Internal and External Communication at Vodafone - Essay Example

? MANAGEMENT Essay on VODAFONE’s COMMUNICATION - Internal & External Lecturer: Due on: Communication is the exchange of message between people for the purpose of achieving common meanings. There are two types of communications, verbal communication and the other is non verbal communication. Verbal communication involves both oral and written exchange of words. Written communication can be done via reports, presentations, letters, applications, e-mails, memorandums, newsletters, policy manuals, etc. They provide a record of the communication and allow a clear and well thought message to be communicated; however, this mean is expensive and time consuming with delayed response time. On the other hand oral communication takes place most commonly and informally all around organizations. This form is also time consuming and difficult to document but is more personal and gives immediate feedback. Non-Verbal communication is another important form of message conveyance by means of using elements and behavior that are not coded into words. It involves body movements and gestures (kinesics behavior), influence of proximity and space on communication (proxemics), tone & quality of voice (paralanguage) and object language that is using clothes, perfumes and furniture to communicate. Communication systems provide formal and informal methods for moving information through an organization so that appropriate decisions can be made (Werther & Davis, 2000). Downward communication system is information that begins at some point in the organization and cascades down the hierarchy to inform and influence, for example, announcements through employee bulletin boards & company newsletters informing the employee of the latest development and direction in which the organization is moving or any new policy being introduced. An upward communication system involves getting information from the employees for example their feedback, suggestion or complaints. Grapevine communication also takes place which at times proves to be quite influential, it arises from social interaction between employees in the organization and is also used as tool to obtain off-the-record feedback from employees. Effective communication has increased importance nowadays as it motivates employees and improves relations with suppliers, helps take accurate and complete decision making, helps control and coordinates business activities. The primary functions of organizational communication is compliance-gaining, leading, motivating, influencing, problem-solving, decision-making, conflict management, negotiating & bargaining. Using effective communication as a tool to boost motivation ensures unity in working towards similar goals, gives employees the ownership of the goals, by asking for their feedback and suggestion they are involved in the decision making, hence putting into effect Hawthorne Theory into effect and increasing productivity. External communication with stakeholders and customers is also extremely important; it is done through meetings with stakeholders such as investors, business alliances, suppliers & dealers and customers, through written letters or through emails. Annual Report is a very effective tool distributed each year to give assessment of the company to its stakeholders. Further Websites are also an effective means of external communication these days. Annual General Meetings are also conducted to communicate company performance and key issues faced as well as future direction is discussed. Numerous theories are related to effective communication and impacts communication in an organization. Leon Festinger (1957) in his theory of cognitive dissonance explains that people get an uncomfortable feeling, a psychological conflict from holding two or more incompatible beliefs simultaneously. Cognitive dissonance is a relatively straightforward social psychology theory that has enjoyed wide acceptance in a variety of disciplines including communication. There is a profound reluctance in corporate environments to acknowledge any kind of negative image or perceptions, which is astonishing, because it's a death sentence to the efficacy of their communication. Dissonance theory applies to all situations involving attitude formation and change. This theory is able to manipulate people into certain behavior. It is especially relevant to decision-making and problem-solving. Uncertainty reduction theory by C.R. Berger and Calabrese (1975) states that uncertainty is unpleasant and therefore motivational; people communicate to reduce it. This can be done through observation (passive strategy), asking others about the person or information (active strategy) or by communicating directly with the person (interactive strategies). Theory of Reasoned Action (Ajzen and Fishbein, 1980) suggests that a person's behavior is determined by his/her intention to perform the behavior and that this intention is, in turn, a function of his/her attitude toward the behavior and his/her subjective norm. Classical rhetoric is a blend of classical systems by Plato, Isocrates and Aristotle. It refers to effective use of language for persuasion. Speaker supports that probability of a message by logical, ethical, and emotional proofs. Speech act theory is built on the foundation laid by Wittgenstein and Austin. To understand language one must understand the speaker’s intention. Since language is intentional behavior, it should be treated like a form of action. Network analysis (social network theory) by Barnes (1954) is the study of how social structure of relationships around a person, group, or organization affects beliefs or behaviors. Network analysis techniques focus on the communication structure of an organization to identify the (formal and informal) communication patterns in an organization or groups within an organization, the communication load as perceived by employees, the communication styles used, and the effectiveness of the information flow. Vodafone is a telecommunications, infotainment and information technology provider headquartered in London, United Kingdom. They are the world’s largest communication company by revenue. Being an effective and efficient company that fully understands the importance of communication; they have managed their internal & external communications very effectively, which has resulted in making Vodafone the world’s largest communication firm. Management at Vodafone has deployed a number of effective communication strategies for a clear, un-biased, effective and open communication environment. Their downstream communication takes places at regular intervals to keep their most important assets ‘the employees’ up to date with the changes taking place in the organization. Management is aiming to create a free communication flow environment and encourages all employees to give their suggestions and feedbacks. For the purpose they have created a Catalyst Intranet Site for internal communication purposes where their employees can post ideas for improvement. To enhance a relaxed work environment their organization structure is an example of a flexible work space shared by all employees and senior management including the CEO. This