Contents
About the Author xi
Acknowledgments xiii
Preface xv
Chapter 1
Introduction to the Process of
Organizational Communication 1
Introduction 2
1.1 Communication in Modern Organizational Life 3
1.2 Organizations and Organizing 4
1.3 Hierarchical Levels of Organizing 6
Levels of Communication Approach 7
Power Approach 7
1.4 Interdependence and Synergy In Organizational Life 8
Formal Communication: Downward Communication 9
Formal Communication: Upward Communication 10
Formal Communication: Horizontal Communication 11
Informal Communication 11
The Perceptive Organizational Communicator 13
The Relationally Competent Organizational Communicator 14
The Team-Building Organizational Communicator 15
The Culturally Sensitive Organizational Communicator 16
Strategic Leadership in Organizations 18
Strategic Use of Media and Technologies in Organizational Life
20
Strategic Organizational Development 22

Strategic External Organizational Communication 23
iii
CONTENTS
Summary 25
Discussion Questions 26
Key Terms 26
Chapter 2
Human Communication Processes and Principles 29
Introduction 30
2.1 Human Communication Defined 31
What Are Messages? 31
What Are Meanings? 32
Encoding and Decoding 33
2.2 Key Principles of Human Communication 34
Principle 1: Communication Is a Process 34
Principle 2: Communication Is Irreversible 34
Principle 3: Communication Is Transactional 35
Principle 4: Communication Includes Both Content and
Relationship
Dimensions 35
2.3 Verbal and Nonverbal Messages In Organizational Life 37
Verbal Communication Systems 38
Jargon 38

Denotative and Connotative Meanings 38
Overcoming Challenges 39
Semantics, Syntactics, and Pragmatics 39
Nonverbal Communication Systems 40
Paralinguistics 40
Oculesics 41
Kinesics 42
Proxemics 43
Artifactics 44
Tactilics 45
Chronemics 46
2.4 Coordinating Verbal and Nonverbal Communication 47
Summary 50
Key Terms 51
iv
CONTENTS
Chapter 3
Individual Factors in Organizational Communication 53
Introduction 54
3.1 Intrapersonal Communication and the Psychology of Self 55
Self-Image 55
Extroversion and Introversion 56
Our Psychological Set: Beliefs, Attitudes, and Values 57

Locus of Control and Self-Efficacy 60
Empathy 60
Emotional States 60
Making Use of Psychological Factors 61
3.2 The Selective Perception Process 63
Summary 68
Key Terms 69
Chapter 4
Relational Processes in Organizational Life 71
Introduction 72
4.1 The Complexities of Interpersonal Communication 73
The Centrality of the Dyad 74
The Implicit Contracts That Guide Interpersonal Relationships
76
4.2 Relationship Initiation, Development, and Maintenance 78
Relationship Initiation: Self-Disclosure and Reciprocity 78
Relationship Development and Maintenance 79
Complementary and Parallel Relationships 80
4.3 Key Relational Communication Skills 82
Active Listening 82
Self-Disclosure Skills 83
Affection, Control, and Inclusion 83
Affection 84
Control 84
Inclusion 85
v

CONTENTS
Co-Orientation 87
Interpersonal Conflict Management Skills 87
Step 1: Focus on the Other Person’s Point of View 88
Step 2: Avoid the Hostility Trap and Stay Focused on the Issues
at Hand 88
Step 3: Look for Commonalities between Your Perspectives 88
4.4 Ethical Relational Communication in Organizational Life 89
Summary 91
Key Terms 92
Chapter 5
Group Processes in Organizational Life 95
Introduction 96
5.1 Types of Groups in Organizations 97
5.2 Challenges to Working in Groups 97
5.3 The Value of Groups in Organizational Life 98
To Address Important, Complex, and Challenging Problems 98
To Promote Responsible and Ethical Decision Making 99
To Brainstorm 99
5.4 Groups as Social Systems: Systems Theory 101

Synergy and Nonsummativity 101
Hierarchy 102
5.5 Group Networks 103
Personal Networks 103
Leadership Roles 104
Support Roles 105
5.6 Building Effective Work Teams 105
5.7 Task and Maintenance Functions 107
5.8 Managing Group Conflict 110
Guidelines for Managing Group Conflict 110
Metacommunication 111
5.9 Decision Making in Groups 111
Summary 116
Key Terms 117
vi
CONTENTS
Chapter 6
Culture and Organizational Communication 121
Introduction 122
6.1 Organizational Culture 123

Strong Culture Organizations 123
Communicating Organizational Culture 126
6.2 Organizational Communication Across Cultures 128
Types of Cultural Identity 128
Cultural Norms 129
6.3 Cultural Variation and Organizational Communication 130
Cross-Cultural and Multicultural Approaches to Intercultural
Communication 130
The Cross-Cultural Communication Approach 130
The Multicultural Communication Approach 132
Combining Approaches 132
Discovering Culture through Organizational Communication
134
6.4 Valuing Diversity to Promote Multicultural Synergy 135
The Cultural Ideologies Model 136
The Ideology of Cultural Segregation 136
The Ideology of Naïve Integration 137
The Ideology of Pluralistic Integration 137
Summary 140
Key Terms 141
Chapter 7
Effective Organizational Leadership 143
Introduction 144
7.1 Leadership and Communication 145
Natural-Born Leaders? 146

The Leadership Hierarchy 146
Vertical Communication Channels 148
Horizontal Communication Channels 149
7.2 Formal and Informal Leadership 149
The Grapevine 150
Conflicting Messages 151
7.3 Management versus Leadership 152
vii
CONTENTS
7.4 Leadership and Credibility 153
Expertise 153
Trustworthiness 154
Charisma 154
7.5 Verbal and Nonverbal Communication and Leadership 156
7.6 Key Models of Leadership 157
The Theory X and Theory Y Models of Leadership 158
The Leadership Styles Model 159
The Situational Model of Leadership 160
The Task and Relationship Models of Leadership 160
Therapeutic Communication and Leadership 163
Summary 166
Key Terms 167

Chapter 8
Organizational Media and Information Technologies 171
Introduction 172
8.1 Mediated Channels 173
Advantages of Mediated Channels 173
Disadvantages of Mediated Channels 174
8.2 Print and Text-Based Media 176
Encoding and Decoding 177
Time and Attention 178
Selective Perception 178
The Importance of Reading Skills 179
The Importance of Design and Message Testing 179
Improving Organizational Writing 181
8.3 Telephonic Media 182
Advantages to Telephonic Communication 182
Disadvantages to Telephonic Communication 182
Telephone Etiquette 183
8.4 Video-Based Media 184
Videoconferencing 184
The Effectiveness of Video Programs 185
8.5 Computer Media 185
Company Websites 186
Special Issues Related to Organizational Computing 186
Computer Etiquette and Security 188
Social Media 188
viii

CONTENTS
8.6 Mobile Media 189
8.7 Media Convergence 189
Summary 193
Key Terms 194
Chapter 9
Communication and Organizational Development 197
Introduction 198
9.1 Balancing Innovation and Stability in Organizational Life
199
9.2 Weick’s Model of Organizing and Organizational
Adaptation 202
Rules and Communication Cycles 203
Requisite Variety 205
Communication Phases 205
Enactment Phase 206
Selection Phase 206
Retention Phase 207
Feedback Loops 207
Gathering Organizational Intelligence 209
9.3 Communication and the Process of Organizational
Development 210
The Nature of Organizational Development 211

Organizational Reflexivity 211
Performance Gaps and Slack Resources 212
Being Proactive 213
9.4 Organizational Development and Organizational
Effectiveness 213
Output Measures of Effectiveness 213
Process Measures of Effectiveness 214
Combining Productivity and Process 215
Summary 218
Key Terms 219
Chapter 10
Communicating within Interorganizational Fields 221
Introduction 222
10.1 The Interorganizational Field 223
Information-Gathering Activities 224
Information-Giving Activities 224
ix
CONTENTS
10.2 External Organizational Communication Activities 225
Public Relations 225
Lobbying 227
Marketing and Advertising 227

