Operating Firms
III. Internal Environment
Table 24. Code of Standards
STANDARDS FOR THE PRACTICE OF PUBLIC RELATIONS Truth Confidentiality Fairness Incorruptibility No Vested
Interest RATING
Freq % Freq % Freq % Freq % Freq %
Always 25 71.4 29 82.9 23 65.7 20 57.1 19 54.3
Often 6 17.1 1 2.9 7 20.0 6 17.1 6 17.1
Sometimes 1 2.9 1 2.9 2 5.7
Partly 1 2.9
Not at all
No Answer 4 11.4 5 14.3 4 11.4 7 20.0 8 22.9
TOTAL
AREA MEAN 4.8 4.97 4.71 4.61 4.63
INTERPRETATION ALWAYS ALWAYS ALWAYS ALWAYS ALWAYS
Public relations firms confess and confirm in the survey that they always adhere to a Code of Standards for the practice of public relations. They have adhered always to truth (71.4%); confidentiality (82.9%); fairness (65.7%);
incorruptibility (57.1%) and no vested interest (54.3%); non-conflicting/competing interest (60.0%) non- misleading or false information (60.0%); and pro-public interest (60.0%).
Table 25. Effects of Misconceptions on Public Relations Firms Extent of Effect on Firms Misconception
NA Not at All Little Moderately Much Very Much
Accommodation 21 1 11 1 1
Advertising 27 5 2 1
Communication 35
Facilitation 29 5 1 1
Human Relations 30 4 1
Lobbying 30 5
Propaganda 27 6 2
Public Administration 34 1
Publicity 28 1 5 1
Spin (Manipulation) 15 1 1 13 4 1
Despite their adherence to good standards of practice of their profession, public relations firms seriously suffer or are affected by certain misconceptions about them by the public in general. On top of these misconceptions is what is known as spin (manipulation), (57.1%), according to the respondents.
They cited other misconceptions such as accommodation (40.0%), advertising and propaganda (22.9%), publicity (20.0%), facilitation (17.1%), human relations and lobbying (14.2%), public administration (2.9%), and communication (0.0%).
Table 26. Effects of Misconceptions
Serious Effects of Misconceptions Frequency Percent
Very Much 1 2.9
Much 4 11.4
Moderately 20 57.1
Little 1 2.9
None at all 3 8.6
No Answer 6 17.1
TOTAL 35 100.0
MEAN 2.96
INTERPRETATION MODERATELY
However, the misconceptions only “moderately” affect their public relations firms. The fact is that 57.1% of the respondents state so. The respondents firms which have been much affected by the misconceptions totalled 11.4%, but those which did not answer tallied 17.1%.
The general public’s misconceptions about public relations—as revealed in the survey, should be heeded by the operating public relations firms. They should commit themselves to do something much more enduring to correct those
misconceptions. Their response of being moderately concerned may seriously affect their life span, too.
Table 27. Corrections of Misconceptions
Corrective Steps Frequency Percent Rank
Academic Calling (Teaching, Lectures, Others) 14 40.0 2
Advocacy in Media 11 31.4 3.5
“Apostleship” or Missionary Link 8 22.9 5
Book Authorship 1 2.9 6
Linkages with other Firms 11 31.4 3.5
Seminars, Symposia & For a 16 45.7 1
To date, public relations firms are doing something about the misconceptions by conducting seminars, symposia and fora (45.7%) They also pursue corrective measures through academic calling, that is, teaching, lectures and ethics (40.0%). The firms further engage in advocacy in media (31.4%) and linkages with other firms (31.4%). Others involve themselves in “apostleship” or missionary link (22.9%). Only a few dabble in book authorship (2.9%).
Resources
Table 28. Resources and Capabilities Response to Environmental Threats or
Opportunities? Frequency Percent Rank
Financial Capital 19 54.3 2
Physical Capital 7 20.0 4
Human Capital 29 82.9 1
Organizational Capital 16 45.7 3
Again, as service organizations, public relations firms’ human capital is their most reliable resources and capability (82.9%) when responding to environmental threats and opportunities.
