IMPACT OF UP AND DOWN COMMUNICATION ON ORGANIZATIONAL PERFORMANCE

INTRODUCTION

1.0Introduction

This chapter presents the background to the study, statement of the problem, purpose of the study, research objectives, and research questions, scope of the study and significance of the study.

1.1Background to the Study

The   rise   of   globalization   developments   in   political,   social,   economic,   technological   areas   crucially affects   communal   and   organizational   lives   of   individuals   in   the   society.   In   parallel   with   these   developments organization      management       are  obliged    to  develop    new    management       techniques    to  struggle   even    harder competition  conditions.  These  modern  management  techniques  to  a  large  extent  aim  to  raise  employees‟  performance  by  using   the  power  of   communication   (Erogluer,  2011). The beginning   of the universe was the beginning      of   communications.       There    was   no   beginning     which    was    devoid    of communication.       Thus, Communication facilitates transformation of the human society. Communication is a many-sided phenomenon that means different things to different people. It is a process of a means of access to the mind or thought of another.   According   to   Wilson   (1997),   communication   can   also   be   seen   as   a   reduction   of   uncertainty,   thus, communication is an exchange of meanings

Accordingly,   for   organization   and   human   as   a   social   being,   communication   has   a   vital   importance, whether pros or cons are an inseparable piece of life and also it has an important role on all activities aimed at gaining   organizational   objectives (Ada   et   al.,   2008).

Good remuneration has been found, over the years to be one of the policies the organization can adopt to increase workers performance and thereby increase the organizations productivity. Also, with the present global economic trend, most employers of labour have realized the fact that for their organizations to compete favorably, the performance of their employees goes a long way in determining the success of the organization. On the other hand, performance of employees in any organization is vital, not only for the growth of the organization, but also for the growth of individual employees (Meyer and Peng, 2006).

According to cole, (2008) proper motivation of employee enhances performance and of organization and increases competitiveness, most of the global companies in United States invest billions of dollar on ensuring proper employee motivation. Through pay rise and other facilities. Globally, successful running of organizations is very challenging today. Employee performance and revenue growth are challenged by internal and external operating environment factors.

To survive in a profitable way in the highly challenging and competitive global market economy, all the factors of production like machines, materials and labour should be managed in an impressive way. Among the factors of production the human resource constitutes the biggest challenge, unlike other inputs, employee management calls for accomplished handling of thoughts, feelings and emotions to protect highest performers. High performance is a long-term benefit of employee motivation.

Workers tend to perform more effectively if their wages are related to performance which is not based on personal bias or prejudice, but on objective evaluation of an employee’s merit. Though several techniques of measuring job performance have been developed, in general, the specific technique chosen varies with the type of work. For achieving prosperity, organization designs different strategies to compete with their rivals and for increasing the performance of the organizations. Very few organizations believe that the human personnel and employees of any organization are its main assets which can lead them to success or if not focused well, to decline in most African countries including Nigeria, interest in effective use of rewards to influence workers performance.

Nickols (2003), and Fort and Voltero (2004), identify factors that are closely related and affect provider‘s performance in the workplace. They include: clear goals and job expectations, suitable repertoire, immediate feedback, skills to perform, knowledge of the organizational structure, functional feedback system, sound metal models, sufficient motivation through self satisfaction and incentives. Job performance problems often start small and develop slowly. In the early stages there may be just a few isolated incidents and these may easily be overlooked. It is important to deal with a job performance problem in the early stages while the issues are small. Performance issues can deteriorate to the point of crisis if the early warning signals are not acknowledged and dealt with. The performance of one employee can affect the productivity of other employees. Poor job performance can place the employee, co-workers and the organization at risk. As a matter of fact most managers in organizations face with a crucial question of what factors influence employee performance and there is inadequate empirical information that might guide their efforts in enhancing overall job performance among employees (Salleh et al., 2011).

Various studies and research have also proven that delighted employees give out their best in the workplace. However, many employers and managers do not value the impact of motivation on organizational performance. As such, in trying to increase performance and thus productivity, they ignore motivation and resort to other factors such as employee competencies, process efficiency and effectiveness, technology deployment, innovation, organizational learning, and others, (Peng et al,2006).

Century Bottling Company is a soda manufacturing industry located in Namanve industrial area in Mukono district. They make supplies of their products across the country and make sales as well. It employs over 2,000 people with its entities.

The top management of century bottling company has invested billion to ensure efficiency in performance of the organization by enhancing productivity and quality of the products however the organization is still faced with numerous challenges coupled with challenges including loss of market share and increased complaints by customers, its against that this study intends to investigate in to the impact of up and down communication on organizational performance, with specific reference to century bottling company ltd.

1.2 Statement of the Problem

According to Cole (2002) due to increasing competitive institutional arrangement, there is a call for highly committed human resource when looking forward to attain a strong competitive organization.

Despite of the massive investment at century bottling to increase the performance of the organization so that it’s competitive in terms of high sales, and profitability, Century Bottling Company is faced with numerous competitions like Rihama cola, Fizzy and Crown beverages, it’s against this background, that this study sets out to investigate into the impact of employee motivation on organizational performance as one of the factors affecting organizational performance.

