internal communication in the small and medium … · stand internal communication as an everyday...

Ekonomika a management

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Starting Concept of the CompanyCommunicationEvery company needs sufficient informationfrom its surroundings to survive in a highlycompetitive market. Information from micro andmacro surroundings helps fulfil the company’stargets. According to the market information thecompany analyses the market opportunitiesand threats and considers all the possibilities todeterminate the company’s strategy. On theother hand, the information from the companyto the market ensures the success of thecompany’s products or services on the market.The external information stream between thecompany and its broad surroundings where thiscompany offers its own products or services isa basic condition of effective working. Theinternal information and its implementation arenecessary for the company and marketsuccess as well. The communication processinside the company is as important as externalinformation and sometimes, in special situations,could be even more important. It is necessaryto realise that the main task of internalcommunication is satisfying the informationneeds of all people in the company. First theyneed basic information for managing their job

duties. Information regarding the company’stargets and strategies helps to foster theemployees’ trust and loyalty.

Communication is a base of cooperation inthe company and also in personal life of eachperson. Communication is not easy to define; it isa term of wide understanding. Table 1 considershow each way of thinking about communicationmight be put into play in the organizationalcontext. There is a great deal of communicationissues that show diversity and complexity ofcommunication in an organization [16].

The company’s communication is involvedin all management activities, and it is the mainelement which connects and coordinates allactivities in the company through managingpeople. In this context we can understand thecommunication process as a process of giving,exchanging and receiving information, whichmust be based on understanding andfeedback. Mostly, we can see the meaning ofcommunication in these activities:� transfer (giving) of news, information and

decisions;� clarifying situations and states of current

affairs of the company;� persuasion and influence.

INTERNAL COMMUNICATION IN THE SMALLAND MEDIUM SIZED ENTERPRISESJana Holá

Approaches the Concept of Communication source; adapted from Craig R.T.Tab 1:

(part 1)

Communication Theorized as: Possible Use in the Organizational Context:

Rhetorical The practical art of discourse Considering the communication strategies of organizational leaders during times of crisis

Semiotic Intersubjective mediation by signs Studying the ways that organizations create and sustain identity through corporate symbols

Phenomenological Experience of otherness; dialogue Using dialogue to mediate conflict between two employees

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But the broader understanding of commu-nication can also include work with informationsummarized in these activities:� monitoring – searching for and under-

standing a content, collecting, recordingand saving of information;

� interpretation – providing the informationwith its intended purpose;

� distribution – providing the informationeffectively according to its value;

� sharing – understanding the meaning ofinformation by all members of the team;

� realisation – practical implementation anduse the information for setting of theprocesses and standards in the company.[2]

The managers are also responsible forprevention of miscommunication spreading.[14] They should prevent the creation ofinformation noise and vacuum, which lowersthe effectiveness of control and function of thecompany in general. The results ofmiscommunication have far reaching effects onthe team and each member’s activities andbehaviour, for example:� decrease of motivation;� indecision – decrease of decision ability;� passivity;� frustration.

These deficiencies could result in:� high rate of employee turnover (fluctuation);� ineffective coordination of all activities of

the company;� failing to reach the company’s target;� ineffective target and strategy;� ineffectiveness in marketing;� inability to compete.

All these results of miscommunication showthe necessity and importance of the correctsetting of information channels and the settingof the company’s standard communicationprocesses. The company’s communicationschannels are based on using information andcommunication technologies (ICT) utilities andsystems and also on the company’s strategy.

For setting the correct function of internalcommunication, it is very important to under-stand internal communication as an everydaypriority of the manager’s activity. Communicationis essential if employees are to work effectively.Such communication is a base for every activityand especially for controlling people bymanagers. To understand communicationmeans to realize that communication is focusedon the recipient who receives some information;therefore the communication process mustinvolve enough space for feedback. It is veryimportant to understand the communication as

Approaches the Concept of Communication source; adapted from Craig R.T.Tab 1:

(part 2)

Communication Theorized as: Possible Use in the Organizational Context:

Cybernetic Information processing Finding optimal ways to set up communication network system for employees who telecommute

Sociopsychological Expression, interaction Using knowledge about personality and influence and intersection style to improve

conflict management programs

Sociocultural (Re)production of social order Looking at intersection of organizational, national, and ethnic cultures in multinational organizations

Critical Discursive reflection Confronting the issues of sexual harassment in the workplace through programs designed to shift beliefs about gender and power

Source: [12]

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an instrument of corporate culture, companyprocesses and information, and communicationtechnologies. The company’s communication isdesigned by synergy of the owners’ vision,personal and marketing management, managers’communication competences, and personalcommunication of each member of the company.

