INDUSTRY OF FINANCE

UNIVERSITY OF FINANCE – MARKETING

Class: CLC_22DMC03

Name of Students: Student ID:

Nguyễn Thị Lan Hương 2221001591

Đoàn Quốc Huy 2221001596

Nguyễn Tuyết Nhi 2221001722

Nguyễn Mạnh Tài 2221001790

Bùi Mỹ Thuận 2221001828

CORPORATE COMMUNICATION
INTERNAL COMMUNICATION

Major: MARKETING

Specialization: MARKETING COMMUNICATION

Ho Chi Minh City, 2024

Table of Contents
I. What is internal communication?.............................................................................3
II. Internal Communication and the Changing Environment........................................3
III. Organizing the Internal Communications Effort......................................................4
IV. Goals for an Effective Internal Communications Program......................................6
1. Improving Morale and Fostering Goodwill............................................................6
2. Informing Employees About Internal Changes.......................................................6
3. Explaining Compensation and Benefit Plans..........................................................6
4. Increasing Employee Understanding of the Company and Its Culture..................6
5. Changing Employee Behavior.................................................................................6
6. Encouraging Employee Participation in Community Activities..............................7
7. Reinforcing Employees’ Beliefs that They Are Important Assets............................7
Features of GoodInternal Communications................................................................7
V. Key Steps in Implementing an Effective Internal Communication Program...........7
1. Communicate Up and Down:..................................................................................7
2. Face-to-Face Meetings............................................................................................8
3. Communicate Online...............................................................................................9
4. Create Employee Oriented Publications...............................................................11
5. Communicate Visually..........................................................................................11
6. Focus in Internal Branding....................................................................................12
7. Consider the Company Grapevine........................................................................12
VI. Management’s Role In Internal Communication...................................................13
1. CEO and senior leaders play a crucial role in conveying the culture and strategic
direction of the organization.....................................................................................13
2. Managers need to get out from behind their desks, go out and get to know the
people who are working for them.............................................................................14
 INTERNAL COMMUNICATION

I. What is internal communication?

Internal communication is the process by which an organization shares

information, builds relationships, and fosters a cohesive culture among its employees. It
involves various methods and channels, such as emails, meetings, intranets, and newsletters,
to ensure that everyone in the organization is informed, engaged, and aligned with the
company’s goals and values.
Effective internal communication helps in creating a positive work
environment, driving organizational change, and improving overall business performance. It
goes beyond just sharing information; it’s about creating a culture where employees feel
valued and motivated.
Internal communications in the twenty-first century is more than the memos,
publications, and broadcasts that comprise it; it’s about building a corporate culture based
on values and having the potential to drive organizational change.

II. Internal Communication and the Changing Environment

The changing business environment:

Most of today’s employees are well educated, have higher expectations of what
they will get out of their careers than their parents did, and want to understand more about
the companies they work for. We can mention some factors:
 Today’s workplace - tighter staffing, longer hours, greater workload
For example: banking and sales, work more than 8 hours a day, almost OT
 Less secure jobs - more fluid workforce
For example: Permanent, full-time positions are decreasing. Instead, more people
are working in short-term contracts, freelance jobs, or project-based work, leading to a
decline in job stability.
 Increased complexity and competition. (The increasingly complex and highly
competitive nature of today’s business environment puts greater pressure on
employees and also calls for a more concerted effort in the area of internal
communications.)
For example: Citigroup has decided to lay off approximately 20,000 employees as
part of a comprehensive restructuring plan. The primary goal is to reduce costs and improve
operational efficiency. This measure is expected to save the bank $2.5 billion. The decision
comes after a disappointing fourth quarter. This decision highlights the intense competition
in the labor market and underscores the need for employees to work harder to stay
competitive.
  Employees want to be more actively involved in organizational decisions and
change
For example: According to a survey by the market information company TNS, 40
percent of workers feel disconnected from their employers, two out of every three workers
do not identify with or feel motivated to drive their employer’s business goals and
objectives; and 25 percent of employees are just “showing up to collect a paycheck.
→ Therefore greater need to have two-way communication
 Workers feel disconnected from their employers\
For example:
According to a survey by the market information company TNS, 40 percent of
workers feel disconnected from their employers, two out of every three workers do not
identify with or feel motivated to drive their employer’s business goals and objectives; and
25 percent of employees are just “showing up to collect a paycheck.
 Communication with employees also needs to be sincere because workers say their
company is less open and honest
For example: Managers need to recognize that if they provide information to
employees and also listen to them, those employees will be excited about their work,
connected to the company’s vision, and in a position to further the goals of the organization.
III. Organizing the Internal Communications Effort
Internal communication plays an important role in building corporate culture and
enhancing employee engagement. Corporation’s needs to determine what employees’
attitudes are about the firm and this is called a communication audit. An internal
communication audit is a systematic process of evaluating how an organization
communicates. Corporation may hired outside consultants to conduct an IC audits to
identify strengths and weaknesses in its existing communication practices.
To illustrate the importance of an internal communication audit, we can mention
two large companies: Starbucks and Kinko’s. Both companies engaged outside experts to
conduct the audit to evaluate business processes, financial performance, and regulatory
compliance. Hiring outside experts helps ensure objectivity and transparency in the audit
process, while also providing a fresh perspective on business operations. At Kinko's (now
FedEx Office), the company conducts focus groups nationwide to gather employee
feedback. These discussions, typically involving 6-10 participants, are held at various
locations, allowing employees to openly share their experiences and opinions. In addition,
Kinko's uses online surveys to quickly collect data. After analyzing the information, the
company compiles the results into a report, helping leadership identify trends and
opportunities for improvement, ultimately enhancing the work environment and employee
satisfaction.
Top 5 Drivers of Sustainable Engagement
 In today's competitive work environment, understanding what matters most to
employees is crucial for fostering a positive workplace culture.
1. Leadership
Effective leadership is fundamental to a thriving workplace. Leaders who show a
sincere interest in their employees' well-being create an atmosphere of trust and support.
When leaders embody the company's core values consistently, they set a strong example for
employees, reinforcing the organizational culture and motivating staff to align with these
principles.
2. Stress, Balance, and Workload
Managing stress levels is essential for maintaining a healthy work environment.
Employees need to feel that their workload is manageable and that there is a healthy balance
between their work and personal lives. Providing adequate staffing ensures that tasks can be
completed effectively without overwhelming individuals. Additionally, offering flexible
work management options allows employees to better navigate their responsibilities, leading
to increased job satisfaction and productivity.
3. Goals and Objectives
Clarity around goals and objectives is vital for employee engagement. When
employees understand the company's business goals and the steps necessary to achieve
them, they can see how their roles contribute to the overall success of the organization.
Assigning tasks that align with employees' skills not only enhances performance but also
boosts morale and job satisfaction.
4. Supervisors
The role of supervisors cannot be understated. They are pivotal in coaching
employees to improve performance and providing guidance. Treating employees with
respect fosters a positive working relationship, encourages open communication and
collaboration. A respectful supervisory approach creates a culture where employees feel
valued and empowered.
 5. Organization's Image
A company’s image significantly impacts employee pride and satisfaction. Being
highly regarded by the general public enhances employees’ perception of their workplace.
Demonstrating honesty and integrity in business activities builds trust both within the
organization and with external stakeholders. This positive image can increase employee
loyalty and engagement.
By addressing the behaviors and actions that matter to employees, organizations
can create a more engaged and productive workforce, ultimately driving success and
growth.
IV. Goals for an Effective Internal Communications Program

Effective internal communications are crucial for adapting to change, keeping

employees informed and engaged.
1. Improving Morale and Fostering Goodwill

By ensuring clear and open lines of communication, employees feel valued and
connected, which leads to better relationships and higher engagement levels. This also helps
create a positive workplace environment where everyone is motivated to contribute.
2. Informing Employees About Internal Changes

Another key objective of internal communications is keep inform employees about

internal changes such as a reorganization or staff promotions, effective communication
ensures that employees are aware of what’s happening within the company. This helps
prevent confusion and ensures transparency, making employees feel more connected to the
company’s growth and direction.
3. Explaining Compensation and Benefit Plans

Employees who fully understand the benefits they’re entitled to are more likely to
feel secure and supported. This transparency not only boosts satisfaction but also reduces
misunderstandings regarding company policies.
4. Increasing Employee Understanding of the Company and Its Culture