1.3 Purpose of the Study

The purpose of the study is to examine the impact of up and down communication on organizational performance, using the Case Study of Century Bottling Company Limited.

1.4 Research Objectives

1. To establish the benefits of up and down communication at Century Bottling, Company Limited.
2. To examine the other factors that affecting the performance of an organization in Century Bottling Company Limited?

• To establish the relationship between communication and organizational performance.

1.5 Research Questions

1. What are the benefits of up and down communication at Century Bottling, Company Limited?
2. What is the other factors that affecting the performance of an organization in Century Bottling Company Limited?

• What is the relationship between communication and organizational performance?

1.6   Scope of the Study

1.6.1 Content Scope

The study will focus on, benefits of up and down communication,  the other factors that affecting the performance of an organization and  the relationship between communication and organizational performance.

1.6.2 Area Scope

The study will be conducted at the Namanve industrial area, a Plant of Century Bottling
Company Limited located at 4042 Jinja road Kampala (u).

1.6.3 Time Scope

The study will cover literature from 2000 to 2015.

1.7   Significance of the Study

1. i) The research findings may help the management of Century Bottling Company Limited to understand further benefits of up and down communication on employee performance.
2. ii) The study findings will help management of Century Bottling Company Limited to
   come up factors that affecting the performance of an organization in Century Bottling Company Limited

iii) The study findings may be helpful to many managers and leaders in our society to identify the things that they need to do in order to successfully improve on the performance of employees.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter discusses what different scholars have written about impact of up and down communication on organizational performance.

2.1 Benefits of up and down communication

Herzberg (1987) argued that job enrichment is required for intrinsic motivation, and that it is a continuous management process. According to Herzberg (1987), the job should have sufficient challenge to utilize the full ability of the employee. Employees who demonstrate increasing levels of ability should be given increasing levels of responsibility. If a job cannot be designed to use an employee’s full abilities, then the firm should consider automating the task or replacing the employee with one who has a lower level of skill. If a person cannot be fully utilized, then there will be a motivation problem (Herzberg, 1987).

Other studies and experiences support Herzberg in studies that have shown that employees who experience higher POS in the form of open communication are led to increased performance, positive attitude, and workplace happiness (Anchor, 2009; Froman, 2010). Neves & Eisenberger (2012) found that the causal link between managerial communication and employee performance to be two way. When managers openly communicate with employees and provide for upward and downward lines of communication, employees felt more support from the organization and managers, then increased performance and efforts to benefit the organization. This was consistent with previous studies showing that management communication is an important antecedent of job satisfaction and performance ( Eisenberger & Stinglhamber, 2011).

Satisfactory and effective communication contributes to an organization’s success, employee attitude and morale, and customer satisfaction (Neves & Eisenberger, 2012). Communication is a means to improve commitment and to stimulate employees to achieve organizational goals (Tsai, Chuang & Hsieh, 2009). Organizations and managers that openly share information and encourage bi-directional communication have a higher rate of employee job satisfaction (Neves & Eisenberger, 2012) and found that employees enjoyed improved sense of well-being, happiness and job satisfaction (Anchor, 2009).

In their 2009 study, Tsai, Chuang and Hsieh found that employees do not always realize the importance of communication to organizational goals, or know how to establish and maintain healthy communication systems. It is the responsibility of managers to improve communication in the workplace, train employees in communication skills, and encourage informal communication (Tsai, Chuang & Hsieh, 2009). It was found that job satisfaction was positively impacted by effective communication from supervisors regarding expectations and feedback on job performance (Tsai, Chuang & Hsieh, 2009).

Shawn Anchor (2009) states that people who put their heads down and wait for work to bring happiness are at a huge disadvantage; but those who capitalize on it come out ahead. If we learn to be happy and have a positive attitude, we may be more successful than if we expect happiness solely as a result of hard work (Anchor, 2009). Of course, this does not mean that we sit around being happy without working. It just means that our work will yield more success if we develop a positive attitude.

When Anchor (2009) is presenting to various organizations about the Happiness Advantage, he tells them to remember the number 2.9013. He says this is the number that Marcial Losado arrived at after extensive mathematical modeling of negative and positive interactions (Anchor, 2009). Losado (2009) calculated that it took about three positive comments or experiences to counteract one negative. When organizations instructed team leaders to give more positive feedback and encourage more positive interactions, the positive ratio increased from 1.15 to 3.56 (Losado, 2009).

2.2 Other factors that affect performance in an organization

Performance is often defined simply in output terms – the achievement of quantified objectives. But performance is a matter not only of what people achieve but how they achieve it. The Oxford English Dictionary confirms this by including the phrase carrying out‘ in its definition of performance: The accomplishment, execution, carrying out, working out of anything ordered or undertaken. High performance results from appropriate behavior, especially discretionary behavior and the effective use of the required knowledge, skills and competencies. Performance management must examine how results are attained because this provides the information necessary to consider what needs to be done to improve those results (Armstrong, 2006). In a knowledge economy, organizations rely heavily on their employees to survive. They can only win a competitive advantage through their people (Alo, 1999). The product or service of any organization is provided to customers with the involvement of people. However, as Mathis et al., (1997) pointed out, people are not only essential resources that an organization has but also problematic ones to manage. This makes human resource management a key ingredient in fostering organizational competitiveness and the ability to fulfill its mission. Managing employee performance is an integral part of human resource management that all managers and rating officials perform throughout the year. The work of Chris (2011) testifies the fact that performance management is important as managing financial resources and program outcomes because employee performance or the lack thereof has a profound effect on both the financial and program components of any organization.

