Internal Communication in the Small and Medium Sized Enterprises

In today’s competitive world, the management of human resources plays an integral role as it influences prosperity of the company. The satisfied and loyal employees – internal stakeholders create the foundation for effective work within the real life of the company which is to improve on the effectiveness of internal communication. The internal communication process directly influences the building of mutual relations between the company (management) and its employees. Unfortunately, the importance of internal communication is not sufficiently understood in managerial practice. Management is not aware of the most important function of effective internal communication, which is essential for knowledge management, reengineering and prosperity of the company. Without effective internal communication, the company does not take full advantage of its resources. Effective internal communication improves the work environment climate while increasing awareness among employees of company activity and plans. Management gets to hear suggestions about the company's plans and policies from its employees through effective feedback mechanisms. Thus the company is able to use fully the accumulated experience of all its employees. Effective internal communication enhances the role of the managers and gives more positive attitude to change within the company. It also allows opportunities to solve problems before they become crises. It creates and sustains employee commitment and concentrates effort on the task on hand while achieving the company's objectives. This chapter brings an overview of internal communication. It clarifies the internal communication within the context of personal, marketing and other areas of the company control process. It describes the synergy that can be created by proper utilization of managers’ abilities and skills, and the use of information and communication technology tools. The chapter includes selected results of the field research and the current status and trends of managers’ views on the issue of internal communication. The last part focuses on the effective internal communication set up.