Discussion Question

 

1. Stability and Innovation

 

           

 

 

Describe the concepts of organizational stability and organizational innovation. Provide a real-life example of how an organization has maintained stability and promoted innovation. You can use an example from your personal experiences in the workplace or an example that is discussed in Chapter Nine of your textbook.

 

             

Your initial post should be at least 250 words in length. Support your claims with examples from required material(s) and/or other scholarly resources, and properly cite any references.

   

2. Ethical Organizational Communication

               

Explain each of the three principles of ethical organizational communication, as outlined in Chapter Ten of your textbook. Then, describe how these principles are important during external organizational communication, such as lobbying, marketing or advertising.

             Your initial post should be at least 250 words in length. Support your claims with examples from required material(s) and/or other scholarly resources, and properly cite any references.

Learning Objectives

What We Will Be Investigating:
• Examine the interdependent roles of internal and external channels of communication in modern

organizational life.
• Identify the variety of relevant external information sources that typically influence organizational

activities.
• Examine how open systems theory describes the need for external organizational communication

and illustrates how exchanges between organizations and environments enable achievement of
key goals at multiple levels of organizing.

• Examine the systems transformation process used to develop organizational inputs into desired
outputs.

• Identify the key components of the interorganizational field and typical members of relevant
organizational environments.

• Identify strategies for building effective cooperative relationships with representatives of interde-
pendent external organizations, including examination of boundary-spanning organizational roles.

• Understand how strategic organizational communication activities such as marketing, public relations,
advertising, and lobbying are used to promote effective external organizational communication.

• Examine the ethical dimensions of interorganizational communication.

Chapter 10

Communicating within
Interorganizational Fields

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CHAPTER 10Introduction

The ability to express
an idea is well nigh
as important as the

idea itself.
—Bernard Baruch

Chapter Outline

10.1 The Interorganizational Field

Information-Gathering Activities
Information-Giving Activities

10.2 External Organizational Communication
Activities
Public Relations

Lobbying

Marketing and Advertising

10.3 The Small-World Phenomenon

10.4 The Relevant Environment

10.5 The Interorganizational Field and Systems
Hierarchy

10.6 Boundary-Spanning Activities

10.7 Relationship Development and
Interorganizational Communication

10.8 Ethical Dimensions of External
Organizational Communication

Introduction
The primary focus of organizational communication study is on internal communication.
In fact, most of the chapters in this book have focused on internal organizational com-
munication, such as ways in which members of work groups coordinate efforts, ways
in which communication is used to develop meaningful relationships within organiza-
tions, and ways in which leaders interact with workers. However, there is another side to
organizational communication that bridges the organization to its external environment:
external organizational communication.

Internal and external channels of communication are tightly connected and interdepen-
dent. In Chapter 9 we described how internal and external channels of communication
are used to help promote a balance between innovation and stability in organizations. We
also described how internal and external channels of communication are used to inform
organizational development efforts. But there is much more to external communication in
modern organizational life and the interdependence between internal and external chan-
nels of organizational communication, which we will examine in this chapter.

External organizational communication targets a varied group of external constituents
(including suppliers, buyers, shareholders, community members, and so on) and involves
a broad range of interrelated organizational activities such as the following:

• Public relations professionals emphasize the importance of external organiza-
tional communication with a focus on developing communication activities and
programs that promote a positive, externally recognized organizational identity
and building strong external relations between organizational stakeholders.

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CHAPTER 10Section 10.1 The Interorganizational Field

• Lobbyists endeavor to build relationships and provide information to promote
cooperation with and influence the activities and legislative efforts of key policy
makers.

• Marketers develop organizational strategies for communicating about and posi-
tioning organizations and their products and services with key external audiences.

• Advertisers develop specific communication campaigns and programs for pro-
moting organizational products and services with customers.

Often, these external communication activities are grouped together within an organiza-
tion, sometimes along with internal organizational communication functions, under the
broad title of strategic organizational communication.

This chapter examines the importance of coordinating activities with other relevant
organizations within the larger interorganizational field. We describe typical constitu-
ent members of interorganizational fields, including supplying organizations, regulating
organizations, competing organizations, as well as organizational customers and other
stakeholders. We also examine strategies for establishing effective cooperative relation-
ships with representatives of these interdependent organizations, including boundary-
spanning organizational activities (communication exchanges between organization
members and relevant others from outside the organization), and the use of marketing,
public relations, advertising, and advocacy campaigns. The chapter closes with a case
study that illustrates the strategic use of communication to establish and maintain effec-
tive interorganizational relations.

10.1 The Interorganizational Field

Every organization operates within a larger environment of organizations. This orga-nizational environment is often referred to at the interorganizational field. The
interorganizational field includes all the organizations that are relevant to a particular
organization. This can include, among others:

• organizations that supply raw materials to the organization,
• government agencies and professional associations that regulate organizational

activities,
• consumer groups,
• competing organizations,
• unions, and
• organizational partners.

It is important for organizational representatives to coordinate organizational activities
with these members of the interorganizational field. Just as organizational members must
use communication to establish cooperation with one another, members of interorganiza-
tional fields also use communication to elicit interorganizational cooperation.

Two primary organizational communication activities are essential to coordinating efforts
between organizations within the interorganizational field: information-gathering activi-
ties and information-giving activities. Let’s examine each.

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CHAPTER 10Section 10.1 The Interorganizational Field

Information-Gathering Activities

Information-gathering activities (sometimes referred to as intelligence gathering, research,
or due-diligence functions) occur when boundary-spanning organizational actors use their
interorganizational connections to keep up with changes within the environment that are
relevant to their organizations. For example, advance-planning representatives for the
Olympic Games Site Selection Committee are sent out to collect information about poten-
tial Olympic Game sites to help determine whether the sites have the requisite qualities,
resources, and venues needed to adequately host the Olympic games. These advance-
planning representatives interact with local government officials, financial backers, facility
managers, and others to gather the information needed to make an informed recommen-
dation about whether to award the Olympic games to a particular site.

There are many times in organizational life when information is needed from the exter-
nal organizational environment to guide planning and decision making. Additionally,
information from external sources can alert organization members about emerging orga-
nizational constraints and opportunities. For example, information about new competing
products can alert the organization to the need to innovate its own product line to main-
tain its market share. Information about new technologies might let organizational lead-
ers know about the opportunity to develop new strategies for increasing organizational
efficiency and productivity.

Information-Giving Activities

Information-giving activities (sometimes referred to as publicity, lobbying, or sales func-
tions) occur when boundary-spanning organizational actors provide strategic information
to key representatives of external organizations within the environment to elicit support
and coordination for their own organizations. For example, call center specialists at the
Cancer Information Service (CIS), operated by the National Cancer Institute, answer
questions from callers on their toll-free telephone hotline (1-800-For-Cancer) about cancer
diagnoses, treatments, clinical research, and how to cope with side effects from cancers
and cancer treatments. The goal of the CIS is to reduce the national cancer burden by
providing members of the public who are confronting cancer with relevant information
about early detection, diagnosis, treatment of cancers, as well as about successful cancer
survivorship so these individuals can make informed decisions about the best health care
and quality of life choices.

It is imperative for the CIS specialists to provide callers with timely, accurate, and rel-
evant information to help callers cope with the many uncertainties and challenges of deal-
ing with cancer. The specialists are carefully trained to communicate effectively over the
phone with callers from different backgrounds, education levels, and levels of health lit-
eracy. The specialists are provided with computer databases with cancer information, as
well as scripts they can recite to callers to help answer common questions. The specialists
can also mail or email relevant text to callers to provide them with written transcripts
of the health information they need. The information-giving functions of the CIS help
the National Cancer Institute achieve its goal of reducing the national cancer burden by
providing evidence-based health information to individuals coping with cancers so these
callers can make good decisions about managing the disease. Relevant cancer informa-
tion from the CIS can help callers make good decisions about effective cancer prevention,

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CHAPTER 10Section 10.2 External Organizational Communication Activities

early detection, treatment, and survivorship, helping to reduce cancer incidence, morbid-
ity, and mortality. Information-giving activities serve a similar role in for-profit organiza-
tions where consumers call in for product information and assistance.

10.2 External Organizational Communication Activities

As already noted, external organizational communication encompasses a broad
range of activities including public rela-
tions, lobbying, marketing, advertising,
and more. Such strategic communica-
tion includes the broad range of internal
and external communication functions
in modern organizational life. Although
many of the external communication
activities tend to overlap, we will exam-
ine some of the major avenues for exter-
nal organizational communication in this
section to give you a flavor for the ways
that external channels of communication
are used. We’ll start with public relations.