Although many factors contribute to productivity, job performance is viewed to be the most influential one. One of the indicators in enhancing and improving the service industry is job performance. Job performance refers to the behaviors that are expected in the line of the organizations‘goals and the purpose under control of individual employees (Campbell et al., 1993). Performance measurement systems are described as the overall set of metrics used to quantify both the efficiency and effectiveness of action (Shepherd and Gunter, 2006).

Wilmot (2007), asserts that people must have in mind a clear picture of any end or goal they are to achieve. If this picture does not exist, they cannot tell if they are making progress or when they have completed the task or assignment, let alone if it has been completed properly. Knight (2008), agrees and adds that keeping the end in view has been sage advice for almost two thousand years. The time a manager spends in developing, communicating and clarifying the goals or ends to be achieved is time well spent.

Fred (2003), noted that figuring out what to do in a particular situation require knowledge of the structure of that situation. People must understand the elements that make up the situation, how those elements are connected to one another and the relationships that exist between and among these elements. Sara (2004), agreed and added that employees can only perform to the best of their knowledge and therefore those with good knowledge about the structures will perform better.

Gerhart (2004), wrote that without information about actual conditions in relation to intended goals or results, no one can perform to standard. Such information is known as feedback. It informs progress, enables corrections and, eventually, signals attainment of the objective. For most hard tasks (that is, tasks involving tangible products or other immediate and readily measured effects of one’s actions), feedback is generally available without much effort on any-one’s part. We are aware of our actions and their effects. But, for soft tasks (that is, tasks where the effects of our actions are not tangible, immediate nor readily measured), the feedback loop is essentially open. This is especially true when the main effects of a person’s actions are the reactions of other people. Therefore, lack of good feedback leads to lack of correction and hence poor performance.

Sara (2004), asserts that absent feedback, people have no choice except to act in ways that are consistent with internally-held views or mental models of what is appropriate or what should work instead of externally-based information about what is and isn’t actually working. For this reason, it is worthwhile spending time working with people to identify the mental models they currently use in situations where feedback isn’t readily available. In some cases, this will surface mental models that are inappropriate or inadequate. In other cases, it might surface mental models that are superior to those held by most people. This means that employee performance does not only depend on the information provided to the employees but also to their mental models.

In his studies on performance, (Rynes, 2004) found out that performance might not occur if the environmental conditions are so unsuitable as to present insurmountable barriers to performance. He writes that most of us can successfully drive our cars on windy days but none of us can drive through a tornado. In less dramatic terms, missing tools and equipment, competing priorities, a repressive climate and other factors can interfere with our ability to perform as expected, regardless of our motives or our repertoire, the presence or absence of feedback and the quality of the mental models that guide our thinking and actions. In short, the task environment must support the desired performance; at the very least, it must be manageable.

Samuel (2010), was of the view that technology is primary tool that can be used to boost employee performance. Ha writes that improvement in technology accompanied by training of the employees can significantly increase their levels of performance because it reduces the stress that comes with doing the job manually. An organization which is in relatively stable conditions both internally and externally is able to implement its pay policy in relative ease yet an organization which is undergoing massive will probably find that it has to completely restructure its way system due to market pressure (Cole 1997).

Scott (2000), defined ability as the capacity to learn and perform the tasks required.  He revealed that a good mixture of ability, training and experience is the root cause best performances. He asserts that best performing employees at least have two of the three factors. Cole (1997), suggests that its important to recognize the training fact since sometimes trained employees are asked to meet needs which ought to be met or to be dealt with in some other way that is replacing machinery. The main purpose of training in an organization is to equip the employees within skills to enable them deliver well their jobs and this keeps employees updated in the modern way of doing things (Hippo, 2002).

Berman (2001), wrote that as much as an employer may not want to be affected by the personal life of his employees, personal problems can sometimes affect employee performance. Managers need to be sensitive to employee personal problems, and be prepared to discuss the issues with employees when necessary. If an employee requires time off to deal with a personal problem, then granting that time off will help to show all of your employees that the company values its employees.

Fear is a great motivator for very short time, that is why a lot of yelling from the boss will not seem to light a spark under employees for a very long time. In turn, this implies that some employees are threatened from work hence having a lot of fear that make them not to effectively perform their required tasks at the required time (Gary, 2003).

This means lack of long term employment in an organization. When there is a change in the organization, for example change in management– where the employees fear for their job, in terms of structure and job competition, workers will resist as they are not sure of the future thus bringing about poor industrial relations. Furthermore, this is the fear of losing one’s job (Subbakarishna, 1998). This therefore is concerned with the potential loss of employment and uncertainty regarding the job and carrier issues. This improves ones level of responsibility and promotional opportunities.

