TERM PAPER (AATP600)

Effective Public Relations as an instrument for the achievement of the

Company’s organizational objective.

Submitted by: Umaima Akhtar Begg

Enrollment No: A91134221006
Program: M.A (PUBLIC RELATIONS & EVENT MANAGEMENT)
Semester: II
Batch: 2021-2023
ACKNOWLEDGEMENT

Public Relations as a subject has always been appealing to me a lot. Before joining
this course, I was earlier also enrolled in public relations studies, but now things
have taken a new point of view, and goal oriented. Initially, I was just studying
public relations for exams, and gradually I wanted it to be my career goal it’s one
of the best forms of communication.

Firstly, I would like to thank our faculty leader, Mr. Arijit Das, for giving me this
great opportunity to work on this wonderful theme. Without his Guidance,
completing this research work would never have been even possible.
ABSTRACT

Measuring the contribution of public relations to the effectiveness of an

organization is a requirement for business success as the demand for accountability
in public relations spending increases. Many companies have limited awareness of
the impact of public relations on the effectiveness of the entire organization. This
white paper considers the value of public relations to the effectiveness of the entire
organization, and more specifically its contribution, and assumes that public
relations affect its effectiveness. This paper consists of two parts: the theoretical
framework for the role of public relations in the overall effectiveness of an
organization and the empirical analysis based on the collected primary data.
Analysis of the Slovenian enterprise sample data is used to answer research
questions about the relationship between the two concepts. This study confirms
that there is a positive relationship between the outreach of the dependent variable
and the effectiveness of the company for the independent variable.

Keywords: public relations, public relations evaluation, corporate effectiveness

INTRODUCTION

This article discusses one of the challenges in PR practice: its value, and more
specifically, the contribution of public relations to the effectiveness of the entire
organization. Companies are investing heavily in public relations. Public relations
spending in the United States increased to reach the US $ 3.7 billion in 2005 (cited
in Economist, 2005; Kim, 2007). Little attention has been paid to research on the
effectiveness of PR, especially when compared to research on advertising
effectiveness. There is a lot of theoretical and empirical research on how
advertising worked and how it worked for consumers and businesses (Barry and
Howard, 1990; Barry, 2002; Colley, 1961, De. Pelsmackeretal. 2004; Lavidge and
Steiner, 1961; Belch and Belch, 2003, Bendixen, 1993; Beerli and Santana, 1999;
Benkahla, 2006). Often public relations professionals want to prove how much
value public relations have to an organization, for example how mechanical
relations increase profits, contribute to market share, and support customer
satisfaction. Kim (2007) presented the effects of advertising and public relations on
sales revenue, but the reporting of public relations participation to organizational
actual achievement is unclear. This paper attempts to examine the effect of public
relations on company`s effectiveness. With respect to this, the research question is:
“Can public relations impact and improve a company`s effectiveness?” Research
into measures of public relations and a company`s effectiveness and their
relationship reflects this important issue. In this paper, we question the possibility
of linking public relations activities to overall organizational effectiveness.

Many authors similarly define public relations. Public relations can be defined as a
management function that conducts research about an organization and its public to
establish mutually beneficial telemechanical through communication (Lindenmann
et. al., 1997). Hunt and Grunig (1995: 6) define “public relations as the
management of communication between an organization and its public. Public
relations include the overall planning, implementation, and evaluation of
communication with the public outside and inside the organization. The focus of
PR theory has recently shifted from communication to relationship management
(cited in Grunig, 2001; Ledingham, 2003; Hayes, 2008), connecting
communication ethics, collaboration, consensus, culture, and community. Common
to all the above concepts is the concept of relationships that is central to the public
relations function.

Public relations has evolved from the role of a communication engineer focused on
creating and disseminating information to the role of a communication manager
focused on building and maintaining relationships with key stakeholders
(Macnamara). , 1997). More and more companies will give top PR managers the
responsibility and authority to manage communications (Leckenbay, 2003).
Participation in strategic management represents an integrated link to public
relations to increase the effectiveness of the organization. Therefore, organizational
effectiveness is a good outcome measure for determining the impact of public
relations.