But they also rely on financial capital (54.3%) to meet environmental threats or opportunities. Others prefer to utilize their organizational capital (45.7%), while the rest depend on their physical capital (20.0%).
Table 29. Value Factors
Less Valuable Resources & Capabilities Percentage
1. Industry Structure 62.9%
2. Manpower Complement 14.3%
3.5. Clients Preferences 5.7%
3.5. Technology Advances 5.7%
On the resources and capabilities which have become less valuable to the respondents’ public relations firms, they replied in this order: industry structure, 62.9%; manpower complement, 14.3%; clients preferences and technology advances, both at 5.7%.
Table 30. Value Resources & Capabilities Utilized which Competitors do not have
Values Rank
Ethical Standards 1
Experience, Reputation 2
International Affiliation 3
None 4
Integrated Marketing Communication 5
Strategic Thinking, Training 6
New Technology 7
Classified 8
Pass-on- to-competitors 9
Long-term Service 10
Non-traditional Creativity 11
Table 31. Value Resources Utilization
Resources Frequency Percent
Experience, Reputation 5 14.3
Personal Network 6 17.1
Creative Power 2 5.7
Int’l Property 2 5.7
Communication Style 1 2.9
No Answer 19 54.3
Total 35 100
The value resources and capabilities utilized by the respondents’ public relations firms and which competitors do not have, the replies were as follows:
Ethical standards, experience, reputation, ethical standards, international affiliation, integrated marketing communication, strategic thinking, training, new technology, classified, pass-on to competitors, long-term service, manpower, and non-traditional creativity (all at 2.9% each).
Public relations firms believe that they do have resources that cannot be copied or duplicated by their competitors. They put premium value on their resources, namely: reputation and experience, personnel network, creative power and intellectual property, and communication style.
Imitability Protection of Resources
Be that as they believe, however, public relations firms say they exert effort to protect their resources from being copied or duplicated. To do this, public relations firms take defensive or protective action on imitability of their resources.
The most common steps that they do are: 1. Good management. 2. Continuous improvement. 3. Giving incentives to personnel, and 4. Adapting to change.
Table 32. Imitability Protection of Resources
Resources Frequency Percent
Adapt to Change 6 17.1
Incentive, Advantage 4 11.4
Network 1 2.9
Ethics 1 2.9
No Answer 23 65.7
Total 35 100
This means that the firms primarily adapt to change (17.1%), provide incentives to personnel (11.4%) and capitalize on their advantages. Others however make use of their network or mobilize their network (both at 2.9%). Those who did not answer total 65.7%.
Table 33. Full Potential Exploitation
Resources Frequency Percent
Training and Practice 8 22.9
Awareness 2 5.7
Branchout, Ass’n with right people 2 5.7
Clients’ Benefits 1 2.9
No Answer 22 62.8
Total 35 100
The public relations firms exploited their full competitive potential of their resources and capabilities as follows: training and practice, 22.9%; awareness, branchout and association with right people, both at 5.7% and clients benefits, 2.9%. However, the other respondents did not answer this question (62.8%).
Most public relations firms exploit their full potential through letting know all possible people who should know about them.
Table 34. Framework for Resources
Factor of Organization in Framework for Resources
Questions 1 & 2 Question 3 Questions 4 & 5 Question 6 RATING
Freq % Freq % Freq % Freq %
Very Satisfactory 8 22.9 7 20.0 5 14.3 5 14.3
Satisfactory 14 40.0 7 20.0 11 31.4 9 25.7
Moderately Satisfactory 3 8.6 6 17.1 3 8.6 2 5.7
Needs Improvement 2 5.7
Poor
No Answer 10 28.6 13 37.1 16 45.7 19 54.3
TOTAL 35 100.0 35 100.0 35 100.0 35 100.0
AREA MEAN 4.2 3.86 4.11 4.19
INTERPRETATION SATISFACTORY SATISFACTORY SATISFACTORY SATISFACTORY
Organization for Resources
On how the factor of organization fare in the framework of resources, respondent public relations companies answered for question numbers 1. (What resources and capabilities enable your company to respond to environmental threats or opportunities?;) and 2. (What resources and capabilities have become less valuable to your company?) – Answers: Satisfactory, 40.0%.
