The document discusses the organization and structure of public relations departments and firms. It describes how public relations departments are typically organized in corporations, with most companies having small PR departments of 2-5 employees. It also outlines the different levels of influence PR departments may have as staff functions and their need to cooperate with other departments. Additionally, it discusses the rise of public relations firms and holding companies that own many PR firms globally.

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Public Relations:
Strategies and Tactics
11th Edition, Global Edition
Dennis L. Wilcox Glen T. Cameron Bryan H. Reber
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Chapter 4
The Practice of Public Relations

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Chapter 4 Objectives
 Understand the role and functions of a
public relations department
 Be more knowledgeable about the staff
function of public relations
 Understand the structure of a public
relations firm and its various activities
 Know the difference between working in a
department and working in a firm

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 BEFORE: primary
objectives were
promotion and
publicity
 NOW: complex and
dynamic process of
negotiation and
compromise with a
number of key
publics
Public Relations Departments

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Corporate Structure Shapes the
Public Relations Role
 The role of public relations in an organization
often depends on
 The type of organization
 The perceptions of top management
 The capabilities of the public relations executive
 The differences between large and complex
organizations and small-scale organizations

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Having Influence is
Based on Four Factors
 Perception of value by top management
 Practitioners taking on the managerial
role
 Reporting to the CEO
 Years of professional experience

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Organization of Departments

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Organization of Departments,
cont.
 Majority of companies are smaller and employ
fewer staff in public relations area
 PRSA and Bacon’s Information, Inc. study of the
number of individuals employed in public
relations departments found
13% had departments with 10 employees
45% had departments with 2-5 employees
 The issue of decentralization of public relations
employees

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Public Relations as Staff
Functions
 Traditional management theory divides an organization
into line and staff functions
 Line managers
 Can delegate authority
 Set production goals
 Hire employees
 Directly influence the work of others
 Staff
 Have little or no direct authority
 Indirectly influence the work through suggestions,
recommendations, and advice
 Although public relations departments can function only
with the approval of top management, there are varying
levels of influence that departments may exert

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Levels of Influence
Advisory
Compulsory-Advisory
Concurring Authority

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Cooperation with Other Staff
Functions
 Ideally, public relations is part of managerial
subsystem and contributing to organizational
strategy
 Other staff functions are required in the
communication process with internal and
external publics
 Requires cooperation to avoid possible friction
with
 Legal
 Human resources
 Advertising
 Marketing

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The Trend Toward Outsourcing
 Fortune 500 companies now spend 25% of public
relations budgets on outside firms
 Companies of all sizes spend more than 40% of their
public relations budget on services from outside firms
 Brings expertise and resources that cannot be found
internally
 The most frequently outsourced activities are
 Writing and communications
 Media relations
 Publicity
 Strategy and planning
 Event planning

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Public Relations Firms
 Predicted to grow as more countries adopt free-market
economies and Internet applications continue to expand
 Services provided by firms
 Marketing communications
 Executive speech training
 Research and evaluation
 Crisis communication
 Media analysis
 Community relations
 Events management
 Public affairs
 Branding and corporate reputation
 Financial relations

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Global Reach
 Most major public relations firms generate
substantial revenues from international
clients
 International work isn’t only for large firms
Small and medium-sized firms around the
world have formed working partnerships with
each other to serve client needs
Firms form affiliations and cooperate with
each other to service clients with international
needs

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The Rise of Communication
Conglomerates
 60% of the global business in public
relations is conducted by firms owned by
holding companies
 4 major holding companies
WPP Group
Omnicom
Publicis Groupe
Interpublic Group

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How Public Relations Firms Get
Business
 Organizations will hire public relations
firms
For supplemental
staffing
Help with special
projects
Specific expertise

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Pros and Cons of Using a Public
Relations Firm
PROS
 Objectivity
 Variety of skills/expertise
 Extensive resources
 Offices throughout the country
 Special problem-solving skills
 Credibility
CONS
 Superficial grasp of a client’s
unique problems
 Lack of full-time commitment
 Need for prolonged briefing
period
 Resentment by internal staff
 Need for strong direction by
top management
 Need for full information and
confidence
 Costs

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Fees and Charges
 A public relations firm charges for its
services in several ways
Basic hourly fee, plus out-of-pocket expenses
Retainer fee
Fixed project fee