Effectiveness of Internal Communication

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INTERNAL COMMUNICATION OF MUTUAL TRUST BANK LIMITED


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INTERNAL COMMUNICATION OF MUTUAL TRUST BANK LIMITED

By

Mahody Hasan Sami

ID: 0810264

An Internship Report Presented in Partial Fulfillment

of The Requirement for The Degree

Bachelor of Business Administration


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To

Mr. Monzoor Morshed

Lecturer, Human Resource Management,

Independent University, Bangladesh

Sub: Submission of the Internship Report.

Dear Sir,

It is an enormous pleasure to submit my report INTERNAL COMMUNICATION OFMUTUAL TRUST BANK LIMITED which was assigned by you as a requirement of the

Internship Program - a prerequisite for the completion of the BBA program.

I would like to convey my gratitude to you and thank you for giving me the opportunity to work

on this topic under your thoughtful coordination. Utmost care and concentration has been given

in preparation of this paper. I have tried my best to present information that is valid and reliable

so that the findings are as accurate as possible. Due to various constrains, there may be some

mistakes for which I beg your kind consideration.

Finally, I shall be glad to answer your any kind of query related to this report, if necessary.

Sincerely yours,

_________________

Mahody Hasan Sami

ID # 0810264

November 21, 2012


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Acknowledgement

First, I would like to thank AlmightyALLAH who gives me the sense to understand what I am

doing and for making me successful to prepare this report.

I would like to take this opportunity to express my gratitude to my internship supervisor,

Monzoor Morshed, Lecturer, Human Resource Management and Independent University

Bangladesh for his continuous inspiration, supervision and patience. Without his guidance and

support it would not have been possible to come this far.

I would like to express my deepest gratitude to Mr.Abdul Mannan, Executive Vice President

(EVP) & Branch Manager of Mutual Trust Bank Ltd for giving me the opportunity to complete

my internship in such a reputed organization. I also want to thank, Fazlul Haq, Assistant Vice

President (AVP), for her intimate guidance & encouragement that helped me a lot to accomplish

the project.

I also want to remember Masbah Uddin Chowdhury Senior Assistant Vice President (SAVP),

Kaiser Walaullah First Assistant Vice President (FAVP), Md Shamim Kabir Junior Assistant

Vice President (JAVP), Md Rokonuzzaman Khan Senior Officer (SO), Nasreen Akhtar Senior

Officer (SO), Md Miftahul Hossain Junior Officer (JO) and Md Mahfuzul Haque Junior

Assistant Vice President (JAVP) whose support inspired me from beginning to end of my period

in Mutual Trust Bank Ltd.

I would also like to thank all of my colleagues of Mutual Trust Bank Ltd. (MTBL), Panthopoth

Branch for sharing their experience and knowledge with me. My sincerest thanks go to the all

others who were involved and helped directly and indirectly in preparing this report.


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Table of Contents

Contents Page

Executive Summery 6

Methodology 7

Company Profile 9

Introduction

Internal Communication 11

Problem Statement 11

Purpose of the Study 11

Literature Review

Internal Communication 12

Intranet 12

Meeting 13

Face to face Communication 14

Intercom 14

Conceptual Framework 14

Research Questions 15

Hypotheses 15

Analysis 16

Findings 25

Recommendations 26

Conclusion 27

Reference 28

Appendix 31


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Executive Summery

Mutual Trust Bank Limited (MTBL) is one of the leading commercial banks which has

ingenuous objective of bringing about qualitative changes. It has achieved immense success in

all areas of ultimate objective in improving the socio-economic development of the country. The

study covering the topic Internal Communication of Mutual Trust Bank Ltd attempts to

evaluate the overall condition of internal communication of the bank as the partial fulfillment of

internship course of BBA program in Independent University Bangladesh. It focuses on the

necessity, variables and gap in the communication process in the internal context of its

Panthapath Branch. The report aiming at finding differences in employees attitudes towards

making and maintaining efficient internal communication. Four basic tools for internal

communication of MTB- intranet, meeting, face to face communication The report also

recommends to the gap in this context. It also shows the analytical sense developed by analyzing

the output processed on the survey in that branch.


