EFFECTIVE COMMUNICATION AND ORGANIZATIONAL PERFORMANCE

Introduction

1.1 Background To The Study

In global business setting, nothing can be achieved without effective communication within the organizational framework for the purpose of internal and external communication. A study conducted by Proctor (2018) revealed that most corporate organizations in Texas, USA has put in place effective internal and external communication has one of the hallmark and the organizational doctrine as a means of achieving organizational performance.

Also, achievement of organizational performance among businesses is becoming very tasking due to increasing level of global competitiveness. In developed nations like USA and France, achieving organizational performance is highly challenging and competitive global market economy depends on all factors of production (i.e. men, machine and materials), should be wisely managed (O’Boyle & Hassan, 2014). Among the factors of production, human resource constitutes the biggest challenge because unlike inputs, employee management demands skillful handling of thoughts, feelings and emotions to secure highest productivity. Effective organizational communication plays an important role in this aspect.

In South Africa, organizational performance is important especially in the busienss perspective because it helps an organization to identify those factors that should be given priority attention in order to improve the organizational performance (O’Boyle & Hassan, 2014). Today organizations in Tanzania believe that the major source of competitive advantage is attained from an organization’s human resources and to enhance organizational performance by effectively building a connecting platform for their human resources (Gondal & Shahbaz, 2012).

Considering the business atmosphere in Nigeria, it has become imperative now more than ever to apply appropriate organizational strategies and technique to achieve organizational performance, since business survival in Nigeria has been a subject of organizational performance being the competitive advantage of successful businesses (Adegbuyi, Adunola, Worlu, & Ajagbe, 2015).

Effective communication has crucial impacts among work groups because organizational communication is a channel to flow information, resources, and even policies. According to Eunju (2009), organizational communication can be broadly defined as communication with one another in the context of an organization. This type of communication, in turn, includes activities of sending and receiving message through various layers of authority, using various message systems, and discussing various topics of interest to the group we belong to or the company we work for (Eunju, 2009).

Several studies emphasize that effective communication can enhance organizational outcomes (Garnelt, Marlowe, & Pandey, 2008). Communication influence on the perception and opinions about persons, communities, organizations, governments, and even society. As a managerial tool, communication is frequently expected to share information with members, to coordinate activities, to reduce unnecessary managerial burdens and, rules and ultimately to improve organizational performance. (Eunju, 2009).

Effective communication is an instrument for organizational change. It is the mainstream of any organization growth. There is need for the interaction and understanding of management-employee relations for it will bring about increased performance of all parties involved in the communication process or chain. According to Banihashemi (2011), communication as a medium, a means to performance ends, or as constitutive, as the end in itself. Communication is a process of transmitting information from one person to another. However, this work intends to analyze effective communications and organizational performance in Nigerian Breweries Plc, Iganmu, Lagos State.

1.2 Statement Of The Problem

In recent times, there have been concerns about effective communication in several organizations in Nigeria including in Nigerian Breweries Plc, Iganmu, Lagos State. This is premised on the popularity of their products which is determined by the external communication strategies in place in the organizations. Also, performance of the organization is also hinged on cooperation between employees which can be achieved through effective internal communication. Hence, any breakdown in internal communication will definitely reduce organizational performance.

It has been globally proved that effective communication is essential to effective team performance and overall performance of any organization; this is just like nerve connections in the human body (Mckinney, Barker, Smith& Davis, 2004). Therefore any organization that understands the importance of communication uses it in their organizational environment. Since, it ensures coordination of factors of production and most importantly material and human elements of organization as an efficient network of change and advancement. However, Based on all these fact, the current researcher is seeking to identify the link between effective communication and organizational performance of Nigeria Breweries Plc. This is necessary based on the obvious problem of poor financial performance, poor customer service, low social responsibility, low employee stewardship caused by ineffective communication in Nigerian Breweries Plc.

Moreover, Robins (2006) pointed out that effective communication process is initiated through the following means the sender-encoding-the message-the channel decoding-the receiver- noise and feedback. It is estimated that managers spend over 80% of their day communicating with others. Since most of the basic management process- planning, organizing, leading and controlling – cannot be performed without effective communication. Based on these, the current study is examining the techniques that can be introduced for improved communication system.

Generally, in all business organization, the importance of effective communication cannot be overemphasized; it is the means by which people interact and work with one another effectually. This means that nothing can be achieved in an organization without effective communication. Communication skills are important in all human endavours, including business.