Public Relations

Public relations (PR), sometimes referred to as public affairs communication, is a term used
to cover an integral area of organizational communication. PR is used to coordinate inter-
actions between organizations and key audiences (publics). Although the primary focus of
public relations activities is typically on coordinating organizational activities with external
audiences (such as with customers, regulators, and competitors), there is also an internal
communication dimension to public relations. That is, PR professionals also focus on com-
municating effectively with organizational members, who comprise a key internal public
for organizational communication. For example, PR professionals often conduct employee
surveys to identify internal organizational issues and produce company newsletters to
keep organization members informed about and involved with organizational activities.

Public relations has been used to describe many different important organizational commu-
nication activities including corporate publicity, shareholder relations, financial relations,
environmental and consumer affairs, internal communications, labor relations, community
affairs, media relations, government relations, issues management, advertising, branding,
corporate identification, and corporate advocacy (Grunig & Hunt, 1984). Public relations
activities are often quite complex and involve careful planning and research. For example,
crisis-management activities designed to minimize harm to an organization and to its pub-
lics during emergencies, such as oil spills or chemical contamination, generally involve
coordination of many individuals representing media outlets, government agencies, con-
tractors, consumer groups, first-responder groups, and members of scientific communities.
It is important for crisis-management communicators to provide relevant, accurate, and
timely information that enables those affected in emergencies to respond effectively to the

What does the Nike logo communicate to its
external environment?

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CHAPTER 10Section 10.2 External Organizational Communication Activities

situation, as well as to demonstrate the responsibility of the organization in addressing the
crisis situation. Poorly handled crises can destroy organizational reputations, while well-
handled crisis communication can enhance public respect and loyalty to organizations.

Organizations in Action
A Study in Crisis Management

Today, every time you open up a bottle of aspirin, or a jar of mustard, or a jug of pancake syrup, what
you’re doing—and how you are doing it—is directly connected to one of the most famous examples
of crisis management in U.S. history: Johnson & Johnson’s handling of the Tylenol scare in 1982.

As noted in this chapter, crisis management activities are designed to minimize harm to an
organization and its publics, and the handling of the Tylenol scare is quite literally a textbook example
of how firms need to proceed in such an emergency.

In October 1982, seven people in the Chicago area were reported dead shortly after taking extra-
strength Tylenol capsules. Initially, it was unclear who was responsible for these deaths, although
it was clear that the Tylenol capsules were tainted with lethal doses of cyanide. Needless to say,
Johnson & Johnson was on the hot seat: consumer confidence in Tylenol and the company was shaky,
and the whole situation could deteriorate into a corporate disaster. Indeed, Tylenol’s market share
during this period plummeted from 37 percent of the market to only 7 percent. But McNeil Consumer
Products, the relevant subsidiary of Johnson & Johnson, embarked on a crisis-management program
that has often been used as a model for such efforts.

What did they do? First, they took a strong moral and ethical stand: As far as the company was
concerned, it was “people first and property second.” Period. And to walk the talk, Johnson &
Johnson pulled 31 million bottles of Tylenol off the shelves, at a loss of more than $100 million. The
firm also halted all advertising for the product. After determining that the cyanide did not get into
the capsules at any Tylenol plant, Johnson & Johnson nonetheless reintroduced the product with

triple-seal tamper resistant packaging, becoming
the first company to comply with a Food and Drug
Administration mandate of such packaging. Further,
to motivate consumers to start buying Tylenol again,
they offered a $2.50 coupon on future purchases.
And to restore confidence in the product, the
company made over 2,250 presentations to the
medical community about their efforts (Effective
Crisis Management).

Johnson & Johnson also offered a $100,000 reward
for information leading to the arrest and conviction
of the Tylenol killer, but no one was ever charged
with the crime (“A Bitter Pill,” 2000). But as far as the
public was concerned, Tylenol was not to blame for
these deaths, and given the company’s aggressive
strategy to investigate and deal with the problem,
consumer confidence was eventually restored.
Although in the short run, Johnson & Johnson’s
reaction may have seemed excessive, unnecessary, or

risky, it demonstrated a type of corporate responsibility that could and did restore public trust. And as
a result of that tragic incident in 1982, virtually every firm that markets food and drugs today makes
use of the same packaging safeguards—safeguards that were simply nonexistent in most consumer
products prior to this unfortunate incident.

Why does Johnson & Johnson’s han-
dling of the Tylenol crisis make it a
good example of crisis management?

(continued)

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CHAPTER 10Section 10.2 External Organizational Communication Activities
Lobbying

Lobbying activities involve the development of influential relationships between orga-
nizations and relevant policy makers, such as representatives from legislative bodies,
regulating agencies, accrediting organizations, consumer groups, media outlets, and gov-
ernment organizations. Lobbyists build their credibility with policy makers and media
representatives by providing these influential individuals with relevant, accurate, and
timely information concerning complex issues of interest to organizations.

Briefing documents are often written by lobbyists to provide key decision makers with rel-
evant background information about important issues. The best briefing documents are suc-
cinct, informative, and persuasive, motivating policy makers to favor the interests of the
lobbyists’ organizations. Press releases are specialized briefing documents that lobbyists use
to influence press coverage concerning important organizational issues. To be effective, lob-
byists need to make sure their press releases have news value, provide the right kind of
information needed by media representatives, and are responsive to media constraints con-
cerning messages’ content and structure. Strategic lobbyists target the right media outlets for
covering organizational issues that are most likely to reach and influence relevant audiences.

Marketing and Advertising

Marketing and advertising activities are designed to communicate organizational prod-
ucts and services to key audiences. Marketing professionals develop communication strat-
egies for positioning organizational products and services to meet audience demands. A
critical part of effective marketing is to gather data through market research about the
needs, attitudes, and preferences of key audiences for organizational products and ser-
vices. Who are these audiences? What are their key beliefs, values, and attitudes concern-
ing organizational products and services? How receptive are they likely to be to paying
attention to and accepting organizational messages?

Marketing efforts involve making strategic external communication decisions based on
the marketing mix, popularly known as the 5 Ps (product, price, place, promotion, and posi-
tioning) (see Figure 10.1). This marketing mix involves the following:

Critical Thinking Questions

1. In a crisis situation such as the Tylenol scare, what various “publics” must a company like
Johnson & Johnson be concerned about?

2. Why might restoring trust in a company after a crisis be difficult?
3. What is the value of long-term thinking in such a crisis situation?

Sources

Effective Crisis Management. (n.d.). The Tylenol crisis, 1982. Retrieved from http://iml.jou.ufl.edu/
projects/fall02/susi/tylenol.htm

Bergman, J. (2000, November 2). A bitter pill. The Chicago Reader. Retrieved from http://www
.chicagoreader.com/chicago/a-bitter-pill/Content?oid=903786

Organizations in Action (continued)

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http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm

http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm

http://www.chicagoreader.com/chicago/a-bitter-pill/Content?oid=903786

http://www.chicagoreader.com/chicago/a-bitter-pill/Content?oid=903786

CHAPTER 10Section 10.2 External Organizational Communication Activities

1. Developing communication strategies to increase understanding about organiza-
tional products.

2. Pricing those products so they are attractive to key audiences. (This means not
only the financial price of products but also the psychological costs and rewards
connected to organizational products or services.)

3. Placing messages about organizational products and services on communication
channels that will capture audience attention.

4. Promoting products with motivating messages.
5. Positioning products and services as attractive options for audiences within the

marketplace of similar and competing products and services.

The promotion of a product can include a number of different promotional tools being
used, including advertising, direct marketing, sales promotions, personal selling, and
public relations. Advertising activities involve the development and implementation
of creative communication strategies to promote organizational products and services.
Advertising professionals design communication campaigns to create audience aware-
ness about organizational products and services, as well as to persuade audiences to pur-
chase those products and services.

Advertising campaigns use a range of different media, such as television, radio, newspa-
pers, magazines, billboards, messages delivered via the Internet and through social media,
and even through word-of-mouth interpersonal communication channels. There is a strong
focus in advertising on developing targeted persuasive messages that capture audience
attention and influence audience behaviors. However, those creative messages are not just

Marketing
Mix

Price

PlacePromotion

Positioning

Product

Figure 10.1: The Five Ps of Marketing

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CHAPTER 10Section 10.2 External Organizational Communication Activities

generated from the minds of copywriters. They are
typically based on extensive audience research and
message testing data. The most effective advertis-
ing campaigns are strategically designed based on
extensive research. These campaigns are targeted
to specific segmented audiences, use multiple rein-
forcing messages, and are distributed over a range
of familiar and easy-to-use channels over time.

