Effective Internal Communication

Transcription

1 Effective Internal Communication How do managers improve their communication skills A thesis for the degree of Bachelor of Communication by Monique Natadarma ( ) Communications/Advertising & Design Management, InHolland University of Professional Education Rotterdam, the Netherlands Graduation coach: Mr. Simon Palser 4 October 2006

2 Executive Summary In a business world, communication plays a significant role in order to exchange or to transmit actions and information between all target groups. An organisations main asset is people. There are many types of communication means or tools used to promote a dialogue and interactive participation between employees and managers, especially nowadays is this technology era. Managers of the organisation as leaders need to be able to communicate openly to the internal group which are the employees. If the response given by the employees is insufficient, managers require to measure the effectiveness of the internal communication and to evaluate methods to generate active communication within the organisation. The definition of communication must initially be understood and perceived the same way by the internal groups (i.e. managers, employees, trainees). Communication is a continuous two-way process of exchanging information between two or more people through certain means/tools, with the intention that both sender and receiver perceive the same message. Sometimes people forget that communication is a two-way process, so it is not only sending, but also receiving response to realize the message is well accepted and understood. Therefore the following problem statement is raised: How do managers improve their communication skills? Effective internal communication starts at the top. CEO and managers play important roles in the organisation development. Senior executives like the CEO provide leadership to align the organisation with its vision, goal and strategy. Managers must recognise the communication approaches (either formal or informal) to reach the participation and support from the internal groups in order to achieve the short and long term plans of the organisation s success. Other than the managerial functions, which are planning, organising, leading, co-ordinating and controlling; they are require to be able to communicate with the internal groups (employees, trainees, board of directors). One of the important communication skills that managers need to practise is the ability to listen. By listening, employees will be willing to speak or give certain responses. And if managers are open for suggestions that will bring confidence and feelings of appreciation to the employees. The comments or ideas received 2

3 through the available communication means require to be processed. And the employees need to be kept up to date with the results or follow-ups. Otherwise, the desire to respond or participation will be reduced, especially when there is no incentive from the managers. For instance by conducting surveys; an interactive intranet as a medium to place news and to receive response from employees; monthly internal newsletter (online or paper); a simple and a useful method is by face-to-face meeting. People are the essential assets for a company. If they have no motivation to come to work, then the company s objective will not be achieved. Consequently it is essential for managers to have excellent communication skills in order to communicate with the right communication means, the right timing and always be open to the employees. "It is vital for the success of our companies that businessmen and women emerge as real leaders and demonstrate their ability to communicate effectively, internally and externally." (Sir Colin Marshall, chairman of British Airways) 3

4 Preface The background reason of this thesis topic is related to my graduation project. I have had the opportunity to work at the Consumer Lamps Europe Business Unit, which is a Business Unit of the PHILIPS Lighting Headquarters in Eindhoven. The project was about offering a practical solution for the internal communication problem within the Business Unit Consumer Lamps Europe. I hope that the readers of this thesis would get a clear picture of how valuable effective internal communication is within an organisation. An organisation consists of people which are the most essential asset in an organisation. People communicate everyday. Communication is a daily activity, that seems like an easy thing to do but often able to create serious problems. This thesis is my last school project and is the one that has taken the longest time to finish. I realize that I have learned a lot during the graduation project at PHILIPS and also while composing this thesis. Although it was not easy for me to work consistently on this thesis especially during the summer holidays for at the same time I had to work on the graduation project. Both graduation projects (practical and theoretical) were quiet challenging for me to do. In addition, I like to thank God for making it possible to finish all of the graduation projects and of course, my parents who always support me no matter what. Also to my friends who always encourage me every time I feel discouraged, especially for Maxime Vincent and Allia Rambie. Last but not least, to my graduation coach, Mr. Simon Palser, who presented me with the PHILIPS project and gave assistance during both practical and theoretical graduation projects. Monique Natadarma Delft, October

5 Table of Contents Executive Summary Preface...4 Table of Contents Introduction Communication History Definition Models and theories Communication in an organisation Definition A System theory Methods of communication approaches Main forms of communication in an organisation Communication structures Relation between corporate identity and corporate image Role of Communication Communication flows Significance of internal communication Problems Effectiveness of internal communication Ways to create effective communication Basic principles to support the effective communication Internal communication means Case studies Conclusions Acknowledgements Annexes

6 1 Introduction Communication is about people s skill to express or exchange information in order to achieve the desired needs. People already started to communicate with one another since the beginning of life, through speaking and visualising (symbols, drawings), and also communicating is part of daily life. From time to time, the forms of communication, theories, methods and communication means (channels) develop rapidly, especially since the hightechnology era. Numerous communication means are invented to make people s life easier to keep in contact. The internet network provides the facility, either by instant messenger (able to type message, speak and see the other person) or by ing. These types of exchanging messages are the most common ones since it is fast, accessible, user-friendly and up-to-date. The communication subject applies to the business world as well. It is the most essential factor in the organisation s daily activities because communication involves people, and an organisation consists of people. It is not Human Resources responsibility anymore, but the Corporate Communication department handles the internal and external groups within an organisation. However the communication topic is always a part of Human Resources because those two are closely connected and can not be apart. It is important for higher levels of management and the departmental managers to maintain an interactive and open relationship between employees at all levels. Therefore communication matters are very crucial. Managers require to master communication skills in order to lead and encourage the participation of employees to accomplish the company s objectives. Two-ways communication has to be encouraged so that both parties are able to work as a team. A suggestion box available for employees to submit ideas/comments, or an interactive bulletin board/newsletter in the company s intranet site where employees are able to submit comments are examples to enhance employees participation. Other than through technological communication means, a very effective way is to promote a face to face meeting, such as a regular visit by the CEO or the president of the company to the production factory, or an open forum in a casual event that can lessen the tension between managers and employees. The communication usually flows according to the hierarchy level in an organisation. There are three familiar approaches within an organisation, which are the upward communication, 6