PR Any company can develop a PR program, regardless of budget or number of

employees. The key to a successful program is to include measurements and
analysis from the beginning. The overall measurement of the PR program should
provide a complete picture of the PR and the organization's goals and objectives.
The effectiveness of the company as a philosophy and as a result of
communication activities has been studied by countless authors (McArthur and
Griffin, 1997; Schultz and Kitchen, 1997; Low, 2000; Pickton and Broderick,
2001; Završnik and Jerman, 2006). The effectiveness of a company and the
associated performance are a solid and lasting need for the business companies
good at using public relations to influence. A more important issue concerns the
ability of public relations to effectively connect with key stakeholders who may
affect the performance of the organization. Public relations make the organization
more effective.
When developing a communication program identify strategic stakeholders in the
environment and build long-term relationships of trust with them. Participation in
strategic management represents an integrated link to public relations to increase
the effectiveness of the organization. However, in order to make a unique
contribution, public relations must be separated from other management functions.
However, the communication program must be integrated or coordinated by the PR
department and be matrixed with the other departments that provide the service.
There is ample evidence that the centuries-old dominance of mass media
advertising and advertising agencies in marketing communications is nearing its
end. Marketing budgets are shifting from traditional advertising to areas of action
such as consumer advertising, direct marketing, and direct response advertising
(Nowak and Phelps, 1994). Thought Leadership Campaigns and Industry
Conferences – Effectively handle hard news and details. But what's new is the new
power of public relations to drive marketing communications machines, especially
when the core message is value. Smart Marketers will investigate how their
competitors are announcing their results, the messages they convey, the statistics
they quote, and the impact their position is having, and incorporate this
information into their public relations strategies (Shadle). , 1998).
As with many aspects of our society, the pace of change in public relations has
increased in recent decades. Some of the changes over the last decade are
continuations of previously initiated trends. Since the 1980s, many companies have
significantly reduced their work and started using more and more PR staff and
external agencies. PR consulting has expanded significantly, and the largest
agencies have grown even larger (Stevens, 2001: 19).

Grunig and Hunt have suggested a convenient way to see it PR story. They
proposed four models of Communicatirelationshipship with the public: news
agency / public relations model, public relations model, bidirectional asymmetric
model, and bidirectional symmetric public relations. The news agency/advertising
model is a type of activity in which people are involved in public relations. The
goal of this type of model is to ensure customer coverage. Public information
models provide information to people, do not try to persuade the audience, and
usually rely on one-way communication. Asymmetric two-way public relations
introduce the idea of two-way communication, but it is asymmetric because the
intended change is in the attitude of the audience rather than the practice of the
organization. Symmetrical two-way public relations is a more equal
communication in which each party is willing to change their behavior (Theaker,
 2001). Discussion and clarification of many practical and philosophical questions
that arise in defining the role of public relations and the relationship between an
organization and its general public. At the same time, publicists in academia have
positioned public relations as a strategic management area and are active with the
dominant coalition of many organizations to actively contribute to the achievement
of corporate goals while being sensitive. Is involved in the target. Interest in
aspirations is relevant to the general public (Ferjan, 2002; Moncur, 2006). The use
of modern public relations in Slovenia can be traced back to the 1960s, the
"liberal" era of communist Yugoslavia. The first PR agency was founded in 1989,
and in 1990 10 practitioners founded the Slovenian Public Relations Association
(PRSS). In 1993, PRSS went into full swing.

PUBLIC RELATIONS CONTRIBUTION TO THE

COMPANY’S EFFECTIVENESS

The need to measure and evaluate the effectiveness of public relations has
increased over the last two decades. A 1992 survey by the Public Relations Society
of America's Counsellor Academy found that most people identified "measured
accountability demand" as one of the industry's greatest challenges (IPRA, 1994).).
In 1997, there was the first scientific attempt to find a unified standard for
measuring and assessing the effectiveness of public relations. Since the first
attempt, attention has been focused on measuring the effectiveness of PR (for
example, guidelines for setting measurable PR goals and guidelines for measuring
public relations). Many publicists and scholars agree that public relations are a
management role, and many researchers recognize the need to evaluate and
measure the effectiveness of public relations (Lindenmannet). Al. 1997).

The general practice of public relations has repeatedly called for the development
of evaluation and measurement methods in recent years. Hon (cited in Henderson,
2005) has written several journal articles on the development and expansion of the
use of evaluation studies. A common topic is a link between evaluation and PR
goals derived from organizational goals. Effective organizations choose and
achieve the right goals to build relationships with the public.

Understanding Grunig's four public relations models, which explain the evolving
types of PR practices, from the press to public relations, bidirectional asymmetric
and bidirectional symmetric communication, is also important for evaluation
studies. Because each model is related to something different. Goals, and therefore
different evaluation strategies in each case, are needed (Macnamara, 1997). We
should evaluate the individual public relations program for demonstrating its
effectiveness (Dozier, 1990; Fairchild, 2002) or its impact on organizational
effectiveness (Radford and Goldstein, 2002). There are some studies that suggest
an emphasis on measuring public relations programs in terms of public relations
program output (Gregory, 2001; Walker, 1994).