10.3 The Small-World Phenomenon 231
10.4 The Relevant Environment 231
10.5 The Interorganizational Field and Systems Hierarchy 233
10.6 Boundary-Spanning Activities 234
10.7 Relationship Development and Interorganizational
Communication 236
10.8 Ethical Dimensions of External Organizational
Communication 237
Summary 240
Key Terms 242
Glossary 245
Photo Credits 261
References 265
x
About the Author
Gary L. Kreps is a University Distinguished Professor and Chair
of the Department of
Communication at George Mason University. He teaches
undergraduate and graduate

courses in communication research, health communication,
organizational communica-
tion, consumer-provider health communication, health
communication campaigns, and
E-health communication.
Dr. Kreps received his BA and his MA in Communication from
the University of Colo-
rado, Boulder, and his PhD from the University of Southern
California.
Dr. Kreps’s areas of expertise include health communication
and promotion, informa-
tion dissemination, organizational communication, information
technology, multicultural
relations, risk/crisis management, health informatics, and
applied research methods.
He is the director of the Center for Health and Risk
Communication, serves on the govern-
ing board of the Center for Social Science Research, and is a
faculty affiliate of the National
Center for Biodefense and Infectious Diseases, the Center for
Health Policy & Ethics, the
Center for the Study of International Medical Policies and
Practices, the Climate Change
Communication Center, the Center for Consciousness &
Transformation, and the Center
for Health Information Technology at George Mason.
Prior to his appointment at Mason, he served for five years as
the founding chief of the
Health Communication and Informatics Research Branch at the
National Cancer Institute
(NIH), where he planned, developed, and coordinated major new
national research and

outreach initiatives concerning risk communication, health
promotion, behavior change,
technology development, and information dissemination to
promote effective cancer pre-
vention, screening, control, care, and survivorship. He has also
served as the founding
dean of the School of Communication at Hofstra University in
New York, executive direc-
tor of the Greenspun School of Communication at UNLV, and in
faculty and administra-
tive roles at Northern Illinois, Rutgers, Indiana, and Purdue
Universities.
His published work includes more than 350 books, articles, and
monographs concerning
the applications of communication knowledge in society.
xi
Acknowledgments
The publisher would like to thank the many reviewers who
provided helpful feedback
on the manuscript. Also, we would like to especially thank Mark
Braun of Augustana
College and David Lapakko of Augsburg College for their
editorial assistance including
writing the Organizations in Action boxes.

xiii
Preface
This text provides a comprehensive review and analysis of the
multifaceted roles per-
formed by communication in modern organizational life. It
takes a strongly applied focus
on specific communication roles, processes, and policies that
can inform organizational
practices and promote desired individual and organizational
outcomes.
Case studies appear at the end of each chapter that provide the
reader with an opportu-
nity to see chapter concepts in action. These case studies
examine communication con-
cepts in organizations from a wide variety of fields including
accounting, real estate,
software development, higher education, student groups,
community organizations, and
even the National Football League. In addition, each chapter
includes Organizations in
Action boxes that highlight businesses, agencies, and other
organizations such as NASA,
BP, Apple, Costco, Twitter, and others.

Outline
Chapter 1: Introduction to the Process of Organizational
Communication
This chapter examines the powerful roles that communication
performs in modern orga-
nizational life. It describes the complexities of organizational
communication processes
and the need for strategic communication to build efficient,
effective, adaptive, and ethical
organizational environments.
Chapter 2: Human Communication Processes and Principles
This chapter describes the key elements, processes, and
channels for organizational com-
munication. Basic interdependent hierarchical levels of
organizational communication
are delineated, including intrapersonal communication,
interpersonal communication,
group communication, multi-group communication, and
interorganizational communi-
cation. The chapter explores the coordinated use of verbal and
nonverbal communication
as a critical component of communication competence. The
chapter also examines coordi-
nated use of multiple communication channels from face-to-face
interaction to computer-
mediated communication.
xv

PREFACE
Chapter 3: Individual Factors in Organizational Communication
This chapter explores the key individual, intrapersonal,
psychological, and personal-
ity factors organizational participants bring to organizational
life and that influence
organizational communication. Self-image is examined as a
critical individual factor
that influences organizational communication. The process of
selective perceptionis
examined to elucidate the idiosyncratic ways that individuals
perceive organizational
phenomena. The individual processes of encoding (creating
messages) and decoding
(interpreting messages) are examined to illustrate the
idiosyncratic aspects of human
communication.
Chapter 4: Relational Processes in Organizational Life
This chapter focuses on the centrality of interpersonal
relationships and relationship
development as the basic building blocks in establishing
effective, cooperative, and ethi-
cal organizations. The process of relationship initiation,
development, and maintenance is
explored. Strategies for developing effective listening skills as
well as giving and receiving
feedback will be described. Key relational communication
topics such as self-disclosure,
adaption, co-orientation, relational balance, reciprocity, and
conflict managementare be
explored.

Chapter 5: Group Processes in Organizational Life
This chapter examines the ubiquitous nature of group work in
organizational life. The
many complexities of and challenges to working effectively in
groups within organiza-
tions are described. Team building and teamwork are carefully
examined, particularly
within the context of group decision making. The emergence
and evolution of unique
group roles is explored within the context of personal,
professional, and social networks.
Group processes and roles needed for making good group
decisions and reaching impor-
tant organizational outcomes are explored.
Chapter 6: Culture and Organizational Communication
This chapter examines the pervasive influences of culture on
communication in organi-
zations. The growing diversity of organizational life and the
need for harmonious inter-
cultural relations is explored. The complexity of cultural
variation will be explicated to
identify the many levels of culture that influence expectations
and activities. National,
ethnic, racial, religious, socioeconomic, geographic, age-based,
and gender-based cul-
tural influences on organizing will be explored. The
communication factors that can be
used to help establish effective communication climates and
organizational cultures are
described. Communication strategies for enhancing
organizational cultures to promote
cooperation and satisfaction in organizational life are described.

xvi
CONTENTS
Chapter 7: Effective Organizational Leadership
This chapter provides a careful examination of the development
of effective organizational
leadership skills. Differences between management and
leadership skills are explored.
Key models for leadership emergence and strategy are
described, including the impor-
tance of developing situational leadership skills for meeting the
unique and changing
demands of organizational life. Formal and informal leadership
are described as factors
within formal and informal organizational communication
systems. Strategies are given
for helping leaders coordinate formal and informal
communication systems, including
responding to rumors and the grapevine.
Chapter 8: Organizational Media and Information Technologies
This chapter examines the growing dependence on a broad range
of traditional and new
communication media and technologies in modern
organizational life. Relative strengths
and deficits of using different communication channels and
media are described to help
students make informed decisions about how best to use

communication tools to achieve
organizational goals. Strategies for coordinating the use of
traditional communication
with newer digital, mobile, and social media are provided.
Strategies for building techno-
logically adaptive organizations that are prepared for the
development and introduction
of new communication media, technologies, and software are
described.
Chapter 9: Communication and Organizational Development
This chapter will examine the importance of using
organizational communication pro-
cesses to evaluate organizational performances and direct
organizational renewal. The
use of strategic feedback mechanisms to identify deficits and
emerging problems in orga-
nizing processes will be described. The process of ongoing
organizational development
will be described as a strategy for adapting to emerging
organizational constraints and
enhancing organizational processes and policies.
Communication intervention strategies,
including introduction of new training programs, internal public
relations efforts, job
redesign, reinvention, restructuring, and consolidation are
examined as unique opportu-
nities for improving organizational performance.
Chapter 10: Communicating within Interorganizational Fields
This chapter examines the importance of coordinating
organizing activities with other
relevant organizations within the larger interorganizational
field. Typical constituent

members of interorganizational fields are described, including
supplying organizations,
regulating organizations, competing organizations, as well as
organizational customers
and other stakeholders. Strategies for establishing effective
cooperative relationships with
representatives of these interdependent organizations are
examined.
xvii
Learning Objectives
What We Will Be Investigating:
• Examine the interdependent roles of internal and
external channels of communication in modern
organizational life.
• Identify the variety of relevant external
information sources that typically influence
organizational
activities.
• Examine how open systems theory describes the
need for external organizational communication
and illustrates how exchangesbetween organizations and

environments enable achievement of
key goals at multiple levels of organizing.
• Examine the systems transformation process used to
develop organizational inputs into desired
outputs.
• Identify the key components of the
interorganizational field and typical members of
relevant
organizational environments.
• Identify strategies for building effective cooperative
relationships with representatives of interde-
pendent external organizations, including examination of
boundary-spanning organizational roles.
• Understand how strategic organizational
communication activities such as marketing, public
relations,
advertising, and lobbying are used to promote
effective external organizational communication.
• Examine the ethical dimensions of
interorganizational communication.
Chapter 10
Communicating within
Interorganizational Fields
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CHAPTER 10Introduction

