The Importance of Institutional Communication in the New Knowledge Economy

Abstract

Institutional communication can be defined as the synthetic expression of opinions, means, interactions and goals that animate the social actors at a certain time. It is called to serve the interests of the institutions and the community in general. The communicational report made between the individual-institution-society changes constantly. Its dynamism is due not only to the flexibility of communication objectives, methods and strategies used, but also to psychosocial changes manifested by the social actors in relation to the degree ofperception and resolution of complex problems they face in everyday life. Therefore, the communication process is subject to constant institutional adjustment. Therefore, institutional communication works based on a system of rules and norms involved in the regulation of different types of situations. This does not mean that it must necessarily be compatible with others, it can act independently.

Headnote

Abstract

Institutional communication can be defined as the synthetic expression of opinions, means, interactions and goals that animate the social actors at a certain time. It is called to serve the interests of the institutions and the community in general. The communicational report made between the individual-institution-society changes constantly. Its dynamism is due not only to the flexibility of communication objectives, methods and strategies used, but also to psychosocial changes manifested by the social actors in relation to the degree ofperception and resolution of complex problems they face in everyday life. Therefore, the communication process is subject to constant institutional adjustment. Therefore, institutional communication works based on a system of rules and norms involved in the regulation of different types of situations. This does not mean that it must necessarily be compatible with others, it can act independently.

Keywords: institutional communication, new economy, the knowledge economy, innovation

JEL Classification: D83

In this communication framework created by the "behavioral source", the institutional communication is responsible for stabilizing the human behavior. Whether it is about institutional communication or the one between individuals and the community (represented by government institutions), there is a reduction of the uncertainty of arising situations, while decreasing cost of actions and social interactions and finding compromise solutions in the fight between the government-employers and unions. The identification of specific situations (e.g. labor disputes in a particular sector of activity), grouping these circumstances according to their gravity and their similarity to be resolved later, it is another responsibility of institutional communication.

There are two important factors that determine changes taking place in society, thus making the transition from industrial-type economy to knowledge economy: technological and scientific revolution and globalization process.

Human society has gradually shifted focus from manufacturing type production to the autonomous one, from individual knowledge to the group knowledge, thus emphasizing the importance of communication.

The IT&C development determines the increase of communication between people, developing new types of business (electronic commerce), the development of online information centers, etc. Electronic commerce is actually the true impact of the informational revolution. The emergence of the Internet as primary means of distribution of goods, services, employment is a phenomenon which profoundly changes the economic systems [Peter Drucker, 2004].

The society has gradually become alert to the existing problems and the availability of information makes individuals to be able to get informed and express themselves much easier.

Globalization besides the advantage of uniting big companies in national corporations, also means the labor force mobility, which means that people with higher education will be able to work where they are needed, not being geographically constrained. Therefore, to become a good specialist, a person needs more and more years of preparation [Hristache Diana Andreia et al, 2010].

Knowledge has become such an important resource because there are many factors that have caused this, among the most important factors are: progress registered in IT&C, increase of the speed of development in new technologies, global competition, liberalization of markets, continuous change of demand due to an increase in the weight of people with middle and high incomes, increasing importance of quality of life.

The main pillars that the knowledge economy is based upon are: technological innovations and research and development expenses, learning from practice and dissemination of knowledge, capital accumulation, improving education and professional training. Knowledge is information with meaning and operating information. Knowledge is like the light, devoid of weight, intangible, can easily travel the world, enlightening the lives of people everywhere. Any new knowledge contributes to a proper interpretation of the world and economically any commercial transaction informs the market.

Globalization involves many changes in the economy, communication, in all areas of personal and organizational life, among them, the most essential would be the processes of cultural convergence and diversification.

On the one hand there is a universalization of cultural elements (such as language, communication channels), of values, of successful solutions (companies, ideas). On the other hand, there is an adaptation of the companies to elements specific to local or national cultures, which creates an interesting diversification within multinational companies.

In order to withstand such a competitive environment the organizations must be efficient, to have competitive advantages. This performance requires efficiency and strategic approach.

Differentiation from other competitors is an essential element of the strategy of organizations, which requires careful analysis of requirements, preferences, and needs of beneficiaries. It may be related to their taste, the appearance and function of the products, or may be linked to the image, marketing strategy or their price. The most effective forms of differentiation are the ones difficult to imitate by competitors [Iacob Silvia-Elena, 2015].

"Specifically, what implies for a modern organization the adjustment to the globalized economy:

1. Presence, visibility in the global economy, even for a local or regional organization. This output "in the world" of local or national companies forces them to make "prom dresses" website, English version (and/or other language of international circulation) of everything transmitted publicly, greater efforts to build solid brands and positive image, greater transparency etc.;

2. Competitive prices and high and adjusted quality;

3. Engineering, efficiency and productivity. They essentially determined prices; companies can no longer afford to produce expensively in their own country or to buy components from traditional suppliers that the competitors produce cheaper in markets like China and India;

4. At equal level of technological development, creativity is what makes the difference. Creative approach to technical problems but also the managerial ones can be a decisive competitive advantage;

5. Quality human resources, stable and appropriate to the context become a necessity especially for decision-making positions in multinational companies. Multiculturalism changes everything in terms of human resources, changes the internal training topics and management and marketing approaches;

6. Considering cultural factors as an essential element of organizational strategies becomes a necessity. Cultures and environments become competitors, not only the organizations within them. American, Japanese, European, Chinese or Indian cultures enter in competition and adapt to new contexts to be more effective;

7. The vision and the strategy on the long term facilitate the anticipation and prevention of environmental threats;

8. Reporting to global competitors;

9. Alliances with partners in related fields are often extremely beneficial. For example, common advertising of some products of different companies;

10. Information and especially research are almost unlimited sources of ideas and power." [Marin Preda, 2006].

Expanding global communication in developed countries has led to a spectacular advancement in the field of inter-institutional and inter-personal relations, with strong positive repercussions on the living standards of the population of these countries.

