IMPACTS OF EFFECTIVE COMMUNICATION ON ORGANIZATIONAL PERFORMANCE IN MANUFACTURING INDUSTRY

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IMPACTS OF EFFECTIVE COMMUNICATION ON ORGANIZATIONAL PERFORMANCE IN MANUFACTURING INDUSTRY

Chapter one

INTRODUCTION

1.1 Background of the Study

One of the distinguishing features of the human being is his ability to objectify his thoughts and ideas via language. The social evolution of language, particularly speaking language, allowed man to extend the gap between himself and the rest of the animal kingdom. Thus, language can be defined as a set of sounds, symbols, and words used for communication.

Communication affects all aspects of human existence. Business communication is any communication designed to market a product, service, or organisation with the goal of making a sale.

In reality, it is not an overstatement to argue that the productivity and efficiency of an organisation are directly and indirectly tied to the quality of the communication system and networks.

Juslin and Petri (2003), who investigated the impact of communicating emotions through vocal expressions on music performance, emphasise the power of communication approaches.

It consists of content, which can be factual information, debate points, formal notices, and forms of communication, such as memos, reports, and bulletins, to name just a few.

Face-to-face communication, written reports/memos, e-mail, fax, telephone, audio (radio), and audio-visual (TV sets) are all important forms of media. In reality, in broadcasting, the medium is often referred to as the message. This serves to establish the role and relevance.

According to Alexander Ode (2009), communication is a process that shares with two or more people what was previously exclusive to one or a few. It is also defined as the process by which one individual (the sender) transmits stimuli in order to influence the behaviour of another individual (the audience).

Many organisations today have capsized, with some fast diminishing and others failing to attain their intended sales levels due to a lack of a solid communication system.

1.2 Research Problem

The manufacturing industry’s communication system must be promoted and improved in order to maintain its character, ability to withstand competition, adaptability, and profit maximisation.

Furthermore, Andersen (2001) observed that improving an organization’s communication capacities can influence performance through enhanced strategic decision making, better coordination of strategic actions, and facilitation of learning from strategic initiatives.

To make sufficient sales volume, a business organisation must devise a sound communication system that will be used to evaluate their sales performance.

Against this backdrop, this study proposes to conduct and investigate the effects of effective communication on organisational performance in the manufacturing business, utilising Global Soap and Detergent as a case study.

1.3 GOALS OF THE STUDY

The purpose of this study is to critically investigate the effects of good communication on organisational performance in Nigeria’s manufacturing business, with a focus on Global Soap and Detergent, Ilupeju, Lagos. The study’s aims are as follows:

1. To investigate the relationship between effective communication and sales volume in the industrial sector.

2. To examine how good communication helps manufacturing organisations achieve their aims and objectives in a dynamic business environment.

3. To investigate how effective communication influences profit maximisation in a manufacturing organisation.

4. To determine how good communication affects organisational productivity.

5. To investigate how efficient communication strengthens the manager-employee relationship.

6. To determine the value of effective communication in motivating employees to perform better.

1.4 RESEARCH QUESTIONS.

The following are the research questions for this study:

1. How can excellent communication help an organisation enhance its sales volume?

2. To what extent does communication help manufacturing organisations achieve their aims and objectives in a dynamic business environment?

3. Does excellent communication have a substantial impact on the profit maximisation of a manufacturing company?

4. How does effective communication improve organisational productivity?

5. To what extent does efficient communication strengthen manager-employee relationships?

6. Does efficient communication help employees perform better?

1.5 Research Hypotheses

H0: Effective communication does not increase sales volume of Global Soap & Detergent.

H1: Effective communication has a substantial impact on the sales volume of global soap and detergent.

Ho: Effective communication does not improve an organization’s productivity.

H1: Effective communication increases an organization’s production.

Ho: Effective communication has no substantial effect on organisational profit maximisation.

H1: Effective communication has a substantial impact on company profit maximisation.

1.6 Significance of the Study

The ultimate goal of communication is to build management skills in the quest of excellence. Furthermore, the findings of this study might be applied in both the manufacturing and service industries, allowing them to develop a good communication system that will increase their sales volume and output.

Effective communication will also be very important for commercial organisations since it will allow them to identify whether their sales success is meeting expectations. It will also benefit academics by providing a foundation for more in-depth and critical evaluations of effective communication in an organisation.

1.7 Scope and Limitations of the Study

This study examined the effects of good communication on organisational performance at Global Soap and Detergent in Ilupeju, Lagos. This study also covered the concept and elements of effective communication, as well as the conceptual and theoretical frameworks of communication, communication efficiency, communication flow in the industry, and the benefits of sound communication.

Another barrier that served as a limiting element was the organization’s executives’ refusal to divulge critical information without management consent.

1.8 Definition of Terms

The researcher developed a list of significant phrases used in this study that may not have the same conventional connotation.