The ability to express
an idea is well nigh
as important as the
idea itself.
—Bernard Baruch
Chapter Outline
10.1 The Interorganizational Field
Information-Gathering Activities
Information-Giving Activities
10.2 External Organizational Communication
Activities
Public Relations
Lobbying
Marketingand Advertising
10.3 The Small-World Phenomenon
10.4 The Relevant Environment
10.5 The Interorganizational Field and Systems
Hierarchy
10.6 Boundary-Spanning Activities
10.7 Relationship Development and
Interorganizational Communication
10.8 Ethical Dimensions of External
Organizational Communication
Introduction

The primary focus of organizational communication study is on
internal communication.
In fact, most of the chapters in this book have focused on
internal organizational com-
munication, such as ways in which members of work groups
coordinate efforts, ways
in which communication is used to develop meaningful
relationships within organiza-
tions, and ways in which leaders interact with workers.
However, there is another side to
organizational communication that bridges the organization to
its external environment:
external organizational communication.
Internal and external channels of communication are tightly
connected and interdepen-
dent. In Chapter 9 we described how internal and external
channels of communication
are used to help promote a balance between innovation and
stability in organizations. We
also described how internal and external channels of
communication are used to inform
organizational development efforts. But there is much more to
external communication in
modern organizational life and the interdependence between
internal and external chan-
nels of organizational communication, which we will examine
in this chapter.
External organizational communication targets a varied group of
external constituents
(including suppliers, buyers, shareholders, community members,
and so on) and involves
a broad range of interrelated organizational activities such as
the following:

• Public relations professionals emphasize the importance of
external organiza-
tional communication with a focus on developing
communication activities and
programs that promote a positive, externally recognized
organizational identity
and building strong external relations between organizational
stakeholders.
222
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CHAPTER 10Section 10.1 The Interorganizational Field
• Lobbyists endeavor to build relationships and provide
information to promote
cooperation with and influence the activities and legislative
efforts of key policy
makers.
• Marketers develop organizational strategies for
communicating about and posi-
tioning organizations and their products and services with key
external audiences.
• Advertisers develop specific communication campaigns and
programs for pro-
moting organizational products and services with customers.
Often, these external communication activities are grouped
together within an organiza-
tion, sometimes along with internal organizational
communication functions, under the

broad title of strategic organizational communication.
This chapter examines the importance of coordinating activities
with other relevant
organizations within the larger interorganizational field. We
describe typical constitu-
ent members of interorganizational fields, including supplying
organizations, regulating
organizations, competing organizations, as well as
organizational customers and other
stakeholders. We also examine strategies for establishing
effective cooperative relation-
ships with representatives of these interdependent
organizations, including boundary-
spanning organizational activities (communication exchanges
between organization
members and relevant others from outside the organization), and
the use of marketing,
public relations, advertising, and advocacy campaigns. The
chapter closes with a case
study that illustrates the strategic use of communication to
establish and maintain effec-
tive interorganizational relations.
10.1 The Interorganizational Field
Every organization operates within a larger environment of
organizations. This orga-nizational environment is often
referred to at the interorganizational field. The
interorganizational field includes all the organizations that are
relevant to a particular
organization. This can include, among others:
• organizations that supply raw materials to the organization,
• government agencies and professional associations that
regulate organizational

activities,
• consumer groups,
• competing organizations,
• unions, and
• organizational partners.
It is important for organizational representatives to coordinate
organizational activities
with these members of the interorganizational field. Just as
organizational members must
use communication to establish cooperation with one another,
members of interorganiza-
tional fields also use communication to elicit
interorganizational cooperation.
Two primary organizational communication activities are
essential to coordinating efforts
between organizations within the interorganizational field:
information-gathering activi-
ties and information-giving activities. Let’s examine each.
223
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CHAPTER 10Section 10.1 The Interorganizational Field
Information-Gathering Activities
Information-gathering activities (sometimes referred to as
intelligence gathering, research,
or due-diligence functions) occur when boundary-spanning
organizational actors use their

interorganizational connections to keep up with changes within
the environment that are
relevant to their organizations. For example, advance-planning
representatives for the
Olympic Games Site Selection Committee are sent out to collect
information about poten-
tial Olympic Game sites to help determine whether the sites
have the requisite qualities,
resources, and venues needed to adequately host the Olympic
games. These advance-
planning representatives interact with local government
officials, financial backers, facility
managers, and others to gather the information needed to make
an informed recommen-
dation about whether to award the Olympic games to a
particular site.
There are many times in organizational life when information is
needed from the exter-
nal organizational environment to guide planning and decision
making. Additionally,
information from external sources can alert organization
members about emerging orga-
nizational constraints and opportunities. For example,
information about new competing
products can alert the organization to the need to innovate its
own product line to main-
tain its market share. Information about new technologies might
let organizational lead-
ers know about the opportunity to develop new strategies for
increasing organizational
efficiency and productivity.
Information-Giving Activities
Information-giving activities (sometimes referred to as

publicity, lobbying, or sales func-
tions) occur when boundary-spanning organizational actors
provide strategic information
to key representatives of external organizations within the
environment to elicit support
and coordination for their own organizations. For example, call
center specialists at the
Cancer Information Service (CIS), operated by the National
Cancer Institute, answer
questions from callers on their toll-free telephone hotline (1-
800-For-Cancer) about cancer
diagnoses, treatments, clinical research, and how to cope with
side effects from cancers
and cancer treatments. The goal of the CIS is to reduce the
national cancer burden by
providing members of the public who are confronting cancer
with relevant information
about early detection, diagnosis, treatment of cancers, as well as
about successful cancer
survivorship so these individuals can make informed decisions
about the best health care
and quality of life choices.
It is imperative for the CIS specialists to provide callers with
timely, accurate, and rel-
evant information to help callers cope with the many
uncertainties and challenges of deal-
ing with cancer. The specialists are carefully trained to
communicate effectively over the
phone with callers from different backgrounds, education levels,
and levels of health lit-
eracy. The specialists are provided with computer databases
with cancer information, as
well as scripts they can recite to callers to help answer common
questions. The specialists
can also mail or email relevant text to callers to provide them

with written transcripts
of the health information they need. The information-giving
functions of the CIS help
the National Cancer Institute achieve its goal of reducing the
national cancer burden by
providing evidence-based health information to individuals
coping with cancers so these
callers can make good decisions about managing the disease.
Relevant cancer informa-
tion from the CIS can help callers make good decisions about
effective cancer prevention,
224
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CHAPTER 10Section 10.2 External Organizational
Communication Activities
early detection, treatment, and survivorship, helping to reduce
cancer incidence, morbid-
ity, and mortality. Information-giving activities serve a similar
role in for-profit organiza-
tions where consumers call in for product information and
assistance.
10.2 External Organizational Communication Activities
As already noted, external organizational communication
encompasses a broad
range of activities including public rela-
tions, lobbying, marketing, advertising,
and more. Such strategic communica-
tion includes the broad range of internal

and external communication functions
in modern organizational life. Although
many of the external communication
activities tend to overlap, we will exam-
ine some of the major avenues for exter-
nal organizational communication in this
section to give you a flavor for the ways
that external channels of communication
are used. We’ll start with public relations.
Public Relations
Public relations (PR), sometimes referred to as public affairs
communication, is a term used
to cover an integral area of organizational communication. PR
is used to coordinate inter-
actions between organizations and key audiences (publics).
Although the primary focus of
public relations activities is typically on coordinating
organizational activities with external
audiences (such as with customers, regulators, and competitors),
there is also an internal
communication dimension to public relations. That is, PR
professionals also focus on com-
municating effectively with organizational members, who
comprise a key internal public
for organizational communication. For example, PR
professionals often conduct employee
surveys to identify internal organizational issues and produce
company newsletters to
keep organization members informed about and involved with
organizational activities.
Public relations has been used to describe many different
important organizational commu-
nication activities including corporate publicity, shareholder

relations, financial relations,
environmental and consumer affairs, internal communications,
labor relations, community
affairs, media relations, government relations, issues
management, advertising, branding,
corporate identification, and corporate advocacy (Grunig &
Hunt, 1984). Public relations
activities are often quite complex and involve careful planning
and research. For example,
crisis-management activities designed to minimize harm to an
organization and to its pub-
lics during emergencies, such as oil spills or chemical
contamination, generally involve
coordination of many individuals representing media outlets,
government agencies, con-
tractors, consumer groups, first-responder groups, and members
of scientific communities.
It is important for crisis-management communicators to provide
relevant, accurate, and
timely information that enables those affected in emergencies to
respond effectively to the
What does the Nike logo communicate to its
external environment?
225
Kre66464_10_ch10_p221-244.indd 225 11/3/11 2:45 PM
situation, as well as to demonstrate the responsibility of the
organization in addressing the