The goal of public relations is to help an organization to achieve its business

objectives goal. Getting a clear understanding of an organization`s business goals is
the first step of public relations activities to set measurable objectives for a
communication program. If public relations managers don`t understand business
goals, they can`t achieve the company`s effectiveness. The difficulty of linking
public relations to the effectiveness of an organization can be seen in the position of
an organization's public relations manager, as public relations managers are not
involved in setting goals for the organization (Anderson and Handley, 1999).
Another obstacle to measuring public relations and, as a result, relating it to
organizational effectiveness is its usefulness. This is almost always intangible, but
for this reason, it should be considered a myth of measurement (Delahaye, 2003).
Other reasons include a low level of expertise in conducting advanced public
relations research (Sriramesh, 2004) and a lack of public relations budget. Cutlip,
Center, and Broom models are most widely accepted by practitioners to show
different levels of public relations evaluation (IPRA, 1994). The three levels are
preparation, evaluation, implementation evaluation, and impact assessment
(Henderson, 2005). Others have developed similar models. Macnamara (1997)
developed a macro model for PR evaluation. This model was first outlined in a
1992 article published in the IPRA Review. An important function of this model is
to divide the PR activity into three phases: input, output, and result. Each PR
program is built from a series of inputs, producing outputs, and finally producing
results.

In other words, when setting PR goals and objectives, it is important to decide

whether to measure PR effectiveness as an entity as a whole or as the effectiveness
of a single PR program. The output measures how well an organization presents
itself to others and the amount of attention or exposure it receives (Lindenmann,
1993). A broader measure of outcome is related to whether the audience actually
received the message addressed to them, recognized the message, understood it,
maintained its relevance, and even acted on it. Masu (Phillips, 2001). PR
assessment studies have a tradition of looking to correlate PR activities or
information campaigns with specific behavioral and/or attitude effects (cited in
Dozier and Ehling, 1992; Springston and Lariscy 2005). Henderson (2005) states
that this is probably the most difficult and demanding level of PR assessment.
Usually, it involves for different types of outcome measures: awareness and
comprehension measurements, recall and retention measurements, attitude and
preference measurements, and behavior measurements.
 And finally, it is important to link public relations results to the ultimate goals,
objectives, and results of the organization as a whole. In other words, it is
important to relate public relations outcomes to such desired business and
organizational outcomes as increasing market penetration, market share, sales and
increasing an organization`s profitability (Lindenmann, 1993: 78). Also, Grunig et
al. (2002) proposed that “Public relations contribute to organizational effectiveness
when it helps reconcile the organization`s goals with the expectations of its
strategic constituencies. This contribution has monetary value to the organization.
Public relations contributes to effectiveness by building quality, long-term
relationships with strategic stakeholders. Other PR performance indicators can be
derived from how public relations are managed. Experienced PR experts
participate in the organization's strategic decision-making process and advise other
managers involved in that process on the public impact of potential decisions
(Grunig and Grunig, 2002). The key to a successful program is to incorporate
measurement and analysis from the beginning. The overall measurement of the PR
program should provide a complete picture of the PR and the organization's goals
and objectives. The effectiveness of the company as a philosophy and as a result of
communication activities has been studied by countless authors (McArthur and
Griffin, 1997; Schultz and Kitchen, 1997; Low, 2000; Pickton and Broderick,
2001; Jerman et. al., 2008). The effectiveness of a company and the associated
performance are a solid and lasting need for the business. Are companies very
good at conducting public relations activities that lead to the effectiveness of the
organization? An even more important issue concerns the ability of public relations
to effectively engage with key stakeholders who may affect the performance of the
organization.

