INTRODUCTION

The inherently social nature of human beings is reflected in their tendency to engage in continuous interaction with their community and environment, both in daily life and the workplace. This level of interaction plays an essential role in individual and collective development (Latuheru, 2020). Communication, in particular, plays a fundamental role in organizational activities, as it facilitates the flow of information between team members and departments. It also helps identify needs, fosters healthy relationships, increases productivity, and is essential for effective leadership. The significance of organizational communication in achieving business success has become an undeniable decisive factor, as supported by recent studies such as that by Adnan et al. (2020).

In their study, Rodríguez-Fernández and Vázquez-Sande (2019) asserted that communication within organizations has become increasingly important in recent times and is a highly sought-after skill in terms of employability. Professionals in this field have assumed greater responsibilities due to the increasing fragility of our rapidly changing reality, particularly influenced by the swift advancement of technology and its impact across various fields. This phenomenon can be attributed mainly to a growing awareness of the critical role played by organizational communication. If communication is not properly developed, it becomes challenging for collaborators to coordinate their efforts toward achieving the company’s objectives (Jonnedi et al., 2020). Currently, many organizations do not fully understand the importance of strong internal communication; they often place greater emphasis on external communication, mistakenly believing it is the sole means of achieving their objectives. However, the best advocates for a company and those who contribute most to forging a positive reputation are, in fact, its employees.

Much like people, companies cannot avoid communication. However, inadequate communication can lead to serious problems. These issues often stem from strict hierarchical structures that hinder open dialogue with superiors or other departments. In some cases, employees receive responses that do not efficiently aid in completing their tasks, which makes the work process more challenging. In the most extreme scenarios, they may not receive any response at all. Communication issues within companies highlight existing bureaucratic practices that can have negative consequences for workers. These consequences include increased stress, lack of motivation, and an unfavorable work environment. Furthermore, such problems can lead to poor job performance, hindering the achievement of set objectives and causing considerable damage to the company.

The Vehicle Financing Department of the company under study is also impacted by these issues, as it constantly encounters scenarios that reveal the lack of effective communication among its employees and sub-departments. Hierarchical communication patterns are evident, which discourage teamwork and can lead to suboptimal behavior and job performance. Furthermore, leaders who employ a downward communication approach lack effective techniques for conveying messages; response times in urgent situations are often prolonged, and there is a noticeable lack of emotional connection. This disconnect not only leads to discomfort and frustration but also demotivates employees from performing their work effectively. Recognizing these communication problems is crucial for preventing and resolving potential deficiencies. Addressing these issues will optimize process effectiveness, enhance employee satisfaction, foster a sense of belonging to the organization, and ultimately contribute to achieving shared goals.

In the international context, research conducted by Yildiz (2019) revealed a significant relationship between trust and communication in companies based in Istanbul, Turkey. This connection had a positive impact on employee commitment to the organization. Additionally, findings from Irawati et al. (2021) supported the notion that both productivity and organizational communication significantly influence employee retention and job satisfaction. From a different perspective, Shahrina et al. (2021) emphasized the importance of management and communication environments in organizations, particularly in their role in disaster prevention.

García (2018) conducted research in the Peruvian context and found that many individuals perceived a lack of effective internal communication assessments within organizations. This gap was closely associated with the importance of organizational culture and linked to leadership and management competencies. Similarly, research by Reyes and Ayarza (2018) highlighted the impact of communication on the work environment, underscoring the effectiveness of media and its contribution to corporate identity. Additionally, Escobar (2019) evidenced a direct relationship between organizational communication and military culture in headquarters located in Arequipa.

Based on this information, the main purpose of this research is to determine the correlation between organizational communication and job performance in the Vehicle Financing Department of a financial institution located in Lima, Peru, in 2022. To address this issue effectively, variable 1 (organizational communication) was divided into three dimensions: upward communication, downward communication, and crosswise communication. Variable 2 (job performance) was also divided into three dimensions: competence, productivity, and personal and professional development. The specific objectives include analyzing the connection between each dimension of variable 1 and variable 2.

This research study is justified from both theoretical and practical perspectives. From a theoretical perspective, it aims to contribute to the scientific knowledge in the field of Administrative Sciences. Additionally, it seeks to provide relevant and useful information for organizations across various sectors looking to improve their communication processes and, consequently, enhance employee performance. This study also intends to serve as a reference for the academic community, establishing a foundation for future research. From a practical perspective, this research will help organizations identify areas for improvement and weak points in communication among employees and between different departments and hierarchies. A data collection instrument based on an attitude scale, specifically the well-known Likert scale, has been developed. The successful confirmation of its psychometric properties ensured the accuracy of the obtained results, providing a robust methodological framework for this research.

