CHAPTER 1

HISTORY OF PUBLIC RELATION:Public Relations as a term was first formally used by Thomas Jefferson in the year 1807 ,while drafting his seventh address to the congress delegates when he scratched out the words State Of Thought and wrote Public Relations instead. Informally Sir Walter Raleigh used it even earlier during the Land Rehabilitation Movement , while persuading people from different parts of America to settle in the rural parts of Virginia. This was the first organized effort to win and mobilize public opinion. In India , the term of course gained importance later through the Public Relations Society of India (PRSI) in 1958. Meaning And Introduction: Public Relations, commonly called as PR is an activity aimed at increasing common & understanding between an organization or individual & one or more groups called Publics. What Is Public? Public is a group of similar ideas, an assortment of persons having the same interests, problems, circumstances & goals. They vary in their forms & sizes they have a multitude of wants & desires. Each group has its own likes & dislikes. Group can be classified as:- Employees form a group/public, employers form another group, etc. Other members of the public can be dealers, wholesalers, investors, etc. Each of these group is a public & everyone tries to attract a district audience with its varied tools & techniques. A public may also be made up of a no. of individuals who are unorganized & hard to identify but who for widely varied reasons have a common interest in the matter at issue. Today, however, when modern means of common make vast number of people aware of controversial issues & common interests, publics tend to be large &impersonal. These publics involve people who are not known to each other & are widely distributed over the
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country, or even among a number of countries. The members of such public rarely meet each other face to face or have much direct communication. The impersonal but powerful publics are numerous in todays high complex society. But finally the public is any group of people who share common interest. Relations:It is the outcome of mutual understanding derived from the process of sharing of common interest where as relationship is the definite type of relation or interaction taking place between two individuals, group or departments. To understand any relationship, therefore it is necessary that one understands the wants of those involved. The term PR is also applied to the profession responsible for handling such assignments. Corporations, govt. agencies, politicians & entertainers are among these who use public relations. Their publics vary from employees & shareholders to an entire community or members of the news media. The communication between an organization & its public ranges a simple news release to a sophisticated campaign featuring films, ads speeches & television appearances. Such communication is aimed at gaining the goodwill of the public. The basis of any effective PR campaign is public benefit. If an organization does not serve the needs of public, the public will not support it. PR experts help an organization learn what the public wants & then establish policies that reflect concern for publics interests.PR generally is practiced through:1.Corporate PR dept :- In a corporate department, specialists handle corporate PR activities for only that company. 2.PR Agencies :- In agencies specialists carry out PR activities for several companies

3.Public Information Departments

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:- Non-profit organizations like colleges and Government agencies have public information departments that work to strengthen the image of the organization.

Definitions of PR by some renowned people: Frank Jefkins: Public Relations means what it says- relations with the public. It is practically a self-defining term. It aims to create and maintain confidence. It is a system of communication to create goodwill. It produces that intangible quality or assetgoodwill, and earns credit for achievements. K.R.Balan : The discipline which brings out the rewards in generatingmutual understanding and t he risks involved in misunderstanding betweenindividuals, groups, governments and nations in this restless world the shape and content of which tend to be rapidly changing. Editor of PR news: PR is the management function which evaluates public attitudes, identifies the policies & procedures, of an organization or an individual with pubic interests & plans & executes a program or action to earn public understanding and acceptance. Interpretation of the above definition1. It measures, evaluates & interprets the attitude of various related public. 2.It assists management in defining objectives for increasing publicunderstanding & acce ptance of orgnisations products, plans, policies & personnel 3. It equates these objectives with the interests, needs & goals of various related public. 4. It develops, executes & evaluates a program to earn public understanding &acceptance.

ELEMENTS OF PUBLIC RELATIONS:

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1.Human relations: It is getting along well with the word public both internally or externally. No person can work independently & everyone who works in an organization directly or indirectly depends on one another. 2.Empathy: Empathy means feeling with the other person to analyze others point of view & is regarded as primary pre-requisite for a satisfying experience in a relationship where a certain degree of depth of understanding is expected. 3.Persuasion: There are 2 forms of interaction between individuals or groups a)Force or compulsion b) persuasion. If one party compels another to do something instead of perusing him this is called Despotism. It is against the principle of proper conduct sanctioned by society. A sense of human interest on the person who is being persuaded will understand & appreciate the cause & effect of this action. 4.Dialogue: It is a conversation with purpose. It is not a bargain basement transaction but it is a low form of negotiation. Dialogue is a reasonable exchange of ideas bringing into view a new form of knowledge, the use of dialogue is for influencing behavior like selling goods or inspiring innovative ideas.