Communication is the process of expressing thoughts, feelings, and information from one person to another or between persons.

Effective: sufficient to achieve a goal; achieving the desired or expected outcome.

Efficient means doing or functioning in the best possible way with the least amount of time and effort.

Conflict is defined as an emotional or physical battle in which two or more people compete for the same resources, activities, or goals that only one of them can attain at the expense of the others.

Sales is defined as the commercial activity of selling goods or services in exchange for money or other remuneration. It is the act of completing a commercial operation.

Employees: According to the Longman Dictionary of Contemporary English (2001), employees are those who are paid to work for someone else.

Management is the act and science of achieving goals via the efforts of others.

Armstrong (2001) defines performance as a record of results achieved.

Manufacturing is the process of transforming raw materials, components, or parts into finished goods that suit a customer’s needs or standards. Manufacturing often uses a man-machine system with division of labour in large-scale production.

Industry is a fundamental category of business activity. The term industry can refer to a very specific business activity (such as semiconductors) or a more general business activity (such as consumer durables). Chapter One: Participation

INTRODUCTION

1.1 Background of the Study

Communication affects all aspects of human existence. Business communication is any communication designed to market a product, service, or organisation with the goal of making a sale.

The importance of efficient communication in all human organisations cannot be overstated. It is similar to the role of blood in human physiology. This is because communication is the process of developing, conveying, spreading, and interpreting ideas, facts, messages, views, feelings, and information from one person to another. In reality, it is not an overstatement to argue that the productivity and efficiency of an organisation are directly and indirectly tied to the quality of the communication system and networks.

According to Andersen (2001), improving an organization’s communication capabilities can have an impact on performance by improving strategic decision-making, better coordinating strategic actions, and enhancing strategic initiative learning. Juslin and Petri (2003), who investigated the impact of communicating emotions through vocal expressions on music performance, emphasise the power of communication approaches.

In other words, communication is primarily a sharing activity – a mutual exchange between two or more people that ensures the entire system functioning as an organic whole (Hybel and Weaver II, 2001). It consists of content, which can be factual information, debate points, formal notices, and forms of communication, such as memos, reports, and bulletins, to name just a few. Face-to-face communication, written reports/memos, e-mail, fax, telephone, audio (radio), and audio-visual (TV sets) are all important forms of media. In reality, in broadcasting, the medium is often referred to as the message. This serves to establish the role and relevance.

Many organisations today have capsized, with some fast diminishing and others failing to attain their intended sales levels due to a lack of a solid communication system.

1.2 Research Problem

The manufacturing industry’s communication system must be promoted and improved in order to maintain its character, ability to withstand competition, adaptability, and profit maximisation.

The primary goal of a business organisation is survival, so in order to survive, a business organisation must not only design effective communication techniques or systems, but also make a substantial profit, which Drucker (2000) refers to as “the cost of staying in business.” To make sufficient sales volume, a business organisation must devise a sound communication system that will be used to evaluate their sales performance.

1.3 GOALS OF THE STUDY

1. To investigate the relationship between effective communication and sales volume in the industrial sector.

2. To examine how good communication helps manufacturing organisations achieve their aims and objectives in a dynamic business environment.

3. To investigate how effective communication influences profit maximisation in a manufacturing organisation.

4. To determine how good communication affects organisational productivity.

5. To investigate how efficient communication strengthens the manager-employee relationship.

6. To determine the value of effective communication in motivating employees to perform better.

1.4 RESEARCH QUESTIONS.

The following are the research questions for this study:

1. How can excellent communication help an organisation enhance its sales volume?

2. To what extent does communication help manufacturing organisations achieve their aims and objectives in a dynamic business environment?

3. Does excellent communication have a substantial impact on the profit maximisation of a manufacturing company?

4. How does effective communication improve organisational productivity?

5. To what extent does efficient communication strengthen manager-employee relationships?

6. Does efficient communication help employees perform better?

1.5 Research Hypotheses

H0: Effective communication does not increase sales volume of Global Soap & Detergent.

H1: Effective communication has a substantial impact on the sales volume of global soap and detergent.

Ho: Effective communication does not improve an organization’s productivity.

H1: Effective communication increases an organization’s production.

Ho: Effective communication has no substantial effect on organisational profit maximisation.

H1: Effective communication has a substantial impact on company profit maximisation.

1.6 Significance of the Study

1.7 Scope and Limitations of the Study

as well as the conceptual and theoretical frameworks of communication, communication efficiency, communication flow in the industry, and the benefits of sound communication.

This study could have included other areas of communication, but the researcher had limited time to conduct a thorough analysis and the expense of obtaining necessary materials was prohibitively expensive. Another barrier that served as a limiting element was the organization’s executives’ refusal to divulge critical information without management consent.