Comparison of the external communication policies of the private and public sector: A qualitative study on how public and private organisations carry out their external
communication and media relations activities in Iceland
Birta Aradóttir 10602593
Master’s Thesis
Graduate School of Communication
Communication Science: Corporate Communication
30 January 2015
Abstract
This study investigates the differences and dynamics of external communication practices in public and private organisations, and how these differences influence the media activities of the two sectors respectively. A total of 20 in-depth semi-structured interviews were conducted with communication practitioners in both sectors in Iceland. The interviews were analysed and coded in three stages where thematic codes, patterns, and categories were documented, and compared across both the public and private organisations. The interviews revealed key characteristics which affect how public and private organisations communicate externally. The most valuable contribution of this study is providing new and additional insights on how external communication activities differ between the two sectors in terms of their aim, purpose, strategy, and content. Furthermore, this study suggests how public and private organisations’ interactions and relations with the media differ in their formality. The findings contribute to global conceptual and theoretical frameworks on external communication. Future research should test whether more differences (or similarities) can be identified in how public and private organisations communicate externally. This is especially important for this under-researched topic, the comparison of external communication in the public and private sector.
Keywords: external communication, media relations, public organisations, private organisations, interviews.
Comparison of the external communication policies of the private and public sector: A qualitative study on how public and private organisations carry out their external
communication and media relations activities in Iceland
Organisations are increasingly realizing the importance and efficacy of communication. External communication is a crucial function for all organisations, in the broadest sense of the word. That is to say, both public and private organisations heavily rely upon communicating externally to support the organisation’s objectives, maintain relationships with stakeholders, and build a favourable reputation. Having effective professionals to manage all
communication activities can help organisations disseminate information, and devise strategies and techniques to target publics. Van Ruler and Verčič (2005) proposed that the term ‘communication management’ should be utilised to describe this function, as managers are liable for relationship building among publics from a symmetrical perspective.
Communication practitioners in the Nordic countries have reportedly a strong strategic orientation because they focus on mediated communication, and combine decision-making processes and strategic planning to the communication activities in organisations (Verhoeven et al., 2011).
The communication profession is relatively young in Iceland and the oldest public relations agency was established less than 30 years ago (Bjarnason, 2004). However, the
communication profession is gradually gaining a foothold in the labour market, and has somewhat gained a recognition as a distinctive profession. Despite its level of development, less than a handful of publications exist on the communication and public relations profession in Iceland. Thus, there is a need for more empirical studies from Iceland to contribute to global conceptual and theoretical frameworks on external communication.
Depending on whether working in the public or the private sector, communication
practitioners are faced with contrasting environmental factors that influence their functioning. Scholars have named several differences in the managerial, structural, and organisational operations between the two sectors (Boyne, 2002; Ross, 1988; Van der Wal & Huberts, 2007). However, the differences in the communication practices in the two spheres have been addressed to a lower extent. Despite the growing interest, there is still a lack of a clearer understanding of the inner dynamics of public and private organisations’ external communication policy.
The counterpart to external communications policy is appearing in the news media. The media have been integrated into the everyday practices of organisations and are
simultaneously being disembedded and reembedded into the workings of the organisations (Giddens, 1984). Both public and private organisations make use of external communication aimed at the news media. Corporate media activities take place through a continuous series of interactions based on different aspects such as their formality, time frame, content and setting (Pallas & Fredriksson, 2013). Media reputation is the overall evaluation of how organisations are presented in the media, and a favourable reputation can increase the competitive
advantage and performance of organisations (Deephouse, 2000). Furthermore, the media can play a key role in legitimising new organisational structures (Pollock & Rindova, 2003). Therefore, it is of significant interest for organisations to engage and communicate with the media (Cornelissen et al., 2010).
As reported by scholars in communication science, there is a call for empirically supported research on the differences between public and private organisations and their external
communication policy (Aertsen & Gelders, 2011; Gelders et al., 2007; Liu et al., 2010; Pandey & Garnett, 2006). Accordingly, the research objective of this study is to provide an empirical investigation of the main differences in the external communication policies and media activities in public and private organisations in Iceland. This will be explored from the perspective of communication practitioners in both sectors, as they contribute to external communication activities in their organisation. In the first section, literature related to external communication, communication management, and media coverage will be discussed in relation to the public and private sector. A research questions is then developed which links external communication and media activities with public and private organisations. The data-collection procedure and analyses are described, results are presented, followed by a
discussion of the findings and their implications for future research.
Theory
The main distinction between public and private organisations is their ownership. Private organisations are owned by shareholders or entrepreneurs, whereas public organisations are owned by members of political communities. Furthermore, public organisations are largely funded by taxation and controlled by political forces. In contrast, private organisations are controlled by market forces and rely on fees paid directly by customers (Boyne, 2002). The primary objective of organisations within the private sector is to generate profit and maximize the wealth of the owners. For organisations in the public sector, the objective is to deliver the common good (Berman, 2002). Furthermore, the public sector is said to differ from the
1998). Aside from the managerial, structural, and organisational differences (Boyne, 2002; Ross, 1988; Van der Wal & Huberts 2007), the difference in the communication practices in the two spheres have been addressed to a lower extent with few exceptions.
Gelders, Bouckaert and van Ruler (2007) argue how the two sectors face different opportunities and challenges when it comes to their external communication activities. The public sector has a more complicated and unstable environment, additional legal and formal constraints, more rigid procedures, and more diverse products and objectives. Liu, Horsley and Levenshus (2010) compared government and corporate communication practices, and noted how communication practitioners in the two sectors do not encounter the same opportunities or challenges. The major differences were that the external legal frameworks and politics have a higher impact in the public sector, which affects their communication practices. Communication practices in the public sector experience unfavourable citizen perception of government communication, and they have larger societal influences (e.g. politics, laws, and federalism). Furthermore, their working environments are different since the public sector has to deal with extreme media and public investigation, less managerial support and professional development opportunities (Liu et al., 2010). Public sector external communication poses challenges such as greater complexity and uncertainty in
communicating with multiple stakeholders in increasingly turbulent environments, and therefore it requires additional effort on the part of communication practitioners (Pandey & Garnett, 2006). Public sector communicators are also more frequently confronted with harmful rumours than private communicators (Aertsen & Gelders, 2011).