OBJECTIVES OF PUBLIC RELATIONS

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The main objective of public relations is to establish good understand-ing by sharing a common problem or interest with the public. By public where mean both an internal public and a public external to the organisation. Mutual understanding can be established only by sharing a common interest, by communication and relations. However, the following are the broad objectives of public relations: 1. To promote mutual understanding. 2. To avoid the risk involved in misunderstanding. 3. To win friends. 4. To influence people. 5. To change the behaviour and attitude of the public. 6. To enhance the patronage from the various sections. 7. To help in fund raising. 8. To persuade individuals, groups etc. 9. To connect misconceptions and clarify on criticism of its policies and practices. 10. To promote goodwill. 11. To create and maintain the image or reputation about the company. 12. To forestall attack by the competitors or opponents. 13. To undertake a public relations education program. 14. To help the public to love life and work for better or for worse without conditions. 15. To improve internal staff relations. 16. To liaise, counsel and advise. 17. To provide information about the activities of the company to the press and writers.
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18. To prepare and supply the public with information about the organisation like price, quality, export, employment, and other special features. Special features 19. To ascertain public opinion, conduct opinion research, and under-stand public attitudes on the organization, profession and practice. 20. To sponsor dealer and distributor relations schemes. 21. To undertake programmes like sales training courses for retailers, wholesalers. 22. To establish press relations, publicity articles preparation, press release, photographs. 23. To communicate with the employees on their benefits, accident prevention labour relations and collective bargaining. 24. To undertake a campaign of public education about an industry or profession and its contribution to the public. 25. To establish relations with federal and state legislators, agencies.

FUNCTIONS OF PUBLIC RELATIONS

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The functions that are to be performed by a public relations department may differ from organisation to organisation depending upon the nature and activities of a particular organisation. However, certain standard functions have emerged as common in most balanced departments. They are discussed below: 1. Policy : Public relations policy is required for every organisation. A policy is a statement of guidelines to be followed in the company. The department has to develop and recommend corporate public relations policies. It has to contribute the public relations view point which helps in the formulation of decision. Its function is not merely to provide the policy mainly to the top management but also to other sections and divisions. 2. Publicity : Corporate publicity is necessary to interact with the public. The department has to undertake the development and issuance of announcements of corporate activities to external communications media. It has to handle inquiries from the press. It is part of the functions of the department to develop and place promotional publicity about the company as a whole or any of its units. 3. Product Publicity : Corporate publicity is different from the product publicity. In this, focus is on the products and how to popularize the product. This includes both new products as well as existing ones. It includes the announcement of new products through the editorial channels of the communications media. The department has to develop and execute the promotional product publicity campaigns. 4. Relations with Government: Relations with government cannot be overlooked. In all spheres of activities the government inter-fares, regulates, controls and supervises. It is necessary to maintain liaison with appropriate governmental departments. This liaison covers both the local level, state level and national level. Besides, governmental relations includes:(i) advise
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action as needed.(ii) report trends in government affecting the company.(iii) help in preparing and directing corporate appearances before investigating bodies of legislative hearings.(iv) direct programmes designed to promote the company's point of view in legislative or regulatory matters. 5. Community Relations: Community contacts should be planned. It is the performance and/or coordination of corporate 'good neighbor' activities, including compliance with environmental protection standards, fostering equal employment opportunity, cooperating in urban improvement programmes, and developing community understanding of a company's problems and needs. 6. Shareholders Relations; Relations with the corporate stockholders is more important to attract public money. This takes the form of communication between the company and the shareholders in particular. Also the investment community in general. It is necessary for the development tand acceptance of the company among investors by broadening the exposure of the company's policies and financial results in the investment community. This function includes preparation of annual reports, quarterly reports, dividend cheque inserts etc. It has to plan and stage the annual meetings of stockholders and appearances before meetings of security analysts. 7. Promotion Programmes: Public relations promotion programmes should be formulated and implemented. This may broadly cover institutional promotion programmes designed to build corporate acceptance of key policies, institutional advertising, public relations literature and special events.