Many different systems have been invented for competitive reasons, each claiming
to be a better form of promotion.
Relationship measurement. Evaluation of the PR program plays an important role
in demonstrating its effectiveness (Dozier, 1990; Fairchild, 2002) and its impact on
the organization (Radford and Goldstein, 2002). There is more than one way to
measure effectiveness, so practitioners choose from a variety of methods and
models to demonstrate efficacy. Evaluation models can be categorized into models
that focus on specific outreach processes, such as:
B. Considering media assessments, or integrated planning approaches or impact
models (Xavier et al. 2005). A broader measurement of results is whether the target
group actually received a message addressed to them, recognized the message,
understood it, retained its meaning, and even acted on it. Is related to. There is a
debate as to whether the communication materials and public relations expertise
result in opinion, attitude and/or behaviour changes among target publics (Phillips,
2001). A lot of research about the measure of reputation has been done by the
academics. They have explored the relationship between reputation and
commercial performance. The Reputation Institute1 has tackled the measurement
of reputation and provides some interesting benchmarks. Based on a number of
published lists of the most admired companies, six sets of criteria or themes have
been identified that appear to dominate the construction of the reputation rating
published by social monitors (Phillips,2001; 228229): (1) financial performance,
(2) product quality, (3) employee treatment, (4) community involvement, (5)
environmental performance and (6)organizational issues. The integrated marketing
analysis also includes the return on investment in public relations. Statistical
models allow public relations to understand how media coverage interacts with
advertising, promotion, and other forms of marketing communications to impact
awareness, brand loyalty, and sales (Weiner). , 2000). Other PR performance
measurements can be derived from how public relations are managed. Experienced
public relations professionals participate in the organization's strategic
decision-making process and advise other managers involved in that process on
the impact of decisions that are possible for the general public. In fact, they bring
the voice of the public to strategic decision-making by investigating and listening
to the public before a decision is made.
Excellent public relations departments then strategically plan, administer and
evaluate public relations programs to communicate with this public, both before
and after management decisions are made, so that the organization can build and
maintain good, long-term relationships with them (Grunig and Grunig, 2002).
Grunig, 2002).
A good public relations department does not underestimate the traditional technical
skills of public relations, such as creating and preparing materials for media and
publications, producing speeches, working with the media, and developing
audiovisual materials and websites. The public relations department must have
both administrative and technical roles within the organization. The PR unit plays
an important role in the strategic management of the organization. They identify
important masses that can influence or influence management decisions and pose
problems or crises to the organization (Grunig and Grunig, 2002). In order for
Meet and Greet to move forward as a strategic business area, it is essential that it is
linked to both broader organizational strategy and broader business administration
areas. Observations show that this type of public relations is rarely considered a
strategic management discipline by a dominant coalition and is ignored in the
business literature. The systems theory approach is applied to develop frameworks
in which PR strategies are closely related to different levels of business strategies
(Moncur, 2006: 97).
RESEARCH QUESTIONS AND METHODOLOGY

Purpose of the research

The main direction of this article is about PR factors that affect the
effectiveness of a company and be factors related to the management
and implementation of public relations.

Hypothesis

The main paper in this paper is that public relations can play a greater role in
emphasizing the performance and effectiveness of an organization. Empirical
evidence is presented to support this enhanced role within the level of effectiveness
of the organization. Therefore, we make the following hypothesis. There is a
relationship between public relations and the effectiveness of the organization.

Variables
Based on conceptual work in the context of public relations and corporate
effectiveness, the following metrics of composition have been developed for the
purposes of our research.

Public relations description

The public relations scale captures the following statements: the primary function
of public relations is to increase the company`s reputation, the public relations
office takes part in strategic decisions in our company, the public relations office
holds a consultation with the managing board or the top management of our
company, we are planning all or public relations activities in our company and
public relations manager to build and manage relationships with company`s
strategic publics. The public relations construct consists of interval scale questions.
Answers were given on a Likert scale format (7= I strongly agree and 1= I strongly
disagree). The reliability of the construct was assessed by Cronbach’s alpha
reliability coefficient. The measure had 9 items and reported an Alpha of 0,8629.

Company's effectiveness description

The configuration of corporate effectiveness can be operated in different ways.

Many authors agree that public relations influence the effectiveness of an
organization (McArthur and Griffin, 1997; Schultz and Kitchen, 1997; Low, 2000;
Pickton and Broderick, 2001). Using multi-item measurements of 11 items, we
examined the effectiveness of companies as well as the effectiveness of finance,
market, and other types of companies (Churchill, 1979). This variable consisted of
three types of business effects: market, finance, and others. The average
effectiveness of each type of company was calculated as the sum of all average
scores for all average scores. The company's effectiveness structure consists of
interval scale questions. Answers were given on the Likert scale (7 = very agree, 1
= very disagree). The concept of business effectiveness shows an alpha of 0.8535.
Therefore, the public relations of the construct and the measure of the corporate
effect of the construct show relatively high reliability.