has enhanced the learning capabilities of employees as well as promoted teamwork and collaboration which have resulted in increased productivity. Further, Vodafone has established an Employee Consultative Council, which is made up of elected employee representatives who meet with senior managers quarterly to discuss issues that affect the workforce. These meetings are attended by senior management as well as the CEO discussing issues such as outsourcing, restructuring and pensions. Vodafone also conducts yearly surveys namely ‘people survey’ and ‘interim pulse survey’ to calculate engagement percentage of employees. These surveys are conducted to have a detailed analysis of the effect top management’s decisions have on employees and their well being. Vodafone is an organization that is willing to hear negative responses and thoughts as well and strives to convert them into positive outlooks. For the purpose they have Employment Tribunals. In 2009-10 (www.vodafone.com) out of total 39 cases, 3 were given verdict in favor of Vodafone, 18 got resolved before reaching the tribunal, 10 were withdrawn and rest were on-going. Regardless of the cases, Vodafone reviews and monitors each case and seek ways to improve their practices wherever they find room for improvement through effective communication.   Vodafone’s internal communications objectives were further improved by the use of Snap tools by Snap Communications. Vodafone was facing a few internal communication issues. Emails were being exploited and used heavily. Majority of the emails were left unread and automatically trashed. This resulted in low response rate for the yearly people survey since survey form sent through emails was ignored and then trashed. Manager had to verbally persuade and keep follow-ups for completion of the survey which was time-consuming. Team meetings were not effectively used for achieving new ideas and moving forward and instead were used to hear housekeeping issues. Vodafone was shifting to adapt a larger intranet which was complex and huge to navigate for employees. They needed shortcuts and search engine to navigate their employees to required information easily. Further, they were aiming to have a centralized feedback collection system from their employees to better manage the flow of upward communication. Snap Shot Tools made a substantial improvement in the effectiveness of Vodafone’s internal communication system. They designed Vodafone’s screen savers to portray business goals, objectives and motivational brand messages, promotions and events; a low cost and attractive way of downward communication. Snap Poll, Pop up staff surveys were implemented allowing employees to give ideas for improvement and business insight. Management could also measure behavioral shift amongst its employee though such polls. Vodafone used the Snap Staff Quiz tool to reinforce knowledge about new promotions and products / projects. They ensured high participation rate by associating interesting prizes and competitions with the same; a positive reinforcement strategy for effective communication. Vodafone in order to reduce the misuse of email came up with the project of launching ‘The Lot’ an online staff magazine. The magazine is used for orientations and farewells of employees, competitions, housekeeping updates (which were previously the hurdles in achieving an effective meeting) and many more. Vodafone states that 'We will communicate openly and transparently with all of our stakeholders within the bounds of commercial confidentiality.' In order to be in direct contact with its customers and engage in verbal communication they have set up numerous stores and call centers across the globe with well-trained and knowledgeable staff to entertain all customer related queries. Vodafone uses its logo, print & media ads, company’s social responsibility and reducing footprint approach as a means of non verbal communication to position itself in the minds of its customers. Further, they have product information and service literature available at all outlets and service centers. Short Messages (SMS) are also used for direct promotion and communication with the customer. Vodafone’s principle is not just to communicate product and service information but they believe in open and transparent communication flow, involving direct and clear details of its services, limitations as well as benefits. Being a good corporate citizen Vodafone translated the government legislation prohibiting use of mobile while driving into more easily understandable text for public usage and awareness. Vodafone took to its tasks to clear misconceptions regarding use of mobile phones and health issues. Their website is easy to access and transparent with annual reports available for download, adhering to their principle of transparent communication to all stakeholders. Vodafone should continue to find ways for effective and open communication with its employees. Yearly floor meetings can also be arranged with an informal format to discuss key issues, recognize hardworking employees and announcing achievement of goals. Yearly appraisal system for managers should be put to work with inputs taken from peers, supervisors and subordinates. Appraisals would allow focused approach towards improving processes and directions. Seminars and workshops can also be used as an effective tool for downward communication. Employee feedback and new insight should be rewarded if translated into something achievable and profitable for the organization. It would increase such events and encourage employees to provide insight in a more focused and responsible manner. Vodafone should involve its customers in product development. Communication should be made in a manner acceptable and comfortable to the customer through any channel they want be it social network sites (which have proven to be good customer service centers nowadays). Vodafone should invest more in training to ensure employees know how to use communication tools to keep customers returning. Vodafone’s focus on effective and efficient communication has made it achieve the highest rank in its industry in terms of revenue. Hence, they should continue to improve upon the practice and make it a core to their business success strategy. References Ajzen and Fishbein 1980, Theory of Planned Behavior / Reasoned Action, viewed 26 July, 2011, Armstrong, Gary & Kotler, Philip 2001, Principles of Marketing, 9th edn, Prentice Hall, USA. Barnes 1954, Network Theory and Analysis, viewed on 26 July, 2011 C.R. Berger and Calabrese 1975, Uncertainty Reduction Theory, viewed 25 July, 2011, Defining Communication Theories, viewed 25 July, 2011, Festinger, Leon 1957, A Theory of Cognitive Dissonance, Stanford University Press. Miller, Joseph Hillis 2001, Speech acts in literature, Stanford University Press. Poulakos, Takis and Poulakos, John 1999, Classical Rhetorical Theory, Houghton Mifflin College Div. Shareholder Communications, viewed 25 July, 2011, Werther, William B. & Davis, Keith 2000, Human Resource and Personnel Management, 5th edn, McGraw-Hill, USA. Wilson, Richard M. S. & Gilligan, Colin. 2001, Strategic Marketing Management: Planning, implementing and control.2nd edn, UK, Butterworth-Heinemann. Read More