ABSTRACT
Communication is bound to happen in any organization where information is passed on from one person to the other; through the use of both verbal and non-verbal means. Federal Inland Revenue Services (FIRS), like every other organization uses communication in their daily activities; in interactions between superiors and subordinates, as well as among colleagues, both formally and informally amidst some challenges. Role clarity has become an issue as employees had to move and share offices with colleagues in different units. This study investigated the role of effective communication on business efficiency and performance using FIRS as a case study. Specifically, the study examined the communication systems available in FIRS and measured the employees’ efficiency and performance. In addition, it determined the relationship between effective business communication and employee efficiency and performance. It also identified the channels of communication considered by employees to be the most useful. Finally, barriers and breakdowns in the communication systems of FIRS were also identified. Primary data was adopted. Simple random sampling was used for the selection of 200 respondents. Mean, correlation and regression results were adopted in the analysis. From the results, the communication systems frequently used include face-to-face, telephone, written memos, email/internet, with the most useful channel of communication being face-to-face. FIRS employees also largely perform well. Selective listening, distraction, time pressure, communication overload, information distortion, rationalization, and prejudice are identified as barriers and breakdowns in communication systems. Finally, various employees’ efficiency and performance indicators are found to correlate with varying measures of effective business communication. Employee efficiency and performance can be further enhanced if bottlenecks in the communication systems are either removed or kept at their least. Particularly, information distortions caused by omissions and exaggerations must be addressed both by management and employees to improve clarity in communication.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Communication is a means of bringing about change it is the mainstream of any organization growth. There is need to form interaction and understanding of management employee relations this will bring about increased efficiency and performance of all parties involved in the communication process or chain. Communication is a process of transmitting information from one person to another. According to Stephen (2011), communication is a critical factor in directing and mobilizing the workforce toward the accomplishing the of business goals or objectives.
By creating understanding, it enhances co-operation and promote effective efficiency and performance. According to Williams (2007) Smart managers and employees is essential success. According to (Mckinney, Barker, Smith &Davis, 2004) communication is essential co-effective team efficiency and performance and communications for any organization is like blood flow in the human body. Therefore, any organization that understands the importance of communication uses it efficiently and effectively in their business environment. Since communication ensure coordination of factors of production and most importantly material and human elements of organization as an efficient network of change and advancement. Robins (2006), is in the view that communication process is initiated through the following means; the sender-encoding –the message- the channel- decoding-the receiver-noise and feedback. It is estimated that managers spend over 80% of their time communicating with others, since most of the basic management process- planning, organizing, leading and controlling- cannot be performed without effective communication.
Communication refers to the process by which information is transmitted and understood between two or more people (Mcshane & Von Glinow, 2005). Communication is an inteFIRSl part of the business process as the flow of communication up and down the business hierarchy has its effects on efficiency, decision-making and morale of the organizations today. Communication strategies are common in the business world, where they are used as part of a business plan, detailing how to communicate with various groups of people. Communication strategies articulated, explains and promotes a vision and a set of well-defined goals, it created a consistent unified “voice” that links diverse activities and goals in a way that appeals to your partners, or stakeholders, according to the World Bank, 2001, “Ultimate goal of communication is to facilitate a change in behavior to achieve management objectives”. Communication is both a symptom and a cause of organization efficiency and performance problems. Poorly designed organizations, ineffective processes, bureaucratic systems unaligned rewards, unclear customer/partner focus fuzzy visions, values and purpose, unskilled team leader and members, chittered goals and priorities, how trust levels and weak measurement and feedback loops all cause communication problems.
Also, for organization and human as social being, communication has a vital importance, whether pros or cons are in-separable piece of life and also it has an importance role on all activities aimed at gaining business objectives (Ada et al, 2008), attention has been given to study of business communication in business behaviour research as a result of the significance of this variable to business effectiveness. For instances, it has been found that effective communication improves job satisfaction and which in turn improves productivity. Also research also shown that communication results to how employee commitment to the organization (Goris, 2007). We are living in a time when communication systems are evolving rapidly which is essential for success and growth of an organization. Effective workplace efficiency and performance is the key elements in the success of an organization and the effectiveness of the workers employed will determined of the workers the organization will be. There are many challenges facing the business efficiency and performance in our world today. Business communication plays an important role in challenges. Inability of heads or manager of any organization to coordinate a perfect and smooth flow of communication interaction among employee and outside business environment may likely create and facilitate how productivity.
