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Case Study
Case Study
Case Study
RELATIONS
Wendy Olewe
COMMUNITY RELATIONS, AS
A PUBLIC RELATIONS
FUNCTION, IS AN
INSTITUTION’S PLANNED,
ACTIVE, AND CONTINUING
PARTICIPATION WITH AND
WITHIN A COMMUNITY TO
MAINTAIN AND ENHANCE IT
ENVIRONMENT TO THE
BENEFIT OF BOTH THE
INSTITUTION AND THE
COMMUNICATION THROUGH
ACQUISITION:
SOUTHWEST AIRLINES
TAKES ON AIRTRAN AND
BLENDS EMPLOYEE
CULTURE
- Southwest Airline acquires AirTran Airways
- May 2010
INTRODUCTION - $1.4 Billion
- Acquire major hubs in US cities
Airlines must merge the AirTran employees
into the Southwest culture, while also
SITUATION informing current Southwest employees of
the acquisition of AirTran Airways.
Goal 1
Explain integration
Objectives: Gain acceptance
GOALS AND : Effect the awareness
OBJECTIVES Goal 2
Build Relationships
Objectives: Bridge gap
: Build morale
COMMUNITY
RELATIONS
A community relationship is
connection or association between an
organization and its local community
publics that results from behavioral
consequences an organization or a
community public has on the other and
that necessitates repeated
communication
TYPICAL TARGET PUBLICS
Include:
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ORGANIZATION-PUBLIC RELATIONSHIP
(OPR)
Significance of quality relationships in effective PR:
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ORGANIZATION-PUBLIC RELATIONSHIP
(OPR)
Six dimensions of relationships:
• Trust
• Control mutuality
• Commitment
• Satisfaction
• Communal relationship
• Exchange relationship
*The first four items were combined as relationship quality indicators, while the last two were
categorized as two different types of relationships
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QUALITY INDICATORS:
Trust One party’s level of confidence in and
willingness to open oneself to the other
party
Control Mutuality The degree to which each parties agree on who has
rightful power to influence one another
Commitment The extent to which each party believes and feels that the
relationship is worth spending energy to maintain and promote
Satisfaction
The extent to which each party feels favorably toward the other
because positive expectations about the relationship are reinforced
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COMMUNAL RELATIONSHIP
• Based on the notion of altruism, is defined as one in which both parties primary concern is for the
other interest and welfare
• Altruistic motive embodies a belief in the moral imperative of helping others without regard to
future personal benefit
• It is critical because it separates the public relation function from the cost-benefit-oriented
exchange (e.g., marketing), and thus it enhances the understanding of the value of public relations
• Furthermore, it also help organizations to develop less opposition and more support from publics
over the long term, build a favorable reputation,
• and social responsibility, from general management practices where effectiveness and ethics are
prioritized
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EXCHANGE RELATIONSHIP
Egoistic Provident
• One party gives benefits to • One party gives benefits to
another party while expecting another while expecting long-
short term benefits in return term benefits in return
• Self-benefits is prioritized; • The interest of both are me,
however, it does not necessarily with equal importance,
mean taking advantage of the simultaneously
other or failing to fulfill one’s • A “win-win” situation
obligations in an interaction
(e.g., exploitative)
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SUMMARY
Relationship Types Egoistic Provident Communal
Achievement of interest
Achievement of self- The other party’s
Goals in a relationship both parties (“win-
interest welfare (altruistic)
win”)
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IN GENERAL,
• Those who are in business contexts or those who are strangers are more likely to be
involved in exchange relationships. A mutual exchange relationship occurs when each
party conforms to the same norm. Hence, communal relationship separate the public
relations function from the cost-benefit-oriented exchange relationships and provide a
theoretical framework to understand the role and value of public relations.
• Both types of relationships are necessary for organizations, although the intention or
motivation determines the type of relationship that an organization develops with its
publics.
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TUATIONAL THEORY OF PUBLIC (STP)
Its extended model
The Level of Involvement • The extent to which individuals perceive that an issue
or a situation is relevant.
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INTERACTION OF COMMUNITY AND
EMPLOYEES
“employee-customer-profit chain”
• First by using internal branding, the task is to create synergy between the workplace and
marketplace.
• Internal branding can be seen as a part of internal marketing research, which emphasizes
satisfying the employees first in order to provide consistent quality service to customers.
• A corporation must first align its employees with its brand before it can fulfill promises to its
customers
• It is important for organizations to sell their brands internally because it is the best way to help
employees make “emotional connection” to products and services of the organization.
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1. Investors- a brand forms a relationship
that secures future earnings by retaining
customer loyalty.
2. Customers- a brand is a name that stands
BRAND for something positive in a customers’
INFLUENCE mind.
