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On the other hand, the term organisational communication refers to the process of sharing every detail of the organisations with the employees, individual ...
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I would like to express my special gratitude and heartfelt thanks to my supervisor, Puan Sri Yanti Binti Mohd Salmongel for continuous guidance and support throughout the project. The research has helped me to improve my analytical skills as well as knowledgebase regarding impact of external and internal communication on employee loyalty and knowledge in QI Malaysia. I am grateful to my friends and family members for their constant support without which it would be difficult to complete this study. Finally, I would like to thank the professionals who have participated in the survey and offered valuable information related to the study topic. The support of all these people has inspired me throughout the process of research while improving my knowledge base.
DELCARATION ii ABSTRACT iii ACKNOWLEDGEMENTS vi TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER 1 INTRODUCTION 1.1 Background of Study 1 1.2 Problem Statement 3 1.3 Research Questions 5 1.4 Study Objectives 5 1.5 Hypothesis 6 1.6 Study Contribution 6 1.7 Limitation of Study 7 CHAPTER 2 LITERATURE REVIEW 2.1 Review of Literature 9 2.2 Concepts and Theory 9 2.3 Theories and Model 13
In this research, the study intends to evaluate to importance of internal and external communication to the employee of QI Malaysia in order to increase their knowledge about the company, as well as their loyalty towards the organisation. The main problem identified is that employees often do not stay long in employment in QI Malaysia and at least one resignation is recorded. This reflects that there is a lack of knowledge on the company which is deem to be pull factors to remain in employment, hence there is lack of loyalty, The study objective of this research is to identify the main factors that influence employee’s knowledge and loyalty, the key internal communication and external communication methods used, identifying the impact of both the communications to employees and analysing how these communications can affect employee’s knowledge and loyalty, The study contribution is towards QI Malaysia understanding the drivers of increasing employee knowledge and loyalty to reduce turnover rate. The main limitation is time constrain and also the pandemic whereby our movement in office is limited to further push all targeted respondents to fully answer the survey and hand it over. 1.1 Background of the study Communication is an important tool in exchanging different information or messages with each other in a group. On the other hand, the term organisational communication refers to the process of sharing every detail of the organisations with the employees, individual groups for enhancing employee engagement in action. Both internal and external communication is essential in order to maintain the employee's engagement and loyalty within the organisation. This research topic has shed its light on the employees of QI in Malaysia for understanding the impact of both internal as well as external communication in the case of employee engagement and also in enhancing the knowledge field. In this regard, it is necessary to highlight the main drivers that affect the employee's knowledge and loyalty towards the company and also the key
Figure 1.1: Internal and external communication skill (Source: Zainol et al. 2016) 1.2 Problem Statement This research has mainly evaluated the impact of communication skill (both internal and external) in order to enhance the employee's engagement, loyalty, and performance level within the organisation. Both the internal and external communication process is considered as a major source of enhancement platform. In this context, it has been observed that utilisation of new media specifically internet has been able to influence positively within the area of marketing communication. This is the main theme behind organisational striving to communicate in a better way by communicational channels. It cannot be ignored that an organisation that focuses on recognising its employees and the major stakeholders are much more effective in nature. This area is considered as new phenomena as this continues in gathering implementation of different communication
strategies. As mentioned by Meng et al. (2017), it has been profusely identified by several consulting firms that effective communication is a catalyst to develop shareholder value, reduce employee turnover as well as outperforming competition. In this respect, an organisation that makes good internal communication with employees have been able to increase and higher its employee engagement level. From the last few decades, several changes have been made around organisational communication and this has experienced rapid organisational shift. In the words of Zainol et al. ( 2016), major improvement has been made by changing “near-sighted vision” and coupled with modifications in workplace planning. Even, prior to the introduction regarding employee engagement, it has focused on the measurement of satisfaction level of employees, on the aspects how an employee’s feels about its organisation, their team members. As mentioned by, Veleva et al. (2017), it is significant to focus on bringing out change in employee’s requirements or demands rather than a pay check because now a day’s employees look for other additional qualities such as self-esteem, appreciation that helps to grow each day in that organisation. Hence, internal communication is highly associated with satisfaction level of job and as a result this impacts on organisational operations and customer management in a better way. As per the view of Zainol et al. (2016), while the internal communication is focussed in a communication channel established between employees within the organizational boundary, the external communication refers to the communication outside the organizational boundary. Effective managers in an organization use different communication platforms such as emails, social media, feedback, conferences, and meetings to collect market intelligence and use them to bolster the organization. As argued by Veshne (2017), with the help of these platforms, the
❏ To analyse how effective communication helps in motivating the employees and provide the chance for getting to know the company better 1.5 Hypotheses The discussion made in the above part has provided detailed knowledge about the research topic and thus a clear set of hypotheses has been prepared which helped in the smooth progression of the research work. H0: Both internal and external communication affects the employee’s knowledge or engagement level in the organisation. H1: There is a positive relationship between internal and external communication level with the employee's engagement level and loyalty towards the company. H2: Effective communication level helps to boost up the organization's performance by reducing employee’s turnover rate and enhancing employee’s engagement level H3: Effective communicability helps to motivate the employees and provides the chance to know the company in detail.
1. 6 Study contribution This research topic has a great contribution to society and also for the betterment of the organisation. As mentioned by Yue et al. (2019), employee engagement is an essential itching within the organization because it controls the employee's performance level and thus helps in enhancing the organisation's productivity level. As per the view of Antony (2018), the employee's engagement level is beyond employee satisfaction and therefore, it is very essential for all the organisations to understand the basis of employee engagement and the impact of communication skill in this management level.