1.2ProblemStatement
Employee Interaction is a principal and essential endeavor in organizations as stated by Harris & Nelson (2008). They further asserted that the sustainability of an organization is based on effective communication among employees and relationships develop based on effective communication. Working environments differs from all angles as well as their culture, economic and social development. In this context some of these organizations’ have cumbersome reporting lines, which are difficult for the employee to abide; such as conflicting authorities, and obligations thereby making some subordinates become answerable more than a superior. Intra- communication facilities such as intercoms and memos are mostly ignored by some organization and this deprives subordinates from knowing the vision and mission of an organization. Considering the problems stated above, the study intends to aid organizations by expounding on the way effective communication would improve employee efficiency and performance.
Studies have shown that effective communication helps employees to coordinate activities, achieve goals. It is also vigorous in socialization, decision-making, problem solving and change-management processes. This again ensures that members of an organization or institution are working towards a common goal and purpose. Most organizations have challenges and continue to find the most effective channels for communicating with their constituents.
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1.3ObjectivesoftheStudy
The main research objective is to determine the function of successful communication on business efficiency and performance using FIRS as a case. However, the specific objectives of the study are below;
- To examine the communication systems in FIRS.
- To measure the efficiency and performance of employees using FIRS appraisal indicators.
- To determine the relationship between effective organisational communication and employee efficiency and performance.
- To identify the most useful channel of communication from employee point of view.
- To identify barriers and breakdowns in the communication system of FIRS.
1.4ResearchQuestions
In order to attain the above objectives, the following research questions must be taken into consideration.
- What is the system of communication that exists at FIRS?
- What is the employee efficiency and performance level at FIRS?
- What is the relationship between effective business communication and workers efficiency and performance at FIRS?
- How does communication improve employee efficiency and performance at FIRS?
- What are the barriers and breakdowns in the communication system at FIRS?
1.5SignificanceoftheStudy
The research will provide meaningful information to the management of FIRS about efficiency, credibility, and economy of their communications policies, practices, and proFIRSms. The study will enable managers in FIRS to get awareness concerning the influence of effective communiqué and in what way ineffective communiqué has negatively affected employee efficiency and performance and thus the study will suggest strategies towards improving communication to boast up employee efficiency and performance in Tax Administration.
Also, the study would aid students studying management to understand the theoreticalbackground of effective and communication. It would empower students to takeoff well when establishing or managing an enterprise.
The study would be beneficial to academia, as it would provide empirical findings on communication systems and channels in public institutions. It would therefore serve as a reference point for future study and at the same time, fill research gap. Finally, it will serve as a model for studying the existing communication structures of public agencies in Nigeria and benefit the Public Relations (PR) and Human Resource (HR) Departments of such Institutions looking for effective communications channels.
1.6ScopeoftheStudy
Due to resource constraints, the study was limited to the collection and analysis of data of mid to selected lower level employees of FIRS in Lagos. This includes FIRS staff of the Small Tax Offices (STO), Medium Tax Offices (MTOs) and Customs Offices in Lagos. The study also sought to uncover the level of internal communication within FIRS and how communication can be leveraged to improve employee morale and efficiency and performance.
1.7 Organization of the Study
This study is organized into five chapters. Chapter one deals with introduction by focusing on background of the study, problem statement, objectives of the study, research questions, significance of the study, scope and limitation of the study as well as the study’s organization. Chapter two deals with literature review with the focus on reviewing various literatures on the impact of effective communication as a tool for improving employee efficiency and performance. Chapter three deals with methodological procedures and research design, which includes data collection, sampling and the analysis of the data, collected. The chapter also presents the Business Profile of FIRS at the last section. Chapter four presents and discusses the empirical results of the study. In chapter five, the summary, conclusions and recommendations of the study are provided.