Effective Organizational Communication: a Key to Employee Motivation and Performance

Abstract

Organisational Communication, in today’s organizations has not only become far more complex and varied but has become an important factor for overall organizational functioning and success. The way the organization communicates with its employees is reflected in morale, motivation and performance of the employees. The objective of the present paper is to explore the interrelationship between communication and motivation and its overall impact on employee performance. The paper focuses on the fact that communication in the workplace can take many forms and has a lasting effect on employee motivation. If employees feel that communication from management is effective, it can lead to feelings of job satisfaction, commitment to the organisation and increased trust in the workplace. This study was conducted through a comprehensive review and critical analysis of the research and literature focused upon the objectives of the paper. It also enumerates the results of a study of organizational communication and motivational practices followed at a large manufacturing company, Vanaz Engineers Ltd., based at Pune, to support the hypothesis propounded in the paper.

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Interscience Management Review Interscience Management Review
Volume 2 Issue 2 Article 13
July 2009
Effective Organizational Communication: a Key to Employee Effective Organizational Communication: a Key to Employee
Motivation and Performance Motivation and Performance
Kirti Rajhans
National Institute of Construction Management & Research
, kirti.rajhans@gmail.com
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____________________________________________________________________________________________________
Effective Organizational Communication: a Key to Employee
Motivation and Performance
Kirti Rajhans
Asst. Professor, National Institute of Construction Management & Research,
Pune- 411045, India.
Email: kirti.rajhans@gmail.com
_________________________________________________________________________________________________
ABSTRACT:
Organisational Communication, in today’s organizations
has not only become far more complex and varied but has
become an important factor for overall organizational
functioning and success. The way the organization
communicates with its employees is reflected in morale,
motivation and performance of the employees. The
objective of the present paper is to explore the
interrelationship between communication and motivation
and its overall impact on employee performance. The
paper focuses on the fact that communication in the
workplace can take many forms and has a lasting effect on
employee motivation. If employees feel that
communication from management is effective, it can lead
to feelings of job satisfaction, commitment to the
organisation and increased trust in the workplace.
This study was conducted through a comprehensive review
and critical analysis of the research and literature focused
upon the objectives of the paper. It also enumerates the
results of a study of organizational communication and
motivational practices followed at a large manufacturing
company, Vanaz Engineers Ltd., based at Pune, to support
the hypothesis propounded in the paper.
Keywords: Organizational Communication, Employee
Motivation, Performance
I. INTRODUCTION:
Business all over the world today is very challenging. To
stay profitable in the highly challenging and competitive
global market economy, all factors of production, i.e. men,
machine and materials, should be wisely managed. Among
the factors of production, the human resource constitutes the
biggest challenge because unlike other inputs, employee
management demands skilful handling of thoughts, feelings
and emotions to secure highest productivity. Organisational
communication plays an important role in this challenge.
Managers have traditionally spent the majority of their time
communicating in one form or another (meetings, face to
face discussions, memos, letters, e-mails, reports etc.).
Today, however, it has become an indispensible part of their
work. An effective management of production processes
requires greater collaboration and teamwork among workers
in different functional groups. Hence, to manage the
existing performance of the employees and to motivate them
for better performance, efficient communication practises
have become more important in all organisations.
The aim of the present study is to purport that positive
perceptions around organisational communications serve to
both boost motivation among current employees as well as
foster employee advocacy, ultimately resulting in a
strengthened employee brand. There exists a correlation
between organisational communication and employee
motivation. The study indicates that employees are two
times as likely to go to the extra mile for the organisation
and almost four times as likely to recommend their company
if they are satisfied with the ways in which their company
communicates on different occasions. If the employees feel
that management is communicating in an efficient manner,
it motivates them to perform better and develops a team
spirit which is very essential for the smooth functioning of
the organisation. A motivated employee is a valuable asset
which delivers immense value to the organisation in
maintaining and strengthening its business and revenue
growth.