For question number 3. (What value resources and capabilities are utilized by your company which competitors do not have?) – Answer: Satisfactory, 40.0%.
While for question numbers. 4. (What resources used by your company which cannot be copied or duplicated by competitors?) and 5. (How does your company protect the imitability of its resources?) – Answer: Satisfactory, 31.4%.
And finally, to question number 6. (What has your company been doing to exploit the full competitive potential of its resources and capabilities?) – Answer:
Satisfactory, 25.0%.
Public relations firms’ respondents indicate that they are generally satisfied with their organizational set-ups or how they are stimulated, with all the resources and capabilities that they own or possess. It is most likely for this state of satisfaction that they are in, that the best way for them to sustain their organizational life cycle, they must keep up or ascertain the pattern of activities they envisioned to perform or render for their firms to continuously operate.
Respondents indicate that public relations firms operate on the basis of what work clients give them, rather than be hampered by strictly following organizational structure, as in informal vs. formal communication, especially with respect to (time) pressure on work to be done.
External Environment
Table 35. Organizational Blueprint
Organizational Form used to Sustain Life Cycle Frequency Percent Rank
Formal structure of the organization 15 42.9 2
The patterns of activity 17 48.6 1
Normative order (Ways of organizing defined as right and
proper by members and relevant sectors of the environment) 8 22.9 3
Organizational Blueprint
Respondents claim that they used the patterns of activity of their firms to sustain their organizational life cycle (48.6%). Others use the formal structure of the organization (42.9%), while the rest use the normative order (ways of organizing defined as right and proper by members and relevant sectors of the environment (22.9%).
Table 36. Strategic Management Factors Utilized in Organization To prolong organizational life Frequency Percent Adaptation, “account for helping the organization change to
meet new opportunities and threats in the environment” 10 28.6
Alignment,“process of adjustment in the firm’s structure,
behavior or function to extend life span” 1 2.9
Or both 20 57.1
No Answer 4 11.4
TOTAL 35 100.0
Necessarily, when asked what management strategy they resort to, the public relations firms reply is, not surprisingly, adaptation to change or alignment
since most of them resort to change (28.6%) and alignment (2.9%). But these public relations firms (20) had to resort to both adaptation and alignment (57.1%).
Disregarding those who refused to answer this question (11.4%), the positive responses to the question on strategic management to prolong life is a high of 88.6 percent.
Table 37. Gainful Services Improvement of Public Relations Services
Perceived by Client Frequency Percent
Very Much 16 45.7
Much 10 28.6
Moderately 3 8.6
Little None at all
No Answer 6 17.1
TOTAL 35 100
MEAN 4.45
INTERPRETATION MUCH
Long-standing clients of public relations firms find their agencies’ services most gainful today relative to 5 years ago, with 16 or 45.7% rating it “very much,”
and 10 or 28.6%, “much”. They are likewise satisfied with their services as much as these public relations firms find satisfaction in the management of their organizations as seen through their present structure and resources and capabilities.
Overall, the factor of organization does fare very well in the framework of resources because most replies, over 50%, range from very satisfactory to moderately satisfactory.
