“Public Relations is Both an Art and Science “and Should be a Management Function By AB Deevado - Andrew Bishop Mkandawire

One can think PR is intangible as some have tried to argue that Human Resources function is intangible hence not necessary to be part of the organizations department functions. But there is proof that shows that Public Relations is an art because it accommodates creativity and innovations and its programs originates from a scratch to suit the problem and is science because it uses scientific means of solving business problems like research, studies human thinking and behavior based on choices and standards of morality and practice and strives to meet the institutions and publics interest. 

Public relations which can be defined as the ‘art and social science of analyzing trends, predicting their consequences, counseling organization leaders, and implementing planned programs of action which will serve both the organization’s and the public interest,’ (Jefkins 1995, p. 08), accommodates creativity of its practitioners. This creativity originates from identifying a problem to planning a PR program. 

For example, a PR practitioner can be flexible and innovative to manage a PR program by making use of limited resources. (Jefkins 1998, pp. 39) argues that ‘there are four reasons for planning a PR program a) To set targets for PR operations-against which results can be assessed, b) To estimate the working hours and other costs involved, c) To select priorities which will control (1) the number and (2) the timing of different operations in the program, and d) To decide the feasibility of carrying out the declared objectives according to the availability of (1) sufficient staff of the right caliber; (2) physical equipment such as office machines, cameras or vehicles; and (3) an adequate budget.’ 

 A properly managed program will trigger insights of where to improve hence innovation to even design a better model for managing a particular PR program. According to (Pearce and Robinson 2007, pp. 402) ‘innovation is the initials commercialization of invention by producing and selling a new product, service, or process.’ 

PR is an art because it builds its communication frame work from a scratch to make it informative, comprehensible and memorable. For example a PR department will have graphic designer and Video editor and producer whose duty will be to come up with ideas and then turn them into a visual picture where the PR can place text to make the graphic have complete meaning. The video editor and producer will also turn the shooting script into a documentary of for example of how pregnant rural women are struggling to seek maternal health care.

The preparation of the shooting and editing script, the writing of news releases, and the presentation of PR messages to the public via the media, all derive from the duty and power of art in PR at most to enrich personnel with compositions of different forms of communication. Brochures, Newsletters, House Journals, etc, are sources of art in PR practice. Public relations is also a science. This is because it uses scientific means of solving business problems like research. 

Research in public relations belongs to the faculties of social sciences and economics and commerce. For example the organization failure to market its products/services may cause the business to partner with internal or external PR consultants to help find the cause of the problem and possible solutions to it through a joint venture called Marketing-Public Relations. This according to (Belch and Belch 2004, pp. 566) ‘is referred to public relations activities designed to support marketing objectives as marketing public relations (MPR) functions. 

The marketing objectives that may be aided by PR activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance. MPR ads value to the integrated marketing program in a number of ways: building market excitement before media advertising breaks; creating advertising news where there is no product news; introducing a product with little or no advertising; providing value-added customer service; building brand-to-customer bonds; influencing influential’s; and defending products at risk and giving consumers a reason to buy.’ 

 And for research work to succeed publics' thinking or choices and observations have to be considered. And at this situation to know the publics' interest data collection techniques like interviews, questionnaires and observations will best generate valid and reliable information necessary for management corporate strategy formulation to reposition the marketing successes of the business. 

When the business and its public respond mutually to their interests both parties have to benefit and enjoy successes. ‘This model of PR is called the Two-Way Symmetric Model represents a public relations orientation in which organizations and their publics adjust to each other. It focuses on mutual understanding and two-way communication rather than one-way persuasion,’ (Odedele 2008, pp. 15).

The science approach also comes because of ethical consideration in PR practice. Institute of Public Relations Code of Ethics borrows moral and ethical theories from respective social scientist philosophers like German Emanuel Kant (Deontologism), English Stuart Hobbes (Consequentalism) just to mention a few. For example, (1) in Conduct towards the practice of PR, ‘A member shall not: 1.4 Engage in any practice nor be seen to conduct him or her self in any manner detrimental to the reputation of the Institute or the reputation and interests of the public relations profession,’ (Jefkins 1998, pp. 130), this then ensures that PR practitioners cannot provide deceptive information to the public nor mislead or harm them through any means of communication. They will be regarded to be personnel of high integrity and honest internally and externally. 

Therefore with this evidence that PR is both an art as well as a science Public Relations have to be a management function. This is true because public relations a strategic tool; It has publics that are corporate stakes; It manages communications programs across the organization like employee relations; It supports departmental functions like education, sponsorships, exhibitions, and export trading through marketing functions. PR is a strategic communication tool. ‘It supports corporate strategic communication programs like growth strategies.

One of the growth strategies is Market Development where it involves taking present products into fresh market and thus focusing activities on market opportunities and competitor situations,’ (Cole 1997, p. 71). This strategy best works in export trading in which PR functions include finding out the cultural aspects of the foreign countries the business intends to sell its products, lobbying of foreign government authorities to create awareness and acceptance to operate, identifying and understanding the political and economic environment like business formation laws, financial lending policies, exporting and importing policies, the judicial system, and its justice administration, the social aspects of the market whether too traditional (affected by their culture and religion) or too modern (ready to adopt new technologies). 