Excellent communication management in the private sector
Different theoretical frameworks have been developed regarding communication within the context of the private or public sector. Grunig and Hunt (1984) identified four models of public relations or communication management in the private sector: press agentry/publicity model, public information model, one-way asymmetrical model, and two-way symmetrical model. The four models describe different ways in which organisations can communicate with their stakeholders. Scholars have used the underlying principles of the models to expand their scope on source credibility, information subsidies, and corporate social responsibility (Waters & Jamal, 2011). Communication scholars in various countries indicate that the four models of communication management are indeed practised in the private sector (Oksiutycz & Enombo, 2011; Arceo, 2004; Lim et al., 2010).
The press agentry or publicity model represents a one-way approach to communicate to the general public. A communication practitioner who practices the press agentry or publicity model uses persuasion and manipulation to influence the public to act as the organisation wishes. A practitioner who practices the public information model uses press releases and other one-way communication approaches to disseminate information from the organisation. In that way, the practitioner acts as an in-house journalist. Both the press agentry and the public information models disseminate information from the organisation to the publics, generally through the means of media. The two-way asymmetrical model differs from the other two models because then the practitioner uses two-way communication. That is to say, information is sought from and given to the general public. However, corresponding with the press agentry model, the two-way asymmetrical model also uses persuasion and manipulation to influence the publics. Moreover, research is conducted to figure out the best means to persuade stakeholders. The two-way symmetrical model refers to two-way communication where the practitioner adjusts the relationship between the organisation and the general public. Communication is used to negotiate with the public and resolve any conflict, in addition to promote a mutual understanding and respect between the general public and the organisation (Grunig & Grunig, 1992).
Grunig (1992) developed the excellence theory which accounts for private sector attributes and the two-way symmetrical communication model. Practitioners should use the two-way symmetrical communication in order to develop and cultivate relationships with strategic publics. It is the most effective model to develop and achieve goals desire by both the organisation and the general public (Grunig, 2006). However, the model is not always employed by organisations because an authoritarian dominant coalition (the most powerful people in an organisation) might see this approach as a threat to its power, the model does not fit with the culture or the schema for communication management in the organisation, or the communication department does not have the potential to carry out the preferred model. Grunig asserts that communication departments should be headed by a manager (rather than a technician), the communication practitioners should have a training and knowledge of the two-way symmetrical model, and there should be equal opportunities for both genders in order for the department to reach its full potential (Grunig, 1992).
Public sector attributes and the impact of communication
Research on public sector communication is somewhat limited and has mostly dealt with specific services or been country-based (Lee, 2009). What distinguishes communication
management in the public sector from the private sector, is that the external communication within the public sector has to comply with rules of transparency and information access for the public (Botan & Taylor, 2004). Grunig and Jaatinen (1999) investigated communication practices and indicated that there is a need for a theory which adapts the principles of the excellence theory in a public sector setting. They asserted that public organisations are likelier than the private ones to practice the public information model because the public sector has more complex stakeholder relationships which they need to take into account.
Liu and Horsley (2007), developed a theoretical and operational model named the government communication decision wheel. The model provides an initial framework for reconceptualising the way in which communication management is practiced in the public sector. It helps public communicators to select the most effective ways to communicate based on the situation, the environment, and available resources. Liu, Horsley and Levenshus (2010) tested the wheel’s theoretical constructs and propositions. They designated nine
environmental attributes of the public sector which were divided into two categories:
influences on daily communication activities (federalism, legal frameworks, media scrutiny, public good, poor public perception, and politics) and influences professional development opportunities (devaluation of communication and leadership opportunities). They asserted that even though communication practitioners in both sectors reportedly engage in media relations activities (respond to media inquiries, track media clips, and disseminate media releases), develop strategic plans and have a positive assessment towards the managerial support they receive for their communication activities, they do not share the same role responsibilities. Communication practitioners in the public sector have more responsibilities compared to those in the private sector, because they oversee non-communication activities.
Furthermore, Liu, Horsley and Levenshus (2010) suggest that communication management in both the private and the public sector would benefit from an integration of communication functions. The reason for the suggested integration is because even though communication practitioners report that external and internal communications are equally important to organisations, they focus more on the external part of communication. This is in line with Grunig’s (1992) excellence theory, who suggests that both internal and external
communication activities should be integrated into a main department.
Reflective communication management
Communication management can be used as a tool that can be utilised to maximise the efficiency of communication of organisations, and as a strategic management function to
build long-term relationships with the publics (Grunig et al., 2005). Communication management can contribute to strategic management in the following six ways: regular
research activities, research to answer specific questions, other formal approaches to gathering information, informal approaches to gathering information, contacts with knowledgeable people outside the organization, and judgement based on experience (Grunig, 2006). In order for communication management to become institutionalised as a strategic management function and viewed as a standard operating practice, organizations need to practice the bridging activity of communication management rather than the buffering activity (Grunig, 2006). The buffering strategy refers to how organisations buffer or protect themselves from the external environment. That is to say, organisations are either trying to keep the
environment from interfering with its internal plans and operations, or trying to influence the external environment. The bridging strategy refers to the means of adapting organisational activities in order for them to conform to external expectations. Organisations try to build a bridge with the publics in their environment (Meznar, 1995).
European communication management, public relations or strategic communication is distinguished in terms of a so-called “reflective dimension” (Verhoeven et al., 2011, p. 3). The reflective dimension refers to a function where the organisations are viewed from the outside, or the public view. That is to say, organisations need to harmonise their operational dimensions with the public opinion so they can achieve legitimacy, and maintain their license to operate (Van Ruler & Verčič, 2005). The changing values in the society are analyzed and discussed with employees of the organisation. The reason for this is that this way the
organisation adjusts itself effectively to its external environment (Verhoeven et al., 2011). According to Van Ruler and Verčič (2005), the communication manager has four main roles which are the following: counselling considerations on legitimacy, coaching members of the organisations to advance their communicative competencies, conceptualising communication plans, and executing communication plans and the means of communication for the
organisations and its members. The counselling role is considered to be the most fundamental one by the reflective approach of communication management as it facilitates the
developments of the vision and mission of the organisation, corporate stories and corporate strategies for the organisation.