An effective internal communications program also increases employees’

understanding of the company, its products, its values, and its culture. By continuously
sharing information about these aspects, employees will feel more aligned with the
company’s mission and vision. They will be more invested in the organization and take
pride in being part of something meaningful.
5. Changing Employee Behavior

By communicating goals, feedback, and expectations clearly, employees are

encouraged to become more productive, quality-oriented, and entrepreneurial in their
mindset.
 6. Encouraging Employee Participation in Community Activities

When employees engage in community-based programs, they not only develop

new skills but also strengthen | their connection to the company. This sense of teamwork
extends beyond the workplace and reinforces a supportive, collaborative environment.
7. Reinforcing Employees’ Beliefs that They Are Important Assets

This reinforcement motivates employees and enhances their loyalty. It can only
happen when management genuinely believes this and the communication efforts are
handled by professionals who know how to deliver these messages effectively.
In conclusion, effective internal communication isn’t just about passing
information from management to employees. It’s about building relationships, boosting
morale, ensuring transparency, and aligning employees with the company’s goals and
values. By focusing on these goals, we can create a strong, engaged, and motivated
workforce that drives our company forward.
Features of GoodInternal Communications

 Internal communication should be: Transparent and timely, clear, concise,

informative and independent.
 Internal communications practitioners should adhere to certain values such as:
Openness, honesty and two-way communication.
V. Key Steps in Implementing an Effective Internal Communication Program
1. Communicate Up and Down:
Vertical Communication, Horizontal Communication and Diagonal
Communication.
 Vertical Communication: Which flows through the hierarchical structure of
organisation from higher level to lower level of staff or vice versa.
 Horizonal Communication: Can also take place between equal level of
employees.
 Diagonal Communication: Diagonal communication enhances organizational
flexibility by facilitating faster information flow in both directions. This means that
information can move quickly from lower levels to upper management and vice
versa, improving efficiency and breaking down communication barriers.
- Greatest criticism that employees have is that companies do not encourage upward
and downward communication.
- Best approach can be informal discussions between employees and supervisors so
they can ask questions and offer ideas without fear of punishment.
- Communication then evolved to include printed materials for formal, top-down
message transmission - newsletters, annual reports, memos and so on.
- Conversations with management promote feelings that employees are important
assets to the organization.
- Builds an atmosphere of trust and respect between management and employees.
 For example: HP’s “Open Door” Policy: open communication in an environment of
trust and mutual respect between managers and employees in day-to-day business.
2. Face-to-Face Meetings

 Senior management should have in-person meeting with large groups of employees
on a regular basis at least quarterly.
 Use these meetings for management to share company results, initiatives, and
respond to employee feedback.
 It's opportunity for employees to ask questions of management in an open forum.
 Video or telephone conferencing should be used if employees can't attend in person.
For example: Starbucks offers an online idea program called "Open Forum" to
encourage employee input. In addition, quarterly Open Forum sessions are held nationwide,
featuring presentations from senior management, updates on important issues, a video, and a
Q&A session. While attendance is not mandatory, many employees participate to interact
with leadership and learn about company strategy.
 Topics should be limited and based on employee surveys to focus on what's
important to them.
 The online dialogue option appeals to employees who may feel uncomfortable
speaking in public. This provides an alternative for those who prefer to share their
ideas in a less formal setting.
 Online dialogues can be useful for those uncomfortable speaking in public.
 Smaller group meetings are important for feedback and resolving specific problems.
For example: Frazier inherited a manufacturing plant plagued by poor communication
and significant financial losses at least 10 millions dollar per day. Recognizing the
importance of employee input, he initiated a series of small group meetings to gain firsthand
insights into the challenges faced by the workforce. This proactive approach proved
instrumental in turning the plant around.
3. Communicate Online

