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EFFECTIVE COMMUNICATION AND ITS IMPACTS ON EMPLOYEE’S JOB SATISFACTION: THE CASE STUDY OF FINCA TANZANIA DAR ES SALAAM CITY
SAMSON GESOGWE
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF HUMAN RESOURCE MANAGEMENT OF THE OPEN UNIVERSITY OF TANZANIA
2013
CERTIFICATION
The undersigned certifies that they have read and hereby recommends for acceptance by The Open University of Tanzania a dissertation titled “Effective Communication and Its Impacts on Employee’s Job Satisfaction Case Study on FINCA Tanzania Dar Es Salaam City” in partial fulfillment of the requirements for the degree of Master in Human Resources Management of The Open University of Tanzania.
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Dr. Chacha Matoka
Supervisor
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Date
DECLARATION
I, Samson Gesogwe, declare that this dissertation is my own original work and that it has not been presented and will not be presented to any other University for a similar or any other degree award.
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Signature
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Date
COPYRIGHT
No part of this dissertation may be reproduced, stored in any retrieval system, or transmitted in any form or by any means without prior written permission of the author or the Open University of Tanzania.
DEDICATION
I dedicated this thesis to my beloved wife; Jennifer Simon Mwakimi, my sons; Prince and Daniel, my daughter; Jolyn Samson and the Open University of Tanzania Academic Staff for their warm and lovely assistance during the course of my study at The Open University of Tanzania.
ACKNOWLEDGEMENTS
I would like to thank God Almighty for helping me to finish master degree program and my family who played great role in this study for their continuous support and encouragement.
My special thanks go to my supervisor Dr. Chacha Matoka for his support, direction and challenges which made me to reach this stage. I appreciate and acknowledge all support and contributions to all academic staff for their academic assistance during the course of my study.
In addition, I want to extend my thanks to all FINCA staff for supporting me to complete my studies.
Finally also thank all my respondents who filled questionnaires and accepted to be interviewed for their cooperation during data collection. I thank my fellow students, friends and all other individuals who supported and encouraged me throughout my academic journey at the Open University of Tanzania.
ABSTRACT
Ineffective communication, lack of communication or inadequate communication causing employee’s job dissatisfaction. Samples of 60 respondents were used and these were randomly obtained from targeted areas. The targeted populations of the study were FINCA Tanzania 50 low level employees and 10 Supervisors and above. The researcher used sampling techniques, which were simple random, stratified and systematic sampling. Thus, individuals were randomly selected from a list of the population and every single individual had an equal chance of selection. The data were collected through observation, questionnaires, interview and documentation, and analyzed by using Microsoft-Excel. The study indicates that a half of the employees saw an improvement in term of communication in year 2012. Meanwhile 76% need of an extra effort for innovative effective communication. Even if employees do not direct agree with the communication channels in FINCA Tanzania, but they see an impact of effective communication toward employee job satisfaction. This implies that the greatest impact on employee job satisfaction is the ability to use proper channels and communicate effectively message with others in the company. By improving communications skills at work will increase employee’s ability to achieve success. It was clearly observed that the FINCA Tanzania should establish possible innovative constructive communication feedback that could enhance employee’s job satisfaction. Also, FINCA should conduct an employee satisfaction survey and use the survey results to identify the areas where employees are most and least satisfied. In additional, the company should engage employees and let them know what the company doing. Finally, the company should address job security.