Verhoeven, Zerfass and Tench (2011) concluded that communication managers in Europe act as strategic facilitators, and that their strategic orientation is strong because they support business goals of the organisation and help define them. This is in accordance with reflectivity being the central characteristic of communication management in Europe. Furthermore, this
reflectivity dimension of communication management distinguishes European communication management from the North American one. This is because for example with Grunig’s (1992) excellence theory, the starting point is the perspective of private organisations and the communication management, whereas with the reflectivity dimension the starting point is the outer perspective of the public sphere (Verhoeven et al., 2011).
Favourable media impression
Media reputation is a strategic resource which facilitates organisations’ competitive
advantage. The media conveys information and furthermore, creates and presents reputational assessments to their audiences (Deephouse, 2000). Organisations use communication to increase the amount of favourable media content and to generate a positive impression of the organisation (Kim et al., 2007). Deephouse (2000) examined the relationship between media favourability and financial outcomes, and concluded that favourable media coverage pays off financially. Carroll and McCombs (2003) researched the influence of the news media on corporate reputations and asserted that larger and older organisations receive more attention and exposure; organisations may receive more favourable coverage if they are in proximity to a particular news source and; organisation’s reputation can be attributed to the popularity of the CEO.
Many organisations believe that favourable messages in the media generate favourable impression of the organisations, whereas negative messages lead to negative impressions. Therefore, disseminating favourable media content is the most effective way to manage corporate reputation (Kim et al., 2007). Organisations which place great importance on increasing positive media impression for building a favourable reputation in the media, recruit press agents or ‘in-house-journalist’ (Grunig & Grunig, 1992) and measure their success in the amount of proposed publicity and placement rate in the media (Kim et al., 2007).
To evaluate the extent of the government communication decision wheel (Liu and Horsley, 2007), the excellent communication management (Grunig, 1992), and the reflective
communication management (Van Ruler & Verčič, 2005; Verhoeven et al., 2011) practiced in Iceland in the public and private sector, the following research question is designed for this study:
RQ: What are the key differences in the external communication policies between private and public organisations, and how do these differences influence the media activities of the two sectors respectively?
Method
Qualitative research method was chosen for this study to gain an understanding of communication practitioners’ perception of how the external communication policy in the public and private sector differ. Glaser and Strauss’s (1965) entered the methodological scene in the mid-1960s with their grounded theory method. Their theory offered systematic
strategies for qualitative research, and was an important response to the quantitative methods which had gained dominance as a scientific methods at the time (Charmaz, 2006). The grounded theory approach is a tool for qualitative research where an area of study is taken as the starting point and relevant additions to this area are then allowed to emerge (Corbin & Strauss, 1990). A growing number of scholars have now moved the grounded theory away from the positivist assumptions of the approach, and use the theory as guidelines for research process and theory development. Charmaz (2006), from a symbolic interactions theoretical perspective, uses the basic grounded theory guidelines and assumes that “any theoretical rendering offers an interpretive portrayal of the studied world, not an exact picture of it” (p. 10). Thus, the grounded theory methods are used as flexible guidelines (not as methodological rules), and the theory which derives from the data is not formal in a sense. Rather, the theory is substantive because it is closely related to the context in which the studied phenomenon occurs, and the researchers can never separate themselves completely from the collected data. Therefore, the results which emerge are based on the researcher’s interpretation (Charmaz, 2006). Since the differences between the public and private sectors’ external communication policies have not been systematically researched before, it was considered necessary to employ the grounded theory guidelines as suggested by Charmaz (2006) for this study.
Sample and sampling
As in line with the grounded theory guidelines suggested by Charmaz (2006), the selection of participants and organisations had to be relevant to the emerging theory. The organisations were assessed based on the following criteria: (1) ten organisations had to be in the
commercial domain and be privately held; (2) ten organisations had to have a public task and receive financial support from the government. Based on statistical classification of economic activities in the European Community (European Commission, 2010), the public and private organisations were described in terms of their operations (for an overview of the
demographics of the research sites see Appendix A).
The communication practitioners were selected through a purposive sample. The only criterion for the selection of the practitioners was that they had to practice public relations or
communication in their respective organisations. That is to say, the practitioner had to have external communication tasks as a part of their daily work. Participants were given
information about the aims of the study during initial contact (see factsheet in Appendix B). The 10 communication professionals from the public sector held titles such as marketing-and communication manager, managing director, director of culture and communications, and public relations officer. Five of the communication managers from the public sector were female, and five were male. Their age ranged from 34-60 years old, and all of them worked full-time. The 10 communication professionals from the private sector held titles such as managing director, territory manager, director of communications, branding and
communication manager, rights director, and director of marketing and sales. Five of the communication managers from the private sector were female, and five were male. Their age ranged from 35-58 years old, and all of them worked full-time (see Appendix A for additional demographics of the study informants).
Data Collection
To examine how public and private organisations communicate externally, interviews were held with communication practitioners in both sectors. Following the methodological
suggestions of Charmaz (2006), intensive interviewing was the chosen data-gathering method. An intensive interview “permits an in-depth exploration of a particular topic with a person who has had the relevant experiences” (Charmaz, 2006, p. 25). It is a useful method for interpretive inquiry. Semi-structured questions were devised to understand participants’ interpretations of external communication in both sectors. This resulted in a total of 20 in-depth semi-structured interviews which lasted between 22 minutes to 46 minutes, and focused on the specifics of the practice of external communication. The interviews took place either at the participants’ workplaces or through Skype during a two week period in November 2014. All interviews, both face-to-face and via Skype, were recorded and subsequently transcribed word for word to avoid misinterpretation of the answers, yielding in 239 pages of data. The interviews were guided by a number of broad open-ended questions. The practitioners responded to multiple types of questions: how external communication activities were executed in the organisation, interactions with the media, key characteristics of public and private organisations, managerial support, public perception, their role and responsibilities as communication practitioners, main challenges and opportunities, and other work-related questions (for an overview of the interview guide see Appendix C).
