Effects of Internal Communication on Employees' Performance in the Insurance Industry in Kenya: A Case Study of Kenya Orient Life Assurance Limited

Abstract

Internal communication is a key driver of the relationship between the management and the employees. An organization should ensure that the flow of information between the management and the employees flows effectively as this influences the output of the employees affecting the overall productivity of the organization. This study, therefore, sought to find out the effects of internal communication on employees' performance in the insurance industry in Kenya using Kenya Orient Life Assurance (KOLAL) as the case study. The study had four major objectives which were; To determine the strategies of internal communication that are in place at KOLAL to establish employees’ perceptions of the relationship between internal communication and their performance, to investigate the effects of internal communication on the employee performance and to recommend ways that KOLAL can improve their internal communication strategies as a tool for employee performance. The research engaged the two-step flow theory and used a quantitative approach by use of questionnaires to collect data. The study established that most of the employees of KOLAL agreed that internal communication heavily affected the way they perform their duties while only a few who didn’t agree with the statement. It also established that majority of respondents agreed that communication with the supervisor affected the way they performed their duties with the minority disagreeing with this statement. The study concluded that internal communication does affect the way employees perform their duties and also does how the supervisors communicate with employees. This research recommended that KOLAL should conduct an audit on internal communication to establish the most effective strategies of communication for the organization and establish feedback channels.