Internal communication satisfaction as an employee motivation tool in the retail sector in Pune

Abstract

Information flow is the lifeblood of your company because it enables you to get the most out of your people and to learn from your customersBill Gates ('Business at the Speed of Thought', p.6 of Introduction)1. IntroductionCommunication within any organization is crucial for its smooth functioning. It is the tool with which people strive to attain organizational goals and objectives and ultimately the common core goal of profit and progress. Ineffective communications may lead to misunderstandings, lack of information, lower performance and more employee rotation. The inability of managers to effectively communicate with their employees leads to poor performance. The same is true when employees do not trust their managers because there will be no proper upward flow of crucial information. Good communication leads to increased job satisfaction, safety, productivity, and profits; it decreases grievances and turnover. Companies that attach higher importance to internal communication by setting up a separate ICC department usually have higher levels of employee engagement. Effective internal communication is thus essential for addressing organizational concerns.The Indian retail industry is one of the fastest growing industries in India and consists of both organized 7 unorganized sectors. It is the fifth largest in the world. Earlier, it was mostly unorganized; but today, with the changing preferences of the consumers, it is becoming more popular as well as organized. Today, it is expected that it will grow at a pace of 25-30% annually.2. Literature ReviewA retailer is someone who cuts off or sheds a small piece from something. Retailing is thus the set of activities that markets products or services to final consumers for their own personal or household use. The word "Retail" originates from a French-Italian word.. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. A retailer is thus a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. Retailing involves customer orientation, coordinated effort, value-driven, and goal orientation. The total retail sales in India are expected to grow to US$ 785.12 billion by 2015, according to the BMI India Retail report for the third quarter of 2011. The key factors behind the forecast growth are robust economic growth, high disposable income with the end-consumer and the rapid construction of organized retail infrastructure. The report identifies potential in India's tier-II and tier-III cities along with the expansion in middle and upper class consumer base, A growing vehicle population providing improved mobility and a greater availability of personal credit also contribute to a trend towards annual retail sales growth of 12.2 per cent. Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment.In today's knowledge economy communication plays a vital role in the conduct of business of any organization. Increasing growth in the retail industry and the ensuing competition has made it important for retail entities to manage relationships with different stakeholders like customers, investors, employees, and suppliers through corporate communication. Internal communication is today as important as external communication, and is often a tool for motivating employees. Indeed, for many companies in mature or declining marketplaces a sound internal communication strategy often aids the eternal drive for greater efficiency. Internal communication and training can help transform key employees into 'walking embodiments' of the core values, and key touch points into opportunities for fulfilling the brand promise.Communication satisfaction results in job satisfaction and other imperative work outcomes. …