Business Communication
This study examines the importance of communication on the performance and motivation of employees. The target samples of the study are employees from service and manufacturing companies. This allows seeing the importance of organizational communication in two different angles – that is the difference between the views of service and manufacturing companies regarding the matter. Comparison of these views may lead to the development of new hypotheses or theories that may contribute to human resource management research. In this chapter, the nature of problem is presented and discussed. The backgrounds of different variables related to the study were also featured. Here, the aims, objectives, problem statements and significance of the study were also explained.
BACKGROUND OF THE STUDY
Employees
Employees basically refer to people who work for another in return for wages or salary (Gillis, 2004). Legally, an employee is referred to a person hired to provide services to a company on a regular basis in exchange for compensation, and who does not provide these services as part of an independent business (Gillis, 2004). However, Gillis (2004) stated that employees are more than any of those definitions. Employees are the lifeblood of the organization because they are the ones who provide products and services that define corporations, organizations and government entities (Gillis, 2004). They are referred to as the most precious assets of the organization because without them, the organization is crippled and cannot function effectively.
Because of the important role of employees, organizations have the responsibility to motivate them so as they can function more effectively. Theories of motivation such as Maslow’s theory, Alfelder’s theory, McClelland’s theory, and Herzberg’s theory (Mullins, 1999) explain why employees should be motivated and why organizations should take this concept into consideration. But what really constitutes effective employee motivation? Several research and organizational reports point positive communication as one of the most important factors that build effective employee motivation. For instance, Riccomini (2005) cited a couple of organizational research by General Electric and Hewlett-Packard in the eighties that concludes: “The better the managers' communication, the more satisfied the employees were with all aspects of their work life”. Building a positive communication with employees is important because they are the organization’s best ambassadors or loudest critics, depending on how fast they get relevant information and the context in which it is received (Howard, 1998). Information consistency affects the success of the company and if it fails to communicate information internally and externally, the reputation of the company may fall. Communication basically uplifts the morale of an employee as it makes them feel that they are valued by the organization. This also builds employee loyalty and satisfaction. As Goldfarb (1990) stated: “
Employers are becoming more aware that employee loyalty, commitment, and concern for quality depend on effective employee communication.
Communication
Communication is not just important to an organization, but is an important component in everyday human life. Gamble and Gamble (1999) stated: “Communication is the core of our humanness”, and that “how we communicate with each other shapes our lives and our world” (p.4). Communicative skills help humans to reach out to one another or to confront events that challenge our flexibility, integrity, expressiveness and critical thinking skills (Gamble and Gamble, 1999).
Communication is rather complex to define in a single sentence. In a glimpse, however, it has many types which include: interpersonal communication; intrapersonal; group communication; public communication; mass communication; and online or machine-assisted communication (Gamble and Gamble, 1999). Interpersonal communication means to interact with another person, while intrapersonal means to interact with oneself, or to reason with or evaluate self (Gamble and Gamble, 1999). Group communication, on the other hand, is defined as the process of interacting with a limited number of others, work to share information, develop ideas, make decisions, solve problems, offer support, or have fun (Gamble and Gamble, 1999). Mass communication, is communicating to a large number of people using media (television, newspaper, internet, radio), and finally, online or machine assisted communication deals with communicating through the use of online software that are programmed to interact with browsers or users (Gamble and Gamble, 1999).
Communication is also categorized into two: verbal and non-verbal. Verbal communication means the use of the spoken word when communicating, while non-verbal communication means using other medium such as body signals, writing etc. (Gamble and Gamble, 1999).
Communication undergoes a process, which involves the information source, the transmitter, noise source, receiver and destination. This is based on the communication theory (see figure 1) that was developed by Shannon and Weaver (1949). The information source is the communicator of the information, which then uses a specific type of transmitter or medium (e.g. verbal, written, telephone, etc). The receiver receives the information, but the information can be affected by a specific noise source, which can be a distraction from anyone or anywhere. The receiver then interprets the message and finally puts the communicated message in its destination (Bryant and Heath, 2000).
The theory of communication evolved over the years, but the model of Shannon and Weaver (1949) is one of the firsts that explains the process of communication. Today, communication is being regarded as an important factor in business, and that the ability of the company to communicate can determine its success.