8. Donations:

A corporate donation policy should be developed for company contributions- Various aspects involved in this function are processing requests for donations administering company's foundation, and the conduct of employees solicitations for approved drives. 9. Employee Publications: The public relations department has to prepare and publish employee magazines, newspapers, bulletins, management communications etc. 10. Guest Relations The department must undertake guest reception activities. 11. Coordinating Activities. 12. Conveying and Interpretation. 13. Advisory Functions. 14. Instructing by doing 15. Public Relations Education Programme.

THE NEED FOR PUBLIC RELATIONS

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In recent decades human society has become so complicated and differentiated that the individual--- at least in the developed countries- is no longer able to live without adequate information. He certainly would not be able to live well without using the numerous possibilities of information offered him today. It is an indisputable fact that in this increasingly automated world man can no longer exist in complete isolation. In our age, technical developments have intensified the interdependence of all people to such an extent that the individual's capability of living is dependent, in many different ways, on society. That is, the individual lives on information he receives from society. Four Fundamental Factors: The answer to the question, 'Why Public Relations?' is well explained with the help of the following paragraphs: 1.Communication: The means of communication have reached, technically, almost a stage of perfection. It is today financially possible for practically everybody- at least in the advanced nations-to receive'" information. The level of education of a wide circle of the population is rising rapidly and this ensures a steady increase in the capacity for receiving information which is guaranteed by the 'constitution.' Adequate information is, therefore, theoretically possible although it is by no means guaranteed in each individual case. 2.New Information Order: Whether we are correctly informed is far more difficult to answer. Many books, many discussions in academics in radio and television in India and abroad, and countless lectures, not excluding those in 'Information Society' and 'New Information Order' , as far as we are aware, a correct reply is yet to be received. The only answer, according to the philosopher Karl Jaspers given in 1963, is "we in the Free World have the chance to share the responsibility and find ways of receiving the best possible information."

3.Information Load:
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Also called message load or quantity. The sceptic will, of course, draw our attention to the flood of information to which we are all exposed today. The proper reply to this is that this flood is largely without direction and that it is incomplete or inaccurate. Information must be prepared. Essential information must be separated from trivial matter, and the interest of the receiver must be aroused in the right direction. In the realization that ignorance, the inability to appreciate or recognize, superficial knowledge is extremely likely to result in dislikes, dissatisfaction and outright rejection with all their disastrous consequences. What we require is a fair means of information which eliminates existing or awakened suspicions, which builds up understanding, and creates confidence. This is what we call Public Relations. 4.Mutuality and Understanding: Going by the definition of public relations, the mutuality is based on interaction between consideration for public opinion, and the need of the communicator or organization to inform or establish contact. Understanding is created by providing insight into, and reporting on all essential matters. Confidence is cultivated by bringing the aim of the organization into harmony with the public interest, thus winning and maintaining goodwill among the general public. From all these facts, it is clear what the purpose of this' Activity in, for, and with, the public is : To act and not to react; to create an atmosphere of confidence by an active information policy, the passive part of which consists in answering queries; to inform the public and exert influence towards the inside as a form of corporate and social counter-control to establish direct or in direct connections with the public, to fulfill a kind of interpreters function towards the public and to control communicative reaction. The desired effect can only be achieved if the information or message is true and verifiable, clearly formulated and readily understandable, and is also in conformity with the daily practice of living and experiencing.

SCOPE OF PUBLIC RELATIONS

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There has been misconceived opinion about the scope or field of public relations activities. In lectures and articles published one is apt to gain the impression that public relations concern industry and commerce only. In such an instance it can only be said that one tends to overlook the fact that public relations, particularly in this decade, has entered all sectors of public life, not excluding religion, and that it how has a virtually unlimited field of application. The following examples demonstrate the wide field of public relations activities in industry and commerce. In our market economy there are information gaps which cannot be filled by the interaction of supply and demand via prices, costs or wages. This is when public relations activity steps in. It provides information on Planning technical andorganizational developments, inventions and their potential utilization, or it issues at regular intervals company reports which provide a deeper insight into the structure of the corporation than the public can otherwise obtain. The relations activity is becoming increasingly necessary for the procurement of economically essential production factors. It makes it easier for corporations to tap the money-market or to finance their projects by issuing bonds or shares. It can also help them to find new personnel when necessary, and thus level out personnel fluctuation without reducing the desired working mobility. Finally its easier for a corporation to acquire land from a community if the corporation cultivates public relations and endeavors to bring its own interests in harmony with those of the community. Public relations activity may support marketing. In its various forms it may contribute decisively to successful frictionless business activity. The principles of reciprocity underlying public relations is for the corporation an incentive to improve performance, because it helps the Corporation to overcome a difficult situation. Today the public relations profession has entered even in to the fields of hospitality, tourism, institutes, in education and to a variety of others.

