The Impact of Internal Communication on Employee Performance: Insights from Credit Unions in Ghana’s Central Region

Article Number: SIS412093AI131124

13th November, 2024

Author(s):

Clement Damoah Ababio, Vida Korang, Stephen Yaw Ntiamoa

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