Literature Review
Overview
The research question is essential for any study; as it will enable the researcher to focus on a particular subject to do research. The research question for this study is the effect of direct communication between the CEO and the employees when it comes to Job satisfaction. The question allows the researcher to focus on the concept of job satisfaction, internal communication the roles of both the CEO and the employees, and the factors that influence communication enhancement.
Internal communication is the frequency of interaction between the upper level of management and the lower level of management (Bloom, et. al., 2010). It can be the systematic framework of attaining a vision after constructing and complying with the organizational culture (Kagai, Clive and Douglas, 2015). Others define it as the medium that allows the management to prioritize certain activities and identify problems that are barriers to productivity (Svensson and Hambrick, 2015). Internal Communication can also be a tool that defined the work environment for any company, its culture, ethics and code of conduct (Siemens, 2005).
The determination of job satisfaction is by the employee's engagement in the activities of the corporation. It is achievable through understanding and fulfilling the needs of employees (Wang and Hsieh, 2013). It is only possible through interactive sessions where the CEO interacts with its employee's face to face. The practice also builds trust. The act of Internal Corporate Social Responsibility (CSR) is responsible for job satisfaction and employee productivity (Vlachos, Panagopoulos and Rapp, 2013).
Poor internal communication is the cause of discrimination and decrease in productivity (Zukauskas and Vveinhardt, 2010).However, the flow of information in the company will determine the span of the operational life in the firm (Helfat and Campo-Rembado, 2016). For a company to be capable of avoiding the outcomes of communication barriers, it is important for the CEO to practice a formal approach by using emails or office portals and informal methods such as one-on-one sessions (Shipp, 2015).
There are different types of internal communication; it can be a form of contract, which is the medium that exhibits trust, security and protection of employees by employers. (Chen, Chen and Lu, 2013 and Keim, et.al. 2014). It is the right to freedom-of-speech that employees have in a workplace (Balkin, 2014 and Voinea et. al., 2015). Other researchers stated that the type of leadership exhibited by the top management is a form of internal communication because it has the capability of influencing the level of communication present with subordinates (Garcia-Morales, Jimenez-Barrionuevo and Gutierrez- Gutierrez, 2011 and Top, Tarcan, Tekingunduz and Hikmet, 2012).
Job Satisfaction is the level of productivity and the willingness of employees to associate with the organization (Graaf-Zijl, 2012). One of the major roles of the CEO is to be accountable for the activities and conducts of the employees (Men, 2015). There will be further description of other roles in the literature review. The Big Five Traits model is significant when it comes to determination of job satisfaction (Judge, et. al, 2014). According to Herzberg’s theory of motivation shows, that direct communication between to management and other employees contributes to the talent portfolio as it encourages employee engagement and works satisfaction (Ahmed, 2012). The leadership style adopted by the top management has a high significance when it comes to matters of employee engagement and job satisfaction. It is because the desired method allows flexibility, trust, attention to the employee thus enhanced productivity (Adler and Reid, 2008).
Internal Communication – Concept, Significance, and Types
In the modern era, the role of a transparent communication is extremely valuable for the institution of a job satisfaction among employees. An organization that provides a higher tendency of freedom-of-speech to the employees is successful in retaining the talent for a longitudinal period. The job satisfaction, communication, and performance levels are correlated (Tong, Tak and Wong, 2014). As result, organizational leaders such as the Chief Executive Officers (CEOs) consider the core focus of increasing the flow of communication internally is significant. This literature will focus on the concept of job satisfaction, internal communication, role of CEOs within the organization, and the influence of factors such as big five traits, communication enhancement through the hygiene of needs, leadership styles, etc. as the internal factors.
According to Bloom, Garicano, Sadun and Reenen (2010), internal communication is the frequency of interaction between the upper level and lower level management. The flow and tendency of communication among the specified levels define the team strength, mutual understanding, and credibility of an organization towards the employees. Vlachos, Panagopoulos and Rapp (2013) claimed that an expanded and free communication flow between the specified management levels are among the internal Corporate Social Responsibility (CSR) offered and practiced by an organization towards the employees. This CSR activity is directly responsible for modifying the job satisfaction and the momentum of productivity among employees. Wang and Hsieh (2013) stated that the determination of job satisfaction is by the employee engagement towards the corporation. The acquisition of engagement is possible through developing an understanding and fulfilling the needs of employees, which are disclosed through frequent interactive sessions among the upper and lower level management. The interactive sessions should be in an informal manner, such as face-to-face interaction with the CEO in order to build trust and understanding.
