Importance and Role of Internal Communication in Organizations PDF

See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/288854667 Importance and Role of Internal Communication in Organizations Article in Applied Mechanics and Materials · November 2015 DOI: 10.4028/www.scientific.net/AMM.806.302 CITATIONS...

See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/288854667 Importance and Role of Internal Communication in Organizations Article in Applied Mechanics and Materials · November 2015 DOI: 10.4028/www.scientific.net/AMM.806.302 CITATIONS READS 8 14,421 2 authors, including: Mirjana Stevanović Visokaškola za poslovnu ekonomiju i preduzetništvo Beograd Srbija 48 PUBLICATIONS 38 CITATIONS SEE PROFILE Some of the authors of this publication are also working on these related projects: "INOVATIVNA SRBIJA" View project All content following this page was uploaded by Mirjana Stevanović on 14 September 2018. The user has requested enhancement of the downloaded file. Applied Mechanics and Materials Vol. 830 (2016) pp 302-307 Submitted: 2015-08-11 © (2016) Trans Tech Publications, Switzerland Accepted: 2015-12-02 doi:10.4028/www.scientific.net/AMM.830.302 Online: 2016-03-03 Importance and Role of Internal Communication in Organizations Mirjana I. Stevanović1,a*, and Aleksandra M. Gmitrović2,b 1 Higher Business School of Professional Studies ″Prof. dr Radomir Bojković″, Kruševac, Serbia 2 Telekom Srbija S.C., Executive unit Smederevo, Smederevo, Serbia a [email protected], [email protected] Keywords: internal communication, business communication, organization, market liberalization. Abstract. Market liberalization has accelerated and strengthened the pressure of competitors in an open struggle for the retention of existing and favor of new clients. It is necessary to understand the importance and necessity of good business communication, because if business communication in the organization is at a higher level, then the relationship between the organization and its clients is at a higher level as well. Employees in the organization are the ones who represent it, so if the internal communication in the organization is at a higher level, then the quality of services provided to clients is also at a higher level. Effective communication between organizations and customers enables an organization to achieve better position in the market as a modern organization that provides products and services at high quality level. Basics of internal business communication in an organization Internal business communication is communication between people who are employed in an organization or between parts of an organization or between management and employees. It includes all communicative and information activities among the members of an organization. Internal business communication occurs as a mediator between the leadership of the organization and employees in achieving business goals and as well as a tool that enables employees to meet social and psychological needs. This form of business communication should take place at all levels of the organization, because without it functioning of the organization would not be possible. The essence of internal communication [1,3] is two-way communication, through which the relations of good understanding between management and employees are created and maintained. Good internal communications are the basis for good relations in any organization. Good relationships create a positive atmosphere from which positive energy is created and from the positive energy the enthusiasm and creativity are being born. Only highly motivated and loyal employees, with the developed sense of belonging to the organization, employees who identify with the organization in which they work in are ready to struggle with a lot of passion to achieve its objectives as they experience an organization as their own and its successes as their own. Employees are the best ambassadors of the organization, and nothing can provide it with such a good or bad image, as the stories of those working for it. It is of great importance for the good and quality internal communication [5-8] between employees of the organization to encourage teamwork among employees. Various forms of teamwork allow people from different parts of the organizations to communicate directly and thus solve common problems. The organizational structure of an organization is determined by the size of the organization and its primary activity (e.g. providing services to physical and legal persons). Complex organizational structure affects the complexity of the process of internal communication [9-13]. Every organization needs to adopt certain acts (e.g. Rulebook) establishing an organizational and hierarchical structure of the organization, ensuring the exercise of its activities in accordance with strategic objectives and business principles. In the organization, there are two basic forms of communications which are the formal and informal communication. Formal communication is one that is planned; it is official in relation to the organization, carried out in exactly the right shape and has the support of or is based on management decisions (press organizations, official meetings, acts of the organization). Legal All rights reserved. No part of contents of this paper may be reproduced or transmitted in any form or by any means without the written permission of Trans Tech Publications, www.ttp.net. (ID: 178.222.12.197-17/12/15,19:39:14)  Applied Mechanics and Materials Vol. 830 303 framework and organizational structure determine the formal communication channels. The very channels of communication within the organization, to be effective, must be consistent with the internal organization and the organizational structure of the company. Informal communication in organizations is a network that relies on personal contacts of employees and as opposed to formal communication is not officially determined and defined. Vertical and horizontal communication in the organization Formal communication is performed within the organizational hierarchy, from higher to lower levels, or vice versa or just in one level. Vertical and horizontal communications differ. Vertical communication is the dominant form of communication between employees. The primary function of this form of communication is to collect information for decisions-making, and it is performed in two directions. Within the vertical communication we distinguish two directions of information flow, namely: 