Thesis on "Effects of Employees Managers Interaction on Employees Attitude Towards Their Company"

Thesis 12 pages (6950 words) Sources: 8 Style: APA

[EXCERPT] . . . .

Additionally, a sample of 250 respondents may be significantly unrepresentative for a perceptual study of this magnitude, and the author figures out that the findings would have been more accurate had a larger sample been used. To this end, there is a need for future research to replicate this study to ascertain its generality on the basis of a broader scope.

Chapter 2: Review of the Related Literature

Historical & General Background

Rogers, (2013) defines managerial communication as the study of stewardship of speaking and writing from managers to employees to get work done. Management views communication as something that should be exploited to achieve organizational objectives. Managers are individuals having the responsibilities of making decisions for an organization or subunits to achieve organizational objectives. Typically, managers spend their entire working time diagnosing unstructured problems, implementing a business plan, and managing financial information and assigning tasks to the subordinates. The historical development of managerial communication started from the classical management theoretical framework. The classical theorists develop the principles of management principles between 19th and 20th century. In 1918, a classical theorist such as Henry Fayol identified that the central function of management is to coordinate, plan and control the subordinates. Frederick Taylor contributed to the management theory by developing administrative principles of management that serve as the bedrock of managerial communication. (Abdelkarim, 2016).

However, it was modern management theorists who identified the importance of managerial communication as an important tool to achieve organizational objectives. Typically, modern management approach uses the contingency approach for employee motivation to increase productivity. However, Rogers, (2013) argued that history of management communication within the business arena is relatively new. The importance of managerial communication to business goals made Wharton Business School at the University of Pennsylvania in 1881 to start courses to train managers in the business communication. (Knight, 1999, Knight, 2005). In 1979, the top ranking business school and universities such as Yale universities and MIT Sloan Business School also took a responsibility to teach management communication.

Employee Loyalty

Peloso (2004) defined employee loyalty as an active relationship between an employee and his organization "willing to give something of themselves in order to contribute to the organization's well-being" (p. 39). The author posited that employee loyalty, though immeasurable per se, can be assessed on the basis of how strongly an employee believes in and accepts the organization's values and goals, how willing they are to put in extra effort to the benefit of the organization, and how strong their desire is to maintain membership therein.

Peltier and Dahl (2009) carry out a study on employee loyalty in the New York Hospital and the result reveals that only 24% of the sampled population considered themselves truly moral and loyal to the organization. A total "of 31 hospital departments were selected for inclusion in the study." Most of the respondents in the Peltier and Dahl (2009) study felt that they were not being engaged in the organization's decision-making processes.

The findings of the Peltier and Dahl (2009) study were replicated by Tella, Ayeni and Popoola (2007) in Nigeria's Oyo State who established a positive correlation between employee motivation, job satisfaction, and organizational commitment, which can be interpreted as employee loyalty (Tella, Ayeni & Popoola, 2007). The organizational commitment construct yielded a worryingly low of 0.83 cronbach alpha out of a sample of 200 respondents (Tella, Ayeni & Popoola, 2007). The study went a notch higher, revealing that most employees considered communication and information availability a better basis of a commitment than financial benefits. This finding resonates with the findings of Abugre (2012), who held that employees are likely to be less loyal and committed to achieving the organization's goals if they feel that their contributions are either being taken for granted or are not being taken seriously, regardless of the financial benefits advanced.

Carnegie (2012) laid out three fundamental drivers of employee engagement, "relationship with immediate supervisor, belief in senior leadership, and pride in working for the company" (p. 2). A national representative 1500-respondent sample showed that "it is the personal relationship with their immediate supervisor that is a key driver of employee satisfaction." (p. 2). Brown, McHardy, McNabb et al. (2007) posited that a supervisor's actions and attitude are the key determinants to subordinate engagement or disengagement. In the Brown et al. (2007) study, only 29% of 1500 respondents considered themselves fully loyal to their workplace.

