Strategy communication effectiveness in the South African banking industry.
Date
2011-03-10
Authors
Alagbaoso, Manessah O.
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Abstract
In the business environment of South African banking industry, informed and
committed employees are a source of competitive advantage. More than ever
before, organisations’ strategies need to be effectively communicated, understood
at all levels, and effectively implemented.
The purpose of this study is to examine factors responsible for the effective
communication of strategy between the head office and the network of a South
African banking organization using the face-to-face medium.
The data for this study was collected via a questionnaire and statistically analysed
using Descriptive Statistics, Factor Analysis, Cluster Analysis and Analysis of
Variance (ANOVA).
A five-factor solution was obtained and the factors are: 1. Interpersonal
Communication; 2. Change and Improvement; 3. Employee Involvement in
Strategy Formulation; 4. Stability; and 5. Vertical Communication. Of these five
factors, the first three are deemed significantly important to strategy
communication effectiveness and factors one and five are specifically important to
effective strategy communication through the use of the face-to-face medium. The
Cluster Analysis resulted in six clusters named: 1. Best of both worlds; 2.
Specialists; 3. Elitists; 4. Bureaucrats; 5. Salesmen; and 6. Ostriches.
The research confirmed the importance of the involvement of all levels of
managers in strategy formulation and the predominant use of the face-to-face
medium for effective strategy communication. Other key recommendations include
the use of managers that have been in the organisation for more than six months
and less than ten years for policies related to strategy communication, and the
specific use of middle managers to oversee policies related to strategy
communication using the face-to-face medium.
Description
M.B.A - WBS
Keywords
Strategy communication, South African banking industry