Semester 5 1

Mass Media Management (AUJC 542)

Module 3: Problems of news organisations in India – management of three M’s – men,

money and materials – sales promotion

PROBLEMS OF NEWSPAPER MANAGEMENT

Newspapers are run like any business. But unlike other businesses, the main content,
which is news, doesn't make money. Rather, it is the advertisements that rake in the
revenues for any news organization.

Cost of news gathering: This is the single biggest overhead that a newspaper accrues.
This is in the form of salaries paid to reporters on the field, their travel expenses, etc. If a
newspaper wants to attract advertisers from a particular geography, the management
has to invest in news gathering in that geography. Because only then people in that
geography will buy the newspaper, resulting in increased circulation and with it
increases advertiser interest.

Cost of newsprint: Newsprint is the paper on which news is printed. This also forms a
big cost, because the price of a newspaper is a fraction of what actually newsprint costs.
You will also have to factor in the costs of ink. To add one extra paper, the management
has to factor in the costs vis-à-vis the advertising revenue.

Effect of TV and Internet: With television dishing out news 24X7, and mobile phones
giving instant access to news, newspapers are under tremendous pressure. To stay
relevant to its readers, a newspaper has to present news that is more informative and
enriching than TV and Internet.

Editor vs. Management: The editor wants more space to be allocated for news, while
the management wants more space for advertisements. This often results in a rift
between the management and editorial functions of a newspaper.

Newsmaker vs Advertiser: If a newspaper publishes bad news about a

company/business, there is a danger that the company might not release its ads to the
newspaper. This sometimes results in serious revenue losses. Some newspaper
managements dictate editors not to write bad news about their top advertisers. This
often creates a divide between the editorial and management functions of the
newspaper.

Advertising revenue earns the bread and butter for a newspaper and its employees -
reporters, editors, designers, printing experts, marketing and distribution personnel,
etc. Getting the right balance between news and advertisements is a decision that
management has to constantly grapple with.

The two biggest challenges to newspaper publishers today both result from the
ascendancy of the Internet — loss of Classified Advertising and loss of subscribers.
Classified Advertising was the most profitable part of the newspaper. Loss of circulation
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drives down the price of display advertising. More and more people now get their news
from the Internet (too many from social media) and from Cable TV. A smaller and
smaller percentage of households are newspaper subscribers. This has forced
newspapers to lower the price of display advertising.

These twin challenges have seriously impacted newspaper revenue. And thus far,
newspapers have not found an effective way to earn revenue on the Internet. This loss
of revenue has made it impossible for newspapers to maintain the strength of their
news organizations. And this is a great loss to their community and to our society.

HUMAN RESOURCES MANAGEMENT

Human resources management (HRM) is a management function concerned with

hiring, motivating and maintaining people in an organization. Generally HRM refers to
the management of people in organizations. It is the process of recruiting, selecting,
inducting employees, providing orientation, imparting training and development,
appraising the performance of employees, deciding compensation and providing
benefits, motivating employees, maintaining proper relations with employees and their
trade unions, ensuring employees safety, welfare and healthy measures in compliance
with labour laws of the land and finally following the Orders / Judgements of the
concern High Court and Supreme Court, if any.

All major activities in the working life of a worker – from the time of his or her entry
into an organization until he or she leaves it comes under the purview of HRM.

MAIN FUNCTIONS OF HR DEPARTMENT

The human resources department handles a range of different functions within an

organization. The department is responsible for hiring and firing employees, training
workers, maintaining interoffice relationships and interpreting employment laws. The
department works diligently behind the scenes to ensure an organization runs
efficiently. The HR department's duties will vary between companies, but can generally
be summed up in six main functions.

Hiring and Recruiting

One of the primary functions of the human resources department is to oversee hiring
and recruiting within an organization. The department actively recruits, screens,
interviews and hires qualified candidates for open positions. The department
administers skills assessment and personality tests to match candidates with the right
job within the company. The human resources department also develops employee
handbooks that explain company policies and procedures to new hires.

Training and Development

The human resources department handles the training and development of staff within
an organization. It creates training programs and conducts training for new hires and
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Mass Media Management (AUJC 542)

existing employees. The human resources department also works in conjunction with
department managers and supervisors to determine the training needs of employees.
They are also responsible for contracts with training providers and monitoring training
budgets.

Handling Compensation

The human resources department is responsible for various aspects of employee

compensation. The department typically handles employee payroll and ensures
employees are paid accurately and on time, with the correct deductions made. Human
resources departments also manage compensation programs that include pensions and
other fringe benefits offered by the employer.