Advocacy advertising has become an increas-
ingly popular way to promote the image and
social responsibility of organizations. In advocacy
advertising, organizations align themselves with
important social causes, such as health promo-
tion, environmental protection, and human rights
issues, to demonstrate ways that the organization
gives back to the community. Often the advertis-
ing illustrates ways that the organization is sup-
porting efforts to address important social issues
and advocates support from others to address
these issues. Advocacy advertising is important
for building organizational credibility, loyalty,
support, and to position organizational image and
identity, or the ways that the public perceives the organization. External communication,
such as advocacy advertising, is often used to enhance these images. For example, since
many people may have negative impressions of large petroleum companies, these compa-
nies spend a lot of money on television commercials and print advertisements that tell the
public about all the positive things they do, like helping the environment, disadvantaged
children, or providing jobs for the unemployed. These advocacy advertisements help to
counter some of the negative images people may have about these huge corporations by
showing these organizations as good, caring, and contributing participants in society.

How does Coca-Cola use the 5Ps of
marketing? What marketing channels
does it utilize?

Organizations in Action
A Philip Morris Misstep

Global awareness, advocacy advertising, and communication ethics: all are discussed in this chapter,
and they all relate to a controversial advocacy spot aired by Philip Morris in 2001.

Wanting to promote its image and its sense of social responsibility, Philip Morris chose to create and
run an advocacy ad that would demonstrate its concern for the victims of war-torn Kosovo. (The
Kosovo War in the former Yugoslavia killed countless thousands in the late 1990s.) In terms of its
image, the firm wanted to remind the world that it makes more than cigarettes, including its non-
tobacco products such as Kraft cheese. Karen Brosius, Philip Morris’s director of corporate affairs,
said, “It’s important for [us] to get across the message that we’re more than a tobacco company, and
that we have dedicated employees.”

What kind of advocacy spot was broadcast? As Shelly Branch writes in the Wall Street Journal,
“The TV screen shows a 10-acre refugee camp, its makeshift tents trembling in the (continued)

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CHAPTER 10Section 10.2 External Organizational Communication Activities

snow. Hundreds of Kosovar refugees, shielding their faces from the harsh conditions, march toward
safety and shelter. In the distance, a military helicopter pierces the gray sky. The words ‘based on a
true story’ appear on the screen. As the aircraft lands, cargo doors fly open to expose the contents
of its belly: huge cardboard boxes marked ‘Kraft.’” Then, to personalize this moment of corporate
philanthropy, a woman shouts, above the din of the helicopter rotors, “Hi, I’m Molly from Philip
Morris.” (Branch, 2001).

However, despite its intention to do a good deed and also improve the corporate image, critics
have raised several haunting ethical questions about this 60-second “feel good” spot. First, “Molly”

was not a Philip Morris employee, but an actor
flown in from Atlanta. Second, the ad was shot in
the Czech Republic, not Kosovo. Third, all of the
“refugees”—350 of them—were not actual refugees
and were handpicked because of their dark olive
complexions.

In the ad, Branch writes, they “huddled over bowls
of Kraft Macaroni & Cheese prepared by a team of
local assistants who had never before seen the bright-
yellow noodle dish.” Fourth, the weather in Kosovo
was mild, not frigid, as portrayed in the ad, but the
ad agency hired by Philip Morris thought the snow
“added a sense of realism to the commercial.” Fifth,
and perhaps most important, the production costs for
the ad—never revealed by Philip Morris but estimated
at well over $1 million—far exceeded the net value of
the donated food, which was in the $125,000 range.
Not surprisingly, critics have argued that if Philip
Morris really wanted to help the actual refugees, they
should have simply donated all the money to this
worthy cause.

As more companies concern themselves with charitable giving, it’s becoming more difficult to
separate a “marketing effort” from a “true philanthropic effort,” said Peter Radford of the Center for
Responsibility in Business.

Critical Thinking Questions

1. Do you regard the Philip Morris campaign described here as more ethical or more unethical?
Why?

2. Should companies try to publicly “pat themselves on the back” for their charitable giving, and if
so, how?

3. Do you know of any corporate philanthropic efforts that meet the highest standards of
corporate ethics?

Source

Branch, S. (2001, July 24). Philip Morris’s ad on macaroni and peace—Kosovo tale narrows gap
between philanthropy, publicity. Wall Street Journal, (p. B11A).

Case Study (continued)

What mistakes did Philip Morris make
in its advocacy ad?

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CHAPTER 10Section 10.4 The Relevant Environment

10.3 The Small-World Phenomenon

The rapid development and widespread adoption of powerful communication technol-ogies have transformed the world into a global village where organizations represent-
ing different nations and geographic regions of the world routinely confront one another
and must be able to successfully cooperate to survive and prosper (Bouwman, et al, 2005;
Kreps, 1988; McLuhan, 1962; 1964). Advanced technologies, used to enhance human com-
munication and transportation, have decreased the functional distance between people
and nations, increasing levels of international interaction and interdependency.

From a systems theory perspective, the modern world has become a huge suprasystem
composed of numerous international social systems sharing a common environment, shar-
ing information, and depending on cooperative activities to promote system integration
and resist entropy (Berrien, 1976). Futurist Buckminister Fuller (1963) has described this
situation of interorganizational interdependency quite vividly by likening the earth to a
spaceship in which occupants share similar risks and constraints, such as limited food and
fuel, and need to work together to keep the spaceship flying and in good repair. Similarly,
modern organizations operate interdependently with many other organizations, sharing
similar risks and constraints, and needing to work cooperatively with these organizations.

As we have discussed earlier in the book, increased organizational interdependency has
resulted in a “small world” where there is a dire need for effective coordination and coop-
eration among members of international interorganizational fields. For example, in the
modern automotive industry, U.S. automobile manufacturers such as the Ford Motor
Company need not only be aware of and adapt to the activities and products produced by
their domestic competitors (such as the General Motors Corporation and the Chrysler Cor-
poration); they also need to compete directly with automobile manufacturers from Europe
(such as Mercedes, BMW, Volvo, and Volkswagen) and from Asia (such as Toyota, Honda,
Subaru, and Hyundai) as well as with automakers from other parts of the world. Addition-
ally, foreign companies that supply raw materials (steel, plastics, fabrics) and components
(automotive parts, electrical equipment, computer chips) for automobile manufacturing,
foreign markets where U.S. automakers sell automobiles, as well as collaborative ventures
between U.S. automakers and foreign automobile manufacturers have become important
parts of the U.S. automotive industry. Interorganizational communication is essential for
coordinating activities between these international organizations. Effective international
interorganizational communication performs important roles in modern organizational
life to promote coordination and cooperation between interdependent organizations.

10.4 The Relevant Environment

Open systems theory stresses the importance of interorganizational communication by suggesting that organizations and their environments have mutual influences on
each other. Environmental changes (such as changes in the economy, regulation, and even
the weather) inevitably influence organizational life. Similarly, internal organizational
changes (such as new products, services, and personnel) are likely to influence members
of the organization’s environment.

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CHAPTER 10Section 10.4 The Relevant Environment

Meanwhile, the environments that organizations reside within are very large. These envi-
ronments consist of all the factors external to organizations. Yet different environmental
phenomena have differential degrees of influence on organizations. The most influential
elements of the environment to the organization are known as the organization’s relevant
environment. The relevant environment consists of all the factors external to the organiza-
tion’s boundary that have direct influences on the organization and its members. Organiza-
tional representatives need to go beyond their organization’s boundaries to seek information
about what is going on within their organi-
zation’s relevant environment. It is there-
fore wise for organizational leaders and
other organizational members to establish
external organizational communication
relationships that help them keep abreast
of environmental conditions, In fact, estab-
lishing strong and cooperative communi-
cation relationships with key members of
the relevant environment is critical to orga-
nizational success and survival.

As organizational theorist Karl Weick
(1979) has explained, relevant organiza-
tional environments can be best conceptu-
alized as information environments. The
relevant environment provides organiza-
tion members with information they need to process and respond to if they are to maintain
good relations with external publics and continue to achieve organizational goals. Orga-
nizational representatives interpret environmental messages to derive information about
environmental conditions and to identify the potential influences of changing conditions
on organizational activities. Access to key environmental information helps organization
members identify emerging constraints on the achievement of organizational goals as well
as to identify emerging windows of opportunity for their organizations. These windows of
opportunity can open and close quickly, so organizational representatives need to be nim-
ble at gathering timely information, feeding it back to organizational leaders, and respond-
ing to opportunities. For example, investors need to respond quickly to news about good
corporate investment opportunities before others buy out the investments.