II. LITERATURE REVIEW
A review of the literature with respect to organisational
communication reveals a central, shared emphasis on the
issues of control and coordination through proper
communication. Organisational communication research
has evolved considerably from the early conceptions of
communication and its role in the organisation. Recognition
for the importance of communication to the management
process can be attributed largely to the work of Chester
Barnard (1938) who maintained that communication was the
very “heart” of the management process. The human
relationships movement of the 1940’s contributed
significantly to the notion that communication in
organisations should be a two-way process. It emphasized
the concern for employee attitudes and satisfaction,
stimulated research on employee involvement in decision
making, the two-step flow of communication, and upward
and downward communication flow.
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In 1950’s, research on the effects of feedback on employee
performance and climate research was initiated. The
problem of upward communication distortion was the focus
of attention and research methodologies like ECCO (refers
to Episodic Communication Channels & Organizations-
Davis, 1953) were developed. The term “communication
audit” was first used by Odiorne(1954) as a description of
the process used to assess the accuracy of management’s
perceptions of subordinates’ communication.
Communication audit methodologies advanced a general
systems approach to the study of organizational
communication.
In modern days, we understand ‘communication’ as one of
the most dominant and important activities in organizations
(Harris & Nelson, 2008). Fundamentally, relationships grow
out of communication, and the functioning and survival of
organizations is based on effective relationships among
individuals and groups. In addition, organizational
capabilities are developed and enacted through “intensely
social and communicative processes” (Jones et al., 2004).
Communication helps individuals and groups coordinate
activities to achieve goals, and it’s vital in socialization,
decision-making, problem-solving and change-management
processes.
Internal communication also provides employees with
important information about their jobs, organization,
environment and each other. Communication can help
motivate, build trust, create shared identity and spur
engagement; it provides a way for individuals to express
emotions, share hopes and ambitions and celebrate and
remember accomplishments. Communication is the basis for
individuals and groups to make sense of their organization,
what it is and what it means. D’Aprix (1996) has given the
hierarchy of employees’ communication needs (refer
Exhibit no. 1) which reflects the above mentioned points.
We can quote Lukazewski who says “The greatest
continuing area of weakness in management practice is the
human dimension. In good times or bad, there seems to be
little real understanding of the relationships between
managers, among employees, and interactions between the
two. When there are problems, everyone acknowledges that
the cause often is a communication problem; so now what?”
(Jim Lukazewski, 2006)
If we consider the role of motivational practices followed in
the organization, we can easily find a solution to the
‘communication problem’ mentioned above. Motivating is
the work which managers perform to inspire, encourage and
impel people to take action (Louis Allen 1986). To motivate
the employees, the employee must be reached and to reach
him there must be a completed understanding of the
complexity of his make-up (Louis Allen 1986). Motivation
efforts must be directed towards improving organization
operations. To be effective, however they must also be
designed to show benefits to the employee. In fact,
motivation can best be accomplished when workers are able
to merge their personal ambitions with those of the
organization.
Traditional management methods (Theory X) might not be
the only way to get people motivated. Instead, you could
take a different approach (Theory Y) and achieve the same
if not more (MC Gregor, 1960). Theory Y, based on the
integration of individual and organization goals, states that a
person’s commitment to an objective is a function of the
rewards for its achievement. Theory Y seems to be the right
approach which requires much management efforts but the
effects of it would be long lasting for modern organizations.
Campbell and Pritchard (1976) define motivation as a set of
independent and dependant relationships that explains the
direction, amplitude and persistence of an individual’s
behaviour holding constant the effects of aptitude, skills,
understanding of a task and the constraints operating in the
work environment.
Atkinson (1964) defines motivation as the contemporary
immediate influence on the direction, vigour and persistence
of action. The relationship between the employer and the
employee should be of mutual understanding with a view to
facilitate the employee to identify himself with his work and
with the business he is working for. Lack of motivation in
return, affects productivity. A number of symptoms may
point to low morale: declining productivity, high employee
turnover, increasing number of grievances, higher incidence
of absenteeism and tardiness, increasing number of
defective products, higher number of accidents or a higher
level of waste materials and scrap (William Day 1978). A
motivated employee is a loyal employee and to be loyal
implies that the employee supports the actions and the
objectives of the firm. The appearance of the job as a whole
has, in fact a bearing on the willingness and quality of an
employee’s performance (Martin Bruce 1962).