7 downward communication and horizontal communication. Formal and informal communication manners are accessible to assist a successful two-way communication between managers, employees and peers. Communication is a continuous process of exchanging information (a dialogue, not a monologue) between two persons or more (sender and receiver), which means feedback or response is highly required so that the sender is aware that the message is received and understood by the receiver. Thus, the managers must measure the effectiveness of the available communication means in the organisation. Otherwise it is useless to send information through a variety of means but receive no response from the employees. Hence, the main purpose of this thesis is to provide a theoretical background and contribute my personal point of view based on my practical experience working on the internal communication problem at PHILIPS Lighting. The communication skills methods are explained throughout the chapters in order to answer my main question, which is How do managers improve their communication skills? The content of my thesis begins with a chapter of introduction, then several chapters supporting my point of view, and it ends with a conclusion. The chapters are: Chapter 2 - This chapter is about general information of communication and the related communication theories or models. Chapter 3 - This chapter is about the methods of communication approach (verbally or interpersonal) and the organisation communication structure. A section relating to three vital elements of corporate communication, which are corporate identity, image and strategy, are also mentioned. Chapter 4 - This chapter is about the internal communication flows and approaches to deliver the desired message. Also, the essential factors referring the importance of internal communication are included. Chapter 5 - This chapter is about measuring the effectiveness of the action or the means within the organisation. The variety of communication means is mentioned as well. Chapter 6 This chapter contains some examples of how companies manage their internal communication 7

8 2 Communication In this chapter, the communication history, definition and models/theories are explained generally. This communication background supports the fundamental information of understanding the true meaning of communication. 2.1 History Communication started from the beginning signs of life. People exchanged information and knowledge to further generations by speech (act of speaking) and symbols (representation of an idea, image or object shape). Speech was initiated about 200,000 years ago. Symbols were developed about 30,000 years ago, and then came another communication form, writing about 7,000 years ago. For the past centuries, the worlds of communication and telecommunication have experienced major progress, especially with the fast growth of technology. 2.2 Definition The word communication originally came from the Latin communicatio and Greek communis. Communicatio means informing, the transfer of information between people and making connections in that manner. Communis means making something communal, or letting people share in something or being connected. Both definitions emphasise an interactive relationships between people through sharing information, either by words or signs. The definition of communication(s) according to the Random House Unabridged Dictionary is: com mu ni ca tion noun 1. the act or process of communicating; fact of being communicated. 2. the imparting or interchange of thoughts, opinions, or information by speech, writing, or signs. 3. something imparted, interchanged, or transmitted. 4. a document or message imparting news, views, information, etc. 5. passage, or an opportunity or means of passage, between places. 6. communications, a. means of sending messages, orders, etc., including telephone, telegraph, radio, television. b. routes and transportation for moving troops and supplies from a base to an area of operations. 8

9 One of the communication experts, F.R. Oomkes, said that the meaning of communication concept is: The exchange of messages taking place between people who are aware of each other s immediate or mediated (possible) presence. This symbolic information is given, received and interpreted partially on a conscious and unconscious level. 2.3 Models and theories The communication models developed strongly in the 20 th century with the experience of World Wars I and II. Studies of propaganda, persuasion and subsequently the growth of communication studies at colleges and universities across the US resulted in the further development of communication models and theories. The models and theories facilitate people to understand how the communication process actually works. The following sections are some of the most common communication models and theories Laswell s Verbal Model of Communication In 1948, Harold Lasswell described that human communication is a linear or a one-way process which one person acts on another person simply by using words. It is also called as a transmission model because it assumes that communication is transmitted in a straight forward manner, from a sender to a receiver. Laswell s verbal model consists of five questions that described of how the communication works. Figure 1. Lasswell s verbal model of communication (1948) Who? Says what? Through which channel? To whom? With what effect? Shannon & Weaver s Communication Transmission Model Claude Shannon and Warren Weaver (1949) improved Laswell s communication model by adding the concept of noise. Noise is anything that interferes with the intended meaning of communication. They illustrated the incident of communication as a repeated process. The process starts with a sender that has the intention of passing on a message to a receiver. For example: a manager (sender) sends meeting agenda (message) in a letter (medium) to the secretary (receiver). 9

10 Figure 2. The communication model of Shannon & Weaver (1949) Feedback Encoding Decoding Sender Message Medium Receiver Feedback Sender, message The communication process starts with the sender. The sender has the intention of delivering a message to a receiver. The material types of the messages are: facts, ideas, opinions, beliefs, emotions, motivation. Medium For every message, the sender chooses a medium. The choice of medium often influences the message, for instance, communicating by telephone is more informal than an official letter to an office supervisor. Feedback After a message is sent to the receiver, the receiver will often give a response to the message. After that, the sender can reply again. Both responses are called feedback and can be either positive or negative. Giving and receiving feedback is an ongoing process, as indicated in the figure of communication model above. Encoding and decoding Before a sender sends out a message, he or she has to decide how to create a message that is easily understood by the receiver. The message of the sender needs to be adapted before it can be transmitted to the receiver. This process is called encoding. Then the receiver of the encoded message will have to decode the message. This means that the receiver will change the information in such a way that he or she is able to understand the message. This is called decoding. Noise Noise is any interference or disturbance during the communication process. It occurs when people have difficulties in concentrating on the message, such as because of a psychological stimulus like feeling hungry or culture differences like language Theory of Reasoned Action In Figure 3, it illustrates how external factors influence behaviour indirectly. This theory is 10

11 often applied in campaigns where behavioural change is the primary objective, such as election campaigns. This theory only covers the rational decision-making process. However, in real life situations some decisions are not made rationally. Figure 3. Theory of indirect effects of external variables on behaviour External variables - Demographic variables Beliefs that the behaviour leads to certain outcomes Evaluation of the outcomes Attitude toward the behaviour - Attitudes towards targets - Personality traits Beliefs that specific references think I should or should not perform the behaviour Motivation to comply with the specific references Relative importance of attitudinal and normative components Subjective norm Intention Behaviour Cognitive Dissonance Theory Cognitive dissonance is a communication theory derived from social psychology, which based on: Cognitive, which means thinking or the mind. Dissonance, which means conflict or inconsistency. In 1950 s and 1960 s, researchers tried to explain how people respond to dissonant information, or rather, how people respond to information that conflicts with their previous thoughts or knowledge. This theory indicates that: Dissonance is a psychologically uncomfortable situation and motivates people to get rid of it; In a state of dissonance, people will avoid information that might add to the dissonance; In a state of dissonance, people will find information that reduces the dissonance. 11

12 Dissonance arises easily, especially in a society well-supplied with information. Many of the responses to dissonance actually involve the exposure to (or avoidance of) the media. For example, if someone does not believe the reports in the newspaper, even if these reports are based on reliable and scientific sources Mass Media Theory Mass communication is public communication, where the sender intends to communicate with a large group of people (a mass public) using different kind of media forms. The sender of the message intends to reach the public, even though the public never receive the message. For example, an author writes an article in a magazine, even though not everybody will read it, however the term mass communication is still appropriate because the author had the intention of it reaching the public. The electronic media and print media including broadcasting (radio, television); disc or tape (video, computer); film/documentaries; internet (blogs, podcast for news, music, video); and publishing (books, magazine, newspaper). From all of the communication theories that are mentioned above, I consider that the model of Shannon & Weaver was one of the first real communication models that is still widely used until now. The model is used as a basic principle of understanding the meaning of communication, which is a continuous two-way process, or a dialogue, between a sender and a receiver. The information or message that the sender is sending to the receiver requires a certain medium and the response of the receiver is called feedback. An interruption or noise may happen during the process. 12

