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Communication is the lifeblood of an organization. Without it, organizations would be unable to function effectively. Communication within organizations can take various forms but they all have the same basic purpose: the transfer of information from one party to another, whether it is a Chief Executive presenting annual performance statistics, or a manager notifying his team of a change to working practices.
The Importance of Organizational Communication
Internal communication is vital to organizational success simply because organizations involve people, and people cannot interact with each other without communication. Without it, nothing would happen. For example, employees would have no knowledge of organizational objectives, they wouldn't know what their roles/responsibilities were, in line with these objectives, they would not be able to perform effectively and they would therefore be unable to contribute to organizational success. Generally speaking though, communication is a basic human skill and people communicate with each other on a daily basis. However, in order to thrive and grow, an organization must strive not merely for communication but for effective internal communication.
A study by Headlines has found that the UK would be £50 billion a year better off if organizations made more effort to communicate with their employees. Good communication ensures 'buy-in' to organizational messages and goals, resulting in employee engagement, which in turn results in increases in (among others) employee retention, productivity and profitability. The Headlines survey revealed that organizations who increase their employee engagement by 10% can add up to £1,500 in gross profit per employee. [1]
Strategic Communication
An organization’s strategy will have little chance of success unless it is properly communicated. Therefore, all leaders and managers should orientate their communications towards the delivery of their organization’s strategic priorities. [2]
However, too often internal communication is a last minute add-on to the business process rather than an integral part. It is only when internal communication is fully integrated as a factor in business planning that it can have a truly positive effect.
The following diagram demonstrates how communication objectives must be driven by the business strategy which, in turn, needs to be influenced by measurement and feedback from the organization.
Feedback is vital to the success of all organizations and, when related to the success of previous communications or the organization’s present state, is particularly important in helping to frame future messages. For this reason, what should be measured is not communication inputs and outputs such as how many hits there have been on the website, but the success or otherwise that there has been in meeting business objectives.
Communication Channels and Campaigns
There are many different communication channels available to organizations today. Eileen Scholes, in her widely respected Guide to Internal Communication Methods, outlines the main ones used by organizations. [3]
Communication channels can be categorized by delivery mechanism and by function. Delivery mechanisms are defined by the type of media, whereas delivery functions are categorized by the role that they perform for the organization. For example:
Delivery mechanisms
Examples
Face-to-face
Meetings, one-to-one meetings, team briefings, cascades and ‘walking the talk’.
Print-based media
Magazines, newsletters, circulars, briefing packs, letters and memoranda.
Electronic media
Phones (landline and mobile), Blackberries and PDAs, audio-conferencing, voice mail, fax, video and business television.
Computer
Email, multimedia, web-conferencing, internet and intranets, corporate portals, social media and instant messaging.
Delivery functions
Explanations and examples
Fast news
A method of getting news onto everybody's desk fast or at an agreed time, e.g. instant emails to global workforces, forced messages onto PC screens and intranet home pages, global TV broadcasts.
Face-to-face
A method of ensuring that everyone in the organization can receive a face-to-face briefing on an important subject (often around change issues), such as team/departmental meetings.
Instructional
A method for ensuring that instructions can be communicated and acted upon throughout the organization, e.g. email bulletins.
Other news and information
A method for the delivery and subsequent retrieval of all company news and information, e.g. newsletters, intranets and magazines.
Each of the communication channels has its own strengths and weaknesses, but a key part of any successful communication campaign is the selection of the right channel or medium to deliver a message. The diagram below provides a continuum of different communication channels and their effectiveness.
Despite the growing number of communication options available, humans still respond most to face-to-face interaction. The general rule is that the more a message needs to change someone’s behavior or gain buy-in and understanding, the more it must be delivered face-to-face. Selection of the right communication channel depends on an understanding of the communication objectives, key messages and audiences, and the strengths and weaknesses of the available channels.
Involving Employees
Communicating effectively with employees is critical to an organization’s success. The benefits of making people feel involved and empowered include increased productivity and reduced staff turnover. Evidence shows that organizations that involve their employees benefit from increased motivation and commitment. [4] By informing and consulting employees, organizations can become more efficient and effective. Employees who know what is going on in their organization are more likely to feel motivated to work towards organizational objectives.
