Impacts Of Effective Communication On Organizational Performance In Manufacturing Industry

Project and Seminar Material for Business Administration and Management BAM

Impacts Of Effective Communication On Organizational Performance In Manufacturing Industry


This research study focused on Impacts of Effective Communication on Organizational Performance in Manufacturing Industry with reference to Global Soap and Detergent Company.

Primary and secondary data were used in this study. A total of one hundred and fifteen (115) questionnaire copies were administered while eighty three (83) were returned but only eighty (80) copies were valid for analysis in this study. Statistical tools used in analyzing the data collected includes simple percentage analysis and Analysis of Variance with the aid of Statistical Package for Social Sciences (SPSS).

During the course of the research it was discovered that effective communication has significant impacts on volume of sales of Global Soap and Detergent. The study also revealed that effective communication contributes positively to organization’s productivity and that communication has a significant role to play in the success of a business organization.

The study concluded that effective communication can result to high level employee’s turnover or productivity. The study recommended that organization should endeavour to avoid or minimize miscommunication around the working environment, in other to achieve and maintain good relationship and mutual co-existence, between the top level management and lower level employees and management should also adopt the scope of motivation in Global Soap and Detergent Company.

Chapter One


1.1 Background to the Study

One of the uniqueness of the human person is the ability to objectify his thoughts and ideas through language. With the social evolution of language, especially speech language, man was able to widen the gap between him and the rest of the animal kingdom. Thus, language can be seen as a system of sounds, symbols and words for purposes of communication.

Communication touches every aspect of human activity. Business communication is any communication used to promote a product, service or organization, with the objective of making sale.

The impact of effective communication in every human organization cannot be over emphasized. It is reminiscent to the function of blood within the human physiology. This is because it is a process of creating, transmitting, disseminating and interpreting ideas, facts, messages, opinions, feelings and information between one person and the other. In fact, it is not an error of over claim to contend that the standard of an organization’s productivity and efficiency is directly and indirectly related to the standard of the communication system and networks.

According to Andersen (2001), enhancement of an organization’s communication capabilities may influence performance through improved strategic decision making, better coordination of strategic actions and by facilitating learning from strategic initiatives. The power of communication approaches is further stressed by Juslin and Petri (2003) who studied the impact of communication of emotions in vocal expressions on music performance.

In other words, communication is a process that is essentially a sharing one – a mutual interchange between two or more persons that would ensure that the entire system functions as an organic whole (Hybel and Weaver II, 2001). It consists of the content which can be the factual information, discussion points, formal notices as well as the form of communication which are the memos, reports and bulletins, just to mention three. The media which can be face to face, written reports/memos, e-mail, fax, telephone, audio (radio) and audio-visual which is the TV sets are also crucial. In fact, in broadcasting, the medium is often said to be the message. This is to underlie the role and importance.

Alexander Ode (2009); defines communication as a process that makes common to two or several what was the monopoly of one or some. It is also defined as the process by which an individual (the sender) transmit stimuli to modify the behaviour of other individual (the audience).

Many organization today have capsized, some rapidly diminished, while some does not achieve the intended sales level because they do not have a good communication system.

1.2 Research Problem

The promotion and improvement in the communication system of manufacturing industry is the sine qua non for its strength of character, ability to withstand competition, flexibility and profit maximization.

Further to this is the observation of Andersen (2001) that enhancement of an organization’s communication capabilities may influence performance through improved strategic decision making, better coordination of strategic actions and by facilitating learning from strategic initiatives.

The primary aim of business organization is survival, so to survive, business organization must not only design an effective communication techniques or system but must also make a substantial profit which Drucker (2000) refers to as “the cost of staying in the business” in making sufficient sales volume, a business organization must device a sound communication system which will be used to evaluate their sales performance.

Therefore against this background, this research intends to undertake and examine the impact of effective communication on organization performance in manufacturing industry using Global Soap and Detergent as a case study.