While meetings are an important way to communicate with employees, the advent of
company intranets in the late 1990s provided a new channel through which companies could
reach their employees quickly and broadly with important news on events and key
management initiatives.
Intranets provide a rapid and broad channel for disseminating important company news
to employees while also serving as an interactive platform for sharing ideas and
perspectives.
The passage discusses the importance of intranets as a tool for internal communication.
 Intranets provide a platform for quick and broad dissemination of information:
Companies can use intranets to share important news, events, and management
initiatives with employees.
  Intranets foster employee engagement: Reach employees quickly and broadly with
important news, events, management initiatives and also act as interactive platforms
where employees can share views.
 Employees found that intranet is very important, however it is not easy to find what
they were looking for.
For example, IBM’s successful use of intranets: IBM has been praised for using
intranet “W3” to facilitate global internal conversations and tap into employee knowledge.
 The "Jam" technology: IBM's "Jam" technology allows employees to contribute to
discussions in real-time, fostering collaboration and idea sharing.
 Intranets can drive organizational change: IBM's "ValuesJam" demonstrated how
intranets can be used to facilitate significant organizational change by fostering
open dialogue and gathering employee feedback.
 Companies need to make sure their messages are reaching their employees and
information is easy to find.
 Intranets and website also need to be regularly updated with latest information and
engaging.
 An effective internal communication strategy should focus on both content and
channel, recognizing that the use of multiple channels (some traditional and some
more innovative) offers the best potential for success
 A companies need to make sure their messages are reaching their employees and
information is easy to find. Intranets and website also need to obe regularly updated
with latest information and engaging.
 An effective internal communication strategy should focus on both content and
channel, recognizing that the use of multiple channels (some traditional and some
more innovative) offers the best potential for success.
For example: Global companies like Microsoft and Apple utilize a variety of internal
communication channels to keep their employees updated and engaged. Here are some
common internal communication channels they typically use:
Microsoft
Microsoft Viva: An internal communication platform that allows management and
measuring the impact of messages.
Microsoft Teams: Used to organize meetings, communicate, and share files.
SharePoint: A platform for storing and sharing files, information, and documents.
Email: A common communication medium for sending messages and documents.
Viva Engage: A platform for creating forums and online courses.
Apple:
Intranet: A separate platform for employees to access information and documents.
Slack: Used to create separate channels and communicate quickly.
 Email: A common communication medium for sending messages and documents.
Apple at Work: A program providing tools and documents to help employees work
more effectively.
In conclusion, intranets can be a valuable tool for improving internal communication,
fostering employee engagement, and driving organizational change.
And while video and online communication channels are often expedient and engaging,
they should not be used as a substitute for personal, face-to-face communication between all
levels of management and employees.
4. Create Employee Oriented Publications

 Publications such as employee newsletters/magazines are needed for employees

who do not have email access.
 How can companies make these interesting? Employees rather read local
magazines/newspapers than the typical company newsletter
 Ideally, publications should connect employees with important happenings and
accomplishments across the company
 Sending publications directly to employees' homes rather than distributing at
workplace can be more effective.
 Publications must be honest about anything that might affect employees. The goal is
to make employees feel like part of the team.
 Messages should include what employees would be interested in and also what
management would like to say.
Publications can be used to
 Introduce new employees.
 Communicate internal changes
For example: new management, new group structures, important deals
 Communicate important changes e.g. merger.
 Communicate events that may affect employees.
For example: reduction in employee health/ retirement benefits
5. Communicate Visually

Shift to Visual Communication: Employees are becoming more visually oriented in

their information consumption, similar to the trend of Americans turning to television for
news.
Use of Intranets: Companies are increasingly using intranets to communicate with
employees through webcasts and multimedia presentations.
Television Studios: Large corporations often have elaborate television studios with
satellite capabilities for visual communication.
 Video Magazines: These studios create "video magazines" for employees in remote
areas, helping them feel connected.
Internet Broadcasting: Companies broadcast programs on the internet for employees to
view over the intranet.
Communal Viewing: Employees without email access can watch webcasts in communal
spaces like cafeterias.
For example: JetBlue holds monthly meetings with the president discussing industry
happenings and hosting live Q&A sessions, also broadcast on the intranet.
Visual channels are powerful and an effective way to make employees feel connected to
management.
It is more personal than email or publications, by offering a personal touch.
Low-tech Visual Communication: At Colgate-Palmolive’s Mennen plant, whiteboards
are used for various updates and visual measures of success.
For example: Unilever, a multinational company, uses various methods to connect its
offices in Vietnam with the headquarters through intranet. One of the intranet channels they
use is 'Unilever Inside', where they employ the method of visual communication for
effective engagement.
This approach helps create a visually appealing and engaging communication
experience, making it easier for employees to access and understand information from
different offices.
 Visual channels are powerful and an effective way to make employees feel
connected to management.
 It is more personal than email or publications, by offering a personal touch.
6. Focus in Internal Branding