Business Communication
Communication is important in business because a business environment is a place where many interactions are needed, and much information should be acquired (Eckhaus, 1999). It always involves openly competitive activity, in which working professionals debate issues, defend positions, and evaluate the arguments of others (Eckhaus, 1999). Most working professionals, particularly those in middle and upper management, routinely produce a variety of messages, many of which are in the written form of memoranda, electronic mail, letters, reports, performance reviews, instructions, procedures, and proposals (Eckhaus, 1999). It is also argued that a fuller understanding of organizations is a vital ingredient at every forward step of the career process, and that communication is a primary element for understanding how organizations function and how members of the organization should, even must, behave in organizations if they are to advance their careers (Harris, 1993).
The practice of effective communication within the organization is also linked with the development of a healthy corporate culture, job satisfaction of employees, and the happiness and productivity of employees (Harris, 1993). Communication skills are also important to organization leaders because it helps them manage the company more effectively (Harris, 1993).
Companies recognize the importance of communication that is why it is a barometer in hiring or measuring employee performance. Waner (1995) found that companies want their employees to maintain confidentiality, write persuasively, write routine letters, use proper placement and format, compose at the keyboard, and write special types of letters. Furthermore, interpersonal and oral skills were rated as very important. Also, basic English as well as abilities dealing with ethics, morals, values, and sensitivity were rated either important or very important (Waner, 1995).
Although there were proven studies that communication promotes positive improvement in organizations, specifically motivation and performance improvements of employees, studies often fail to compare the level of importance of communication in terms of firm industry types. Firms of today can either belong to the manufacturing or service industry. Each industry has different traits and characteristic from the other. Service industries sell and produce intangible services, while manufacturing companies sell tangible manufactured products. The management of the service firm is basically different the manufacturing firm because they have different organizational structures, services and products being provided, and working systems.
STATEMENT OF THE ISSUE AND RESEARCH OBJECTIVES
While many organizations believe that positive employee communication promotes employee motivation, this belief can still be considered as a complex issue because of the changing nature of organizations and the differences of their structure. For instance, the old employee communication paradigm relied on top-down approaches to reach their employees (Edelman, 2004). Today, this has already been replaced by new communication paradigms where employees “ping” sources both inside and outside their organization for information (Edelman, 2004). Employees are now basically treated as consumers. The Workplace Communication Consultancy (2005) even reported that statistics show “90% of those who are kept fully informed are motivated to deliver added value; while those who are kept in the dark almost 80% are not”. However, such results are not industry specific. Industries vary in terms of culture – for instance, service versus manufacturing industry. Thus, this study will confirm the effects of positive communication on employee motivation in two specific industries – service and manufacturing.
The following are the research objectives of the study:
1. To confirm the effectiveness of positive communication on employee motivation?
2. To determine the effects of positive communication on employee motivation in service companies.
3. To determine the effects of positive communication on employee motivation in manufacturing companies.
4. To find out if the relationship between positive communication and employee motivation depends on which industry the organization is into.
Needless to say, two groups of companies will be surveyed in this study –from the service industry; and from the manufacturing industry. The results from the two groups will be compared and evaluated to determine if the relationship between positive communication and employee motivation depends on a specific type of industry.
SIGNIFICANCE OF THE STUDY
The study is significant to both service and manufacturing companies because it offers insights on which industry gives higher importance to communication. Through this study, the importance of communication in organization is once again emphasized. However, the comparison between the two business industries gives new insights and may develop new hypotheses for future studies. This study may help develop theories for service and manufacturing companies on how communication can be used as a tool to motivate employees to improve their performance or work.
This study is also significant to communication and business students. For communication students, this study may benefit them because it may serve as a reference when it comes to communication theories or the role of communication in business. On the other hand, for business students, this paper may also serve them as a useful academic reference tool. Through this study, they will realize early the importance of communication and how this can help them become motivated or more active at work.
THEORETICAL FRAMEWORK
Because the aim of this study is to determine a possible motivational factor for employees (which is specifically “communication”), the theoretical frameworks that have been chosen for this study are motivational theories – a content motivation theory; and a process motivation theory. Theories of motivation can be divided into two: the content theories; and the process theories (Mullins, 1999). Content theories emphasize the factors that motivate individuals. Examples of content theories are Maslow’s theory, Alfelder’s theory, McClelland’s theory, and Herzberg’s theory (Mullins, 1999). On the other hand, the emphasis on process theories is on the actual process of motivation. Some examples of process theories are Expectancy theories, equity theory, goal theory, and social learning theory (Mullins, 1999).
The content motivation theory that has been chosen as one of the frameworks for this study is Herzberg’s Two-Factor Theory or Motivator-Hygiene Theory. This theory basically extended Maslow’s hierarchy of need theory and is more directly applicable to the work situation (Steers, 1983; Kreitner and Kinicki, 1998). Herzberg's research suggested that motivation is composed of two largely unrelated dimensions: job-related factors which can prevent dissatisfaction, but do not promote employees' growth and development (hygiene); and job-related factors that encourage growth (motivators) (Steers, 1983; Kreitner and Kinicki, 1998).