crisis situation. Poorly handled crises can destroy
organizational reputations, while well-
handled crisis communication can enhance public respect and
loyalty to organizations.
Organizations in Action
A Study in Crisis Management
Today, every time you open up a bottle of
aspirin, or a jar of mustard, or a jug of
pancake syrup, what
you’re doing—and how you are doing it—is
directly connected to one of the most famous
examples
of crisis management in U.S. history: Johnson &
Johnson’s handling of the Tylenol scarein 1982.
As noted in this chapter, crisis management
activities are designed to minimize harmto an
organization and its publics, and the handling of
the Tylenol scareis quiteliterally a textbook
example
of how firms need to proceed in such an
emergency.
In October 1982, seven people in the
Chicago area were reported dead shortly after taking
extra-
strength Tylenol capsules. Initially, it was unclear
who was responsible for thesedeaths, although
it was clear that the Tylenol capsules were tainted
with lethal doses of cyanide. Needless to
say,
Johnson & Johnson was on the hot seat: consumer
confidence in Tylenol and the company was
shaky,

and the whole situation could deteriorate into a
corporate disaster. Indeed, Tylenol’s market share
during this period plummeted from 37 percent of
the market to only 7 percent. But McNeil
Consumer
Products, the relevant subsidiaryof Johnson &
Johnson, embarked on a crisis-management
program
that has oftenbeen used as a model for such efforts.
What did they do? First, they took a strong
moral and ethical stand: As far as the
company was
concerned, it was “people first and property
second.” Period. And to walk the talk, Johnson &
Johnson pulled 31 million bottles of Tylenol
off the shelves, at a loss of more than $100
million. The
firm also halted all advertising for the product.
After determining that the cyanide did not
get into
the capsules at any Tylenol plant, Johnson &
Johnson nonetheless reintroduced the product
with
triple-sealtamper resistant packaging, becoming
the first company to comply with a Foodand Drug
Administration mandate of such packaging. Further,
to motivate consumers to start buying Tylenol
again,
they offered a $2.50 coupon on future
purchases.
And to restore confidence in the product, the
company made over 2,250 presentations to the

medical community about their efforts (Effective
Crisis Management).
Johnson & Johnson also offered a $100,000 reward
for information leading to the arrest and
conviction
of the Tylenol killer, but no one was ever charged
with the crime (“A Bitter Pill,” 2000). But as
far as the
public was concerned, Tylenol was not to blame
for
thesedeaths, and given the company’s aggressive
strategy to investigate and deal with the problem,
consumer confidence was eventually restored.
Although in the shortrun, Johnson & Johnson’s
reaction may have seemed excessive,unnecessary, or
risky, it demonstrated a type of corporate
responsibility that could and did restore public
trust. And as
a result of that tragic incident in 1982,
virtually every firm that markets food and drugs
today makes
use of the same packaging safeguards—safeguards that
were simply nonexistent in most consumer
products prior to this unfortunate incident.
Why does Johnson & Johnson’s han-
dling of the Tylenol crisis make it a
good example of crisis management?
(continued)

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Kre66464_10_ch10_p221-244.indd 226 11/3/11 2:45 PM
Lobbying
Lobbying activities involve the development of influential
relationships between orga-
nizations and relevant policy makers, such as representatives
from legislative bodies,
regulating agencies, accrediting organizations, consumer
groups, media outlets, and gov-
ernment organizations. Lobbyists build their credibility with
policy makers and media
representatives by providing these influential individuals with
relevant, accurate, and
timely information concerning complex issues of interest to
organizations.
Briefing documents are often written by lobbyists to provide
key decision makers with rel-
evant background information about important issues. The best
briefing documents are suc-
cinct, informative, and persuasive, motivating policy makers to
favor the interests of the
lobbyists’ organizations. Press releases are specialized briefing
documents that lobbyists use
to influence press coverage concerning important organizational
issues. To be effective, lob-
byists need to make sure their press releases have news value,
provide the right kind of

information needed by media representatives, and are
responsive to media constraints con-
cerning messages’ content and structure. Strategic lobbyists
target the right media outlets for
covering organizational issues that are most likely to reach and
influence relevant audiences.
Marketing and Advertising
Marketing and advertising activities are designed to
communicate organizational prod-
ucts and services to key audiences. Marketing professionals
develop communication strat-
egies for positioning organizational products and services to
meet audience demands. A
critical part of effective marketing is to gather data through
market research about the
needs, attitudes, and preferences of key audiences for
organizational products and ser-
vices. Who are these audiences? What are their key beliefs,
values, and attitudes concern-
ing organizational products and services? How receptive are
they likely to be to paying
attention to and accepting organizational messages?
Marketing efforts involve making strategic external
communication decisions based on
the marketing mix, popularly known as the 5 Ps (product, price,
place, promotion, and posi-
tioning) (see Figure 10.1). This marketing mix involves the
following:
Critical Thinking Questions
1. In a crisis situation such as the Tylenol
scare, what various “publics” must a company

like
Johnson & Johnson be concerned about?
2. Why might restoring trust in a company
after a crisis be difficult?
3. What is the value of long-term thinking in
such a crisis situation?
Sources
Effective Crisis Management. (n.d.). The Tylenol
crisis, 1982. Retrieved from http://iml.jou.ufl.edu/
projects/fall02/susi/tylenol.htm
Bergman, J. (2000, November2). A bitter pill.
The Chicago Reader. Retrieved from http://www
.chicagoreader.com/chicago/a-bitter-pill/Content?oid=903786
Organizations in Action (continued)
227
Kre66464_10_ch10_p221-244.indd 227 11/3/11 2:45 PM
http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm
http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm
http://www.chicagoreader.com/chicago/a-bitter-
pill/Content?oid=903786
http://www.chicagoreader.com/chicago/a-bitter-
pill/Content?oid=903786
1. Developing communication strategies to increase

understanding about organiza-
tional products.
2. Pricing those products so they are attractive to key audiences.
(This means not
only the financial price of products but also the psychological
costs and rewards
connected to organizational products or services.)
3. Placing messages about organizational products and services
on communication
channels that will capture audience attention.
4. Promoting products with motivating messages.
5. Positioning products and services as attractive options for
audiences within the
marketplace of similar and competing products and services.
The promotion of a product can include a number of different
promotional tools being
used, including advertising, direct marketing, sales promotions,
personal selling, and
public relations. Advertising activities involve the development
and implementation
of creative communication strategies to promote organizational
products and services.
Advertising professionals design communication campaigns to
create audience aware-
ness about organizational products and services, as well as to
persuade audiences to pur-
chase those products and services.
Advertising campaigns use a range of different media, such as
television, radio, newspa-
pers, magazines, billboards, messages delivered via the Internet

and through social media,
and even through word-of-mouth interpersonal communication
channels. There is a strong
focus in advertising on developing targeted persuasive messages
that capture audience
attention and influence audience behaviors. However, those
creative messages are not just
Marketing
Mix
Price
PlacePromotion
Positioning
Product
Figure 10.1: The Five Ps of Marketing
228
Kre66464_10_ch10_p221-244.indd 228 11/3/11 2:45 PM
generated from the minds of copywriters. They are
typically based on extensive audience research and
message testing data. The most effective advertis-
ing campaigns are strategically designed based on
extensive research. These campaigns are targeted
to specific segmented audiences, use multiple rein-

forcing messages, and are distributed over a range
of familiar and easy-to-use channels over time.
Advocacy advertising has become an increas-
ingly popular way to promote the image and
social responsibility of organizations. In advocacy
advertising, organizations align themselves with
important social causes, such as health promo-
tion, environmental protection, and human rights
issues, to demonstrate ways that the organization
gives back to the community. Often the advertis-
ing illustrates ways that the organization is sup-
porting efforts to address important social issues
and advocates support from others to address
these issues. Advocacy advertising is important
for building organizational credibility, loyalty,
support, and to position organizational image and
identity, or the ways that the public perceives the organization.
External communication,
such as advocacy advertising, is often used to enhance these
images. For example, since
many people may have negative impressions of large petroleum
companies, these compa-
nies spend a lot of money on television commercials and print
advertisements that tell the
public about all the positive things they do, like helping the
environment, disadvantaged
children, or providing jobs for the unemployed. These advocacy
advertisements help to
counter some of the negative images people may have about
these huge corporations by
showing these organizations as good, caring, and contributing
participants in society.
How does Coca-Cola use the 5Ps of
marketing? What marketing channels

does it utilize?
Organizations in Action
A Philip Morris Misstep
Global awareness, advocacy advertising, and
communication ethics: all are discussed in this
chapter,
and they all relate to a controversial advocacy
spot airedby Philip Morris in 2001.
Wanting to promote its image and its sense of
social responsibility, Philip Morris chose to
create and
run an advocacy ad that would demonstrate its
concern for the victims of war-torn Kosovo.
(The
Kosovo War in the former Yugoslavia killed
countless thousands in the late 1990s.) In terms
of its
image, the firm wanted to remind the world
that it makes more than cigarettes, including its
non-
tobacco products such as Kraft cheese. Karen
Brosius, Philip Morris’s director of corporate
affairs,
said, “It’s important for [us] to get across the
message that we’re more than a tobacco
company, and
that we have dedicated employees.”
What kind of advocacy spot was broadcast? As
Shelly Branch writes in the Wall Street
Journal,
“The TV screen shows a 10-acre refugee camp,
its makeshift tents trembling in the (continued)