13 3 Communication in an organisation Following the general definition of communication and theories, this chapter gives further explanation regarding the internal communication matter in an organisation (or a corporation). Internal communication is part of the corporate communication activities that deals particularly with the managers and employees at all levels in an organisation, as the internal groups. 3.1 Definition Communication is an essential activity in people s daily lives. This is also applicable to an organisation. An organisation also has to communicate a message regarding its corporate identity, image, vision, mission to the external (clients, distributors, buyers, competitors) and internal (managers, employees) target groups. Some of the definitions of Corporate Communication according to the communication experts are: Corporate Communication is the total communication activity generated by a company to achieve its planned objectives (Jackson, 1987); Corporate Communication is the management instrument by means of which in the most effective way all consciously used forms of internal and external communication are adjusted to each other, in such a manner that the organisation reaches and keeps the intended image with its most important target groups (van Riel, 1998); Corporate Communication is the management function within an organisation which is responsible for communication processes that are initiated from within the organisation and thus trying to promote a sustainable interaction between an organisation and groups of the public in the internal and external environment (Marieta Vos, 1999). The key word concerning corporate communication is that it is a management instrument and an activity to endorse interaction between both groups, internal and external within an organisation. The activities include surveying the perceived image of the company in the eyes of internal and external groups, promotional campaigns to attract new customers, internal brochures/posters or announcement news on the company s intranet site. 13

14 Stakeholders Stakeholders are the so called target groups or publics that are involved in communicating within an organisation. The stakeholders are divided into two groups: internal and external. Although in this thesis my main stakeholder focuses only on the internal group, I find that it is necessary to show the relationship with the external group. These two groups are essential for the stability of the organisation. In Figure 4, the organisation appear to be at the centre of the internal and external groups. Figure 5 Stakeholders relationship Internal group Employees Works council Management Board of directors Retired personnel Temporary workers Interns Organisation External group Government (local, regional, national) Labour unions Customers Shareholders Banks Suppliers Media The organisation has different kinds of communication techniques to reach both groups. For instance, an internal weekly newsletter published in the company s intranet and employees that are able to give response/feedback online. For the external group, like the media the organisation can release a press release and a press conference, when a new product is launched. (See Annex 1.Internal communication position in an organisation) 3.2 A System theory A system theory is one of the organisational theories that endorse into a successful corporate communication. The features of the theory relates to a wider problem of understanding the organisational structure, function and development of human systems with the same principles that are used to understand living organisms. This theory started to evolve from the nineteenth century until these days. Additionally, the system provides a new correlation for the study of organisations and organisational communication the living organism. The concepts of the theory are: hierarchy, wholeness, openness, and feedback. Hierarchy One of the important rules in a system is the principle of hierarchy. A hierarchy describes a structure of the management of the business, from the top of the company the managing director, through to the production workers. Every organisation has its own product/service 14

15 division (e.g. electrical, automotive); the division has its own departments (e.g. financial, sales, production, human resource); then managers are in charge for major projects that require the co-operation with the personnel. Managers need to control the personnel task and generate communication between them. Figure 5 is an example of an organisational structure. Figure 5. Organisational structure Wholeness A syste m is a set of elements bound together in mutual-dependent relationships. Wholeness means that the effect of elements working in relationship to one another differs from the effect of their isolated, individual actions taken together; or in other words referred to as synergy (a condition in which the whole is greater than the sum of its parts). For instance, a group of advertising professionals gather for a brainstorming session. Members of the group can interact, emerge and produce varieties of ideas during the session. They can collect more possible ideas at the end. Openness The next concept is regarding open or closed systems. An open systems is a system that takes in (raw materials, capital), converts them into goods/services (via machinery, human skills), then sent back to that environment, where they are bought by customers. On the contrary, a closed system is self contained, does not interact with its external environment. Feedback Feedback is a return process of an action, or in other words, a receiver gives response/ action back to the sender of the information. An organisation seeks feedback to improve its performance and to review employees satisfactory on the job. All feedback processes involve communication. Relationships among individual members in organisations depend 15

16 on communication and information flow. Examples of feedback are financial audits, performance appraisal, employees surveys and 360-degree feedback. In my viewpoint, the four concepts of the System theory (hierarchy, wholeness, openness, and feedback) are extremely significant in the process of achieving effective internal communication. A clear structure of an organisation must be well defined in the hierarchy feature. An organisation with more than one level of management may suffer from communication problems that can interfere with almost any aspects of the organisation, like one of the Business Unit in PHILIPS Lighting, which is the Consumer Lamps Europe. Although it is only one of the Business Units, the organisation structure is so high and spread throughout many countries in Europe. That makes it difficult to communicate and often creates internal problems due to culture differences or lack of information. Furthermore, the members of an organisation need to act as a whole group in developing the end results. The correlation between the members and the action taken would affect the company s outcome. Also without openness between management and employees, miscommunication or rumours would occur. The management team must ensure that both managers and employees have access to the same content of information. Thus feedback sessions are highly required in the communication process, to discover the positive/negative response and whether the message is perceived as expected. Feedback usually is usually measured by written or visual means (like surveys), or verbally (face to face meeting) through formal or informal occasions. I suppose that people have more courage to be honest when the feedback is done through surveys so they are able to be anonymous. Additionally, in theory, both management and employees are able to agree on the tasks to improve the organisation and capable to work together to support the vision and mission of the organisation. In my opinion, however in practise, the same incentives must apply to both parties, or else parties with differing incentives will develop different goals, adverse the effect of the shared information. Managers may inform the goals, but if no coaching or assisting given by managers of how to accomplish the desired results; employees may perform a poor job. (See Annex 2. Key aspects to motivate managers) 3.3 Methods of communication approaches There are four methods of communication approaches within an organisation: verbal and non-verbal; one-way and two-way; inter-personal and mass communication; internal and external. Verbal and non-verbal communication 16