Table 38. Cultural Values of Firms Extent of Effect Cultural Values
NA Sometimes Often Always Total
NA 3 3
Facilitation 1 1 2
Frugality 2 6 8
Honesty 1 4 5 10
Realistic 1 4 7 12
Total 4 1 11 19 35
Most public relations firms’ operations are conducted in a manner that is
“honest, trustful, and modest” 28.6%; “realistic, quantity-oriented and achievement- driven” with a total percentage rating of 62.9%. Not the ones that could be accused of being seen as ivory-tower executives, public relations firms executives, survey shows, are people whose cultural value predominate in their company operations.
On top of these sets of values is, “realistic, quality-driven and achievement oriented” 34.3%. But “frugality, hard work and respect for money” also predominates (22.9%). The rest, “facilitation, short-cut and guesswork” fell to the lowest point (5.7%).
Table 39. Effect of Culture on Work Situations
Effect of Culture on Work Situations Frequency Percent
Always 19 54.3
Often 11 31.4
Sometimes 1 2.9
Partly Not at all
No Answer 4 11.4
TOTAL 35 100
MEAN 4.58
INTERPRETATION ALWAYS
Corporate culture in most public relations firms always affect work situation, a matter common to most organizations, that is, 19 or 54.3% of respondent say it does “always”. These values, respondents say, have always reflected their corporate culture in all the work situations. Respondents say that the public relations firms culture have ‘always affected work situations in their companies (54.3%). Others disclose “often,” 31.4%; even as the rest claim
“sometimes,” 2.9%. The rest did not answer (11.4%)
Table 40. Computer Information Technology
Tools used by Company Frequency Percent Rank
Internet 32 91.4 1.5
Website 25 71.4 3
E-mail 32 91.4 1.5
On-line 11 31.4 4
E-commerce 4 11.4 5
Public relations firms’ managements have not allowed themselves to be left behind other business organizations. As the survey shows, they are up-to-date in the use of technology in their operations, and nominally in their professional performance of public relations and related services to the growing size of clients.
Internet and the E- mail are the Information Technology (IT) tools that most public relations firms use (both 91.4%), while E-commerce is the least used (11.4%). But respondents also use the on- line (31.4%).
Table 41. State-of-the-Art Equipment
State-of-the-Art Equipment used by Company Personnel Frequency Percent
CD-ROM with CD- Writer 26 74.3
Copier 24 68.6
Digital Camera 15 42.9
Digital Video Camera 11 31.4
Facsimile Machine 31 88.6
Internet Chat Equipment 20 57.1
Laptop for Mobile Presentation 24 68.6
Mobile Phone 32 91.4
Modem 27 77.1
DSL 10 28.6
Pentium II Computer 12 34.3
Pentium III Computer 13 37.1
Pentium IV Computer 20 57.1
Printer 30 85.7
Scanner 26 74.3
Speaker & Eye Camera 5 14.3
Teleconferencing (Conference Call Capable Telephone Units) 16 45.7
Of the 17 state-of-the-art cyberspace equipment in the survey, most public relations firms use 10 of them or 50% of the surveyed companies.
Operating Firms
From among the operating public relations firms which have proved to have a longer life cycle than the defunct public relations firms can be seen certain distinct but common features in their operating management style.
For instance, the operating public relations have concentrated more on the national and/or local level. The services that they offer are those that are on demand by their clientele or as the need for those services arise. In terms of personnel, and based on need, they even to the extent of availing of the services of consultants. Despite this, however, the regular personnel staff of the operating public relations firms have remained small.
In terms of entrepreneurial orientation, the operating public relations firms appear to be more aware of the importance of visioning. This should not be unexpected of them as their heads are more highly educated on business management than the top honchos of the defunct public relations firms.
As to clientele, it can be deduced from the data gathered that the clients of the operating public relations firms can be described to be more enlightened in public relations knowledge than possibly the clients of the defunct ones.
The operating public relations have more exposure to the advantages of adhering to the Code of Standard of Practice of Public Relations.
Over a period of almost half a century, definitely values of people have changed.
Necessarily, the surviving public relations firms have learned to lived more through those value changes than obviously those public relations firms that are now defunct.