229
Kre66464_10_ch10_p221-244.indd 229 11/3/11 2:45 PM
snow. Hundreds of Kosovar refugees, shielding their
facesfrom the harsh conditions, march toward
safety and shelter. In the distance, a military
helicopter pierces the gray sky. The words ‘based
on a
true story’ appear on the screen. As the aircraft
lands, cargo doors fly open to expose
the contents
of its belly: huge cardboard boxes marked
‘Kraft.’” Then, to personalize this moment of
corporate
philanthropy, a woman shouts, above the din of
the helicopter rotors, “Hi, I’m Molly from Philip
Morris.” (Branch, 2001).
However, despite its intention to do a good deed
and also improve the corporate image, critics
have raised several haunting ethical questions about
this 60-second “feel good” spot. First, “Molly”
was not a Philip Morris employee,but an actor
flown in from Atlanta. Second, the ad was shot in
the Czech Republic, not Kosovo. Third, all of

the
“refugees”—350 of them—were not actual
refugees
and were handpicked because of their dark olive
complexions.
In the ad, Branch writes, they “huddled over bowls
of Kraft Macaroni & Cheese prepared by a
team of
local assistants who had never before seen the bright-
yellow noodle dish.” Fourth, the weather in
Kosovo
was mild, not frigid, as portrayed in the ad,
but the
ad agency hiredby Philip Morris thought the
snow
“added a sense of realism to the
commercial.” Fifth,
and perhaps most important, the production costs
for
the ad—never revealed by Philip Morris but
estimated
at well over $1 million—far exceeded the net value
of
the donated food, which was in the $125,000
range.
Not surprisingly, critics have argued that if Philip
Morris really wanted to help the actual
refugees, they
should have simply donated all the money to
this
worthy cause.
As more companies concern themselves with

charitable giving, it’s becoming more difficult to
separate a “marketing effort” from a “true
philanthropic effort,” said PeterRadford of the
Center for
Responsibility in Business.
1. Do you regard the Philip Morris campaign
described here as more ethical or more unethical?
Why?
2. Should companies try to publicly “pat
themselves on the back” for their charitable
giving, and if
so, how?
3. Do you know of any corporate philanthropic
efforts that meet the highest standards of
corporate ethics?
Source
Branch, S. (2001, July 24). Philip Morris’s ad on
macaroni and peace—Kosovotale narrows gap
between philanthropy, publicity. Wall Street Journal, (p.
B11A).
Case Study (continued)
What mistakes did Philip Morris make
in its advocacy ad?
230
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CHAPTER 10Section 10.4 The Relevant Environment
10.3 The Small-World Phenomenon
The rapid development and widespread adoption of powerful
communication technol-ogies have transformed the world into a
global village where organizations represent-
ing different nations and geographic regions of the world
routinely confront one another
and must be able to successfully cooperate to survive and
prosper (Bouwman, et al, 2005;
Kreps, 1988; McLuhan, 1962; 1964). Advanced technologies,
used to enhance human com-
munication and transportation, have decreased the functional
distance between people
and nations, increasing levels of international interaction and
interdependency.
From a systems theory perspective, the modern world has
become a huge suprasystem
composed of numerous international social systems sharing a
common environment, shar-
ing information, and depending on cooperative activities to
promote system integration
and resist entropy (Berrien, 1976). Futurist Buckminister Fuller
(1963) has described this
situation of interorganizational interdependency quite vividly
by likening the earth to a
spaceship in which occupants share similar risks and
constraints, such as limited food and
fuel, and need to work together to keep the spaceship flying and
in good repair. Similarly,
modern organizations operate interdependently with many other

organizations, sharing
similar risks and constraints, and needing to work cooperatively
with these organizations.
As we have discussed earlier in the book, increased
organizational interdependency has
resulted in a “small world” where there is a dire need for
effective coordination and coop-
eration among members of international interorganizational
fields. For example, in the
modern automotive industry, U.S. automobile manufacturers
such as the Ford Motor
Company need not only be aware of and adapt to the activities
and products produced by
their domestic competitors (such as the General Motors
Corporation and the Chrysler Cor-
poration); they also need to compete directly with automobile
manufacturers from Europe
(such as Mercedes, BMW, Volvo, and Volkswagen) and from
Asia (such as Toyota, Honda,
Subaru, and Hyundai) as well as with automakers from other
parts of the world. Addition-
ally, foreign companies that supply raw materials (steel,
plastics, fabrics) and components
(automotive parts, electrical equipment, computer chips) for
automobile manufacturing,
foreign markets where U.S. automakers sell automobiles, as
well as collaborative ventures
between U.S. automakers and foreign automobile manufacturers
have become important
parts of the U.S. automotive industry. Interorganizational
communication is essential for
coordinating activities between these international
organizations. Effective international
interorganizational communication performs important roles in
modern organizational

life to promote coordination and cooperation between
interdependent organizations.
10.4 The Relevant Environment
Open systems theory stresses the importance of
interorganizational communication by suggesting that
organizations and their environments have mutual influences on
each other. Environmental changes (such as changes in the
economy, regulation, and even
the weather) inevitably influence organizational life. Similarly,
internal organizational
changes (such as new products, services, and personnel) are
likely to influence members
of the organization’s environment.
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Kre66464_10_ch10_p221-244.indd 231 11/3/11 2:45 PM
CHAPTER 10Section 10.4 The Relevant Environment
Meanwhile, the environments that organizations reside within
are very large. These envi-
ronments consist of all the factors external to organizations. Yet
different environmental
phenomena have differential degrees of influence on
organizations. The most influential
elements of the environment to the organization are known as
the organization’s relevant
environment. The relevant environment consists of all the
factors external to the organiza-
tion’s boundary that have direct influences on the organization
and its members. Organiza-

tional representatives need to go beyond their organization’s
boundaries to seek information
about what is going on within their organi-
zation’s relevant environment. It is there-
fore wise for organizational leaders and
other organizational members to establish
external organizational communication
relationships that help them keep abreast
of environmental conditions, In fact, estab-
lishing strong and cooperative communi-
cation relationships with key members of
the relevant environment is critical to orga-
nizational success and survival.
As organizational theorist Karl Weick
(1979) has explained, relevant organiza-
tional environments can be best conceptu-
alized as information environments. The
relevant environment provides organiza-
tion members with information they need to process and
respond to if they are to maintain
good relations with external publics and continue to achieve
organizational goals. Orga-
nizational representatives interpret environmental messages to
derive information about
environmental conditions and to identify the potential
influences of changing conditions
on organizational activities. Access to key environmental
information helps organization
members identify emerging constraints on the achievement of
organizational goals as well
as to identify emerging windows of opportunity for their
organizations. These windows of
opportunity can open and close quickly, so organizational
representatives need to be nim-
ble at gathering timely information, feeding it back to

organizational leaders, and respond-
ing to opportunities. For example, investors need to respond
quickly to news about good
corporate investment opportunities before others buy out the
investments.
The relevant environment is also a primary outlet and audience
for strategic messages
sent by organizational representatives. Interorganizational
messages are needed to pro-
vide representatives from the organizational environment with
relevant information
about organizational activities and products. For example,
advertising campaigns inform
potential customers about new products and services being
offered by a company. Sim-
ilarly, organizational recruitment efforts depend on external
communication to inform
potential job candidates about employment opportunities within
organizations. Organi-
zations and their relevant environments are indelibly
intertwined by message flows that
connect them and provide each with important operational
information.
What does the relevant environment consist of
for a product like Dole bananas?
232
Kre66464_10_ch10_p221-244.indd 232 11/3/11 2:45 PM
CHAPTER 10Section 10.5 The Interorganizational Field and
Systems Hierarchy