1. Communication from the top-down (downward communication) and 2. Communication from the bottom-up (upward communication). Due to the differences in status and powers between managers and employees, vertical communication often provides a distorted picture of the actual situation in the organization because of incorrect, incomplete and ambiguous information. Downward communication is such form of communication where managers send employees information regarding business policies, guidelines and plans. It flows vertically from the top down, for example, from the managers to the employees. This form of communication consists of messages informing the employees in the organization about what to do and how to do it. Message in this form of communication goes through different hierarchical levels, so that it often happens that the message becomes less accurate, and therefore it is recommended that they are in written form. Vertical communication is limited due to the nature of relations of dominance and subordination of workers. Due to the different status positions the employed in the organization do not have the same access to information, which can lead to inaccurate and incomplete information. Such information could affect the occurrence of certain inefficiencies in the work of employees. Other forms of communication in the organization also depend on good downward communication. Upward communication is a form of communication where employees of the organization communicate information to the superiors about their ideas, requests, suggestions, complaints, and the like. Messages are often related to problems that are related to business, customer complaints, and the like. These messages are of great importance for managers, because according to them defects could be corrected correct and thus improve the business operation. Input communication is the least effective. The reason for this is that individuals at higher levels often do not respond to messages coming to them from bottom, while the lower-level employees are often reluctant to address those above them, especially when it comes to bad news. Also, it has been concluded that the supervisors used to talking more than to listen while for subordinates the opposite is true, they are accustomed to listening and less accustomed to speaking. Input communication is carried out in several ways. Meetings - should be held regularly, in order to comprehend all the views and problems of employees. For managers, it is highly important for them to know what their employees think. Their advantage consists in the fact that in this way trust between superior and subordinate develops, the superiors have an insight into the employees problems, know their views and on the basis of it they can make a proper decision. The disadvantage of this form of communication is that the representatives of the employees often do not transfer all the opinions of employees, which can greatly affect the validity of the decision which the superior, in this case the head of the department, may make. Visiting employees - an advantage of this form of communication is that the employees in direct communication with their superiors can express their views. Because they talk directly with 304 Research and Development in Mechanical Engineering the superior and on the occasion can present their observations, the employees feel appreciated. One of the main disadvantages of this communication is to a certain number of employees are reluctant to expose their problems when they are directly found face to face with the superior. In addition to this, there is a problem with the superiors, because with the visits of employees they delay their work and current liabilities. Surveys for employees -consists of questions related to organization's business and on the issues relating to the personal satisfaction of employees (attitude towards communication in the organization, work discipline, site content, etc.). The survey is not mandatory and the results of the survey should be available to all workers. Based on the results of the survey it can be determined what the opinion of employees is in relation to certain issues, which helps managers to make the right decision. Horizontal communication is carried out between individuals of the same organizational level. In vertical communication between people that are in unequal position, while in the horizontal communication, people are on the same organizational level and start from the same position and have equal influence on decision making. Horizontal communications are very important since they are improving coordination between groups, departments and services. Because it enables individuals to communicate with their peers, horizontal communication increases employee satisfaction. Horizontal communication is the most common form of communication in the organization and it is estimated that two-thirds of all communication flows in the organization of this type. This type of communication allows the coordination and integration of departments and sectors performing relatively independent tasks, and as such is of great importance for the organization. For the organization to provide the services in a quality manner to its clients, it is essential that there is good cooperation between all the employees in the organization. This applies not only to communications between employees within a service, but there also a high level of communication between employees in various departments in the organization has to be built. Only in this way can a satisfied customer be acquired. Formal communication networks may take different forms as shown in Fig. 1. Fig. 1 Centralized and decentralized networks Centralized networks are the traditional forms of communication and are related to the vertical hierarchical organization. Its main features are: employees do not have equal access to information, information is transmitted through an intermediary controlling the flow of information, effective for simple routine tasks, reduced motivation and satisfaction of employees, hampered coordination. Decentralized networks are the modern forms of communication and monitor the operational logic of decentralized, horizontal organization. Its main features are:  Applied Mechanics and Materials Vol. 830 305 employees have equal access to information, information is transmitted directly, simple and effective coordination, greater motivation and satisfaction of employees because they are involved in decision