Taking a Look at te Excellence Theory

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The Excellence Theory is a public relations theory that “specifies how public relations makes organizations more effective, how it is organized and managed when it contributes most to organizational effectiveness, the conditions in organisations and their environments that make organizations more effective, and how the monetary value of public relations can be determined” (L. Grunig, J Grunig & Dodier, 2002). The theory resulted from a study about the best practice in public relations, which was headed by James E. Grunig and funded by the Foundation of the International Association of Business Communicators (IABC) in 1985.
The theory explains that the value of public relations in organization and society lies in socially responsible managerial decisions and quality organization to public relations. Organisations must behave in ways that solve the problems and satisfy the goals of the stakeholders as well as the management in order to be effective. Good relationship with organisation’s strategic publics is helpful in developing and achieving goals desired by both the organization and its publics, reducing costs of negative publicity, and increasing revenue by providing products and services needed by stakeholders. Practitioners identify publics who are affected by or affect organizational decisions and communicate symmetrically with them to build high quality long term relations.
Principles of Excellence theory
The IABC team concluded that organizations are effective when

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