17 Verbal communication is exchanging messages in the form of words, by orally (spoken) or written forms. The science of nonverbal communication is called kinesis. Forms of nonverbal communication are such as: graphical data (pie charts, histograms and maps), human signals (body language, gesture, facial expression, personal touch) and visual signs. Those forms of non-verbal signals are expressed through behaviour as well as verbally and also have symbolic meaning. Both verbal and non-verbal forms of communication are used simultaneously. For example, text, images and verbal are combined in a business report, while presenters make use of words and gestures. Figure 6a. Examples of (non)-verbal communication One-way and two-way communication Both communication forms refer to the transmitting of the messages from the sender to the receiver and are open for all kinds of feedback. One-way means communication in only one direction to the audiences, including news broadcasts, posters, and speech. Two-way communication involves both parties to interact, such as a face-to-face interview and group discussions. Feedback is collected by answering surveys, personal meetings or through available interactive response tools in the company s intranet. Figure 6b. Example of one-way & two-ways communication Inter-personal or group meetings are the most common communication ways to interact. When and mass communication Individual the aims for publishing or broadcasting certain information to attract a larger group of population, it is better to use mass media, like the newspaper, television, radio, or through digital communication. 17

18 Figure 6c. Examples of mass communication Internal and external communication The organisation deals with a variety of target groups, depending on the department function. For instance, the human resource managers tends to focus more on the employees (internal) communication, while the marketing managers concern themselves with the external group (i.e. suppliers). Both managers need the appropriate communication approaches to reach the desired results, perhaps by organising casual Friday drinks after work-hour for open forum to maintain employees relationships with the management. Figure 6d. Example of internal and external communication 3.4 Main forms of communication in an organisation Communication is the life source of an organisation because organisations involve people. These days, the management team within an organisation realizes the need to express, receive, deploy, transmit, or exchange information and also the efforts at communications between the external and internal groups increase substantially. There are three main forms of corporate communication, as follows: 1. Management communication Management communication is the most important one from the three communication forms within an organisation. Early 20 th century management writer, Mary Parker Follett defined management as the art of getting things done through people. There are five management functions: planning, organising, leading, coordinating and controlling. One of the manager s roles is to continuously persuade subordinates that the goals and mission of the organisation are desirable. Communication is the responsibility of all levels of an organisation, from the senior, middle, junior management, subordinates to the factory workers. Thus the need of effective communication skills and the communication channels/means are significant in order to generate an active communication and co- operation between managers and employees, so that the desired goals are achieved. 18

19 For instance: developing a shared vision, mission, objectives of the company; initiating and managing the change process; empowering and motivating employees. I believe that organisational success often depends upon good communication by managers, including the CEO as well. The higher management levels and the departmental managers are obliged to motivate and to coach the employees of how to achieve the organisational goals. (See Annex 3. Effective internal communication starts at the top) 2. Marketing communication Marketing communication consists of the forms of communication that support sales of goods and services. Advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sales promotion are some of the forms. Marketing communication takes the largest share of a company s budget, including qualitative and quantitative aspects, such as: financial data (e.g. advertising expenses), information on target groups (e.g. patterns of media consumption) and data on the quality of external agencies (e.g. advertising agency). 3. Organisational communication Organisational communication is used to cover the internal and external target groups, or could be described as all forms of communication used by the organisation, other than marketing communication. For instance: public relations, public affairs, investor relations, labour market communication, corporate advertising, environmental communication and internal communication. All of those communication activities mainly focus on maintaining the relationship between the organisation and the public. According to the Finnish writer Aberg (1990), he stated that all communication activities within the organisation must be integrated in order to support the achievement of the organisation s aims and goals. Additionally, he stated that the communication has four functions: supporting internal and external core operations (to regulate); organisation and product oriented profiling (to persuade); informing internal and external audiences (to inform); and socialising individuals into a good organisational citizen (to integrate). The four communication functions are coordinated in order to make an effective contribution in achieving the organisation s goals. 19

20 3.5 Communication structures Communication structure is a system or a network of the way how communication flows within an organisation, with a purpose of exchanging information through the available communication means. In Figure 8, four different types of communication structures exist in an organisation: wheel structure, circle structure, open circle structure, and chain structure. Figure 8. Communication structures (i) Wheel structure (ii) circle structure (iii) open circle structure (iv) chain structure (i) (ii) (iii) (iv) Wheel structure one person exchanges information with various individual characters. This leads to fast decision-making, but not all the participants receive the whole information. Circle structure each participant has contact with two other individuals. The exchange of information takes a lot of time and many mistakes can be made, but the participants are more satisfied. Open circle structure no central figure, but have a varied contact pattern in a structure. The participants are satisfied but decision-making leaves something to be desired. Chain structure is similar with the circle structure. In my poin t of view, these communication structures are not the best solution to achieve a two-way communication process. In reality however, communication processes often appear to be just like this. Very often there isn t enough information received by the receivers. Information is transmitted from various sources (either trustworthy or not) and whether or not the communication is effective just so depends on how the receivers perceive the messages. Therefore employees should be the priority to receive (internal) information from the managers or higher level management, rather than from unrelated 20

21 parties or the media. Otherwise, rumours are spread that may cause damage to the employees loyalty and trust to the company. 3.6 Relation between corporate identity and corporate image Furthermore, in corporate communication, the concept of corporate identity, strategy and image are the main elements that represent an organisation and can not be separated. Corporate identity means all of the forms of expression that a company uses to convey its personality to the public, meanwhile corporate image refers to how the company is perceived. People recognise a company s corporate identity in expressions such as the house style, logo, commercials, public relations, internal values and norms. Corporate image is not only created by the company, other parties like news media, labour union, environmental organisations, and journalists are also included to create the image. In addition, corporate image is seen as reflecting the identity of an organisation. A company that has a strong and convincing corporate identity can achieve more with its target groups. A strong corporate identity is effective in the following ways: Raising motivation among employees. A strong corporate identity enables employees to identify with their company and it will also affect their behaviour to become more committed to the job. Inspiring confidence among company s external target groups. Various external target groups can develop a clear picture of the company s identity. Acknowledging the vital role of customers A well-defined corporate identity inspires customers confidence in the company s capabilities and creates a long lasting relationship, which will secure the future of the company. Acknowledging the vital role of financial target groups The suppliers have confidence in the company in supplying the financial resources. Thus, in my viewpoint the ways internal and external groups perceive the company s image identity, and strategies are important for the success of a company. These aspects are related to one another in concerns of behaviour and employees commitment to the job. Also, when the identity of the company is recognized in a positive way in the public view, then the employees trust and enthusiasm factors are increased because they feel safe to invest their energy for the company s benefits. Managers have to share the strategies to achieve the desired goals with the employees and also involve their participation in decision-making. By doing this, employees are aware that their contributions are appreciated and are significant for the company. 21

