How employees learn about corporate strategy

Abstract

PurposeThe purpose of this paper is to assess which communication channels are most frequently used by employees to gain corporate strategic information and the impact of seniority on communication channel chosen.Design/methodology/approachA Saudi Arabian manufacturing company employing a wide range of both professionals and rank and file workers was used as the source of data. A total of 187 responses (85 per cent response rate) to an empirical questionnaire provided the data for analysis.FindingsThere are indications that employees are not satisfied with what they currently know and are eager to learn more about strategic direction. Results also show that rich communication channels such as one‐on‐one dialog and group meetings are preferred to lean ones such as bulletin boards, memos, and newsletters. Finally, more experienced employees utilize a wider variety of communication channels in garnering strategic information.Research limitations/implicationsFindings may not be generalizable to other populations or other companies within the same population.Practical implicationsPracticing managers need to consider the communication sources for strategic information. Further efforts must be made to maximize the communication of strategic intent through the use of rich communication channels for all employees.Originality/valuePresently there is little research explaining the importance of different communication mechanisms for the transference of strategic information. This research fills that void as it shows the relationship between employee tenure and communication mechanism used to understand strategic direction. This research shows that practicing managers should use rich communication channels (face‐to‐face or group meetings) when communicating strategic intent.