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Methodology:

Research Design :

The research is a descriptive research. The research question and hypothesis clearly supports my

research design.The conceptual framework of the proposed study depicts the research variables and relationship

between themselves. In this study, I needed to investigate the relationship of intranet, meeting, face

to face communication and intercom with internal communication in context of Mutual Trust Bank

LTD. According to Cooper and Schindler (2003), research that studies the relationship between two

or more variables is also referred to as a co-relational study. Therefore, a co-relational research

design has been selected in order to find out the appropriate answers to the research questions and to

test the hypotheses. The model of my conceptual framework also suggests this type of design. Here

intranet, meeting, face to face communication, and intercom are considered as independent variables

and internal communication is considered as a dependent variable.

Research Approach:

To investigate research questions, I gathered information from Panthapath branch of Mutual Trust

Bank Ltd. With a view to getting easy response and meeting easy understanding of respondents the

questionnaire was designed only asking for the degree of agreement among the hypothesis related

sense about independent variables and there was no question for describing respondents own ans.

Sampling Method:

The sampling frame for the study was collected from the supervisor. Only Panthapath brach was

selected from the sampling frame for the purpose of the study because of time and financial

constraint. A random sampling method was used as a probability sampling technique.

Survey Instrument:To collect data from primary sources, a set of structured questionnaire was used because it is the best

instrument for the survey in this case. Surveying many people with personal interviews or

observations would be impossible. With questionnaires, no responses of the respondents can be

missed out. It gives more time to the respondents to think and then give the answers. A sample of the

questionnaire has been attached in the appendix. Internal Communication was measured using four


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(Section I, Question 1-4) questions and on five-point Likers scale. Use of Intranet was measured

using three (Section II, Question 1-4) questions and on five-point Likers scale. Face to face

communication was measured using 3 (Section III, Question 1-3) questions and on five-point Likers

scale. Role of meeting in communication was measured using 3 (Section IV, Question 1-3) questions

and on five-point Likers scale. Role of intercom in internal communication of MTB was measured

using 3 (Section IV, Question 1-3) questions and on five-point Lakers scale.

Data Collection:

This present study is unique one in context of Mutual Trust Bank Ltd. As a result, secondary sources

of data were used less for the present study. Therefore, it required primary data to examine the

research problem and to verify hypothesis. To collect data from the primary sources, I used

questionnaire method. This method is commonly used in HR survey to collect data from primary

sources. Frequent reasons are accounted for the choice of this research method. Firstly, it allows

large amounts of information to be obtained at relatively low cost and secondly more accurate

responses are obtained because respondents bias is avoided.

Data Analysis:

After data collection, degree of agreement of variables was counted or was checked whether they

even exist or not. Then Microsoft excels and Microsoft Power Point were used as statistical data

analysis tools to process the data and to show the result in pie chart.


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Company Profile

The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a

public company limited by shares for carrying out all kinds of banking activities with Authorized

Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each.

The Company was also issued Certificate for Commencement of Business on the same day and

was granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act

1991 and started its banking operation on October 24, 1999. As envisaged in the Memorandum

of Association and as licensed by Bangladesh Bank under the provisions of the Banking

Companies Act 1991, the Company started its banking operation and entitled to carry out the

following types of banking business:

(i) All types of commercial banking activities including Money Market operations.

(ii) Investment in Merchant Banking activities.

(iii) Investment in Company activities.

(iv) Financiers, Promoters, Capitalists etc.

(v) Financial Intermediary Services.

(vii) Any related Financial Services.

The Company (Bank) operates through its Head Office at Dhaka and 77 branches. The

Company/ Bank carry out international business through a Global Network of Foreign

Correspondent Banks.

Mission

We aspire to be the most admired financial institution in the country, recognized as a dynamic,

innovative and client focused company, which offers an array of products and services in the

search for excellence and to create an impressive economic value.


