Impact of Organizational Structure on Effective Communication Flow : The Case of Sharp-Roxy Corporation

Effective communication complements managerial effectiveness in organizations and is also a means of achieving organizational objectives. The settings in large organizations often makes effective communication difficult. One source of this lies in the characteristics of organizational structure. This study confines to the impact of organizational structural variables on effective communication in organizations. The communication channels created by the organizational structure serve specific functions through downward, upward and lateral communication. Thus an organization’s structure must facilitate this effective flow of communication. This study examined the relationship of selected variables of organizational structure and the informal structure to effective communication flow among the managerial ranks at Sharp-Roxy Corp. (M) Sdn. Bhd. in Sungei Petani, Kedah. The organizational structural variables examined were specialization, departmentalization, hierarchical level, span of control, spatial dispersion, formalization and centralization, and the informal structure. Additionally, the demographic factors of gender, age, race, position, years of company experience, and emplacement were investigated to determine their impact on communication effectiveness as well as the differences among the various groups classified by the demographic factors. The study thus sought answers to the following research questions: 1. Did selected demographic factors influence the effective communication flow? 2 . Did the organizational structural variables and informal structure contribute significantly to the effective communication flow among the managerial ranks? This study was conducted on a sample of 68 respondents from various managerial ranks and departments of Sharp-Roxy Corporation (SRC), who completed the Communication Opinion Questionnaire. This instrument recorded the respondents’ perception of communication effectiveness along the dimensions of organizational structural variables. The major finding of the study was the impact of the organizational structural variables on communication effectiveness. The seven independent variables of organizational structure, explained 67.2 percent of the dependent variable of communication effectiveness. Of the variables examined, formalization and specialization, emerged as most significant in explaining the variance in effectiveness. It was concluded that the existing levels of the organizational structural variables facilitated effective communication flow in the organization. There was no significance found for effectiveness by demographic factors of gender, race, position, or years of company experience. However, significance was found for age groups, where respondents between 40-49 years old perceived the most effectiveness in communication flow. Significance was also found for the variable of emplacement where respondents among selected departments of SRC perceived differences in communication effectiveness. Opinions on communication climate and channels of communication were also sought. The responses conveyed that conflicts were handled through proper communication channels, trust with senior management and among co-workers was fairly high, and that not enough training programs in communication were conducted by the organization. The channels of communication most used and most preferred were face-to-face and the telephone.The study also made some suggestions and recommendations for further research in this field of inquiry. Of note are the need to study other intrapersonal and interpersonal factors affecting communication effectiveness. Also, research on a longitudinal scale in various organizational settings is needed