The relevant environment is also a primary outlet and audience for strategic messages
sent by organizational representatives. Interorganizational messages are needed to pro-
vide representatives from the organizational environment with relevant information
about organizational activities and products. For example, advertising campaigns inform
potential customers about new products and services being offered by a company. Sim-
ilarly, organizational recruitment efforts depend on external communication to inform
potential job candidates about employment opportunities within organizations. Organi-
zations and their relevant environments are indelibly intertwined by message flows that
connect them and provide each with important operational information.

What does the relevant environment consist of
for a product like Dole bananas?

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CHAPTER 10Section 10.5 The Interorganizational Field and Systems Hierarchy

10.5 The Interorganizational Field and Systems Hierarchy

The concept of systems hierarchy demonstrates the interdependent relationships between organizations sharing similar environments. Every system is composed of
hierarchical levels of organization that follow similar system processes. As we mentioned
in Chapter 5, the basic level is the system, which seeks and processes inputs from the rel-
evant environment into finished outputs that can be sent back out into the environment.
For example, in a furniture manufacturing company, raw materials (wood, fabrics, nails,
glue, etc.), staff (carpenters, managers, janitors, salespeople, etc.), and energy (electricity,
gas, or other forms of power) are sought from the relevant environment to process into
finished pieces of furniture (chairs, tables, couches, etc.) that can be sold to customers
external to the company.

As you’ll recall from Chapter 5, this process of making inputs into desired outputs is known
as the systems transformation process. The systems transformation process occurs at multiple
levels of organization because each system is composed of subsystems that also interact
with their relevant environments to transform inputs into desired outputs, and each system
resides within a larger suprasystem, in which the system interacts with other systems to
transform inputs into outputs. Figure 10.2 presents a systems hierarchy model. In essence,
the same organizational processes of seeking inputs from the relevant environment to
transform into outputs occur at multiple levels of organizing. Communication between the
systems and their relevant environments is critically important at all levels of organizing.

Every organization is composed of groups of interdependent organization members, such
as departments or divisions. These are the subsystems that operate within organizational
systems. The organization (system) also resides within a larger environment with other

System

SubsystemSubsystem

Subsystem Subsystem

Suprasystem

Inputs OutputsInputs Outputs
OutputsInputs

Figure 10.2: The Systems Hierarchy Model

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CHAPTER 10Section 10.6 Boundary-Spanning Activities

interrelated organizations. This is the suprasystem. Groups of organizations sharing the
same suprasystem environment are often referred to as the interorganizational field, the
topic of this chapter. As we noted earlier in the chapter, typical organizational representa-
tives of the interorganizational field might include organizations that supply the orga-
nization with resources, regulate the activities of the organization, or purchase goods or
services from the organization. These organizations depend on one another and have a
range of influences (good and bad) on each other.

As you have learned, each level of the system hierarchy (subsystems, systems, and supra-
systems) abides by the same basic system properties of interdependence, systems trans-
formation, and adaptation. The systems theory concept of homeostatic balance suggests
that different system components (subsystems that exist within each level of the system)
must coordinate activities by using feedback loops (communication patterns between sub-
systems). These feedback loops are used to coordinate the exchange of information and
materials needed to achieve organizational goals.

In smooth-running organizations the effective
use of feedback loops insures the coordination of
activities between system components. Within the
interorganizational field, this means that interde-
pendent organizations cooperate. However, in the
real world, orchestrating this kind of cooperation
is not easy to do. Each organization has its own
goals and methods that may not match the goals
and methods of other organizations. For exam-
ple, think about the complexities of establishing
cooperative economic relations between differ-
ent countries. It is not easy to establish balanced
trade agreements between countries because
each country is likely to focus on its own best
economic interests. Government officials need to
establish agreements that are mutually beneficial
economically for these nations to cooperate with
one another. Moreover, economic issues are likely
to change over time, so the officials representing
these different countries need to renegotiate trade
agreements. They use feedback loops between
representatives of the different countries to rene-
gotiate these agreements.

10.6 Boundary-Spanning Activities

As we discussed earlier in the book, organization members who have the most com-munication contact with representatives of the relevant environment are known as
boundary spanners. Boundary spanners actively gather information from the relevant envi-
ronment and feed the information back to the organization to guide adaptation. This is
a critical organizational function since many organization members are so focused on

What kind of communication must
take place between members of the
European Union?

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CHAPTER 10Section 10.6 Boundary-Spanning Activities

accomplishing internal organizational activities that they often are unaware of changing
environmental needs and constraints. The boundary spanners also represent the orga-
nization to outsiders, influencing the ways that members of the relevant environment
interact with the organization.

Boundary spanners typically work in areas of the organization such as public relations,
media relations, sales, advertising, personnel, customer service, and market research,
where their job responsibilities involve communicating with people outside of the organi-
zation. Boundary spanners are often located at the top or bottom of organizational hierar-
chies, where these personnel have contact with individuals from outside the organization.
Top executives, who have high visibility and mobility, often interact with leaders from
other organizations, working out cooperative ventures and serving on industry boards
and committees. These leaders often engage in fund-raising activities, media interviews,
lobbying activities, and attend social gatherings representing the organization, affording
them many opportunities to gather relevant information and represent the organization
to different key publics. Lower-level employees—such as those working to deliver, install,
and sell products; those who greet visitors (either in person or through the use of media);
and clerks, parking attendants, food servers, and customer service representatives—also
have many opportunities for contact with representatives of organizations within the
interorganizational field.

Yet these upper- and lower-level organizational members are not always well prepared
to represent the organization as boundary-spanning communicators. Top executives may
be too far removed from daily organizational operations to provide detailed and accurate
organizational information to external constituents. These executives may also have diffi-
culties providing information gathered from the environment back to the specific internal
organizational units that need that information.

Lower-level employees may lack the training they need to communicate effectively with
members of the relevant environment. Sometimes clerks and other boundary spanners
do not take the time and effort needed to build cooperative relationships with customers.
They may not understand the scope of organizational activities or the organization’s mis-
sion well enough to communicate relevant information accurately to organizational rep-
resentatives. They may not know what to do with key information they gather from the
environment, so the intelligence they gather is not shared with those in the organization
who could use that intelligence. These lower-level workers typically have little authority
to commit organizational resources or make decisions of concern to representatives from
the interorganizational field.

Organizations must take care to prepare those members at the top and bottom of the
organizational hierarchy who have contact with the relevant environment to communi-
cate effectively as boundary spanners. Communication training can help these individuals
represent the organization effectively within the interorganizational field, communicate
important organizational information to environmental representatives, and preserve
and apply information gathered from the environment. Providing boundary spanners
with relevant information and materials they can share with key external publics is also
wise. For example, providing boundary spanners with mobile technologies such as smart-
phones, networked tablets, and netbooks can help these organizational members stay in
close touch with key representatives from external organizations. Sending key boundary

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CHAPTER 10Section 10.7 Relationship Development and Interorganizational Communication

spanners to relevant meetings and conferences can also enhance their ability to establish
and maintain effective external organizational relationships.

Leaders in organizations can help improve interorganizational communication by develop-
ing external communication structures and processes for handling boundary-spanning activ-
ities. Mid-level organizational workers in departments such as public relations, lobbying, and
market research can be designated and trained to represent the organization meaningfully
to key external publics. Organizations can invest in providing travel support for mid-level
organization members to attend meetings, meet with clients, and participate in external edu-
cation programs. Organizational leaders can encourage the use of communication media for
keeping in touch with key publics. They also can invest in community development activities
that can help establish cooperative community relations with the organization.

10.7 Relationship Development and Interorganizational
Communication

Relationship development is critical to external organizational communication. Inter-organizational communication depends on the quality of interorganizational rela-
tionships established between representatives of interrelated organizations. The better
developed these interpersonal relationships are, the more effectively boundary spanners
can be at gathering relevant environmental information, providing key publics with orga-
nizational information, and promoting cooperation between organizations. To accomplish
interorganizational goals, organizational representatives must be able to elicit interper-
sonal cooperation. Strong interpersonal relationships help boundary spanners promote
coordination and cooperation with representatives from related organizations.

As we discussed in Chapter 4, strong relationships are based on the mutual fulfillment of
needs and expectations between relational partners (fulfilling implicit contracts). Inevita-
bly, when boundary spanners fail to meet the expectations of interorganizational repre-
sentatives, they disappoint these representatives, jeopardize their relationships with these
organizational partners, and also jeopardize cooperation between their organizations. In
effective interorganizational relationships, organizational actors establish clearly under-
stood and agreed-upon implicit contracts. Not only are they aware of the expectations
they have for one another, they also work at seeking new information and continually
updating their perceptions of each other’s
expectations.