22 4 Role of Communication This section defines the communication approaches in an organisation, either formal or informal; and the essence of the importance an organisation to have an effective internal communication. Potential communication problems are also mentioned in here. 4.1 Communication flows There are two methods of how the communication flows within the organisation, which are: formal and informal communication. Each communication flow has its own functions and communication means in order to achieve the organisational objectives Formal Communication Formal communication is a communication approach through official communication channels in order to deliver the message between organisational members. The formal communication system is usually specified in the policy manuals and the organisational charts. All of the three communication directions: upward, downward and horizontal. Its functions and purposes are to: interpret, influence and coordinate. Upward Communication Upward communication defines the communication flow of the information/messages from the lower (subordinates/employees) to higher level (managers/superiors) of the organisation hierarchy. The types of messages are usually concerning employees opinions (any problems, comments, and suggestions), individual performance report, task-related matters, and also regarding financial issues. This flow of communication often experiences difficulty in encouraging a two-way communication between the subordinates and the managers, while the involvement, opinion, and commitment of the employees are highly important in order to achieve the organisation s goals. The subordinates should feel free to report their problems or give suggestions to superiors. On the other hand, the superiors have to be open to receive the proposals or criticisms. Some of the communication channels/ means that will improve the effectiveness of upward communication are the suggestion systems (suggestion box), employees surveys, face-to-face conversation, open-door policy, management reports. Managers need to gain employees trust and loyalty by encouraging, supporting, coaching, and regularly organising face-to-face meetings. 22

23 Downward Communication Downward communicatio n refers to the information/messages flow from higher level of organisation hierarchy to the lower level. Managers must have good communication and people skills to influence the employees since they are responsible to inform the company s goals, values and strategies and also how to achieve the desired results. The types of messages are related to job instructions and rationale (purpose of the task and its relationship to the company s goals or other activities); procedures (policies, benefits); individual feedback performance report; and indoctrination to encourage employees commitment to the goals and objectives of the company. These days, the information usually flows through (for individual and groups), newsletters (electronic or paper), memos, and speeches. Common problems occur with downward communication contain inadequacy of information load (not all information are relevant), inappropriate communication means, filtering of information and also often organisation relies on the means (written, mechanical, electronic) rather than face-to-face contact. (See Annex 4. The types of information) Horizontal Communication Horizontal communication identifies the flow of exchanging messages across or diagonal among peers or co-workers at the same functional level of an organisation. This approach facilitates problem solving, shared information and task coordination between departments or project teams. The problems that occur with horizontal communication are due to issues like, territoriality, competition, specialization and lack of motivation to expend additional effort of the task requirement. My point of view regarding the formal communication flows is that common problems occur at the upward communication, where employees have less interest in giving feedback to managers. Although the upward and downward communication approaches are slightly easier to communicate because the communication structure and the means are accessible. From what I experienced, big companies often conduct many surveys but after collecting the results from the employees, the action to follow-up the results is simply not done or not becoming a priority. Therefore I am able to understand how important it is to gain trust from the employees and to encourage them of giving feedback. Managers should perform the follow-up and demonstrate the required improvement or changes according from the responses. 23

24 4.1.2 Informal Communication Informal communication is a social interaction of exchanging information that involves people in the organisation, where there is no need of using the formal communication channels. This communication flow is necessary to maintain the aspect of organisational life. The most regular places where informal communications take place are usually the canteens, hallways, or smoking rooms. A main concern of informal communication is about the grapevine or rumours. One person initiates and discusses an issue regarding changes in the management to other colleagues. The other colleagues may or may not be aware of the actual information, so the reliability of the message is unclear and the rumours may spread. Often rumours happen due to lack of information and insecurity. For that reason, I conclude that employees need to receive information about inside issues of the organisation from the managers or other reliable internal sources, rather than from the media or external parties. Managers should have open and honest communication with the employees and frequently share relevant information with them in order to diminish the grapevine. Although a great deal of organisational communication occurs through grapevine. Participants in grapevine communication include all groups in the organisation (managers as well as employees and men as well as women). 4.2 Significance of internal communication One of the fundamental keys of achieving organisation s desired objectives is by maintaining effective communication between the internal groups, including employees, management, works council, board of directors, trainees, and retired staff. These days, many companies realise that people (internal groups) are the most important asset, which brings the people as the main priority issue in the organisation. Internal communication includes all communication that is aimed at the target groups within an organisation (Figure 9). That means that every individual who works in a different function level (production staff, management) in an organisation, or organisational part (division, line department), and at another location (local, abroad) is involved in the process of exchanging information, creating values and behaviours within an organisation. In addition, a good structured communication plan with clear strategies, policies, vision, and objectives is fundamental to achieve the desired results of an interactive two-way communication process (a dialogue, not a monologue) and the involvement of actively 24

25 participating employees. Communication through available media plays an important part in the development of maintaining active internal communication, as well as a face-to-face meeting which is more personal and effective. Figure 9. Internal communication: a two-way communication process between management and employees informs Management Management= sender Employee = receiver Employees Employee = sender inform Management = receiver Furthermore, higher management needs to pay more attention to the internal communication matter and place it as main priority in an organisation s life. The background reasons are: (See Annex 5. How to motivate employees to work) Employees must be aware of organisation s activities Employees represent the identity, behaviour and values of the company. The employees define company s image when they interact with external groups (i.e. customers, competitors, government, suppliers). Employees should enhance their awareness to changing needs and circumstances Employees should inform to the management regarding new technique or new technology development in certain areas that can improve the quality or the process of achieving company s desired goals. Employees require a higher information need Employees are primary groups that must receive relevant information in order to diminish grapevine within an organisation, particularly when organisation experiences major changes. Thus a two-way communication between employees and managers need to be improved so that organisational goals are achieved. Quality awareness of products and services Every organisation desires to employ well trained, motivated and loyal employees in order to improve the quality of products and services. Managers should support employees by training skills, personal encouragement, and maintaining an open communication. Raise employees commitment to the job Good internal communication can generate a better work atmosphere and prevent employees from becoming ill or quitting their job. It also makes the process of recruiting new staff easier. 25