Data Analysis
The software NVivo, a qualitative data analysis package, was used for analysing and coding the data. Coding shows how the researcher selects, separates, and sorts the data to start an analytic account of them. Coding refers to “categorizing segments of data with a short name that simultaneously summarizes and accounts for each piece of data” (Charmaz, 2006, p. 43). Charmaz’s (2006) grounded theory guidelines for coding were employed to analyse the transcripts from the interviews. Furthermore, memos were written simultaneously along with the coding process to further explore ideas about the codes and to compare the data. Memos direct further data-gathering and helps raise certain codes to conceptual categories (Charmaz, 2006).
The data were analysed in three stages. Firstly, the interviews were coded in an open-ended manner. This involved in documenting thematic codes and patterns. During the open coding process, memos from each interview were written down by the researcher and transferred into a table. These memos mainly consisted of comments on how the practitioners experienced different opportunities, and challenges in their job or especially noteworthy issues. At this stage a total of 179 codes were detected. Examples of these open codes appear in Appendix D.
In the second phase of the analysis, NVivo helped to link all of these codes which were believed to be related, and emerging categories were documented. For example, when looking at media relations activities, all of the open codes which related to that concept were linked together (e.g. off record information, personal relationships, pitching stories to the media, press releases, news conferences, positive press plan, avoiding negative coverage, responding to media inquiries). Therefore, when wanting to only read quotations which concerned media relations, NVivo would produce a document that contained only those quotes. This enabled the codes to be logically distilled into 19 recurring themes and main categories which were considered to be the most relevant for the study.
Thirdly and lastly, after noting the overall emergent trends with regards to external
communication and media relations activities, the relationships noted in the second stage were compared across both the public and private organisations. At this stage the data was
interpreted further and questions were raised, such as: do communication practitioners
experience more, less, or equally political influence in their daily work? Why or why not? The entire coding process yielded both similarities and differences in the external communication policy of the private and public organisations in the sample. The data thus reflect the results discussed in the next section.
Results
The interview data revealed how public and private organisations manage and execute all external communications, although focus and results varied amongst them. All of the
communication practitioners (N=20) interviewed were in agreement that public and private organisations do not share the same roles or responsibilities. The respondents agreed that public organisations have a larger obligation to provide stakeholders and the public with information. This is due to the fact that public organisations have the responsibility to serve the public and keep them informed, while the private organisations serve their own interests. The two sectors encounter diverse opportunities and challenges which impact their operations and functions. As Figure 1 illustrates, the key characteristics which separate the two sectors influences their external communication and media activities. The following section will highlight the key differences found between public and private organisations with representative quotations to support these concepts.
Figure 1. Relationship between public and private organisations’ external communication and media activities.
Key characteristics of private organisations
Private organisations focus on disseminating favourable information about the organisation because they find it vital to maintain and improve the overall image and reputation of the firm, as explained by a communication manager in a financial institution:
“I think, as I explained previously about external communication, that the image of organisations is really important and reputation is very important. [...] There is always more and more emphasis being placed on organisations to be more responsible and also they are often told that this will help them if they suffer reputational risk. So we need to be aware that our consumers are always becoming more aware.” (Respondent Q, female, private organisation).
Private organisations Public
organisations
External
communication policy Media relations
The communication practitioners in the private organisations stressed the importance of receiving positive media coverage, creating a crisis communication plan, implementing a CSR policy, and communicating the vision of the organisation to their stakeholders. This is done to develop and support an image in the minds of the consumers, employees and investors of the private organisations. Furthermore, all of the private organisations were involved in regular research activities which focused on their brand perception or image. Five of the private organisations conducted research to explore customer satisfaction, while two relied mainly on sales figures as basis for how they were being perceived by their customers.
All of the ten communication practitioners expressed how they were pleased with the managerial support they received. They had close relationships with their senior manager, which involved in regular meetings where their advices and opinions were sought. The practitioners expressed how they made all “minor” decisions regarding their communication activities based on their own judgement. They generally perceived management to be supportive of their work and value their contribution. Although the communication practitioners had the opportunity to give their inputs at crucial meetings and contribute to strategic planning, they did not have a final say in any crucial decision making in
organisational strategies. The practitioners did not feel that a membership in the dominant coalition was a requirement for communication excellence, as indicated by a statement made by a communication manager in a financial institution regarding his relationship with the CEO of the organisation:
“So you know, he has 9 members in the executive board and they all have a defined role. He doesn’t drag me into all decision-makings, even though I know some PR people would want to be a part of that. It’s more just if the issue is sensitive and could end up in the media, then it’s likely that I’m asked for my inputs which can then influence the decision-making process. But that’s just in rare cases. [...] But as I was saying, I completely understand that things need to happen without always getting everyone's input and delaying the process for 2 weeks or something because everybody wants to talk and express their views.” (Respondent T, male, private organisations).
Five of the private organisations lobby for legislative changes. This is done because the organisations want to influence decisions made by the government which can have an impact on their operations. Thus, the private organisations seek to establish good external
relationships with legislators working for those ministries, since they might influence their business operations. This is done in order to serve the private organisations’ own interests and accomplish their business objectives.
The private sector is legally regulated by the state and the private organisations reported having to comply with financial regulations or competition law. By acting in accordance with financial regulations, the two financial institutions interviewed revealed how they cannot disclose any information which might harm their customers, and they have to maintain market confidence. As a result, these institutions do not feel any pressure of having to reveal
information concerning their business or private concerns of the customers, unless they are required by law to provide this information. Thus, they have an obligation of confidentiality to protect their consumers. The remaining eight private organisations interviewed operate under competition law, and are prohibited any abuse of dominant position in the market or any anti-competitive practices.
The ten communication practitioners interviewed were either part of the marketing department in the organisation or worked closely with the department. It is expected of the communication practitioners to support the income flow of the organisation. As a practitioner in the retail trade explained:
“... it is just this constant maintenance of communication with all stakeholders. You always need to, you see, I always say that selling a product or service is nothing more than just communication. If you know how to communicate, then in most cases you are a very good salesman.” (Respondent K, male, private organisation).
The remaining nine practitioners were in agreement with this statement, and said that they have several underlying objectives but that the overall goal was to support the organisation’s sales. They emphasised how communication plays a very important role in this. Furthermore, four of the communication practitioners were accountable for
communication the organisation’s financial strategy via investor relations.