All these can be prepared in different communication programs like press conferences, exhibitions, documentary visuals, radio and TV interviews, press visits, etc. PR also creates a mutual understanding between the function of the organization and its publics. This means organization stakes like internal like employees, customers, and shareholders; coordinated like; financial lending institution, insurance companies, and government; and external competitors, customers/consumers, and suppliers can be maintained and considered through PR function. Such functions can be like answering their queries, educating them about the mission and vision of the organizations, and in some instances, PR function as a means of communicating the role of the business to the society (social responsibility aspect) and by providing ethical code of conduct of the business to respective stakeholders as part of good corporate image creation and maintenance. 

PR manages communications programs across the organization like employee relations. This is merely a means of repelling the gap that could be created due to unnecessary bureaucracy within the chain of command and span of control in the organizational structure. PR ensures that employees find it easy of communicating personal and business issues to their bosses without delays or blocks. It also tries to interpret the goals, missions, and visions of the organization to the employees who may be threatened if the goals seem difficult. 

The PR department also creates proper means of ensuring that new employees are provided with induction literature (information of the organization premise, organization structure, assets of the organization, successes, challenges, etc) to prepare them for their respective works. In large corporations or manufacturing companies in-house closed-circuit TV, staff conferences, ideas box, speak-up schemes, shop-floor talks, organization visits, etc, all make employees work as a team and increase the level of trust in their managers through interaction, participation, and involvement. It supports departmental functions like education, sponsorships, exhibitions, and export trading through marketing functions. Although many business institutions in developing countries put PR as a supplementary function to marketing, it is only a means of blocking the functionality of the profession. PR does not only support Marketing, it supports human resources, financial management (lobbying financial lenders), production management (liaising with suppliers of raw materials for a sustainable relationship), etc. 

But with marketing, PR supports a number of issues like educating the market before the product or service is delivered, presiding over sponsorships activities both aimed at positioning the image, selling, or typically philanthropic. It uses different programs like exhibitions which aim at displaying the product, selling the product, creating and enhancing customer interaction between the organization and existing and potential stakes like customers, government, financial lending institutions, etc. 

 For example, Toyota Malawi likes to communicate to its stakeholders about the organization and its products through exhibitions. Almost every new car before heavy advertising is carried out, exhibitions are conducted to educate the market and answer customer queries while maximizing the mutual understanding of the business and its customers. Therefore looking at the functions of the PR, it is true that PR is an art as well as science and therefore it has to be incorporated into the business top management as a separate department. 

REFERENCES 

Belch, GE & Belch, MA 2004, Adverting and promotion, 6th edn, McGraw Hill, Washington. 

Cole, GA 1997, Strategic management, 2nd edn, Thomson, London. Jefkins, F 1995, Public relations techniques, 2nd edn, Butterworth-Heinemann, Boston. 

 Jefkins, F 1998, Public relations frameworks, 5th edition, Pearson Education, Harlow. 

Odedele, S 2008, Public relations and communication management in Africa, Petros-Faith Public Relations Consult, Lagos. 

 Pearce, JA & Robinson, RB 2007, Strategic management-formulation, implementation and control, 10th edn, Mc Graw Hill, Kuala Lumpur.

You can suggest any other PR topic to be discussed. Leave a comment.

2024-2029 Imprisoned Leaders For Malaŵi Prosperity

AUTHOR: ANDREW BISHOP MKANDAWIRE (AB DEEVADO) OCCUPATION: CENTRE COORDINATOR FOR MALAWI INSTITUTE OF JOURNALISM LILONGWE CONTACTS: P. O. Box 2847 / +265 0888 11 36 23 / abdeevado@gmail.com DATE PUBLISHED: 11TH MARCH, 2016 2024-2029 IMPRISONED LEADERS FOR MALAŴI PROSPERITY

 If there is no shelter today, somebody yesterday could not have planted a tree or somebody today could have wanton all down. The babies of 1980s to 1990s must have learnt that their fathers, grandfathers and great grandfathers could have wasted a lot of investment opportunities between 1985 and 2005 which has created a shrouded womb to breed more consumers and destroyers than investors and constructors of economy. This essay will discuss 15 elements arranged chronologically into System perfection, Industrial investment, and Attitude change, that 1980’s once babies, afflicted with loss of economic opportunities, have in stock for Malaŵi prosperity from 2014-2029. 

Firstly, system perfection, change of current unitary government system which has proven to breed corruption; suppress industry invention and innovations, accommodation of right professional players, promotion of foolish democracy, and investment of taxpayer’s money which fails to produce results that can be felt by a common citizen to improve the daily poor living standards like poor health and education facilities. Making intelligent use of available resources guarantees bigger investments in greater resources. The new government system which would make wise and prudent long felt dreams come true will have to give regional resource implementation and control, will have to erase limitation in resource allocations, will have to invest in people than consume citizen entitled opportunities, and will have to give governance and administration powers to the professionals to implement policies that will aim at expanding civil and private services investment opportunities to citizens. This will limit dull and incompetent presidents to deny, delay or dismount excellent strategies and projects that will maximize benefits to a voiceless citizen as currently, the success of Malaŵi is dependent on one mind and mandate. 

