Exploring the Impact of Communication on Employee Performance

Abstract

This study aims to examine types of communication such as horizontal communication, downward communication and upward communication that impact employee performance in a property development company in Malaysia. Survey questionnaire approach was applied to collect data in this study. A total of 120 respondents participated in this research. The results indicated that downward communication (DC) and horizontal communication (HC) have significant positive impacts towards employee performance. The research finding is able to provide insights and important information to the property development firms to better understand the importance of communication among employees in enhancing employee performance. For this to happen, management may focus on the development of soft skills to increase the ability to express and communicate among the employees. Management should organize more activities such as inter-departmental meetings to create quality bonding among superiors and subordinates. Proper training and development plan should be established to realize effective communication in the organization.

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International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-3S2, October 2019
654
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number: C12131083S219/2019©BEIESP
DOI:10.35940/ijrte.C1213.1083S219

Abstract: This study aims to examine types of communication
such as horizontal communication, downward communication
and upward communication that impact employee performance in
a property development company in Malaysia. Survey
questionnaire approach was applied to collect data in this study. A
total of 120 respondents participated in this research. The results
indicated that downward communication (DC) and horizontal
communication (HC) have significant positive impacts towards
employee performance. The research finding is able to provide
insights and important information to the property development
firms to better understand the importance of communication
among employees in enhancing employee performance. For this
to happen, management may focus on the development of soft
skills to increase the ability to express and communicate among
the employees. Management should organize more activities such
as inter-departmental meetings to create quality bonding among
superiors and subordinates. Proper training and development
plan should be established to realize effective communication in
the organization.
Keywords : Downward Communication, Employee
Performance, Horizontal Communication, Upward
Communication.
I. INTRODUCTION
Human use communication as a channel to interact with
each other in day to day life [1]. Good communication is a
necessary tool in achieving high quality of performance and
maintaining strong working relationships within the
organization. The trust among employees can be build up if
everyone is spending time into delivering clear
communication. Effective communication boosts employee
productivity and binds employees together. It builds team and
increases employee performance and at the same time it
reduces employee turnover in the organization. However,
weak communication in the organization will lead to loss of
confidence and ineffective operation [2]. Organizations that
are deficient in their communication do not achieve the same
performance as those that communicate well [3]. Researchers
such as Bakar, Walters and Halim [4] had expressed the
Revised Manuscript Received on October15, 2019.
* Correspondence Author
Ong Choon Hee*, Azman Hashim International Business School,
Universiti Teknologi Malaysia, Johor Bahru, Malaysia. Email:
ongchoonhee@gmail.com
Delanie Ang Hui Qin, Azman Hashim International Business School,
Universiti Teknologi Malaysia, Johor Bahru, Malaysia.
Tan Owee Kowang, Azman Hashim International Business School,
Universiti Teknologi Malaysia, Johor Bahru, Malaysia.
Maizailtulaidawati Md Husin, Azman Hashim International Business
School, Universiti Teknologi Malaysia, Johor Bahru, Malaysia.
Lim Lee Ping, Azman Hashim International Business School, Universiti
Teknologi Malaysia, Johor Bahru, Malaysia.
importance of communication in organizations. Yet, they
found that the importance of communication among
employees has often being neglected in the organization.
Hence, this study intends to bridge the gap by raising the
below research questions:
1. What is the relationship between horizontal
communication and employee performance?
2. What is the relationship between upward communication
and employee performance?
3. What is the relationship between downward
communication and employee performance?
II. LITERATURE REVIEW AND HYPOTHESIS
DEVELOPMENT
A. Employee Performance
Employee performance is a behavior of an employee when
he or she is performing a job or task [5]. It is something or
outcome produced by the employees in the organization [6].
Employee performance involves the achievement of each
employee in accordance with the organization’s regulations,
requirements and expectation. Employee performance is the
result of ability, effort and perception of task from the
employees [7], [8]. It helps to enhance the productivity of the
organization by improving efficiency and effectiveness of the
tasks. Excellent employee performance creates outcomes like
high quality and high productivity among employees in the
organization [9]. The morale and energy of the employees
will be boosted when people surrounding them are doing their
job effectively [5]. The way on how organization
communicates with its employee reflects the performance of
its employees. Effective communication allows employees in
an organization to become productive and efficient [10].
B. Horizontal Communication
Horizontal Communication is the employee
communication across the same level in the organization [1].
The message is transmitted along the similar level within an
organization. Horizontal communication directly shares
information, solves problem and works together efficiently
[11]. It usually produces a higher quality of information
exchange as it occurs directly between employees working in
the same level [12]. Horizontal communication coordinates
the activities of different departments in the organization [13].
It helps in developing stronger relationship for employees in
both similar department and different departments.
Exploring the Impact of Communication on
Employee Performance
Ong Choon Hee, Delanie Ang Hui Qin, Tan Owee Kowang, Maizaitulaidawati Md Husin,
Lim Lee Ping