Bio-data is yet another factor explaining variation in individual performance. For example, older employees are often more reluctant to engage in new training and tend to prefer collaborative versus competitive tasks compared with their younger counterparts. According to Kanfer and Ackerman (2004), life-span theorists proposed that person versus environment transactions not only determine the direction, intensity and persistence of action but also help shape the person versus situation context in which motivation takes place. Kanfer and Ackerman (2004) suggest that age is likely to be positively associated with increased preferences for physical security, job security and salary.

Plans provide a sense of directions by focusing the attention on specific targets and direct employee efforts towards important outcomes (Draft,1991) through goal setting and planning, managers learn what the organization is trying to accomplish. They can make decisions to ensure that internal policy, roles performance structure, products and expenditures will be made in accordance with desired outcomes.

Koontz (2002), inclines that some employees may not be able to cope with the changes that occur at work. Equipments may change or the type of work can change in an organization. This can make the employee unable to adapt. Adequate training is necessary to help the employee to cope and be able to perform better. The type of work in an organization may also involve a sense of compassion. This is especially true when the organization deals with people. People who tend to be aggressive by nature may find conflicts in the situation. Good performance may be affected, not because of lack of ability or interest, but by conflict of values (Stoner et al , 2002).

Cole (1997), revealed that some people are highly sensitive to the environment and the climate. These should be conducive for work; otherwise even good performers can also become poor performers. The work situation and environment should be adequately modified to help the employees have better working conditions. Work ethics is very important for the performance of an employee. Good morals and ethics can help a person to improve their performance. Otherwise, it can lead to poor performance and can also demotivate the other employees (Martin, 2002).

This is the policy of employees in an organization to perform tasks on a group basis. In this case it helps employees to share different skills for example those who are more skilled and those less skilled. In order to improve team work and increase outcomes it is crucial to gain insight into how the team is operating and identify opportunities for improvement (Maritz, 2005).

This involves poor remuneration, inadequate equipments and poor working facilities. When employees perceive the organization as having poor working conditions, poor labour relation may result (Dubrin, 2007). Some people are highly sensitive to the environment and also climate. These should be conducive for work; otherwise even good performers can also become poor performers. The work situation and environment should be adequately modified to help the employees have better working conditions (Kotler, 2008).

All the basic policies and procedures relating to labour relations should be communicated to employees and management should communicate the general objective of the enterprise and it should have an open-door policy (Thompson, 2006). Poor communication skills leads to poor performance of employees that is to say when employees are not told what they have to do at the right time in the right place they tend to forget their responsibilities which reduces the rate at which work has to be accomplished thus communication still avail the different departme4nts of the organization with information required to perform the various tasks in an organization (Cole, 2001).

Performance is important to us as people and organizations. In fact, most of us believe that we can, and will, improve at what we do, and we expect others to improve over time as well (Temple, 2002). People are an organization‘s greatest assets: individuals and organizations have learned about the importance of the role of people in an organization, and how the success of an organization depends on its people (Bartlett and Ghoshal, 1995).

According to Katz and Green (1997:7), performance management is a system which comprises of an orderly series of programs designed to define, measure, and improve the performance of an organization. Performance management is a shared process between managers, individuals, and teams they are supervising; it is designed to improve the performance of an organization and the people working within it (Armstrong 1994:1, Torrington and Hall 1998:317).

Performance management is neither a technique nor a single process, it can be considered as a set of process, or a concept, a holistic philosophy that includes motivation of employees to perform well, employees knowledge about what their managers expect of them, development of employees,

Smith (2004), emphasizes that the introduction of new technology in different organizations has affected employee performance both positively negatively whereby it requires training workers which becomes costly and on the other hand such improves worker’s efficiency and organizational development. Balunywa (2004), adds that introduction of new technology into the market has greatly affected the performance of employees in organizations because employees tend to relax and only monitor the machines, this has increased the rate at which they relax in so doing employees cannot use their skills to achieve what they can hence decreasing their level of performance.

Poor working materials and equipments may not depict employee performance because of the fact that poor results are ascertained which also to organizations collapse, Derek, (2000). Appleby (2001) observes that a good working environment influences worker’s performance. In areas where there is no security worker’s lives are put at risk and this may not induce their workings.  Neo-classical theorists, pointed out that in order for a worker to perform effectively he must be coarsed with punishments. Witkin (2000), disagrees adding that poor supervision purely leads to poor results which does not depict employee Performance. Conflict within an organization cannot yield employee performance but simply triggers grudges in between workers therefore affecting employee performance (Robbins, 2005).

2.4       Relationships between communication and organizational performance

Sanderson (2003), believed that empowerment creates motivation and energy in workforce to do their work efficiently and effectively (Amin. et al, 2010). Kuo et al. (2010), recommended that together the job characteristics of career revamp and employee empowerment are imperative characteristics in giving greater employee dedication and trustworthiness toward the organization and increased level of motivation (Reena et al, 2009). More the loyalty towards the organization and higher the motivation works best for the effectiveness and growth of a business.