Data gathering and characteristics of the sample

Key research tools for empirical research, such as questionnaires, have been
developed based on the theory derived. A cover letter with a survey was sent to
1000 Slovenian corporate managers, marketing managers, or directors. Choose a
utility model. The survey was conducted in January 2007. A total of 200 useful
responses were received, with a response rate of 20.0%. The results shown in this
white paper refer to a sample of 200 respondents. The empirical data collected was
processed using the Social Science Statistics Package (SPSS) with an emphasis on
descriptive statistical analysis. Relevant data for companies is provided primarily
by marketing managers (28.3% of cases), followed by 26.3% of company
managers, top management members (18.7%), management consultants (9.6%),
and managing directors (6.1%). %) Followed. Board members, heads of the press,
and consultants responded at 2.5%. Other respondents had a 3.5% chance of
occurring. The size of the company was determined based on the number of
employees. The sample consists of 45.2% SMEs, 23.8% SMEs, and 31.0% SMEs.
The companies included in the sample are distributed by the industry as follows.
41.0% of respondents belong to production-oriented companies, 30% of
respondents belong to service-oriented companies, and 24.5% belong to trade-
oriented companies. The sample consists of 1.5% agencies, 0.5% government
agencies, and 2.5% enterprises.

Research instrument

Both components, such as the PR factor and corporate effectiveness, were

measured on the Likert scale. Respondents had to show that they agreed with the
statement on a 7-point Likert scale (one completely disagrees, so seven fully
agree). Likert-type scales do not claim to be more than ordinal scales, but they are
still accepted as a means of achieving the quality of interval measurements, and
there are some arguments claiming different positions on the subject (Avlonitis).
and Papastathopoulou, 2000).

RESULTS

Practicing PR in Slovenian Enterprises

One of the purposes of our research was to find out if the enterprise developed its
own PR function. According to the data, 42.3% of companies use external PR
agencies and the remaining 57.7% have their own PR offices.

When asked how many employees in your company handle public relations, we
received the following answer: In most companies (46.4%), public relations
activities are carried out by one employee, followed by 25% of companies with
two employees engaged in public relations, and in 14.8% cases three employees. Is
engaged in public relations and public relations. A percentage of companies, four
employees, conducted public relations activities. The data presented in the survey
confirms that PR activities are taking place in the enterprise, but the PR function is
organized as a separate department or in the marketing or sales department.

When asked which department within the company is responsible for external
communications, respondents responded: Public Relations (3%), Marketing or
Sales (42%), CEO or Director Individual There is no department (25%) and
nobody (30%) because it exists in the market.
 Respondents also showed that 61.2% of their total communications budget was
spent on marketing communications and the remaining 38.8% was spent on public
relations.

The impact of public relations on a company’s effectiveness

Means and standard deviations were calculated for each public relations statement.
The results in Table 1 show that the average score obtained in the public relations
statement is 4.5 or higher, and it can be concluded that the respondents agree with
the public relations statement. The standard deviation results show that many
values in the interval between 1.30 and 2.12 are approximately average.

Table 1: Mean scores regarding statements of public relations

Mean
Statements about public relations SD
scores

The primary function of public relations is to increase

the company’s reputation. 5,93 1,44
Top management of our company has the complete trust
in the strategy of public relations of our company. 5,73 1,30
The public relations strategy arises from the corporate
business strategy. 5,57 1,30
The public relations office holds a consultation with the
managing board or the top management of our company. 5,43 1,98
Public relations manage build and manage relationships
with company’s strategic publics. 4,90 1,92
The public relations implementation is centralized in our
company. 4,88 1,91

The control of public relations activities is centralized in

our company. 4,79 1,85
We are planning all public relations activities in our
 company. 4,76 1,92
The public relations office takes part in strategic
decisions in our company. 4,51 2,12

The results in Table 2 show that the average effectiveness of different types of
companies ranges from 4.50 to 5.04. Also, the standard deviation results show that
many standard deviation values are reached at intervals between 1.22 and 1.50
around the mean.

Table 2: Mean scores regarding different types of company effectiveness

Mean

Type of company effectiveness SD

scores

Other types of company effectiveness 5,04 1,22

Market effectiveness 4,91 1,40

Financial effectiveness 4,47 1,50

One of the purposes of this paper is to correlate various public relations statements
with the effectiveness of the company. Therefore, make the following hypothesis.
Null Hypothesis H0: There is no link between public relations and corporate
effectiveness.
Alternative Hypothesis H1: There is a link between public relations and corporate
effectiveness.
Table 3: Correlation matrix between public relations and company's
effectiveness