Herzberg’s theory is the first of its kind to emphasize the importance of non-monetary rewards in motivating employees (Gevity Institute, 2005). According to this theory, satisfying experiences are most often associated with the non-monetary, or intrinsic, content of the work. This includes variables such as achievement, recognition, personal growth, personal responsibility and the characteristics of the work (Gevity Institute, 2005). These factors are called motivators. When people are satisfied, they attribute their satisfaction to the work itself and not on the environment in which they work (Manisera et al, 2005).
On the other hand, dissatisfying experiences result from the extrinsic work environment (Gevity Institute, 2005). These factors include company policies, salary, co-worker relations, supervisor relationships, status, supervision, personal life and job security (Herzberg, 1966; Gevity Institute, 2005). Extrinsic factors cause a person who feels neutral about the job to feel dissatisfied and less motivated (Herzberg, 1966; Gevity Institute, 2005). The theory explains that workers basically attribute their dissatisfaction to the environment in which they work, or conditions that surround the doings of the job (Herzberg, 1966; Gevity Institute, 2005). This is also known as the “Hygiene factor” (Herzberg, 1966). This should be continually maintained because employees never completely satisfied (Manisera et al, 2005).
Manisera et al (2005) noted that when the hygiene factors are very low, workers are dissatisfied. However, when hygiene factors are met, workers are not dissatisfied but it does not necessarily mean that they are satisfied or motivated to work. The same goes for the motivator factors. When motivators are met, workers are satisfied leading to higher performance. However, when motivators are not met, workers are not satisfied but it does not necessarily mean they are dissatisfied with their work.
For this study, the following are the motivators and hygiene that affects the employees: On the other hand, the process motivation theory adopted for this study is the goal theory of motivation. In the late 1960s, Edwin Locke proposed that intentions to work toward a goal are a major source of work motivation (Locke and Latham, 1990). That means the goal will tell the people what needs to be done and how much effort will need to be put in order to fulfill the goal and target of the organization (Locke and Latham, 1990). The key steps in applying goal setting are: (1) diagnosis for readiness; (2) preparing employees via increased interpersonal interaction, communication, training, and action plans for goal setting; (3) emphasizing the attributes of goals that should be understood by a manager and subordinates; (4) conducting intermediate reviews to make necessary adjustments in established goals; and (5) performing a final review to check the goals set, modified, and accomplished (Matteson, 1999).
Aside from motivational theories, a communication theory should also be used for this study so as to have a process on how effective communication can be achieved. In this case, the communication theory adopted for the study is Osgood and Schramm’s circular theory of communication (Schramm, 1954) (see figure 3):
This theory is also based on Shannon and Weaver’s communication theory. Schramm also believes that the communication process should consist of a sender, channel and receiver (Bryant and Heath, 2000). However, Schramm explains that while one person is speaking, the other is listening. How this listening is done constitutes information for the sender (Bryant and Health, 2000). If a receiver frowns, that provides different information than if “he or she” smiles supportively (Bryant and Health, 2000). It is explained in this theory that recognizing the dynamics of interaction countered the tendency to communication as a linear progression of steps leading to or "causing" each following step. He understood that people respond idiosyncratically to messages as a function of their personality, group influences, and the situation under which the communication occurs (Bryant and Health, 2000).
The process of the model is simple. In it, the sender and receiver function as both encoder and decoder of information. Each functions as the interpreter of the message (Underwood, 2003). This model explains that effective communication can be possible if both the receiver and the sender are capable of interpreting meanings out of the information being communicated. For instance, in the business context, the supervisor may mean well and believe that he is delivering the messages properly to the employees. However, because the employees have not been briefed earlier about a particular piece of information that plays an important part on what the supervisor communicated, they miss the point of what the supervisor tries to say. In return, the supervisor may interpret that the employees are still ignorant about a specific piece of information and still need further briefing.
CONCEPTUAL FRAMEWORK
By combining the elements of the Two-Factor Theory, Goal Theory and the Circular theory of communication, a conceptual framework has been developed for this current study. The framework tries to interpret that the higher the level of hygiene and motivator in terms of how the supervisor communicates with the employees during policy briefing, training, or just informal talk, the higher the possibility that employees will develop goals. However, the effectiveness of that process is affected by how well the two parties communicate – that is show well the employees encode, interpret and decode the messages that the supervisor tries to disseminates, and vice-versa, on how well the supervisor encode, interpret and disseminate the messages that the employees give in return. The following figure (Figure 4) further explains the form and process of this conceptual framework:
LIMITATIONS
A study that compares statistically the effectiveness of communication on employee motivation between service and manufacturing companies may provide new results that can be further explored in future studies. This type of study allows seeing communication importance in two views – that is the view of service and manufacturing companies. Comparison of these views may lead to the development of new hypotheses or theories that may contribute to human resource management research.