The wide scope in defining communicationshows the notion that communication isa process that is continuous and complex andcannot be arbitrarily isolated. Communicationunfolds over time. This corresponds to the ideapopularized by David Berlo over 40 years ago:“If we concept of process, we view events andrelationships as dynamic, on-going, ever-changing, continuous. When we label somethingas a process we also mean that it does nota beginning, an end, and a fixed sequence ofevents. It is not static, at rest. It is moving. Theingredients within a process interact; eachaffects all others” [11]. Lewis defined the process of communication this way:“Communication is a process by which a personreduces the uncertainty about some state ofaffairs by the detection of cues which seems tohim to be relevant to that state of affairs.”These ideas are discussed in Miller [11].A completely different approach is technologyconcept of communication that focuses on theuse technologies and processes associatedwith data processing and deals with theoptimization. Process modeling and dataquality improvement describes e.g. ·imonová[15]. Although the technology is very importantit is just the tool.

1. Internal Communication ContentAccording to various research papers ofmanagers’ views, the 60 % of problems in theorganization are caused by incorrect communi-cation. Yates [18] summarizes the results ofrecent research Watson Wyatt. Watson Wyatt’slatest research has found convincing evidencethat the companies with highly effective internalcommunication practices produce superiorfinancial results and enjoy greater organiza-tional stability [18]. The comprehensive contentof internal communication is realised withinleadership. The main challenge of leadership isto achieve mutual benefit for the company andits employees. The filling of mutual expectation(company’s employees’ results requirementsand on the other side the employees’

requirements) is a very important premisewhich leads to overall company prosperity [1].When employees work results or their workbehaviour and attitudes are not in accordancewith the company’s aims, the management canfind reasons in three problem areas:1. they do not know what course of action to

take due to the lack of information;2. they cannot achieve the company’s goals

because of their lack of skills or becausethe workplace conditions are inadequate;

3. they do not deliver because they are notmotivated enough to achieve the worktarget.

Only open and effective communication leadsto prevention and detection of the sources ofthese issues, to problem definition and itssubsequent solution. The base of preventionand first category issues solution is providinginformation for daily management. Examples ofsuitable communication tools are internalworkshops, clarifying and setting of tasks,making regular appraisals of work performanceand sufficient, up-to-date and relevant informationnecessary for employees work performance.The personnel management can prevent thesecond category problems. The job descriptionincluding work requirements creates a goodframework for an effective recruitment process [9].

The most demanding solution is requiredfor problems of the third category – “employeesdo not want to …”. This issue involves theoverall company culture (including internalcommunication), teambuilding, partnershipsbetween the company and its employees, anemployee motivation program, formal andinformal relations, managerial styles andcommunication abilities and skills. Of the abovetext the main objectives of internal commu-nication can be summarized:1. information and motivation connection;2. mutual understanding and cooperation;3. forming desired working positions

(of performance and behaviour);4. effective feedback for continuous

evaluation.

After defining the main objectives thecontent (tasks) of internal communication canbe determined:� providing information for employees’ needs

(information necessary for job duties);

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� internal marketing, e.g. public relations(communication necessary for employees’work behaviour and attitudes);

� consolidation of employees’ stability andloyalty (communication necessary forcompany activities coordination, processing,standards, building of company culture);

� set up of feedback.

Internal communication penetrates the wholeorganization. The process of internal commu-nication involves personal management,internal marketing, managerial communicationabilities and skills and finally companyinformation and communication infrastructure.Only the synergy of all of the above-mentionedactivities can guarantee effective internalcommunication as the base of companymanagement.

2. Selected Results of InternalCompany Research in ReferenceFile

In the years 2005–2006, an initial investigativecommunication research was carried out inapproximately 800 Czech small and middlesized enterprises the author’s thesis was basedon this research. The research was supportedby internal project development programactivities of the University of Pardubice 2005.During the years 2007–2009, the following partof internal communication research was carriedout in 50 enterprises and three case studieswere done (analysis and new set up of internalcommunication) by the author with cooperationof the commercial sector.