10.5 The Interorganizational Field and Systems Hierarchy
The concept of systems hierarchy demonstrates the
interdependent relationships between organizations sharing
similar environments. Every system is composed of
hierarchical levels of organization that follow similar system
processes. As we mentioned
in Chapter 5, the basic level is the system, which seeks and
processes inputs from the rel-
evant environment into finished outputs that can be sent back
out into the environment.
For example, in a furniture manufacturing company, raw
materials (wood, fabrics, nails,
glue, etc.), staff (carpenters, managers, janitors, salespeople,
etc.), and energy (electricity,
gas, or other forms of power) are sought from the relevant
environment to process into
finished pieces of furniture (chairs, tables, couches, etc.) that
can be sold to customers
external to the company.
As you’ll recall from Chapter 5, this process of making inputs
into desired outputs is known
as the systems transformation process. The systems
transformation process occurs at multiple
levels of organization because each system is composed of
subsystems that also interact
with their relevant environments to transform inputs into
desired outputs, and each system
resides within a larger suprasystem, in which the system
interacts with other systems to
transform inputs into outputs. Figure 10.2 presents a systems
hierarchy model. In essence,
the same organizational processes of seeking inputs from the
relevant environment to

transform into outputs occur at multiple levels of organizing.
Communication between the
systems and their relevant environments is critically important
at all levels of organizing.
Every organization is composed of groups of interdependent
organization members, such
as departments or divisions. These are the subsystems that
operate within organizational
systems. The organization (system) also resides within a larger
environment with other
System
SubsystemSubsystem
Subsystem Subsystem
Suprasystem
Inputs OutputsInputs Outputs
OutputsInputs
Figure 10.2: The Systems Hierarchy Model
233
Kre66464_10_ch10_p221-244.indd 233 11/3/11 2:45 PM
CHAPTER 10Section 10.6 Boundary-Spanning Activities
interrelated organizations. This is the suprasystem. Groups of
organizations sharing the
same suprasystem environment are often referred to as the

interorganizational field, the
topic of this chapter. As we noted earlier in the chapter, typical
organizational representa-
tives of the interorganizational field might include
organizations that supply the orga-
nization with resources, regulate the activities of the
organization, or purchase goods or
services from the organization. These organizations depend on
one another and have a
range of influences (good and bad) on each other.
As you have learned, each level of the system hierarchy
(subsystems, systems, and supra-
systems) abides by the same basic system properties of
interdependence, systems trans-
formation, and adaptation. The systems theory concept of
homeostatic balance suggests
that different system components (subsystems that exist within
each level of the system)
must coordinate activities by using feedback loops
(communication patterns between sub-
systems). These feedback loops are used to coordinate the
exchange of information and
materials needed to achieve organizational goals.
In smooth-running organizations the effective
use of feedback loops insures the coordination of
activities between system components. Within the
interorganizational field, this means that interde-
pendent organizations cooperate. However, in the
real world, orchestrating this kind of cooperation
is not easy to do. Each organization has its own
goals and methods that may not match the goals
and methods of other organizations. For exam-
ple, think about the complexities of establishing
cooperative economic relations between differ-

ent countries. It is not easy to establish balanced
trade agreements between countries because
each country is likely to focus on its own best
economic interests. Government officials need to
establish agreements that are mutually beneficial
economically for these nations to cooperate with
one another. Moreover, economic issues are likely
to change over time, so the officials representing
these different countries need to renegotiate trade
agreements. They use feedback loops between
representatives of the different countries to rene-
gotiate these agreements.
10.6 Boundary-Spanning Activities
As we discussed earlier in the book, organization members who
have the most com-munication contact with representatives of
the relevant environment are known as
boundary spanners. Boundary spanners actively gather
information from the relevant envi-
ronment and feed the information back to the organization to
guide adaptation. This is
a critical organizational function since many organization
members are so focused on
What kind of communication must
take place between members of the
European Union?
234
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CHAPTER 10Section 10.6 Boundary-Spanning Activities

accomplishing internal organizational activities that they often
are unaware of changing
environmental needs and constraints. The boundary spanners
also represent the orga-
nization to outsiders, influencing the ways that members of the
relevant environment
interact with the organization.
Boundary spanners typically work in areas of the organization
such as public relations,
media relations, sales, advertising, personnel, customer service,
and market research,
where their job responsibilities involve communicating with
people outside of the organi-
zation. Boundary spanners are often located at the top or bottom
of organizational hierar-
chies, where these personnel have contact with individuals from
outside the organization.
Top executives, who have high visibility and mobility, often
interact with leaders from
other organizations, working out cooperative ventures and
serving on industry boards
and committees. These leaders often engage in fund-raising
activities, media interviews,
lobbying activities, and attend social gatherings representing
the organization, affording
them many opportunities to gather relevant information and
represent the organization
to different key publics. Lower-level employees—such as those
working to deliver, install,
and sell products; those who greet visitors (either in person or
through the use of media);
and clerks, parking attendants, food servers, and customer
service representatives—also
have many opportunities for contact with representatives of

organizations within the
interorganizational field.
Yet these upper- and lower-level organizational members are
not always well prepared
to represent the organization as boundary-spanning
communicators. Top executives may
be too far removed from daily organizational operations to
provide detailed and accurate
organizational information to external constituents. These
executives may also have diffi-
culties providing information gathered from the environment
back to the specific internal
organizational units that need that information.
Lower-level employees may lack the training they need to
communicate effectively with
members of the relevant environment. Sometimes clerks and
other boundary spanners
do not take the time and effort needed to build cooperative
relationships with customers.
They may not understand the scope of organizational activities
or the organization’s mis-
sion well enough to communicate relevant information
accurately to organizational rep-
resentatives. They may not know what to do with key
information they gather from the
environment, so the intelligence they gather is not shared with
those in the organization
who could use that intelligence. These lower-level workers
typically have little authority
to commit organizational resources or make decisions of
concern to representatives from
the interorganizational field.
Organizations must take care to prepare those members at the

top and bottom of the
organizational hierarchy who have contact with the relevant
environment to communi-
cate effectively as boundary spanners. Communication training
can help these individuals
represent the organization effectively within the
interorganizational field, communicate
important organizational information to environmental
representatives, and preserve
and apply information gathered from the environment.
Providing boundary spanners
with relevant information and materials they can share with key
external publics is also
wise. For example, providing boundary spanners with mobile
technologies such as smart-
phones, networked tablets, and netbooks can help these
organizational members stay in
close touch with key representatives from external
organizations. Sending key boundary
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CHAPTER 10Section 10.7 Relationship Development and
Interorganizational Communication
spanners to relevant meetings and conferences can also enhance
their ability to establish
and maintain effective external organizational relationships.
Leaders in organizations can help improve interorganizational
communication by develop-
ing external communication structures and processes for

handling boundary-spanning activ-
ities. Mid-level organizational workers in departments such as
public relations, lobbying, and
market research can be designated and trained to represent the
organization meaningfully
to key external publics. Organizations can invest in providing
travel support for mid-level
organization members to attend meetings, meet with clients, and
participate in external edu-
cation programs. Organizational leaders can encourage the use
of communication media for
keeping in touch with key publics. They also can invest in
community development activities
that can help establish cooperative community relations with the
organization.
10.7 Relationship Development and Interorganizational
Communication
Relationship development is critical to external organizational
communication. Inter-organizational communication depends on
the quality of interorganizational rela-
tionships established between representatives of interrelated
organizations. The better
developed these interpersonal relationships are, the more
effectively boundary spanners
can be at gathering relevant environmental information,
providing key publics with orga-
nizational information, and promoting cooperation between
organizations. To accomplish
interorganizational goals, organizational representatives must
be able to elicit interper-
sonal cooperation. Strong interpersonal relationships help
boundary spanners promote
coordination and cooperation with representatives from related
organizations.