Public relations statement Company’s effectiveness

Correlation

r P

Top management of our company has the complete

trust in the strategy of public relations of our
company. 0,378(**) 0,000
The public relations strategy arises from the
corporate
business strategy. 0,384(**) 0,000
The control of public relations activities is
centralized
in our company. 0,326(**) 0,000
The public relations implementation is centralized
in
our company. 0,225(**) 0,000
The primary function of public relations is to
increase
the company’s reputation. 0,263(**) 0,000
The public relations office takes part in strategic
decisions in our company. 0,222(**) 0,002
The public relations office holds a consultation
with
the managing board or the top management of our
company. 0,245(**) 0,001
We are planning all public relations activities in our
company. 0,361(**) 0,000
Public relations manage build and manage
relationships with company’s strategic publics. 0,279(**) 0,000
 Note: ** Correlation is significant at the 0.01 level (2-tailed).

r = Pearson Correlation Coefficient

p = Statistical Significance

Since the test statistic shown in Table 3 exceeds the critical value, we reject the
null hypothesis and conclude that there is a significant correlation between all PR
claims tested and the effectiveness of the organization. increase. Since the pairwise
correlation was found to be significant, the relationships between the variables can
be examined by constructing a regression model in the form of near equations.
Independent variables (formal statements) were created based on survey items to
identify clear potential impacts on the effectiveness of the organization. It is
important to note that all variables were measured on a 7-point Likert scale. Mean
and standard deviation was calculated for each independent variable.
We would like to test it is the regression model with one predictor variable (e.g.
public relations) significantly related to the criterion variable Y (e.g. company's
effectiveness)? We test the equivalent null hypothesis that there is no relationship
in the sample between a dependent variable and an independent variable, but we
found a significant level of the impact of public relations on a company`s
effectiveness. Accordingly, to this, the null hypotheses, which we tried to reject by
means of regression analysis, could be formulated as follows:
Null hypothesis H0: There is no relationship between the dependent and
independent variables, e.g. The correlation coefficient between the dependent and
independent variables equals 0 (H0: Rxy = 0).
Alternative hypothesis H2: There is a positive relationship between the dependent
and independent variables, e.g. The correlation coefficient between the dependent
and independent variables is significantly higher than 0 (H2: Rxy > 0).
For the tested relationship, we selected the regression model with the highest
significance, i.e. the model with the significance closest to the significance level of
5%. To investigate the hypothesis, entering all variables in a single block, we
found that the proposed model explains a significant percentage of variance in the
company's effectiveness. Table 4 shows that 17,4 percent of the observed
variability in the company`s effectiveness is explained by the one independent
variable i.e. public relations (R2=0,170; adjusted R2=0,174).

Table 4: Relationship between public relations and company’s effectiveness

Independent Dependent 2 Adjusted

variable (x) variable (y) R R2 Model (Sign.) α

Public Company’s 0,174 0,170 Lin: 0,000

Relations effectiveness y = 3,340 + 0,331x

In addition to the impact of public relations on the effectiveness of the company, we

assume that other unexplained impacts not covered by this study may also affect the
effectiveness of the company. Many authors have investigated the impact of
different configurations on the effectiveness of a company. However, from this, we
can conclude that, excluding other impacts, the proportion of public relations
explained variance (17%) in the effectiveness of the company is high. Although the
empirical results do not strongly support the conclusion, we believe that the positive
link between public relations and the effectiveness of his organization is still
acceptable, based on variable data. Such results are consistent with those of other
authors (Spanos, 2001).

Table 5: Results of regression coefficients

Unstandardized Standardized
Coefficients Coefficients
t Sig.

Std.
Model B Beta
Error

(Constant) 3,340 0,273 12,222 0,000

Public relations 0,331 0,051 0,417 6,455 0,000 a

a
Dependent variable: Company's effectiveness

Results from Table 5 indicate that we can reject the null hypotheses that the
coefficients for public relations (Beta = 0,417, t =6,455, p =0,000) are 0. The beta
weight (Beta = 0,417) shows that public relations have a significant influence on a
company's effectiveness.

Managerial implications
We argued that public relations had a significant impact on the
effectiveness of the company in the Slovenian company sample and
documented it empirically. In addition, each company may choose its
own PR strategy, but unique characteristics must be considered when
developing a successful PR program. We have identified these
characteristics as public relations factors that can affect the
effectiveness of a company. Knowing these characteristics when
developing a PR program can provide you with a competitive
advantage over your competitors. This article considers the significant
contribution that PR practices make to the overall effectiveness of an
organization. And finally, public relations can increase the productivity
of the company, deliver high-quality services and products, and thus
lead to the effectiveness of the entire company.

