Importance of Internal Communication in Business Organizations

Effective Business
Communication
Business Memo

MEMO 1
To: The members of the organization
From: Chief Executive Officer, Data Solutions
Date: 05 August 2018
Subject: Internal Communication in Data Solutions
The memo is aimed to provide an insight of the importance of the communication at the workplace,
with the evaluation of the communication framework at Data Solutions and the action plan to be
followed.
Communication simply means the act of exchanging the information using the written, spoken words,
gestures or any other medium. Effective communication plays a fundamental role in all the phases of
the business such as planning, organising, motivating, controlling and more. Thus, the effective
communication is regarded as the building block of the organisation (Adair, 2011).
External communication is important, as it is the link between the organisation and its customers,
suppliers, regulators and many more. Internal communication is equally critical as it is the bridge
between the company and its members. Internal communication helps in ensuring that the members of
the organisation are working towards a common objective. It also aids in improving the efficiency and
productivity of the employees by motivating them (Ritchie, 2015).
The communication audit is the process by which the organization’s communication programme is
evaluated and examined, so that the gaps in the communication process are recognised, the hurdles in
the effectiveness of the communication are revealed and the same is improved in order to achieve the
organisation’s overall objectives (Hargie & Tourish, 2009). Thus, the general purpose of this exercise
is to strengthen the overall performance of the enterprise, while the specific purpose is to improve the
interpersonal relationships at various levels of the entity and improvement in individual performances
(Downs & Adrian, 2012).
The top management of the Data Solutions has conducted the communication audit procedure in the
organisation and the following facts are revealed in relation to the internal communication
performance of the entity. The first major problem that has been identified is that there is a problem
with the proper flow of communication from the top level management to the employees. The result
of the same is that the strategic decisions and the policies formulated at the Brisbane head office of
the company fail to reach timely and effectively to the respective branch offices. Improper flow of
information from the top leads to a lack of overall motivation and the direction in terms of the clarity
of operations of the employees (Reitzig & Maciejovsky, 2015). The quantitative effect of the same is
that the company has lost the competitive edge in the business line of the data management, and as a
result, the competitors in the industry are earning a better return on investments.
The second major problem that has been identified by the management is that there is a lack of
effective communication between the supervisors and the employees. Ineffective employee supervisor
communication leads to a decline in the overall performance and the productivity of the employees
(Mikkelson, York & Arritola, 2015). Also, there is an increase in the number of the conflicts reported
at both Melbourne and the Sydney branch offices. The same is depicted by the fact that the employee
turnover in the Data Solutions was the highest in the whole industry and the employees are leaving the
organisation at an unprecedented rate.
The third and the most important issue with the internal communication structure is a lack of
professionalism in the written communications, especially the emails. Emails are considered to be the
most effective electronic medium to communicate at the workplace (Schnurr, 2012). These help in
building a healthy and transparent work environment and thus serves as an aid in the overall
management of the operations of the company (Kokemuller, 2018). The unprofessional and poorly
written emails are a major cause of the creation of the misunderstandings and wastage of time and