26 4.3 Problems Problems are potentially to occur within an organisation, whether it is a big or a small company, or perhaps local or multinational organisation. The following are the possible causes of problems concerning internal communication, based on my experience and literature review: (See Annex 6. Factors that influence the behaviour of the internal communication) Communication problems between management and employees, due to lack of information or inconsistency. Usually employees are not aware of the information, unless the managers deliberately attempt to convey the information. The choice of using words or language in exchanging information influences the quality of communication, such as misinterpreta tion. Meaning has to be given to words and many factors affect how an individual will attribute meaning to particular words. It is important to note that no two people will attribute the exact same meaning to the same words. Misreading of body language, tone or other forms of non-verbal communication. No structured and written organisation policies and procedures that results in insignificant two-way communication or a dialogue between the internal groups. Managers have no communication tools to measure the effectiveness of the communication works, in other words, they are uncertain of sending information to the right peo ple, also not knowing whether or not the receivers understand the message. As a result, people can misinterpret the message and a grapevine can occur easily due to lack of information. Employees misunderstand other s point of view due to stress or pressure at work. They intend to do what is urgent rather than what is important. Managers are deficient in communicative skills and are inexperienced in becoming leaders. Communication problems can arise when managers see no values in communicating with subordinates or other staff. For instance, managers hesitation of being candid. The manner of interpersonal communication is affected by the past experience with others and also by the organisational relationship two people have. For example, communication from a superior may be perceived differently than from a subordinate. Effective communication requires interpreting the basic values, motives, aspirations, and assumptions that operate across geographical lines. Culture differences such as time, manners, privacy, language, and norms, the opportunities for miscommunication are expected to happen. 26

27 5 Effectiveness of internal communication This chapter is about measuring the effectiveness of the action or the means within the organisation. The communication means is mentioned as well. 5.1 Ways to create effective communication Effective communication refers to a successful two-way process of conveying messages from a sender to a receiver, including feedback given. The communication approach covers aspect s of thinking, writing, speaking and listening, as well as formal and informal methods. I ensure that in real life, no matter the size of the organisation (small, medium or large), the value of internal communication is essential. Employees who are better informed are more satisfied, feel more involved and eventually contribute more to the organisations success. Employees should feel that they are a part of a large whole and have the big picture of the overal l company s objectives and strategies, so they are motivated and feel secure for their future carrier. Managers have to remember to perform follow-up or take action, after conducting surveys or other activities that involves employees participation so their contributions are really valued. (See Annex 7. Key Principles to Effective Internal Organizational Communications) Indicators for an effective communication According to two communication experts, Vos and Schoemaker, communication auditors assemble several indicators to implement relevant aspects to the internal communication performance, as follows: 1. Clarity aspects: information for staff and user-friendly communication means. All the information that employees receive about policies, tasks, social issues, are required to be complete, easy to understand, up-to-date and accessible. The communication means are also user-friendly, such as intranet. 2. Environment orientation (internal environment) aspects: commitment and communication experts deal with changes. Good communication relationship between the people leads to commitment and loyalty to the organisation as a whole. Thus, it is important to support the interactive communication activities that involve people participation, especially from bottom-up level. Higher level management or the CEO should show their face to the employees (until the lower level). Communication experts usually assist managers for support and advice during changing process in organisation. 27

28 3. Consistency aspects: coherence to the Human Resources department and other communication activities. Internal communication and HR are related because both matters deal with people. There are clear procedures of the timing of information issued to staff and media. Additionally, managers need to give time for follow-up, after conducted survey for instance or other communication issues. 4. Responsiveness aspects: communication skills. Managers require having good communication skills to promote response from the people, and this applies to staff that interrelates with customers. 5. Effectiveness and efficiency aspects: internal audits and image. Internal communication and the means are being assessed to investigate the effectiveness and efficiency. Another assessment is referring to the perception of employees to company s image. Additionally, the research desires to find out about employees satisfactory of the job performance and working conditions. 5.2 Basic principles to support the effective communication Downward communication: 1. Ensure all employees receive a copy of the strategic plan, including the organisation s mission, vision, values, goals and strategies about how those goals will be reached. 2. Ensure all employees receive employee handbooks containing all the up-to-date personnel policies. 3. Ensure all employees have a copy of their job description and organisation chart. 4. Regularly organise management meetings (at least bi-weekly), even if there is nothing to report. This way two-way communication can be maintained between staff and managers. 5. Monthly staff meeting to report how the organisation is doing, major accomplishments, concerns, announcements about staff or changes, etc. 6. Leaders and managers should have face-to-face contact with employees, at least once a week. 7. Regularly hold meetings to celebrate major accomplishments. This helps employees perceive what's important, gives them a sense of direction and fulfilment 8. Ensure all employees receive yearly performance reviews, including their goals for the year, updated job descriptions, accomplishments, needs for improvement, and plans to help the employee accomplish the improvements. Upward communication: 28

29 1. Ensure all employees give regular status reports to their supervisors, including previous tasks done last week, plan for the week after and any issues/comments. 2. Ensure all supervisors meet face-to-face at least once a month with their employees, to discuss progress, listen to any current concerns, etc. The function of this meeting is to develop a relationship between supervisor and employee. 3. Use management and staff meetings to request feedback. It is better that the member of the meeting prepare what they like to mention during the feedback session. Therefore for the meetings chairmen it is advisable to send meeting s agenda or presentation in advance. 4. Perform action after the feedback and maintain updates to the employees so they know what is happening. This could intrigue active participation and motivation from the employees when they know that their contributions are valued. 5. The most common form of communication is the grapevine circulation within an organisation. Subsequently, I believe that when managers implement the above principles in communication approaches and keep maintaining an active communication relation between the employees, the internal communication is going to be effective and will include the participation of all internal groups. 5.3 Internal communication means Means or tools in communication refer to the medium that is used to convey the message from a sender to a receiver. Referring to the communication approaches, in Figure 10 (below), it shows the potential communication channels/means that I observe current organisations mainly use to promote a two-way interaction between the employees. Since today s world is all about technology and instant messaging, the common usage means are done through the intranet site or by ing system. It is fast, accessible, and user-friendly. For instance, after a manager sends information to employees, they are implied to give feedback through the available means to give comments/suggestions about certain topics in the newsletter through the respond column on the company s intranet site. Mo reover, when dealing with employees abroad (a multinational company), management should take into consideration the cultural and language barriers. Although under the same organisation, each country has its own culture and ways of working. Therefore feedback is very crucial at this point in order to find out whether or not the message send from headquarters is fully understood. This kind of problem occurred in PHILIPS Lighting in Eindhoven. 29

30 Figure 10. Communication means Upward communication Face to face meetings Telephone/tele-conference Suggestion boxes Employee surveys Open door policy Open forums Downward communication Face to face meetings, team meetings Speeches Newsletters (written/electronic) Interactive intranet site s, video messages Horizontal Communication Interdepartmental meetings Newsletters (written/electronic), magazine Interactive intranet site Discussion board on company s intranet Training and workshops Newsletter (written/electronic) Corporate blogging Leaflets/flyers/posters Bulletin boards Manuals and handbook Internal magazines 30