Limitations and future research

It is feared that the measures used in public relations activities do not reflect the
full scope of public relations activities. Due to the lack of validity and reliability of
the concepts tested in the literature, the PR concept has been regarded and
measured as a management function that establishes and maintains a mutually
beneficial relationship between an organization and its public. (Hunt and Grunig,
1995). Qualitative research by PR experts and scholars helps to develop a
theoretical framework for finding the most effective means of the concept of PR.

CONCLUSION

Accounting for public relations costs is an important issue in public relations

activities. As the media situation changes, businesses recognize the importance of
effectively communicating with the relevant public. Public relations are recognized
as an integral part of achieving business goals and improving the company's
performance. This work investigated the impact of public relations on the
effectiveness of a company. Therefore, public relations and company effectiveness
are the main concerns of this work. It provides additional insight into the
effectiveness of public relations and how it contributes to the effectiveness of the
entire organization. The white paper concludes by identifying the positive
relationship between the two concepts.
 In the theoretical part of this work, a model of PR evaluation was discussed. We
conclude that it is not possible to define a single measure in the study design.
Individual organizations have different stakeholders, different goals, different
cultures, and communication professionals need to develop their own products to
measure outreach.
This paper also shows the results of a study investigating public relations factors
that influence the effectiveness of a company in a sample of Slovenian companies.
This study confirms that there is a positive correlation between all public relations
statements and the effectiveness of the company. A regression model was built to
test the hypothesis. 1) A model of the relationship between public relations and
organizational effectiveness. Regarding this relationship, the most important
finding of this study is that public relations have a positive and significant impact
on the effectiveness of the organization, and it can be inferred that public relations
affect the effectiveness of the organization.
The paper provides a perspective on how to analyse the factors that influence the
effectiveness of the entire organization. The guidelines obtained from this
approach should be particularly relevant to PR managers in the industry. The
purpose of this work is to provide additional insights Into some of the theoretical
and administrative issues surrounding the design, implementation, and evaluation
of public relations programs in a changing environment. We tackle this task from
an organizational perspective, primarily in terms of how the effectiveness of a
company is affected by public relations. This paper consists of two parts: the
theoretical framework for the role of public relations in overall effectiveness.
Enterprise and empirical analysis based on collected primary data. This paper
presents the results of a study investigating public relations factors that influence
effectiveness in a sample of Slovenian companies. Next, we will discuss the
development and the current situation of the Slovenian PR profession. Public
relations consulting has expanded considerably and the largest agencies have only
grown even larger. Data shows that 42.3% of companies are using external public
relations agencies and the remaining 57.7% of companies have their own in-house
public relations office. Therefore, we add that an integrated marketing
communications program should be coordinated through the broader public
relations function. This study helps explain the impact of public relations on the
company`s effectiveness. Managers in the responding companies assessed the
public relations issues in their companies and their impact on the company`s
effectiveness. The study confirms that there is an association between all the
statements on public relations and the company`s effectiveness. Statistical tests
supported the hypothesis that there was a positive link between public relations and
organizational effectiveness. You can use a statistical test to see the positive
correlation between it can be inferred that public relations and the effectiveness of
the business, and public relations affect the effectiveness of the business. This
white paper provides perspectives on analytical methods. Factors that affect the
overall performance of the company. The guidelines that can be obtained from this
approach are especially related to industry PR managers.

Literature

 Anderson, F. W. and Handley, L. (1999), Guidelines for setting

measurable public relations objectives, The Institute for Public
Relations, 1-14.

 Avlonitis, G.J. and Papastathopoulou, P. (2000), Marketing

communications and product performance: innovative vs non-
innovative new retail financial products, International Journal of
Bank Marketing, Vol. 18 (1), 27 – 41.

 Barry, T. E. (2002), In Defense of the Hierarchy of

Effects: A Rejoinder to Weilbacher, Journal of
Advertising, Vol. 42 (3), 44-47.

 Barry, T. E. and Howard, D. J. (1990), A review and Critique

of the Hierarchy of Effects in Advertising, International
Journal of Advertising, Vol. 9 (2), 121-135.

 Beerli, A. and Santana Josefa, D. M. (1999), Design and

validation of an instrument for measuring advertising
effectiveness in the printed media, Journal of Current Issues
and Research in Advertising, Vol. 21(2), 11–30.

 Belch, G. E. and Belch, M. A. (2003), Advertising and

promotion: An integrated marketing communication
perspective, McGraw-Hill/Irwin, Boston.