 The importance of two-way communication: Emphasizes the need for clear, two-
way communication about strategy and direction.
 Internal branding: Necessary to boost morale and create a workplace where
employees are engaged with their jobs.
 Need to "sell" ideas to employees: Employees also need to be convinced of the
ideas the company is trying to sell to the public.
 Important during times of change: Internal branding is especially important when an
organization is undergoing changes such as a merger or a change in leadership.
 Internal branding campaign can be launched when results of internal audits reveal
the employees are not connecting with co’s vision or when morale is low.
BP's internal campaign: BP rebranded and launched an internal branding campaign
along with an external program during the merger.
 For example: “Nike's campaign”, Nike links internal and external marketing by
granting numerous senior executives the second title of "Corporate Storyteller."
Volkswagen's campaign: Volkswagen uses creative films to instill the spirit of the
"Drivers wanted" campaign in employees.
7. Consider the Company Grapevine

 Informal communications
For example: private conversations, gossip
 Grapevine brings employees news of major corporate changes.
 Distributes messages faster and is seen by employees as more credible than formal
channels.
 Most companies have no policy for dealing with the grapevine.
 If employees do not receive complete or timely information from employers, they
are forces to rely on one another or outside sources.
How do managers reduce rumors/ negative information spreading through
grapevine?
 Announcement for making important decisions.
 Explain decisions/ behaviors that may appear secretive.
 Openly discuss worst-case possibilities in the event if there is negative news to
share, e.g. closure of plants, restructuring, etc.
VI. Management’s Role In Internal Communication
1. CEO and senior leaders play a crucial role in conveying the culture and
strategic direction of the organization.
Culture carriers: These individuals represent the organization's culture and
communicate its values, vision, and mission to employees. Organizational culture plays a
crucial role in shaping how employees work and interact with each other.
Visionaries: These are people with foresight who can set strategic directions for the
organization's future. They establish goals and guide the organization toward achieving
them.
All communications relating to organisational strategy start with them.
Senior leaders play a crucial role in establishing and communicating the organization's
strategy. They are the source of information and strategic direction, with the vision, mission,
and goals originating from them. Once the strategy is defined, they convey this information
to all employees to ensure everyone works together towards its implementation.
Example: The CEO of a technology company may set a goal to become the leading
firm in artificial intelligence. He will communicate this vision to all employees, from data
scientists to marketing teams, so that everyone understands their role in achieving the
common objective.
Physical presence and interaction are an important start.
 The presence and direct interaction between leaders and employees are very important.
Direct communication creates connections, helps convey messages more effectively, and
builds trust.
Direct communication fosters closeness, allowing leaders to answer questions, share
information clearly, and receive immediate feedback. This helps employees better
understand the company's strategy and feel heard.
Example: The CEO of a manufacturing company holds regular meetings to share
information about the business situation, listen to employee suggestions, and answer
questions.
Work closely with IC professionals to ensure message are understood by all
employees.
Working closely with internal experts is very important to ensure that the message is
clearly understood by all employees. Internal experts specialize in effectively
communicating information and making sure that every employee, from top management to
frontline staff, receives and understands the message.
They play a key role in building and implementing internal communication plans,
working with leaders to define the message, choose the right communication channels, and
measure effectiveness.
Example: The internal communications department of a financial company might
create a campaign to introduce a new product, using various channels like email, internal
newsletters, and videos to share information with all employees.
2. Managers need to get out from behind their desks, go out and get to know the
people who are working for them.

Instead of just sitting in the office and giving orders, managers should actively
participate in employee activities and talk directly with them.
Example:
 Sales Director: Regularly joins meetings with the sales team to listen to their
opinions and challenges, and work together to find solutions.
 Production Manager: Checks the production line and talks with workers to
better understand the work process and any issues they face.
When managers show care and understand their employees' work, employees feel
heard, respected, and motivated to perform better.
Most important factor in IC begins with managers who have basic responsibility to his
or her employees.
 Listen to what they have to say
 Get to know who they really are as individuals
 Managers play a very important role in creating a good work environment. If managers
do not care about their employees and do not listen to their opinions, it will be difficult to
build an effective team. CEO's and our senior senior leaders play a crucial role in conveying
the culture and conveying their culture and their struggle struggle the rest of the
organization.