Both parts of research were focused onviews of the board of managers. The casestudies included also view of employees. Theagreed upon statements were selected. Thequestionnaire was designed by methodology ofsocial survey [4]. The second part of theresearch was based on findings from the firstpart of the survey. The questionnaires weresimilar only simplified and focused on selectedissues. The difference between the results ofthe first and second research was notstatistically significant and therefore all resultswere processed together. In summary, 850companies participated in the survey butcomplete results were only of 453 companies.722 employees – responders participated in thesurvey designed for the employees within the

case studies. Companies that participated werechosen regardless of the size and businessfield of the company. Their common featureswere: minimum of 5 employees, company’sconnection to the Internet and its use and thewillingness to cooperate in the survey.Contacting of the companies was conducted byusing practices and professional activities ofthe author.

Case studies were conducted in 3 differenttypes of organizations: a small firm of 23employees dealing with beverage machines,a firm of 120 employees operating 6 e-shops,and a state-owned hospital with 600 employees.The main objective of the each case study wasset to a higher level of efficiency of internalcommunication. The initial qualitative surveywith management was conducted to showa statue of internal communication and mainissues in the organization. Quantitative resultsof all employees’ research and statisticaltesting of hypotheses verified the originalassumptions.

2.1 Research MethodsThe obtained material served as the data of themanagers’ views and the company's solution ofthe internal communication process. Thequestionnaire was based on choosing answerswhich were set according to personaltheoretical knowledge and practical experience[17]. Open source product phpESP (EasySurvey Package, http://www.butterfat.net/wiki/Projects/phpESP) was modified for purpose ofthe research and the questionnaire wasaccessible via the internet to provide anonymityand to increase the respondents’ comfort. Theresults of the research were handled bycommon statistical methods of nominalcategories [4].

The field research was focused on provingthe assumptions of several following areas:� The meaning of internal company

communication is not really sufficientlycomprehended in managerial practice.

� The internal communication process is notconsidered and solved systematically insmall companies of up to 25 employees. Anactive management organization in the internalcommunication process is connected withan increase in the number of employees.

� In most cases the meaning of internal com-munication is dispraised by management.

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The managers do not comprehend thesystem complexity of the internal commu-nication process. The companies prefer theexternal partners and do not appreciate theinternal partners – employees. Themanagers often focus on the technicalsolution of communication and the informationand communication infrastructure.

� Influence of internal communication onwork performance and behaviour ofemployees.

2.2 Testing Hypothesis Table 2 contains some hypothesis, testingresults and, if accepted, alternative hypotheses.

Tab 2: Defining a Research Hypothesis to Tested

Null hypothesis H0 Accepted/ Acceptance of the alternative testing at 5% level of significance rejected hypothesis HA

1. Company size has not an impact rejected Company size has an impact on internal communication system on internal communication system solution solution.

2. Companies use the Internet for rejected Companies use the Internet more external and internal communication than external than internal as well. communication.

3. Company size does not affect the use acceptedof the intranet portal.

4. Managers often do not concentrate rejected Managers most often concentrate on technical solutions to internal on technical solutions to internal communications. communications.

5. Companies are investing in internal rejected Companies are investing the most communications in different ways internal communication through equally. capital assets of ICT.

6. Internal communication has no impact rejected Internal communication has an impacton job performance and work on job performance and work behaviour of employees. behaviour of employees.

7. Internal communication does not rejected Internal communication affects affect cooperation in business. cooperation in business

8. Internal communication does not rejected Internal communication affects affect mutual trust. cooperation in business.

9. Managerial communication does rejected Managerial communication affects not affect relationships in the work team. relationships in the work team.

10. Managerial communication does rejected Managerial communication affects not affect team collaboration. team collaboration.

11. Managerial communication does rejected Managerial communication affects not affect employee’s feeling of a job employee’s feeling of a job well done.well done.