The private organisations placed great importance on communication excellence and more often than not, recruited external public relations assistance. Two organisations outsourced all of their projects to public relations agencies. The reason for this was that one had international operations, while the other had a small communication department and was therefore unable to manage all their activities on their own. Five organisations got help from public relations agencies which mainly involved in getting advice and assistance to develop communication strategies, have them send out press releases through their own personal media network, and crisis communication. Two organisations trained managers and other employees in public speaking, and prepared them for how to represent the
organisations in television, radio or newspaper interviews. This involved in informing the managers and employees in what they should or could say publicly, as well as teaching them on how to react to certain questions. One organisation had a strict rule that only the CEO and the communication manager could publicly speak on behalf of the organisation, as explained by a branding and communication manager in the transport industry:
“We try to have here certain rules on interactions with the media. There is no one who talks to media here or is authorized to speak to the media expect for me and the CEO. Nobody else. And this is just a rule which is introduced to everybody who starts working here. All newcomers are informed about this, everyone is regularly reminded of this and it is not done to be annoying but because journalists know their profession and they know how to get our people to talk. That’s what they’re good at. Our people here don’t know how to avoid these traps.” (Respondent S, female, private organisation).
When it came to integration of communication functions, in two organisations the human resource management was responsible for the internal communication, and in another two organisations the marketing departments were responsible. The
communication practitioners were in close contact with these departments. The remaining six practitioners were responsible themselves for the internal communication activities within their organisation, which revolved around sending out press releases through the internal website of the organisation or by e-mailing the employees, and with regular staff meetings.
Key characteristics of public organisations
The ten public communication practitioners interviewed, expressed how they did not experience any direct political influence on their work duties. However, they all agreed that the government does in fact have an influence in shaping their organisational structure, as a communication manager in the transportation sector argued in this context:
“But for the activities of the organisations, then of course yes. We are always dependent on the political authority. We belong to a ministry and then of course, the government’s policies impact public organisations, so we are naturally conditioned by their opinions at each occasion. What emphasis is placed on service or our flexibility? But of course this is not something which changes overnight or straight after elections.” (Respondent I, female, public organisation).
Besides political influence, the public organisations also experienced legal influence. Freedom of Information law requires public organisations to reveal existing information if
requested, and respond to all queries they receive. Therefore, all of the communication practitioners were aware of the importance of information transparency, as asserted by a communication manager in a law enforcement agency:
“There is certainly a lot of requirement of disclosure here. And, there is the Information Act so we need to work according to the law. And even though certain issues are discussed which maybe the general public shouldn’t necessarily have access to, you know because of some reasons reported by the Information Act, it isn’t necessarily stopping us in providing information.” (Respondent J, female, public organisation).
The practitioners do not experience it as a negative aspect having the obligation of disclosing information. They embrace the importance of giving the correct information, and not to conceal anything that occurs within the organisation because it is required by the law. A great emphasis is placed on consistent accuracy with all the information that is disseminated in public organisations. The standard procedure in eight of the public organisations was that when any information is disclosed, it has to be proofread beforehand.
When it came to the communication practitioners’ role responsibilities, they were given diverse tasks and obligations. One practitioner has the obligation of overseeing the library in the organisation he worked for, one was responsible for the casting of productions, two practitioners managed all the marketing for the organisation, and one practitioner was responsible for event and cultural activities on behalf of the organisation. However, the practitioners were rarely given the responsibility to act as a spokesperson on behalf of their organisation. Instead they have the role of a communication facilitator. Furthermore, only two of the ten practitioners were responsible for both the internal and external communication activities on behalf of their organisation. The other eight practitioners were solely responsible for the external communication.
All of the respondents mentioned the limited budget and resources which their
communication department received. They expressed how the limited financial support they got from the government often inhibited their operations. A communication manager in the transportation industry said the following:
“We are of course limited by the Finance Bill. Which is perhaps also one of the big issues which I think people have a great understanding of, we don’t receive the resources that we believe we need to carry out our tasks.“ (Respondent G, male, public organisation).
In order to receive the financial support from the government, the public organisations were faced with the challenges of having to justify their existence. All ten of the
communication practitioners expressed how they felt that it was their obligation to inform the general public and taxpayers what their money was being spent on. They expressed the importance of communicating a positive image of the organisation to the public, since a positive image can support their financial support. Furthermore, their research activities suffered as a result of the limited financial support which their organisations received. This was summed up by a marketing and communication manager in the entertainment industry:
“But the budget is that way you know, you cannot spend anything on like buying any research. But you use those ways which you can possibly take advantage of to try to yes take more informed decisions.” (Respondent A, female, public organisation).
The practitioners expressed how they wished that more research would be conducted to measure the image and reputation of the organisation. Out of the ten public organisations interviewed, five did not conduct any formal research. Out of the remaining five organisations who did conduct research, two organisations bought access to research made by external agencies, one organisation relied on media monitoring services, and two organisations conducted their own research to answer specific questions.
The managerial support that the communication practitioners received was met with mixed responses. Only one practitioner experienced great support and understanding of her role in the organisation. The rest of the practitioners said they were rarely asked for their input in any major organisational decision-making. The practitioners made decision only related to their communication activities. A recurring theme amongst the practitioners was that they felt they were not informed (or if informed at all) early enough on any crucial issues occurring in the organisation. All of the practitioners were present at meetings with the board of directors in the organisation. However, as described up by a communication manager in the transportation industry, they had more of a listening role rather than a decision-making role:
“No but I’m not a defined, you see I’m not a manager but there is a board of directors and a CEO, and then there are those individuals who need to be informed about all the decisions, who also have a seat at the meeting, which are the communication manager and human resource manager.” (Respondent I, female, public organisation).
Four of the organisations had hired external professionals to assist them with their
communication activities. One of them hired a public relations agency to help them develop a crisis communication plan around one isolated issue; the other three had received assistance with promotion around certain events from an advertisement agency.