While conducting a research in South Sudan, Kagai, Clive and Douglas (2015) claimed that an internal communication is a systematic framework of attaining a vision. The authors explained that the creation and accomplishment of a vision is after constructing, communicating, defining, and complying with the organizational culture. Moreover, internal communication is the medium allows the management for prioritizing and choosing the productivity barriers. The framework of an effective internal communication initiates with employees identifying the problems at lower levels. Subsequently, the upper management and CEOs rank the concerns and pick the battles based on the feasibilities and tendencies. The management can conduct the process of internal communication in both, formal and informal manner (Svensson and Hambrick, 2015).
Discussing the significance, according to Vercic, Vercic and Sriramesh (2012), the internal communication in the discipline of Management Sciences has gained a noticeable popularity over the past decade. Particularly in Europe and the United States of America (USA), the role of internal communication has increased while the upper management should focus on utilizing the tool to retain the talent. In the similar context, Siemens (2005) stated that an internal communication defines the work environment of an organization. The medium is important for stabilizing the work culture and ethical conducts stating the core values of a corporation. Zukauskas and Vveinhardt (2010) affirmed that a poor internal communication is an identity of discrimination and productivity barrier within an organization. The upper management discriminates the employees in terms of role and status, which halts the flow of interaction between the two distinct levels.
On a contrary, the research conducted by Helfat and Campo-Rembado (2016) claimed that the flow of communication internally would determine the span and strength of an operational life cycle in an organization. A frequent and rapid flow of communication between the two levels would increase the transparency in operations. The transparency is important for identifying the flaws in operations and timely rectification before encountering a longitudinal failure. Further, Shipp (2015) stated that a crisis in communication would adversely influence the productivity of an organization. In order to accomplish a long-term vision, it is important for a corporation for bringing the employees on a mutual ground. An enhanced and transparent internal communication is the only medium for aligning the employees at a single level prior to approaching the created vision. Hence, CEOs should practice a formal approach such as electronic mails (E-Mails) on official portals for appreciations and informal approaches such as one-on-one interactive sessions for discussing problems. Utilizing both the mediums suiting the situation would increase the efficiency of an internal communication.
In the modern epoch, an internal communication has numerous forms. Chen, Chen and Lu (2013) and Keim, Landis, Pierce and Earnest (2014) considered the organizational contracts as a medium of communication between the upper level and lower level management. According to the authors in their respective research, a contract is an initial form of the internal communication. Through this medium, organizations commit level of trust, security, and work environment protections to the employees. Moreover, the contract describes the barriers and value given by the CEOs and upper management to the employees in context to the interaction.
On a contrary, Balkin (2014) and Voinea, Busu, Opran and Valdutescu (2015), claimed that a freedom-of-speech owned by the employees is a type of internal communication. In their respective journals, the authors claimed that the organizations should enhance the internal communication process by mitigating the barriers and encouraging a transparent freedom-of-speech significantly. The enhanced interactive process would increase the tendency of job satisfaction among the employees, which is a healthy sign for predicting the periodic productivity.
Lastly, Garcia-Morales, Jimenez-Barrionuevo and Gutierrez- Gutierrez (2011) and Top, Tarcan, Tekingunduz and Hikmet (2012) considered the leadership style as a significant form of internal communication within an organization. In their respective works, the authors claimed that a flexible leadership style demonstrated by the upper level bodies such as CEOs would increase the frequency of interaction throughout the hierarchy. As result, this form would assist in instituting a higher level of employee engagement with a mutual understanding, which is essential for attaining the vision. Authenticating all the authors, each type of internal communication holds significance in regulating a satisfied and transparent work environment depending on the situation.
Job Satisfaction
According to Graaf-Zijl (2012), a job satisfaction refers to the level of productivity and willingness of association with an organization among employees. The author claimed that an organizational contract is a form of non-verbal internal communication situated between an employee and the upper management. However, the role of upper management in this channel of communication is higher than that of employees. The author has observed more than 25,883 job performances in Denmark considering both the genders equally. Concluding the research, the author affirmed that a communicated commitment from the organization plays a pivotal role in extracting an utmost loyalty, representing the tendency of job satisfaction, from the employees. Hence, the commitment or satisfaction is determined by the level of job security provided by the management. An employee offered a long-term and promising contract tends to exhibit a high level of productivity and loyalty, which reduces the efforts of the CEOs and Human Resource (HR) department for retaining the talent.
