CHAPTER ONE

INTRODUCTION

1.0 General Introduction

The study focuses on communication as a key important instrument for the maintenance of the betterment and the continuity of an organisation for the achievement of the organisational goals. For an organisation to achieve these goals, there is the need for human resource  management , and for this resources to be better utilise employees must be well informed so as to bring out the best in them there by making the organisational goals a priority. Communication help to broaden the skills of an employee, moreover, if an employee is well informed he/she turn to be satisfied with his job this however will lead to increase in job satisfaction and when employees are satisfied with their job, productivity turn to increased. Communication is a means of bringing about change. It is the mainstream of any organisation growth. There is need form interaction and understanding of management-employee relations this will bring about increased performance of all parties involved in the communication process or chain. According to Banihashemi (2011), communication as a medium, a means to performance ends, or as constitutive, as the end in itself. Communication is a process of transmitting information from one person to another. According to Stephen (2011), communication is a critical factor in directing and mobilising the workforce towards the accomplishment of the organisational goals or objectives. By creating understanding it enhances co-operation and promote effective performance. According to Williams (2007) smart managers understand that the end effective, straight forward communication between managers and employees is essential for success. However, this chapter introduces the study by looking at the background of the study, statement of the problem, research questions, research objectives, research hypothesis, significance of the study, scope of the study and definition of terms.

1.1 Background to the Study

In today’s age, information is becoming the vital asset of an organisation (Higson & Waltho, 2010). It is the basic means of production in any organisation in addition to the traditional ones: land, capital and labor (Druker, 1993). Choo (1998) stated that “information is an intrinsic component of nearly everything that an organization does so much so that its function has become transparent and productive.” Eadie (2009) noted that useful and timely information is the life blood of employees that is decisive for employees to make important choices in organising their activities and executing their tasks. This means that organisations should encourage the flow of information across the entire organisation for better achievements. Information must be exchanged among employees in the organisation so that they can carry out their organisational activities so efficiently and effectively. This is because it is through the exchange of information (communication) that the overall goals and objectives of the organisation can be achieved. Employees should communicate the right information at the right time using the right medium in order to execute their tasks (Crown, 2013). Therefore, information is a resource and is part of the communication process (Madden 2000).

In today’s organisations, communication has become an important factor for the overall functioning and success of an organization (Rajhans, 2012). Communication takes place when employees share or exchange meaningful and understandable information with one another. In organisational communication, good communication is the foundation upon which an organisation system is developed and maintained in order to get information, idea, or message exchanged across to others in order to achieve the intended performance. Without organisational communication, organisational excellence and performance would not exist and the various parts of an organisation would not be bound together for common goals (Researchcage, 2013). Further, according to Duncan and Moiety (as cited in Femi, 2014), employees relate with each other using means of communication. Therefore, communication binds employees together in an organization (Femi, 2014). For instance, according to Duncan and Moriaty (as cited in Femi, 2014), traditionally, managers spent the majority of their time communicating with employees and stakeholders in one form or another (face-to-face discussion, memos, notice boards, mass meeting, employees hand book, and public lectures) but, today, every worker finds out that communication is an important aspect of their work and leads them to effective and efficient work performance.

Communication in business organizations has also its own role in achieving the intended business goals, which is in turn achieved through employee’s performance. Harris and Nelson (as cited in Rajhans, 2012) pointed out that organisational communication is one of the most dominant and important activities in business organisations. Fundamentally, the functioning and survival of businesses organisations is based on effective communication among employees. In addition, Jones et al. (as cited in Rajhans, 2012) stated that “organisational capabilities are developed and enacted through intensely social and communicative processes. Communication helps individuals and groups carry out activities to achieve goals.” This means that effective communication is mandatory for achieving intended performances in businesses organisations. Thus, efficient and effective communication practices have become more important in all business organisations for greater employee’s performance (Rajhans, 2012). 

In relation to product and service rendering businesses, just like any other business organisation, businesses use communication as a tool to carry out their daily activities. In practice, there is no organisation without communication including the micro and small businesses (Spaho, 2011). Thus, employees of the micro and small businesses have to communicate to each other in order to have an understanding of their work and exchange needed information that is pertinent to their specific work so that they can achieve the desired level of performance. In addition, Rajhans (2012) pointed out that for effective production processes to produce the intended products require greater collaboration among employees in different functional units, which is achieved through effective communication. This means that employee performance could be enhanced with effective communication or interactions among employees in the businesses (Nwata, Umoh, & Amah, 2016). Further, Guo and Sanchez (as cited in Ergen, 2010) noted that there is a strong relationship between communication and the efficient and effective performance of the organisation, which is the result of employee’s performance. This is an indication that ocommunication is still one of the factors that affect employee’s performance in businesses including the micro and small businesses in Buea.