1.3 Objectives of the Study

The objective of this study is to critically examine the impact of effective communication on organization performance of manufacturing industry in Nigeria with reference to Global Soap and Detergent, Ilupeju, Lagos. The objectives of this study are as follows:

  1. To examine the relationship between effective communication and sales volume in the manufacturing industry.
  2. To determine how effective communication assists manufacturing organization to achieve organizational goals and objectives in dynamic business environment.
  3. To examine how effective communication affects profit maximization of manufacturing company.
  4. To determine the contributions of effective communication on the organization’s productivity.
  5. To examine how effective communication improves the manager-employee relation.
  6. To determine the importance of effective communication in influencing employees to perform better.

1.4 Research Questions

These are the research questions for this study:

  1. How does effective communication assists an organization increase its sales volume?
  2. To what extent does communication assists manufacturing organization to achieve its goals and objectives in dynamic business environment?
  3. Does effective communications has significant effect on profit maximization of manufacturing company?
  4. How does effective communication contributes to organization productivity?
  5. To what extent does effective communication improves the manager-employee relation?
  6. Does effective communication influences employees to perform better?

1.5 Research Hypotheses

  1. H0: Effective communication does not have positive impacts on sales volume of Global Soap and Detergent.\
    H1: Effective communication has significant impacts on sales volume of Global Soap and Detergent
  2. Ho: Effective communication does not contribute positively to organization’s productivity.
    H1: Effective communication contributes positively to organization’s productivity.
  3. Ho: Effective communication does not have significant impacts on organization profit maximization.
    H1: Effective communication has significant impacts on organization profit maximization.

1.6 Significance of the Study

The ultimate aim of communication is to develop management in pursuit of excellent. More over the outcome of this study could be employed both in manufacturing industries and service sector, which will enable them to device a good communication system that will foster their sales volume and enhance their sales output.

Effective communication will also be of great importance to business organization by enabling them to determine whether their sales performances are up to expected target. It will also be of advantage to academics, as it will serve as foundation toward greater in-depth and critical evaluation of effective communication in an organization.

1.7 Scope and Limitation of the Study

The scope of this study focused on the impacts of effective communication on organizational performance in Global Soap and Detergent, Ilupeju, Lagos. This project also covered the concept of effective communication and its elements, conceptual framework on communication, theoretical framework of communication, communication efficiency, communication flow in the industry and benefits of sound communication.

This study could have included other aspects of communication but there was limited time available on the part of the researcher to carry out an extensive investigation and high cost of acquiring needed materials. Another constraint which served as limiting factor was the unwillingness of the executives in the organization to release their vital information without the approval of the management.

1.8 Definition of Terms

The researcher compiled some key terms used in this study which may be distinct from their conventional meaning.


The process by which ideas, feeling and information is expressed from one person to persons or between person to persons.


Adequate to accomplish a purpose; producing the intended or expected result.


Performing or functioning in the best possible manner with the least waste of time and effort.


This can be defined as emotional or physical struggle when two or more people are competing for the same resources, activities or goals which only one of them can achieve expense of other.


Is defined as the pinnacle activity involved in selling product or services in return for money or other compensation. It is an act of completion of a commercial activity.


Longman dictionary of contemporary English (2001) sees employees as those who are paid to work for someone else.


It is an act and science of getting things done through others.


Armstrong (2001) sees performance as the record of outcomes achieved.


The process of converting raw materials, components, or parts into finished goods that meet a customer’s expectations or specifications. Manufacturing commonly employs a man-machine setup with division of labor in a large scale production.


A basic category of business activity. The term industry is sometimes used to describe a very precise business activity (e.g. semiconductors) or a more generic business activity (e.g. consumer durables). If a participates in multiple business activities, it is usually considered to be in the industry in which most of its revenues are derived.

Chapter Five

Findings, Recommendations and Conclusion

5.1 Findings

The problem under current study is to determine if actually strict application or rules of communication by managers enhances productivity in the organization. The findings from results show that strict application of the rules of communication by man agers improves productivity.

In a work situation the manager’s most important function is the transmission or information to his subordinates
and others in a position to in fluence the attainment of organizational objectives. The aim is to gain co-operation based on adequate understanding, and to avert discontempt, disputes, distrust and misunderstanding from a ll groups who influences his workers.

It is only through effective application of the rules of communication by the functions or management that is primarily organizing, staffing, directing and controlling can be achieved as well.