Exploring the Impact of Communication on Employee Performance
655
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number: C12131083S219/2019©BEIESP
DOI:10.35940/ijrte.C1213.1083S219
Horizontal communication also enhances the involvement
of employees in the organization [12]. The availability to
express views and opinions improves employee performance.
Effective horizontal communication decreases
misunderstanding and conflict in the organization and
increases the network and assists employees in performing
their jobs [13]. This makes the employees happier and more
successful in the organization. Hence, it is hypothesized that:
H1: Horizontal communication positively influences
employee performance.
C. Upward Communication
Upward communication is a communication from
subordinates to their superiors in the organization [1]. The
message is transmitted from bottom to top along the
hierarchy. This usually happens when subordinates request
for opinions from their superiors. It is a type of
communications that triggers decision from the top
management [14]. Upward communication promotes
cooperation and gains support from the superiors. Upward
communication enables employees express their feelings
about jobs and procedures in the organization [15]. Apart
from that, upward communication also reflects the ability of
employees in performing their jobs [14]. For example,
subordinates should know the expectations of their superiors
and discuss with them in relation to job interest and future
career development. In this case, superiors and subordinates
could work cohesively to produce better results and attain
excellent performance. Therefore, it is hypothesized that:
H2: Upward communication positively influences employee
performance.
D. Downward Communication
Downward communication is a communication from
superiors to subordinates in the organization [1]. The message
is transmitted from top to bottom along the hierarchy.
Superiors normally share information with their lower level
employees [16]. This would assure that employees understand
the organization goals clearly [17]. The more information is
shared the more productive the employee is expected [10].
Effective downward communication improves leadership
communication by sharing regular updates in the organization
[11]. Superiors who provide subordinates with useful and
accurate information could reduce uncertainties among them
[16]. This makes the employees to understand the reasons for
management decision [16]. In addition, downward
communication transfers work-related information to the
subordinates effectively and ensure employees work for the
best interest of the organization. Superior could also use
downward communication to provide feedback on employee
performance so that individuals are able to improve it from
time to time. Therefore, it is hypothesized that:
H3: Downward communication positively influences
employee performance.
III. METHODOLOGY
A. Population and Sample
The total population of this study consists of 120
employees in a property development company. According to
Krejcie and Morgan [18], the minimum sample size is 92 for a
population of 120. However, this study selects all the
population as samples as it is possible to reach each
respondent of the population.
B. Measures
The measures of employee performance (12 items) were
adapted from the study of Abelsen et al. [19]. The items of
horizontal communication (6 items) were adapted from
Bakar, Walters and Halim [4] while the items for upward
communication (6 items) were adapted from Michael [20].
Measures for downward communication (6 items) were
adapted from Abelsen et al. [19]. Likert scale was used to
measure the level of agreement for all the study variables. The
scale was anchored by 1 (Strongly Disagree), 2 (Disagree), 3
(Neutral), 4 (Agree) and 5 (Strongly Agree).
C. Data Collection Procedure
Online questionnaires were used in this research because it
is an efficient way to collect data from the respondents. The
questionnaire is set to be completed by the respondents in 10
minutes. Online questionnaires were distributed to the
respondents via emails and mobile applications. Statistical
Package for Social Sciences (SPSS) software was used to
analyze the data obtained.
IV. RESULTS
A. Profile of the Respondents
Among the 120 respondents, 42 were males and 78 were
females. Majority of the respondents were aged between 26 to
35 years old which accounted for 54.2% of all the
respondents. In terms of marital status, 95 of the respondents
were single (79.2%) and 25 (20.8%) were married. In the
category of education background, most of the respondents
(104, 86.7%) were bachelor’s degree holders.
B. Factor Analysis and Reliability Test
Factor Analysis was conducted by employing Principal
Component Analysis (PCA) to assess validity of the study
variables. Based on the results obtained from the Principal
Component Analysis (PCA), one of the independent
variables, upward communication has been eliminated. The
elimination of upward communication was due to cross
loadings with other study variables. Table 1 shows the results
of factor analysis for the independent variables (i.e.
downward communication and horizontal communication).
Table 2 indicates a single factor for the dependent variable
(i.e. employee performance). All the variables were deemed
reliable as they had achieved the alpha values beyond 0.70 as
suggested by Tavakol and Dennick [21].