However, like any other study, this research also has various limitations that may affect the credibility of its results. One of the limitations is that data are only acquired through survey. Surveys are limited only to abrupt responses unlike one-on-one interviews where the respondents can further explain their answers to the researchers’ questions. Participation of companies may also be a limitation of this study as there may be some who will not be willing to participate or who may participate half-heartedly.
Developing a good semi-structured questionnaire may also be a problem. In this matter, sufficient literature review will be conducted. Literature reviews will be presented in the Chapter 2 of the study. The discussion of these literatures will stand as secondary data of the study. These literatures will help the readers understand the basic and advanced concepts that are related with the problem of the study.
Questionnaires were also pre-tested so that errors can be spotted and they can be modified immediately to suit the study better. A pre-test of the questionnaires will be conducted to 10 samples so as to validate if its contents are okay and can actually answer the research questions of the study. If ever the questionnaire is not suitable as the pre-analysis show, it will be immediately modified. The suggestions of the 10 pre-test samples will also be considered in the modification. The pre-test samples will not be included in the actual set of respondents.
The questionnaires will be administered to respondents through email or personal contact. The questionnaires will contain an introduction that explains clearly the purpose of the study. The questionnaire also contains clear instructions so as the respondents are well-guided throughout their encounter with it.
CHAPTER 2
LITERATURE REVIEW
Presented in this chapter are the literatures – theoretical and academic – that were collated for the sake of understanding more about the study’s topic, which is the relevance of effective communication to employee motivation and performance. This literature review contains three categories: motivation literatures; communication literatures; and literatures that try to explain the relationship between communication and motivation.
Motivation
Motivation can be assumed as the reason or the force behind why a person does what he or she does. Sometimes, it is also a means to make the person perform better and more efficient. Basically there are three assumptions in human motivation established in research. The first one assumes that motivation is inferred from a systematic analysis of how personal, task and environmental characteristics influence behavior and job performance (Wiley, 1997). The next one infers that motivation is not a fixed trait; but rather it refers to a dynamic internal state resulting from the influence of personal and situational factors (Wiley, 1997). This means that motivation may change with changes in personal, social or other factors (Wiley, 1997). Finally, motivation affects behavior, rather than performance (Nicholson, 1995; Wiley, 1997). Wiley explained: “Initiatives designed to enhance job performance by increasing employee motivation may not be successful if there is a weak link between job performance and an employee’s efforts” (p.263).
Definition of motivation varies. Robbins (1998) stated: Motivation – “The willingness to exert high levels of effort toward organizational goals, conditioned by the effort’s ability to satisfy some individual need”.
On the other hand, Greenberg and Baron define the motivation as “the set of processes that arouse, direct and maintain human behavior toward attaining some goal” (Greenberg and Baron, 1997). This definition contents three key essential aspects: arousal, direction and maintaining. Arousal is to do with the drive/energy behind people’s actions such as their interests to do the things or they do it just want making a good impression on others or to feel successful at what they do. Direction means the choices people make to meet the person’s goal. Maintaining behavior could keep people persisting at attempting to meet their goal hence to satisfy the need that stimulated behavior in the first place.
Mitchell defines motivation as ‘the degree to which an individual wants and chooses to engage in certain specified behaviors’ (Mullins, 1999). From this theory, Mitchell identifies four common characteristics which underline the above definition of motivation: Motivation is typified as an individual phenomenon. Every person is unique and all the major theories of motivation allow for this uniqueness to be demonstrated in one way or another.
Ø Motivation is described, usually, as intentional. Motivation is assumed to be under the worker’s control, and behaviors that are influenced by motivation, such as effort expended, are seen as choices of action.
Ø Motivation is multifaceted. The two factors of greatest importance are (i) what gets people activated (arousal); and (ii) the force of an individual to engage in desired behavior (direction or choice of behavior).
Ø The purpose of motivational theories is to predict behavior. Motivation is not the behavior itself, and it is not performance. Motivation concerns action, and the internal and external forces that influence a person’s choice of action.