31 6 Case studies The following section is a few examples of how com panies manage with their internal communication. 1. Nederlandse Gasunie. Nederlandse Gasunie, the Dutch nati onal gas company, moved into its new office building in 1994, the Security Department had a problem with the internal communication. The problem is: How to inform all 1000 staff, who are moving from the old building to the new ones in one weekend, about security and safe working conditions in as quick and adequate a way as possible? What about the trainees, who visit in the building for shorter or longer periods every day? Internal communication developed a plan for this which comprised an integrated programme of printed media, video and computer information. The message reached the target group in a visual, interactive and readable way. This coherent information package consisted of a documentary film, a computer disc and a set of leaflets. The short, dramatised video documentary gave a fascinating impression of the Security Department, surveillance in the new building, the coming and going off staff and visitors (ID card system), the activities of the emergency services in case of tragedy/disaster, and procedures relating to information security. The computer disc contained information in text and image on safe working conditions and company security. This disc is interactive and was distributed to all staff after the (compulsory) viewing of the documentary. On the first day entering the office, all staff received a number of leaflets: a floor plan of the building, the evacuation procedure, guidelines for work station furnishing and telephone use, and other important instructions. The other communication tool was a monthly staff newsletter Gasuniek and the company video (four times a year) was used to bring the forthcoming changes to the attention of all staff. The security unit was allocated in an office room with video equipment in the entrance hall, where trainees, holiday workers and staff members of suppliers could be briefly instructed and informed on security and safety in the new building. 2. Eastman - The broken record technique method. Eastman is a large producer of polyester plastics for packaging and supplier of raw materials for paints, coatings, etc. Eastman has 15,000 employees in 30 countries, of which 31

32 2,300 are in Europe. One of the effective communication means that Eastman uses is intranet. Netpresenter developed a technical system to push messages instead of waiting for employees to read the intranet ( pull ). Netpresenter is a news medium which can be connected to the intranet and utilises push technology to bring our news to every screen. Instead of employees using screensavers for personal pictures, Eastman news appears. The broken record technique or the power of repetition is the best method of internal effective communication. With Netpresenter, messages that require the attention of employees are now displayed via screensaver. Using push instead of pull technology, employees don t have to do anything, news is pushed directly to them. When a computer is not being used for a few minutes, the screensaver starts and the messages are displayed again. Manager can easily send message with hyperlink to the full article on the intranet by using Netpresenter. It is sufficient, efficient, fast and hardly without any load on the network. 3. PHILIPS Lighting - Business Unit Consumer Lamps Europe One of the Business Units in PHILIPS Lighting, BU Consumer Lamps Europe has a problem concerning the internal communication. They have various communication means available to communicate with the employees (including outside the Netherlands), however the managers receive little feedback from the employees. There are various communication means available and also many information is send out without verifying the effectiveness of the messages or the communication means itself. From the PHILIPS Business Excellence Survey results, it shows that the managers need to coach and encourage employees more in giving feedback. Also, the lower the management level, the less feedback is given back to the upper management. This can be caused due to the distance (outside the Netherlands) and culture differences. A structured Communication plan and practical recommendations are given in order to solve the internal communication problem. More dialogue sessions and interactive means will be used in the future, and of course face to face meetings will be organised more often because they are more personal. Monthly interactive newsletter and discussion board in the intranet, regular visit by the CEO to the factories, open-door policy, training and workshops are some of the recommendations. (PS: The PHILIPS Lighting internal communication report is presented at an individual report) 4. Hewlett-Packard Company (HP), with the slogan the HP way. HP serves more than one billion customers in more than 170 countries on six continents. 32

33 HP has approximately 150,000 employees worldwide and their revenue in 2006 is US$88.89 billion. HP's mission is to invent technologies and services that drive business value, create social benefit and improve the lives of customers with a focus on affecting the greatest number of people possible. Their business success depends on some of these factors: motivated employees; trust as the basic guidelines to a high performing workplace; all employees make contribution; operate the open door policy to create a workplace where everyone's voice is heard; communication flows across all levels of the company; good internal communication to keep employees well informed and provide feedback opportunities These are some other HP communication initiatives: Employee networks, including web discussion forums and newsletters; Twice-weekly global alerts to provide employees with company-wide news; Senior Leaders meetings, providing managers with important updates for their teams, occurring every six weeks; Quarterly business performance review videos from senior management; Regional site visits, allowing employees to ask the CEO questions; Twice yearly state of the company broadcasts from the CEO to all employees. The detailed presentations of the results are made to all executives and customized reports are given to each group manager. Managers are then required to develop 30-, 60- and 90- day action plans for responding to the data. In addition, HP s Board of Directors, Executive Council and CEO Mark Hurd personally share in reading employees anonymous written comments. To complete the feedback loop, results and next steps are shared with employees after senior management assesses the company-wide data and determines appropriate next steps. Employees can also expect their managers to share work group data and solicit their participation in identifying key issues and creating action plans at the work group level. 5. FedEx Corporation slogan: anytime, anywhere 33

34 FedEx is a global shipping, logistics and supply chain management company. With annual revenues of US$31 ($40) billion, FedEx operates in about 220 countries and territories around the world and employs more than 260,000 employees and contractors globally. FedEx is using some philosophies and approaches to gain employees commitment and dialogue that are of interest to this project. Such as the people service profit, techniques used in surveying the workforce, and the guaranteed fair treatment, which brings to high lev els of service demanded by employees were an integral part of the decision-making process, due to his belief that when people are placed first they will provide the highest possible service, and profits will follow. In a survey review sessions, managers hold feedback with their employees to discuss the sur vey findings and identify problems within and outside of their department. As a group, they develop formal, written action plans for solving these problems. Once they develop an action plan to solve issues, this becomes the responsibility of all the employees in the workgroup. It s not just the manager trying to resolve the issues, but it s the employees and the manager working together to resolve whatever those issues may be. It s a means of engaging all of our employees so that they can participate in expressing concerns about issu es and at the same time participate in solving any problems that might arise. 34

35 7 Conclusions "No manager can be effective in his job unless he is able to communicate. It is the most essential single skill. I hope that managers everywhere will seek to improve their ability, for it is one that can be learned." (Sir John Harvey-Jones, former chairman ICI and renowned European 'trouble-shooter ) People are the most important asset of an organisation, which means the communication relation with the internal group must be a top priority in the management s agenda and budget. According to the quotation from Sir John Harvey-Jones, he stated how essential it is for managers to be able to practise their communication skills in order to perform the job well. This brings back to my main question which is: How do managers improve their communication skills? A corporate communication strategy is linked and is part of the organisational strategy. The elements of the organisational strategy must be constructed in order to compose the strategy for corporate communication. An organisational strategy includes: vision, mission, strategy, goal, policy, aim and tactic. The management of an organisation use different kind of strategies in communicating with the internal groups to encourage an active involvement, dialogue and increase the sense of belonging (the we feeling ). I offer the following recommendations as the answers for the above question. These are the potential steps for managers to improve their competencies in communication: 1. Construct messages with a clear purpose in mind. Managers should avoid covering too many issues at one time. Focus on one or a few key points. 2. To persuade and inspire people, aim for true intimacy. Approach the communication openly, honestly, even vulnerably. 3. Do not forget to listen. Every communication should be structured to invite and encourage feedback. 4. Pay attention to timing. Managers need to be visible and accessible, ready and willing to answer questions, provide clarifications, and offer support. 35