making, effective for complex, sophisticated tasks In practice, the decentralized communications have shown as much better in relation to the centralized. Informal communication in the organization Informal communications in an organization are a form of communication, where the information is transmitted to an unofficial, informal way, beyond formal communication networks. They do not reflect the internal organizational hierarchy or the hierarchical relationship of organizational units. This form of communication annuls the rank or authority of the persons and can connect members of the organization in all directions, both horizontally and vertically. Employees can transfer whatever they want informal note to anyone in the organizational structure. Employees of the organization associate with their peers, share information, which are or are not work-related. It occurs everywhere where employees gather in groups: in offices, rooms for the break. The informal communication network that develops in any organization is based on rumors and speculation, which spread very fast. But unlike the rumors and gossip, which actually represent information about other people, their attitudes, decisions and intentions, and are based on prejudice and half-truths, rumors can also bring the good news and that, in some cases significantly raises employee morale. Characteristics of informal communication are: Connect individuals who are at different levels in the organization: ignore rank and authority and connect employees in all possible directions - horizontally, vertically and diagonally; They are difficult to control: People can transmit information of their choice and to whom they want; informal information is difficult to be verified if they are not based on facts; Informal communications transmit informal information: information that, as a rule, are not related to the business of the individual; Thy are faster than the formal communications: do not respect organizational boundaries, information is transmitted orally by the principle, "she said – she told," "from mouth to mouth" or " by bush telegraph"; Techniques that are used are created by the users themselves; employees informally communicate in different ways according to the type of information and the aim sought to be achieved. Informal information in the organization is spread based on the "grapevine" model. Various forms of informal networks proliferate, cross and intersect in many places, and in this way, employees can also become members of more informal networks, which are like vines spreading through the organization. Several characteristic forms of informal communication networks have been observed, although they are invisible information paths, as shown in Fig. 2. Single chain- is the least reliable channel of informal communication in the organization. Information is transmitted from one person to another, and in this way it changes its original form, so that in the end it may have a completely different shape. This form of communication may be used when managers do not want employees to have a true image of the situation in the organization and in this way they allow themselves to create a good or bad image of the organization. A chain of gossip - a person carries all of the rumors to everyone around. The basic function a chain of gossip is creating rumors. Gossip transfers rumors are not related to work. 306 Research and Development in Mechanical Engineering Chain of probability - created by one person conveying selected information to certain people spreading them further in a similar manner. The information is usually related to work and estimated as very important, so that the members of the organization transfer them with the intention that more people are familiar with them. Fig. 2 Forms of informal communication networks Cluster chain - its function is spreading an atmosphere of friendship and trust. It is formed by the individuals who transfer specific information only to target selected individuals, some of which are expected to reciprocate with a service or trust. Managers are advised to use in addition to formal and informal networks, because they are very jagged and the information is transmitted very quickly, especially when it is important that some interesting information quickly flows through the organization. For information that is difficult to verify caution is advised, because for such information interpersonal relationships may be disturbed and climate of mistrust and conflict can be developed. Summary The importance of internal communication in organizations is immeasurable, the more organization records success in the operation, which eventually results in higher profit, which is the ultimate goal of any organization, company. A lot of attention should be paid on the upward communication in the organization, because employees are the ones who are in daily and direct contact with the clients and they have the most accurate information about the reasons of pleasure or dissatisfaction with services’ users, about problems in the provision of certain services and more. Horizontal communication also plays an important role. Through the communication paths a large number of messages is transmitted, which is of great importance for business operations of the organization. Every organization needs to pay special attention to this kind of communication due to the fact that it is represented in two-thirds of the total communication flows. It can be concluded that one of the tasks of the organization is establishing two-way communication between employees, between employees from different departments as well as between employees and management, because it realizes teamwork and thereby ensures the quality of services provided. Quality and efficiency of communication among the employees and among the users of the organization, the users’ trust and satisfaction, sales service, the market share of the organization, increase of profits, and creation of competitive advantage are most important factors for continued organization’s growth.  Applied Mechanics and Materials Vol. 830 307 References L.M. Omilion-Hodges, C.R. Baker, Everyday talk and convincing conversations: Utilizing strategic internal communication, Business Horizons 57 (3) (2014) 435-445. D. Vevers, Internal communication, In: Handbook of Financial Public Relations, Butterworth- Heinemann, 1989, pp. 35-45. L.F. Jacobsen, K.G. Grunert, H.A. Søndergaard, B. 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