Global communication involves studying and creating new working structures, designed to adapt to changes in reality. The new work structures aim at creating and developing advertising, design, direct marketing and public relations agencies.

Today we talk about the development of a new profession, namely: the global communications specialist who is called to solve the many organizational, economic and financial situations within any company or institution.

The communicational space is created and develops according to the specific public domain it is manifested in. The progress of human community thus induces its institutional development, the need to create the proper communication frame with the public opinion. Thereby is created a new segment of communication science: public communication. "Public communication refers to the use of increasingly more visible and organized means of advertising and public relations by state administrations" [ Bernard Miège, 2000].

Adapting the general scheme of the communication process to the specific conduct of public communication we highlight the following key components of the process, namely: administration, message, audience, channels of communication, communication effects, noise and feed-back.

Using public communication strategies, an administration tries to find out what the public options are, but also to evaluate the image of the administration in the eyes of the public. Thereby, any administration will be interested in the manner in which the image is promoted and perceived using especially, for communication, the mass-media. So, "... institutional communication is the one that ensures the anchoring of the administration, organization, in the economic and social everyday reality"[CJ.Bertrand, 2001].

Mass-media is presented as an amplifier core of information submitted by the administration. Good communication with the media is always important to streamline the information flow of communication both within and especially outside the organization. Public information will be made usually in two steps:

a) providing information you want to convey to the target audience (the respective media);

b) responding to questions that may arise regarding the communicated message.

Public information of the media will be achieved by providing press releases for mass media and specialized media, both print and electronic. Thereby, through the prepared materials about the institution, such as newsletters, brochures, flyers with technical data, television and radio commercials, presentation of slides and even movies, its image will be enriched.

Public communication is directed towards what we call public, because the actions of the latter may impact on the organization or administrations and vice versa.

We must make a specification. "Public" is not synonymous with "audience". The term "public" means, in traditional terms, any individual or group that has to do with the organization that issues the communicational message. The audience includes: the organization's employees, customers, competitors, competing institutions and government agencies with regulatory role. Therefore we can say that the public and organizations are independent.

Unlike the term called generic "public", the one of "audience" suggests a group of individuals who are the recipients and consumers of a communicational message.

The audience is divided into two categories: internal and external public [C.J.Bertrand, 2001].

* "Internal public" is used in the practice of institutional communication to designate the employees of organizations and their management, as well as their investors.

* In the category of "external public" are: the community, the government, international public and often even the mass-media.

For the "internal public" (high and medium level management: personnel and employees, trade unions and non-union organizations, executives), the channels of communication used mainly are:

- personal contacts;

- audiovisual - specialized media: films, slides, reports, closed circuit television, computer networks or intranets;

- publications: books, magazines, newspapers, newsletters;

- direct mailing;

- display;

- Fax, CD-ROM, web pages

Externally, institutional communication aims at two audiences: the direct public and indirect public.

For the "live audience", external institutional communication aims mainly marketing communication. It addresses in particular: business customers, salespeople, traders, distributors, suppliers and competitors. For "indirect public" is ensured what we call institutional communication. It is oriented to potential customers and investors, the financial community, institutional community, government and the community oriented towards the environmental problems.

Communication channels used:

* personal contacts

* audiovisual - films, slides, slides;

* mass and specialized advertising - institutional and commercial advertisements;

* direct mailing - custom, institutionalized or promotions;

* exposures to specific visual elements - mass media or specialized communication means - product packaging, graphics, promotions at points of sale;

* CD-ROMs, Fax and Internet.

The three communication cores previously evidenced come to create what we call "institutional image" because every organization has an image. The only problem is if they have the desired image in reality or, just as well, as a fantasy.

Organizations must continually adopt responsible behavior, thereby creating a reliable capital. Facts matter more than empty talk to the public and in terms of a crisis outbreak responsible the testimony of responsible deeds will help the company overcome the situation. This is very important since in crisis situations, in addition to barriers faced in the normal communication process, also appear specific characteristics of the crisis situation that hampers coherent development of the communication process. Here we recall the decisions to be taken quickly under the pressure of time and permanent consequences of the situation, informational blockages, need for immediate and close feedback.

In conclusion, living in a world where power is equivalent to information, organizations must be open, must be dynamic in the context of reception and transmission of information, because only then will they be able to adapt to the environment, which is continuously changing. In this context the management of risk situations has the role to foresee a possible crisis, and if the risky situation persists degenerating into a crisis, the crisis communication makes it possible to change the perception of the identity of an organization, institution or public figures.

Sidebar

Motto:

"In the knowledge society the only skill that does not get old is the ability to learn" -Michael Gibbons

References

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