Undermined Importance of Employees

Peloso (2004) points out that many scholars and managers alike have undermined employees with reference to management issues. Typically, many companies are so busy rushing towards achieving heightened competitiveness and efficiency and seemingly forgetting that the workforce is "the fundamental source of improvement" (Tella, Ayeni & Popoola, 2007, p.1). According to Nayar (2013), this tendency reflects a lack of concern for employees and gives the impression that an organization does not care a great deal about their employees. Nayar (2013) continued to point out that the greatest mistake a company can make is putting its customers before its employees. This point-of-view is supported by Marshall (2010) who believed that a satisfied workforce would automatically translate to a satisfied customer community, and consequently, to heightened customer loyalty.

Marshall (2010), Nayar (2013), and Peloso (2004) concurred that the reason manager-subordinate communication is potentially insufficient in most organizations today is an increased emphasis on marketing communication usually aimed at expanding the external publicity about services and products. Nayar (2013) expressed that there is a need for organizations to reconsider their communication strategies, rather, they should keep all their internal and external communications intact. As Peloso (2004) points out, employees are the link between a company and its customers, and hence the development and sustenance of employee loyalty ought to be the core focus of any manager. The enhancement of employee loyalty leads to a streak of beneficial outcomes, "including increased levels of customer loyalty, higher levels of efficiency, lower recruiting costs, and higher levels of innovation" (Peloso, 2004, p. 39).

Employees' Trust for Managers

Business ethics scholar Caroll Archie (as cited in Brown et al., 2011) noted that people enjoy working in an environment where they can both enjoy the company of those they work with and take pride in the people for whom they work. According to Branham (2012), organizational ethic entails among other things, taking care of employees' needs, building trust through positive communication, acting with integrity in human resource relations, and showing respect for subordinates at all times. Tsai (2011) expressed that employees are likely to have less trust in their managers if the latter does not display a willingness to listen, be supportive, be in genuine caring, be transparency, and honesty. In this case, employees become less committed and ineffective towards customer needs. Positive communication presents opportunities for employees to acquire crucial skills and knowledge not only towards their jobs but the organization as a whole, which enhances organizational outcomes. (Peloso, 2004; Naseem et al., 2011; Marshall, 2010).

As being pointed out by Abugre (2012), internal public relations provide a stepping-stone for the recognition of employees as well as providing equal attention to both investors and customers. Peloso (2004) blames the narrow scope of marketing communications from the low level of communication and employee commitment. The author maintains that workplace values can be evaluated by assessing the role played by communication. According to Gallardo, Sanchez-Canizares, Lopez-Guzman, & Jesus. (2010), internal communication is a fundamental aspect of organizational evaluation because it determines the levels of trust between managers and their subordinates. The extent to which a manager engages in communication with subordinates can reinforce, or weaken the trust between them (Gallardo et al., 2010; Peloso, 2004; Abugre, 2012).

Employees' Inclination to Leave a Company

Numerous studies have established that there is indeed a positive relationship between employee satisfaction and adequacy of the information provided by management (Marshall, 2010; Peloso, 2004). This explains why employees are seen to prefer face-to-face interactions and public forums, as opposed to written communication, news briefings, or telephone calls, when communicating with their managers (Tella, Ayeni, & Popoola, 2007; Branham, 2012). Branham (2012) posited that this tendency is due to the belief that communication is never effective unless it is interactive. Lack of a two-way communication mechanism makes employees feel less important, which sufficiently weakens their trust and commitment.

The belief that employees already know, or worse still, do not care about what goes on in their organizations, therefore, a source of the fallout between employees and their managers, which is one of the reasons why employees would prefer one company to another (Braham, 2012). A study carried out by Tella, Ayeni & Popoola (2007) reveals that employees prefer a work environment that recognizes their efforts and makes them advancing their financial benefits.

As Brown et al. (2011) point out, gone are the days when employee trust, commitment, and loyalty were bought using money; today, being part of the employee class has a lot to do with the availability of career advancement, innovation opportunities and… READ MORE

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