In relation to product and service businesses, just like in any other organisation, communication has important aspects that need to be considered since it determines the effectiveness of communication in the businesses. According to Spaho (2012), the organisational communication aspects are the communication patterns, communication structure, communication medium (methods). In addition, according to Pace (2014), communication climate is another aspect of communication. Communication patterns refer to the flow of information in the organisation. It deals with how information flows in the organisation for smooth and better functioning of the business. In any organisation, information flows through formal and informal communication patterns. Thus, employees share information with each other through formal and informal patterns of communication. The formal pattern of communication follows the hierarchical management structure of the organisation or the chain of commands whereas the informal pattern of communication follows the grapevine” (Rogers, 2013). Informal communication is based on friendship, relationship, proximity and shared interests between coworkers. Therefore, communication patterns deal with the formal and informal communication among employees within the organization in order to get work done and thus it has its own effect on employee’s performance in the micro and small businesses (Rogers, 2013).

Also, product and service businesses, communication flows through certain communication structures (directions). According to Kovacic and Luzar (2011) structure is one of the features of the communication network characteristics because each communication network has its own structure representing patterned communication flows in an organisation. Therefore, according to Atambo and Momanyi (2016), the three important communication structures are the downward, upward, and horizontal (lateral) communication. Additionally, diagonal communication is another communication structure in an organisation (Wilson 1992). It takes place between employees that are in different organisational levels and are not in direct relationship in the organisational structure (Spaho, 2012). These vertical (downward and upward), horizontal, and diagonal communication structures interconnect employees in the micro and small businesses and affect employee performance (Kovacic & Luzar, 2011). Therefore, it is relevant to consider communication structures in this study.

Another important aspect of communication is the communication medium. According to Johns (as cited in Owusu-Boateng & Jeduah, 2014), organisational communication involves a medium in order to transfer information from the sender to the receiver. This medium could be through a telephone call, a paper; as in a letter or a memo and any other desired means such as face-to-face, email, intranet, etc. This indicates that communication medium plays a role in communication because it supports effective communication to occur in an organisation. Welch (as cited in Men & Hung-Baesecke, 2015) noted that effective communication depends on suitable messages delivered in forms that are acceptable and functional to employees. The medium must be fit and with a capacity to transmit the message appropriately from the sender to receiver. This indicates that employees are required to choose the right communication medium in order to make any message understood and heard.

In addition to the above aspects, communication climate has its own role for effective communication and employee performance. Communication climate refers to the environment in which communication occurs. According to Pace (as cited in Nordin et al., 2014), “communication climate conceptually consists of employees’ perceptions of the information flow and the climate in which the communication occurs.” Communication climate can be seen either in open or closed climate. In an open climate, information flows freely but it is blocked in a closed communication climate (Nordin, 2014). As Rosenberg and Rosestein (as cited in Nordin et al., 2014) stated that “open communication enhances productivity as well as profitability towards an organization whereas closed communication can weaken productivity.” This is because an open communication climate enables employees to exchange or share pertinent information in order to execute their tasks, which is not possible in a closed communication climate.

According to Nwata, Umoh and Amah (2016), an integrated communication is needed for sustainable employee performance to be achieved because the inadequacy in organisational communication leads to poor employee performance. In the current economy and business competition, effective communication is becoming more important now than ever before in order to increase employees performance in micro and small businesses (Nwata et al., 2016). Roberts and O’Reilly (as cited in Jain, 2016) also notified that if communication is good in an organisation, an organisation’s performance, which is a sum of employees performance, will also be good. Therefore, an integrated communication that constitutes of the communication patterns, communication structure, communication medium, and communication climate can have an influence on employee performance in micro and small businesses.

In relation to employee’s performance, according to Balyan (as cited in Nwata et al., 2016), organisations are set up to accomplish specific goals. For these goals to be accomplished, the performance of employees in executing tasks becomes very crucial. However, employee performance must be subject to performance measurement. According to the Research Team, Development of Accountability System for Performance Government (as cited in Hikmah, 2015), “performance is the degree of effectiveness and efficiency” and hence, employee’s performance is measured using work effectiveness and efficiency in producing the intended products. In the small and medium business sector, work effectiveness and efficiency are further characterized with the quality and quantity of work achieved by an employee in accordance with the task given to the employee respectively (Hikmah, 2015). However, as Olamigoke (as cited in Nwata, et al., 2016) described that employee’s performance couldn’t be enhanced without communication with one another because communication permits employees in an organisation to give and receive information. Therefore, it is relevant to consider employee performance as dependent variable to communication as the independent variable in this study.  Therefore, since employee performance cannot be enhanced without effective communication in these businesses (Nwata, et al., 2016), it is important to examine the influence of communication on employee performance in selected businesses in Buea.