Consultation is an ongoing, cyclical process that involves organizations giving information to their employees:
- offering them the opportunity to discuss and ask questions
- listening to and taking account of what their employees have to say
- making decisions
- communicating these decisions back to their employees, who in turn provide feedback
Subjects that might affect employees and may, therefore, require consultation include:
- market developments
- strategic plans
- working time and practices
- training and development
- mergers and acquisitions
- redundancy
- employment plans
- health, safety and environmental issues
- equal opportunities
- restructuring or reorganization
- pay and pensions
- data protection
Developing and communicating clear employee information policies and procedures in consultation with employees are essential to creating an effective workplace. Employees can only perform at their best if they know their duties and rights from the outset. They also perform better when they are aware of issues affecting the organization that may ultimately affect them. Providing timely, regular information updates gives employees the opportunity to make their opinions heard and makes successful consultation possible.
Internal Marketing
Internal marketing is all about turning traditional marketing practices (such as market research, segmentation, advertising and promotion) inwards in order to improve quality, effectiveness and employee engagement. Marketing generally focuses on external exchanges, i.e. between an organization and its clients, customers, stakeholders, the media, the public and anyone else outside the organization. With internal marketing, the argument is made for the value of marketing in internal exchanges, i.e. between the organization and its employees.
The aim of internal marketing is to get employees to engage with the organization and support its vision by delivering its brand promise. This will reflect positively in their performance, which in turn will convince customers to believe in it.
Internal marketing is the best method for getting employees to make a connection with the products and services of an organization. Without that connection, it is likely that employees will weaken the expectations set by external promotion and advertising. It stands to reason, therefore, that highly competent, well-informed, customer-oriented, professional front-line employees are more effective at building brand appeal and customer loyalty than any external marketing or promotional efforts. A fired-up, motivated employee who cares deeply about the organization will (through their performance) make it obvious to their colleagues and their customers how important the organization is to them, which will then encourage others to engage with the organization.
Internal marketing also has other benefits for the organization – it creates employees who are engaged in their work and doing their jobs to the best of their ability. This impacts on staff turnover as it makes for happier, more satisfied employees who will be less inclined to leave the organization to work elsewhere. It also makes the organization an ‘employer of choice’ when it comes to the recruitment of new employees, attracting the best candidates for hotly contested positions.
Good internal marketing is of enormous value to the organization – it produces a first-class brand. An organization that has a reputation for having the best employees, treating its customers well and delivering exceptional service/products is an organization with a valuable asset. It is reputation alone that sets an organization apart from its competitors.
Communicating Change
Within a change program, communication has a vital part to play in ensuring that the business objectives are understood and delivered. World–renowned change management expert Professor John Kotter identifies under-communication as one of the eight most common mistakes in a change program. [5] It is, therefore, essential that the senior manager in charge of the change program takes responsibility for overall communications, working with communications specialists (where possible) to ensure that the information cascaded throughout the organization is clear, timely and accurate.
A well-developed communication strategy can facilitate change, and act as a catalyst for change, by providing channels for feedback. It is vital that those responsible for internal communication work closely with senior management to agree on the culture and communication style it wants to adopt going forward. Usually, this will be based on the organization’s values.
Conclusion
Internal communication has grown to become much more than just in-house newsletters, magazines and intranet sites. The dynamic nature of 21st century business and growing organizational change means that open and honest communication with employees has become increasingly critical to business success.
References[2] Thomas, J.L. (2002).
Srategic Communication Management: The Twelve Dimensions of
Strategic Communication Management [online]. Available
here. [Accessed 11/08/2023.]
[3] Scholes, E. (1999). Guide to Internal Communication Methods. Gower.
[4] Purcell, J.A., Kinnie, N., Hutchinson, S., Rayton, B.A., & Swart, J. (2003).
Understanding the People and Performance Link: Unlocking the Black Box [online]. Available
here. [Accessed 11/08/2023.]
[5] Kotter, J. (1995).
Leading Change; Why Transformation Efforts Fail [online]. Harvard Business Review. Available
here.