The Impact of Organizational Communication on Organizational Performance

Abstract

This research was designed to explore the impact of organizational communication on organizational performance in the universities. The research was quantitative and descriptive in nature. The population of the study was students and teachers of public and private sector universities. Sample of 600 students and 120 teachers was selected from public and private universities through proportionate stratified sampling technique. For the collection of data two self-developed research questionnaires were used; one for students and other for teachers. Experts ' opinion was utilized to ensure the validity of the questionnaires. Whereas, reliability was measured through pilot testing on 100 students and 20 teachers; 50 students and 10 teachers from each public and private sector universities. The organizational performance was determined from the Higher Education Commission Ranking scores of universities. Quantitative data was analyzed through SPSS software. Linear Regression was applied to see the impact of overall organizational communication on organizational performance. Findings of the research revealed that there was significant effect of organizational communication on organizational performance. Hence, it was recommended that university may adopt effective and appropriate means of communication to address academic and nonacademic problems and issues which ultimately affect organizational performance.

Headnote

Abstract

This research was designed to explore the impact of organizational communication on organizational performance in the universities. The research was quantitative and descriptive in nature. The population of the study was students and teachers of public and private sector universities. Sample of 600 students and 120 teachers was selected from public and private universities through proportionate stratified sampling technique. For the collection of data two self-developed research questionnaires were used; one for students and other for teachers. Experts ' opinion was utilized to ensure the validity of the questionnaires. Whereas, reliability was measured through pilot testing on 100 students and 20 teachers; 50 students and 10 teachers from each public and private sector universities. The organizational performance was determined from the Higher Education Commission Ranking scores of universities. Quantitative data was analyzed through SPSS software. Linear Regression was applied to see the impact of overall organizational communication on organizational performance. Findings of the research revealed that there was significant effect of organizational communication on organizational performance. Hence, it was recommended that university may adopt effective and appropriate means of communication to address academic and nonacademic problems and issues which ultimately affect organizational performance.

Keyword: organizational communication, impact, organizational performance, effective communication, performance indicators.

Introduction

Communication is the process by which information is shifted to individuals and/or organizations in a manner that its result could bring forth an understandable reaction. (Peter, 2015). Primarily, relationships develop due to communication, and the operations and entity of organizations relies on potent relationship among persons and groups. Thus, communication is an essential ingredient in everyone's life social or professional. Against the backdrop of organization, communication becomes crucial factor for organiatzional success, vigor and source of harmonization as it transfers information to a larger group of people in the organization. There are three types of communcation recognized as verbal, nonverbal and written whereas the flow of communication is classified as formal and informal way of trasnmission. Communication is a big source of interconnection and settlement of issues among individuals in an organization.Hence,all administrative decisions and managerial actions should be communicated for the fullfilment of organizational objectives and overall effectiveness of the organization. If organizational, administration and managerial staff communicate programs and policies with all other stakeholders (i.e. students, parents, instructional and noninstructional staff members) it would be more useful for the growth of an organization (James , 1986). As the field of communication grew and expanded, various theories and models have been introduced and developed over the years. Some models of communication expounded human notions pertaining to the nature of human actions and behaviors like expression, illustration or anticipation to bring changes (Lauer, 2008). Throughout the history of communication study, the communication procedure starts with receiver and communication perceived as one-way of transmission of information and knowledge from one source to the other. The manner of communication is a vital source for the achievement of communication goals and its paradigms. As paradigm entails broad outlines to impact others like writings of Thomas Kuhn that influences the views and opinions of scholars over a period (Craig, 1999). The theories of Shannon and Weaver and specifically Schramm, suggest that the given message is not identical to the received message. Thereby various communication processes go unheard and unresponsive (Simonson et al. 2013). Similarly, the researches of Westley and MacLean also concluded that message sent is not equal to message received, their perceptions offered rational and widened explanations about why the sent message is not understood, has less importance and triviality as purposed by the source (Curran, 2008). Moreover, the concept of field of experiences was introduced that described reasons why the picture in the head of the sender is not replicated in the head of the recipient following the conveying of the message. Likewise, two-step flow of communication model was established that hypothesizes: ideas and opinion of leaders flow from mass media to extrapolative value of the classical paradigms (Curran, 2008).