Internal communication plays a very vital role in
implementation of all these ideal motivational practises in
the organisation. To quote a recent article in the ‘Sunday
Times’, ‘ If people understand the bigger organisational
picture they will be more willing to stay for the ride and
more motivated to do the job you need them to do.’(Sunday
Times, April 28, 2002). It is this making people understand
the bigger picture, is an important and complex job that
demands attention from practising managers. Indeed, the
‘manager who suffers from poor communication skills is
likely to feel frustrated most of the time. And he is even
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more likely to be surrounded by a number of unhappy and
unproductive subordinates’ (Andrews and Baird 1989).
III. A CASE STUDY OF ORGANIZATIONAL
COMMUNICATION IN VANAZ ENGINEERS LTD.:
This study presents findings on the effects that
organisational communication has on employee motivation
and performance. The organisation chosen for this research
study is, Vanaz Engineers Ltd., a large manufacturing
company well known in India for its diversified and quality
products. The company specializes in the production of
alternate fuels, auto components, valves, pressure/flow
control devices, Vanfog, Auto LPG dispensing station and
castings and forgings. Vanaz is proud to manufacture the
first indigenous CNG kit for auto rickshaws duly approved
by VRDE and ARAI. It is also the pioneer manufacturer of
domestic pressure regulators in India. The company is
ISO/TS 16949:2009 and DIN EN ISO 9001:2008 certified
and has set-ups at two places. The unit studied in this case is
a well established set up in Pune, Maharashtra with approx.
10,000 square metres’ establishment, consisting of various
manufacturing departments, facilities and ancillary
departments like R&D, Quality Assurance, Laboratory,
Maintenance etc. The company manages its diversified
portfolio with a very close-knit organisational structure
which follows effective organizational communication.
A. Research Methodology:
The methodology used was interviews of the employees of
Vanaz Engineers Ltd. and communication efforts recording
sheets given to them. The interviews and the communication
efforts sheets were completed by 10 percent of the company
population, randomly selected according to each
department's population base.
B. Results and Discussion:
From the analysis of the information received, it was found
that Vanaz implements various effective organisational
communication practises which contribute a lot to motivate
its employees and increase their performance and loyalty
towards the organisation. The company has a lowest staff
turnover ratio. The organisation values its employees and
understands the importance of employee motivation in
maintaining the productivity and also the role of
communication in employee motivation as sometimes even
the most basic communication errors can lead to employee
dissatisfaction. This is clearly reflected in their policies and
practices. After the study of organisation communication of
Vanaz Engineers, it was found that facilitating effective
communication has helped to improve employee motivation
and performance in the company, in several ways as
follows:
Information Distribution
The company distributes timely and relevant information to
employees through circulars and notices. All information
regarding the company which employees consider vital,
such as changes in the company's policies or planned
changes in the workforce, future plans, company’s vision
etc. are conveyed with context and rationale through proper
channels and in language they understand. Even profits of
the company are declared and 5 percent of the profit share is
distributed among the employees apart from their salaries.
Immediate action is taken in case of any problem or
ambiguity reported in administrative communication. This
not only makes the employees feel respected by the
company, it also helps combat rumours that can lead to
various problems.
The department heads and supervisors find their task of
communicating with the workers and motivating them to
perform as per the management expectation, to be very
challenging. They also have to manage the upward
communication with top management, updating and
convincing them about the shop floor problems and
requirements. To avoid any chance of miscommunication
and problems arising thereof, the company follows its own
communication control plan in form of regular review
meetings for open communication across all ladders of
communication. Minutes of each meeting are circulated
across all departments and accordingly information and
action plans are known by all employees.
