A study by consulting firm Watson Wyatt found that companies with the highest levels of effective communication between employees experienced a 26 percent total return to shareholders from 1998 to 2000, compared to a -15 percent return for firms that communicated least effectively.

Internal communications and the Changing Environment

Today’s employee is a different person in terms of values and needs than his or her counterpart in earlier decades. The workplace of today is also different – tighter staffing, longer hours, greater workloads and more emphasis on performance are the norm. Today’s employees increasingly are demanding participation in the conversations that are driving organizational change. Managers need to recognize that, if they provide information to employees and also listen to them, those employees will be excited about their work, connected to the company’s vision.
Organizing the Internal Communication Effort
Communication audit is the best way to assess the effectiveness of a company’s internal communication efforts. Both Starbucks Coffee Co. and Kinko’s Inc. hired outside consultants to conduct internal communication audits to identify strengths and weaknesses in those companies’ existing communication practices.
Effective Internal Communications
Effective internal communication should reinforce employees’ beliefs that they are important assets to the firm. This can happen only if management believes that it is true, and if the communication effort is handled by professionals.
Where Should Internal Communications Report?
In the past internal communications reported to the human resources area. But recent surveys show that over 80 percent of corporations in the U.S place the responsibility for internal communications in the corporate communication area. Ideally, both the corporate communication and the human resources departments in large companies have someone in charge of internal communications.
Implementing an Effective Internal Communication Program
The ideal method of communicating with employees in a small organization is one-on-one meetings with small groups of employees. Even in larger organizations, however, this intimacy in the internal communication effort is a good start for building a more formal program.
Key steps in implementing an effective internal communication program:-
Communicate Up and Down
Make Time for Face-to-Face Meetings, Communicate Online.
Create Employee-Oriented Publications, Communicate Visually.
Focus on Internal Branding, Consider the Company Grapevine.
EXAMPLE:-A best example of internal communication could be a Tannoy. A Tannoy is a way of broadcasting a short message to all the workers at once in for example, a large factory or warehouse. It might be used to warn people that the fire alarm is being tested. A Tannoy is often used in large shops to request a member of staff to go to a certain part of the store. This is quicker than finding the worker in person. Sometimes, it can also be used to make customer announcements, which means that it falls into external communication as well as internal communication.
EXPERINCE:When I was working with a company in India, I faced regular internal communication with upper level managers. We had regular meetings with all the managers and other employees. Managers usually asked our opinions for new projects and in important decisions. They also mentioned the strategies that we should apply at the time of problems and crisis situations.
REFERENCE:
http://www.starbucks.com/.
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