Effect Of Communication On Organizational Development (A Study Of Power Holding Company Of Nigeria [PHCN])

Project and Seminar Material for Business Administration and Management BAM

Effect Of Communication On Organizational Development (A Study Of Power Holding Company Of Nigeria [PHCN])

Chapter One


1.1 Background To The Study

Employee of whatever status needs to participate in the coordination of resource of the organization. Simultaneously an individual also needs to participate in communication.

The reciprocal process of sharing information through symbols, principally the word communication itself denotes the exchanging of ideals and since man is both sharing of feeling and ideals are necessary to sound judgment.

Therefore, communication is essential to sound management, the success of any organization career depends upon the personnel, which ever cannot be successful without proper communication.

An individual employee always observe, analyse and interpret the effects of words upon people as well as the influence of people upon words. Whatever one’s job or ambition, one should learn to apply management purposes and functions to communications. One should realize that his/her success as a person/employee depends on his/her ability to issue, transmit and fulfillmessages, upon his/her attaining profit and profit through useful words that produce appropriate action because action speaks louder than voice (body language). One should also know that without effective writing, speaking, reading and listening, even that decision may result in the worst action. Again one should know that often the most exasperating employee/subordinate/worker is the person who does not share his potentially profitable, ideas, through efficient language, with his co-workers and his company.

An approach to the study of communication tends to explain that various department in an organization and similar area of specialization function largely as information processes that need to be integrated so that management can achieve its purpose of goals and resources, which also include that important resources behaviour.

Lucy (1998) stated that informal communication takes place at all levels from discussions, telephone calls, meetings, observation and so on. The informal network called grapevine, is flexible and can convey nuances, which are lost informal communications. Delighting informal communication more speedier and can cater for local problems more readily than formal communication.

Since information must be communicated at the workplace, to prevent misinterpretation, there is need for improvement in communication in an organization.

Although, information to a large extent determines communication by Lucy laid emphasis on an ambiguous communication which may not lead to appropriate decision and might have negative impact to the organization. Communication therefore, in an organization must produce efficient result.

Donna (2005), opined that one can improve chance for conversational success by considering some factors which add value to an organizational communication. Organizational setting as one of the vital factors to be considered, question such as where will the conversation take place? Is it public or private? Are there other things going on that will distracting? Must be considered. Considering the internal influence, considering the interest level of other person to know how much information it is required of the person to know. Considering the language needed, considering what one needs to accomplish by initiating the conversation, considering the long term impact of the words, tone and gestures that are used and finally, considering the external factors which as a result brings about noise, distractions that may impact how the message is relayed and received.

Therefore, organization to a large extent must improve their communication to facilitate the effective performance and organizational efficiency. This will aid better decision for the attainment of their goals and objectives.

Moreover, in an organization, the main objective is to achieve its target and this can be done effectively through communication within the organization.Leading is impossible without communication between persons. The leader in man-to-man relationship exerts his influence only by conveying ideas, feelings and decisions to his followers.

The followers in turn have to communicate with the leader to management in order for him to be able to appreciate their personal feelings and problems.The need for an effective communication in any organization cannot be overemphasized.

Chester, viewed communication as the means by which people are linked together in an organization to achieve a common purpose and that in the process an organization exchange ideas and information regarding the operations of an organization. It is that interchange of ideas, facts. Thoughts and emotions by two or more people by the use of words, letters and symbols.

Since effective communication is essential to any organization string to improve its relationship with the outside world. Relationship could be built and could be destroyed but everything depends on communications realize the critical importance of meaningful communication, too many organizations devote vast resources to methods that are not maximizing their returns on interest.

As top notchers, since communication is important factor in an organization, management must communicate to their subordinates in a way and manner that will enable them to achieve their set objectives and goals through a good communication mechanizing.

1.2 Statement Of Problem

Information is communicated on daily basis within the organization. The channels of communication within the organization determine the quality of information of the end-users. If the channel is faulty the message may be distored and not properly understood. This may consequently affect the decisions arising there from.

  1. This research work is aimed at tracing the communication between organization of the employees within the organization.
  2. This research work is set out to see how performance of the employees binged on organizational communication. The style level and communication determine the appropriate response from the respondents.

1.3 Aim And Objectives Of The Study

Communication is essential for internal functioning of enterprises because it integrates the managerial functions.