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Vision

Mutual Trust Bank's vision is based on a philosophy known as MTB3V. We envision MTB to

be:

1.One of the Best Performing Banks in Bangladesh

2.The Bank of Choice

3.A Truly World-class Bank

The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a

public company limited by shares for carrying out all kinds of banking activities with Authorized

Capital of BDT 200 million divided into 2,000,000 ordinary shares of BDT 100 each. At present,

Authorized Capital of the company is BDT 10,000,000,000 (BDT 10 Billion) divided into1,000,000,000 (One billion) ordinary shares of BDT 10 each.

Company Registration No:

C38707 (665)/99 on September 29, 1999

Bangladesh Bank Permission No:

BRPD (P) 744(78)/99-3081 on October 5, 1999

Registered Office:

MTB Centre

26 Gulshan Avenue, Gulshan 1

Dhaka 1212, Bangladesh.

SWIFT Code: MTBL BD DH


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Introduction

Internal Communication

Communication is an integral part of the Banks overall processes. The main goal of the Banks

internal communication is to support the organization in achieving the overall goals described in

the Banks mandate, mission and strategy. Furthermore, the internal communication shall

strengthen the organizational culture and feeling of commitment among the staff. Mutual

information sharing is an important principle to ensure efficient internal communication. Key

policy messages are discussed in the decision-making bodies of the Bank. When items are

discussed in the decision-making bodies there should be a short suggestion on how they will be

communicated both externally and internally. Research on internal communication is cross

disciplinary, and the number of available definitions reflects this fact. Internal communication

can be termed internal organizational communication, employee relations (Quirke, 2000),

management communication, internal media, cross-departmental communication (Greenbaum,

Clampitt, & Willihnganz, 1988), business or corporate communication (Kitchen, 1997), strategic

communication (Argenti, 2007) or integrated internal communications (Kalla, 2005).

Du Plessis and Boshoff (2008, p.3) defined communication as the use of a medium to convey a

message between individuals or groups and it is a means of relating to each other.

Problem Statement:

The main focus of this study is on the internal communication taking place by various

communication channels within the Panthapath branch of Mutual Trust bank across all

departments. Internal communication is influenced with the communication method or medium.

To understand internal communication this study is to investigate the relation between intranet,

intercom, face to face conversation and meeting with internal communication in context of

Mutual Trust Bank.

Purpose of Study:

The purpose of this study is to understand the relation between intranet, intercom, face to face

conversation and meeting with internal communication in context of Mutual Trust Bank.


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LITERATURE REVIEW

The main focus of this thesis is on the internal communication taking place within the

Panthapath branch of Mutual Trust bank across all levels. Additionally, of interest are the

channels utilized and the means by which this branch measures their internal communication.

This chapter presents a review of the literature in accordance with four themes; the role and

function of internal communication, its management, channels and previous research on internal

communication in banks. This will then provide the foundation for the discussion and analysis of

the research findings in later chapters.

An organization's adaptability to external changes relies on efficient communication internally

that exists within a company, between and among employees


Internal communication is the glue that binds together an organizations employees with its

values and objectives.

In its simplest form internal communication is the exchange of information and ideas within an

organization (Bovee & Thill, 2000, p.7) or the formal and informal communication taking

place internally at all levels of an organization (Kalla, 2005, p.304). Welch and Jackson (2007)

view internal communication from a stakeholder approach and define it as the strategic

management of interactions and relationships between stakeholders at all levels within

organizations (p. 183).

Today, the function of internal communication includes the transmission of organizational goals,

activities, new developments, achievements and personal contributions as well as strategic

visionary messages (Welch & Jackson, 2007). Welch and Jackson (2007) suggest the function of

internal communications has four dimensions: (1) internal line management, (2) internal team

peer communication, (3) internal project peer communication and (4) internal corporate

communication (as noted in table 1).

Intranet: Intranets can help users to locate and view information faster and use applications

relevant to their roles and responsibilities. Intranets allow organizations to distribute information

to employees on an as-needed basis; Employees may link to relevant information at their


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convenience, rather than being distracted indiscriminately by electronic mail. Intranets are also

being used as a platform for developing and deploying applications to support business

operations and decisions across the internetworked enterprise. Information is easily accessible by

all authorized users, which enables teamwork. Every user has the ability to view the same

information within the Intranet.