Secondly, citizens in Malaŵi both at national governance and national governed level need to know the Malaŵi self-rule philosophy and prophecy especially successes that one would enjoy or failures that one would face accumulatively felt by the entire nation if it would not be followed and implemented to turn yesterday’s misfortune into a double today’s fortune. This would prepare every citizen to know what industries to boost, what education to concentrate on and what need to attend to. John Chilembwe rose in 1915, Hastings Kamuzu Banda rose 1964 (although he showed up in 1968). The relative gap is 53 years. This was the ignorance era. Kamuzu reigned from 1964 to 1994 with a relative gap of 30 years. This was the civilization era. Multiparty came in 1994 and by 2024 will have reigned for 30 years. This will be a radical era where new ways of expanding the needs of civilization economically, educationally, religiously, technologically, commercially among other factors that support human social development will enforce power holders to take a direction mandated by citizens or individuals who are able to lead the way for a brighter future. If citizens will have no assistance to notice this, nobody will identify ways to do away with poverty. 

Thirdly, one secret of successful families involved in entrepreneurial activities is passing of family and business culture and objectives to the next generation to sustain success. People who share the same goal work towards a common direction which attracts many contributors. Such families or enterprises generate a dominant vision that is felt and supported by all family members. Malaŵi as a nation needs to have strategic plans, achievable within specific time frames that accommodate the needs and solutions of the majority of Malaŵians which have to be communicated to all citizens. When Malaŵi will have the national objectives and goals accepted and communicated to all citizens, where all citizens will be allowed to contribute directly or indirectly, lateral economic factors will be achieved. These will include the establishment of legitimate governance and administration succession plan, breeding of disciplined personalities in leadership and administrative portfolios, discouraging corruption, focused investments, and successful linkage of old and young civil service and private sector managers.

Fourthly, Malaŵi with the current retrogressive unitary government system composed of the Executive, Judiciary, and Legislature abuses the legislature where its failure to solve social and development decisions are little-noticed to emanate from its incompetence, but rather, political bulldoze. The legislature’s core business for the Malaŵi nation is to make laws. But in Malaŵi, it is used to make laws and deliberate development decisions and projects for all citizens in Malaŵi including allocation of national funds to different government departments, national budget. There are two major problems associated with the current legislature. It forms laws and decides implementable developmental projects; and is composed of underqualified people who cannot envisage the future consequences of laws made and do not have the capacity to scrutinize, analyze and generate vibrant economic decisions. To solve this, Malaŵi needs to split legislature into Malaŵi Parliament-MP (forming citizen and development-oriented laws) and Province Resource Investment and Control-PRIC (deciding, allocating resources, and implementing economic decisions that do well in particular regions to maximize unique investments and industry growth with a base of subsidies and competition). This will attract competent players who would produce more products and services with efficiency and effectiveness. 

Fifth, Laziness is one of the serious factors that make the majority poor and this makes few hard workers support the needs and wants of the majority of sluggard minds. Laziness is viewed in commitment to jobs and enterprises, commitment in bringing new ideas, and commitment in implementing good ideas like the green belt initiative, public reforms in the civil service. Social theorists like David McGregor noticed that majority of people like to maximize pleasure hence punishing them would force them to achieve job results, theory X. But others enjoy the job because they are informed about their responsibilities hence no need to punish them to perform, theory Y. Malaŵi seems it requires more of theory X to ensure all civil service workers produce desired results from the planned work. For example, ambassadors of Malaŵi to different countries could create markets for unique products from Malaŵi like legumes, fish, music, sports among others. This would expand the export base and bring foreign exchange while creating jobs for citizens. 

Sixth, Non-Governmental Organizations have a remarkable contribution towards alleviation of poverty to Malaŵi. These NGO’s who at most use foreign aid, have the liberty to decide where to work and when to produce results from their entrepreneurial activities harnessing charity work. Such liberty is even overstated with the absence of national objectives and goals. This opens a free-range lifestyle where same organizations with similar objectives would be seen achieving less percentage of results because of being scattered. Years now have passed but the same organizations are still working in the same areas as if they have just rolled out. To ensure that such NGOs achieve more results within a specific period, there is a need to come up with a deliberate policy that would introduce project concentration. This would arrange NGOs with common objectives to service a particular area for some time until problems are solved while empowering locals to gain independence. Later these NGOs would relocate to another area. This would produce more results than spreading the same resources where much is spent on administrative costs than ground projects. This would also enable government runs a sound budget, as areas that are already given attention by NGOs, would be given less attention to concentrate on areas that do not have support at all.

Seventh, educating more citizens even if the government cannot manage to offer employment is important because a graduate is one who is able to identify opportunities and able to generate solutions to how to exploit or use those opportunities to solve social-economic problems. A country with educated people endures economic problems with a successful plan and quickly generates sustainable solutions to problems felt individually or nationally. Citizen good decision making on economic and political choices is empowered with education. Malawians, therefore, have to get high education to deal with poverty. Such education has to come up with aggressive school syllabus onto industrialization and introduction of technical and master degrees.

Eighth, Independence of regional resource investment and control is one way of maximizing successful decentralization. Deliberately allowing regions to control their resources like land, mines, trade investments, tax collection, social services projects, export trade, infrastructure development among other investments that directly turn into economic indicators would provide competition among regions where innovative region would stand out alone without being stopped or barred by unproductive regions or individuals with tribal or political dominance. This therefore would also influence vibrant decentralization to Malaŵi which was empowered through the Structured Adjustment Program by the World Bank and International Monetary Fund IMF in 1994. 