TABLE OF CONTENTS
CERTIFICATION ii
DECLARATION iii
COPYRIGHT iv
DEDICATION v
ACKNOWLEDGEMENTS vi
ABSTRACT vii
LIST OF TABLES xi
LIST OF FIGURES xii
LIST OF ABBREVIATIONS AND ACRONYMS xiii
CHAPTER ONE 1
1.0 INTRODUCTION 1
1.1 Background of the Problem 1
1.2 Statement of the Problem 2
1.3 General Objective 4
1.4 Specific Objectives 4
1.5 Research Questions 4
1.6 Significance of the Study 5
1.7 Limitations of the Study 6
1.8 Delimitations of the Study 6
CHAPTER TWO 7
2.0 LITERATURE REVIEW 7
2.1 Operational Definitions of Key Terms 7
2.2 Critical Theoretical Review 8
2.3 General Discussion of the Topic 11
2.4 Empirical Study 17
2.5 Research Gap 20
2.6 Conceptual Framework 22
CHAPTER THREE 28
3.0 RESEARCH METHODOLOGY 28
3.1 Research Paradigm 28
3.2 Research Design 28
3.3 Data Collection 31
3.4 Data Analysis 35
3.5 Validity of Data 35
3.6 Reliability of Data 36
3.7 Ethical Issues 36
3.8 Establishing Rapport 36
CHAPTER FOUR 37
4.0 ANALYSIS OF DATA AND DISCUSSION OF FINDINGS 37
4.1 Communication Channels 40
4.2 The Content of Messages Delivered 41
4.3 Communication Feedback 41
4.4 Analysis and Discussion 41
CHAPTER FIVE 51
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION 51
5.1 Introduction 51
5.2 Summary of the Findings 51
5.3 Implications of the Results 52
5.4 Conclusions 55
5.5 Recommendations 56
5.6 Limitations of the Study 57
5.7 Further Studies 58
REFERENCES 59
APPENDICES 69
LIST OF TABLES
Table 2.1: Definitions of Communication 10
Table 3. 1: Sample of Respondents 29
Table 3.2: Sampling Analysis 31
Table 4.1: Sex Distribution - 46 Respondents 37
Table 4.2: Effect Communication Towards Job Satisfaction 39
Table 4.3: Employees response on Effective Communication 40
LIST OF FIGURES
Figure 2.1: The Interaction between Independent Variables and Dependent Variables 23
Figure 4.1: Summary of Overall Job Satisfaction 38
LIST OF ABBREVIATIONS AND ACRONYMS
FINCA Foundation for International Community Assistance
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CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Problem
Communication has been seen as an activity of conveying information among two or more people. Effective communication occurs when what is in the mind of the sender is correctly understood and acted upon by the receiver.
The problem to be addressed in this study was the lack of effective communication and it impact on employee’s job satisfaction in working environment at FINCA Tanzania. Sharma (2006) reported that attrition rate is one of the major problems in the organizational environment due to ineffective of communication and lack of employee’s job satisfaction which cause when the managers are not in regular touch with their employees and complex the organizational structure. Also, In 2000, statistics from the Society for Human Resource Management (SHRM) 2000 Retention Practices Survey revealed a turnover rate of 21 to 26% in organizations due to lack of communication and employee’s job satisfaction.
Voluntary turnover increased across the board for 2003 to 2004 from 19 to 20% (NOBSCOT Corporation, 2006). Twenty-one percent of respondents reported poor communication and unsatisfied conditions of job as major reasons for the problem of turnover rate. Smaller organizations experienced a national turnover rate of 17% in the United States (SHRM, 2000). If individuals are not satisfied with their jobs and communications are not effective, problems often arise in effectiveness and satisfaction throughout the organization (Herzberg, 1974).
Kreps (1990) states that, “Effective communication in an organization serves to establish managerial control, provide workers with job instruction, and enable managers gather information for planning.” It shows that communication is involved in all types of managerial functions. Mangers and communication specialists first develop strategies to achieve goals, construct relevant massages and then transmit through different channels for conversations with employees and workers. Poor planning may be the result of poor communication and it always results in the failure of the accomplishment of the goals which becomes the reason for dissatisfaction at workplace. Similarly, if employees are not told about organizational strategies and their responsibilities, they cannot perform effectively.
Nonverbal immediacy from the supervisor helps to increase interpersonal involvement with their subordinates impacting employee’s job satisfaction. The manner in which supervisors communicate their subordinates may be more important than the verbal content (Teven, p.156). Effective communication has been shown to be related to interpersonal and informational justice perceptions (Kernan & Hanges, 2002). The quality of communication by an organization or manager can improve justice perceptions by improving employee perceptions of manager trustworthiness and also by reducing feelings of uncertainty (Kernan & Hanges, 2002). It is important that the information provided be accurate, timely, and helpful in order for the impact on justice perceptions to be positive (Schweiger & DeNisi, 1991).
1.2 Statement of the Problem
In the 2012 FINCA Tanzania Employee Climate Survey, the results shows that only 46.4% received meaningful (helpful/useful) feedback from higher authority and 47.5% of its employees had clearly communication on common goal of the organization. Thus, more than 50% of its employees hadn’t received expected feedback from higher authority and clear communication on common goal of the organization.