1.2 Statement of the Problem

According to Balyan (as cited in Nwata et al., 2016), organizations are set up to accomplish specific goals. For these goals to be accomplished, the performance of employees in executing tasks becomes very crucial. However, business organisations all over the world are facing challenges (Femi, 2014; Rajhans, 2012). The challenge is on how to increase productivity in terms of producing the required quantity and quality of products that are competitive in the global market (Kovacic & Luzar, 2011). This means that in order to stay profitable in the highly challenging and competitive global market economy, business organisations need to ensure that employees are performing as intended (Femi, 2014; Rajhans, 2012). In order to achieve high level of employee performance, organisational communication among other factors can play an important role (Femi, 2014; Rajhans, 2012).

In today’s organisations, communication has become far more complex, varied and become an important factor for overall organisational functioning and success (Mutuku, 2014). The way employees communicate is reflected in performance of the employees (Rajhans, 2012). In today’s globalization and technological advancement, effective communication is a pre-requisite for organisational stability and success (Bhata & Balani, 2015). Therefore, in this global economy and business competition, effective communication is becoming more important now than ever before in an organization in order to increase employees performance (Nwata et al., 2016). According to Olamigoke (as cited in Nwata, et al., 2016), employee performance cannot be enhanced without effective communication or interactions with one another. As a result, there are businesses that improved employee performance through effective organisational communication. For instance, Vanaz Engineers Ltd. based at Pune, India implemented various effective organisational communication practices that contributed to increase employee performance through employee motivation (Rajhans, 2012). Similarly, if there is inadequate or ineffective communication, there will be poor employee performance (Nwata, et al., 2016). Therefore, effective communication has a role in improving employee performance in the micro and small business sector. 

According to Nyende and Mugisha (2017), the contribution of the micro and small businesses in less developing nations like Cameroon to the GDP has been going down and this affects the economy. The contribution of the business sectors in these nations to the overall GDP constitutes 5.9%, which is low and cannot sustain the economy. This means that the performance of these businesses is low. Therefore, because the performance of the businesses is the summation of the individual employee performance, the performance of employees of the businesses in Cameroon is low and must be improved.

According to Abugre (2011), communication is very essential in all dimensions of the organisation’s performance. Thus, when communication in the businesses is effective, then the performance of employees will increase. Consequently, the businesses can play their role in stabilizing the economy.

However, weak communication in the organisation will lead to loss of confidence and ineffective operation. Organisations that are deficient in their communication do not achieve the same performance as those that communicate well. Researchers such as Bakar, Walters and Halim (2014) had expressed the importance of communication in organisations. Yet, they found that the importance of communication among employees has often being neglected in the organisation.  The lack of communication in organisations has resulted into poor relationship amongst workers, lack of trust, and increase in the rate of conflict, poor Coordination of activities, which in tum affected the performance of employees in businesses. Similarly, organisations in Buea have been faced with an array of problems that seem to be an impediment to the growth of any organization such as, mismanagement of funds and resources, poor leadership skills, low level of real income, and poor infrastructural facilities to mention but a few. It is due to this context that the researcher decided to conduct a research on the effects of communication on employee performance, using selected businesses in Buea by giving answers to the following research questions:

1.3 Research Questions

The main research question for this study is; “How does communication affects employees’ performance of selected businesses in Buea municipality”?

Specific Research Questions

The specific research questions include;

1. What is the effect/influence of upward communication on employee performance in selected businesses in Buea municipality?
2. What is the effect/influence of downward communication on employee performance in selected businesses in Buea municipality?

• What is the effect/influence of horizontal communication on employee performance in selected businesses in Buea municipality?

1.4 Objectives of the Study

To provide answers to the research questions, we are guided by the research objectives.

Main Objective

The main objective for this study is to examine the effect/influence of communication on employees’ performance in selected businesses in Buea municipality.

Specific Objectives

The specific objectives include;

1. To evaluate the influence of upward communication on employee performance in selected businesses in Buea municipality.
2. To assess the influence of downward communication on employee performance in selected businesses in Buea municipality.

• To examine the influence of horizontal communication on employee performance in selected businesses in Buea municipality.

1.5 Hypotheses of the Study

The research hypotheses of this study are:

1. H₀₁: Upward communication has no significant influence on employee performance in selected businesses in Buea municipality
2. H₀₂: Downward communication has no significant influence on employee performance in selected businesses in Buea municipality
3. H₀₃: Horizontal communication has no significant influence on employee performance in selected businesses in Buea municipality