The Power of Good Communication in Banking Sector
As discussed by Adu-Oppong (2014), communication in the workplace is critical to establishing and maintaining quality working relationship in organizations,
Developing a proper communication strategy in a banking sector must be built in the context of the customer expectation. In banking sector customers expect honesty and reliability from staff members. These are the essential elements which expected from our customers. Since our customers need more human oriented services, our staff are specially trained to speak to the customers politely and listen to their needs intensively. The chain of communication starts with our Security Guards by greeting the customers, this initial gesture would immensely attract the customers when they step in to the Bank premises.
Kalogiannidis (2020), illustrates that, effective communication also helps to build teamwork in the organization and consequently enhances employee performance. This also helps to reduce the rate of turnover redundancy in the organization.
Our banking sector is using communication as a medium to conduct staff meetings to discuss with each other regarding issues based on the functions and activities of the prevailing banking issues or performance. While having staff meetings various topics with regard to the circular upgrades, planning of day-to-day work, staff welfares are discussed.
In our banking sector, the branches are divided into two teams such as Sales Team and Services team which functions under the guidance of Branch Manager and Branch Operations Manager. There comes a time when both teams have to work synchronously. Hence, communication is essential. Sales Team canvass deposits, all kinds of account opening, loans, leases, so the Services Team has provide the assistance in opening accounts, granting loans and leases and so on.
Novalia Agung (2018) suggests that, Positive impression will be embedded in the customer mind after interacting with customer services.
It is vital to render a quality customer service in a banking industry, since customers find it difficult to understand the financial information and terms. When it comes to customer inquiries we have to provide explanations to the customers in a layman’s terms, clear the confusions with regard to account details. Money is a sensitive topic for many people, and having exceptional people skills and communication skills can attract valuable customer to bank with us and retain their relationship with us for long period of time.
Communication Accommodation Theory
(CAT)
Figure 2: Communication
Accommodation Theory
Rogerson (2015)
As
per Gruwell (2017), Communication
Accommodation Theory explores the reasons as to why people may change their
communication between speakers and how people accommodate towards or away from
another speaker’s communication.
We
in our bank apply the Communication Accommodation Theory, when customers
interacting with us with very high standards, better at things and who seems to
be powerful then divergent characteristics are shown highlighting the
differences. Similarly, if the other
customer is perceived to be of same standard, people try to be like them
creating a comfort zone for both. At
this juncture, we try to adopt the customer’s way of talking and assist them to
decide what their real needs and how to meet them. We serve difference types of age groups,
customers with difference cultures, educational levels, hence, Communication
Accommodation Theory assists to explore intergenerational communication
problem, professional level and improve the effectiveness of communication.
Communication path
Mohmoudi
(2016), explains
that how to transfer message and information flow in communication process is
called communication path.
Upward Communication Path
As Cho (2008) describes, oftentimes, what separates good leaders from bad ones lies is their art of communication. Much has been said about preferred leadership styles which advocates openness, tolerance and active engagement with subordinates.
In our banking sector, any communication moves from employees to superiors, superior to manager, managers to regional managers and so on, may be categorized under upward communication. Similarly, communication from branches to regional Offices then Zonal Offices afterwards Heads Office. Employee suggestions, market reports, performance reports feedback on new products and requests for facilities or instructions can be categorized under upward communication.
Video 1 : Upward Communication Path
Downward
Communication Path
Fiel-Miranda (2019) has insisted that, downward communication follow the formal lines of authority prescribed by the chain of command, it is not always adequate, because workers need information than just job instruction. It considered as important because lack of communication from superiors can leave workers misinformed, feeling disconnected and less satisfied by their jobs.
Downward communication in our banking
sector moves from top to the bottom level of the hierarchy. It begins with our
Chief Executive Officer and downwards towards the employees. It travel through our Senior Executives to
Junior level functionaries, from the controlling office to the branch and from
the Head of the Division to Head of Unit.
Through this communication path
corporate goals, business priorities, motivational letters, work related
instructions, newsletters, letters from the CEO/ MD are being transmitted
towards each and every employee. And
also special automated E-mail service has been developed to update the day to
day updates.
As per Smith (2015), lateral communication is perhaps the hardest arena in which to affect change, because there are fewer structures in place to support it. These path should be used to see the communication blockages, and the skill set to help clear the way for better communication, team work and productivity.
Lateral communication generally takes place in our banking sector among equal and at peer level. When a branch needs additional staff to cater the customers, our Head of the branches communicate with each other to fulfill the temporary staff shortage via E-mail or telephone to cover the temporary vacancy. Managers communicate to with each other when a sudden liquidity crises arise.
Smith (2017), explains that trust in communication is a key, technology is beneficial for communicating, face to face communication is fundamental and facilitating change through comprehensive organizational meeting is important.
We use effective communication strategies to overcome adverse impact on the work environment, in addition, business run the risk of incorrect information being circulated throughout the institution can cause disharmony and bad business decision. Therefore, managing organization communication should be at the core of our business as it allows the smooth flow of information across all levels in our hierarchy. The communication strategy for the sales team might be aimed at accomplishing different goals than the other teams. The strategy should have enough leeway to be modified depending on business needs.
Video 2: Communication Strategies
References
Adu-Oppong A. A. and
Agyin-Birikorang E. (2014), Communication
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Cho K. (2008), Facilitating upward communication: leaders must do more to break existing strongholds, INSEAD, The Business School for the World (online), available on: https://knowledge.insead.edu/leadership-management/talent-management/facilitating-upward-communication-1982 cited on 26th April 2021).