Communication is the process through which information is conveyed within an organization and or between one and another party in organization is very vital for organizational needs. The estimates of the amount of time devoted to communication in organizations, according to Akanni (1987) ranges from 50% to 90% .
It is observed that any manager who wishes to thrive in accomplishing the organizational goals cannot afford to ignore the important role of informal channels of communication, because it is the channel that of ten carries undisguised truth about the performance of the organization.

Therefore, effective communication must exist if complex organizations are to be productive,

5.2 Recommendations

From the interpretation and observation shows that effective communication leads to improved organizational performance which also serves as a tool in organization management. Over the years, the importance of communication in an organized effort has been recognized by many authors.

Communication is an aspect of life because it is extremely difficult to think of life without it. Effective communication must exist if complex organizations are to be productive. This finding is supported by Richard L. Weaver (1992). Communication is both the core and bottleneck of organization management. It is the cement which holds organizations together as well as the gap between vital hierarchical elements.

Effective communication is essential for the internal functioning of enterprises because it integrates the management functions namely planning, organizing, motivating and controlling, Planning helps to lay the foundation for orderly communication . Determines goals and efficient methods and approaches for reaching those goals. Organizing however, provides a framework of management mechanism for purposive, integrate, co -operative action by many people, joint effort to implement any action. Motivating – unifies ideas, emotions, resources and transformation into appropriate actions. Th is requires communication that guides, encourages and corrects. It involves co-operation and reliability, creativity and productivity. And controlling action involves supervision and reporting of the goals that are shared. It is essential for the integral function of an establishment because it brings the different sections of the organization together, Specifically, communication is needed to establish and disseminate goals among departments develop plans for the achievement, organize human and other resources in the most effective and efficient way.

Communication between members of work groups, helps to co-ordinate quicker procedure of directing and establish relationship among different departments, bearing in mind that the success of the organization depends on the co- operative working of an sections of the organizations.

Management become aware of changes in customers needs, sources of suppliers, new legislative by government as it affects business, claims of share holders and feelings of the public about the organization through communication. Activities of the competitors, government, technological development, research findings and price changes among other things are made available to the establishment.

The second finding shows that an organized communication creates awareness and a tool in organization management.

External and internal communications are regarded as equipollent to organizational success. It is the opinion in many quarters that lack of effective communication between management and staff is the major cause of industrial unrest. Within an organization therefore, there are need for the flow of information such that t he feelings of staff are made known to the management and vice -versa. This can be possible by using the various machinery in the organization through which there can be downward, upward and horizontal communication in the organization. Effective communication must have been observed to contain, purposive, interchanges, ideas/opinions, personally or impersonally and finally symbol or sign. When the effective communication stem from mission to having a purpose it aids to workers of the organizational expectation within a stipulated time frame, by making this possible through the management. It reduces loss of time and resources.

Through effective transmission workers become aware of what the organization/business wants to achieve and how, for even through people can agree on the objectives to be achieved, they ordinarily cannot be left to themselves in selecting strategies that w ill lead to those objectives, but required to be given the basic information.
Information concerning an organization must be properly communicated to a ll and because when everybody knows what is doing on in the organization, effort will integrated and they feel more belonged and able to contribute meaningful towards the business objective. In other words, communication should not be restricted to any level of management because public opinion is everything (Hincoln).

Good listening habit and need for manager constant meeting to hold between staff and workers w ill create all enabling environment, improv e communication flow among a n levels and enhances confidence and reduces anxieties.

5.3 Conclusion

From the study and findings above on effective communications as a tool in organization management , it is however, important to note that it is sine qua non and paramount for organizations success. It is indispensable in achieving the pursuit of organizational objectives. In fact it is believed to be the life blood of every organizations which all the managerial functions hings. As a result no aspect of organization can be effectively managed without it.

It is based on these facts that feelings of the workers and changes in the organization are made known to the management through various machineries. This encourages improvement, quality of co-operation and understanding is equally enhanced.

For effective communication to take place, it required information. Infact information is regarded as a tool for management. No wonder in his own contribution, Eddie Huggins a one time U .K. Corporate Affairs Adviser, observed that management of information is the responsibility of every manager and not just the communicator specialist alone.

In concluding this research work it is hoped that the findings herein would help in the management of organizations communication effectively. Therefore there should be more emphasis and strict adherence to the communication rules which makes it possible in realization of organizational objectives..

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