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The Impact of Internal Communication on Employee Performance: Insights from Credit Unions in Ghana’s Central Region
Article Number: SIS092618AI131124
13th November, 2024
Author(s):
Clement Damoah Ababio, Vida Korang, Stephen Yaw Ntiamoah
Abstract:
This study examines the
impact of internal communication on employee performance within credit unions
in Ghana's Central Region, an area where efficient information flow is pivotal
to maintaining service excellence in the financial sector. Utilizing a cross-sectional
survey of 286 employees across five prominent credit unions, this research
assesses how horizontal and upward communication channels influence employee
efficiency and effectiveness. Results reveal a robust correlation between
horizontal communication and employee performance, with a Pearson correlation
of 0.768 (p < 0.01) for efficiency and 0.879 (p < 0.01) for
effectiveness, underscoring the role of peer collaboration in fostering a
cohesive work environment. Similarly, upward communication demonstrates
significant positive associations, with correlations of 0.880 (p < 0.01) for
efficiency and 0.902 (p < 0.01) for effectiveness, highlighting the
importance of feedback channels in enabling responsive management practices.
Further analysis indicates that organizational politics moderates this
communication-performance relationship, with higher levels of transparency and
trust mitigating potential adverse effects. The findings align with and extend
current literature, confirming that strategic internal communication is not
merely supportive but essential to employee engagement and productivity in
service-driven sectors. This study contributes to organizational communication
literature by emphasizing the nuanced influence of internal communication structures
in developing economies, where credit unions serve as vital agents for
financial inclusion. Recommendations advocate for structured feedback
mechanisms, cross-departmental collaboration, and transparent communication
policies to enhance organizational agility and employee engagement. This
research ultimately provides credit unions and similar financial institutions
with actionable insights to cultivate a high-performance culture, thus
reinforcing their role in financial sustainability and customer satisfaction.
Future research should explore the role of digital communication tools in
strengthening these practices, particularly within resource-limited
environments.