 Bendixen, M. T. (1993), Advertising Effects and Effectiveness,

European Journal of Marketing, Vol. 27, 19– 32

 Benkahla, S. M. (2006), A study of the history and use of

integrated marketing communications within publications form
1991–2005, Master Thesis – abstract, Retrived January 1, 2007,
from West Virginia: Isaac Reed School of Journalism at West
 Virginia University, Web site
http://wwwlib.umi.com/dissertations/preview_all/1436603

 Churchill, G.A. (1979), A Paradigm for Developing Better

Measures of Marketing Constructs, Journal of Marketing
Research, Vol. 16, 64 – 73.

 De Pelsmacker, P., Geuens, M. and Bergh, J. van den

(2004), Marketing communications: European perspective.
Financial Times, Harlow.

 Delahaye, P. K. (2003), Guidelines for Measuring Trust in

Organizations, The Institute for Public Relations, 1-13.

 Dozier, D. M. (1990), The innovation of research in public

relations practice: Review of a program of studies, Public
Relations Research Annual, Vol. 2, 3 – 28.

 Fairchild, M. (2002), Evaluation: An opportunity to raise the

standing of PR, Journal of Communication Management, Vol.
6 (4), 305–307.

 Gregory, A. (2001), Public relations and evaluation: Does

the reality match the rhetoric? Journal of Marketing
Communications, Vol. 7 (3), 171–189.

 Grunig, J. E. and Grunig, L. A. (2002), Implications of the

IABC excellence study for PR education, Journal of
Communication Management, Vol. 7 (1), 34–42.

 Grunig, L. A., Grunig, J. E. and Dozier, D. M. (2002),

Excellent Public Relations and Effective Organizations,
Lawrence Erlbaum Associates, New Jersey.

 Hayes, R. (2008), Reframing public relations via dialogue

and diplomacy to build relational value for business and
society in the globalising world, Paper presented at
International Public Relations Research Symposium, 15th
Bledcom.

 Henderson, J. K. (2005), Evaluating Public Relations

Effectiveness in a Health Care Setting: The identification of
communication Assets and liabilities via a Communication
 audit, Journal of Health & Human Services Administration,
Fall 2005, 282-322.

 Hunt, T. and Grunig, J. E. (1995), Tehnike odnosov z javnostmi, Državna

založba Slovenije, Ljubljana.

 International Public Relations Association (1994), Public

relations evaluation: Professional accountability – Gold paper,
No. 11, IPRA, Geneva.

 Jerman, D., Završnik, B. and Žabkar, V. (2008), Model

uspešnosti tržnega komuniciranja na
medorganizacijskih trgih – dissertation, Ekonomska
fakulteta, Ljubljana.

 Kim, K. (2007), The Effects of Advertising and Publicity on Corporate

Reputation and Sales Revenue: 1985
– 2005 – dissertation, The University of Texas at Austin.

 Lavidge, R. J. and Steiner, A. (1961), A model for predictive

measurement of advertising effectiveness, Journal of
Marketing, Vol. 25 (6), 59–62.

 Leckenbay, John (2003), Public Relations Effectiveness, Advertising &

Brand Communication, Fall 2003.
 Web site http://www.ciadvertising.org/SA/fall_03/adv392/jang/

 Lindenmann, W. K. (1998-1999), Measuring Relationships is

Key to Successful Public Relations, Public Relations
Quarterly, Winter 1998-1999, 18-24.

 Lindenmann, W. K. et. al. (1997), Guidelines and Standards for

Measuring and Evaluating PR Effectiveness, The Institute for
Public Relations.

 Lindenmann, W.K. (1993), An Effectiveness Yardstick to

measure public relations success, Public Relations Quarterly,
Vol. 38 (1), 7-9.

 Low, G.S. (2000), Correlates of Integrated Marketing

Communications, Journal of Advertising Research, Vol. 40, 27
– 39.
 Macnamara, J. R. (1997), Research in Public Relations, CARMA
International Asia Pacific.

 McArthur, D. N. and Griffin, T. (1997), A Marketing

Management View of Integrated Marketing
Communications, Journal of Advertising Research, Vol.
37, 19 – 26.

 Phillips, D. (2001), The public relations evaluationists, Corporate

Communications, Vol. 6 (4), 225 – 237.

 Pickton, D. and Broderick, A. (2001), Integrated marketing

communications, Financial Times, Prentice Hall, Harlow.

 Radford, G. P. and Goldstein, S. Z. (2002), The role of

research methods in corporate communication, Corporate
Communications, Vol. 7(4), 252–2