Employee Benefits

The human resources department manages all aspects of employee benefits, including
health and dental insurance, long-term care or disability programs as well as employee
assistance and wellness programs. The department keeps track of employee absences
and job-protected leave, such as family medical leave. Human resources department
representatives ensure employees receive the proper disclosures regarding benefit
eligibility or if benefits are no longer available because of a layoff or termination.

Employee Relations

The human resources department handles employee relations matters within an

organization. They facilitate communication within the organization. Employee
relations involves employee participation in different aspects of organizational
activities. The department maintains the relationship between employees and
management by promoting communication and fairness within the company. The
department also handles disputes between employees and management, as well as
disputes between the company and labor unions or employee rights organizations.

Legal Responsibilities

The human resources department is responsible for interpreting and enforcing

employment and labor laws such as equal employment opportunity, fair labor
standards, benefits and wages, and work hour requirements. The department also
investigates harassment and discrimination complaints and ensures company officials
remain compliant with United States Department of Labor regulations.

Role of HR Department in Media Organization

Since 1980, virtually every aspect of the media business has been altered by new
technology and audience fragmentation. Despite increasing technological evolution,
media organizations depend on human creativity more than ever. Human beings dream
and create. They provide the critical element of innovation necessary to survive in the
dynamic, contemporary operating environment. The complex bundles of hopes, fears,
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Mass Media Management (AUJC 542)

dreams, and frustrations known as human beings make up media organizations. Those
human beings have most of the control over the quality of their work. Thus, the effective
media manager must orchestrate traditional structural–functional aspects of the
organization while dealing with the psychology of organizational members to help them
be as creative and productive as possible.

Types of Communication in an Organization

Communication involves a systematic and continuing process of telling, listening and

understanding. It forms the basis of understanding between members within an
organisation as well as those outside.

In an organisation, effective internal communication is fundamental to its existence.

Internal communication, also called inter-communication, is a major function of
management of an organization.

Organizational communication takes various forms and dimensions: downward,

upward, horizontally, and diagonally. The size, nature, and structure of the organization
dictate which direction most of the information flows. In more established and
traditional organizations, much of the communication flows in a vertical—downward
and upward—direction. In informal firms, such as tech start-ups, information tends to
flow horizontally and diagonally. This, of course, is a function of the almost flat
organizational hierarchy and the need for collaboration. Unofficial communications,
such as those carried in the company grapevine, appear in both types of organizations.

Downward Communication Flows

Downward communication is when company leaders and managers share information

with lower-level employees. Unless requested as part of the message, the senders don’t
usually expect (or particularly want) to get a response. An example may be an
announcement of a new CEO or notice of a merger with a former competitor. Other
forms of high-level downward communications include speeches, blogs, podcasts, and
videos. The most common types of downward communication are everyday directives
of department managers or line managers to employees. These can even be in the form
of instruction manuals or company handbooks.

Downward communication delivers information that helps to update the workforce

about key organizational changes, new goals, or strategies; provide performance
feedback at the organizational level; coordinate initiatives; present an official policy
(public relations); or improve worker morale or consumer relations.

Upward Communication Flows

Information moving from lower-level employees to high-level employees is upward

communication (also sometimes called vertical communication). For example, upward
communication occurs when workers report to a supervisor or when team leaders
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Mass Media Management (AUJC 542)

report to a department manager. Items typically communicated upward include

progress reports, proposals for projects, budget estimates, grievances and complaints,
suggestions for improvements, and schedule concerns. Sometimes a downward
communication prompts an upward response, such as when a manager asks for a
recommendation for a replacement part or an estimate of when a project will be
completed.

An important goal of many managers today is to encourage spontaneous or voluntary

upward communication from employees without the need to ask first. Some companies
go so far as to organize contests and provide prizes for the most innovative and creative
solutions and suggestions. Before employees feel comfortable making these kinds of
suggestions, however, they must trust that management will recognize their
contributions and not unintentionally undermine or ignore their efforts. Some
organizations have even installed “whistleblower” hotlines that will let employees
report dangerous, unethical, or illegal activities anonymously to avoid possible
retaliation by higher-ups in the company.

Horizontal and Diagonal Communication Flows

Horizontal communication involves the exchange of information across departments at

the same level in an organization (i.e., peer-to-peer communication). The purpose of
most horizontal communication is to request support or coordinate activities. People at
the same level in the organization can work together to work on problems or issues in
an informal and as-needed basis. The manager of the production department can work
with the purchasing manager to accelerate or delay the shipment of materials. The
finance manager and inventory managers can be looped in so that the organization can
achieve the maximum benefit from the coordination. Communications between two
employees who report to the same manager is also an example of horizontal
communication. Some problems with horizontal communication can arise if one
manager is unwilling or unmotivated to share information, or sees efforts to work
communally as threatening his position (territorial behavior). In a case like that, the
manager at the next level up will need to communicate downward to reinforce the
company’s values of cooperation.

