A STUDY ON INTERNAL COMMUNICATION AT THE STATE

BANK OF INDIA

Submitted by

Amisha Yadav

Division: A PRN: 18010224206 Class: 2018-23

of

Symbiosis Law School, NOIDA

Symbiosis International (Deemed University), PUNE

In

August, 2019

Under the guidance of

Ms. Sweta Saurabh

Assistant Professor
 CERTIFICATE

The project entitled “A study on Internal Communication at the State Bank of India” submitted to the
Symbiosis Law School, NOIDA for Business and Managerial Communication as part of Internal
assessment is based on my original work carried out under the guidance of Ms. Sweta Saurabh from
July, 2019 to August, 2019. The research work has not been submitted elsewhere for award of any
degree. The material borrowed from other sources and incorporated in the research report has been
duly acknowledged. I understand that I myself could be held responsible and accountable for
plagiarism, if any, detected later on.

Signature of the candidate

Date:
 ACKNOWLEDGMENT

First of all, I would like to thank and praise the Almighty, for showering his blessings on me
throughout my research project. I am also grateful for the good health and well-being that was
of utmost necessity.

Secondly, I would like to express my deep and sincere gratitude towards our research guide,
Dr. Sashi Bhushan Ojha, for giving me the opportunity to research on the given topic. Also, I
would like to thank him for providing me with invaluable support throughout my research. It is
a matter of great privilege and honor to work and learn under such guidance and support. I
would also like to thank him for showing patience and empathy. I am indebted to him for
sharing his expertise and sincere and valuable encouragement extended.

I also thank the staff especially the Library of the institution for their kindness and help.

Finally, I place on record, my thanks to all those people who have supported me immensely to
successfully complete this research project indirectly.

Thank you
 INDEX

1. Introduction……………………………………………………………………………………1
2. Literature review………………………………………………………………………………3
3. Objectives of the study………………………………………………………………………..4
4. Research methodology………………………………………………………………………..5
5. Findings and analysis………………………………………………………………………….5
6. Results and discussion………………………………………………………………………..12
7. Conclusion……………………………………………………………………………………13
8. References……………………………………………………………………………………13
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“This paper is a study on internal communication at the State Bank of India. It looks into the vertical
flow of information and feedback at the bank that includes upwards communication and downward
communication.”

INTRODUCTION

Communication is a two-way process that involves the following elements such as a sender, a
receiver, a message, a medium, a channel, a response and feedback. Though, it may not be enough to
have just these elements, there also needs to be a sense of understanding and cooperation between
the communicating parties. It is also essential to have a common frame of context or reference for a
communication to be successful and meaningful. Essentially, the process of communication involves
the sender, the communicator and the receiver. Both should necessarily share a mutually accepted
code.

The context in which the communication takes place is called the “communication environment.”
The content of the code can be sent in through any medium such as oral, written or non-verbal using
channels such as mikes, body, pictures or text in the form of encoded messages. A communication
process involves a number of components, they are:-

1. Idea or impulse that arises in the sender’s mind

2. Formal expression of the idea or impulse using a medium and channel which is, encoding

3. Interpretation of the message by the receiver which is, decoding

4. Reaction or response of the receiver

5. Conveying the reaction/response in the feedback using a medium and channel

6. Decoding of the feedback received

Organizational communication may be defined as the channels and forms of communication that
are used within an organization they can be government organizations, non-profits organizations or
corporate bodies. It covers both aspects of communication in an organization which are
communications within an organization and public-facing communications. Individuals trained in
organizational communication can work various departments such as in public affairs, human
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resources, policy and advocacy, employee training and management, media management, public
relations, marketing, research and instruction, and communications consulting among other areas.

Internal communication is the transmission of information between organizational members or

parts of the organization. It takes place across all levels and organizational units of an organization.
Internal communication is the function responsible for effective communication among participants
within an organization. The professional practice of Internal Communications draws on the theory
and practice of related professions, not least journalism, knowledge management, public
relations, media relations, marketing and human resources, as well as wider organizational
studies, communication theory, social psychology, sociology and political science.

ABOUT STATE BANK OF INDIA

State Bank of India Group is the biggest financial services corporation in India. It has its
headquarters in Mumbai. SBI provides a wide range of products and services to individuals,
commercial enterprises, large corporates, public bodies and institutional customers through its
various branches and outlets, joint ventures, subsidiaries and associate companies. The Group
comprises of State Bank of India, its various non-banking subsidiaries and joint ventures, and foreign
banking subsidiaries and joint ventures.