In the long run, the effects of compensation and benefits diminish as employees begin to feel a sense of loyalty and organizational commitment. When employees begin to feel they are an indispensable part of the organization, they often become dissatisfied with their compensation and benefits. Finally, when employees feel they are a superior part of an organization, they typically believe that the organization owes them much more than what they are already receiving (MacDonald and Gabriel, 2013). At this point, compensation is simply the glue which holds many dissatisfied employees in place. Furthermore, it does not mean that there is a positive correlation between better compensation and better performance.

Posti (2005), inclines that people need motivation just as pieces of equipment need fuel and operators. This is highly demanded to ensure that they are always at their optimum working condition. In turn, this will absolutely lead to optimum productivity. People are one of the most important assets in business. They have unlimited potential to contribute in the achievement of objectives. Their aggregate productivity propels the operations of the company. It dictates the overall performance, which creates an attractive corporate culture.

Employers and owners need to create organizations where excellent performance leads to competitive compensation for people throughout the organization. Without rewards, a company is planting seeds for high turnover, low productivity and long-term failure. However, to reward employees that are not performing saddles an organization with higher payroll costs and encourages poor performers to stay while discouraging the employees that go above and beyond expectations (steers et al 2012). The impact of compensation and benefits on employee performance and organizational effectiveness depends on the existing compensation and performance management programs at an individual company. Typically, most employees respond to increases in pay and benefits with a positive and more productive attitude. However, the opposite is true as well. Sometimes, employees only notice rewards of a salary increase the day the increase is communicated to them, and the day they receive the first paycheck that includes the salary increase.

Dems (2010), said that the value of human resource productivity is a managerial concern. Employee motivation is the classic response on this matter. This has been utilized for ages by many different entities, small- and large-scale businesses alike. It fosters mutual growth in an employer-employee relationship. Indeed, motivation increases productivity. In the study (Wood, 2000), he examined the role of active exploration in an adult training program. Their results indicated that participants who were trained to actively explore the environment during training had higher intrinsic motivation levels, as well as higher performance on transfer tasks.

Compensation is one of the primary reasons for employees to seek employment. They are rewarded for their services and efforts that they exert for their organizations. They can be compensated in many ways for example salaries, holidays, bonuses etc. There are two basic compensation models; performance based pay and components based pay. In the former paradigm, employee’s compensation is either tied to the way he performs; if he performs better he would be rewarded accordingly (performance based pay) and on the other hand, non performance based pay; where, employee’s performance is not tied to getting rewards, rather the employee is paid or rewarded even if its performance is not up to the mark for example fixed pay and salaries (Taylor, 2005).

The relative importance of various factors used to measure the performance of employees should be related to how well each measure informs the principal about the employee`s actual performance (Lambert and Larcker, 1987; Banker and Datar, 2013). For decade`s employees measure have been used as primary indicators of managerial performance with prior research documenting a significant relation between employees based performance and financial compensation (Antic and Smith, 1986, Ittner, et at., 2013). Moreover, both the annual cash bonus and the sum of the cash bonus plus stock based compensation have been linked to employees based performance as well as numerous other attributes of the firm’s governance structure (Core, et al, 2011).

Dems (2010), indicates that the relationship between Motivation and employee performance is to the effect that when employees are properly motivated, it creates delight in their day to day work. Various studies and research have also proven that delighted employees give out their best in the workplace. However, many employers and managers do not value the impact of motivation on employee performance. As such, in trying to increase performance and thus productivity, they ignore motivation and resort to other factors such as employee competencies, process efficiency and effectiveness, technology deployment, innovation, organizational learning, and others.

CHAPTER THREE

METHODOLOGY

3.0       Introduction

This chapter presents the methodology which consists of the research design, area of study, study population, sample population and selection, sampling technique, data collection method, data quality control, data collection procedures and limitations of the study.

3.1 Research design

The study will use descriptive research design. The researcher will employ descriptive research design since it provides the opinion of people about the subject knowledge on the impact of up and down communication on organizational performance. The design will avail the researcher with comprehensive information about the research question as a way of getting solutions. Descriptive approach, in this case will be used because the study seeks descriptive analysis of information.

3.2       Area of the study

The study will be carried out at Century Bottling Company Namanve Jinja road.

3.2       Study population and sample size

The study will target administration, the procurement staffs, accounting officers and ware house staffs.

3.3       Sampling techniques

According to (Amin, 2005) sampling involves selecting a sample of the population in such a way that samples of the same size have equal chances of being selected.

The sample will comprise of 30 respondents that will be selected in a way that 3 respondents will  be from the procurement department, 10 from administration, 10 from ware house and 7 respondents who from finance officers. While carrying out research, purposive sampling will be applied to the above different categories of respondents.

Table 1 below shows the summary of the sample size of the respondents and the sampling techniques that will be used in the study.

Table 1: Sample size of the respondents

3.4 Data sources

Source of data will be from both primary and secondary sources.

3.4.1 Primary data

Primary data will be obtained from the questionnaires administered on the target respondents to gain opinions and practices on impact of up and down communication on organizational performance.