Eslami and Gharakhani (2012) supported the research of Graaf-Zijl (2012) by expanding the list of essentials required for a higher job satisfaction among employees. The authors defined the concept of job satisfaction as a degree of attachment with an organization. The observation of the attachment is through punctuality, number of absenteeism, and compliance with the ethical guidelines specified in the organizational code of conducts. Moreover, the element of consistency is also important in the research while indicating commitment from employees. Through the application of regression for analysis, the authors claimed that factors such as timely promotions, personal relations, and favor working conditions, indicating the hygiene of needs, play a pivotal role in the institution of job satisfaction among employees. Besides, the authors stated that a higher job satisfaction would radically control the labor turnover for the corporation, which is a significant aspect for consideration in the modern era.
Nonetheless, focused on the intention of communication rather the level of communication, Kucel and Vilalta-Bufi (2013), claimed that a flow of communication with the upper management holds less significance in the modern era than the purpose of communication, particularly in context to the job satisfaction. The research stated that employees demonstrate an adverse response if the communication is done for frequent work assigning. Usually, organizations remove the barrier of interaction between the upper and lower management levels in order to assign routine tasks immensely. As result, employees perceive a sense of deviation towards the commitment made by an organization. The perception of employees results in conflicts of interests and miscommunication with the upper management, which is unhealthy for the sustainability of internal relationships.
Expanding the explanation of Kucel and Vilalta-Bufi (2012), Frenkel, Sanders and Bednall (2013) affirmed that the perception of lower level employees hold a significance while defining the job satisfaction and intentions for quitting. After conducting a survey including 1,533 employees in Australia, the authors claimed that organizations should consider the element of an internal communication or institution of a direct communication channel between the two specified levels as a significant factor in the Strategic Human Resource Management (SHRM). The frequency of interaction between the two levels should be higher but the intentions need a noticeable modification. The upper management should communicate with the lower level employees in order to deal with the grievances and on-the-job issues. The frequency of communication should not be restricted to the delegation of work. Rather, the upper management bodies such as CEOs should discuss work-oriented problems, generate opinions and ideas, and create strategic goals aligning the lower level employees directly into the channel of communication. The practice has a promising claim for extracting an utmost loyalty and job satisfaction from the employees.
In context to the internal communication framework aligning the upper and lower level management, Amendolair (2012) stated that the job satisfaction is strictly dependent on the caring behavior demonstrated by the upper management during interaction. After surveying 5,000 nurses in a medical institution, the author concluded that a caring behavior would increase the loyalty and willingness to perform subliminally among the employees. The employees would require an opportunity for delivering the subliminal commitment made, which requires a timely appreciation from the CEOs for further strengthening. The author also identified barriers that disallow the talent for expressing their opinions and/or grievances towards the job, which the upper management should deal immediately in order to sustain the job satisfaction.
Role of the CEOs
Usually, CEOs are the founders of an organization. As an executive leader within the hierarchy and employees, the CEO is accountable for the activities and conducts routinely. The entity is a core responsibility for improving the quality of communication and the relationship with an employee. Moreover, the influence of CEO has a direct impact on the conducts, compliances, and the work environment collectively. Based on the actions of a CEO, employees tend to adopt an attitude, perception, and enthusiasm towards routine tasks (Men, 2015).
Affirming the above statement further, To, Martin Jr. and Yu (2014) stated that the role of a CEO represents a commitment of an organization towards the employees. An intense communication with the employees would influence the work attitude of an employee, which is important for future talent acquisition. A positive and healthy word-of-mouth from existing employees would trigger an encouraging attitude among the new talents. Besides, the CEO plays a pivotal role while inserting a constructive competition among employees through appreciation. The authors stressed on acquiring an informal medium of communication internally for spreading equality, transparency, positive competition, and healthy work attitude. Note that each element is an essential for a stronger job satisfaction.