By being sensitive to the changing needs
of their relational partners and changing
needs of the organizations they represent,
boundary spanners can update their rela-
tional expectations and renegotiate their
implicit contracts to maintain coordina-
tion and cooperation. These boundary
spanners work to update their implicit
contracts by consistently giving and seek-
ing interpersonal feedback, enabling them

How did Toyota jeopardize its relationships
with others during its 2010 recall?

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CHAPTER 10Section 10.8 Ethical Dimensions of External Organizational Communication

to continue acting appropriately with one another as their relationships grow. The better
these relational partners are at effectively updating their implicit contracts, the better they
are at fulfilling one another’s needs and strengthening interorganizational coordination.
The norm of reciprocity suggests that interpersonal relationships develop incrementally
over time with each partner responding in kind to the behaviors of the other partner. By
demonstrating cooperation with organizational representatives, boundary spanners can
encourage their interorganizational partners to reciprocate by cooperating with them.

10.8 Ethical Dimensions of External Organizational Communication

External organizational communication powerfully expresses the moral character of organizations. The ways organizational representatives interact with one another
demonstrates the relative levels of respect, honesty, integrity, equity, responsibility, and
trustworthiness of their organizations. As modern organizational life has become increas-
ingly politicized, the ethics of interorganizational communication processes often have
been stretched by irresponsible attempts to influence interorganizational outcomes.

There are many instances in the modern world where questionable ethical choices have
been made in guiding interorganizational communication. News stories regularly cover
instances of organizational bribery, extortion, dishonesty, manipulation, and collusion in
the ways business, industrial, health care, governmental, and even educational organiza-
tions conduct business with their relevant publics. For example, there have been many
stories in the news about government lobbyists engaging in unscrupulous activities while
representing clients, such as the revelations about former lobbyist and businessman Jack
Abramoff, who offered bribes and misinformed officials to reap huge personal profits.
Similarly, media coverage of Bernard Madoff’s extortion of clients’ investment funds as
part of a Ponzi scheme to steal their money illustrates ethical improprieties in the ways
that some devious executives interact with their clients.

Public relations, advertising, and lobbying activities have been particularly susceptible
to charges of ethical improprieties. Groups of organizations often have been found to
unfairly monopolize control over relevant resources, products, or markets. It is not uncom-
mon for organizations to seek financial gains at the expense of their employees, suppliers,
customers, or competitors. Such unethical attempts for interorganizational influence and
control violate the moral standards of society, weaken the credibility of organizations, and
threaten long-term organizational effectiveness.

Three covering principles govern ethical organizational communication: honesty, equity,
and avoiding harm (Kreps, 1988):

1. For interorganizational communication to be ethical, organizational communica-
tors must strive to be honest. It is not ethical for organizational representatives
purposefully to deceive customers, regulators, or competitors. Practices such as
false advertising, fudging of records, and withholding information from stake-
holders or regulators are clear examples of dishonesty. Other questionable inter-
organizational practices include espionage, sabotage, overpricing of goods and
services, discriminatory employment practices, and thievery.

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CHAPTER 10Section 10.8 Ethical Dimensions of External Organizational Communication

2. For interorganizational communication to be ethical it must be equitable. It is
not fair for organization members to exert undue and oppressive influence on
different publics. Any organizational practices that unfairly restrain free trade,
self-determination, and inhibit the activities of key publics—such as instances of
monopoly, conflict of interest, bribery, coercion, stock manipulation, and discrim-
ination—threaten equity in organizational life.

3. Organizations also have the responsibility to minimize harm to their environ-
ments and to their publics. For example, automakers have the responsibility to
build safe and reliable cars that will not put drivers at risk of accidents, fires, and
explosions. Farmers have the responsibility to protect against spreading toxins in
the foods they produce that could lead to serious illnesses and deaths for con-
sumers. Officials who operate nuclear power plants have the responsibility to
enforce safety measures to reduce the risk of public exposure to radiation.

Organizations are more or less externally accountable to the extent that they live up to
these covering principles for ethical organizational communication. Failures to promote
external accountability inevitably lead to unethical interorganizational communication.
Any organizational activity that endangers the environment decreases the organization’s
external accountability and violates implicit contracts between the organization and its
publics. Organizational activities such as falsifying public records, withholding infor-
mation about potential or current dangers, causing harm to the environment through
pollution, and discriminatory employment practices are all instances of low external
accountability. The best organizations engage in external organizational communica-
tion practices that promote external accountability. For example, McDonald’s has begun
providing nutrition information about all the foods it sells so consumers can make good
choices about the foods they choose to eat. The company is not required to provide this
nutrition information but decided to do so to help its customers make healthy food choices
and to demonstrate its external accountability to customers.

To enhance the ethics of interorganizational communication, clear moral standards for
organizational behavior must be established and maintained by organizational leaders as
important themes of organizational cultures. The covering principles for ethical organiza-
tional communication (honesty, avoiding harm, and equity) should be used as guidelines
for directing and evaluating interorganizational communication. Organization members,
especially boundary spanners, should strive to develop honest, culturally sensitive, and
trusting relationships with representatives of the interorganizational field. Clear, sensi-
tive, and ethical communication between organizational representatives can facilitate
the development of effective implicit contracts and meaningful interorganizational rela-
tionships. For example, Walgreens Pharmacies enacted a new policy to make pharmacist
advisers available in all their stores to help customers learn about the risks and benefits of
prescribed medications, as well as to explain the correct use of medications. This program
demonstrates the company’s concern for customer safety and also helps to establish good
working relationships between pharmacists and patients. Similarly, the personal banker
strategy used by several banks to advise consumers about good investment options
is a way these banks are building personal relationships between bank personnel and
customers.

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CHAPTER 10Section 10.8 Ethical Dimensions of External Organizational Communication

Case Study
Feeling the Pinch at Jet Airfreight

Jet Airfreight was a successful midsized international airfreight forwarder that helped companies
around the world ship goods by air quickly and easily to many different countries. It specialized in
responsive service and quick shipments for customers who wanted to move materials, equipment,
and products quickly to international locations. Although Jet Airfreight did not own or operate any of
its own airplanes, it worked with many different airlines to carry freight for them. Jet Airfreight was
basically a middleman that made all of the needed arrangements to move freight from one point to
another, making sure the freight was picked up and delivered in a timely, safe, and efficient manner.

Jet Airfreight operated a network of 15 offices located near large airports in major cities across
the United States. Most of the offices were small operations with a few managers, staff members,
truckers and warehouse workers; but the New York and Los Angeles offices had large operations
staffs. The company’s domestic operations headquarters was located in the Los Angeles office, and
international operations headquarters was located at the New York office. There were active lines
of coordination between L.A. (domestic) and New York (international) freight activities, since a lot
of freight originating in small markets was flown domestically to larger airport cities (typically New
York or Los Angeles) for international flights. Similarly, international goods going to smaller domestic
locations were flown out of New York or L.A. In addition, Jet Airfreight contracted with a network
of small international freight forwarders in large cities around the world to pick up and deliver their
international shipments. Jet Airfreight also operated a number of vans and small trucks at each
of the company’s 15 domestic offices to pick up and deliver freight to the airports. However, Jet
Airfreight contracted with several different trucking companies to pick up originating freight from
their customers to bring to the Jet Airfreight offices and also to deliver the arriving freight from their
offices to the freight’s ultimate destination.

As part of their process, Jet Airfreight would pick up freight from customers, package the freight,
prepare the needed international customs paperwork for shipping the freight, and make arrangements
with appropriate air carriers to fly the freight to the desired destinations. The company delivered the
freight to the airlines, made sure the freight passed through international customs at the airports,
monitored the movement of the freight on the flights carrying the goods, picked up the goods once
they arrived at the destination airport, and then delivered the goods to the ultimate destination. It
would also provide its customers with updates about the movement and delivery of freight.

Customers contracted with Jet Airfreight because the company saved them a lot of time and
money. Jet Airfreight could actually ship freight for a lower cost than the customers could get from
the airlines if they shipped the freight by themselves. The company was able to negotiate special
advantageous shipping rates with the airlines due to the large amount of freight it shipped. It was
also able to combine shipments from different customers into large containers, which received
discounted shipping rates from the airlines. Once the containers arrived at the destination airports,
Jet Airfreight would break down the containers and arrange to have the individual shipments
delivered to their ultimate destinations.