Source: own research

To test the hypothesis, a Chi-square testwas selected because categorical variables andChi-square test is used for testing associationin contingency table of nominal category. Testverifies that the difference of the observed andexpected frequency is random (have the samefrequency distribution; independent variables)

or statistically significant (dependent variables)[4]. Test criterion is the formula:

(1)

Value Γ = n.π0,j gives the theoretical(expected) frequency of j-th class in the sample

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size n, and nj is the observed frequency. Valueis compared with critical value χ2 α′ (r-1). (s-1).The α′ indicates the level of significance andexpression (r-1).(s-1) degrees of freedom. Levelof significance is the traditionally determinedvalue of 0.05. For objective assessment of theresults, a statistical analysis was used to testthe equality of parameters of alternative distri-bution. For each group the relative frequency ofrepresentation in the group of commoncharacters was calculated, and it was determinedwhether the relative frequencies were equallyrepresented in all groups.

Null hypothesis (see Table 2) providesa uniform representation of the relative frequencyin all groups of alternative distribution, namelythat the variables are independent (equalrepresentation means that there is no depen-dence). For the calculation and testing ofhypotheses this formula was used:

(2)

pi is the relative frequency (probability) and theaverage probability calculated by the formula

(3)

Calculated quantity is compared with thecritical value χ2≥χ20,05(I-1), I-1 is degrees offreedom. The level of significance α′ = 0.05.Verification of statistical hypothesis that twopopulation relative frequencies are the same,testing whether the difference between 2selected frequencies can be consideredstatistically significant, was also carried outtesting frequency differences. As a criterion oftesting was used the characteristics:

(4)

Value of criterion is compared with criticalvalue, which is a quantile χ2

1-0,05 =3,84.Forresults verification used the testing criterion:

(5)

The calculated value is compared with quantilesof normal distribution. Hypothesis of equalitybetween a pair of frequencies is rejected while

the criterion of testing exceeds the critical value1-α / 2. The level of significance α′ = 0,05. [13]

2.3 The Most Important ResultsOn the base of accepted and rejectedhypothesis summarized results are:� Management mostly underestimates the

meaning of internal communication. � The managers do not want to accept the

responsibility for understanding. � The process of internal communication

develops according to company growth. � The managers prefer external commu-

nication. � The management prefers technical solutions.

80 % employees agree with the statementthat the internal communication significantlyaffects their job performance and behaviour.The association between the level of internalcommunication and employee’s loyalty isstatistically significant. Employees often citedthe cause of a failed communication asunwillingness and lack of time. An inadequateexplanation and lack of space for discussionare the most frequently reported weaknessesof internal communication. From employee’sperspective, managers often make thesecommunication errors.� Managers do not communicate openly with

employees (60 %).� Managers do not motivated employees, do

not assess adequately employees’ contri-bution and do not share company’s goalsand direction (72 %).

� Managers ignore the critical voices (65 %).� Managers create atmosphere of fear in

which employees are afraid to commu-nicate openly (52 %).

Figure 1 shows the overview of using com-munication system solution in individual groupsaccording to the number of employees. The figure describes an increasing number ofemployees’ urgent need of a communicationsystem solution. Unfortunately, when the condi-tions of a small organization make it easier toset a system solution, the management doesdo that and decides to implement systemsolution after the communication problemsoccur.

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The intranet could be a very suitable tool forcompany internal communication. The range ofintranet usage is wide. The intranet can be onlya notice board for information but it can also bea full-value communication portal, which makesthe internal communication process moreeffective. Figure 2 shows how intranet is usedin companies that currently use the Internet.This figure confirms the fact that companies aremore interested in external communication. It

also confirms the companies’ poor attitudetowards internal communication.

The figure 3 illustrates how the companiesinvest in internal communication and – whatpossibilities (investments) they use. All com-panies use ICT more frequently than any otherpossibilities. The reason is easier setting of ICTthan improving managerial communication orcreating “company communication strategy”.

Fig. 1: Percentage of Using Communication System Solution in Individual Groups According to Number of Employees


Fig. 2: Percentage of Using Intranet Solution in Individual Groups According to Number of Employees


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All figures confirm that the managementoften underestimates the importance of internalcommunication. Mostly, the management is notfamiliar with the main content of internalcommunication and the most important com-munication tools. The managers acknowledgethat company internal communication needsimproving and they also consider the internalcommunication process very important for thecompany’s effectiveness. However, they alsoindicate a shortage of time as the main barrierof internal communication. The numbers in

Figure 4 show the barriers of internal commu-nication as defined by the managers. A shortageof time means that the internal communicationis not a priority area of management. This factagain confirms that the internal communicationis mostly underestimated [6].