Pathak, Hoskisson and Johnson (2013) claimed that the CEO and organization attain parallel success. In the modern era, the entities are not distinct and experience a natural synchronization. The role of a CEO is a Corporate Deoxyribonucleic Acid (DNA) as defined by the authors. Hence, the body should regulate the hierarchy strategically in order to attain a lucrative productivity. It important for a CEO to capable of constructing and personally communicate significant credibility regarding internal reputation of the company’s talent to mold the attitude of employees towards sustainability. Factors such as respect, value, and compassion are imperative when the CEO interacts with the employees throughout the hierarchy.
Yucel, McMillan and Richard (2013) commented on the leadership style of a CEO in context to the flow of communication. The authors stated that a transformational leadership among the CEOs would develop a normative commitment among the employees, which is beneficial for the growth of an organization. The attitude of a CEO is termed as a foundation for the attitudes demonstrated by employees towards work. A healthy attitude is significant for exhibition in order to attain the vision and strategic goals. Moreover, the transformational leadership style is a supportive approach in the sustainability of a teamwork and coordination among the talents. Based on the leadership style, the CEOs can easily motivate and inspire employees to follow the long-term objectives. Hence, it is important that the upper management should adopt and demonstrate the “walking the talk” approach in order to increase the transparency and frequency of communication involving each level of hierarchy. The authors concluded that a transformational leadership style among the CEOs is important for developing a commitment towards a vision.
Further, CEOs are essential mediators in constructing the internal work culture. The internal work culture has a direct influence on the management of external stakeholders such as customers. A satisfied, motivated, and engaged employee would demonstrate the attributes through performances, productivity, and a word-of-mouth. These elements are essential for communicating the corporate vision and Unique Selling Points (USPs) to the customers practically. A satisfied employee would show charisma and determination while dealing with the customers. Such an employee would deal with the criticisms positively and promote the contribution of an organization simultaneously. As result, the customer will perceive an affirmative image of an organization and the products or services offered, demonstrated through the preferences during purchase decision. However, the specified internal work culture attributes are possible to attain if the CEO is encouraging the participation of employees in tasks. The encouragement of participation is present through constant interaction and inspirational leadership style acquired by the CEO (Luo, Kanuri and Andrews, 2013).
Holland, Allen and Cooper (2013) focused on the role of CEO and the tendency of burnout among employees, which is present in every organization. By definition, burnout is a degree of stress acquired by an employee while serving the organization with frequently assigned tasks and minimal interaction with the decision-making hierarchy. The authors claimed that a CEO should demonstrate an active response towards the grievances and concerns of employees in order to control the conflicts of interests, a prominent sign of high burnout. Moreover, employees should have a platform to raise their voices directly at the managerial level in order to gain immediate response. While defining the context, the authors claimed that a formal medium of internal communication is effective for documenting and discussing the issues officially. Affirming with the opening commentary of Luo, Kanuri and Andrews (2013), the authors of the study claimed that the defined platform is an important mediator increasing the flow of communication between the employees and a CEO of an organization.
Big Five Traits and Job Satisfaction
The Big Five Traits or Five Factor Model (FFM) has a significant value while defining the job satisfaction of an individual. The core consideration of FFM is the variation in the need of communication among the individuals determining the level of job satisfaction and/or employee engagement. Discussing, Zhai et.al (2013) claimed that employees having a trait of extraversion has a high need of communication. Such individuals are social and attention oriented at the workplace. As result, individuals with an extraversion trait indulge in a workplace with an intense cultural diversity while compared to neuroticism. In context to the neuroticism, the employees are naturally burnout and lack emotional intelligence (EI). Hence, CEOs should interact with such individuals more than extroversion in order to build a self-confidence and engagement towards the work. Discussing the individuals having openness to experience, the individuals require minimal interaction with the CEOs. Such employees are self-sufficient to work and values self-appreciation more. However, CEOs should attempt of injecting freedom-of-speech among individuals with a trait of agreeableness. Since the attitude of such employees is submissive, CEOs should encourage them to raise their voices and opinions in order to value the existence.
Individuals with a high degree of conscientiousness have more focus towards work. The employees having a trait of conscientiousness are mostly the leaders at lower levels in order coordinate peers towards success. The conclusion is that, it is important for CEOs to allocate their interactive focus on individuals or employees having a protected or passive attitude. An enthusiastic and competitive employee would self-manage to interact with the upper management through effective performances. It is important for the leaders to maintain a balance and encourage overall hierarchical participation in order to spread the job satisfaction throughout (Judge, Simon, Hurst and Kelley, 2014).