International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-3S2, October 2019
656
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number: C12131083S219/2019©BEIESP
DOI:10.35940/ijrte.C1213.1083S219
Table 1. Factor Analysis for the Independent Variables
Item
Description
Factor Loading
1
2
DC1
My superior provides
sufficient amounts of useful
information that I understand.
0.931
DC2
My superior share and
respond to information in a
timely manner.
0.924
DC3
My superior actively listen to
my viewpoints.
0.936
DC4
My superior always speaks
politely and this motivates me
to model him/her.
0.940
DC5
I know what I am expected to
achieve when I am given a task
at work.
0.927
DC6
My superior maintains
essential information flows to
me.
0.950
HC1
I always avoid using harsh
language when communicate
with colleagues.
0.685
HC2
I use polite language to advise
my colleagues.
0.886
HC3
I use appropriate language to
address others.
0.869
HC4
I try to interact with
colleagues nicely at work.
0.858
HC5
I always respect my
colleagues’ views.
0.792
HC6
I helps someone without being
asked.
0.725
Eigenvalue
7.109
2.617
Percentage of Variance Explained (%)
58.495
21.805
Cumulative Percentage (%)
58.495
80.300
Reliability Coefficient (Cronbach
Alpha)
0.983
0.897
Note: KMO = 0.893, Bartlett’s test of Sphericity;
Approx.Chi-Square = 1788.899, p < 0.001.
Table 2. Factor Analysis for Employee Performance
Item
Description
Factor
Loading
1
EP1
I receive meaningful recognition for
work well done.
0.891
EP2
I receive useful feedback from
superior on my job performance.
0.896
EP3
My work has made contribution to the
good of the organization would please
me.
0.883
EP4
I like to feel that I am making some
contribution not for myself but for the
organization as well.
0.882
EP5
I persist in overcoming obstacles to
complete a task.
0.850
EP6
I meet the formal performance
requirements of the job.
0.836
EP7
I put in extra hours to get work done
on time.
0.796
EP8
I am enthusiasm in performing my job.
0.924
EP9
I am initiative in doing my work.
0.909
EP10
My work hard leads to good
performance.
0.887
EP11
My work hard leads to high
productivity.
0.892
EP12
My work hard leads to doing my job
well.
0.884
Eigenvalue
9.253
Percentage of Variance Explained (%)
77.106
Cumulative Percentage (%)
77.106
Reliability Coefficient (Cronbach Alpha)
0.972
Note. KMO=0.923, Bartlett’s test of Sphericity: Approx.Chi-Square
= 1930.637, p < 0.001.
C. Correlation Analysis
The results tabulated in Table 3 show that downward
communication (r=0.772, p<0.01) has the strongest
correlation with employee performance, followed by
horizontal communication (r=0.523, p<0.01). The results
indicate that there are positive correlations between employee
performance and the independent variables.
Table 3. Correlation between the Independent Variables
and Employee Performance
(HC)
(DC)
(EP)
Horizontal
Communication (HC)
1
Downward
Communication (DC)
0.439**
1
Employee Performance
(EP)
0.523**
0.772**
1
**Correlation is significant at the 0.01 level (2-tailed).
D. Multiple Regression Analysis
Table 4 shows the multiple linear regression analysis
among the independent variables and employee performance.
The results indicate that 63.9 percent (R2=0.639) of the
variance of employee performance can be explained by the
two independent variables. The analysis shows that all
independent variables have a significant positive relationship
with employee performance. Downward communication
(β=0.672, p<0.001) has the strongest relationship with
employee performance, followed by horizontal
communication (β=0.229, p<0.001). Therefore, hypothesis
H1 and H2 are accepted.
Table 4. Multiple Regression Analysis among the
Independent Variables and Employee Performance
IVs
Employee Performance (DV)
Result
Beta,
β
Sig.
B
Std.
Error
Horizontal
Communic
ation (HC)
0.229
***
0.000
0.298
0.081
H1
Accepted
Downward
Communic
ation (DC)
0.672
***
0.000
0.449
0.041
H2
Accepted

