Chapter 7
Internal Communications
WAR FOR TALENT
Recruiting – Start Early, Build a
Reputation
Google: Fortune Best Company to Work For 2012
Defining Internal Communication
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
Internal communication is “the planned use of
communicaton actions to systematically influence the
knowledge, attitudes and behaviours of current
employees” (Stauss and Hoffmann, 2000).
Bowen (2006) defines internal relations is “building
and maintaining relationships with all the publics
inside an organisation” from lower supporting staff
to top management personnel.
Defining Internal Communication 2/2
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Van Riel and Fombrun (2007) argued that an excellent organization puts
emphasis on communicating with five key stakeholders such as employees,
customers, investors, government, and the public.
An internal stakeholder – an employee – is a key organisational asset.
Although some organisations have put internal communication under the
responsibility of the Human Resource Department, it is argued that
internal communication must report to the Corporate Communication
Department to build an effective communication system.
Importance of Internal
Communication
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
According to Argenti (2007: 138), “in the postEnron era, many empoyees are functioning with a
greater degree of cynicism or distrust of
corporations and their senior managements”.
They are concerned about “how senior management
is communicating with them, what is being
communicated, and whether or not the feel
engaged in and aligned with the company
direction” (Argenti, 2007)
Changing environment

Today’s employee
 well
educated
 Higher expectation
 Want to understand more
 Outsource

Today’s workplace
 Tighter
staffing
 Longer hours
 Greater workloads
 performance
Changing Environment (cont)

Business
 Complex
 Highly
competitive
 Employee participation – inform, engage
The Trends in an External Macro-Environment
Influence Internal Communication

Figure 6.0: The PEST Analysis (political, economic, social and technological):
Building Strategic Internal Communication
External Macro-Environment 2/3

Political
 Trends
in the political environment relate to new
legislation, government policy, national and
international politics (Tench and Yeomans, 2006)

Economic
 Trends
in the economic environment are often
associated with the laws of supply and demand (Tench
and Yeomans, 2006)
External Macro-Environment 3/3

Social
 Trends
in the social and cultural environment should be
taken into account as changes will affect the future
market that emerges and the ‘kind’ of generation
particularly relating to demographic structure of the
society.

Technological
 Trends
in the technological environment relate to the
changing information communication technologies affect
the nature of work and the nature of jobs (Tench and
Yeomans, 2006)
Organizing the internal effort



Communication audit
Goals – important assets
Where report?
Implementing an effective internal
communications program

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Communicate up and down
Make time for face-to-face meetings
Communicate online
Create employee-oriented publications
Communicate visually
Focus on internal branding
Consider grapevine
How to Succeed with Employees
1.
2.
3.
4.
5.
6.
7.
Create an atmosphere of respect.
Treat employees as insiders.
Build-up corporate loyalty: “Ambassadors of
Commitment.”
Capture more discretionary time.
Increase two-way communications.
Invest in decent publications.
Listen to and use the grapevine.
Employees Relations: Measuring
Internal Communication



Today’s corporations try to attract best and
talented professionals and retain current skilled
workers.
Recently, a number of Malaysian business leaders
agree that managing talent is vital for their
corporations.
Employees relations is about how senior managers
communicate coherent messages pertaining to
organizational policies with their skilled staff using
appropriate communication channels such as emails,
telephones, and video conferences and so forth.
Employees Relations: Measuring
Internal Communication 2/2


According to Krone et al, 2001 in Van Riel & Fombrun, 2007: 188),
employees relations consists of four roles:
Efficiency


Shared meaning


Internal communication is used to build shared understanding among employees
about corporate goals.
Connectivity


Internal communication is used primarily to disseminate information about
corporate activities.
Internal communication is used mainly to clarify the connectedness of the
company’s people and activities.
Satisfaction

Internal communication is used to improve job satisfaction throughout the
company.
Effective Internal Communication
Programs

Flow of Communication



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

Downward communication – [management to
employees]
Upward communication – [employees – management]
Horizontal communication – [employees – employees]
Relationship Management
Bulletin and Publication
Internal Branding Program
Selecting externally – engaging
internally

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Build the Employer Branding strategy
Be out there (academia, conferences, forums,
professional
clubs, corporate events)
Engage the business – they know their market
Job enrichment: meaningful and exciting jobs
Balanced remuneration / performance linked
Talent programs
Career Development to complement performance
review
Conclusion




This chapter covers a clear understanding about strategic internal
communication as a management function that requires substantial
attention from top management.
However, in a multicultural country, internal communication relies on
face to face interaction between managers and subordinates.
The aura of leadership and communication are key integral parts of
effective strategic internal communication.
There is a dire need for internal communication or employee
communication to move beyond communicating with employees,
instead the role must be inspiring employees for building
organisational excellence.
The wicked leader is he who people despise.
The good leader is he who the people revere.
The great leader is he who the people say,
“We did it ourselves.”
-Lao Tsu