PUBLIC RELATIONS EXPERT- SOCIOLOGY AND PSYCHOLOGY POINT OF VIEW

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The task of the relations expert is applied sociology. In other words, he must advise his clients bearing in mind the essential features of sociology and psychology. In particular: 1. He must hold a mirror to his organization so that it can see where it actually stands and how it really looks in the opinion of the public. Thus is one of his essential duties, and in most cases, it provides the organization with knowledge of itself, which is nothing short of astonishing. 2. He must collect all available data, so to have a sound knowledge of all his details and inter-relationships on which to work out a clear suggestion for building up the picture to be presented. 3. In doing this, he must help to overcome the many prejudices and biased opinions that are almost always present, and he must be frank in pointing out and attempting to eliminate the weak points and negative aspects of the organizations projects or policies. 4. All this forms the basis for the public relations action which must then becarried into effect as a long term strategic plan founded on exact knowledge of the process of communication and making full use of all means of communication. 5. In carrying out the plan, he must keep in mind the fact that public relations is always a two-way communication. Every public relations statement has an echo, which must be regarded as the feedback in cybernetics. Experience shows him how the message was received, and from this he must draw his own practical consequences, in complete disillusion and if necessary with readiness to self-criticism. This is the decisive point in all public relations activities. 6. As a consequence of a1I these measures there gradually comes into being inthe interrelationship between the communicator and the public under the painstakingcontrol of the public relations expert a large measure of conformity and harmony between the two poles. This is the sense and the purpose of public relations activities.

Public Relations in Indian Economic

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The Houses of Tata, Mafatlal, Bajaj, Hindustan lever, Colgate Palmolive, Indian Oxygen, Goodyear, Hoechst, DCM, Godrej, TVS, ACC, Mahindra & Mahindra, Birlas and the JK Group of Kanpur, to name a few, have contributed a great deal to the economic development of India by faithful implementation of corporate relations programmes. Owing mainly to tile progressive and enlightened programmes and policies of these 'corporate citizens, abundant employment opportunities have been generated, and sizeable foreign exchange has also been earned. The following are .the elements involved in the Corporate (Public) Relations Policy which have helped these companies gain the esteem of the various segments of the Indian and overseas public. 1. Adoption to counseling based on an understanding of human behavior. 2. Analyzing future needs and predicting their consequences. 3. Research into public opinion, attitudes and expectations and advising on necessary action. 4.Establishing and maintaining two-way communication based on truth and full information. 5. Preventing conflict and misunderstandings. 6. Promoting mutual respect and social responsibility. 7. Harmonizing the private and public interests. 8. Promoting goodwill with staff, suppliers and customers. 9. Improving industrial relations. 10. Attracting good personnel and reducing labor turnover. 11. Promotion of products and service. 12. Maximizing profitability. 13. Projecting a 'Corporate Identity.'
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14. Encouraging an interest in international affairs. 15. Promoting an understanding of democracy.

MEDIUMS OF PUBLIC RELATIONS

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LETTERS

Letters which enable one person to reach another despite the Limitations of time that can cut down on personal visits and telephoning, Are among the most ancient and perhaps still the most important media of Mass communications. It has been said that letters are the only selling medium that, if taken away, would disrupt the entire modem business structure. They are sent out with every kind of enclosure; pamphlets and Leaflets, order blanks, samples, pictures, return post cards, and many others. The well-written letter has a major advantage over all other media it is directed personally to an individual. If it designed to please and flatter him rather than to irritate him as an invasion of his privacy, it commands his attention for a little while perhaps just long enough to motivate him to do what the writer wants him to do. Mail is a personal thing. A person likes to receive a letter written for him as well as addressed to him. He likes to express regard for him, offer him a better job, make a promise or enclose a cheque. When a publicist sends out a letter written for the client's benefit rather than for the recipient's, privacy is being presumed upon. The recipient may resent it. He may throw the letter away without reading it, or read it only to turn against the writer. Individually written and addressed letters have long constituted his backbone of international communication. Offset letters are being used in increasing volume to establish a direct speedy line of communication with specific publics- Letters are used on a regular or spot-news basis to reach employees, dealers, alumni, or workers in a fund-raising or legislative campaign. THE TELEPHONE