Hygiene of Needs/Factors and Job Satisfaction
The Herzberg’s theory of motivation has heavily contributed in regulating the talent portfolio of an organization with an utmost engagement and satisfaction at work. Direct communication between a CEO, representing the upper level management, and employees, representing the lower level management, is an exchange of value and respect provided by an organization to the contribution of talent portfolio. Affirming with the research, a transparent and easy flow of communication between the two levels of a management is essential for developing self-esteem among the employees with a poor and moderate performance. With the acquisition of self-esteem, which is a prominent hygiene factor for employees, employees tend to perform competitively in order to sustain the element. Moreover, the competitive and consistent performances from the employees increase the level of job satisfaction automatically. The author concluded that such as transformation in employee engagement is contagious and adaptable throughout the hierarchy (Ahmed, 2012).
A research conducted by Ealias and George (2012) affirmed that the acquisition of self-esteem is important for demonstrating EI. The EI assists an employee while making decisions and selecting appropriate approaches towards the tasks. Hence, the CEOs should interact with the employees for increasing the tendencies of self-awareness and the social awareness, which are beneficial for enhancing the job satisfaction and employee engagement towards work.
Leadership Styles and Job Satisfaction
The leadership style adopted by the upper level management holds significance for determining the employee engagement and job satisfaction. An appropriate leadership style provides a desired flexibility, availability, trust, and attention to an employee in order to perform productively (Adler and Reid, 2008).
Previously, Yucel, McMillan and Richard (2013) stressed on the adoption of transformational leadership style for increasing the frequency of interaction with the employees. However, Men and Stacks (2014) focused on the authentic leadership approach stating the style as the most feasible in the modern era organizational communication. The authors argued that an authentic leadership tactic is significant for nurturing the hierarchy by encouraging the transparency in interaction and contribution. CEOs practicing authentic leadership while interacting with the talents will ensure a healthy relationship in the end. It spreads mutual control, trust, and commitment towards vision throughout the hierarchy, which are necessary pillars for constructing and instituting a higher level of job satisfaction.
Concluding the literature, a job satisfaction for an employee is heavily dependent on the frequency of communication with the upper level management such CEOs. A proper platform and medium of interaction is important in the organization for employees to raise their voices freely and directly. After reviewing numerous research published in the past, the observation is that a direct communication between the employees and CEOs has a positive influence on the job satisfaction.
What we do not know
The aspect of the study has not covered the different approaches the CEO can implement to encourage job satisfaction and promote employee engagement. The section is highly relevant because if a company wishes to change its methods of administration in the hopes of increasing productivity, then it requires an explanation of the methods or techniques it can apply to be capable of achieving such a goal.
The study has also not looked into the challenges a company may face when it comes to the matters of direct communication. The paper is on the importance of direct communication to enhance job satisfaction. However, the paper has not cited the challenges or problems it faces or may face if it does not employ direct communication.
The whole report is about the importance of communication but with it there come certain challenges with its implementation and when dealing with the communication gaps. The paper should research on this aspect to know the advantages and disadvantages of the approaches to dealing with implementation and communication gaps.
The paper should also find a way to analyse the variable of job satisfaction so that a company can be able to measure it. It will assist a firm to know if its employees are satisfied and if not find ways to satisfy their needs. In addition, it will also help to evaluate performance and determine why there is a decrease in employee productivity or increase in staff turnover.
Reasons why job satisfaction is an issue
The issue of job satisfaction has become a trend in the business environment. The reason why most researchers have reached to this conclusion is that of the increase in employee turnover and the demand for employees for better working conditions and a fair work-life balance schedule.
Some of the factors that lead to poor job satisfaction are such as harsh working conditions meaning that the working environment is not safe and there are matters of diversity that tends to cause many conflicts. It also deals with the working schedule where an employee works more hours than he or she must do this leads to burnout. Another factor that causes turnover is the tight deadlines and a significant amount of workload. In addition, another reason is the increase in monotony that the company does not provide incentive and bonuses for a well-done job.
Conclusion
A company is capable of increasing its level of job satisfaction by taking into consideration the element of communication. Communication is capable of increasing job satisfaction because regular communication enables the employees to perform their best and the appraisal of the CEO will make the worker more engaged and active when it comes to performing business operations leading to job satisfaction and the overall success of the firm.
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