3.4.2 Secondary data

Secondary data will be collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). This will comprise of literature related to impact of up and down communication on organizational performance to the case study. Secondary data will be sourced because it yields more accurate information than obtained through primary data, and it is also cheaper

3.5 Data Collection Instruments

The major instruments for data collection will be questionnaires and interview guide. Surveys will be just one part of a complete data collection and evaluation strategy. The major method of data collection for the study will be the survey, which will be done using selected instruments like questionnaires. The questionnaire will provide respondents with ample time to comprehend the questions raised and hence, they will be able to answer factually.

3.5.1 Questionnaires

The questionnaires will be used to collect quantitative data. The researcher will administer the questionnaires to respondents in different departments, which will be designed basing on study objectives and questions. Respondents will read questionnaires and write responses themselves. The questionnaires will be close ended and will be considered convenient because they will be administered to the literate and its anonymous nature will fetch unhindered responses.

3.5.2 Interviews

Qualitative data will be collected from the informants using interviews. The interview guide will be structured. The interviews will be held with administration and take approximately thirty to sixty minutes. This will be used since it’s the best tool for getting first-hand information /views, perceptions, feelings and attitudes of respondents. Both formal and informal interviews will be used to get maximum information from the different respondents to participate in the research.

3.6 Data collection procedures

Upon receiving the University permission to carry out research, the area of study will be visited for purposes of familiarization.  The researcher will seek permission from staff and once allowed to proceed with research, questionnaires will be issued and interviews will be carried out with the selected staff.

3.7 Quality control of data instruments

The instrument will be taken to the supervisor to check its correctness there after pilot study will be carried out to find out if it measures what it is meant for.

3.8 Data processing and analysis

The raw data will be coded, edited, and arranged ready for analyzing only completed raw data will be analyzed using statistical tables and graphs.

3.9 Limitations of the study

Financial constraints cash flow may not flow as expected but this will not affect the study.

Respondents may delay in filling the questionnaires and fear to give information, but they will be persuaded that the information is going to be kept secret.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.0       Introduction

This chapter covers data presentation, analysis and interpretation of findings as revealed from the field study. The findings are presented according to the objectives that guided this study.

4.1       Respondents personal data

This sub section presents the study findings in relation to qualification, organization position, department and duration of service in the organization.

4.1.1Gender

Table 2Showing Gender of the respondents

AAccording to the findings it was indicated that Century Bottling Company Limited employees, forty (40%) of the respondents are female while sixty (60%) of the respondents are male. This therefore indicated that most information was gathered from male respondents.

4.1.2    Age group

            Source: Primary data

From the findings, twenty three percent  ( 23%) of the respondents were aged between 18-29, 33% of the respondents were between 30-40 , twenty three (27%) of the respondents were  between  the age bracket of 41-50 while seventeen percent (17%) of  the respondents were between the age bracket of 51-60 . This therefore indicated that data was gathered from respondents who are in an overwhelming stage with bright ideas in relation to the present environment.

4.1.3   Period worked with Century Bottling Company Limited

Table 3Showing the period for which employs have worked with Century Bottling Company Limited

Source: Primary data

The findings revealed that forty percent (40%) of the respondent had worked for Century Bottling Company Limited for a period of 1-3 years, 13% of the respondents worked with the organization between 1-3 years, twenty seven percent (27%) of the respondents worked with the organization between 4-5years while twenty percent (20%) of the respondents worked with Century Bottling Company Limited above 5years this therefore indicated that information was gathered from experienced respondents.

4.1.4    Levels of education

Source: Primary data

From the findings, it was revealed that seven percent (7%) of the respondents had Diploma, thirteen percent (13%) of the respondents had Masters, and forty seven percent (47%) of the respondents were degree holders while thirty three percent (33%) of the respondents had PHD at Century Bottling Company Limited. This indicates therefore that most respondents had attained university education and they were capable of giving relevant information.

4.1.5    Findings on the type of employment contract with Century Bottling Company Limited

Table 4Response on the type of employment contract with Century Bottling Company Limited

            Source: Primary data

From the findings, twenty three percent (23%) of the respondents were are on permanent basis, 33% of the respondents areon contractual basis, twenty seven percent (27%) of the respondents are on temporary basis whileseventeen percent (17%)of therespondents are casual workers. This therefore indicated that data was gathered from respondents who are on a permanent basis with bright ideas in relation to casual workers.

4.1.6    Findings on the salary range of employees of Century Bottling Company Limited

Table 5Responses on the salary range of employees of Century Bottling Company Limited

Source: Primary Data

From Table 5, findings  indicated that, thirty three percent (33%) of the respondents  strongly agreed, twenty percent (20%) of the respondents agreed  , thirteen percent (13%) of the respondents were Uncertain, seventeen percent (17%) of  the respondents strongly disagreed  and seventeen percent (17%)  of the respondents disagreed. This indicates that the salary range is between 5-1 Million and 1-2 Million for most of the employees.

4.1.7   Position held in Century Bottling Company Limited

Table 6Showing the Position held in Century Bottling Company Limited

Source: Primary data

The findings revealed that forty percent (40%) of the respondents  were  in  Century Bottling Company Limited as procurement managers ,thirty three percent ( 33%) of the respondents  were in  Century Bottling Company Limited as finance managers, twenty percent (20%) of the respondents was  in  Century Bottling Company Limited as marketing managers  while seven percent (7%) of the respondents was  in  Century Bottling Company Limited as production managers. This therefore indicated that information was gathered from the procurement department as well as the finance department and this showed how most employees are being rewarded as compared to the performance of the two departments and retaining employees became easy.

