Presentation on theme: "Internal Marketing “Employee morale is affected by how much we know about the company’s plans.” 98 percent of employees agree."— Presentation transcript:
1Internal Marketing“Employee morale is affected by how much we know about the company’s plans.”98 percent of employees agree.
2Key questions regarding internal marketing Where does it fit within an organization’s marketing plans, or within its strategic plans?Who should do it -- marketing, human resources, public relations?What can organizations learn from each other?What does the diverse literature say?
3Definitions: Selling the firm to its employees (Grönroos, 1981) The process of attracting, developing, motivating, and retaining qualified employees through job-products that satisfy their needs (Berry & Parasuraman 1991)Building customer orientation among employees by training and motivating both customer contact and support staff to work as a team (Kotler & Armstrong 1991)A process by which employee satisfaction is leveraged to positively impact the bottom line. Satisfied employees strengthen relationships among all critical stakeholders. (Williams, Business & Economic Review, 1997)
4Definition -- (Joseph 1996) The application of marketing, human resources management, and allied theories, techniques, and principles to motivate, mobilize, co-opt and manage employees at all levels of the organization to continuously improve the way they serve external customers and each other. Effective internal marketing responds to employee needs as it advances the organization’s mission and goals.
5Customer- and employee-focused It demands an integrative approachInternal customers -- the idea that organizational departments serve each otherIt encompasses all employees
6Carlzon’s ‘moments of truth’ shaped by employees by the way they: lookacttalkinteract with each otherincluding facial expression, demeanor and personality
7Good internal marketing programs depend on: Recruiting the right peopleTraining themMotivating themCommunicating with themCo-opting them (getting them to buy into the organization and its plans)
8Changing Workforce Employees viewed as assets, not costs People will have 4-6 careers in lifetimeMore than half of women with babies are workingMore women are starting and running their own businesses
9Trends of Internal Communications Few companies develop a strategyFailure in over 80 percent of cases involving announced changeBiggest symptom of failure - lots of inaccurate, negative rumorsSecond symptom - learning about change from press
10Trends of Internal Communications Employees are insulted when a less ‘rich’ channel is usedManagement does not adapt message to different groupsEmployees react negatively to use of buzzwordsGreat differences between literal meaning, intention and effect of overly positive messages
11Time Spent by PR Department on: Media10%Employees35%Government25%30%Investors
12Companies not doing Enough Employees don’t believe what management says.Are not sufficiently informed.Change not communicated well.Management does a bad job of explaining reasons behind decisions.Communication is not timely.
13Management Excuses Don’t have time Haven’t gotten information self Fear reactions, leaks, uproarWon’t give away powerHaven’t gotten message of what’s expected of themAre not evaluated on their communication abilitiesGet no rewards for communicatingDon’t see how it is usefulUnder-evaluate employee’s information needs
14Employees Want Top Management to: Inform them ahead of timeCare about how they really feelGive their supervisors enough authority to get job doneMake a strong commitment to serve the customerHave the ability to solve major organization problemsRun a socially responsible organizationProvide new products and services to meet competitionPlace more emphasis on quality than quantity
15Manager’s Communication Obligations Carry information from top managementExplainListenGet feedback from employeesTake information from ‘down’ to ‘up’Active role in spreading informationSell ideasMotivate, inspire and encourage personal developmentProfile and market unitsSpeak at meetingsNegotiateGive feedback, criticism and praiseSpeak personally with staffSolve conflictsSet demandsExplain and defend unpopular decisionsCarry out periodic evaluations of employees
16A Good Communication Climate InstructiveInformativeAdvisingContributiveParticipatory
17Communications Strategy Nature ofChangeOrganizationalDynamicsEmployee DifferencesOrganizational CultureOrganizational ClimateChannelMessageStrategyTimeL. R. Smeltzer, An Analysisfor Announcing Organization-WideChange, Group & Organizational Studies,Vol. 16, No. 1 March 1991.
18LGoalE E E E EPower StructureCommunicationStructureTannæs, 1992
19Focus What is size and nature of work force? What does the work force think of organization?How satisfied are employees?What employee communications exist?How effective are communications tools?Are there special employee relationship programs?
20Communication Objectives Increase employees’ knowledgeEnhance favorable attitudes toward employerGet more adoption by employees of behavior desired by managementMake employees spokespersons for organization in communityReceive more employee feedback
21Media Capacity & Communication Characteristics Media RichnessCapacityMedia CharacteristicsMediumFeedback Cues/Channels Intimacy LanguageHighFace-to-faceTelephoneWritten, addressed(letter, memo)Written,unaddressedImmediate Multiple Personal Naturalvisual, audioFast Audio Personal NaturalSlow Limited Personal Natural/visual NumericVery slow Limited Impersonal Natural/visual NumericLowFrom R. Daft and G. Huber, How Organizations Learn:A communications framework, Research in the Sociologyof Organizations, Vol.. 5, 1987.
22Prescriptions for Managers Face-to-face: non-routine and difficult communicationsMemos: routine, simple communicationsDiscussion & Meetings: make presence feltRich media: implementing strategyMultiple media: critical issues and need to get message heardEvaluate appropriate technology
23Media Bulletin boards Displays and exhibits Telephone hotlines or news linesInserts in paychecksInternal televisionSpeakers bureaus - employees to community groupsFilmsVideo cassettesMeetingsTeleconferencesAudio-visual presentationsBooklets, pamphlets, brochures
24Evaluation Communication, Retention, Acceptance of Messages Co-orientational EvaluationsHuman Relations AuditsCommunication SatisfactionInternational Communications Association Audit - extensive use of network analysis and interviews
25How Leading Companies Communicate Chief executive as communication championMatch between words and actionsCommitment to 2-way communicationEmphasis on face-to-faceShare responsibilityBad news/good news ratioKnowing customers, clients, audiencesEmployee communication strategy
26A business marketer can develop a really hot system to market their product, but if they have not taken time to build in an employee communications plan, the marketing effort is dead in the water.Gegenheimer, C. L., “Include employees in marketing”, Advertising Age’s Business Marketing, July 1998.