3. Finally, brand promises live through the
individual efforts of employees; and a
brand must be embraced by employees.
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“Happy employees lead to happy
customers, which create happy
shareholders”
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This Photo by Unknown Author is licensed under CC BY-SA
COMMUNICATING THROUGH ACQUISITION
1. Research first
“Often the hardest part of a
merger or acquisition is
2. Integration messaging presented as blending the different
cultures so that employees
united front are able to do their work to
the best of their ability with
the least amount of
3. Culture consistency frustration and conflict.”
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“WE WERE FORTUNATE THAT
AIRTRAN SHARES A LOT OF THE
SAME CORE BELIEFS IN TERMS
OF THE CULTURE OF
EMPLOYEES FIRST AND
TREATING CUSTOMERS RIGHT”
~TODD PAINTER, SWA COMMUNICATIONS
MANAGER
BACKGROUND
Southwest goes Southeast.
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COMPANY CULTURES
Southwest has cultivated a corporate culture AirTran was created from several airlines,
that focuses on employees and customers including the former ValuJet. It is known
having a good time while flying. The mostly as a low-cost, on time carrier. The
company’s training program with karaoke Company Culture page on AirTran’s Web site
and amusing challenges is designed to prior to the merger claimed that “loyal crew
socialize the new recruits into the airlines Members keep AirTran airways customers
fun-loving culture. According to its Website, soaring” and
its cultural values include “a Warrior Spirit, a who have a “timely and accommodating
Servant’s demeanor.” AirTran’s values included a total
Heart, and a Fun-LUVing Attitude.” commitment to safety, technical excellence,
continuous learning, fun and profit.
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GOOD NEWS
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BAD NEWS
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Objective:
1.Focus on the change process post the merger with AirTran
2.Evaluate alternatives to address the impacts of the merger.
RESEARCH FIRST.
• The first step was to meet with AirTran communications team to figure out how it
communicated to employees and compare that to how SWA was doing it.
• Results indicated: AirTran has a strong communication team, but the department
structure does not line up exactly with SWA’s structure. At SWA, for example, media
relations, employee relations, and social media were all in the same group, which
helped them achieve One Clear Voice. They had also established an Internal
Communicators Exchange (ICE) which enabled them to communicate with all
professional communicators throughout the organization weekly.
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RESULTS INDICATED
• AirTran has a strong communication team, but the department
structure does not line up exactly with SWA’s structure. At SWA, for example, media
relations, employee relations, and social media were all in the same group, which
helped them achieve One Clear Voice. They had also established an Internal
Communicators Exchange (ICE) which enabled them to communicate with all
professional communicators throughout the organization weekly.
“We look at a lot of topics: leadership, direction of the company, morale, etc.
Feedback from the survey is reviewed by different cross-sectional committees
who then take action on the recommendations. The idea of having an employee blog
and the ability to comment on podcasts came from feedback that we needed to
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increase two-way communication.”
INTEGRATED MESSAGING
Presented as a united front:
• To make the transition both companies had “to iron out some system inconsistencies.” said Todd
Painter a SWA communications manager. “For example, all SWA employees had company
issued e-mail accounts, but AirTran employees didn’t so we had to get those lined up.”
• SWA and AirTran decided that all messaging on the integration would be shared and that all
companies would continue using their own communication vehicles for at least six months
during the transition.
• During the six months, SWA established a weekly toll-free messaging system for employees to
receive weekly messages. Furthermore, AirTran employees were granted access to SWALife (a
very interactive blog that is refreshed with three two five stories a day).
* A little over a year after the merger (summer 2011), SWA launched its mobile app and AirTran
employees gained access at the same time.
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CULTURE CONSISTENCY
Maintaining its unique culture:
• Its main goals are to promote and foster a fun and healthy work
environment, to help build morale, and to appreciate and recognize the
hard work of fellow employees
• Includes more than 100 active members and close to 200 alumni members
(after three years, a committee member becomes an alumnus).
• “This is the group that goes out and cooks with our ground operations
employees… typically on the ramp where the planes are. We grill have
fun. We do the same for the mechanics. We also do a hokey day where we
surprise flight crews with goodie bags and let the have five to 10 minutes
of downtime”
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OUTSIDE EXPERT VERIFICATION:
EXTERNAL MEASURES VERIFY THAT SWA
IS DOING SOMETHING RIGHT WHEN IT
COMES TO BUILDING AND MAINTAINING
EMPLOYEE RELATIONSHIPS.
IN 2011, IT WAS RANKED 17TH BY
GLASSDOOR, A JOB AND CAREERS
COMMUNITY IN ITS 4TH ANNUAL
EMPLOYEE CHOICE AWARDS AS
REPORTED BY FORBES MAGAZINE
THANK YOU