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There is growing scholarly interest in the use of penalty in employment contracts which reduce employees' pay if the employee's performance does not meet a pre-specified performance threshold. Prior accounting research has focused exclusively on the effect of penalty on employee performance. In this study, the authors extend earlier research by examining how penalty affects the employers' wage offers. Prior research suggests that employers' generous wage offers in employment contracts are normally translated as trust by employees who in turn reciprocate with higher effort. The authors present a theory that predicts penalty reduces employers' wage offers. Then, the authors propose unrestricted communication between employers and employees as a potential moderator for the negative effect of penalty on trust and reciprocity.

The authors implement a controlled lab experiment with a 2 × 3 experimental design (Penalty: Present and Absent; and Communication: None, One-Way and Two-Way).

The authors develop their predictions by utilizing insights from motivational-crowding and organizational communication theories. The authors hypothesize and find evidence that employers' ability to penalize employees can reduce employers' motivation to offer generous wages. As a result, reduced trust demotivates employees to provide high effort. However, the authors find that a two-way communication moderates the negative effect of penalties by restoring trust, thereby, increasing reciprocity. Finally, the authors find evidence that relationship-oriented messages explain the moderating effect of communication.

This study is subject to limitations inherent in all experimental studies. The decisions in the study experiment are less complex than those found in practice. Moreover, there are significantly higher costs and potential benefits to shirk on effort in practice. The authors encourage future research on other organizational features that would influence the generalizability of their theory and results. Nonetheless, this study makes an important contribution to the literature on trust, reciprocity, gift-exchange contracts, managerial controls and communication.

This paper has several important implications for theory and practice. The authors show that the presence of penalty may not automatically result in increasing employees' effort level, contrary to traditional economic theory predictions. This effect is driven mainly by the crowding out effect of a penalty on employers' desire to signal trust. Therefore, the presence of an open communication channel may become an important tool to reverse the psychological effect of reduced trust when penalty is present. Therefore, the study's findings contribute to the trust–reciprocity literature on how management control system influences employers' and employees' behavior. These findings are especially germane given the trend in the workplace toward establishing open communication at different levels within the firm hierarchy. The study also contributes to the literature on trust–reciprocity as critical informal controls and social norms in accounting practices (Bicchieri, 2006; Stevens, 2019), shedding light on how firms may influence employees' reciprocity in management control practices and induce them to act in line with the firm's objectives by opening communication channels.

Prior accounting research document that penalty in employment contracts increases employee performance due to loss aversion. The study, however, demonstrates that the positive effect of penalty is not sustained in a gift-exchange contract. Specifically, the study's experimental results provide evidence that the availability of penalties can psychologically change the way employers perceive their decisions on offering generous wages (i.e. trust) and consequently reduce employees' reciprocation of high effort levels. Yet, the authors propose a two-way communication as a restorative mechanism for the lost trust. Implications for theory and practice are discussed.

The purpose of this paper is to compare the communication styles on the web sites of a random sample of the top American corporations and non‐profit organizations. By revisiting the traditional approach to understanding strategic communication, the four models of public relations provide insights into the direction and nature of organizational communication.

A random sample of Fortune 500 (n=180) and Philanthropy 400 (n=170) was conducted. Although public relations research has never measured internet communication using the four models, the researchers created original scales to measure their web performance.

The research reveals that both corporations and non‐profits have strong preferences for using one‐way communication on their web sites. However, both groups moderately incorporated two‐way communication practices as corporations were more likely to use two‐way research practices and non‐profits were more likely to engage in conversations online.

This research examines organizational communication by returning to a previous method of analysis that has been cast aside by current scholars. However, assessing communication from the models of public relations perspective provides insights that current research strategies have not provided because they assume two‐way communication is the preferred form of communication.

Discusses a research project which focuses on how decisions are made, rather than on who makes them, and in particular on the communication involved when all members of a family participate in buying a product; the family is the most important consumer buying unit in society. Outlines how respondents were recruited in northeast Scotland, with children between 13 and 15 targeted; the research consisted of a questionnaire, interviews, and a decision‐mapping tool in the form of posters. Distinguishes formal and informal communication modes, the former tending to prevail if the decision was urgent; two‐way communication or one‐way, ie parent to child; and communications pairs and subgroups, including parent communication, child communication, and parent and child communication. Concludes that the research families adopted varying degrees of formality and communication directions, and that parents and children often worked together rather than in opposition to each other, with the child focusing on the parent who was most interested in the product.

The rise of social media such as Facebook and Twitter has provided employees with means to share work-related information. Increasingly, social media governance policies are implemented to negotiate the risks and opportunities of such behaviors. The purpose of this paper is to unveil the motivations behind managers’ attempts to govern these behaviors.

Semi-structured interviews were conducted with ten communication managers of various organizations. Higgins’ regulatory focus theory (Higgins, 1997) was used to examine whether managers adopted a prevention or promotion focus to social media, and whether regulatory focus affected the measures taken toward social media governance.

