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Communication |

Communication

Communication component in Brief

In the case companies, communication was typically examined together with organisational strategy, i.e. to what extent the top management promoted and encouraged the implementation of performance management in the organization.  In the literature, both direct and indirect communication have been recognized as being important for an organization. Performance management deals with both types of communication, although in this study indirect communication is emphasized. However, many studies1,2 indicate that direct communication is the most effective channel for internal communication, and for communicating the measurement information. On the other hand, other studies3,4 have recognized the positive implications of indirect communication. In this sense, systems-based communication at least supports face-to-face communication5.

Effective communication is essential both for the dissemination of information and to achieve consensus and a shared vision6. From the performance management perspective, in order to benefit from the controlling effect of metrics and scorecards, the employees need to get information from the metrics and results that influence their everyday work7. The importance of communication for performance management and measurement have also been emphasized elsewhere1,4,5 8,9,10,11,12. For example, the work of Bourne and others4 shows that the interactive use of performance information together with communication leads to higher performance in an organization.

Key capabilities and management practices

  • Communicate organization’s strategy and mission
  • Communicate continuously
  • Use metrics, scorecards and dashboards to monitor and communicate the strategy
  • Develop vision and values in co-operation together with the staff

See also other components

Maturity levels for Communication component

Level 1 Level 2 Level 3 Level 4 Level 5
Organization strategy and mission are not communicated Communication is still in its infancy; organization attempts to communicate its goals and objectives Business goals are presented; strategy is communicated through metrics, scorecards and dashboards Strategic goals are defined and communicated across the organization; frequent communication of the progress towards set objectives Communication is continuous; vision and values are developed in co-operation; supports external communication

References

  1. Bourne et al., 2005
  2. Ukko et al., 2005
  3. Bititci et al., 2002
  4. Turner et al., 2004
  5. Ukko et al., 2009
  6. Ylimäki, 2006
  7. Lönnqvist, 2002
  8. Dhavale, 1996
  9. Franco & Bourne, 2003
  10. Franco-Santos & Bourne, 2005
  11. Levinson, 2003
  12. Ukko et al., 2007

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