This study explores the positive effects of effective communication on employee motivation and performance. Specifically, in intends to compare the results between service employees and manufacturing employees in terms of communication as a motivating factor. The theories used in this study to create a conceptual framework are Herzberg Two factor theory, Goal Theory, and the circular theory of communication. The concept is that when hygiene and motivator factors are high, goals can be developed, but can only be effective only if the message was disseminated effectively. The study uses quantitative research on service and manufacturing employees. They were surveyed using a semi-structured questionnaire with ranking questions and some open-ended questions. The study found that there were only slight differences in the motivator factors for both set of respondents but there service employees are higher in hygiene. Both industries, however, see communication as an important factor in motivation. However, they only experience high hygiene, but less motivator, which means that they are not fully motivated. It has been suggested that the companies of the employees surveyed should invest on improving the motivator factors within the working environment and improve communication flows.
THE PROBLEM AND ITS BACKGROUND
This study examines the importance of communication on the performance and motivation of employees. The target samples of the study are employees from service and manufacturing companies. This allows seeing the importance of organizational communication in two different angles – that is the difference between the views of service and manufacturing companies regarding the matter. Comparison of these views may lead to the development of new hypotheses or theories that may contribute to human resource management research. In this chapter, the nature of problem is presented and discussed. The backgrounds of different variables related to the study were also featured. Here, the aims, objectives, problem statements and significance of the study were also explained.
BACKGROUND OF THE STUDY
Employees basically refer to people who work for another in return for wages or salary (Gillis, 2004). Legally, an employee is referred to a person hired to provide services to a company on a regular basis in exchange for compensation, and who does not provide these services as part of an independent business (Gillis, 2004). However, Gillis (2004) stated that employees are more than any of those definitions. Employees are the lifeblood of the organization because they are the ones who provide products and services that define corporations, organizations and government entities (Gillis, 2004). They are referred to as the most precious assets of the organization because without them, the organization is crippled and cannot function effectively.
Because of the important role of employees, organizations have the responsibility to motivate them so as they can function more effectively. Theories of motivation such as Maslow’s theory, Alfelder’s theory, McClelland’s theory, and Herzberg’s theory (Mullins, 1999) explain why employees should be motivated and why organizations should take this concept into consideration. But what really constitutes effective employee motivation? Several research and organizational reports point positive communication as one of the most important factors that build effective employee motivation. For instance, Riccomini (2005) cited a couple of organizational research by General Electric and Hewlett-Packard in the eighties that concludes: “The better the managers' communication, the more satisfied the employees were with all aspects of their work life”. Building a positive communication with employees is important because they are the organization’s best ambassadors or loudest critics, depending on how fast they get relevant information...
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