As we discussed in Chapter 4, strong relationships are based on
the mutual fulfillment of
needs and expectations between relational partners (fulfilling
implicit contracts). Inevita-
bly, when boundary spanners fail to meet the expectations of
interorganizational repre-
sentatives, they disappoint these representatives, jeopardize
their relationships with these
organizational partners, and also jeopardize cooperation
between their organizations. In
effective interorganizational relationships, organizational actors
establish clearly under-
stood and agreed-upon implicit contracts. Not only are they
aware of the expectations
they have for one another, they also work at seeking new
information and continually
updating their perceptions of each other’s
expectations.
By being sensitive to the changing needs
of their relational partners and changing
needs of the organizations they represent,
boundary spanners can update their rela-
tional expectations and renegotiate their
implicit contracts to maintain coordina-
tion and cooperation. These boundary
spanners work to update their implicit
contracts by consistently giving and seek-
ing interpersonal feedback, enabling them
How did Toyota jeopardize its relationships
with others during its 2010 recall?
236

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CHAPTER 10Section 10.8 Ethical Dimensions of External
to continue acting appropriately with one another as their
relationships grow. The better
these relational partners are at effectively updating their
implicit contracts, the better they
are at fulfilling one another’s needs and strengthening
interorganizational coordination.
The norm of reciprocity suggests that interpersonal
relationships develop incrementally
over time with each partner responding in kind to the behaviors
of the other partner. By
demonstrating cooperation with organizational representatives,
boundary spanners can
encourage their interorganizational partners to reciprocate by
cooperating with them.
10.8 Ethical Dimensions of External Organizational
Communication
External organizational communication powerfully expresses
the moral character of organizations. The ways organizational
representatives interact with one another
demonstrates the relative levels of respect, honesty, integrity,
equity, responsibility, and
trustworthiness of their organizations. As modern organizational
life has become increas-
ingly politicized, the ethics of interorganizational
communication processes often have
been stretched by irresponsible attempts to influence
interorganizational outcomes.

There are many instances in the modern world where
questionable ethical choices have
been made in guiding interorganizational communication. News
stories regularly cover
instances of organizational bribery, extortion, dishonesty,
manipulation, and collusion in
the ways business, industrial, health care, governmental, and
even educational organiza-
tions conduct business with their relevant publics. For example,
there have been many
stories in the news about government lobbyists engaging in
unscrupulous activities while
representing clients, such as the revelations about former
lobbyist and businessman Jack
Abramoff, who offered bribes and misinformed officials to reap
huge personal profits.
Similarly, media coverage of Bernard Madoff’s extortion of
clients’ investment funds as
part of a Ponzi scheme to steal their money illustrates ethical
improprieties in the ways
that some devious executives interact with their clients.
Public relations, advertising, and lobbying activities have been
particularly susceptible
to charges of ethical improprieties. Groups of organizations
often have been found to
unfairly monopolize control over relevant resources, products,
or markets. It is not uncom-
mon for organizations to seek financial gains at the expense of
their employees, suppliers,
customers, or competitors. Such unethical attempts for
interorganizational influence and
control violate the moral standards of society, weaken the
credibility of organizations, and
threaten long-term organizational effectiveness.

Three covering principles govern ethical organizational
communication: honesty, equity,
and avoiding harm (Kreps, 1988):
1. For interorganizational communication to be ethical,
tors must strive to be honest. It is not ethical for organizational
representatives
purposefully to deceive customers, regulators, or competitors.
Practices such as
false advertising, fudging of records, and withholding
information from stake-
holders or regulators are clear examples of dishonesty. Other
questionable inter-
organizational practices include espionage, sabotage,
overpricing of goods and
services, discriminatory employment practices, and thievery.
237
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2. For interorganizational communication to be ethical it must
be equitable. It is
not fair for organization members to exert undue and oppressive
influence on
different publics. Any organizational practices that unfairly
restrain free trade,
self-determination, and inhibit the activities of key publics—
such as instances of

monopoly, conflict of interest, bribery, coercion, stock
manipulation, and discrim-
ination—threaten equity in organizational life.
3. Organizations also have the responsibility to minimize harm
to their environ-
ments and to their publics. For example, automakers have the
responsibility to
build safe and reliable cars that will not put drivers at risk of
accidents, fires, and
explosions. Farmers have the responsibility to protect against
spreading toxins in
the foods they produce that could lead to serious illnesses and
deaths for con-
sumers. Officials who operate nuclear power plants have the
responsibility to
enforce safety measures to reduce the risk of public exposure to
radiation.
Organizations are more or less externally accountable to the
extent that they live up to
these covering principles for ethical organizational
communication. Failures to promote
external accountability inevitably lead to unethical
interorganizational communication.
Any organizational activity that endangers the environment
decreases the organization’s
external accountability and violates implicit contracts between
the organization and its
publics. Organizational activities such as falsifying public
records, withholding infor-
mation about potential or current dangers, causing harm to the
environment through
pollution, and discriminatory employment practices are all
instances of low external
accountability. The best organizations engage in external

tion practices that promote external accountability. For
example, McDonald’s has begun
providing nutrition information about all the foods it sells so
consumers can make good
choices about the foods they choose to eat. The company is not
required to provide this
nutrition information but decided to do so to help its customers
make healthy food choices
and to demonstrate its external accountability to customers.
To enhance the ethics of interorganizational communication,
clear moral standards for
organizational behavior must be established and maintained by
organizational leaders as
important themes of organizational cultures. The covering
principles for ethical organiza-
tional communication (honesty, avoiding harm, and equity)
should be used as guidelines
for directing and evaluating interorganizational communication.
Organization members,
especially boundary spanners, should strive to develop honest,
culturally sensitive, and
trusting relationships with representatives of the
interorganizational field. Clear, sensi-
tive, and ethical communication between organizational
representatives can facilitate
the development of effective implicit contracts and meaningful
interorganizational rela-
tionships. For example, Walgreens Pharmacies enacted a new
policy to make pharmacist
advisers available in all their stores to help customers learn
about the risks and benefits of
prescribed medications, as well as to explain the correct use of
medications. This program
demonstrates the company’s concern for customer safety and

also helps to establish good
working relationships between pharmacists and patients.
Similarly, the personal banker
strategy used by several banks to advise consumers about good
investment options
is a way these banks are building personal relationships between
bank personnel and
customers.
238
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Case Study
Feeling the Pinch at Jet Airfreight
Jet Airfreight was a successfulmidsized international
airfreight forwarder that helped companies
around the world ship goods by air quickly
and easily to many different countries. It
specialized in
responsive service and quick shipments for
customers who wanted to move materials,
equipment,
and products quickly to international locations.
Although Jet Airfreight did not own or operate
any of
its own airplanes, it worked with many different
airlines to carryfreight for them. Jet
Airfreight was
basically a middleman that made all of the

needed arrangements to move freight from
one pointto
another, making sure the freight was picked up
and delivered in a timely, safe, and efficient
manner.
Jet Airfreight operated a network of 15 offices
located near largeairports in major cities
across
the United States. Mostof the offices were small
operations with a few managers, staff members,
truckers and warehouse workers; but the New York
and Los Angeles offices had largeoperations
staffs. The company’s domestic operations
headquarters was located in the Los Angeles
office, and
international operations headquarters was located at
the New York office. There were active lines
of coordination between L.A. (domestic) and New
York (international) freight activities, sincea lot
of freight originating in small markets was
flown domestically to larger airport cities
(typically New
York or Los Angeles) for international flights.
Similarly, international goods going to smaller
domestic
locations were flown out of New York or L.A. In
addition, Jet Airfreight contracted with a
network
of small international freight forwarders in
largecities around the world to pick up
and deliver their
international shipments. Jet Airfreight also operated a
number of vans and small trucks at each
of the company’s 15 domestic offices to pick up
and deliver freight to the airports. However,

Jet
Airfreight contracted with several different trucking
companies to pick up originating freight
from
their customers to bring to the Jet Airfreight offices
and also to deliver the arriving freight from
their
offices to the freight’s ultimate destination.
As part of their process, Jet Airfreight would pick up
freight from customers, package the freight,
prepare the needed international customs paperwork
for shipping the freight, and make
arrangements
with appropriate air carriers to fly the freight to
the desired destinations. The company delivered
the
freight to the airlines, made sure the freight
passed through international customs at the
airports,
monitored the movementof the freight on the flights
carrying the goods, picked up the goods
once
they arrived at the destination airport, and then
delivered the goods to the ultimate destination.
It
would also provide its customers with updates about
the movementand delivery of freight.
Customers contracted with Jet Airfreight because
the company saved them a lot of time and
money. Jet Airfreight could actually ship freight
for a lower cost than the customers could
get from
the airlines if they shipped the freight by
themselves. The company was able to negotiate