From the definitions mentioned, it can be analyzed that motivation is necessary for the growth of the employee in the organization. The employee starts his career through learning, basically the culture of the organization and his responsibilities. Motivation is a vital element to learning because if an organisation does not possess the ability to motivate its employees, the knowledge within the organisation is not practically used to the fullest. (Osteraker, 1999) Thus, in every successful learning organisation, finding the factors that will motivate its employees to partake in continuous learning and to take advantage of this knowledge, accordingly, becomes their aim (Osteraker, 1999).
Basically there are three assumptions in human motivation established in research. The first one assumes that motivation is inferred from a systematic analysis of how personal, task and environmental characteristics influence behavior and job performance (Wiley, 1997). The next one infers that motivation is not a fixed trait; but rather it refers to a dynamic internal state resulting from the influence of personal and situational factors (Wiley, 1997). This means that motivation may change with changes in personal, social or other factors (Wiley, 1997). Finally, motivation affects behavior, rather than performance (Nicholson, 1995; Wiley, 1997). Wiley explained: “Initiatives designed to enhance job performance by increasing employee motivation may not be successful if there is a weak link between job performance and an employee’s efforts” (p.263).
Wiley (1997) conducted a summary of the past 40 years surveys conducted in the Europe and American countries showed that the 5 top factors that motivate employees in their jobs, among from 20 alterative motivators, are:
1. good wages;
2. full appreciation for work done;
3. job security;
4. promotion and growth in the organization; and
5. interesting work.
This shows that leadership basically plays an important role in employee motivation. The supervisor should know how to recognize success and how to praise those who deserve praises. Several studies found positive linkage between leadership styles and job satisfaction, except for the initiating structure leadership style, which similarly shows negative effect on job satisfaction (Holdnak et al, 1993; Pool, 1997; Lok and Crawford, 2004). Deserving employees can be effectively praised and recognized through awards and bonuses. Developing a program were a particular employee with good performance would be branded as employee of the week can also be a good idea. Of course, this should also come with small rewards to make employees feel that their efforts pay off. Furthermore, a feedback rater group should be established to identify those who deserve praise, but should be anonymous. Ratings should be on employee behavior and work performance.
Reforming the compensation scheme should also be considered. Wiley (1997) stated that employees overall expressed the importance of pay as a motivator, and an effective compensation programme is critical. A good way to change compensation is to make sure that it affects the employees’ hierarchy of needs. For instance, a daily meal allowance can satisfy their physiological needs, while an increase in salary or extra bonuses can increase the employee’s esteem and safety as such actions symbolically tell them that their efforts are being recognized and that they are secure in the company. Promotion should also be given to those skilled workers who deserve promotion. This action can basically satisfy their social needs.
On the other hand, Hong and his colleagues (1995) of National Taiwan Normal University conducted a study in order to understand the impact of employee benefit on employees' work motivation and productivity. They contend that everyone works in expectation of some rewards, and welfare is one of them. In order to fulfill their research aim, the said group sent questionnaires to corporations that had undertaken employee benefit programs.
Hong and his colleagues (1995) found out that employees who receive better implemented benefit programs tend to perceive less impact of benefit programs implementation on job performance; this is because when a certain program is adopted, employees' demand for it decreases, as does its perceived impact on performance, and vice versa.
Other significant findings include: employee benefit programs have greater impact on work-motivation than on productivity; monetary benefit programs are most highly valued by both executives and workers; there is a cognitive gap between management and worker on the importance of employee benefit programs ; (3) there are differences between employee benefit needs of females and males as a result of different social roles; (4) single employees perceive more employee benefit impact on job performance than married ones; (5) employees with different education levels perceive different employee benefit impact; (6) employees with different positions perceive different employee benefit impacts; and finally, (7) employee benefit programs have greater influence on job performance of younger employees (Hong et al, 1995, p. 14).
Neff (2002), in her research entitled “What Successful Companies Know That Law Firms Need to Know: The Importance of Employee Motivation and Job Satisfaction to Increased Productivity and Stronger Client Relationships”, examined one law firm to determine the quality of the relationship between lawyers and their staff members as well as to ascertain what features of the workplace would most likely have a positive effect on employees' motivation and loyalty. The case study found that employees valued extrinsic rewards such as salary and retirement benefits to the same degree they valued respect and positive recognition from the lawyers (Neff, 2002). An incentive program is suggested, but it can be effective with three fundamental principles: rewarding incentives must be concretely linked to firm objectives; employees must understand the objectives and how their individual performance is linked to attaining them; and employees must be able to realize the objectives through performance (Neff, 2002). Those three principles basically suggest the importance of communication in making a specific motivational strategy to take into effect.