1) Relationships
A workplace operates on the effective relationships built
between employees, managers, departments and all levels of
the company. The results of the study indicate that in
‘Vanaz Engineers’, clear and honest communication helps
to encourage and strengthen the relationships, which can
assist employees in reaching maximum productivity. The
managers in the company maintain a productive relationship
with staff members by holding regular departmental
meetings, assisting and guiding employees in their work and
progress and recommending them for career development
programs.
Any type of noteworthy and good work of is appreciated in
weekly co-ordination meeting held by Managing Director of
the company and is recorded in the minutes of the meeting.
These minutes are circulated to every department and the
information of the work and the name of the person reaches
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to everyone in the organisation, motivating them for similar
personal contribution.
2) Decision-Making and Employee Efforts
The company's decision-making process includes active
communication throughout the organization. Employees are
allowed in as many ways as possible to offer their ideas and
opinions, and be part of the decision-making process. There
is a suggestion scheme though which every body can give
his suggestion or idea. The department heads and other
officers can give their ideas for improvement through
continuous improvement proposals as well as weekly
coordination meetings. If management finds it suitable, the
ideas are implemented. This open communication allows
employees to be a part of company decision-making and
participate in the company's success.
In case of any extraordinary suggestion for improvement or
effort done by any employee in matters of concern like
safety, quality, cost cutting etc., the effort is communicated
to top-management by the operations in-charge and the
employee is recommended for written appreciation and
monetary rewards. This motivates the employees and
increases their sense of belongingness towards the
organisation.
3) Improvement
Skill set training programs with managers is the way in
which most employees receive their career development
assistance. If managers are not monitoring employee
performance and developing training programs to improve
productivity, then the skill sets of the employees begin to
suffer. Communication between the employee and manager
is critical in developing training programs that improve the
employee's job skills and motivate them to succeed. The
management of ‘Vanaz’ understands this fact and several
innovative measures are taken in this regard.
A ‘Training Needs Register’ is maintained in every
department to identify and note each and every employee’s
training needs. The Operations in-charge monitors employee
performance and identifies specific training needs and
forwards them to management. Employees can also convey
their own training needs. According to the requirements of
the employees, frequently in-house training programs are
conducted by experts and external agencies for education
and career development. If required, employees are sent to
company’s customer sites for training and also to external
training programmes. Thus the company is maintaining
strong workplace relationships which help employees
achieve high levels of productivity and supports staff
motivation.
4) Communication Culture and Teamwork
The company has developed a good communication culture
which is beneficial for developing the team spirit and
efficient teamwork with clarity of roles. The ongoing two-
way communication is the foundation for employee
motivation and organizational success in this company. The
‘culture of communication’ is helping the organisation in a
crucial way by enhancing employee understanding, building
trust, stimulating engagement and better performance in the
changing scenario.
IV. CONCLUSION:
It is a self-evident fact that organisational communication
plays a vital role in employee motivation and performance
as real changes are taking place in modern organisations
which confront the new reality of tighter staffing, increased
workloads, longer hours and a greater emphasis on
performance, risk-taking and flexibility. Employee
communications have a crucial role to play in the
management effort to reorient employees perplexed by
changes, or inform and motivate those who adapt more
readily. Within this general need to communicate there
exists the specialised requirement for effective
communication as an outcome of managing an
organisation’s employee relations.
Today’s organisations are run by multi and cross-functional
teams which show little tolerance for unquestioned
authority. To deal with this situation, the art of persuasion
and the effort to find the correct emotional match with your
audience is necessary. This match means that it is not
enough for communication to be a one-way ticket
(Torrington and Hall 1991). There has to be downward and
upward communication. Effective downward
communication allows decisions taken by the management
of the organisation to be converted into action by
employees, also boosts teamwork, trust, better relations,
productivity and fewer chances of rumours and
miscommunication. Furthermore, it allows for a consistency
of action, and it may stimulate a greater commitment on the
part of employees. Upward communication helps managers
to understand both business and personal issues that affect
employees. In addition, creative suggestions from
employees help management in decision making and
improvement of the organisation.
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Motivation
EXHIBIT NO. 1
Source: D’Aprix (1996)
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