The intranet is the most important channel for MTBs internal communication. MTB staff can

easily find the information they need to perform their daily work. Internal news is updated in a

timely manner.

Communications has the overall editorial responsibility for MTBs intranet s ite in cooperation

with HR.

Meeting: One dictionary defines a meeting as an act or process of coming together as an

assembly for a common purpose. A meeting is a gathering of two or more people that has been

convened for the purpose of achieving a common goal through verbal interaction, such as

sharing information or reaching agreement. Common types of meeting include:

Ad-hoc meeting: a meeting called for a special purpose

Board meeting: a meeting of the Board of directors of an organization

Investigative Meeting: generally when conducting a pre-interview, exit interview or a

meeting among the investigator and representative

Kickoff meeting: the first meeting with the project team and the client of the project to

discuss the role of each team member

Management meeting: a meeting among managers

Off-site meeting: also called "offsite retreat" and known as an Away-day meeting.

One-on-one meeting: between two individuals

Staff meeting: typically a meeting between a manager and those that report to the

manager

Team meeting: a meeting among colleagues working on various aspects of a team project

Work Meeting: which produces a product or intangible result such as a decision
http://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Board_of_directors


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Face-to-face conversation: From a psychological perspective there are a number of positive

features about face-to-face meetings that cannot always be achieved as well via other forms of

communication. Face-to-face meetings allow employees to engage in and observe verbal and

nonverbal behavioral styles that cant be captured in most computer mediated communication

devises. There are nuances associated with hand gestures, voice quality and volume, facial

expressions, and so forth that are simply not captured in email. One-to-one and one-to-many

forums where people are physically present. Examples include a 'cascade' of team meetings or

briefings, conferences, site visits, 'back to the floor', consultation forums, 'brown bag' lunches,

round-table discussions, 'town meetings', etc.

Intercom: An intercom (intercommunication device), talkback or door phone is a stand-alone

voice communications system for use within a building or small collection of buildings,

functioning independently of the public telephone network. Intercoms are generally mounted

permanently in buildings and vehicles. Intercoms can incorporate connections to public address

loudspeaker systems, telephones, and to other intercom systems. Some telephones include

intercom functions that enable paging and conversation between instruments of similar make and

model. Examples include Panasonic model KX-TS3282W /B), AT&T models 945 and 974, and

TMC model ET4300.

Conceptual Framework

Intranet Intercom Face to face

conversation

Meeting



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Research Questions:

Is there any significant relationship between intranet and internal communication in context

of Mutual Trust Bank Ltd?

Is there any significant relationship between intercom and internal communication in contextof Mutual Trust Bank Ltd?

Is there any significant relationship between face to face conversation and internal

communication in context of Mutual Trust Bank Ltd?

Is there any significant relationship between meeting and internal communication in context


Hypotheses:

There is a significant relationship between intranet and internal communication in context of

Mutual Trust Bank Ltd?

There is a significant relationship between intercom and internal communication in context


There is a significant relationship between face to face conversation and internal

communication in context of Mutual Trust Bank Ltd?

There is a significant relationship between meeting and internal communication in context of

Mutual Trust Bank Ltd?


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Indication of The degree to which employees agree/disagree with internal communication

regarding intranet:


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Agree

48%Strongly agree

52%

0%

Quickly communicate with all the employees through

intranet


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Indications of the degree to which employee agree/disagree with internal communication

regarding Face to face communication:

Strongly agree

48%

Agree

52%

Can participate actively in the process of face to face

communication

Strongly agree

47%

Agree

43%

Uncertain

5%

Disagree

5%

Face to face communication is flexible


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regarding meeting communication:

Strongly agree

19%

Agree

28%

Uncertain

43%

Disagree

5% Strongly Disagre

5%

Dependent on face to face communication


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regarding meeting Intercom:


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FFINDINGS

1. The internal communication is well enough that meet full requirement in internalcommunication.

2. The internal communication system of MTBL scopes free flow of information needed.3. HR depends on internal communication system of MTBL.4. MTBL removes its communication gap by using Intranet with quick responsiveness.5. More employees should be introduced with the accessible free flow of information by

intranet.