Ninth, industry Investment, industrialization through unique export trade is a good venture which would immediately bring export strength and creation of a big international trade for Malaŵian produced-nurtured or created product and services. This venture would bring more comparative advantage in international trade while creating minor gaps of absolute advantage. This has the capacity to influence import substitution like textile, food, drinks, and metallic products among other replaceable products. Malaŵi has unique resources that would boost undoubted exports. She can invest in Iron smelting, cotton, coffee, Irish potato, and fish farming where Chambo among other unique fish species would open up job opportunities, revenue collection by individuals, and government adequate foreign exchange cover. This direction would expand industries and create more jobs where the current government has not more than 450, 000 employees against over 5 million skilled and qualified people who are able to work. Tenth, The rate of infrastructure growth against the rate of population growth is inappropriate. The infrastructure development which comprises road networks, industrial and residential housing, telecommunication, and power and energy bolster manufacturing and establishment of trade and education centers. A country that does not do well in infrastructure development does not expand industrialization and its economy shrinks or deflates. Malaŵi is still dependent on dominant road networks, social service facilities, and power and energy sources that were belt 20 or 30 years ago yet the population has grown from 7 Million to 16 Million since the 1990s. This cannot do away with poverty as transport for example is expensive for a vegetable farmer to transport produce to urban markets. 

 Eleventh, Religion has taken a destructive paradigm shift. It portrays that earthly things are not important yet people’s needs and wants as economics states are dependent on scarce resources every citizen has to work tirelessly to access the utility. Christianity and Islam are money-making entities that do not pay taxes. Taxing these entities would reverse the wrong attitude believers of these religions have on the need to work for scarce resources with aim of generating a strong economy contributed by everyone. Taxing these entities would also help government maximize revenue collection necessary to fund social services like security, health care, and education costs. 

Twelfth, Capitalization of outstanding well researched entrepreneurial ideas or start-ups that are profitable and that have low viscosity for growth have to be funded. In most developed countries like the UK, small and medium enterprises harbor a strong economy. Capitalizing Malaŵian SMEs would also expand the retail and wholesale entrepreneurship thereby encouraging manufacturing for domestic and export consumption. The funding of SME’s also has to be protected from government domestic borrowing which shifts the attention of commercial banks from investing in people to investing in government. Most successful small, medium and large enterprises are foreign-owned which come into being with big financial muscle. They exploit massive market opportunities because of adequate capital. 

Thirteenth, Technology is a must-win game for every country that dreams to do away with poverty. Malaŵi needs to entirely adopt technologies in manufacturing, trade transaction, communication systems, and product/service marketing. This would enrich the success of the marketing of local products and services. 

Fourteenth, Youth entrepreneurship and Investment in talent is a marginalized topic to most leaders in Malaŵi. Programs like Youth Enterprise and Development Fund, One Village One Product, and some allocation to Malaŵi Rural and Development Fund seem to target financing young people in different entrepreneurial activities but quickly became politicized and diverted program objectives and blocked rightful beneficiaries that would have introduced a revolving fund. There is no investment that stands to showcase any of the project's success.  

Fifteenth, attitude change support for Malaŵi positive philosophy by locals is a big gap that even displaces the right ideas to huddle support for local products and services. Value for foreign products and services forces an increase in imports and contraction of local manufacturing muscles. For example, the Malaŵi Trade Report 2010 showed that more than 7 Tons of Tomato got imported yet Limbe, Blantyre, Zomba, Lilongwe, Mzuzu, Kasungu, and other district councils markets throw rotten tomato every hour due to lack of bulk market. Such displaced minds to have value and ambition to achieve from the local endeavors has made most Malaŵians fail to balance the importance of managed small families that cannot exert pressure on scarce resources. The 2014 Youth Data Sheet for Malaŵi prepared by the Population Reference Bureau shows that if the current population of 16.5 Million is not controlled by 2040, there will be 48 Million, almost three times more against same road networks, public schools, health services, security service, jobs and other necessary but stunted resources. 

The essay 2024-2029 IMPRISONED LEADERS FOR MALAŴI PROSPERITY is sorely dependent on how many Malaŵians are able to see the current wastage of scarce resources by the poorest citizen in form of commodity money like land, animal and agro-(harvests) products, and precious stones and how much government is wasting billions of kwachas without noticing remarkable economic growth which would easily emit economic development. This extends to how often government offers influential positions to non-performers which shrink industry potentials for growth and extension to many miserable citizens. When these will converge with realization, wisdom, and vigor, the need for a revolutionary change will gain the ground which would bring what the wise and the prudent has envisaged for countable generations.

This was submitted to World Bank Competition but it was never short-listed...

The Legal and Economic aspects that are taking place in the banking sector have both positive and negative impact on the commercial banks, the general public and the government

By Andrew Bishop Mkandawire-Yr4 MC-Share World Open University Malawi

The Legal aspects are:

Commercial Bank Regulation;  

According to (Laws of Malawi 1989-(Part 11 (56) of Chapter 44:02) it is argued that the ‘Minister may, after consultation with the Bank, make regulations for the better carrying out of the objectives and purposes of this Act, or to give force or effect to its provisions, or for its better administration.

This shows that the regulation is more interested in success of the commercial banks.

Limited entry; to start up a commercial bank in Malawi, an investor can only enter the local banking market through merging and acquisition as recommended by the Reserve bank of Malawi through the Reserve Bank of Malawi Act.

