Internal Communication

Internal Communication

Communication

Communication can be defined as the process by which an idea transfers from a source to a receiver, the intention being to change receiver behavior (Roy 2010, p. 9). The main components in the process typically include source, message, channel, receiver, effect, and feedback. It is suggested by several multinational organizations that high-speed management reflects an effective communication system employed by well-managed companies, who rapidly reorient the organization to a changing environment to retain competitive advantage (Roy 2010, p. 9).

One of the key factors in attaining high levels of organizational effectiveness is sound communication. Organizational communication, a relatively new area of study, deliberates on the importance of communication that goes far beyond training employees with effective communication skills to also address the communication needs and challenges faced by organizations (Roy 2010, p. 10). Organizational communication consists of a number of principles. Communication is a central and not a peripheral component of organizational effectiveness. A line of studies have indicated the relationship between internal communication and organizational efficiency and effectiveness (Roy 2010, p. 10).

Corporate Communication

Historically, corporate communications teams have focused on the stakeholders outside the walls of their respective companies (Hodge 2001, p. 368). Business leaders focused on delivering a high level of customer service and most communications professionals were groomed to reach out to shareholders, customers and all other external audiences. Before the 21st century, internal communications was not generally considered a priority of corporate communications or an essential function to the everyday operations of a company (Hodge 2001, p. 368). It was primarily the responsibility of the Human Resources (HR) department and focused on communicating about employee benefits and compensation. There was no communication to employees about the organization's business practices, strategies or goals. According to Hodge (2001), executives communicated only the information they wanted employees to know and as a result, internal communications efforts were trivial (p. 368).

Hodge (2001) explains that employees were expected to owe gratitude and loyalty to the organization and thus, there was a mentality that they should keep their opinions or concerns to themselves. In addition, nothing was ever shared externally about the internal environment of a company or employee relations (p. 369).

More recently, business leaders have begun to realize the importance and value of employee engagement. Employees are being recognized as contributing more to the success of a business than any other constituency. As the International Association of Business Communicator's (IABC) describes, it is the single factor that makes an organization viable, successful, effective and enduring (Hodge 2001, p. 369).

Internal Communication

The internal communications practice has also grown due to the rapid development of technology and social media platforms (Hodge 2001, p. 370). Organizations are becoming more transparent than ever before and external stakeholders are interested in knowing the company behind the brand. Different communication channels and platforms have made it easy for external stakeholders to explore out the internal environment of any company by reaching out to current or former employees (Hodge 2001, p. 370). Thus, employees are increasingly becoming public ...