special
advantageous shipping rates with the airlines due to
the largeamount of freight it shipped. It
was
also able to combine shipments from different customers
into largecontainers, which received
discounted shipping rates from the airlines. Oncethe
containersarrived at the destination airports,
Jet Airfreight would break down the containers
and arrange to have the individual shipments
delivered to their ultimate destinations.
Things were going very well for Jet Airfreight until
the economy began to tighten. As the priceof
gasoline began to increase, the airlines began to
raise their rates, even the discounted rates they
offered
to Jet Airfreight. Similarly, the trucking companies
began to charge a premium on top of
their regular
delivery rates to cover their increasingcostsfor fuel.
Jet Airfreight’s cost of operating its own vans
and
small trucks was also increasingwith the rising
costsfor fuel. The company was forced to accept
these
increased operating costsfrom the airlines and the
trucking companies, even though federal
regulations
limited how much Jet Airfreight could charge its
customers for shipping. (continued)
239
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CHAPTER 10Summary
Summary
Traditionally, the primary focus of organizational
communication study has been on internal communication.
However, there is another side to organizational commu-
nication that bridges organizations to the larger world: external
organizational com-
munication. Such external activities include public relations,
lobbying, marketing, and
advertising. Further, these activities involve a variety of other
stakeholders, including
firms that supply raw materials to the organization, government
agencies and profes-
sional associations that regulate organizational activities,
consumer groups, competing
organizations, unions, and organizational partners.
Communicating with all of these
This made it difficult for Jet Airfreight to
compete with someof the larger airfreight
companies who
operated their own airplane and trucking operations.
The leadershipat Jet Airfreight applied to the
federal transportation agency to increase the rates
that it could charge its customers for
shipping,
but the federal agency was reluctant to raise rates
and increase expenses for strugglingcompanies.
Shippers were also feeling the pinch of the tight
economy and did not want to pay more for
airfreight

services. The margin of profit for Jet Airfreight
was rapidly shrinking, and their leadershipwas
considering declaring bankruptcy.
1. What are the different internal and
external communication activities being conducted at
Jet
Airfreight? How effectively are theseinternal and
external activities being coordinated?
2. Who are the key organizations (and individuals)
within the interorganizational field with whom
Jet Airfreight has to coordinate activities and
exchange information? What kinds of
information
does the company need from thesesources? How effective is
the company at gathering relevant
information from thesesources?
3. To whom in the relevant environment
does Jet Airfreight need to provide information?
What
kinds of information does the company need to
provide to them? How effective is the
company
at providing information and eliciting cooperation?
4. From an open systems theory perspective,
identify multiple levels of organizing at
Jet Airfreight.
What are the subsystems within the company?
What organizations comprise the suprasystem?
Is Jet Airfreight able to maintain a homeostatic
balance in relations with otherorganizations

within their suprasystem (interorganizational field)?
5. How well does Jet Airfreight transform
organizational inputs into desired outputs? What
could
be improved in this organization’s transformation
processes?
6. How well does Jet Airfreight balance internal
and external organizational communication
activities?What could be improved in balancing
internal and external communication?
7. What strategies could be used by leaders
from Jet Airfreight for building effective cooperative
relationships with representatives of their
interorganizational field? Who should perform
the
boundary-spanning organizational roles?
8. How well does Jet Airfreight use external
communication activities such as marketing, public
relations, advertising, and advocacy? How could
the company improve the use of theseforms of
external organizational communication?
9. What lobbying activities could be used by
Jet Airfreight to help address their increased
operating
costs?
10. What communication strategies do you suggest
the leadershipat Jet Airfreight use to improve

profitability and efficiency of operations to resist
going into bankruptcy?
Case Study (continued)
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CHAPTER 10Summary
constituencies requires good information gathering and the
ability to craft messages using
smart strategies. In the realm of marketing and advertising, the
“five Ps”—product, price,
place, promotion, and positioning—reflect the most common
strategic concerns.
With advanced technologies, the small world phenomenon has
moved these communica-
tion imperatives to a global scale. From a systems perspective,
the boundaries for orga-
nizations have expanded to the entire planet, making all of these
communication issues
more critical and more complex. Learning how to effectively
span the various boundaries
among groups requires relationship development and
meaningful training, along with
an abiding concern for the ethical dimensions of external
organizational communication.
Discussion Questions
1. Are the organizations that are a part of your life better at

internal communication
(communication within the organization) or external
communication
(communication with the larger world)? How and why would
you make that
determination?
2. Sometimes public relations, as a field of study, is viewed
with some apprehension
and cynicism—after all, those in PR are often seen as “spin
doctors” who
manipulate and twist the facts. However, how could public
relations be defended
as a highly ethical aspect of organizational communication?
3. Corporate lobbyists, and those in public affairs in large
organizations, are by
definition in the business of influencing the type of legislation
that is passed
at the state and national levels. Do you believe that there are
any ethical limits
to such influence efforts? For example, should corporate
lobbyists be involved
with such issues as gay marriage or stem cell research if they
have no direct
connection to their operation and corporate mission?
4. The “five Ps” are discussed in this chapter as a framework
for doing marketing
and advertising. The last “P” involves positioning a product or
service in a way
that makes it attractive to a specific segment of the marketplace.
If you were the
head of marketing in a firm that made laptop computers, what
might be three
different ways that you could position such a product?

5. With the proliferation of social media (such as Facebook)
and websites (such as
Yahoo!), how do you suppose organizations now do their
research differently? How
has “mining for data” become a different organizational activity
in the last 20 years?
6. The Internet has also quite radically accelerated the pace at
which information,
news, and rumors fly around the planet. Given instant
messaging, 24-hour news
cycles, scores of different cable networks, and videos that can
get 100,000 views on
YouTube in just a few hours, how can organizations attempt to
stay on top of the
curve when there’s “breaking news” which deals with them and
what they do?
7. It is argued in this chapter that “For interorganizational
communication to be
ethical, organizational communicators have to strive to be
honest.” Nonetheless,
can you think of situations—real or hypothetical—where
complete honesty by an
organization might be considered unethical.
8. One could argue that organizations should be ethical in their
dealings with
others simply because it is “the right thing to do”—but how
might high ethical
standards also be financially profitable? Can an “ethical”
organization benefit
economically by doing the right thing? If so, how and why?
241

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CHAPTER 10Summary
Key Terms
Advertising Involves the development
and implementation of creative communi-
cation strategies to promote organizational
products and services.
Advocacy advertising When organiza-
tions align themselves with important
social causes—such as health promotion,
environmental protection, and human
rights issues—to demonstrate ways
that the organization gives back to the
community.
Ethical organizational communica-
tion Governed by three covering prin-
ciples: honesty, equity, and avoiding harm.
External organizational communica-
tion Targets a varied group of external
constituents (including suppliers, buyers,
shareholders, community members, and so
on), and involves a broad range of interre-
lated organizational activities.
Externally accountable The extent to
which organizations live up to these cover-
ing principles for ethical organizational

communication.
Homeostatic balance A systems theory
concept suggesting that different system
components (subsystems that exist within
each level of the system) must coordinate
activities by using feedback loops (communi-
cation patterns between subsystems). These
feedback loops are used to coordinate the
exchange of information and materials
needed to achieve organizational goals.
Information-gathering activities Some-
times referred to as intelligence gathering,
research, or due-diligence functions. They
occur when boundary-spanning organiza-
tional actors use their interorganizational
connections to keep abreast of changes
within the environment that are relevant to
their organizations.
Information-giving activities Sometimes
referred to as publicity, lobbying, or sales
functions. They occur when boundary-
spanning organizational actors provide
strategic information to key representa-
tives of external organizations within the
environment to elicit support and coordi-
nation for their own organizations.
Interorganizational field Includes all the
organizations that are relevant to a particu-
lar organization.
Lobbying Activities that involve the
development of influential relationships

between organizations and relevant
policy makers, such as representatives
from legislative bodies, regulating agen-
cies, accrediting organizations, consumer
groups, media outlets, and government
organizations.
Market research A critical part of effective
marketing, this involves researching the
needs, attitudes, and preferences of key
audiences for organizational products and
services.
Marketing Developing communication
strategies for positioning organizational
products and services to meet audience
demands.
Marketing mix Popularly known as the 5
Ps (product, price, place, promotion, and posi-
tioning). This involves developing commu-
nication strategies to increase understand-
ing about organizational products, pricing
those products so they are attractive to key
audiences, placing messages about organi-
zational products and services on commu-
nication channels that will capture audience
attention, promoting products with motivat-
ing messages, and positioning products and
services as attractive options for audiences
within the marketplace of similar and com-
peting products and services.
242
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CHAPTER 10Summary
Open systems theory Stresses the impor-
tance of interorganizational communica-
tion by suggesting that organizations and
their environments have mutual influences
on each other.
Public relations An integral area of orga-
nizational communication, used to coor-
dinate interactions between organizations
and key audiences (publics). Sometimes
known as public affairs communication.
Relevant environment All the factors
external to the organization’s boundary
that have direct influences on the organiza-
tion and its members.
Strategic organizational communica-
tion External communication activities
grouped together within an organization,
sometimes along with internal organiza-
tional communication functions.
Systems hierarchy The interdependent
relationships between organizations shar-
ing similar environments. Every system
is composed of hierarchical levels of
organization that follow similar system
processes.
243

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