Thus, the primary objective of this study is to examine the effect of communication on organizational development. Other objective are as follows:

  1. To provides a vehicle by which one can implement a plan to achieve to co-ordinate.
  2. To provide a means by which members of an organization can be motivated to execute the plans willingly and enthusiastically.
  3. It is the process by which management functions of planning, organization, decision making and controlling are achieved.
  4. It is also the activity that managers devote most of their time to and the ability to communication effectively is one of the important qualities of a successful manager.
  5. Communication is an essential part of our lives, everybody and everybody we send or receive message and information.

1.4 Significance Of The Study

  1. It is anticipated when this study is completed, it will serve as useful reference source of future researchers and formulation of policies by subordinate and management on how communication can enhance organizational performance.
  2. A lot of Nigerian managers do not possess communication skills. This study is designed to give them a few pointers.
  3. This study is also designed to show importance of communication in relation to how it affects managerial efficiency ultimately of organizational goals and objectives.
  4. The study will also offer useful and reasonable suggestions on how communication enhances the organizational performance derived from the organization as a whole.
  5. There are also few organizations in Nigeria that can boast of having an effective communication network. This is not as a result of ignorance. It is hoped that this study will bring to light the importance of good communication network within and outside the organization.

1.5 Research Questions

  1. Can lack of communication between workers and management lead to industrial conflicts?
  2. Does effective communication of employee function and duties in the organization increase the employees output?
  3. Does effective communication improve the organizational performance.
  4. What has been the effective of communication process on organizational performance?

1.6 Research Hypothesis

  1. Ho: Lack of communication between workers and management cannot lead to industrial conflicts
    Hi: Lack of communication between workers and management can lead to industrial conflicts
  2. Ho: Effective communication of employees function and duties cannot increase the employees output
    Hi: Effective communication of employees function and duties can increase the employees output
  3. Ho: Effective communication cannot improve the organizational performance.
    Hi: Effective communication can improve the organizational performance.
  4. Ho: Communication process has no effective performance in an organization.
    Hi: Communication process has effective performance in an organization.

1.7 Scope Of The Study

This study is set out to discuss “the importance of communication on organization performance”. It will reveal various communication mechanisms on a specified organization, Power Holding Company of Nigeria (PHCN).The thesis will cover the variables of communication and the importance derivable from it facilitates the achievement of the company’s aims and objectives.

Also, this study will stress ho communication gap be carried out in order to achieve the target of the organization, this will also highlight the litigations of communication.

1.8 Limitations Of The Study

Limitations and constraints are:

  1. To interview some of the managers is a difficult task and the research have to pay several visits to the company the to tight schedule and often managers are always absent on seat.
  2. Improper filling of the questionnaires, some of the questionnaires are not find useful for the study.
  3. Behavioural influences and abstraction.

1.9 Study Plan

The purpose of this study is to highlight the importance of communication on organizational performance and to shed more light on how to curtail the breakdown gadget of communication. Copies of researcher designed questionnaire were administered to the staff of PHCN, Oshodi District.

In analyzing the data collected, simple percentage is used, while tail test (t-test) was used to test the hypothesis. The first hypothesis states that lack of communication between workers and management can lead to industrial conflict while the second hypothesis states that an effective communication of employee’s specific function and duties cannot increase the employee’s output.

On the basic findings, recommendations were also made for states and policy makers which will make communication on organizational performance to be more effective and efficient.

1.10 Definition Of Terms

In an organization, communication is the means of actualizing a goal. It is a means by which organized activity is modified. Through effective communication, behaviours can be notified and change affected, information is made productive and goals are achieved. Organization requires information about finances, prices, competition, raw material, labour, technology, business environment and governed activities. This information forms the basic decision making. Communication is highly essential for functionary of the organization because it integrates all the managerial function. Through communication with the external environment, the organization (management) is made aware through information of the needs and demand of customer, and the availability of supplies, the chain fears of the community within which they operate and government regulation.

This study is justified and defined a communication is the transfer of idea the sender to the receiver. Communication is an indispensable management tool. Any means that an individual uses to transfer meaning, ideas, feeling, emotion or attitude to others is communication. There are speechless messages that are transmitted by facial expressions, by the use of the eyes, body movement, gesticulation of the hands, shaking the head in approval of disproval, smiling or frowning. These are sometimes accurate ways of expressing oneself that the conventional oral or within manner.

Good management recognizes the fact that it has to transmit skills and knowledge to those in the organization through its direction, control, organization ability, decision making, and coordinating techniques. The quality of communication skill possessed by a manager determines his degree of accomplishment.