According to Mckinney, Barker, Smith & Davis (2004) communication is mandatory to improve performance of a team, Communication has similar status in an organization as that of blood flow in human body. Thereupon, an organization that understands the importance of communication uses it in its organizational environment. As, it makes sure the collaboration of material and human factors and helps an organization in evolving an efficacious network of transformation and progress. It is important to understand the notion of effective organizational communication, as it is crucial for an organization's success. Yet, pragmatically it is less likely to achieve aforesaid full communication where the sender and the receiver get the same meaning (Stewart, 2000). Effective organizational communication works only when barriers of communication are managed in a dexterous manner. Ensuing are the barriers which obstruct the smooth flow of effective organizational communication; Filtration, elective perception, information overload, emotions, language, silence, communication apprehension, gender difference, politically correct communication (Stephen, 2011).

Communication plays four meaningful roles inside a group or organization: Firstly, communication monitors the demeanor of members. Secondly, communication nurtures motivation by letting it known to employees what they have to do, how satisfactorily they are doing, and how to upgrade performance if it is sub grade. Thirdly, communication offers a medium to give vent to emotions and gratify social desires. Another function of communication is to aid decision making. It lends the requisite facts and data that individuals and groups require making decisions, to boost performance of a team, and the information to choose and weigh other alternatives. To sum up, to work effectively groups have to exert some type of constraints over members, drive members to work well, allow emotional expression, and give them liberty to make decision choices (Stephen, 2011).

There is a powerful relationship between organizational communication and performance of an organization when an appropriate medium of communication prevails between organizational elements. This medium of communication medium is adherent with the progress and achievements of the organization and it deals with bugs being occurred during the communication process. Ultimately, the organization becomes genuine and indiscriminate combination of benevolence, as a classical organization (Roberts, 1984).

Organizational performance appraises the output of the organization against organizational vision, goals, and the standards of overall development of organization. In higher education, performance indicators are used to evaluate performance. For economic assessment performed in educational institutions it is quite fruitful to use performance indicators too in place of other conventional techniques (Barrow, 1990). A simple conceptual framework explains higher education as a process that converts inputs into outputs. It also presents itself as a part of greater economic and social process. In this framework inputs stand for students' time, academics' time, equipment, consumables, and buildings while outputs refer to teaching or research. The knowledge enrichment and serviceability of those registered in higher education institutions are incorporated in teaching output. They may be undergraduate students, graduate students, researchers or those taking short courses. Outputs from higher education are sometimes used as consumption benefits directly. For example, completion of research or mastery of a discipline gives satisfaction. Some outputs serve as intermediate input into other economic processes or as inputs that serve as feedback in higher education.

This study was aimed at exploring the impact of organizational communication on organizational performance through perceived existing organizational communication and organizational performance in the public and private sector universities of Islamabad. It is communication structure via which knowledge and information are disseminated in organization management. This research work could be helpful for betterment of communication system as it gives an insight into communication structure and elements that bar the flow of communication within an organization. Moreover, it gives a peep into the interrelationship between organizational communication and organizational performance. Since organizational communication is pivotal for achievement of organizational goals that results into enhanced organizational performance. In addition, organizational qualifications make progress and carry on via keen social and communicative procedures (Jones et al., 2004). In existing age, we consider communication as the pre-dominant and primary functions in organizations (Harris & Nelson, 2008).