Employees want open communication channels and a system of common understanding. Communication behavior such as facial expression, eye contact, vocal expression, and body movement is crucial to the superior-subordinate relationship (Hyo-Sook 2005). In FINCA Tanzania, employees do not understand the existing communication system and the effectiveness of these existing communication systems. Thus, employees have to be well equipped with the communication system within the organization so as know how they could get back expected feedback and clear communication on the common goals of the organization.
Ineffective communication, lack of communication or inadequate communication causing disturbance, employee turnover, disorder, failure to achieve goals, and damage to the image of the organization (Chang, 1993). Another study illustrates that lack of effective communication lead to; misunderstandings, lack of information, decrease in employees' performance, and decrease in company's turnover in organizations and on the other hand lead to incompetence, poor teamwork and disrespect (Maxfield et al., 2005).
Also lack of communication effectiveness and employee’s job satisfaction in organizations led to high stress, monotony, poor fit between employees and the job, inadequate training (Missouri Small Business Development, 2002). On the other hand, lack of employee’s job satisfaction also lead to lower productivity, higher absenteeism, increased work errors, poor judgment, defensive behavior, hostility, reduction in creativity, and job turnover.
Therefore, FINCA Tanzania employees might have been losing job satisfaction due to the fact that do not get feedback on issues send to head office. This study therefore was solely engaged itself in investigating effective communication and its effect on employee’s job satisfaction.
1.3 General Objective
The main objective of this study was to examine the Effective Communication and its impacts on Employee’s Job Satisfaction; Case Study on FINCA Tanzania.
1.4 Specific Objectives
This study had the following specific objectives:
(i) To identify how the communication channels affect FINCA Tanzania employee’s job satisfaction.
(ii) To examine the content of messages delivered and its impact to employee’s job satisfaction.
(iii) To examine the impact of feedback to employee’s job satisfaction in FINCA Tanzania.
1.5 Research Questions
Specifically, the study intended to answer the following questions:
(i) How do communication channels affect FINCA Tanzania employee’s job satisfaction?
(ii) How does the content of message delivered bring an impact to employee’s job satisfaction?
(iii) How does feedback bring an impact to employee’s job satisfaction in FINCA Tanzania?
1.6 Significance of the Study
The study helped the organization to provide effective communication in an organization so that to establish managerial control, provide workers with job instruction and enable managers gather information for planning. Since communication is involved in all types of managerial functions. It helped the managers first develop strategies to achieve goals, construct relevant massages and then transmit through different channels for conversations with employees and workers.
Nevertheless, the study provided better relationships within an organization, to transmit information, to have trust on and cooperation with each other, to understand and co-ordinate the work, to improve communication climate and learning, and hence to increase overall workplace satisfaction and also an individual’s employee’s job satisfaction. (Hassan and Bahtiar, 2009).
The study welcomed addition to the vast field of resources based on personnel administration, particularly in the field of employee’s job satisfaction. The study pointed out the need of effective communication into upgrading the employee’s level of satisfaction as well as to permeate organizational commitment among employees. Moreover, the study helped prospective researchers by providing them a concrete study regarding the impacts on employees' commitment and satisfaction
1.7 Limitations of the Study
One limitation of this study was that participants predicted its nature and biased the results. Subjects recognized the primary and secondary communication styles used in an organization. Also, the short time period of survey administration had negative effect on the study. Time was a negative factor because attitudes and conditions of the work environment can change quickly. Because of the time constraints, external factors, such as variables, were skewed. The last limitation in the study was the willingness of individuals in the organization to respond honestly.
1.8 Delimitations of the Study
The geographical area covered by the study was contrived to study in FINCA. The reference period of this study was limited from August 2012 to July 2013. Observation and investigation were done primarily at FINCA Tanzania in Dar es Salaam Tanzania whereby individual employees were involved.
CHAPTER TWO
2.0 LITERATURE REVIEW
This chapter defined all the concepts which used in this study, critical theoretical review, and general discussion of the topic, empirical study, research gap and conceptual framework.
2.1 Operational Definitions of Key Terms
In this part, key terms were operationally defined as used in this study of which included effective communication and job satisfaction.
2.1.1 Effective Communication
Effective communication is a process through which the sender conveys a message that the receiver readily receives and understands. It is a two-way process instead of a one-way process (Chang, 1993). Effective communication extends the concept to require that transmitted content is received and understood by someone in the way it was intended. The goals of effective communication include creating a common perception, changing behaviors and acquiring information.