A telephone call is more effective than a letter as a last minute reminder or an incitement to action. The telephone is good for getting a person to do something he should do although he might prefer not to such as attending a meeting. He can dodge a letter more easily than the personal commitment of a personal conversation. But for a technical or monetary commitment both parties will find it advisable to put it in writing to seal the telephone agreement. The secret of success in a large-scale telephone campaign is to Obtain reliable telephone operators - people with pleasing telephone Personalities and the persistence to keep after each number until they actually reach the proper party and drive
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the message home. The maximum effect is obtained in a telephone drive when every prospect is reached over the phone by a personal acquaintance. The telephone being an instrument of human contact, courtesy and tact in its use are important in winning the understanding and goodwill of the person On the receiving end. The telephone personality of an organization and its employees is a vital aspect of its relations with the entire community, with many different publics, and with every individual connected by phone. A glaring telephone discourtesy is to have a secretary put through a call and then hold up the party being telephoned because the caller has become tied up with something else. It is better for people in business to make their own calls. People in business can win goodwill by answering their own telephones if possible; it is not pleasant telephone manners to have a secretary ask every caller 'Who's this? 'Who are you with? And whats the call about? WORD OF MOUTH

Word of mouth spreads like wild fire. If the subject and content are right, it can burst into spontaneous combustion just as an entire forest may suddenly be overrun by conflagration. Through word of mouth, rumor and innuendo may spread with extreme speed and spontaneity if the subject is close to the emotion of people. Feeling and thought must quickly take wing on word of mouth. In stimulating a word-of-mouth campaign. The important thing is to present subject matter of such interest as to cause people to repeat it to others. Word of mouth is perhaps the most subtle of publicity tools. It takes the form of gossip and slander at times if timely action is not taken to control it. Though it is the hardest to control, all our efforts need to be made. Its manipulation is not subject to cut-and dried mechanics, asis the case with so many publicity media and instruments. The things that contribute to word-of-mouth circulation are: 1. A spectacular and successful event or product. 2. A spectacular publicity or activating campaign. 3. A good catchword or slogan. 4. Capitalizing on a mass trend or catchword.
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NEWSLETTER

The commercial field has long made good use of newsletters. These have a bright future. Newsletters tend to fit the times these days. People have fragmented interests. There are certain things they want to know a lot about, and other things they don't want to hear anything about. Newsletters have the advantage of speed. They are quick to read. The public relations use of newsletters is spreading rapidly into non-profit fields as well. Associations and professional societies particularly find the formal effective. Its use in politics and lobbying is burgeoning. With this format, users can reach constituents quickly on matters having both urgency and importance. The person-to-person nature invites reading. POST CARDS

Post cards are quick and easy to prepare, quick and easy for the Recipient to absorb, economical to mail to constituents and an effective adaptation of direct mail to reach large numbers of people with a message that can be punched home in a paragraph .In many campaigns, a large number of individuals can be stimulated to sign and then send post cards to their own friends and contacts. This personal touch has more influence with the recipient than would a communiqu from a stranger. PUBLIC ADDRESS SYSTEM

Public address systems at meetings, shows, gathering of employees or mass audiences of any kind make it possible mechanically to project he human voice before a large number of people. Mounted on a mini truck or other mobile auto, the public address system can be transported from place to place, presenting speakers and programmers as it goes, and reaching a widely distributed audience. Sound tracks can also be rigged up at programmes in lieu of a permanently installed public address system. A portable bullhorn affords great mobility wherever amplified sound is needed. A recording makes it possible to 'capture' a speech or radio Programme and replay it by radio before an audience or over a public address system anywhere. Some recordings are made on the spot at special

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events. In other instances, special programmes are deliberately produced at are cording studio. CHARTS

Charts are by far the most-used visual aid. A chart may be painted, printed or drawn. It must be large enough and simple enough to be seen and comprehended in the presentation setting. Flannel Boards

Flannel Boards consist of aboard covered with felt. Sticky-backed visuals are placed on the surface, allowing a speaker to put some movement and flexibility into an otherwise static presentation. Magnetic Boards