External communication in private organisations
The content and information disseminated varied between the public and private organisations. All ten of the private organisations had some sort of a promotional plan because they were all for profit organisations. Their main objectives were to increase sales, maintain the corporate image, advertising, direct marketing, and getting positive publicity. This was evident by a statement made by a communication manager in the information and communication industry:
“We are like everyone else, pointing towards return on investment. We can have some sub-goals which are the number of positive news, dealing well with crises, try to level out negative news, get our views across, all of that. But these are just sub-goals. The overall goal is to support the company’s sales and I think there isn’t always an understanding of how important communication is in all of this.” (Respondent M, male, private organisation).
Two organisations used solely direct marketing. The other eight organisations bought advertisement in the newspaper, radio and television. They also strived for positive media coverage as a form of indirect advertisement and publicity. The private organisations focused on modifying public perception as means of reinforcing their positive image. If any wrong information or misunderstanding about the organisation was in the press it was vital for the private organisations to correct it as a director of communication in the transportation industry explained:
“As for my job, is to perhaps prevent any wrong coverage. And then you are maybe trying to correct any inaccurate information which is in the press, and then to try to prevent that [name of organisation] is perhaps in the media for something which is not true or nonsense, or maybe just to explain some issue which journalists are wondering about. And then of course to try to get positive coverage about the company in the media. And we use this a lot. PR is very active here.“ (Respondent P, female, private organisation).
Private organisations set long-term goals when it came to all their external communication activities. Seven of the private organisations express how they focused on achieving
long-term results of the communication strategies they set out to do. This involved in maintaining relationships with all stakeholders, continuous improvements in the organisation’s
competitive position, employee relations, strategic planning, and continue to support a positive corporate image. This was summarised by a communication manager in the information and communication industry:
“First of all, try to give a true image of the company, and... that would be the main objective. And then try not to, or you know just be honest and try not to do things which you shouldn’t be trying. And think long-term and not short-term, not to you know, it isn’t necessarily good to get a media coverage now which is a winner for the day but in the long run you are not necessarily the winner. The
communication also has to rhyme with the company, products and services.” (Respondent M, male, private organisation).
Six of the ten private organisations had proactive strategies of external communication. The communication practitioners interviewed revealed how they were responsible for
foreseeing any issues which might receive negative press later on. The organisations stressed the importance of being the first to report if any big contracts were signed, explain to the media beforehand if there were any complicated issues to avoid a misunderstanding, and to be careful in responses to enquiries from the customers or the media. A director of marketing and sales in retailing further expressed the importance of proactive communication:
“If we’re going to tell every time that we just know well in advance that regulations are going to change, and we need to replace some ingredients, then we just do it right away. We don’t let them force us to do it. It’s just a matter of always being a step ahead. It just makes so much difference. Always be proactive when you possibly can.” (Respondent R, male, private organisation).
External communication in public organisations
All of the public organisations interviewed used external communication to introduce the general public what services they provide them with. That is to say, the organisations want to maintain their public perception by informing the public of their role and activities.
Furthermore, the content disseminated is public information and is noteworthy for the general public as explained by a director of culture and communications in a municipality:
“I think, first of all to disseminate information that is important for the residences, just you know positively, so that people can realize what is going on, what those taxpayers are paying for, and what we are doing with their money, what is being done with it. And then secondly, of course to let them
know what services are available to them, are we increasing the service or changing it are we improving it or reducing it? This is information which we are supposed to disseminate and if any danger is coming then it’s very important to inform the town.” (Respondent E, female, public organisation).
The communication practitioners interviewed were all in agreement that their main task was to be responsive to any enquiries or questions which they received. The practitioners contributed in responding to any positive or negative issues on behalf of the organisation. They felt that it was crucial to always communicate the views of the organisation, unrelated to the nature of the issue, in order for the public not to perceive that the organisation is hiding any information. This was asserted by a communication manager in the transportation industry:
“Yes it is really important to respond whether or not it’s negative or positive. Just so the views of the [name of organisation] are presented. And so that the public doesn’t experience that the [name of organisation] is withholding any information. For example, when I started working here, there was a heated debate about a certain issue, and it was just very important that we got our views across and presented our explanations.” (Respondent G, male, public organisation).
The public organisations respond to each and every enquiry they receive. However, depending on the subject of the enquiry, the duration of their responses vary. If the enquire requires an elaborate response, the communication practitioners have more often than not to consult with specialists on the subject from the organisation. That way, they want to ensure the accuracy of the response instead of delivering quick responses. To guarantee the reliability of the response, as reported by eight of the communication practitioners, it has to be
confirmed by a manager before being communicated externally. A public relations officer in a regulatory organisation described this process:
“But before I respond, I have to ask the relevant expert who could know the answer and ensure that it is even possible to respond to the enquiry in any way. Then he perhaps comes up with an explanation and I formulate a possible answer, send it back to him and he seems fine with it, then I usually have to ensure that his senior manager agrees that this is answered in this way, and then I have some final notes, which then my senior manager ensure that he thinks it’s okay. Then I send the answer.” (Respondent H, male, public organisation).
Private organisations’ interactions with the media
All of the ten private organisations maintained and cultivated good relationships with the media. Eight of the organisations outlined certain rules on interactions with the media and in those organisations, the communication practitioners and the CEO of the organisation, acted as spokespersons on behalf of the organisations regarding any media inquiries. Furthermore, according to the practitioners, a vital aspect of pitching stories to the media was to have established a personal network in the media. The practitioners initiated positive media
coverage by coordinating events or news conferences, using word-of-mouth, through personal relationships with journalists, hiring external public relations agency, or by sending out press releases. Majority of the communication practitioners explained that when they pitched a story to the media, it was helpful to follow-up with the suggested story. This is done in order to secure that the organisation receives the desired media coverage, as explained by a
communication manager in the financial industry:
“Well I mean every company, I think, tries to promote itself in anything which can be considered to be newsworthy and positive. So we try to do that. And it just varies how that goes. We are very proactive and send out press releases and even try to follow-up with a phone call. If we have a news conference then we inform the media with a press release and even call afterwards and check if they are going to show up.” (Respondent T, male, private organisation).
Six of the private organisations utilised a media monitoring service to measure the number of positive and negative media coverage which the organisation received. Four of them had set themselves a goal of reaching a certain number of positive news in the media about the organisation each year. The reason for this positive media coverage plan was reasoned by a branding and communication manager in the transport industry:
“Here, we are of course always trying to promote positive news, absolutely. It matters a great deal and we, this is also just part of marketing to promote positive news and we’re just telling the Icelandic nation how extensive we are, how mighty our operations are and so on. This is all part of our
branding. This costs nothing, if everything goes well.” (Respondent S, female, private organisation).