36 5. Managers need to be aware of their body language and actions. People are alert to any cues as to what is really going on in the organization. Facial expressions, moods, who the manager has lunch with, and whether the manager is present during organizational events will be interpreted by employees. 6. Stay in touch with the grapevine. The grapevine operates more effectively than formal channels. Create an in ternal communication department that handles communication issues. 7. Developing managers communication competencies in feedback and coaching. For instance, employee performance review, reward issue and develop future assignments with them. 8. Organise social activities and provide facilities to employees. A recreational event or social activities may help reduce the gap and improve the bond between (high level) management with the personnel. Also, by providing facilities and discounts arrangements stimulate employees to be loyal to the job. 9. Communication via the line manager. Employees have an opportunity to ask questions and review the task with line manager and this communication approach usually the most effective one. 10. Set a calendar plan for internal communication activities. Communication activities should be plan in advance and set in the yearly organisation s agenda, like group meetings, personal performance review, open forum, social drinks. 11. Openness strategies. Openness is an essential factor in communication. The openness strategies consist of closed-door, door-ajar, open-door, and influencing strategy. These strategies define the quantity of the organisation desires to be open or publish its news/issues to its publics. 12. Set standards and commit to them. The communication channels should be determined, which ones are mandatory and which ones are optional. For instance, a mandatory activity is a town-hall meeting holds every quarter. In addition, management should review the quality and effectiveness of all the available channels. Management and communication are two related subjects that are sometimes difficult to separate within organisations. It does not mean that there is no need for an internal communication department (if necessary) or a corporate communication department. In a contrary, big company (such as PHILIPS) is highly recommended to employ an internal communication team or department due to a large number of employees in many countries in the world. 36

37 The managers role in daily situations is important because they are the ones who interact and communicate with the employees. In addition, they have to be the experts in maintaining an active and healthy communication relationship between one and another. Subsequently, managers need to stimulate the employees participation and create a warm working atmosphere for people to eagerly come to work. As it was mentioned before, communication is a two-way process of exchanging messages, when the receiver and the sender perceive the same message that means the communication is successful. A feedback or response is required in order to confirm the message has been understood or not. When the message is unclear, it is reasonable that both parties perceive differently. Therefore an interactive communication means and a dialogue meeting are needed to encourage employees participants. Fu rthermore employees need to be communicated to regularly by the managers regarding the company s vision, mission, objectives, strategies and how to achieve them. Managers and the CEO must show their face and have personal contact to engage people s loyalty. Communication activities must be scheduled ahead in the yearly agend a, for instance, an informal meeting, like social drinks or casual Friday capable to diminish the gap between (higher level) management and employees. This way, employees have the opportunity to meet and talk with the managers openly or at least in a less formal atmosphere. Another important point regarding managers communication skills is the ability to listen. By listening, employees will be willing to speak or giving certain response and being open for any suggestions will bring confidence and feeling appreciated. As a result, I believe that if the managers master communication skills and actually perform the above steps, improvement and active participation (of managers and employees) will occur in achieving effective communication in an organisation. No matter how small or how big the size of the organisation, managers must learn and ma ster the communication competencies. Although communication is simply like an easy thing to do, conscious or unconsciously, problems regularly occur in an organisation. Managers are trained to gain excellent communication skills so that a two-way communication process (or dialogue) occurs and employees become more motivated to do their job. When employees are motivated, they execute the duty well and enhance a commitment to the company. 37

38 8 Acknowledgements - Blundel, Richard. Effective Organisational Communication: Perspectives, principles and practices (2 nd edition). Prentice Hall, UK Blundel, Richard. Effective Business Communication: Principles and practice for the information age. Prentice Hall, UK Daniels, Tom; Spiker, Barry & Papa, Michael. Perspectives on Organisational Communication (4 th edition). Brown & Benchmark Publishers, USA Hargie, Owen & Tourish, Dennis. Handbook of Communication Audits for Organisations. Routledge, UK Herle, Mariet & Rustema, Carin. Corporate Communication Worldwide. Wolters- BV, the Netherlands Noordhoff - Jay, Ros. The Seven Deadly Skills of Communicating. International Thomson Business Press, UK van Riel, Cees. Principles of Corporate Communication. Prentice Hall, UK Vos, Marieta & Schoemaker, Henny. Accountability of Communication Management. LEMMA Publishers, the Netherlands Vos, Marieta & Schoemaker, Henny. Integrated Communication: Concern, internal and marketing communication. LEMMA BV, the Netherlands Online articles links:

39 9 Annexes In this section, additional information is presented. The graduation project of the PHILIPS Lighting is presented as a separate report. Annex 1. Internal Communication position in the organisation According to the result findings from an organisational communication research company, Melcrum, it states that the Corporate Communication department operates the most in the internal communication function (38%), after that is the Human Resources with 19% and Marketing division with less than 10%. So it is clear that the internal communication section is under the Corporate Communication department, which needs its own team management, especially in a big company. Organisation divisions responsible for Internal Communication Corporate Communication 38% Human Resource 19% Other 22% Marketing 9% CEO's office 6% PR 6% 39

40 Annex 2. Key aspects to motivate managers of communicating effectively. Annex 3. Effective internal communication starts at the top Effective internal communication starts at the top: help executives understand the need for clear, concise communication A study conducted for the Allen Consulting Group in 2003 to identify the key drivers of effective change management found a strong statistical relationship between CEO and divisional executive communication and "organizational satisfaction and culture." This correlates strongly with employees' perceptions that "major changes appear well planned" and "implementation of changes is well handled," as described in CW. CEO and divisional executive communication was found to be far more likely to influence employees' perceptions that change was well planned and well implemented than, say, immediate manager or team communication. Communication audit results from other organizations reveal some very untidy scores: * 10 percent of employees agreed that executives were aware of their concerns. * 15 percent agreed that the head office communicated effectively. * 19 percent agreed that senior executives were visible. * 19 percent agreed that executives sought their views and listened. * 21 percent agreed that they were informed of plans and directions. * 23 percent agreed that executives communicated well. 40