6. Employees professional and official data are well maintained for active internalcommunication with availability of necessary downloadable files and data.

7. Face to face communication plays an active role in internal communication in context ofMutual Trust Bank Ltd.

8. Some employees are unaware about their downloadable files and data from MTBLs owndatabase server or by intranet.

9. There is standard deviation among the employees of various levels in communicatingface to face. But higher level employees rely on this type of communication.

10.Meeting is a reliable, responsive and flexible process to the employee of MTBL but itneeds to be more inspiring and mass participating since some employees often find it

boring, barrelful or uncertain to express themselves.

11.Intercom provides flexibility but in some cases employees feel barriers in gaining desiredstate of communication. For increasing efficiency and facility of such kind of

communicational device, some employees want telephone facility in replacement of

intercom. Although upper level employees have standard deviation about this regard.


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RECOMMENDATIONS

1. More employees should be made aware of the usage of intranet so that they come toknow about the availability of downloadable files for effective communication internally.

2. Free flow of information should have stimulation in order to remove the uncertainty ofinternal communication among employees.

3. Face to face communication should be made more flexible and dependable.4. Meetings should be made more participating and inspiring for all employees so that they

do not get bored.

5. For the removal of the barriers and standard deviation of perceived value TNT telephoneor limited service of PABX telephone service should be introduced for effective internal

communication of MTBL.


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CONCLUSION:

Organization does just fine by leaving people alone to do their jobs and let internal

communication take care of itself.

It can improve the effectiveness of the organization. The more information people have, the

more quickly they get it, and the better connections they have with others in the organization, the

better the work of the organization gets done, and the better jobs individuals do. The better jobs

they do, the better they feel about their jobs and about the organization. The ultimate

beneficiaries of all this are the target population, the community, and the organization, which

finds itself with committed and efficient staff members, satisfied participants, and community

respect. Internal communication makes problem-solving easier by providing a channel for

everyone's ideas and opinions. Solutions can come from unexpected directions, but only if there's

the possibility that they'll be heard. Internal communication keeps everyone informed of what's

going on in the organization. No one gets any unpleasant surprises, and everyone has the chance

to deal with changes, good news, and bad news together. It allows the organization to respond

quickly and efficiently to change, emergencies, etc. Internal communication makes problem-

solving easier by providing a channel for everyone's ideas and opinions. Solutions can come

from unexpected directions, but only if there's the possibility that they'll be heard. It creates a

climate of openness within the organization. If everyone feels he has access to whatever

information he needs or wants, and can talk to anyone in the organization about anything, it

encourages good relations among people, promotes trust, and forestalls jealousy and turf issues.

Promoting internal communication is one of the most important things organization can do to

make sure that it runs smoothly and effectively. Good internal communication will flourish if

one can create an organizational climate of openness that is conducive to the free flow of

communication and information in all directions; adjust his organization's systems or develop

new ones to encourage, rather than discourage, internal communication; and create cleardefinitions of what needs to be communicated and by whom.


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3. My downloadable files and data are available. 1 2 3 4 5

4. I can quickly communicate with all the employees through intranet. 1 2 3 4 5

Section III

Please indicate the degree to which you agree/disagree with each one of the statements below

regarding Face to face communication in context of Mutual Trust Bank Ltd:

1. I can participate actively in the process. 1 2 3 4 5

2. This type of communication is flexible for me. 1 2 3 4 5

3. I am dependent on this type of communication. 1 2 3 4 5

Section IV


regarding the usefulness of meeting in context of Mutual Trust Bank Ltd:

1. Meeting is reliable for internal communication. 1 2 3 4 5

2. This type of communication is responsive. 1 2 3 4 5

3. I do not get bored using this type of communication. 1 2 3 4 5

Section V


regarding the usefulness of intercom in context of Mutual Trust Bank Ltd:

1. I feel flexible in communicating with intercom. 1 2 3 4 5

2. I feel barrier in communicating by intercom. 1 2 3 4 5

3. I want telephone facility in replacement of intercom. 1 2 3 4 5

Documents

Effectiveness of Internal Communication