Research shows that there is a deepmisunderstanding between managers andemployees but only the management canimprove internal communication. Managementhas to pay attention to employees’ concernsand to address them.

Fig. 3: Percentage of Improving Internal Communication Possibilities in Companies


Fig. 4: Percentage of the Most Frequent Internal Communication Barriers According Managers Views


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3. Internal Communication Set UpAn effective internal communication is essentialfor every company’s success. Is the base ofknowledge management which increases thecompetitive advantage in the hard marketenvironment. All managers who were includedin the investigative survey agreed with theimportance of internal communication. Theywould like to improve their company’s internalcommunication but lack the competency andleadership skills to do that. Leaders whounderstand their responsibility for effectivecommunication want to set up new internalcommunication. The experience of the casestudies shows that the new set up of internalcommunication is implementation based onrules and principles.1. It is necessary to clarify what effective

communication means in order to improveit. The measurement of effective communi-cation by management must be indentifiedand communication framework must bedeveloped.

2. This process must begin with the setting ofclearly stated and achievable objectives.The objectives can be the above-mentioned.

3. The research of internal communicationstatue must be carried out and the resultsmust be the base for improvement. Theresult must be published, including theproposals for improvement. The researchshould include a qualitative part (the mainissues are determined and the mainobjective is stated) and a quantitative part(statistically significant data for confirmationof issues and for comparison in the future).

4. Settings of necessary premises.5. Setting of processes and standards (“golden

opportunity”, daily business management,personal work, internal marketing).

6. Settings of communication channels andtools, ICT infrastructure.

7. Verification via feedback.8. Evaluation.

3.1 The Necessary Premises of Correct Communication

The effective internal communication proceedsin company’s environment that is designed byconcrete conditions. These conditions are thepremise of effective communication. Thecorporate culture based on ethics and moralevalues.

� Full management responsibility. Unifiedmanagement team must be engaged ina new set up.

� Defined work organization andorganizational structure.

� Personnel policy based on mutual respectbetween company and employee.

� Effective internal marketing, mainly internalPublic Relations.

� The communication abilities and skills(competencies) of the managers.

� Open communication, including feedback.

The company management must acceptthe responsibility for correct internal communi-cation process. The level of internal communi-cation can be improved by setting communi-cation standards, internal marketing and theuse of information and communicationtechnologies.

3.2 Golden Opportunity as Standards

"The golden opportunity" is the name forimportant and significant occasions duringwhich the communications clearly influence theworking staff. The golden opportunity isextremely important for internal communicationto be the greatest influence in forming the workperformance and attitudes of employees.These opportunities arise in each organization.It would be a mistake not to utilize thisopportunity as the consequences are detrimentalto the company’s future. These opportunitiesare:� time period for adaptation and orientation in

the company;� performance management, assessment

and development of career; � internal workshops to increase knowledge

and skills (not only for competencies, butalso for the sharing of know-how and theadoption of changes in organization andbusiness processes).

3.3 Communication Strategy and Internal Public Relations

PR activities are part of marketing commu-nication aimed at major groups of external andinternal public, customers, suppliers, otherprofessional or general public, but also atemployees or other owners, identifying thewhole group as stakeholders [3]. The largest

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group of internal public is staff and the internalPR, which is a part of internal marketing andshould be targeted preferably. PR is based ona company communication strategy, whichincludes the entire communications companywith all partners.

Communication strategy is based on companystrategy and is a mean for its fulfillment. Commu-nication strategies are understood as a summaryof the fundamental objectives and means ofachieving them [5]. Table 3 summarizes theexamples of basic communication strategies.