According to (RBM 2008, p. 15), the legal stipulates of such conditions are

3.4.2 Merger A formal application by the merging banks/institutions addressed to the Governor of the RBM and signed by the Chairpersons and Managing Directors/Chief Executive Officers of each of the merging banks accompanied by the following:

 Proposed name of the successor bank (where a new entity will be formed). Resolution of each bank of the Boards and shareholders of the merging banks approving the merger. List of Directors, designation, curriculum vitae and interests they represent post merger.

List of significant shareholders of the existing banks, showing their physical/residential addresses, pre and post merger.

List of top management team of merging banks and their designations after merger.

Draft Memorandum and Articles of Association of the new bank or surviving bank (with proposed amendments if any).

Business Plan of the successor bank for the next 3-5 years showing how the integration process will be managed, future goals and operations, branch expansion, treatment of existing and surplus staff etc. 

3.4 Acquisition or Merger with an existing banking institution

Should a prospective investor opt to acquire or merge with an existing bank, the following

information will have to be submitted to the Reserve Bank of Malawi. Full details on mergers

and acquisitions are contained in the Guidelines on Mergers and Acquisitions document.

3.4.1 Acquisition A formal application by the acquiring institution/bank addressed to the Governor of the RBM and signed by the Chairman and Managing Director/Chief Executive Officer accompanied by the following:

A take over application stating clearly that the acquired bank(s) will cease to exist. An independent valuation/due diligence report on the bank to be acquired.

A sale agreement between shareholders of the acquired bank (seller) and acquiring institution (buyer) duly signed on a seal by both parties.

Memorandum and Articles of Association of the acquiring institution. Certificate of incorporation of the acquiring institution. Approval letters from banking regulator of the buyer (if a bank) confirming that the buyer has adequate resources to finance the transaction.

Board resolutions of the acquiring and acquired institutions approving the acquisition.

And the fact that the government of Malawi through the Reserve Bank of Malawi controls commercial bank entry into local market through merging and acquiring, it may be argued that it is how it can best measure or assess its performance eventually ensuring cheaper mode of market entry

Political threats; this usually happens when a ruling party just demand the commercial bank to deposit its moneys into the party’s account without repayment. The bank usually does cough such moneys in far of being stopped to operate.

This can be argued that it lowers commercial bank’s profitability.

Economic

Low Capital; banks in Malawi are issued license to start operation when they meet a minimum amount of total capital.

3.3.4 Assessment of Bank License Application. (RBM 2008, p. 14) argues that in assessing an application, the Reserve Bank takes into account all the above listed information as well as the requirements stipulated under Section 6 of the Banking Act. A banking license shall not be granted unless:

The proposed institution is incorporated as a company under the Company’s Act.

The proposed bank will be managed by at least two persons as executive officers, and,

The proposed institution demonstrates  that it will be adequately capitalized at all times and meets  the minimum start up capital  requirements of Malawi Kwacha equivalent of US$5.0 million for a bank, and US$1.5 million for a leasing company or discount house. Use of borrowed funds as start up capital to be invested is discouraged.

It can be argued that if currently there are 11 commercial banks there total minimum capital invested in the banking industry is MK13, 750, 000, 000 or MK13, 750 billion against 14.5 million people. This figure minus banks administration costs is small to serve the developing country which lack financial resource. For example, the MK13, 750 billion divided by the 14.5 million people, everyone would get MK948. 28 loan. It is therefore conspicuous that is why Malawian banks are found difficult to issue loans. It is not only the issue of collateral but they do not have enough money to invest. A better bank would rash to fund a profitable idea fully assessed to would bring more assets other than insisting on little assets already available for collateral. A developing country has more unbroken, unused and unsaturated business opportunities and markets.   

More GNP loss of local wealth; there is observation that although the number of banks look so attractive (11 banks), only New Building Society, Malawi Savings Bank and National Bank of Malawi provide wealth accumulation to the nation of Malawi as 70% of their ownership formality is Malawian. This means that Malawi loses wealth to 8 countries that own Ned, OIBM, Standard, Eco, International Commercial, Inde, FDH and FMB banks.

Low income generations of civil servants; many civil servants and the general public particularly that belong to the lower social class having more national population than the middle and upper social class do not use much of the banking service.  However it can be detected that it is because they receive little that cannot be spared for savings. This may reduce bank utility and bank industry growth. For example, in Malawi the minimum wage for workers is MK176 per day (MK5, 456. 00 a month) which some have called it a mockery to Malawians as (www.zodiakmalawi.com) argues that in the midst of the high cost of living the approved MK176 minimum wage for Malawian laborers is a mockery to them, the Center for Social Concern, a Social arm of the Catholic Church, has said in Mangochi. In contrast The International Labor Organization establishes minimum rates for able seamen.  From January 1st 2012 the minimum monthly wage for seafarers is 555US$ (MK138, 750.00 a month) US dollars, rising to 568 US dollars on January 1st 2013 and to 585 US dollars on December 31st 2013. Consolidated monthly wages, including overtime and annual paid leave, are 975 US dollars and will rise to 998 US dollars and 1,028 US dollars respectively (www.fedee.com).

The legal and economic issues discussed above have Impact in a positive and negative way.

For example, the positive impact may be that the two are enabling the baking sector help Malawians save and safely keeps their money thereby enhancing strategic use of finances. The two factors are also important in enabling local business professional find jobs in respective commercial banks.

