An investigation into the impact of internal communication to staff motivation and satisfaction in enhancing performance at Rafiki Microfinance Bank

Date
2016-04
Authors
Syengo, Zacchaeus Ivutha
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Internal communication is an integrated set of activities that ensures effective transfer of company values, ideals, events and important messages among employees within an organization as described by Civicus (2010). It is the communication that relates directly to the major asset of the organization: the people – staff, management and volunteers – that give the organization its ability to function (Tourish and Hargie, 2004). Quirke (2008) indicates that communicating and sharing information with colleagues is overlooked as everyone concentrates on getting work done and achieving the organization’s objectives, yet this phenomenon is very important towards delivery of the same goals. According to William, 2010, communication will help managers in their planning as well as the development of new strategies. Managers used the advance technological devices as their main means of communication that is through e-mail, phone, and online meetings with conference calls, as well as physical contacts on a one on one conversation to share information that keeps employees motivated. Staff motivation was defined as the level of energy, commitment, and creativity that a company's workers bring to their jobs (McClelland, 2003) Abou-Zaki (2003), found out that job performance was found to increase with job satisfaction and tenure among individual job facets in the Lebanese commercial banking sector. The study results also indicated that job satisfaction is not independent in all job facets and that satisfaction with one facet might lead to satisfaction with another. Performance in this research was defined as achievement of metrics, cleared distinct with an evaluation criteria and corresponding measures that operate as leading indicators strategic goals and initiatives. This definition was adapted as indicated by Monica, 2007. The metrics are based largely on financial parameters. The purpose of this research was to explore the nature of internal communications, and argue that an integrated approach to internal communications is beneficial when sharing information in organizations. The research examined the importance of internal communication for a company to be successful. This research explored how companies can develop an internal marketing philosophy, as they strive to offer quality products and services to both markets: internal and external. The research involved administering 95 questionnaires to 5 employees of the 19 branches at Rafiki Microfinance bank. 19 other staff, one from each branch were interviewed with open-ended questions to explore the impact of internal communication on performance at Rafiki Microfinance Bank. The study found out that internal communication is a strong predictor of staff motivation, job performance and staff satisfaction at RMB. The most common communication channels at RMB are emails, meetings and supervisors. These channels are believed to share much information than other communication channels.
Description
Submitted in partial fulfilment of the award of the degree of Masters of Business Administration at Strathmore Business School, Nairobi
Keywords
Internal communication, Internal marketing, Staff motivation, Job satisfaction, Performance
Citation