Diagonal communication is cross-functional communication between employees at

different levels of the organization. For example, if the vice president of sales sends an
e-mail to the vice president of manufacturing asking when a product will be available
for shipping, this is an example of horizontal communication. But if a sales
representative e-mails the vice president of marketing, then diagonal communication
has occurred. Whenever communication goes from one department to another
department, the sender’s manager should be made part of the loop. A manager may be
put in an embarrassing position and appear incompetent if he isn’t aware of everything
happening in his department. Trust may be lost and careers damaged by not paying
attention to key communication protocols.
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Mass Media Management (AUJC 542)

SALES PROMOTION

Sales promotion is the process of persuading a potential customer to buy the product.
Sales promotion is designed to be used as a short-term tactic to boost sales.

A newspaper's circulation and marketing departments are constantly working together

to come up with promotional ideas to increase subscription sales. In the newspaper
industry, a large subscription base means increased revenue. The revenue is generated
from subscribers and from advertising sales, which are directly related. Newspapers can
justify the price of an advertisement based on the circulation figures.

There are many methods of sales promotion that is adopted by the prominent Indian
newspapers. Some of them are discussed below.

“Buy 1 Get 1” Promotion: When a new customer purchases a subscription, you can give
them another subscription for free. You can give them the option to donate the free
subscription to a classroom, family member or friend. The customer can also cash in the
free subscription when their existing subscription expires.

Raffle: With each new subscription or renewed subscription purchase, you can enter the
subscriber’s name in a raffle to win free prizes. The prizes can include:

 new cars
 new boats
 vacation packages
 jewelry
 concert tickets
 other items

You should set up rules that will bar people from entering their names in the raffle more
than once, so that no one subscriber has an advantage over another one.
Free Gifts: Let customers pick from a list of free gifts when they purchase a new
subscription, or renew an existing one, to the newspaper. The gifts can include gift cards
and certificates to restaurants, retail stores, gas stations and other businesses. You can
also offer customers free admission to amusement parks, museums and other local and
national attractions with each new or renewed subscription purchase.

Inserts: A common way to increase newspaper circulation and generate interest is to

include inserts in your newspaper with useful coupons and incentives your
demographic (readers) is interested in. For example, if there is a new yoga studio that is
opened up in an up-and-coming neighbourhood, we can work with that studio to get an
ad in with a coupon for a free session.

Charitable Donations: Tap into people’s charitable instincts by offering to donate to a

charitable organization or charitable cause when they purchase a subscription, or
renew an existing one. Although this type of newspaper promotion can be run
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Mass Media Management (AUJC 542)

throughout the year, it would probably prove to be the most successful during the
holiday season because this is the time of year when donations to charities increase.
You can offer to donate a set amount of money to the charity of the subscriber’s choice,
or choose one yourself. You can also donate a percentage of the total revenue that are
raised from subscription sales to a particular charity, or match the total that was raised.

Branding and Newspaper Marketing Campaigns: Newspaper businesses can establish

kiosks (newspaperstands) in well-travelled areas like bus and train stations as a
marketing strategy. Kiosks can sell current copies of the newspaper, but also provide
customer services, such as subscription renewals, address changes and classified ad
sales. Another effective marketing strategy is merchandise marketing, which can
include selling branded goods including canvas bags, hats or coffee cups emblazoned
with the newspaper logo.

Social Media Newspaper Promotion Ideas: Newspapers can use social networking to
market the energy of the newsroom by creating accounts for individual reporters,
photographers and editors to post story developments before the story appears in the
newspaper. Social media marketing is one of the most powerful tools in the current
scenario. Allowing readers to post comments and questions for your newsroom
employees to respond to, boosts interactivity and creates relationships between the
public and your newspaper. Building a relationship between the newspaper and its
readers is an effective newspaper marketing strategy because it encourages readers to
keep buying papers and responding to social media posts.

Contests and Freebies: Pairing contests with free copies of the newspaper is another
useful marketing idea. Solicit current advertisers to sponsor contests for readers,
providing ample recognition of their efforts in materials related to the contest, including
contest guidelines printed in the newspaper and their logos featured on the contest
webpage of your company site.

Boost readership by soliciting essay submissions--for example, true courtship stories

around Valentine’s Day or scary story submissions near Halloween--and then
publishing the stories on random days to encourage people to buy newspapers. Winners
can receive free subscriptions for a certain period of time.

Community involvement: One method that’s definitely tried and true for selling papers
is engaging with people and becoming active in your community. Kiosks and job fairs
involves the community and increases brand awareness.