Tab. 3: The Examples of Communication Strategy Creation

Partner Target Means (via) Tools Measurability

Existing customers Loyalty, the turnover Customer satisfaction CRM systems, regular Regular purchase, and profit gross with products and meetings, product annual sales, gross

provided services training, regular visits profit, customers’ feedback

Potential Arouse interest in the Desired image and Means of marketing Number of new customers products and services reputation of companies, communication mix customers and their

products and services turnover

Employees Positive relation to the Satisfaction, a high Internal PR, Performing the tasks, company, forming the degree of self-motivation, management of work the achievement of the desired working positions belief in the prospect performance (e.g. regular objectives, specific (of performance and of the company and in evaluation), the fulfillment performance, turnover, behavior), reinforcing his own career in the of information needs satisfaction measurable loyalty to spread the company (internal workshops, shifts in time series reputation of the company, intranet, meetings), (anonymous surveys to meet the information communication and evaluation)needs of work, standards at thecoordination of work, beginning of the new teamwork workers, functioning

feedback

Associated Beneficial cooperation Serious and professional Providing information Cost of services and companies with the serious and approach to the about the company quality of services (the

necessary partners, partnership based on (website, printed ratio of price / building the company's moral principles, trust company profile) regular performance), payments reputation and and respect of partners, contact , extract and economic indicators desirability of permanent mutual satisfaction, in application and regular of trade relationstrade relations (suppliers, cooperation meetings, additional banks, freight forwarding PR activitiescompanies, agencies, offices, etc.)

Other public, Building a desirable Desirable image and Public Relations, Monitoring of views and media, competitors, image and reputation, reputation of company, behavior of company attitudes regarding publicpopulation the spread of reputation, products and services (management), spread image and reputation of

offer the potential of reputation by staff the companycooperation partners and employees


All activities that are commonly used forexternal PR communication can and should alsobe used inwards [7]. Only then they may beconsistent in coordination of all activities, such

as the sales campaign (as the event informationto customers and other external public must beinformed and the staff must know that action isnot only held but the commitment should know

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the meaning and benefit of the whole event forbusiness) and only re-thought out strategy cancreate the same, transparent image inside andoutside the company [8]. It is very important for

both customers and employees to perceive thecompany’s values. An example of the use of thesame activities for external and internal PR isshown in Table 4.

Tab. 4: The Examples of External and Internal PR Activities

External PR activities Internal PR activities

Press Conference Regular reporting on the position of firms in the market, Press Release what is happening in the business, strategies, plans and their Annual Report implementation through regular corporate or team meetings, Company Profile e-mail or regular news features on the intranetWebsite, Extranet Annual Report, Company ProfileChat, Customer Competition IntranetViral Marketing Chat, Competition for Staff, Sales incentives

Supported Informal Communication

Regular meetings with partners Regular meetings with partners with employees, Discussions

Professional, social and Internal trainings, Briefings, social and sporting events for sporting events employees

Case studies, articles about Case studies, articles about products or business personalities,products or business successful projects, references via company journal, boards or personalities, successful intranetprojects, references

Sponsoring Sponsoring of employees_ activities, social benefits for employees

Company open days Managers open day


Internal Public Relation ClearlyHelps Building ConfidenceNotwithstanding the application of internalmarketing communication, every companymust establish and develop its communicationwith employees [10]. It must start by providingsufficient information and continue by buildingopen mutual communication among partnerswilling to cooperate. The information must beunambiguous and truthful; otherwise it wouldspread doubts, rumors and negative information.It is necessary to work mainly with positiveinformation for strengthening positive companyimage. Awareness creates employees’ confidenceand positive atmosphere. Providing that themanagement succeeds to build such atmosphereallows space for feedback, employees feel thatthe company appreciates them, their internalcooperation is mutually advantageous and themoment for employees’ motivation arises. Ifemployees trust the company, they are willingto work more effectively and productively. They

believe that the firm prosperity brings prosperityto their personal life.

The role of internal PR is also to provideenough openness and information to giveemployees the ability to change their views andactively influence them. Sometimes even thenecessity to overcome prejudices and distrustmight appear. New employees may havepreconceived ideas, including prejudices andnegative evaluation of the company. For theinternal communication management, in thiscase internal PR, the prevention and feedbackis very important. Feedback provides not onlythe reflection of internal PR work, showswhether such activities are effective or not, butalso shows the starting points and may changethe objectives of communication. Feedbackcan detect hidden problems, may indicate theway of achieving desired relationship, showswhat is important for employees and may leadto their work satisfaction. It is important to notethat the lack of internal information will not bring

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positive results; only working with informationcan provide the company with the strength itneeds to be successful. It is important tounleash possible uncertainties and restlessnessthat may become a very negative attitude withinthe company if not addressed in time. It isimportant to listen to the employees, to discusswith them and to create long-term positiverelationship the same way relationships arepromoted with customers.