Numerous researches point out that organizational communication influences organizational performance. Such as Rho (2009) by correlating internal communication with external communication in both public and non-profit organization examined the effect of organizational communication on the cognizance of red tape. Client-oriented communication was specifically thought about. Similarly, in the view of Inedegbor, Ahmed, Ganiyat & Rashdidat (2012) practices of effective business communication were related to the kind of business (whether manufacturing versus service) and the size of business. In another study, Neves & Eisenberger, (2012) recapitulated their management communication as it reflects the correlation between management communications and inferences of practice and is also emphatically lined up with transformations in POS because of time. This study exploited the perceived organization support in connection with communication as suggested by effects of communication on organizational performance.

As Kibe (2014) using a descriptive research design investigated the effects of communication strategies on organizational performance. For this purpose 132 questionnaires were distributed among employees. This study concluded that for effective performance, an open communication is most suitable at both theoretical level and practical level. When members of the organization are free to share feedback, their suggestions and criticism help in improving the performance of organization. In addition, Nnamam & Ajagn (2014) analyzed the correlation between the employees and their work environment to estimate how far employee's performance affects productivity and also explored to what length environmental factor enhances the performance. The study by Adegbuyi, Adunola, Worlu, Rowload & Ajagbe (2015) concluded from the literature review that the business strategies such as customer orientation, employee autonomy, training and development, job satisfaction etc. play an important role in organizational performance. In another research, Bery, Otieno, Waiganjo and Njeru (2015) scrutinized the effect of employee communication on organizational performance in Kenya's horticulture sector. They proposed that organization ought to evolve effective communication plans as it will be conducive for emanation of information within and outside the organization and result in augmentation of performance.

Though various research studies have been done regarding the effect of organizational communication on organizational performance but as far as educational sector is concerned it never got studied from this angle. Thus, this research is an input and preliminary step to explore impact of organizational communication on organizational performance in the domain of education.

Objective of the Study

The objective of the research was to explore the impact of perceived organizational communication on perceived organizational performance in public and private sector universities of Islamabad.

Hypotheses

H01: There is no significant effect of perceived organizational communication scores on organizational performance scores in public sector universities.

H02: There is no significant effect of perceived organizational communication scores on organizational performance scores in private sector universities.

Methodology

The present study was based on descriptive research design and quantitative approach was employed. The population of the study was comprised of all public and private universities of Islamabad capital territory of Pakistan. The study was delimited to 3 out of 15 public and 3 out of 6 private sector universities as only selected universities were included in Higher Education Commission Ranking-2015. Proportional stratified sampling technique was applied to select sample from universities. The sample was acquired by segregation of population into two main strata: public sector universities and private sector universities. It was segregated additionally into two sub strata i.e. university teachers and students. Air University, Federal Urdu University of Arts, Sciences & Technology, (FUUAST), National University of Modern Languages, (NUML), from public sector and Mohammad Ali Jinnah University/Capital University of Science and Technology, (MAJU/CUST), Foundation University, Riphah International University, from private sector were the sample universities. Sample was selected from the following faculties; Social Sciences, Computer sciences, Management Sciences, Engineering, Pure Sciences and Humanities. The accessible population consisted of 50,888 students and 1,192 teachers from 3 public and 3 private sector universities. Out of which a sample of total 600 students; 300 from each public and private sector and total 120 teachers; 60 from each public and private sector was selected by proportional stratified sampling. 100 students and 20 teachers from each university were included in the sample.

To explore the existing organizational communication, two questionnaires were used for the collection of requisite data; one for teaching faculty and other for university students. The questionnaires were self-developed according to the objective of the study and "Theoretical Structural Model of a Communication System at an Organization", (Blazenaite, 2012). Students' questionnaire contained 40 main items including sub items with a total of 158 whereas the teachers' questionnaire had 34 main items including sub items with a total 156. The content and construct validity of both questionnaires was determined by subject and language experts' opinion and the reliability of students' and teachers' questionnaire was determined through pilot testing on 100 students (50 from each public and private sector university) and 20 teachers (10 from each public and private sector university). By applying Cronbach alpha, reliability was found quite high (0.982 and 0.972). While to determine organizational performance, Higher Education Commission Annual ranking scores (based on 11 Standards of Performance Evaluation of Higher Education Institutions suggested by Higher Education Commission) was considered a standard.