The Bank has always placed the interest of the common man at its core. SBI has thoughtfully
designed products and services to meet all the needs of the financial life cycle of an average Indian.
On the technology front, SBI has expanded the digital base of the Bank manifold in recent years. It
plays a vital role in making the Government of India’s Digital India initiative a reality. SBI has
always been on the forefront to embrace changes without losing sight of its credos like transparency,
sustainability, social responsibility and customer service.

Their ultimate goal is to be prompt, polite and proactive with their customers. To speak the language
of young India and to create products and services that can help their customers achieve their goals.
In order to fulfil this goal there is needs to be a communication structure that can impact the
organization in a drastic way and be clearer about the ultimate goal that they endeavour to reach.
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LITERATURE REVIEW

Modelling internal communications in the financial services sector1

As we a fair idea about internal communication at a bank it can be understood to be in the context of
the senior manager and the subordinate employees who work in that particular banking organisation.
We are also well aware of the importance of the role played by the employees at an organization and
that they play a very crucial role in the success of the organization. The authors of the article,
“Modelling internal communications in the financial service sector” have observed that there has been a
ever increasing competition in the financial service environment which has recently forced
organizations to consider the role that their employees might play in the attainment of a genuinely
sustainable source of competitive advantage. The role of internal communication has thus acquired
particular significance as organizations strive to communicate customer needs, organizational values
etc. to staff working at every level and, moreover, to encourage staff to maintain a two‐way dialogue
with management.
The article provides what all benefits that an internal communication can provide to an organization,
they are, first, tell, which means simply informing people of the direction instructing them what is to be
done, secondly, sell, which involves some form of anticipation of a backlash which requires some
persuasion. Thirdly, it talks about consult, which incorporates the process of seeking advices and
suggestions in the decision making process and lastly, involve which includes varying degrees of
involvement from the employees. The authors have also exclusively mentioned that internal
communication well too. The strategy of positioning should consider the market and what does the
organization know about its audiences' needs and also how should it segment its audience. Two very
important aspects mentioned in the article are the message and measurement. Message includes the
main objective that the organization is trying to achieve, the tone that the message has to be conveyed
in, the channel through which the message is to be sent and how would the message maximise reach
and cut through of the message. Measurement clearly mentions the success criteria of the organization,
and the leads and laggings of the firm.
The article covers some very important aspects relating to internal communication at financial service
sector, and extensively elaborates on the significance of employee satisfaction by the means of
communication.

1
Asif, S. and Sargeant, A. (2000), "Modelling internal communications in the financial services sector", European Journal
of Marketing, Vol. 34 No. 3/4, pp. 299-318.
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The influence of internal communication on employee engagement2

The authors of this article lay emphasis on employee retention and tells that it is increasingly
influenced by communicating effectively between managers and employees. Communicating
strategies about career development and management can be essential to retaining an existing work
force, and engaging employees to perform at their peak ability. It is also essential to keep employees
informed with personal, relevant, and engaging communication gives companies a competitive edge
and has direct results on the bottom line.

The authors of the article have elaborated upon internal communication and its significance and
independence in the functioning within public relations and corporate communication. Internal
communication has two main roles: spanning provision of information and creating of a sense of
community within organizations. Developing a sense of community through internal communication
efforts involves establishing and maintaining relationships between an organization, supervisors, and
employees. The authors have also given an insight on the measure of internal communication at two
levels, which are, organizational and supervisor.

It can be summed up from this article that internal communication is an important concept and
integral to internal public relations with links to positive organizational and employee outcomes such
as employee engagement.

OBJECTIVES OF THE STUDY

The objectives of this research paper are set in a way to get a better understanding of the
communication in a banking organization.

 To determine the effect of communication from the upper to the lower level and vice versa in
an organization.
 To analyse and illustrate the means of communication that an organization uses for the flow
of information and feedback.
 To find out any new and innovative ways that an organization can use for a more efficient
flow of information between different levels of the organization.

2
Karanges, E., Johnston, K., Beatson, A., & Lings, I. (2015). The influence of internal communication on
employee engagement: A pilot study. Public Relations Review, 41(1), 129-131.
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RESEARCH METHODOLOGY

This research paper concerns with the study of communication in the banking sector. In order to
examine the communication network in a banking organization, primary data has been used. The
means of a telephonic interview and questionnaire has been used so that it is easier to interpret and
analyse the data. Other information about the bank and communication in general has been obtained
from secondary sources that included journals articles, books, and the information provided on the
internet. An amalgamation of the primary and secondary data would help us in gaining better
understanding of communication the banking sector.

