The key determinants of perceived external prestige (PEP) - Qualitative research approach

Abstract

Perceived external prestige (PEP) is a well-known concept oriented towards describing the way members of a certain organization interpret and assess their organisational reputation. Such perception can significantly affect employees’ identification and loyalty to the organisation as well as their job satisfaction and work performance. According to the social identification theory, people define themselves and others with respect to their belonging to a particular group or organization, and their basic motive is a personal need for self-respect and a sense of pride. Employees’ perception of being members of an important, reputable and significant organisation contributes to the feeling of self-respect, which increases their individual social value and status. According to literature, there are only few objections to the concept of PEP, mainly those related to the determination of its structure and, with it, to its management. Although there is a growing literature on PEP, it is still not clear whether PEP is a one-dimensional or a multidimensional construct. If PEP is a multidimensional concept, it is important to specify its key components, in order to enhance the management of favourable organizational prestige in a real work environment. The purpose of this paper was to determine the structure of PEP and important sources of information, based on which, employees value the prestige of their organisation. Qualitative research was conducted, comprising nine semi-structured interviews with communication experts working for a multinational organisation operating in several European countries. The results of this paper indicate that PEP is a multidimensional construct, with several components, important for its creation and management. Those components can be grouped into three main categories: track record of success and the position of the organisation on the market, social impact of the organisation on the immediate environment and the internal organisational climate. In addition, differences in some sources of information, contributing significantly to the perception of the organizational prestige, have been discussed. According to interviewees’ comments, the most important sources of information for employees proved to be managers and media.