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(2019), Level of effectiveness of the
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2021.
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Hassall
S. L. (2009),
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and Team Performance: Testing Moderators and Identifying Communication Profiles
in Established Work Teams, Faculty of Business School of Management,
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Agreed Treva. Communication is the process of transmitting information from one person to another (Keyton, 2011). When leaders in an organization are unable to create an environment that has open and clear communication, it can have a negative consequence on the work culture and employee productivity( Oppang and Birikorang, 2014).
ReplyDeleteYes Nivethini, in addition, Leaders often consider practices of managers to be barrier to implementing new organizational responsibilities. There is potential to generate communication recommendations through addressing concerns about manager’s roles and managerial communication. Improving managerial communication practices may bolster employee engagement and productivity (Shannon 2018).
DeleteAdding to your view effective communication fosters ideas and builds common ground to develop complex interpersonal relationships. The communication pattern has changed in form of telephone, email and fax into instant messaging/chat, virtual words, social networking sites, wikis, twitter, blogs in the workplace which become very beneficial to transfer information from one place to another place and save data and information (Rahman&Masoom, 2015).
ReplyDeleteIn addition to this, Effective communication skills give the power to achieve success in the supervisory role, creating rapport among work teams and handling difficult conversations require choosing the most productive strategy for keeping the conversations require choosing the most productive strategy for keeping the conversation on track and the personality involved in sync. This problem provides the opportunity to assess communication strengths and weakness and learn a variety of practical, powerful communication strategies that can be applied immediately on the job, with peers, subordinates and supervisors (Easton (2021).
DeleteYes Treva agreed with the pint that raised by Smith (2017), explains that trust in communication is a key, technology is beneficial for communicating, face to face communication is fundamental and facilitating change through comprehensive organizational meeting is important.
DeleteAnd according to Armstrong (2006), The strategy for internal communications should be based on analyses of:
● what management wants to say;
● what employees want to hear;
● the problems being met in conveying or receiving information
Exactly, in addition, effective business communication includes a two-way cycle of messaging and feedback designed to achieve a specific reaction. Business cannot be successful without good relationship, proper transmission of information and ideas (Mahajan 2015).
DeleteAgree with you Treva, It is also important that the method of communication is 'practical, factual, concise, clear and persuasive' (Bovee et al., 2009, p.6). Good communication consists of listening to other points of view and every conversation should have closure (Markovic and Salamzadeh, 2018).
ReplyDeleteAdding to your comment, as per Easton (2021), effective communication skills give you the power to achieve success in your supervisory role, as well as in all your relationships. Influencing others to accept change, creating rapport among work teams and handling difficult conversations require choosing the most productive strategy for keeping the conversation on track and the personalities involved in sync.
DeleteYes Treva, communication makes possible the interaction between employer and employee in the organization, manager should be the first person who should start the quality communication within the organization(Bucata & Rizescu,2017).
ReplyDeleteAgree with you, internal communication also provides employees with important information about their jobs, organization, environment and each other. Communication can help motivate, build trust, create shared identity and spur engagement; it provides a way for individuals to express emotions, share hopes and ambitions and celebrate and remember accomplishments (Berger, 2008).
DeleteExactly Treva. communication become a strategic partner for organization to achieve its goals (Markaki, Damianios Chadjipantelis, 2013).
ReplyDeleteIn addition, organizational communication is the study of human interaction within complex organizations, and the management of organizational behavior. Organizational communication offers both qualitative approaches to data analysis and quantitative approaches (Ballard et al., 2021).
DeleteAgree with your thoughts Treva. Effective communication is intentional. It is goal-oriented. It is strategic. Unlike ineffective communication, effective communication isn’t impulsive or top-of-mind. It isn’t self-indulgent. And communication isn’t just about what one says. It’s about anything one does or is observed doing. It’s about any engagement with a stakeholder, including silence, inaction, and action (Garcia,H.F., 2014).
ReplyDeleteIn addition, the organizational culture is developed through the interactions and communications among the staff. The management of the organizations must encourage and promote an open communication in order to create a culture that sustain the performance (Somacescu, 2016).
DeleteGood point Treva. Effective communication is important for an organization where individuals from different social and professional backgrounds come together to work for the same goals. If the management of an organisation fails to create an environment which promotes open and clear communication, the he work culture and the employee productivity can be impacted adversely (Adu-Oppong and Birikorang, 2014).
ReplyDeleteThe importance of encouraging an effective communication in the workplace can be discussed as below:
1. Creates job satisfaction.
2. Lesser conflicts.
3. Increases productivity.
4. Formation of relationships.
5. Proper utilisation of resources.
Valuable remark, in addition, employee engagement is highly viewed as a key aspect of productivity. It makes sense that the enthusiasm and interest which full engaged employees bring to their work each day would be directly tied to both a more unified workplace culture and the extra efforts, better ideas and innovations that make organizations thrive (Jogi, 2015).
DeleteYes Treva, agree with you, poor communication can stem from a number of issues from frequency and timing to medium and strategy. Mistakes as simple as a clumsily-written email or untamed team meeting can quickly damage the quality of your organizational communication (Guthrie, 2019).
ReplyDeleteAgree with you, communication skills plays a very important role in interpersonal relationship. Communication is the basis of personal relationships and effective communication happens when the message that is sent is the same message received. The mutual understanding of needs and figuring out the message by both sender and recipient contributes to communication (Erozkan, 2013).
Delete