The negative impacts are that the interest rates are high for people like middles and lower classes people. And the fact that banks are allowed to invest a minimum of not more than MK1.2 billion, they may realize little profit to grow the banking industry to meet the banking service currently high in rural areas. The same problems may affect the entrepreneurial growth. Many people may not access bank loans if banks may remain investing less. 

REFERENCES

Laws of Malawi (Part 11 (56)) 1989, Chapter 44: 02, Reserve Bank of Malawi Act, Office of President & Cabinet

RBM 2008, The Malawi Economy and Its Banking System, Reserve Bank of Malawi, Lilongwe

  

Federation of European Employers’ 2012, FedEE Review of minimum wage rates, viewed 27^th September, 2012, http://www.fedee.com/pay-job-evaluation/minimum-wage-rates/

Mababa, D 2012, ‘K176 Minimum Wage a Mockery to Malawians’, Zodiak Online, 19 March, p. 2, viewed 27^th September, 2012,   http://zodiakmalawi.com/zbs%20malawi/index.php?option=com_content&view=article&id=4622:k176-minimum-wage-a-mockery-to-malawians&catid=1:latest-news&Itemid=109

Why PR is Important in a Formal Organization-By Andrew Bishop Mkandawire (AB Deevado)-MC Yr 4-Share World Open University-BT Campus

Why PR is Important in a Formal Organization

By Andrew Bishop Mkandawire (AB Deevado)-MC Yr 4

4^th May, 2012 Share World Open University-BT Campus

(Names stated in this document are not real except that of the author. It was an assignment submitted to SOUM)

                                             

Abraham Wapona Kisebe Chief Executive Director of GT Detergents   Andrew Bishop Mkandawire Chief Executive Director of ADEEVA COMMUNICATIONS Ltd Co AC’s 2012/03/20-77 WHY PUBLIC RELATIONS IS ESSENTIAL TO AN ORGANIZATION AND WHY THE PR MANAGER SHOULD BE APPOINTED AS PART OF THE SENIOR MANAGEMENT TEAM

TO:

POSITION:

FROM:

POSITION:

RR#:

SUBJECT:             

Introduction

Public Relations is an integral stake of every organization that ensures that management has a strong back bone on which information and communication can be a tool to position the strength and the opportunity of the organization. This becomes possible because the PR functions work to build and maintain good relations with mutual understanding and benefit with the organization and its publics. 

This was reflected in a meeting that was held on 2^nd February, 2012 which was participated by GT Detergents and ADEEVA COMMUNICATONS (ACs) Ltd Executive Boards where it was appreciated that PR is a vital tool worthy to be part of the organization’s management setting and operations.

And here is the report by the ADEEVA COMMUNICATIONS Ltd, the hired communications consultant, that expresses why Public Relations is essential to an organization and why the PR manager should be appointed as part of the senior management team.

Terms of Reference

ADEEVA COMMUNICATIONS Ltd as a communications consultant was mandated by GT Detergents Executive Board to compile a report that will show how PR as a profession and a PR Manager can benefit the Detergent Manufacturer.

Procedure

To gather relevant data for the report to be comprehensive and professional with sole aim of proving out why PR is essential to the organization as well as why it is necessary to have an internal PR Manager that have to be appointed as part of senior management team, Books and Internet have been used. These books have reputable and accredited authors and publishers and the websites used are referred. These are indicated in inside referencing and at the end of the text or reference list.

Findings

The AC’s found that the following are necessary reasons why GT Detergent has to have the PR functions and an internal PR manager who has to be appointed in its senior management. The sections a, b and c illustrate this relevance of PR.

a)                  PR has many transferable benefits that are realized when it is used in an organization. These benefits make no sense when PR is absent. They are highly appreciated when PR is practically experienced in an organization setting. For example:

It create and sustainably maintain relationship with publics; this is true from the virtue of understanding the concept of PR where almost in every definition it is argued that this profession revolves around two key words Communication and Management which all aim at ensuring that mutual goodwill or understanding and probably benefit for a sustainable period of time is achieved. This means the organization stands close to its stake holders through information flow.

Three definitions from Jefkins, PRISA and Baran provide evidence of the above explanation. ‘PR is an art and social science of analyzing trends, predicting their consequences, counseling organization leaders, and implementing planned programs of action which will serve both the organization’s and the public interest’ (Jefkins 1995 p. 08); Public Relations is the management, through communication, of perceptions and strategic relationships between an organization and its internal and external stakeholders (www.saaci.co.za); and ‘PR is the is the management function that focuses on the relationships and communications that individuals and organizations have with other groups (called publics) for the purpose of creating mutual goodwill’, (Baran 2012 p. 308).   .

PR also helps to Manage Stakeholder Mapping. Stakeholder mapping is the effort of an organization that helps to identify active and non-active stake holders (those individual, groups and organizations that have interest in the operating business). Because PR keep communicating with these stakeholders, it becomes easier to identify those who are direct, connected and external stakeholders that an organization can communicate to effectively achieve its objectives through press conferences, press visits, lobbying just to mention a few. For example, external stakeholders like investors, financial lending institutions, just to mention a few institutions and customers, can easily be communicated and their needs and wants known through the Two-Way-Symmetrical Model.  (Odedele 2008) The Two-Way Symmetric model represents a public relations orientation in which organizations and their publics adjust to each other. It focuses on mutual understanding and two-way communication rather than one-way persuasion.