According to Stephen (2011), communication is a critical factor in directing and mobilizing the workforce towards the accomplishment of the organizational goals or objectives. By creating understanding it enhances co-operation and promote effective performance. According to Williams (2007) smart managers understand that the end effective, straight forward communication between managers and employees is essential for success.

Importantly, the relevance of effective communication keeps advancing as the world becomes a Global village. The need to become visible to the world has made many organizations to embrace new technology that would increase organizational performance. There are also many issues affecting communication ranging from difference in sex, role of silence, inference of government and cross- cultural inference.

Many organizational disputes originate due to failure in effective communication. Hence it is important to emphasize that in communication, emotions, environment, psychological and technical characteristics of the medium is relevance to enhance the organizational performance. In the view of Okoye (2004), psychologically transmission goes beyond reception of information but understanding and feedback. Most organizational conflict has been traced to breakage in communication as supported by (Lee, 2003; Scott, 2004). According to Chudi –Oji (2013), In spite of the laudable roles of effective communication in improving organizational performances, it is regrettable that some organizations pay lip service to the maintenance of effective communication systems. Therefore, the current research seeks to find out the communication gap in Nigerian Breweries Plc.

1.3 Objectives Of The Study

The general objective of this study is to analyze effective communication and organizational performance in Nigerian breweries Plc while the following are the specific objectives are to:

1. Examine the relationship between internal communication and financial performance in Nigerian Breweries Plc, Iganmu, Lagos State.
2. Identify the external communication techniques that improves job quality in Nigerian breweries Plc, Iganmu, Lagos State.
3. Determine the effect of the use of ICT on number of task completed in Nigerian Breweries Plc, Iganmu, Lagos State.

1.4 Research Questions

1. What is the relationship between internal communication and financial performance in Nigerian Breweries Plc, Iganmu, Lagos State?
2. What are the external communication techniques that improve job quality in Nigerian breweries Plc, Iganmu, Lagos State?
3. What is the effect of the use of ICT on number of task completed in Nigerian Breweries Plc, Iganmu, Lagos State?

1.5 Hypotheses

HO1: There is no significant relationship between internal communication and financial performance in Nigerian Breweries Plc Iganmu, Lagos State

HO2: There are no external communication techniques that improve job quality in Nigerian breweries Plc Iganmu, Lagos State

HO3: There is no significant reklationship between use of ICT and number of task completed in Nigerian Breweries Plc, Iganmu, Lagos State

1.6 Operationalization Of Variables

Dependent variable:

Organizational performance which is measured by financial performance, job quality, number of tasks completed

Independent variable:

Effective communication which is captured by internal communication, external communication, use of ICT

y ₌ f(y1, y2, y3)

y ₌ Organizational performance

Where:

y1 ₌ financial performance

y2 ₌ job quality

y3 ₌ number of tasks completed

x ₌ Effective communications

x ₌ f(x1, x2, x3)

Where:

x1 ₌ Internal communication

x2 ₌ external communications

x3 ₌ use of ICT

It can also be stated that the organizational performance is a function of effective communication.

x ₌ f (y1, y2, y3)

Converting this functional relationship into a regression model, it becomes:

x ₌ α0 ₊ α1y1 ₊ α2y2 ₊ α3y3 ₊ μ

Α0 ₌ constant term of the regression model

Α1-3 ₌ coefficients of parameter estimates of effective communication

μ ₌ Stochastic variable

1.7 Significance Of The Study

The following are the significance of this study:

The outcome of this study will educate the business administrators/managers, policy makers and the general public on the benefits of effective communication as an instrument for organizational performance. It will also enlighten on the communication strategies that can bring about organizational performance.

This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic

1.8 Scope Of The Study

This study is limited to the employees Nigerian Breweries Plc Iganmu Lagos State. It will also cover the internal/external communication techniques and the use of ICT in the organization. It will further cover the organization’s financial performance, job quality and number of task completed per day.

1.9 Definition Of Terms

Communication:

Exchanging of information by speaking, writing, or using some other medium

Performance:

Successful fulfillment of all obligations/objectives, in a manner that releases the performer from all liabilities (Jaine, 2015)

Effective communication:

Effective communication is defined as verbal speech or other methods of relaying information that get a point across. Effective communication is when the communicators listens actively, absorbs your point and understands it (Chudi-Oji, 2013).

Organizational performance:

Is the actual output or results of an organization as measured against its intended outputs (or goals and objectives) (Kotter, 1996).