However, this study has mainly shed its light on the QI group in Malaysia where the turnover rate of employees is quite high. Therefore, it can be stated that in this era of information and technology, communication (both internal and external) plays a vital role in upgrading the business value of an organization. In this study, how the business leaders and managers in QI Malaysia use and implement the communicating tools and techniques is forecasted. The study has focused to find out whether the raisin if this high turnover rate is due to the fewer employees engagement or lack of communication. According to Akhmetshin et al. (2019), this utilisation of the QI company group in Malaysia would help to understand the condition of other more organisations and thus would provide a wide opportunity to improve the position of the organisation easily. The study has focused on internal communication that includes trust, organisational goals, transparency level, accuracy, credibility, relevancy and many other things that play important significance in enhancing employees knowledge as well as loyalty level. Hence, the study has broadly discussed the key parameters of both internal-external communication skills that play a major role in receiving more employee’s motivation that would help in improving the employee's current condition effectively. Moreover, the research study has helped to understand the current condition of employees and the reason for effective communication skill within the organisation. Along with this, it has helped to understand the reason behind the high turnover rate of employees and has provided the scope to minimise the employee's dissatisfaction level by enhancing their integration level in every action of the organization.
1. 7 Limitation of the study Many types of research have been conducted that have shed light on job satisfaction level or organization performance level but very few researches have focused on employee’s
2.1 Introduction In this current era of globalisation and technological development, every individual organisation is running behind the success and thus a trustworthy relationship, values and goals are lacking from the relationship of employees and organization. There is a huge gap between what the employees want and what they are receiving. Employee engagement is far beyond the performance level, rather than this, the employees not only bound themselves within the pay check relation with the organisation but look beyond this towards a long term relationship. Therefore, this chapter of this research work has shed its light on different parameters of employee engagement such as communication, employee loyalty and knowledge level and has linked the knowledge with the existing literature. The aim of this chapter is to highlight the impact of communication in case of an organisation's performance level and also a long term service relationship with the employees. 2.2 Concepts and Theory 2.2.1 Concept of employee communication The term employee communication mainly refers to the sharing of information as well as different ideas within the individuals and with also the higher authorities and vice versa. As mentioned by Ali Alheeti and McDonald-Maier (2018), an organisation can be compared with a large conglomerate structure where the building material plays the most important role in maintaining the link with every part of the structure. In this case, communication represents that important linking tool that helps in sharing each and everyone's views with others and also to establish a proper work culture environment in practice.
Figure 2.2.1: Benefits of employee communication (Source: Meijer and Torenvlied, 2016) According to Meijer and Torenvlied (2016), employee communication is very important for the company as it allows the company to act more effectively and thus enhances the level of productivity. As argued by Cardwell et al. (2017), employees can enhance their level of knowledge as well as morale by sharing the views in both up and down direction of the organisation's communication change. This helps in easy circulation of an idea within the entire organization and thus helps in incorporation of innovating ideas and creative thoughts in action. As per the view of Rogala (2016), effective communication helps in persuading the knowledge field of the employees and also helps in expertise the skills in the workplace. However, in this case, an equal effort is required from both the sides of managers and employees in order to improve the communication skill within the workplace and to minimise the gap. According to Chen et al. (2018), active listening, positive body language, willingness to put queries, open- minded attitude is some of the major benefits that can be acquired through effective communication skills.
which provides the chance to take part in every action of the organisation equally and by diminishing the power of any employees. 2.2.3 Concept of employee knowledge The term employee knowledge mainly refers to the gathering of information and also sharing the gathered information effectively. As a power, the view of Iddagoda and Opatha (2017), employee's knowledge plays an important role within the organisation especially by improving the productivity level. As per the view of Veleva et al. (2017), employee's knowledge helps in finding out the best possible way to complete any task in simpler but unique methods. Thus it improves the productivity level and enhances the performance level of the entire organization. Figure 2.2.3: Employee knowledge (Source: Potoski and Callery, 2018) It has been mentioned by Potoski and Callery (2018), employees feel more appreciated when they are provided equal values and opportunities and thus they become experts in the performance level. Therefore, communication helps in enhancing this knowledge field and boost up the employee's knowledge as well as create a better work culture environment. As per view by Osborne and Hammoud (2017), this employee knowledge helps in identifying the sense of belonging which makes them more responsible and thus helps in increasing better performance level.
2.3 Theories and Models 2.3.1 Cognitive Dissonance Theory ‘Cognitive dissonance theory’ mainly depicts the situation when a person possesses two contradictory thoughts which create conflict in action (Adnjani and Prianti, 2020), Figure 2.3.1: Cognitive dissonance theory (Source: Ruck et al. 2017) As per view by Ruck et al. (2017), in psychology, there are some points when a great conflict arises in between action and belief and thus it results in the conflict. However, this theory states that only effective communication can eradicate this confusion and can also establish a change in behaviour, change in action as well as change in perception. For example, providing motivation to employees can be helpful to increase their communication behaviour. In this respect, fulfilling employees’ desire is able to assist them to explore their full potential and self-competency. As per opinion of D'Souza and Gurin (2017), this aspect is highly useful towards understanding their requirements so that it can aids in serving as powerful motivator of perception of employees. In words of Li, Chen and Hui (2019), this can also be observed within an organization that some employees might have a conflict in between their thoughts and action and this would automatically put a negative impact over their performance level.