Usually it is the influence of stakeholder mapping that guides the need for Total Quality Management.  In this Communication internally and externally the organization becomes the major tool to carry the day, meaning to help business achieve its objectives and goals. The TQM concept is the is Holistic approach to long-term success that views continuous improvement in all aspects of an organization as a journey and not as a short-term destination. It aims to radically transform the organization through progressive changes in the attitudes, practices, structures, and systems. TQM transcends the 'product quality' approach, involves everyone in the organization, and encompasses its every function administration, communications, distribution, manufacturing, marketing, planning, training, (www.businessdictionary.com).

PR helps the business to reduce costs. Public Relations unlike advertising reach its publics with little cost and this stretches the organizations marketing function. For example, the PR messages mostly are treated in the media as news which are covered freely. Press Releases, Documentaries, Notices are some such forms. And sometimes the media can cover a function like a Trade Fair in form of exhibition about the new product at a cost of covering news of their media organizations. This money saved can help to fund marketing efforts and programs like research on identifying the new market.

PR functions saves money or minimizes costs with fact that it avoids litigations the business could commit and pay for damages and compensations. This becomes avoidable because PR advocates for ethical operation in business. Business Ethics can be defined as ‘a set of principles prescribing a behavior code that explains what is good and right or bad and wrong; it may even outline moral duty and obligations generally’, (Chryssides & Kaler 1993 p.51).

This becomes possible because business ethics are necessary to businesses as they enable the business operate in accordance to business stakeholder interest; helps the business meet quality standards within and outside the business; enables the business define good or bad operation of duty, task or project, leading to the formulation of code of ethics; guides the business to abide by business laws and policies of individuals, organizations and government; and conform with principles of economic structure and system available and ratified in a legalized market.

This further creates good image and reputation which increases PR messages from such an organization to be received by publics with high credibility which fasted reaction or response to the communication flow.

PR helps to avoid price competition. In short this means that before a product is offered to the market, consumers are communicated to base the understanding of the price the market can afford. This helps then to publicize or create awareness of the product price before it hits the market. This does not compete with any product or service price already or coming into the market. Through business research which helps to identify needs of the market, this research also helps to forecast the future of the business performance in terms or relations, sells, accessibility of raw materials just to mention a few factors. Forecasting can be argued that it is in strategic context, any attempt whether qualitative or quantitative, and usually based on past performance, to predict future outcomes and trends in the internal and external environments of an organization in order to limit the risks involved in devising and implementing a strategy (Cole 1997).

 PR helps and organization looks larger. Through media coverage that continuously keeps disseminating messages of the organization to the public, it maximizes publicity of the firm’s image. This attracts attention of the public and perception that is created represent that the organization is big in terms of operations and responsibility to the public. Mostly when the publicity is positive with good communication flow of productive and public interest news about on going or to be introduced events, the organization looks larger. For example, recent commotion on minority gay rights between the  civil society and the government, the Human Rights Consultative Committee showed up to be a larger organization because it was dominantly covered in the media to be on fore front advocating for legalization of gay rights.

b)                   Public Relations is essential to an organization because it has effective activities that enrich PR programming. These activities are:

1.      Government Relations; lobbying officials and government departments on legislation or fair policies in the industry the GT Detergents operating.

2.      Publicity; giving out information of what GT Detergents has or how it is involved in a activity done to the public via the available cost-effective medium

3.      Communication; a message central to getting instant feedback from audience on any activity done or to be done

4.      Employee Relations; usually to lessen the gap between employees and their immediate bosses through active interpersonal linkage within chain of command and span of control and enhancing their commitment and hard work through participation, involvement and hands-off where necessary and allowing their work environment flexible. This counsels management on vital matters affecting the organization.

5.      Public Affairs; creating a beneficial mutual understanding between community, government officials, civil society, pressure groups, etc. 

6.      Community Relations; making sense and considering those who are surrounding GT Detergents like residences, and all stakeholders within and outside Malawi.

7.      Minority Relations; recognizing the importance and right of defined minority groups like the old, children, disabled, etc

8.      Financial Public Relations; bridging good and successful talks between investors, banks, shareholders and owners of organization.

9.      Industry Relations; associations, unionism and organization corroborated work activities are more recognized to the public than solo. This is vital

10.  Press Agency; attracting and responding to public queries before they interrogate the organization, even ask about an issue publicly or privately known.

 

11.  Promotion; positioning an idea, activity or organization to make the public know, believe or adopt the idea like image of the organization

12.  Media Relations; treating media as a tool of disseminating communication messages

13.  Issue Management; moving public opinion on large scale to take supportive position of the organization

14.  Propaganda; injecting ideas with aim to get quick public reaction usually to support the concept given by the organization.

15.  Advertising; to attract audience with messages for them to own, possess or support the product or service with profitable exchange.

c) Finally, PR is both an art and science. There are many issues to be discussed here but the following two statements represent why PR is an art and science respectively.

PR is an art because it uses skills to select things like strategies, tactics, objectives, designs, messages, personnel, media, tactics and equipment to manage a certain program. For example, it builds its communication frame work from a scratch to make it informative, comprehensible and memorable. For example a PR department will have graphic designer and Video editor and producer whose duty will be to come up with ideas and then turn them into a visual picture where the PR can place text to make the graphic have complete meaning. The video editor and producer will also turn the shooting script into a documentary for example of how pregnant rural women are struggling to seek maternal health care. The preparation of the shooting and editing script, the writing of news releases and the presentation of PR messages to the public via the media, all derive from the duty and power of art in PR at most to enrich personnel with compositions of different forms of communication. Brochures, Newsletters, House Journals, etc, are sources of art in PR practice.

