BUS603: Managing People

A foundation for the study of internal communication can be found in organizational identity theory. Organizational identity refers to "what members perceive, feel and think about their organizations"… as well as a "collective, commonly-shared understanding of the organization's distinctive values and characteristics". A more recent trend tied to organizational identity is the focus on employee engagement defined as "the ability to capture the heads, hearts, and souls of your employees to instill an intrinsic desire and passion for excellence". Engagement has been focused on motivating the "discretionary effort exhibited by employees," or the willingness to go beyond the minimal efforts required to keep a job. Related to employee engagement is organizational commitment, which involves an employee's decision about whether or not to leave the organization. Effective internal communication may influence engagement and commitment, but poor communication can lead to disengagement. 

One of the ways that organizations try to build organization identity and engagement is through employee orientation and other training programs. Organizations spend $54 billion annually on formal orientation programs for new employees. However, ongoing communication is necessary as recent studies have found that engagement can decline by 9% in the first year of employment and as much as 12% over five years. Companies communicate with their existing employees through a range of channels including face-to-face, company newsletters, and email to provide information about new employees or promotions, updates regarding benefit programs, and recognize individual contributions and achievements. More strategic roles may include creating a corporate identity, motivating employees, communicating organizational change, and providing the information necessary for employees to complete their jobs. Cheney described several techniques that can build organizational identification such as the common ground technique, which involves expressing concern for the employee, promoting shared values, sharing praise by outsiders or testimonials by employees. 

Employers are now taking a more proactive approach to build organizational identification through employer branding programs. Lloyd defined employer branding as the "sum of a company's efforts to communicate to existing and prospective staff that it is a desirable place to work". Employer branding tends to focus on experiential benefits such as education and training opportunities, advancement potential, and culture during recruitment and orientation. Scholars warned that the brand promise and actual experiences of employees need to be aligned with the culture, policies and procedures as "any gaps…will become starkly evident" and could lead to employee disengagement. 

Some of the characteristics associated with strong employer brands include a strong brand identity, positive reputation, differentiation from competitors, and perceptions of delivering on brand promises. Strong employer brands typically appear on prominent lists of best places to work and spend triple the amount on internal communication compared to lower performing companies. This finding supports the value of studying companies that appear on these lists, due to the fact that they likely spend more money and effort on internal communication. 

Aligned with employer branding is values communication. Lencioni described core values as those that are deeply ingrained and that consistently guide a company's actions. Berg wrote that historical accounts about the corporation's founding are often used to illustrate desired values or behavior and develop a sense of belonging. Trevino, Hartman, and Brown pointed out that in large organizations most employees rarely have face-to-face interactions with senior executives, so employee's perceptions about values come indirectly from images, policies, and communication. 

Because employees can serve as brand ambassadors, it is crucial that they not only understand those core values, but "firmly believe in and internalize the brand values". Internalization of values is a form of identification, and refers to when an individual adopts behavior in order to maintain relationships with another person or group, in this case relationships with supervisors and coworkers. 

A challenge in building organizational identity is organizational change. Today's business climate includes globalization, mergers/acquisitions, and changes in senior management. Some of the biggest changes are generational shifts as Millennials enter the workforce, and forecasts of a workforce supply shortage once Baby Boomers retire. Myers and Sadaghiani reported that Millennials have different expectations of open, supportive and affirming communication from their supervisors and managers; and "are unlikely to accept an organizational policy that information is communicated on a 'need-to-know basis'". Millennials also value teamwork and collaboration, unlike Generation X workers who tend to work autonomously.