Things were going very well for Jet Airfreight until the economy began to tighten. As the price of
gasoline began to increase, the airlines began to raise their rates, even the discounted rates they offered
to Jet Airfreight. Similarly, the trucking companies began to charge a premium on top of their regular
delivery rates to cover their increasing costs for fuel. Jet Airfreight’s cost of operating its own vans and
small trucks was also increasing with the rising costs for fuel. The company was forced to accept these
increased operating costs from the airlines and the trucking companies, even though federal regulations
limited how much Jet Airfreight could charge its customers for shipping. (continued)

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CHAPTER 10

Summary

Summary

Traditionally, the primary focus of organizational communication study has been on internal communication. However, there is another side to organizational commu-
nication that bridges organizations to the larger world: external organizational com-
munication. Such external activities include public relations, lobbying, marketing, and
advertising. Further, these activities involve a variety of other stakeholders, including
firms that supply raw materials to the organization, government agencies and profes-
sional associations that regulate organizational activities, consumer groups, competing
organizations, unions, and organizational partners. Communicating with all of these

This made it difficult for Jet Airfreight to compete with some of the larger airfreight companies who
operated their own airplane and trucking operations. The leadership at Jet Airfreight applied to the
federal transportation agency to increase the rates that it could charge its customers for shipping,
but the federal agency was reluctant to raise rates and increase expenses for struggling companies.
Shippers were also feeling the pinch of the tight economy and did not want to pay more for airfreight
services. The margin of profit for Jet Airfreight was rapidly shrinking, and their leadership was
considering declaring bankruptcy.

Critical Thinking Questions

1. What are the different internal and external communication activities being conducted at Jet
Airfreight? How effectively are these internal and external activities being coordinated?

2. Who are the key organizations (and individuals) within the interorganizational field with whom
Jet Airfreight has to coordinate activities and exchange information? What kinds of information
does the company need from these sources? How effective is the company at gathering relevant
information from these sources?

3. To whom in the relevant environment does Jet Airfreight need to provide information? What
kinds of information does the company need to provide to them? How effective is the company
at providing information and eliciting cooperation?

4. From an open systems theory perspective, identify multiple levels of organizing at Jet Airfreight.
What are the subsystems within the company? What organizations comprise the suprasystem?
Is Jet Airfreight able to maintain a homeostatic balance in relations with other organizations
within their suprasystem (interorganizational field)?

5. How well does Jet Airfreight transform organizational inputs into desired outputs? What could
be improved in this organization’s transformation processes?

6. How well does Jet Airfreight balance internal and external organizational communication
activities? What could be improved in balancing internal and external communication?

7. What strategies could be used by leaders from Jet Airfreight for building effective cooperative
relationships with representatives of their interorganizational field? Who should perform the
boundary-spanning organizational roles?

8. How well does Jet Airfreight use external communication activities such as marketing, public
relations, advertising, and advocacy? How could the company improve the use of these forms of
external organizational communication?

9. What lobbying activities could be used by Jet Airfreight to help address their increased operating
costs?

10. What communication strategies do you suggest the leadership at Jet Airfreight use to improve
profitability and efficiency of operations to resist going into bankruptcy?

Case Study (continued)

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CHAPTER 10Summary

constituencies requires good information gathering and the ability to craft messages using
smart strategies. In the realm of marketing and advertising, the “five Ps”—product, price,
place, promotion, and positioning—reflect the most common strategic concerns.

With advanced technologies, the small world phenomenon has moved these communica-
tion imperatives to a global scale. From a systems perspective, the boundaries for orga-
nizations have expanded to the entire planet, making all of these communication issues
more critical and more complex. Learning how to effectively span the various boundaries
among groups requires relationship development and meaningful training, along with
an abiding concern for the ethical dimensions of external organizational communication.

Discussion Questions

1. Are the organizations that are a part of your life better at internal communication
(communication within the organization) or external communication
(communication with the larger world)? How and why would you make that
determination?

2. Sometimes public relations, as a field of study, is viewed with some apprehension
and cynicism—after all, those in PR are often seen as “spin doctors” who
manipulate and twist the facts. However, how could public relations be defended
as a highly ethical aspect of organizational communication?

3. Corporate lobbyists, and those in public affairs in large organizations, are by
definition in the business of influencing the type of legislation that is passed
at the state and national levels. Do you believe that there are any ethical limits
to such influence efforts? For example, should corporate lobbyists be involved
with such issues as gay marriage or stem cell research if they have no direct
connection to their operation and corporate mission?

4. The “five Ps” are discussed in this chapter as a framework for doing marketing
and advertising. The last “P” involves positioning a product or service in a way
that makes it attractive to a specific segment of the marketplace. If you were the
head of marketing in a firm that made laptop computers, what might be three
different ways that you could position such a product?

5. With the proliferation of social media (such as Facebook) and websites (such as
Yahoo!), how do you suppose organizations now do their research differently? How
has “mining for data” become a different organizational activity in the last 20 years?

6. The Internet has also quite radically accelerated the pace at which information,
news, and rumors fly around the planet. Given instant messaging, 24-hour news
cycles, scores of different cable networks, and videos that can get 100,000 views on
YouTube in just a few hours, how can organizations attempt to stay on top of the
curve when there’s “breaking news” which deals with them and what they do?

7. It is argued in this chapter that “For interorganizational communication to be
ethical, organizational communicators have to strive to be honest.” Nonetheless,
can you think of situations—real or hypothetical—where complete honesty by an
organization might be considered unethical.

8. One could argue that organizations should be ethical in their dealings with
others simply because it is “the right thing to do”—but how might high ethical
standards also be financially profitable? Can an “ethical” organization benefit
economically by doing the right thing? If so, how and why?

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CHAPTER 10Summary

Key Terms

Advertising Involves the development
and implementation of creative communi-
cation strategies to promote organizational
products and services.

Advocacy advertising When organiza-
tions align themselves with important
social causes—such as health promotion,
environmental protection, and human
rights issues—to demonstrate ways
that the organization gives back to the
community.

Ethical organizational communica-
tion Governed by three covering prin-
ciples: honesty, equity, and avoiding harm.

External organizational communica-
tion Targets a varied group of external
constituents (including suppliers, buyers,
shareholders, community members, and so
on), and involves a broad range of interre-
lated organizational activities.

Externally accountable The extent to
which organizations live up to these cover-
ing principles for ethical organizational
communication.

Homeostatic balance A systems theory
concept suggesting that different system
components (subsystems that exist within
each level of the system) must coordinate
activities by using feedback loops (communi-
cation patterns between subsystems). These
feedback loops are used to coordinate the
exchange of information and materials
needed to achieve organizational goals.

Information-gathering activities Some-
times referred to as intelligence gathering,
research, or due-diligence functions. They
occur when boundary-spanning organiza-
tional actors use their interorganizational
connections to keep abreast of changes
within the environment that are relevant to
their organizations.

Information-giving activities Sometimes
referred to as publicity, lobbying, or sales
functions. They occur when boundary-
spanning organizational actors provide
strategic information to key representa-
tives of external organizations within the
environment to elicit support and coordi-
nation for their own organizations.

Interorganizational field Includes all the
organizations that are relevant to a particu-
lar organization.

Lobbying Activities that involve the
development of influential relationships
between organizations and relevant
policy makers, such as representatives
from legislative bodies, regulating agen-
cies, accrediting organizations, consumer
groups, media outlets, and government
organizations.

Market research A critical part of effective
marketing, this involves researching the
needs, attitudes, and preferences of key
audiences for organizational products and
services.

Marketing Developing communication
strategies for positioning organizational
products and services to meet audience
demands.

Marketing mix Popularly known as the 5
Ps (product, price, place, promotion, and posi-
tioning). This involves developing commu-
nication strategies to increase understand-
ing about organizational products, pricing
those products so they are attractive to key
audiences, placing messages about organi-
zational products and services on commu-
nication channels that will capture audience
attention, promoting products with motivat-
ing messages, and positioning products and
services as attractive options for audiences
within the marketplace of similar and com-
peting products and services.

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CHAPTER 10Summary

Open systems theory Stresses the impor-
tance of interorganizational communica-
tion by suggesting that organizations and
their environments have mutual influences
on each other.

Public relations An integral area of orga-
nizational communication, used to coor-
dinate interactions between organizations
and key audiences (publics). Sometimes
known as public affairs communication.

Relevant environment All the factors
external to the organization’s boundary
that have direct influences on the organiza-
tion and its members.

Strategic organizational communica-
tion External communication activities
grouped together within an organization,
sometimes along with internal organiza-
tional communication functions.

Systems hierarchy The interdependent
relationships between organizations shar-
ing similar environments. Every system
is composed of hierarchical levels of
organization that follow similar system
processes.

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Kre66464_10_ch10_p221-244.indd 244 11/3/11 2:45 PM

Communication in
Organizations

Gary L. Krebs
George Mason University

Bridgepoint Education, Inc.