As explained by the practitioners, positive media coverage for the organisation is vital for the corporate brand and image, as well as being part of their marketing strategy. In addition, if any negative press about the organisation was occurring, eight of the private organisations felt that it was crucial to intervene and get their point of view across. This was usually done by
responding in the media, and especially in the online media. This is because, as a
communication manager in the communication and information industry explained: “... the internet doesn’t forget anything.” The remaining two organisations were often legally restricted to comment on negative coverage due the nature of their operations.
Four communication practitioners frequently gave off record information to the media. That is to say, they had established a personal relationship with certain journalists and gave them information to explain a particular issue which they in return trusted that they would not be quoted on saying. One of those practitioners had an exchange relationship with the media where he gave off record information on other institutions or organisations, and as
compensation his organisation received the media coverage he wished for.
Public organisations’ interactions with the media
It varied to some extent how the ten organisations interviewed interacted with the media. The objective of the organisations influenced how they enacted their media relations. Two of the organisations were for-profit organisations, while the rest were non-profit organisations. The two communication practitioners working for the for-profit organisations frequently sent out press releases, and ensured media coverage on behalf of their organisation. The
practitioners worked closely with the marketing departments of the two organisations. Out of the remaining eight non-profit organisations, one of them received partly financial support from the government and was partly funded through donations. This particular organisation relied heavily on media coverage as a form of free publicity.
The remaining seven communication practitioners expected the media to initiate contact with the organisation to seek the needed information. The practitioners viewed the media as being a channel or a platform to reach the public, and therefore found it essential to respond to all media enquiries. A communication manager in the transportation industry said the
following:
“So we have such a great obligation to the general public in this respect and the media are certainly just our contact with the public in many ways. Thus, the media are a priority for me. So if they knock on my door, then they are a priority.” (Respondent I, female, public organisation).
The practitioners also sent out press releases but as explained by a communication manager in a law enforcement agency, it was not always necessary because public organisations are monitored by the media:
“I’m not necessarily e-mailing press releases to the media, but I rather just put them on the website and then they pick it up. We are clearly just constantly monitored by them so in fact it isn’t necessary to send out press releases to the media unless it’s something exceptional, then we prefer using it.” (Respondent J, female, public organisation).
The practitioners perceived that the media was accessible if there was any information which concerned the general public and needed to be disseminated, usually the media would assist them to do so. However, if the issue at hand was of positive nature and not necessity, the media was unlikelier to publish it. This was not a great concern for the practitioners as explained by a director of culture and communications in a municipality who discussed her relationship with the media:
“So this is a partnership that has certainly benefitted me pretty well, and you know of course they get a lot of harassment and I think that’s also part of the job, is to realise that some things won’t be picked up by the media. And there is no reason to be bothering journalists too much about every single issue, even though you might think it’s fun and newsworthy. [...] If the journalists see some fun approach in the press release you send them, then I think that it’s up to them to evaluate that.” (Respondent E, female, public organisation).
As asserted by the practitioner, the public organisations do not push the media to publish positive news about the organisations but rather if the information is noteworthy for the general public. The same goes for any negative press which the organisation receives, as the practitioners understood that it is the public’s right to have access to information, and it is therefore a necessity to disclose all information unrelated to whether or not it is negative or positive.
Discussion
This study was applied to investigate how public and private organisations carry out their external communication and media relations activities in Iceland. Based on the interviews, four key aspects were outlined which demonstrate how the external communication activities vary between the public and private sectors:
1. Aim – long vs. short-term.
2. Purpose – modifying vs. maintaining public perception. 3. Strategy – proactive vs. reactive.
Before understanding what these four different aspects entailed, the main differences between the public and private sectors in terms of their organisational, managerial, and structural operations were mapped out. This was done in order to give an account of why and how the communication practices in the two spheres differ in terms of these four aspects. Various characteristics were analytically derived and assigned to either public or private organisations. The main properties ascribed to private organisations were the following: identity management, strategic planning, managerial support, lobbying, financial or competition regulations, and marketing activities. Public organisations where assigned the following counts: government influence, legal and formal constraints, managerial supervision, information disclosure, varying roles and objectives, and limited budget. These key
characteristics further explain why the external communication activities vary between the two sectors and moreover, how their media relations differ in terms of formal or informal interactions. The original conceptual model illustrated in figure 1 has therefore been expanded to include these key characteristics which influence how the public and private organisations carry out their external communication and media relations. The expanded conceptual model is illustrated in figure 2.
Figure 2. Characteristics of public and private organisations’ external communication activities and interactions with the media.
The interview data revealed how private organisations practice the press agentry model (Grunig & Hunt, 1984). As expressed by the communication practitioners themselves, the main purpose of external communication was to build a favourable overall image of the organisation by disseminating positive information and other promotional variables such as advertising, direct marketing, and publicity. Their external communication duties revolve around modifying and influencing both public perception, and the image of the organisation through proactive strategies. This also includes setting long-term goals such as maintaining good relationships with all stakeholders, and keeping a good hold of their competitive position. The proactive strategies are executed to prevent negative media coverage and an unfavourable representation of the organisation. Furthermore, the private organisations try to
control and influence their external environment. That is to say, they actively try to buffer their environment (Meznar, 1995) by for example lobbying and disseminating favourable information. By practicing the buffering strategy, private organisations fail to institutionalise communication management as a strategic function (Grunig, 2006).