Conclusion

Basic research in the author’s thesis showedthe state of internal communication in small andmedium sized companies. The research resultsreveal the power of internal communication thatcan be utilized by company managers. Theresults were confirmed by the next researchwith author’s cooperation of commercial sectorand three study case studies for analysis andrevision of internal communication haveprovided clear evidence of the influence ofinternal communication on the work attitudesand performance.

Finally, it should be emphasize that internalcommunication has a significant impact on companyoperations, job performance, and work behaviourand attitudes of employees. In reference file, 80 % employees agree with the statement thatthe internal communication significantly affectstheir job performance and behaviour. Theassociation between the level of internalcommunication and employee loyalty exists.

All employees, including managers, needenough information and communication for betteridentification of the corporate objectives, whichhave raised a confidence in company businessand would convince them of meaningfulness oftheir specific work in the functioning company.Sophisticated internal communication usessuitable tools that can affect the staff workingmorale and the relationship between theemployees and company. This also builds thecompany’s good reputation.

Good internal communication is based on theprinciple that there is a need to treat employeesas internal partners (i.e. internal customers)who should meet their own needs associatedwith the global company performance and leadthem to the common goals [12].

It is important that the company managementis constantly working on creating and maintaining

positive employee relations. People in businessare the most important asset for the company.The aim of any management is for theemployees to be effective, productive and loyal.It is very difficult to achieve this goal. It is notdifficult, however, to teach the employees whatto do and how but may be challenging for anymanagement to motivate them.

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[15] ·IMONOVÁ, S. Modelování procesÛ a dat prozvy‰ování kvality. 1. vyd. Pardubice: UniverzitaPardubice, 2009. ISBN 978-80-7395-205-1.[16] SIMS, R. Managing Organizational Behavior.1st ed. Westport: Quorum Books, 2002. ISBN 1-56720-495-3.[17] WRIGHT, M. Gower Handbook of InternalCommunication. 2nd ed. Farnham: Gower Publis-hing Limited, 2009. ISBN 978-0-566-08689-2.[18] YATES, K. Internal Communication Effective-ness Enhances Bottom-Line Results. Journal ofOrganizational Excellence. 2006, Vol. 25, Iss. 3,pp.71–79. ISSN 1932-2054.

Ing. Jana Holá, Ph.DUniversity of Pardubice

The Faculty of Health StudiesDepartment of Informatics

[email protected]

Doruãeno redakci: 25. 8. 2010Recenzováno: 27. 9. 2010, 11. 10. 2010Schváleno k publikování: 25. 6. 2012

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Abstract

INTERNAL COMMUNICATION IN THE SMALL AND MEDIUM SIZEDENTERPRISES

Jana Holá

In today’s competitive world, the management of human resources plays an integral role as itinfluences prosperity of the company. The satisfied and loyal employees – internal stakeholderscreate the foundation for effective work within the real life of the company which is to improve onthe effectiveness of internal communication. The internal communication process directlyinfluences the building of mutual relations between the company (management) and its employees.Unfortunately, the importance of internal communication is not sufficiently understood inmanagerial practice. Management is not aware of the most important function of effective internalcommunication, which is essential for knowledge management, reengineering and prosperity of thecompany. Without effective internal communication, the company does not take full advantage ofits resources. Effective internal communication improves the work environment climate whileincreasing awareness among employees of company activity and plans. Management gets to hearsuggestions about the company's plans and policies from its employees through effective feedbackmechanisms. Thus the company is able to use fully the accumulated experience of all itsemployees. Effective internal communication enhances the role of the managers and gives morepositive attitude to change within the company. It also allows opportunities to solve problems beforethey become crises. It creates and sustains employee commitment and concentrates effort on thetask on hand while achieving the company's objectives. This chapter brings an overview of internalcommunication. It clarifies the internal communication within the context of personal, marketing andother areas of the company control process. It describes the synergy that can be created by properutilization of managers’ abilities and skills, and the use of information and communicationtechnology tools. The chapter includes selected results of the field research and the current statusand trends of managers’ views on the issue of internal communication. The last part focuses onthe effective internal communication set up.

Key Words: internal communication, management, communication strategy, internalmarketing.

JEL Classification: M12, M3, O15.

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internal communication in the small and medium … · stand internal communication as an everyday...

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