Moreso, information received from external environment of the organization will help to improve services rendered to the public. Communication is also defined as the transfer of information, ideas, fact or message from one person to another. It also defined message exchange of understandable message or idea between two or more person, with the use of words, letters, symbols, signs and gestures.

Effective communication occurs when the message is properly encoded by the sender and understood by the receiver.

Effective communication is very important because it is the means by which the various activities or management function are link together in an organization. Communication is also the means by which the various function of management are accomplished.

1.11 Methodology

Instruments to use for the collection of data will include interviews and questionnaires, reference to business journals. This research made use of both primary and Secondary data, the primary data used will be collected would be from members of staff using questionnaires and interview method. While the secondary data will be generated by consulting relevant textbooks.

Data analysis was first done by descriptively using simple statistical tool of mean and standard deviation. But since the study predominately qualitative in nature non paramedic methods were adopted in carrying out analysis. The t-test statistics will be used to test the hypothesis.

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Frequently Asked Questions

How effective is organizational communication?

Effective organizational communication plays rendered implicit and explicit; an important role in this challenge.

What is the importance of communicative communication in management?

Communication is a vital management component to any organization. Whether the purpose is to update employees on new policies, to prepare for a weather disaster, to ensure safety throughout the organization or to listen to the attitudes of employees, effective communication is an integral issue in effective management.

Who is responsible for effective communication in an organization?

Everyone in the organization has a role to play in communication: The CEO and senior managers are ultimately responsible for setting the tone and establishing organizational culture. Key leaders should be coached on their role in ensuring effective companywide communication.

How do you communicate organizational changes in an organization?

General organizational updates may be communicated through newsletters, e-mails or town hall meetings or in small group huddles. Employers should use several different communication means to announce and update employees when an organization faces bankruptcy, a restructuring or a downsizing.

How do you improve communication in an organization?

Effective Communication in an Organization: Strategies. 1. Create an open communication environment: An organization must aim to develop a communication environment in which all employees of the organization are free to share their feedback, interesting ideas and even criticism against any specific issue.

Why is communication important in project management?

Here are some reasons that will clear the importance of communication in project management: According to PMI, a project manager should spend 90% of their time communicating! Communication is the pivotal skill of any project manager. All the other skills solely depend on their communication skills.

What is the role of communicative communication in an organization?

Communication also plays an important role in keeping the various subsystems of the organization together and in moving them in such a fashion to achieve the organizational goals.

What are the benefits of effective communication in the workplace?

Effective communication creates job satisfaction among employees as it increases mutual trust and confidence between management and the employees. The gap between management and the employees is reduced through the efficient means of communication and a sense of belongingness is created among employees. They work with zeal and enthusiasm.

What is communication as a management function?

Abstract and Figures Communication, as a management function is the process of creating, communicating and interpreting ideas, facts, opinions and feelings about work performance, organisational effectiveness and efficiency as well as goals attainment in organisation.

Who is responsible for effective communication in the workplace?

The CEO and senior managers are ultimately responsible for setting the tone and establishing organizational culture. Key leaders should be coached on their role in ensuring effective companywide communication. The HR professional and communication leader also have critical roles, especially in challenging economic environments.

What is the importance of communication in an organization?

If we talk about internal communication then it is the bridge between the management and the employees. If employees are directly communicating with management and other staffs then they feel connected. This, in turn, enhances productivity level to great extent. Effective communication in an organization is always important.

Why is it important for managers to be effective communicators?

When managers are effective communicators, they are more able to inform staff adequately of their responsibilities and what is expected from them. Good communication skills also helps managers to provide constructive feedback to their staff, build better relationships, and understand personal goals that staff may wish to work towards.

How do hr and internal communication work together to communicate effectively?

Most large and medium organizations have an internal communication team and an HR team that work in tandem to communicate with employees To be effective, the HR and internal communication teams must collaborate closely, mutually reinforcing each other  

How to inspire organizational change?

Using Storytelling in Organizational Change. Telling stories can inspire people to make change happen in organizations. By co-writing the company’s future story you can embrace current strengths …

How to communicate change in the workplace in 8 steps?

Change management requires deft leadership both of the change and the people affected directly or indirectly by it. Here are eight ways to manage change in the workplace effectively. 1. Have a Plan. Change is essential for businesses to grow, expand, and thrive. However, change for change’s sake is foolhardy, disruptive, and likely inefficient.

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