Kre66464_00_fm_i-xviii.indd 1 11/3/11 2:40 PM

VP of Learning Resources: Beth Aguiar

Associate Vice President, Editor in Chief: Erik Evans

Sponsoring Editor: Steven Wainwright

Development Editor: Shannon Lemay Finn

Assistant Editor: Nick Devine

Editorial Assistant: Laura Wilson

Media Editor: Kim Purcell

Printing Services: Bordeau

x

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Cover Image: Digital Art/Corbis

ISBN 10: 1-9359664-6-4

ISBN 13: 978-1-9359664-6-3

Published by Bridgepoint Education, Inc., 13500 Evening Creek Drive North, Suite 600, San Diego, CA 92128.

Copyright © 2011, Bridgepoint Education, Inc.

All rights reserved.

GRANT OF PERMISSION TO PRINT: Bridgepoint Education Inc., the copyright owner of this material, hereby grants the holder

of this publication the right to print these materials for personal use. The holder of this material may print the materials

herein for personal use only. Any print, reprint, reproduction, or distribution of these materials for commercial use without

the express written consent of Bridgepoint Education Inc. constitutes a violation of the Copyright Law of the United States of

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www.bridgepointeducation.com I content.ashford.edu

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www.bridgepointeducation.com

content.ashford.edu

Contents

About the Author

xi

Acknowledgments x

iii

Preface x

v

Chapter 1
Introduction to the Process of
Organizational Communication 1

Introduction 2

1.1 Communication in Modern Organizational Life 3

1.2 Organizations and Organizing 4

1.3 Hierarchical Levels of Organizing 6
Levels of Communication Approach 7
Power Approach 7

1.4 Interdependence and Synergy In Organizational Life 8
Formal Communication: Downward Communication 9
Formal Communication: Upward Communication 10
Formal Communication: Horizontal Communication 11
Informal Communication 11
The Perceptive Organizational Communicator 13
The Relationally Competent Organizational Communicator 14
The Team-Building Organizational Communicator 15
The Culturally Sensitive Organizational Communicator 16
Strategic Leadership in Organizations 18
Strategic Use of Media and Technologies in Organizational Life 20
Strategic Organizational Development 22
Strategic External Organizational Communication 23

iii

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CONTENTS

Summary 25
Discussion Questions 26
Key Terms 26

Chapter 2
Human Communication Processes and Principles 29

Introduction 30

2.1 Human Communication Defined 31
What Are Messages? 31
What Are Meanings? 32
Encoding and Decoding 33

2.2 Key Principles of Human Communication 34
Principle 1: Communication Is a Process 34
Principle 2: Communication Is Irreversible 34
Principle 3: Communication Is Transactional 35
Principle 4: Communication Includes Both Content and Relationship
Dimensions 35

2.3 Verbal and Nonverbal Messages In Organizational Life 37
Verbal Communication Systems 38

Jargon 38
Denotative and Connotative Meanings 38
Overcoming Challenges 39
Semantics, Syntactics, and Pragmatics 39

Nonverbal Communication Systems 40
Paralinguistics 40
Oculesics 41
Kinesics 42
Proxemics 43
Artifactics 44
Tactilics 45
Chronemics 46

2.4 Coordinating Verbal and Nonverbal Communication 47

Summary 50
Discussion Questions 50
Key Terms 51

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CONTENTS

Chapter 3
Individual Factors in Organizational Communication 53

Introduction 54

3.1 Intrapersonal Communication and the Psychology of Self 55
Self-Image 55
Extroversion and Introversion 56
Our Psychological Set: Beliefs, Attitudes, and Values 57
Locus of Control and Self-Efficacy 60
Empathy 60
Emotional States 60
Making Use of Psychological Factors 61

3.2 The Selective Perception Process 63

Summary 68
Discussion Questions 68
Key Terms 69

Chapter 4
Relational Processes in Organizational Life 71

Introduction 72

4.1 The Complexities of Interpersonal Communication 73
The Centrality of the Dyad 74
The Implicit Contracts That Guide Interpersonal Relationships 76

4.2 Relationship Initiation, Development, and Maintenance 78
Relationship Initiation: Self-Disclosure and Reciprocity 78
Relationship Development and Maintenance 79
Complementary and Parallel Relationships 80

4.3 Key Relational Communication Skills 82
Active Listening 82
Self-Disclosure Skills 83
Affection, Control, and Inclusion 83

Affection 84
Control 84
Inclusion 85

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CONTENTS

Co-Orientation 87
Interpersonal Conflict Management Skills 87

Step 1: Focus on the Other Person’s Point of View 88
Step 2: Avoid the Hostility Trap and Stay Focused on the Issues at Hand 88
Step 3: Look for Commonalities between Your Perspectives 88

4.4 Ethical Relational Communication in Organizational Life 89

Summary 91
Discussion Questions 92
Key Terms 92

Chapter 5
Group Processes in Organizational Life 95

Introduction 96

5.1 Types of Groups in Organizations 97

5.2 Challenges to Working in Groups 97

5.3 The Value of Groups in Organizational Life 98
To Address Important, Complex, and Challenging Problems 98
To Promote Responsible and Ethical Decision Making 99
To Brainstorm 99

5.4 Groups as Social Systems: Systems Theory 101
Synergy and Nonsummativity 101
Hierarchy 102

5.5 Group Networks 103
Personal Networks 103
Leadership Roles 104
Support Roles 105

5.6 Building Effective Work Teams 105

5.7 Task and Maintenance Functions 107

5.8 Managing Group Conflict 110
Guidelines for Managing Group Conflict 110
Metacommunication 111

5.9 Decision Making in Groups 111

Summary 116
Discussion Questions 117
Key Terms 117

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CONTENTS

Chapter 6
Culture and Organizational Communication 121

Introduction 122

6.1 Organizational Culture 123
Strong Culture Organizations 123
Communicating Organizational Culture 126

6.2 Organizational Communication Across Cultures 128
Types of Cultural Identity 128
Cultural Norms 129

6.3 Cultural Variation and Organizational Communication 130
Cross-Cultural and Multicultural Approaches to Intercultural Communication 130

The Cross-Cultural Communication Approach 130
The Multicultural Communication Approach 132
Combining Approaches 132

Discovering Culture through Organizational Communication 134

6.4 Valuing Diversity to Promote Multicultural Synergy 135
The Cultural Ideologies Model 136

The Ideology of Cultural Segregation 136
The Ideology of Naïve Integration 137
The Ideology of Pluralistic Integration 137

Summary 140
Discussion Questions 140
Key Terms 141

Chapter 7
Effective Organizational Leadership 143

Introduction 144

7.1 Leadership and Communication 145
Natural-Born Leaders? 146
The Leadership Hierarchy 146
Vertical Communication Channels 148
Horizontal Communication Channels 149

7.2 Formal and Informal Leadership 149
The Grapevine 150
Conflicting Messages 151

7.3 Management versus Leadership 152

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CONTENTS

7.4 Leadership and Credibility 153
Expertise 153
Trustworthiness 154
Charisma 154

7.5 Verbal and Nonverbal Communication and Leadership 156

7.6 Key Models of Leadership 157
The Theory X and Theory Y Models of Leadership 158
The Leadership Styles Model 159
The Situational Model of Leadership 160
The Task and Relationship Models of Leadership 160
Therapeutic Communication and Leadership 163

Summary 166
Discussion Questions 167
Key Terms 167

Chapter 8
Organizational Media and Information Technologies 171

Introduction 172

8.1 Mediated Channels 173
Advantages of Mediated Channels 173
Disadvantages of Mediated Channels 174

8.2 Print and Text-Based Media 176
Encoding and Decoding 177
Time and Attention 178
Selective Perception 178
The Importance of Reading Skills 179
The Importance of Design and Message Testing 179
Improving Organizational Writing 181

8.3 Telephonic Media 182
Advantages to Telephonic Communication 182
Disadvantages to Telephonic Communication 182
Telephone Etiquette 183

8.4 Video-Based Media 184
Videoconferencing 184
The Effectiveness of Video Programs 185

8.5 Computer Media 185
Company Websites 186
Special Issues Related to Organizational Computing 186
Computer Etiquette and Security 188
Social Media 188

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CONTENTS

8.6 Mobile Media 189

8.7 Media Convergence 189

Summary 193
Discussion Questions 194
Key Terms 194

Chapter 9
Communication and Organizational Development 197

Introduction 198

9.1 Balancing Innovation and Stability in Organizational Life 199

9.2 Weick’s Model of Organizing and Organizational Adaptation 202
Rules and Communication Cycles 203
Requisite Variety 205
Communication Phases 205