Meanwhile, public organisations practice the public information model (Grunig & Hunt, 1984) as opposed to the press-agentry model. This is because public organisations have an obligation to distribute organisational information, and communicate truthfully and
accurately. Therefore, public organisations do not solely disclose positive information or utilise other means of persuasion to influence the general public. They are aware that the general public has the right to be informed about their operations and they have to disclose all information, both positive and negative. They disseminate public information with mainly press releases or by posting news on their corporate website where the media and general public can access it. That way, the public organisations can maintain their public perception. Since the public organisations do not place any great importance on increasing their positive media perception, they do not recruit in-house-journalists (Grunig & Grunig, 1992). In addition, the public organisations practice the public information model because they have more complex stakeholder relationships that they have to take into account (Grunig & Jaatinen, 1999). Furthermore, the public organisations do not outline any specific long-term goals or proactive strategies to persuade or manipulate the general public. Instead they focus on being reactive and responding to any inquiries they receive to constantly keep the publics and stakeholders informed of their operations. To a certain extent, they build a bridge with the publics by adapting their organisational activities to conform to external expectations
(Meznar, 1995). This is because public organisations are dependent on receiving financial support from the government and thus they need to adapt their operations to the expectations of their funders, who are the taxpayers or in other words the general public. However, even though Grunig (2006) suggest that organisations which practice the bridging activity have institutionalised communication management as a strategic function, the public organisations have not. This is because public organisations do not conduct research to answer specific questions, they have not integrated their communication functions, and the communication practitioners do not have the opportunity to make decisions based on their experience.
The sectors differ in terms of their interactions with the media. The private organisations see the media as a strategic resource to support their competitive advantage by disseminating positive impression of the organisation which is in accordance with previous studies (Kim et al., 2007; Deephouse, 2000). Public organisations utilise the media as a platform or channel to
connect with the general public. They are more formal in their interactions with the media, compared to private organisations, because they do not disclose any off record information and use the media to keep the public informed. As opposed to that, private organisations rely on their personal network to pitch stories to the media and receive positive media coverage, thus implying rather informal media interactions.
Given the young age of the communication profession in Iceland (Bjarnason, 2004), it gives the indication that the communication field in Iceland is not as professionalised as it is in the rest of the other Nordic countries. However, to a certain extent the communication practitioners in both sectors in Iceland act as strategic facilitators because they do support the goals of the organisation and help influence them. One of the most fundamental roles of communication practitioners is counselling considerations on legitimacy, which is something that the practitioners in both sectors in Iceland practice because they facilitate the vision and strategy of their organisation. This is in line with reflectivity being a key feature of
communication management in Europe (Van Ruler & Verčič, 2005; Verhoeven et al., 2011). Communication practitioners are advised to utilise research which is based on their
practice specialties, and this study presents practical implications for practitioners in the public and private sector. Even though the two sectors might share some similar
characteristics, often making the distinction between the two sectors a grey area, they do in fact encounter different opportunities and challenges. This study indicates how the key characteristics which were analytically derived and assigned to either public or private organisations, affects their external communication and media relations activities. Communication practitioners in the public sector are suggested to consider the following factors when communicating externally: exposure to political influence, pressure to disclose information to the general public, legal and formal frameworks which restricts their
information dissemination options, non-communication role responsibilities, and limited financial and managerial support. Whereas private communication practitioners are advised to account the following factors: comply with financial or competition regulations, support the business objectives of the organisation, and disseminate positive information in order to support the organisation’s image and reputation. Furthermore, all communication activities in both sectors should be integrated and practitioners should focus equally on external and internal communication, as suggested by previous studies (Liu et al., 2010; Grunig, 1992).
This study also suggests implications for top management in both sectors, leading to the recommendation to reformulate their communication departments. Top management and the dominant coalition are encouraged to support communication practitioners to carry out
communication as a strategic management function, rather than to mainly disseminate information to the general public and the media. Strategic management is a critical
characteristic of excellent communication and the two-way symmetrical model (Grunig, 1992; Grunig, 2006), and can thus be a great advantage in order for organisations to accomplish organisational goals and maximise the efficiency of external communication (Grunig et al., 2005). Furthermore, if organisations would leverage communication as a strategic
management function, it could move communications toward greater professionalism. Management is also recommended to help and support practitioners to carry out the two-way symmetrical communication model to develop and cultivate relationships with the strategic public (Grunig, 1992).
In spite of the practical contributions of this study, a few methodological limitations should be noted. One major drawback of qualitative research are the limits in generalising the
findings. As Charmaz (2006) suggested, this study merely offers interpretive portrayal of the external communication activities in the public and private sectors. That is to say, these results are based on the researcher’s interpretation and should not be generalised beyond this. Furthermore, the interviews were conducted in Icelandic and some words or representative quotations to clarify the studied concepts could have been distorted due to translation into Englishs. Thirdly, the interviews provided insights into the communication practitioners’ perception of how external communication and media relations activities are carried out in the public and private sector. Therefore, as these are merely their own perceptions these findings do not account for the extent to which both sectors actually communication externally. Lastly, this research grouped private communication practitioners on the one hand, and the public practitioners on the other hand. By doing so, the differences which exist among the
practitioners themselves in each sector were ignored.
Due to the necessity for empirically supported research on the differences between public and private external communication (Aertsen & Gelders, 2011; Gelders et al., 2007; Liu et al., 2010; Pandey & Garnett, 2006), the most valuable contribution of this study is providing new and additional insights on how external communication activities differ between the two sectors in terms of their aim, purpose, strategy, and content. Furthermore, this study gives further direction and guidance in exploring key characteristics which influence how public and private organisations communicate externally. As in line with Liu, Horsley and
Levenshaus’ (2010) study, there are several environmental attributes of the public sector which influence the daily communication activities and professional development
which influence public communication, in addition to characteristics that influence private communication.
Future researchers are advised to test whether more differences (or similarities) can be identified in how public and private organisations communicate externally. This is especially important for this under-researched topic, the comparison of external communication in the public and private sector. This could be further explored and empirically tested with
quantitative research, such as surveys, in public and private organisations. Future research is recommended to also consider including the third sector, non-profit organisations, and compare the external communication policy of these three sectors. That is to say, it could be explored if any other key characteristics affect the communication practice of non-profits. Furthermore, future research is suggested to link external communication with specific environmental factors, for example organisational culture, different political frameworks, or the economic system.
Taken as a whole, the findings of this study indicate that more research and new models are needed to complement the existing theoretical framework of the government
communication decision wheel (Liu and Horsley, 2007), the excellent communication management (Grunig, 1992), and the reflective communication management (Van Ruler & Verčič, 2005; Verhoeven et al., 2011), to provide a more solid foundation for a theoretically driven public and private communication research.