Magnetic Boards are much like flannel boards, except that magnets permit the use of heavier three dimensional visuals. Video Cassette, Audio Cassette and Disc Recordings

These are useful in overcoming some of the difficulties of working with a diffuse and loose-knit organization. They assure that all concerned get exactly the same message with the desired visual and/or audio emphasis. Generally, these video cassettes, audio cassettes or disc communications, though carefully prepared, are modest in technique .Intentionally, they do not have the ambitious-or cost-associated with full scale productions. Electro writers

An executive or a demonstrator can write his 'blackboard' notes across a long distance through a transmitter unit hooked up by telephone lines with a projector unit and screen. Tele Lecture

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This is a useful technique for making an audio/visual presentation at distance. With the help of the telephone company there is a hook-up from a speaker's office, a meeting or classroom, where visuals can be shown while the speaker is heard. Members of the audience can question the speaker through a two-way hook-up. This permits the speaker to 'appear' at many locations without the full time or expense of going there, and it permits remote groups to engage speakers they otherwise would not attract. Facsimile

It sends between distant cities via telephone lines, exact copies of blueprints, layouts, another visual materials- It is now used increasingly to transmit copy between the offices of an agency and clients or between an organization and a communications medium.

PLANNING PROCESS OF PR
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Public relations are not merely a process of getting stories and pictures into newspapers. It is much more. It has to be properly planned, orderly executed, and a number of details need careful attention. Public relations costs money, requires manpower, needs expertise, and consumes time and resources. So it should be well planned and executed in an orderly manner.

PR Objectives
The first step is to set out clearly the PR objectives before any campaign is launched. The publicist must have a clear ideas to what is intended to be achieved. His approach should be Positive and purposeful: Publics

The next step is to decide who is the audience to be reached i.e. local, regional, national, or international. And apart from geographical area, it should be considered if any specialized audience or a section of the community or professional people is also to be reached. Message

After deciding the public the company has to decide what message they want to pass through the campaign, what is it they want the people to know about them or what they want to tell or inform the public about. Strategy

A strategy is a long term planning or the methods that a company adopts to make itself a successful company. For a PR campaign also strategies are required to be formed to so that they can create an impact or impression in the minds of the people; as well as they can build a fair and favorable image in the market.

Tactics
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Along with a good strategy a company also needs to use some very good tactics for its campaign because there are competitors in the market and the company has to stand on top of all of them. Time Scale

The public has to decide the time scale in which they will complete the campaign. They have to set a specific time. Also the decision about the commencement of campaign, duration, repetition, etc. is to be made well in time. Resources

The publicist has also to think about the resources in terms of money and staff available to him. The campaign has to be planned keeping in view the resources which the publicist would be able to mobilize. Selection of Media/Resources

Another point that requires a decision is about the media to be employed for the campaign: whether publicity is to be conducted with one medium or more than one or through multi-media. Evaluation

After deciding upon the above things the publicist should evaluate the whole process to check whether everything is properly being done or not or whether they have to add anything else or not, etc. Review

After evaluation again there should be a review of the entire thing to give it a final check.

Analysis
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After the campaign there should be an analysis of the entire process sp that they will come to know whether the campaign was successful or not and if not then where it went wrong. If any draw backs are pointed out then again the whole process is repeated from the point of identifying the publics.

PUBLIC RELATIONS AT LIFE INSURANCE CORPORATION OF

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INDIA LIC CORPORATE PROFILE

Life Insurance Corporation of India is a wholly owned undertaking of the Government of India. Life Insurance Corporation of India was established by an Act of Parliament on 1stSeptember, 1956. Its Central Office is located in Mumbai. It also has seven zonal offices each located in Mumbai(Western Zone), New Delhi (Northern Zone), Kanpur (North Central Zone), Bhopal (Central Zone), Chennai (Southern Zone), Hyderabad(South-Central Zone), and Calcutta(Eastern Zone).It has a network of over 2000(2048) branches and more than nine lakhs agents. Over 47years, LIC has become a household name for providing security for a lifetime and is synonymous to life insurance in India.LIC ranks No.1 in the list of top 500 companies on the basis of Net Worth(Rs. 15, 47, 951million) as well as Net Profit(2,66,277 million)- Dun & Bradstreet (India 500 OBJECTIVES OF PUBLIC RELATIONS IN LIC The objectives of undertaking PR activities in LIC are manifold. In their Citizens Charter the company states that: TO THE COMMUNITY:

We will conduct all aspects of our business keeping in view the interests of the community and the national priorities; Provide insurance cover and financial security to every insurable segment including the socially and economically weaker sections of the society. TO OUR CUSTOMERS:

We will provide them prompt, efficient and courteous service; act as trustees of their funds and invest them to their best advantage; build and maintain enduring relationship; Keep them informed about our products and services etc. TO OUR WORKFORCE:

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We will promote a sense of participation and make them partners in progress; work towards ensuring their job satisfaction and sense of pride; provide an environment and the opportunities for growth to enable them to realize their full potential; take steps to develop professional skills to enable them to handle their assignments more efficiently.

ORGANIZATION DEPARTMENT

AND

STAFFING

OF

THE

PUBLIC

RELATIONS

LIC is purely a service-oriented organization. Moreover for transacting with their customers and business associates the company needs to develop and maintain cordial relations with various sections of the society and various other agencies i.e. their publics. This makes the role of PR in LIC even more important and vital. The company has a huge and active Public Relations Department which looks after the publicity of the various services offered, maintaining cordial relations with the various publics, publishing of journals, etc. and other PR activities. Budget:

The management allocates Rs. 2-3 crores (approx.) annually to the PR Department. This amount is then further allocated to the various Zonal Offices which prepare their individual budgets according to their requirements. Staffing Of PR Department

The Director-PR operates from the central office and has under him a Chief PRO. Each Zonal Office has a Zonal Manager-PR under whom is the Regional Manager-PR. Further under him is the Assistant Secretary who works with his Subordinate staff to fulfill the day-to-day activities of the PR Department. A PR plan is made at the beginning of each accounting year for which the Chairman appoints a PR Planning Committee. This committee comprises of the Director PR, Chief PRO, etc.

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TASKS AND ACTIVITIES UNDER THE PURVIEW OF PR AT LIC

Of the various activities undertaken by Life Insurance Corporation some are listed below: Advertising

Though countywide advertising is done by the marketing department, advertising locally in the various cities is handled by Zonal Offices. The advertising strategy is very well planned and is largely aimed at image building. Organize press conferences

Press conferences are organized occasionally, generally when a new policy is released or when the annual financial results are announced or if something of significance has happened. Issue Press Releases

Press Releases are issued both by the central office as well as the various zonal offices. Participate in public awareness programmes

LIC has time and again joined itself with various community development and awareness programmes for the cause of rural development and infrastructure development.

PUBLICS IMPORTANT TO LIC

INTERNAL PUBLICS Employees
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Employees families Staff Unions

EXTERNAL PUBLICS Customers i.e. policy holders Prospective Customers Government Agencies Banks and Financial Institutions Statutory Bodies e.g. IRDA (Insurance Regulatory and Development Authority) Social Organizations Lawyers Local Administration Media General Public Auditors

RELATIONSHIP WITH SIGNIFICANT PUBLICS

Significant internal publics of the organization are its :-

Employees
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Employees families; and the Staff unions.

EMPLOYEE RELATIONS In most Indian organizations, or companies, communications with employees have so far been given a back seat as compared to external communications. This has not been the case with LIC. It has through time realized the importance of its internal publics.LIC shares a good rapport with its employees. There are various staff unions to take care of the employees rights. The company shares a cordial and harmonious relationship with these unions. The companys focus, as regards its employees, is on providing: A healthy working environment; Employee friendly HRD policy; Job security;Training of Human resources; Fully utilizing its peoples talents and capabilities to promote skills and competencies and broaden their perspective; Handsome remuneration and perks. The company achieves the above objectives by a number of means. I. HOUSE JOURNALS The corporation has a corporate house magazine YOGAKSHEMA which chronicles corporate and organizational events and pronouncements. The corporation also releases a quarterly newsletter JANKALYAN which serves the above mentioned purpose as well as acknowledging employee achievements and produce merit lists of employee performance. A news letter NILYAMDOT COM is also published by the corporation which is developed by the children of the LIC employees and is exclusively for children. II. INTERACTION The corporation also conducts open houses, meetings, seminars, workshops. This is done with the aim of facilitating two-way communication. III. REWARDS
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Prizes are awarded to top performers at staff meetings and conferences. Rewards are given in the form of holiday, a family trip or some monetary gain.