Exploring the Impact of Communication on Employee Performance
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Retrieval Number: C12131083S219/2019©BEIESP
DOI:10.35940/ijrte.C1213.1083S219
F value
103.380
R Square
0.639
***Significant at the 0.001 level.
V. DISCUSSION
The findings showed that there is a significant positive
relationship between horizontal communication and
employee performance (β=0.229, p<0.001). This implies that
the higher the horizontal communication, the higher the
employee performance. This finding is supported by Ince and
Gil [15], who exerted that in increasing horizontal
communication among employees, it would affect employee
performance in a positive way. Other researchers such as Kibe
[22], Sgobbi and Cainarca [23] also postulated that there is a
positive relationship between horizontal communication and
employee performance. The researchers found that horizontal
communication encourages learning and decision making at
the lower level of hierarchy in the organization. It enables a
higher degree of teamwork among staffs and reflects higher
performance in their works. As reported in the multiple
regression analysis results, downward communication was
found to be significantly related to employee performance
(β=0.672, p<0.001). This finding is supported by Okyere [1],
who postulated that there is a positive significant relationship
between downward communication and employee
performance. Downward communication is expected to share
information between superiors and subordinates. Frequent
downward communication can reduce unnecessary burden
and improve employee performance in the organization.
Other researchers such as Abdullah and Hui [24], found that
downward communication inspires employees with the way
the information is delivered and received. Junior staffs usually
receive information about their works from senior staffs in the
organization. Hence, downward communication enables
junior staffs to understand expectations from the senior
leaders in performing their tasks [10].
VI. CONCLUSION
The findings of this study provide empirical evidence to the
management to ensure effective downward and horizontal
communication take place in the organization. For this to
happen, management may focus on the development of soft
skills to increase the ability to express and communicate
among the employees. Management may organize more
activities such as inter-departmental meetings to create
quality bonding among superiors and subordinates. Proper
training and development plan should be established to
realize effective communication in the organization [25].
ACKNOWLEDGMENT
The authors thank the Ministry of Education Malaysia,
Universiti Teknologi Malaysia (GUP Tier 2: 15J99) and
Azman Hashim International Business School for providing
financial support to publish this paper.
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ISSN: 2277-3878, Volume-8 Issue-3S2, October 2019
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& Sciences Publication
Retrieval Number: C12131083S219/2019©BEIESP
DOI:10.35940/ijrte.C1213.1083S219
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