Public Relations is science because it plans, organizes, controls, implements and evaluates its programs which were implemented. These are managerial roles and functions. And usually evaluation is a scientific term that goes together with means of solving business problems like research. Research in public relations belongs to the faculties of social sciences and economics and commerce. For example the organization failure to market its products/services may cause the business to partner with internal or external PR consultants to help find the cause of the problem and possible solutions to it through a joint venture called Marketing-Public Relations. This according to (Belch and Belch 2004 p. 566) is referred to public relations activities designed to support marketing objectives as marketing public relations (MPR) functions. The marketing objectives that may be aided by PR activities include raising awareness, informing and educating, gaining understanding, building trust, giving consumers a reason to buy, and motivating consumer acceptance.  MPR ads value to the integrated marketing program in a number of ways: building market excitement before media advertising breaks; creating advertising news where there is no product news; introducing a product with little or no advertising; providing a value-added customer service; building a brand-to-customer  bonds; influencing influential’s; and defending products at risk and giving consumers a reason to buy.

Therefore we can prove that PR is vital to an organization. To prove this further, there are five major components that make the locomotion of business possible whether profitable or non-profitable. These are International Business/Marketing, Strategic Planning and Control, Financial Aspects of Business, Integrated (Marketing) Communication, and Case Study. This reflects that Communication in an organization is vital and inevitable for the organization to achieve its objectives and goals sustainably.  

For example, PR supports all features or departments in the organization including Marketing. In International Business therefore PR can help to position the organization and its products and services in a foreign country to create awareness and market education before the actual start up of the firm commences. This is the concept of PR Export Trade within Financial PRs. 

To a detergent manufacturer organization, such PR Export activities can help to identify news foreign markets thereby generating more foreign currency that can even help the government of Malawi through tax that it can support its social services. But at most this can give opportunity to extend efforts of expanding the business either locally or as a multinational organization. This in example can be achieved through execution of Ansoff Growth Strategies where Market Development, Product development, market Penetration and Diversification strategies can be completed.   

And for the business to be accurate in designing communication strategies to support business objectives and goals achievement, a professional PR Executive need to be employed and be appointed to the senior management of the business. This person is unique because: is a qualified professional on communication programming able to develop communication programs; can help strategizing and carry out communication programs; can help choice of media and techniques to be used; can forecast the consequences of a communication program; can control costs by scheduling cost effective communication techniques; and at most can counsel the management on how ethical, and legal communication should be conducted within and outside the organization.

For example, the internal flow of communication among employees can boost employee relations and commitment to job as team works and employee integrity can be motivated. This can lower levels of conflicts and whistle blowing. The latter according to (Weiss 2003, p. 246) ‘is the attempt of an employee or former employee of an organization to disclose what he or she believes to be wrong doing in or by the organization’; and (Chryssides & Kaler 1993, p.304) define whistle blowing as the ‘activity of ‘going public’ with pieces of information which are normally regarded confidential within the firm, but the disclosure of which is deemed to be in the best public interest’. 

Conclusion

Therefore it is conspicuous that PR affects the entire internal and external parts of the organization. And it has been shown that its functionality is sensitive to relations, perceptions and needs and wants. When these are well served among the publics, it gives the organization strength which generates the ability to control the market and the opposite leads to failure to control the market which leads to loss of market share. Further than this, PR enable the organization to forecast its future trends. This helps to prepare for success.

Recommendations

Therefore it can be argued that Communication and Management are Inclusively Inseparable. With this notion it is then necessary for an organization to have PR department and ITS professional Manager should be appointed to the senior management because these communications activities go together with strategy formulation, implementation and control. His presence will quicken accuracy and effectiveness because he will have the opportunity to propose, play roles of advising and counseling the senior management on better means of approaching communication activities and programs as some discussed in the FINDINGS.

Andrew Bishop Mkandawire

0888 11 36 23

Chief Executive Director of ADEEVA COMMUNICATIONS

REFERENCES

Baran, SJ 2002, Introduction to Mass Communication, 2^nd Edition, Boston: McGraw Hill

Belch, GE & Belch, MA 2004. Adverting and Promotion, 6^th edition, Washington, Mc Graw Hill

Chryssides, GD & Kaler, JH 1993, An Introduction to Business Ethics, London: Thompson

Cole, GA 1997, Strategic Management, 2^nd edition, London: Thomson

Jefkins, F 1995, Public Relations Techniques. 2^nd Edition, Boston: Butterworth-Heinemann

Odedele, S 2008, Public Relations and Communication Management in Africa, Lagos: Petros-Faith Public Relations Consult

Weiss, JW 2003, Business Ethics, 3^rd edition, Canada: Thomson

 ‘Business Dictionary’ 2012, Total Quality Management, Viewed 24^th March 2012, http://www.businessdictionary.com/definition/total-quality-management- TQM.html. [22/01/12]

‘Southern African Association for the Conference’ 2012, PRISA Public Relations Definition, Viewed 27^th February, 2012, http://www.saaci.co.za/content.asp?pageID=349

Which another PR topic you long to get discussed. Leave a comment.