Enactment Phase 206
Selection Phase 206
Retention Phase 207

Feedback Loops 207
Gathering Organizational Intelligence 209

9.3 Communication and the Process of Organizational Development 210
The Nature of Organizational Development 211
Organizational Reflexivity 211
Performance Gaps and Slack Resources 212
Being Proactive 213

9.4 Organizational Development and Organizational Effectiveness 213
Output Measures of Effectiveness 213
Process Measures of Effectiveness 214
Combining Productivity and Process 215

Summary 218
Discussion Questions 218
Key Terms 219

Chapter 10
Communicating within Interorganizational Fields 221

Introduction 222

10.1 The Interorganizational Field 223
Information-Gathering Activities 224
Information-Giving Activities 224

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CONTENTS

10.2 External Organizational Communication Activities 225
Public Relations 225
Lobbying 227
Marketing and Advertising 227

10.3 The Small-World Phenomenon 231

10.4 The Relevant Environment 231

10.5 The Interorganizational Field and Systems Hierarchy 233

10.6 Boundary-Spanning Activities 234

10.7 Relationship Development and Interorganizational Communication 236

10.8 Ethical Dimensions of External Organizational Communication 237

Summary 240
Discussion Questions 241
Key Terms 242

Glossary 245

Photo Credits 261

References 265

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About the Author

Gary L. Kreps is a University Distinguished Professor and Chair of the Department of
Communication at George Mason University. He teaches undergraduate and graduate
courses in communication research, health communication, organizational communica-
tion, consumer-provider health communication, health communication campaigns, and
E-health communication.

Dr. Kreps received his BA and his MA in Communication from the University of Colo-
rado, Boulder, and his PhD from the University of Southern California.

Dr. Kreps’s areas of expertise include health communication and promotion, informa-
tion dissemination, organizational communication, information technology, multicultural
relations, risk/crisis management, health informatics, and applied research methods.

He is the director of the Center for Health and Risk Communication, serves on the govern-
ing board of the Center for Social Science Research, and is a faculty affiliate of the National
Center for Biodefense and Infectious Diseases, the Center for Health Policy & Ethics, the
Center for the Study of International Medical Policies and Practices, the Climate Change
Communication Center, the Center for Consciousness & Transformation, and the Center
for Health Information Technology at George Mason.

Prior to his appointment at Mason, he served for five years as the founding chief of the
Health Communication and Informatics Research Branch at the National Cancer Institute
(NIH), where he planned, developed, and coordinated major new national research and
outreach initiatives concerning risk communication, health promotion, behavior change,
technology development, and information dissemination to promote effective cancer pre-
vention, screening, control, care, and survivorship. He has also served as the founding
dean of the School of Communication at Hofstra University in New York, executive direc-
tor of the Greenspun School of Communication at UNLV, and in faculty and administra-
tive roles at Northern Illinois, Rutgers, Indiana, and Purdue Universities.

His published work includes more than 350 books, articles, and monographs concerning
the applications of communication knowledge in society.

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Acknowledgments

The publisher would like to thank the many reviewers who provided helpful feedback
on the manuscript. Also, we would like to especially thank Mark Braun of Augustana
College and David Lapakko of Augsburg College for their editorial assistance including
writing the Organizations in Action boxes.

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Preface

This text provides a comprehensive review and analysis of the multifaceted roles per-
formed by communication in modern organizational life. It takes a strongly applied focus
on specific communication roles, processes, and policies that can inform organizational
practices and promote desired individual and organizational outcomes.

Case studies appear at the end of each chapter that provide the reader with an opportu-
nity to see chapter concepts in action. These case studies examine communication con-
cepts in organizations from a wide variety of fields including accounting, real estate,
software development, higher education, student groups, community organizations, and
even the National Football League. In addition, each chapter includes Organizations in
Action boxes that highlight businesses, agencies, and other organizations such as NASA,
BP, Apple, Costco, Twitter, and others.

Outline

Chapter 1: Introduction to the Process of Organizational Communication

This chapter examines the powerful roles that communication performs in modern orga-
nizational life. It describes the complexities of organizational communication processes
and the need for strategic communication to build efficient, effective, adaptive, and ethical
organizational environments.

Chapter 2: Human Communication Processes and Principles

This chapter describes the key elements, processes, and channels for organizational com-
munication. Basic interdependent hierarchical levels of organizational communication
are delineated, including intrapersonal communication, interpersonal communication,
group communication, multi-group communication, and interorganizational communi-
cation. The chapter explores the coordinated use of verbal and nonverbal communication
as a critical component of communication competence. The chapter also examines coordi-
nated use of multiple communication channels from face-to-face interaction to computer-
mediated communication.

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PREFACE

Chapter 3: Individual Factors in Organizational Communication

This chapter explores the key individual, intrapersonal, psychological, and personal-
ity factors organizational participants bring to organizational life and that influence
organizational communication. Self-image is examined as a critical individual factor
that influences organizational communication. The process of selective perceptionis
examined to elucidate the idiosyncratic ways that individuals perceive organizational
phenomena. The individual processes of encoding (creating messages) and decoding
(interpreting messages) are examined to illustrate the idiosyncratic aspects of human
communication.

Chapter 4: Relational Processes in Organizational Life

This chapter focuses on the centrality of interpersonal relationships and relationship
development as the basic building blocks in establishing effective, cooperative, and ethi-
cal organizations. The process of relationship initiation, development, and maintenance is
explored. Strategies for developing effective listening skills as well as giving and receiving
feedback will be described. Key relational communication topics such as self-disclosure,
adaption, co-orientation, relational balance, reciprocity, and conflict managementare be
explored.

Chapter 5: Group Processes in Organizational Life

This chapter examines the ubiquitous nature of group work in organizational life. The
many complexities of and challenges to working effectively in groups within organiza-
tions are described. Team building and teamwork are carefully examined, particularly
within the context of group decision making. The emergence and evolution of unique
group roles is explored within the context of personal, professional, and social networks.
Group processes and roles needed for making good group decisions and reaching impor-
tant organizational outcomes are explored.

Chapter 6: Culture and Organizational Communication

This chapter examines the pervasive influences of culture on communication in organi-
zations. The growing diversity of organizational life and the need for harmonious inter-
cultural relations is explored. The complexity of cultural variation will be explicated to
identify the many levels of culture that influence expectations and activities. National,
ethnic, racial, religious, socioeconomic, geographic, age-based, and gender-based cul-
tural influences on organizing will be explored. The communication factors that can be
used to help establish effective communication climates and organizational cultures are
described. Communication strategies for enhancing organizational cultures to promote
cooperation and satisfaction in organizational life are described.

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CONTENTS

Chapter 7: Effective Organizational Leadership

This chapter provides a careful examination of the development of effective organizational
leadership skills. Differences between management and leadership skills are explored.
Key models for leadership emergence and strategy are described, including the impor-
tance of developing situational leadership skills for meeting the unique and changing
demands of organizational life. Formal and informal leadership are described as factors
within formal and informal organizational communication systems. Strategies are given
for helping leaders coordinate formal and informal communication systems, including
responding to rumors and the grapevine.

Chapter 8: Organizational Media and Information Technologies

This chapter examines the growing dependence on a broad range of traditional and new
communication media and technologies in modern organizational life. Relative strengths
and deficits of using different communication channels and media are described to help
students make informed decisions about how best to use communication tools to achieve
organizational goals. Strategies for coordinating the use of traditional communication
with newer digital, mobile, and social media are provided. Strategies for building techno-
logically adaptive organizations that are prepared for the development and introduction
of new communication media, technologies, and software are described.

Chapter 9: Communication and Organizational Development

This chapter will examine the importance of using organizational communication pro-
cesses to evaluate organizational performances and direct organizational renewal. The
use of strategic feedback mechanisms to identify deficits and emerging problems in orga-
nizing processes will be described. The process of ongoing organizational development
will be described as a strategy for adapting to emerging organizational constraints and
enhancing organizational processes and policies. Communication intervention strategies,
including introduction of new training programs, internal public relations efforts, job
redesign, reinvention, restructuring, and consolidation are examined as unique opportu-
nities for improving organizational performance.

Chapter 10: Communicating within Interorganizational Fields

This chapter examines the importance of coordinating organizing activities with other
relevant organizations within the larger interorganizational field. Typical constituent
members of interorganizational fields are described, including supplying organizations,
regulating organizations, competing organizations, as well as organizational customers
and other stakeholders. Strategies for establishing effective cooperative relationships with
representatives of these interdependent organizations are examined.

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