FINDINGS AND ANALYSIS

The survey has been conducted at the State Bank of India, Civil Lines branch, Bareilly.

Downward communication: From the manager of the bank

I conducted a telephonic interview with the manager of the bank. His name is Alok Yadav and has a
work experience of 21 years with the State Bank of India. It was a short and precise interview
regarding internal communication at the bank. Given below are the questions and analysis of the
interview in a detailed manner.

Q1. How do you communicate with employees who work in other departments?

A1. Mostly via e-mail, as it fast and easier.

E-mail is form of written communication and is formal in nature, a well-structured e-mail provides a
clear knowledge regarding the objective of the sender and also, it becomes a source of evidence for
any future references in the organization.

Q2. Which mode of communication according to you is the most effective?

A2. Face to face, as it is direct and the work gets done immediately.

Face to face communication is an oral form of communication where the individuals can talk and ask
any query at that very time. Here, it is being considered most effective because it creates a kind of
obligation on the receiver to do the assigned task immediately. Here, the chances of mistake in the
performance of the assigned task is less as the person who is receiving the communication can clear
any doubts immediately.
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Q3. What according to you is the most effective mode for an urgent communication?

A3. Telephone it is easily accessible to all employees irrespective of whether they are present at the
branch or not?

Communication via telephone is a useful mode for urgent communication as it is instantaneous and
does not require the physical presence of the receiver as in the case of face to face communication. It
is a faster mode as no time is wasted in the process, however, there can be barriers, that is, technical
barriers in this mode such as technical glitches that may cause this mode to be ineffective sometimes.

Q4. Are there any problems faced in the process of communication?

A4. Yes.

There can be several reasons for the problems faced in the process of communication. It may be due
to difference in perceptions and viewpoints, lack of attention and interest or it may also be due to
technical glitches.

Q5. What is the communication barrier faced most commonly?

A5. Psychological barrier.

Psychological barriers are highly influenced by the mental condition that the communicators are in
and is disturbed by mental disturbance. If the people involved in communication are not emotionally
well, they are unable to communicate properly. Every person’s mind is unique and communication
does not work like that in machines or in numbers.

Q6. Is informal mode of communication used at you bank? If yes, what?

A6. Yes. Informal communication is done by the means of ‘whatsapp.’

Informal mode of communication does include ‘whatsapp’ communications. It may include sending
daily greetings, birthday wishes or other informal conversations. It creates a more strong relation
among the employees as they can talk about content outside of work. However, ‘whatsapp’ is also
being used as a formal mode too these days to send notices regarding work.
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Upward communication: From lower subordinates

Following is the analysis of the answers received from the lower subordinates at the State Bank of
India by means of online questionnaire. 6 responses have been collected from the State Bank of
India. The posts consisting of 2 accountants, 2 field officers, 1 cashier and 1 MBA.

Maximum responses are for face to face communication as it is an instantaneous mode of

communication. It generally does not have noise in the process of communication. It is direct and
convenient and saves times as compared to the other modes of communication. It is quick and direct.
Others modes such as telephone and e-mails are also used for formal communication.

It is evident that oral form of communication is a more preferred mode of communication at this
bank. Oral communications is mote preferable because it save time, gives immediate feedback,
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creates a personal contact and is very useful in difficult situatuions.it instils cooperative spirits and
also helps in keeping secrecy of the content.

Maximum responses go for e-mails since this is because a well-structured e-mail can provide clear
and systematic instructions regarding what is supposed to be done. It is serves as a means of
evidence also as it is in written form and can be used in future when needed.

There is an easy accessibility of the managers at bank as the responses show that the employees can
communicate with the manager on a daily basis. This is a good signal as daily communication
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improves personal relations and removes any kind of superiority or inferiority complex in the
organization.

Employees need a constant encouragement for the success of an organization. This question points
towards the necessity of such encouragement. The manager of the bank encourages the employees to
offer new ideas just sometimes as there is not much scope for any change in this organization
happening from the lower level.