4.2 Benefits of up and down communication

4.4.1: Shows Benefits of up and down communication

From table above, 60% of the respondents strongly agreed that The way employees  communicate in the organization  enables them to love their jobs while the remaining 40% agreed; this therefore shows that the majority of the respondents agreed that effective up and down communication is influential towards their performance.

According to table above it indicates that, 73.3 % of the respondents strongly agreed that The managers tell employees what they are supposed to do in time , while 26.7% agreed , while none of the respondents, was neutral, disagreed, and strongly disagreed, this findings also shows that indeed managers tell employees what to do in time.

Findings revealed in table above, shows that 50% of the respondents strongly agreed and the remaining percentage this therefore shows that 100% of the respondents agree with the fact that they feel satisfied with their jobs.

According to the table 56.7% of the respondents strongly agreed that they feel happy at work place

, while the remaining 33.3% of the respondents, while none of the respondents was neutral, disagreed or strongly disagreed, this therefore clearly shows that employees feel happy at their work place in crown beverages.

From table above, majority of the respondents strongly agreed that Most of their workmates work hard while 23.3% agreed while none of the respondents were neutral, disagreed or strongly disagreed.

The table above shows that majority of the respondent assert that There is success among their fellow employees a large majority of around 60% of the respondents strongly agreeing to the fact while 33.3% of the respondents agreed and the remaining percentage of the respondents were neutral.

The table reveals that 50% of the respondents strongly agreed that they work hard to fulfill organizational goals , while 26.7% of the respondents agreed while the remaining percentages of 23.3% of the respondents were neutral.

4.3 Other factors that affect performance in an organization

Table 4.3.1: Shows other factors that affect performance in an organization

From table above, 60% of the respondents strongly agreed that Besides motivation, other factors influence employee performance while the remaining 40% agreed, this therefore shows that the majority of the respondents agreed.

According to table above it indicates that, 73.3 % of the respondents strongly agreed that Goal clarity among the employees helps to improve their performance, while 26.67% agreed , while none of the respondents, was neutral, disagreed, and strongly disagreed.

Findings revealed in table above, shows that 50% of the respondents strongly agreed and the remaining percentage this therefore shows that 100% of the respondents agree with the fact that The use of modern technology triggers performance of employees.

According to the table 56.7% of the respondents strongly agreed that Ability, training and experience improve an individual’s capability to perform while the remaining 33.3% of the respondents strongly agreed, while none of the respondents was neutral, disagreed or strongly disagreed, this therefore clearly shows that Ability, training and experience improve an individual’s capability to perform in a job.

From table above, majority of the respondents strongly agreed that Feedback is key in the improvement of an individual’s performance while 23.3% while none of the respondents were neutral disagreed or strongly disagreed.

4.4 RELATIONSHIPS BETWEEN COMMUNICATION AND ORGANIZATIONAL PERFORMANCE.

Table 4.5.1:  Shows the relationships between communication and organizational performance.

Table above reveals that Motivational strategies have an impact on employee’s performance this is supported by the strong percentage of 46.67% strongly agreeing, while 33.3% agreed and 10% disagreed while the remaining percentage of respondents strongly disagreed.

The table indicates that majority of the respondents strongly and agreed that These is a strong relationship between employee performance and motivation while none of the respondents was neutral, disagreed, and strongly disagreed.

According to table above, 46.7% of the respondents strongly agreed that Employees who receive compensation have a higher level of work, while 33.3% of the respondents agreed while 20% of the respondents where neutral.

According to researchers’ findings, 50% of the respondents strongly agreed that Most employees respond to increases in pay and benefits with a positive and more productive attitude. While the rest of respondents agreed.

According to the table 66.7% of the respondents strongly agreed that they always perform to my best when I know that am accepted at work. while 16.7% agreed and the remaining percentage disagreed.

CHAPTER FIVE

DISCUSSION ,CONCLUSION ,RECOMMENDATION AND AREAS OF FURTHER RESEARCH

5.0 Introduction

5.1 Benefits of up and down communication

According to the findings in the study it is evident that The way employees communicate in the organization enables them to love their jobs this is also in line with Herzberg (1987) argued that job enrichment is required for intrinsic motivation, and that it is a continuous management process. According to Herzberg (1987), the job should have sufficient challenge to utilize the full ability of the employee. Employees who demonstrate increasing levels of ability should be given increasing levels of responsibility. If a job cannot be designed to use an employee’s full abilities, then the firm should consider automating the task or replacing the employee with one who has a lower level of skill. If a person cannot be fully utilized, then there will be a motivation problem (Herzberg, 1987).

The findings in the study shows that the managers tell employees what they are supposed to do in time this is also in line with Neves & Eisenberger, (2012) who asserts that Organizations and managers that openly share information and encourage bi-directional communication have a higher rate of employee job satisfaction.