Prevention and promotion foci were both observed among managers, and differed per communication model. Managers who employed dialogic models of communication were primarily promotion-focused and emphasized opportunities to improve stakeholder relations, while managers who employed one-way models were primarily prevention-focused and highlighted the risks of social media (e.g. the risk of employees publishing messages that contradict corporate communication and confuse stakeholders). Social media governance differed depending on regulatory focus. In the prevention scheme managers usually attempted to regain control by restricting social media to private use only, while in the promotion focus managers trained and facilitated employees for work-related social media use, to various extends.

By examining the interplay of regulatory focus, communication models and governance, this paper sheds light on the rationale behind social media governance policies that are implemented in organizations.

The use of the Internet is becoming more prevalent all the time in the investor relations (IR) activities of firms. This paper explores how the Internet can be used and integrated into the existing IR activities of firms. It argues that the Internet is having a significant impact on IR practices, changing the specific techniques and activities associated with IR. As shown with several examples, the Internet can substantially change how a firm communicates with investment community stakeholders in terms of both its one‐way communication efforts directed at information dissemination and its two‐way communication efforts directed at interactive dialogue.

The purpose of this paper is to review the historical development of the models/dimensions of public relations. The extensive criticism of the models and dimensions is provided to better understand the strengths and weaknesses of the concept.

The paper is based on a critical literature review to understand the roots of the models, their empirical tests, the modifications applied to the models over time, and finally the proposed shift from models to dimensions of public relations.

The study concludes that the attempt to translate the public relations models into the dimensions failed because of a variety of conceptual and methodological flaws. Yet, the idea of developing dimensions of public relations is a viable and practical step in advancing public relations research; however, such dimensions must be continuous, dichotomous and measurable.

Models of public relations first became a dominant theoretical perspective in public relations only to virtually disappear from the research agenda later. This paper calls the attention back to the models/dimensions to revive the research in this area.

Leadership can positively affect the work environment and health. Communication and dialogue are an important part in leadership. Studies of how dialogue is valued and handled in first‐line leadership have not so far been found. The aim of this study is to develop a theoretical understanding of how first‐line leaders at hospitals in western Sweden value and handle dialogue in the organisation.

The study design was explorative and based on grounded theory. Data collection consisted of interviews and observations. A total of 11 first‐line leaders at two hospitals in western Sweden were chosen as informants, and for four of them observation was also used.

One core category emerged in the analysis: leaders' communicative actions, which could be strategically or understanding‐oriented, and experienced as equal or unequal and performed equitably or inequitably, within a power relationship. Four different types of communicative actions emerged: collaborative, nurturing, controlling, and confrontational. Leaders had strategies for creating arenas and relationships for dialogue, but dialogue could be constrained by external circumstances or ignorance of the frameworks needed to conduct and accomplish dialogue.

First‐line leaders should be offered guidance in understanding the consequences of consciously choosing and strengthening the communication component in leadership.

The positive valuation of dialogue was not always manifest in practical action. One significant consequence of not using dialogue was that information with impact on organisational efficiency and finances was not communicated upwards in the management system.

Symmetric communication and relationship building are core principles of public relations, which have been highlighted for CSR communication. The purpose of this paper is to develop three different communication strategies for CSR communication in Twitter, of which each contributes differently to the ideals of symmetric communication and relationship building. The framework is then applied to analyze how companies use the micro-blogging service Twitter for CSR communication.

Social network analysis is used to identify the 30 most central corporate accounts in a CSR Twitter network.

From the social network analysis 40,000 tweets are extracted and manually coded. Anova is applied to investigate differences in the weighting of CSR topics between the different strategies.

So far not much is known about how social media, such as Twitter, contribute to the core principles of public relations, if companies use social media to foster symmetric communication and relationship management, or which CSR topics they address.

Develops a model which integrates the development of marketing relationships with marketing communication practice. Especially within the realm of relationship marketing thinking, communication may be understood as an act of persuasion. Using three classical rhetorical elements, we may see this process as developing an understanding of the communicator’s intentions and qualities (ethos) and the communication climate (pathos), both of which are necessary for engaging in constructive dialogues with customers (logos). On this basis, the paper outlines a model for integrating practices of marketing communication with relationship building and illustrates the model using a case study from a Danish bank as a reflective device.

This paper aims to promote better understanding of how the internet is used as part of crisis communication.

The internet may be changing the way PR operates in a crisis. It has been reported that the web has a significant role in disseminating information and that many‐to‐many online communication allows organisations to achieve “excellent” communication. However, it has also been suggested that in practice there is a need for more flexibility that the “excellence” model suggests. This study reports on data collected from in‐depth interviews with ten senior PR‐practitioners in order to understand their experiences and attitudes.

A range of attitudes are identified, informed by recent experience. Although participants indicated knowledge of and preference for two‐way communication with stakeholders, in practice they found this impractical or undesirable. This, their preference for existing approaches, and ignorance about the internet informed their views about online communication. The result was that some regarded the internet as inferior in terms of its ability to achieve “traditional” tasks and because of its potential for undesirable dialogue. When the web was acknowledged as useful it tended to be considered as supplementary to existing approaches. There was little recognition of the need for online dialogue.

This paper articulates a range of positive and negative attitudes towards the use of the internet for crisis communication, based on the experiences of senior PR practitioners.