There are always some of problems faced in any communication system there can be various reasons
to it. These barriers come up in the form of barriers. Here, it can be seen there are problems faced by
the employees while communicating.
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This question shows a mix of responses, an organization can face various forms of barriers, they can
be, language barriers, attitudinal barriers, psychological barriers and many others. Language does not
appear as a barrier in this organization as the employees are well trained before they join.

It is very essential for a manager to give regular feedback to the employees at it encourages the
employee and also improves the efficiency of the organization because the flaws can be rectified
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with such feedbacks. The responses shoe that the bank manager quite often gibes feedbacks to the
employees.

The most effective form of communication has mixed responses. Most preferred mode among the 6
responses turned out to be e-mails, formals telephone calls. These are more preferred because they
provide clearer instructions and are quick and less time consuming.

One of the most important suggestions that I found to be for the improvisation of the communication
system at the bank was the incorporation of a proper feedback mechanism at the branch that would
help the branch in achieving its goals. Other suggestions such as informal get together improve the
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personal relations of the coworkers, more use of telephonic communication has also been suggested
as it saves time.

RESULTS AND DISCUSSION

State Bank of India, in its internal communication uses various forms of communication mode. For
the downwards communication formal e-mails, formal calls and face to face communications are
used. Downward communications consists of messages that flow from upper to lower level of the
banks employees. Through this system employee activities are directed, attitudes and behavious are
conveyed, instructions are provided, policies and procedures are passed on and performance is
evaluated. In the interview, it was observed that there is a wide usage of intercom and face to face
communications to direct the lower officials to do work. These modes are relied upon more because,
they are quick and immediate. However, there is a wide usage of e-mail also for formal
communications, as e-mails are a written form of communication they play a vital role because they
can be used as records for any future requirements and references. E-mails are used to communicate
any invitation, seminars, upcoming meetings, any transactions and a lot of other major activities.
Telephonic conversations on the other hand are used for short term goals and activities, that need to
been immediately or in the near future. All this could help the manager in performance evaluation of
the subordinate employees as communication would lead to more interaction.

Upwards communication system at the bank showed varied kind of responses as there were differing
views on the most effective form of communication. Upward communication is the is the flow of
messages from lower levels of the bank to the higher levels. It also showed different kinds of
suggestions for the improvisation of communication system at the bank. Most preferred mode among
the 6 responses turned out to be e-mails, formals telephone calls and one of the most important
suggestions that I found to be for the improvisation of the communication system at the bank was the
incorporation of a proper feedback mechanism at the branch that would help the branch in achieving
its goals in a better manner because employee engagement is a very important aspect of the success
of any organization.

 Using surveys and regression analysis this study confirms that internal organizational
communication and internal supervisor communication support workplace relationships based on
meaning and worth, and have a significant part to play in developing and maintaining optimal
employee engagement.
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To obtain the full perspective of internal communication system in banks and to understand the
employees a section, quarterly surveys can be conducted and sent for evaluation. For further study, it
can be a good suggestion to analyse the main advantages of internal communication from the
employees perspective and major their improvements.

CONCLUSION

As living beings, we need to express and understand the expressions of others. Like it or not, human
society thrives on communication. Civilizations have risen and fallen based upon how good they
were at maintaining sound relations with the rest of the world. Communication is, indeed, the very
lubricant that makes the machinery of human relations function smoothly. Therefore, the significance
of communication cannot and should not be underestimated. Sometimes, difficult situations in life
can be resolved by just sitting down and talking it out. Similarly, most personal, professional and
social disasters can be averted by maintaining clear, appropriate and unambiguous communication.
All we need is some effort on our part to identify and avoid barriers to effective communication to
make our lives and the lives of those around us better. Conscious communication is best achieved
when banks provide systems designed specifically to promote upward communication and use
downward communication to encourage it.

In order to improve the internal communication processes in the banks, the preference should be
given to the issues that are important to communicate with the employees. It is advantageous for
banks to use the information about other organization by analysing how they operate their internal
communication system, and according to the results apply the same system which is suitable for the
banking organization.

REFERENCES

Journals and Articles:

 Karanges, E., Johnston, K., Beatson, A., & Lings, I. (2015). The influence of internal
communication on employee engagement: A pilot study. Public Relations Review, 41(1),
129-131.
 Asif, S. and Sargeant, A. (2000), "Modelling internal communications in the financial
services sector", European Journal of Marketing, Vol. 34 No. 3/4, pp. 299-318.

Websites:

 www.sbi.co.in
 http://bankcontact.in
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