Survey method was used to collect the required data. Two research instruments were distributed to 120 teachers and 600 students in 3 public and 3 private sector universities. It was relatively easier to obtain responses from the students as compared to the teachers as teachers were restricted by hectic schedules. It took almost 90 working days to bring this task to completion. Data was analyzed through Statistical Package for Social Science (SPSS) Software and presented in the form of table. Linear regression was applied to see the impact of organizational communication on organizational performance.

Results

Linear Regression result shows that R2 value is 0.041, it indicates that independent variable (Organizational Communication) had 4.10% effect on Dependent Variable (Organizational Performance) in public sector universities. While the Co-efficient ( = 44.784) was significant at p < 0.05 level of significance. The null hypothesis that there is no significant effect of perceived organizational communication scores on organizational performance scores in public sector universities was rejected.

The result illustrated that R2 value is 0.066, in addition it explains that Independent Variable (Organizational Communication) had 6.60% effect on Dependent Variable (Organizational Performance) in private sector universities. While the Co-efficient ( = 53.396) was significant at p < 0.05 level of significance. The null hypothesis that there is no significant effect of perceived organizational communication scores on organizational performance scores in private sector universities was rejected.

Discussion and Conclusions

This comparative study was designed to focus on the relationship of two - variables. Two independent variables were selected for the study. One was the organizational communication, whereas the other was type of universities i.e. private or public. The dependent variable for the study was organizational performance. The independent variable of organizational communication was determined by questionnaires according to objective of the study and selected model of communication system. The organizational performance was determined from the Higher Education Commission ranking scores of Higher Education Institutions. Linear Regression was applied to find out the impact of organizational communication on organizational performance.

The findings of public and private sector universities on organizational communication system functioning and organizational performance scores revealed harmonization between organizational communication and organizational performance. It was concluded that independent variable (Organizational Communication) had significant effect on dependent variable (Organizational Performance) of public and private sector universities. In addition, on the basis of organizational communication scores and organizational performance ranking scores of universities, it was concluded that organizational performance improves subsequently when organizational communication system performs well. Both organizational communication and organizational performance are interdependent. Imperfect functioning of one element (communication system), results in the failure of other (performance). Organizational communication and organizational performance of public and private sector universities turned out to be interrelated with each other.

Research by Kibe (2014) supported the findings of the present study, which investigated the effects of communication strategies on organizational performance. In that research it is concluded that open communication is most appropriate for effective performance. Another study by Beryl, Otieno, Waiganjo and Njeru (2015) provided support to the findings of current research which explored the effect of employee communication on organization performance. It is recommended that effective organizational communication strategies should be developed for the sharing of information within and outside the organization that results in the improvement of performance, ultimately. Likewise, Inedegbor, Ahmed, Ganiyat & Rashdidat (2012) found out that effective business communication is correlated to the kind (production against service) and size of business. Moreover, in the view of Adegbuyi, Adunola, Worlu, Rowload & Ajagbe (2015) the business communication strategies related to customer orientation, employee autonomy, training and development, job satisfaction etc. showed an important role in organizational performance.

Recommendations

In the light of previous researches and present study it is proved that organizational communication affects organizational performance. This study is a contribution regarding exploration of impact of organizational communication on organizational performance in educational perspective, as this field didn't get due attention in this scenario so far. Since present study was delimited to observe communication between students and teachers only, hence for further research it is recommended that communication among all management levels (administration, Deans/HODs and teaching faculty) may be brought into its domain to get in depth knowledge of existing organizational communication system. Furthermore, if interview technique is also applied in addition to questionnaire, future researches may be more productive to have in depth knowledge of communication system. Moreover, future studies may be conducted in other cities as well to get a holistic view of organizational communication and organizational performance at country level in the educational scenario.

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