The results indicates that that they feel satisfied with their jobs this is also in line with Tsai, Chuang and Hsieh who discovered that employees do not always realize the importance of communication to organizational goals, or know how to establish and maintain healthy communication systems. It is the responsibility of managers to improve communication in the workplace, train employees in communication skills, and encourage informal communication.

5.2 Other factors that affect performance in an organization

According to the results in the study besides motivation, other factors influence employee performance this is also in line with Lindner (1995) notes that, though monetary methods of motivation have little value, many firms still use money as a major incentive. She adds that wages are normally paid per hour worked and workers receive money at the end of the week and overtime paid for any additional hours worked for whereas salaries are based on a year’s work and are paid at the end of each month.

The findings in the study show that Goal clarity among the employees helps to improve their performance this is also in line with Fred (2003), who noted that figuring out what to do in a particular situation require knowledge of the structure of that situation. People must understand the elements that make up the situation, how those elements are connected to one another and the relationships that exist between and among these elements.

The findings shows that the use of modern technology triggers performance of employees this is also in line with Samuel (2010), was of the view that technology is primary tool that can be used to boost employee performance. Ha writes that improvement in technology accompanied by training of the employees can significantly increase their levels of performance because it reduces the stress that comes with doing the job manually

The results indicates that Ability, training and experience improve an individual’s capability to perform this is also in line with Scott (2000), defined ability as the capacity to learn and perform the tasks required.  He revealed that a good mixture of ability, training and experience is the root cause best performances. He asserts that best performing employees at least have two of the three factors.

5.3 Relationships between communication and organizational performance.

The results indicates that Motivational strategies have an impact on employee’s performance this is supported Kuo et al. (2010), recommended that together the job characteristics of career revamp and employee empowerment are imperative characteristics in giving greater employee dedication and trustworthiness toward the organization and increased level of motivation.

The study indicates there is a strong relationship between employee performance and motivation this is also in line with MacDonald and Gabriel, (2013) who states that In the long run, the effects of compensation and benefits diminish as employees begin to feel a sense of loyalty and organizational commitment. When employees begin to feel they are an indispensable part of the organization, they often become dissatisfied with their compensation and benefits. Finally, when employees feel they are a superior part of an organization, they typically believe that the organization owes them much more than what they are already receiving.

The study indicates that Employees who receive compensation have a higher level of work this is also in line with Posti (2005), inclines that people need motivation just as pieces of equipment need fuel and operators. This is highly demanded to ensure that they are always at their optimum working condition. In turn, this will absolutely lead to optimum productivity. People are one of the most important assets in business.

5.2 Conclusion

The study concludes that employers and top management should make sure that there is effective up and down from the subordinates to the lower management, this will enable better motivation among the employers and increased organizational performance.

5.3 Recommendations

The study recommends that all the managers and employers should pay more attention to the way they communicate to their subordinates as this has a direct impact on their productivity and the future of the organization.

5.4 Areas of further study

The study recommends the following areas of further study;

• The different motivational strategies that enhances organizational performance
• Benefits of technology in organizational performance
• Techniques of enhancing labour productivity

QUESTIONNAIRE

Study Appendix I

(Questionnaires to the staff and management of Century Bottling Company Limited)

Dear respondent,

The researcher seeks through this study to evaluate the “impact of up and down communication on organizational performance”. The researcher is a student of Kyambogo University. This questionnaire is designed for academic purposes and for partial fulfillment of the requirements for the award of a Bachelor’s degree in administrative and secretarial science. It is only through your response that the work can be completely well. Therefore any information disseminated will be handled with maximum confidentiality. Please kindly spare a few of your minutes to answer the following questions.

SECTION A: BIO DATA

Please indicate a tick (  a) against your choice

1. Sex of the respondent

Male                              Female

• Age bracket of the respondent

18 – 29                                    41 – 50

30 – 40                                    51 – 60

3. Highest level of Education

Certificate                   Diploma                                  Degree

Masters                        PHD                                        Others

4. How long have you worked with Century Bottling Company Limited

Under 1 year                           1-3 years                      4-5 Years

Above 5 Years

5. What is your employment status?

Permanent                   Temporary                   Casual

Contract

• In which department do you fall?

Operations and Transport                               HR and Customer care

Technical and Engineering                             Finance and Accounts

Marketing and Sales

SECTION B: BENEFITS OF UP AND DOWN COMMUNICATION

Please tick one appropriate by indicating your level of agreement or disagreement

SA=strongly disagree, A=agree, N=Not sure, D=disagree, SD=strongly disagree

Suggest the benefits of up and down communication in century bottling company?

.

1. …………………………………………………………………………………………
2. …………………………………………………………………………………………
3. …………………………………………………………………………………………

SECTION C: OTHER FACTORS AFFECTING EMPLOYEE PERFORMANCE

Please tick one appropriate by indicating your level of agreement or disagreement

SA=strongly disagree, A=agree, N=Not sure, D=disagree, SD=strongly disagree.

SECTION D: RELATIONSHIPS BETWEEN COMMUNICATION AND ORGANIZATIONAL PERFORMANCE.

Please tick one appropriate by indicating your level of agreement or disagreement

SA=strongly disagree, A=agree, N=Not sure, D=disagree, SD=strongly disagree.

THANK YOU FOR YOUR COOPERATION