CONSUMER RELATIONS IN LIC In consonance with the changes taking place in the insurance market, the corporation has undergone a transformation, simultaneously requiring a revamp in its image. Systematic and focused PR initiatives and widespread publicity have resulted in markedly improved visibility. The corporation has emerged with a much younger and sleeker image. A conscious effort was made to bring about a transformation in the corporate image. Through various campaigns, the corporation tried to depict the organization as one oriented towards the younger generation. The corporation advertising campaigns assisted the marketing strategies.

PR ACTIVITIES FOR CONSUMER RELATIONS

The business of insurance is purely service which cannot be seen or held. Hence, the consumer relations activities of LIC concentrate on the customer public and building relations with prospective customer. The corporation has time and again made endeavors to reach out to the consumers, interact with them and keep them satisfied. The corporation tries to achieve its objective through a number of means
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 Oral Communication Oral communication with the consumer public is the most effective means of presenting facts and creating understanding of the organizations policies and practices. Employee-Consumer Communication: The harmonious relationship that LIC has, through the years , built and maintained with its customers has only been possible due to its dedicated and committed team of Development Officers and scores of Insurance Agents throughout the country. Press Conferences Press Conferences are organized to announce new appointments of top executives, introduction of new schemes, etc. It is very important in todays world because Now a days people are being aware about the appointment procedure of different companies and consumer are also getting educated day by day because of which it becomes necessary for the companies to keep press conferences. Audio-Visual Communication Television and Radio broadcasts are a basic medium of consumer communication. Now a-days it gaining a lot of importance. Television and Radio advertising The corporations advertisements reached nearly 25 crore people through over 50campaigns. There were 79 hours of TV advertising and 408 hours of Radio advertising. Trans-slides The Corporation has placed trans-slides at strategic places, like Railway Stations and Airports, for maximum exposure to public at large. Printed Communication At LIC printed communications are used in conjunction with oral communication media.
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 Press Release Press releases are frequently handed out to the media by the local PR department on behalf of the company. These generally comprise of any subject or issue concerning the company, containing information for policy holders or any item of news value to the media and its readers. Journals and Publications The corporation takes out its annual working results and several other publications from time to time to keep the public abreast of the happenings and achievements at LIC. Financial Results The annual financial report of the corporation is published in the National dailies and is also circulated amongst the shareholders to keep them informed. It also aims at attracting new investors. Booklets, Brochures and Pamphlets Booklets, Brochures and Pamphlets are generally taken out to inform its internal and external public about its various new schemes and act as an effective medium of print communication. Posters and Hoardings These tools are not only an advertising medium but also a very effective PR tool. LIC uses posters and hoardings to get quick public notice. Posters and hoardings are widely placed throughout the city at busy intersections like subways, railway stations, roadsides, bus shelters, etc. Other Amenities Provided by LIC Website The Corporations website www.licindia.com gives information about the corporations products, services, subsidiaries and addresses of branches and about premium payment through the internet. It also provides
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Press releases News sections Online policy status Online Premium Payment LIC has tied up with HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab, Global Trust Bank, Corporation Bank, The Federal Bank Ltd., Citibank, and service providers like BillJunction.com, timesofmoney.com to offer the online premium payment facility to its customers in select cities. Information Kiosks The corporation has installed online information kiosks at prominent places across the country. This provides information about the Products, services and policy status reports to the customers. Customer Contact Programme The purpose of such a campaign is to strengthen the relationship with the customers and to build bridges of understanding.

FINANCIAL RELATIONS IN LIC

CONCLUSION
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Public Relation came into existence by the belief that if we do something good for people then only the people Will say good about the organization. Today's is a age of competition. And to remain firm in the competition depends on how efficiently the Organization manage its PR & project the company's image. Public Relation will not sell goods and Services but it is bound to create an atmosphere which will make the free enterprise , a responsible enterprise . Public Relations , in fact Will prove to be the most effective tool for communicating with the People who are still remote from industry for convincing them that Corporate objectives are ultimately in the interest of the public. The PR Mantra has now became pervasive. Neither a individual nor theorganisation effectively strategizing PR. &

not even the government Or a UN body can thrive or sustain in this age without

BIBLIOGRAPHY Books

Principles Of Public Relations

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C. S. Rayudu. K.R. Balan

Handbook Of Public Relations In India

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- D. S. Mehta The art and science of public relations - Anne Gregory Websites: www.licindia.com www.altavista.com

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