Effective Communication And Organizational Performance

Project and Seminar Material for Business Administration and Management BAM

Effective Communication And Organizational Performance


The importance of communication in achieving organisational objectives cannot be over emphasized. The current study examines effective communication and organisational performance of Nigerian breweries Plc. The study adopted descriptive survey research design. The population of the study comprises of all employees of Nigerian breweries Plc. Simple random sampling techniques was adopted for the study. The study randomly selects 264 employees of Nigerian Breweries where data were collected from these employees through the use of structured questionnaire. The data retrieved from the questionnaire were analysed using descriptive statistics of mean, standard deviation and inferential statistics of correlation.

All the analysis was carried out with the aid of SPSS. The finding of the study reveals that internal communication has positive and significant relationship with financial performance; external communication improved job quality of employees and used of ICT has positive and significant relationship with number of task completed by the employees. The study recommends that free communication follows, adequate information has positive and significant relationship with financial performance, the study recommends that the management of the organization should ensure that free, adequate, timely and effective communication channel are been put in place as this will go along way with increasing their financial performance.

Chapter One


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


y1 ₌ financial performance

y2 ₌ job quality

y3 ₌ number of tasks completed

x ₌ Effective communications

x ₌ f(x1, x2, x3)


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


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


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).

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary

From the analysis made so far it had become evident that communication breakdown has effect in the management of an organization. Communication as a catalyst for establishment and accomplishment of an organizations goal cannot be overstressed. The object of emphasis in this research work dwells on effective communication system both the executive leaders make sure they are informed as those in the lower cadre. This is necessary because any breakdown in communication would be a catastrophic to the life of the organization. Communication in an organization helps in the flow of information, motivation of workers and enhancing industrial harmony in the organization among others. It is important to note that communication is indispensable in the survival of any organization. It integrates various departments together and they work harmoniously to achieve the organizational goals and objectives. For management, communication helps to ensure compliance to rules and regulations, policies and as a medium to ensure effective control of staff activities and behavior.

The employees will get informed and abreast with the activities of the organization. This is turn increase productivity level because it is only then workers feel accepted and well integrated into the organization. Good communication system in a company enhances good public relation between the employers, customers, shareholders and government. Finally, effective communication cab be viewed as a tool for effective management, defining responsibilities of subordinates and setting standard for performances

5.2 Conclusion

It is clarify evident from the findings of this study that communication is an important tool for management. Effective communication leads to organizational effectiveness. This is reasonable evidence that if an organization is effective in its communication, it will be effective overall. Any organization without a well-established communication system no matter its personnel policies may be bound to operate in uncertainties and risk. Communication is not an independent activity of management but an essential part of what every worker in Nigerian Breweries Plc., the situation showed that there is a proper and effective communication system in the company. The workers are happily working co-operatively and that helped in enhancing their productivity. The company operates both upward and downward communication channel as opened by the personnel manager.

5.3 Recommendations

Based on the findings from the study on the effective communication system and in light of data collected by personal observation and though the questionnaire conducted in the organization; it is necessary to offer the following recommendations.

  1. Management should introduce training, programmes in the organization whereby junior workers would be taught how to communicate effectively. This is necessary because poor academic background of these workers constitute problems to effective communication in the organization.
  2. Management should continue to keep in touch with the workers on new development in the company. This would enable workers to know what is going on in the organization and this sustains their interest in working assiduously.
  3. Management should not relent in encouraging free flow of information in the organization, as this would motivate workers and encourage them to achieve the goals of the organization.
  4. Workers in Nigerian Breweries Plc. should always seek for clarity in matter which is not clear to them from the management.
  5. Management of Nigerian Breweries Plc. should also continue encouraging workers participation in decision making.

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Frequently Asked Questions

How does communication affect the performance of an organization?

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.

What is the difference between internal communication and organizational performance?

Informal communication often refers to social contact between employees. Organizations can influence and improve both of these areas, through, for instance, internal communications strategies or cultural change programs. What Is Organizational Performance? Organizational performance refers to how effective an organization is.

What is organisational performance?

Organizational performance refers to how effective an organization is. Usually the concept of organization performance focuses on how well an organization achieves its stated goals. An organization that meets its targets effectively and cost-efficiently, for example, would be considered effective.

What makes for an open communication environment in the workplace?

The research concluded that for any organizational performance to be effective, the communication should be an open communication environment is one in which all members of the organization feel free to share feedback, ideas and even criticism at every level.

What is internal communication in an organization?

Internal communication is information exchange within the organization. Messages can be exchanged via personal contact, telephone, e-mail, intranet (the website accessible only by employees) etc. Internal communication as a way of information exchange within the organization can be vertical, horizontal and diagonal.

What do you mean by organizational communication?

Answer: Organizational communication is defined as the channels and forms of communication in which organizations such as corporations, non-profits, and governmental bodies engage, including both the internal communications that occur within an organization, and external-facing communications between an organization and its stakeholders.

What is organisational performance?

Organizational performance means the actual output or results of an organization as measured against its intended outputs (or goals and objectives). According to Richard, the organizational performance includes three specific areas of firm outcomes:

What is the difference between conventional approach and communication as organization?

The conventional approach focuses on communication within organizations. The second approach is communication as organization — meaning organizations are a result of the communication of those within them. Communication is not just about transmitting messages between senders and receivers.

What are the best measures of organizational performance?

What Are the Best Measures of Organizational Performance? Valuing your scheme | The Pensions Regulator Valuation: Measuring and Managing the Value of Companies Valuation – RICS What is value-based

What affects organizational performance?

“This study highlights the effect of menopause symptoms on cognitive functioning and demonstrates a link between severe depressive and sexual symptoms, specifically, with cognitive performance. Mood disturbances are common in the menopause transition and can affect memory and sexual functioning.

What does organizational performance mean?

Organizational performance means the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Definition of Organizational Performance According to Richard, the organizational performance includes three specific areas of firm outcomes:

Why is open communication important in the workplace?

The Importance of Open Communication in the Workplace. If you are going to lead a successful business, you must create an environment with open communication and trust. Open communication allows your employees to be more engaged and understand that what they do matters in the success of the business.

Do you know how to communicate openly in the workplace?

Open and honest communication in the workplace is a non-negotiable for high-performing teams. Without open communication, tasks can go uncompleted, team members can become disengaged, and company culture can get lost. Does your team know how to communicate openly in the workplace? Do you know how to encourage communication with your team members?

How do you encourage open and vulnerable communication in the workplace?

Your employees’ willingness to be open and vulnerable will be a direct reflection of your own willingness. Respect, honor, and reward open communication. Meet the enthusiastic sharing of ideas, insights, and concerns with positive reinforcement, never reproach, no matter how critical.

What are the best tips for improving office communication?

If your co-worker performs a task well, tell him or her. Providing positive feedback is a great way to improve workplace communication. It also helps people view you more favorably and encourages open communication. 


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