During the research process, some limitations were noticed and rigorously addressed. One limitation was related to the time available for respondents to complete the questionnaire; the participants’ workload significantly restricted their availability, resulting in reduced time for participation in the study. The questionnaire was administered virtually to mitigate this limitation, allowing respondents to answer questions at their convenience. Since specific information about the Vehicle Financing Department was needed, using the company name could compromise the confidentiality of the data collected. To address this limitation, the company name was kept confidential and safeguarded according to the 7^th edition of the Publication Manual of the American Psychological Association (APA).

Organizational Communication

According to Goldhaber (2007), organizational communication refers to the act of transmitting messages within a network of interdependent relationships. This process is considered crucial because it fosters connections both with the external environment and among various departments and subdepartments within the organization. Four fundamental concepts stand out in this context: messages, networks, interdependencies, and relationships. To assess the effectiveness of a message, several factors are considered, including its linguistic form (whether verbal or nonverbal), the recipient (whether internal or external to the organization), the communication channel used, and the purpose of the message (which may relate to specific tasks, training or interpersonal interactions).

Upward communication is an essential component of organizational structures. It is characterized by the transmission of messages from employees to those in higher positions within the corporate hierarchy. This type of communication plays a crucial role in aligning individual plans and objectives with those of the company as a whole (Conexión ESAN, 2018). Furthermore, it allows superiors to gauge employees’ understanding of organizational culture, their interpretation of messages, and their satisfaction with the work environment, colleagues, and the tools provided for task completion (Ugulava & Baghaturia, 2023). Assessing this type of internal communication can facilitate collaboration and shared efforts to achieve the organizational vision, ultimately improving individual and overall company performance.

According to Papic (2019), downward communication is the most common type of formal communication within organizations. Its main objective is to convey organizational messages from the top management to various organizational levels through channels such as memos, manuals, publications, and briefings. However, it has been suggested that downward communication is becoming less relevant due to the rise of new digital communication channels.

According to Balarezo (2014), crosswise communication encompasses diagonal and horizontal communication. Diagonal communication occurs between individuals who do not have a direct and dependent relationship and who are at different hierarchical levels, whereas horizontal communication occurs between colleagues at the same level within the organization. In both scenarios, the fundamental purpose of crosswise communication is to enhance the effective transfer of messages and improve the understanding of information, ultimately helping the organization achieve its objectives.

Job Performance

According to Sakti et al. (2020), job performance refers to the actions and attitudes of employees regarding their commitment to achieving results. It is a fundamental factor for a company to be effective and successful. Consequently, organizations are highly interested in enhancing the job performance of their employees, which can be accomplished through continuous training and personal development programs. These initiatives aim to improve the skills and competencies of workers, enabling them to reach their full potential in the workplace. Moreover, job performance can be understood as a set of characteristics that measure the performance of a worker, group, or organization, against already-defined objectives, driving extraordinary results (Chiavenato, 2019). It is important to note that employee performance may not reach optimal levels if the organization fails to manage communication channels effectively; poor communication can lead to an uncomfortable and unsustainable work environment for employees (Manita et al., 2020).

Organizations have undergone significant transformations in recent decades to address the challenges of a globalized world that demands greater competitiveness. In this context, human capital stands out as a key element in boosting business productivity (Malpartida-Meza et al., 2022). Expanding on this idea, Febrial and Herminingsih (2020) argue that job performance signifies the successful completion of the employee’s tasks, which depends on their competencies, productivity improvement, and pursuit of personal and professional development. Griffin et al. (2007, as cited in González et al., 2022) assert that an employee’s competence reflects their ability to meet job requirements and satisfy expectations. An individual is deemed competent when they can effectively solve problems that arise in various situations, utilizing available resources and knowledge. In essence, job competence involves applying skills, knowledge, and resources effectively to fulfill job demands and expectations. This includes both the technical and functional abilities required to perform assigned tasks and the capacity to adapt and resolve problems efficiently within the work environment.

Labor productivity is crucial for companies, as it is closely linked to economic growth and development. This indicator allows for assessing the efficiency and effectiveness of human talent, equipment, and machinery in terms of resource management and job performance (Tezzele, 2022). According to Yang and Chen (2019), for workers to achieve greater productivity in their work, the company must ensure that communications are clear and accurate, provide truthful information, and have well-defined objectives that motivate employees to perform efficiently. Furthermore, effective communication allows for understanding the understanding the employees’ requirements for performing their roles properly.

METHODOLOGY

In line with the methodological framework of the research and drawing on the perspectives presented by Hernández-Sampieri and Mendoza (2018), the following aspects are defined:

· Approach: This research adopts a quantitative approach, as numerical data were analyzed, and employs descriptive and inferential statistics to investigate the relationship between the study variables.

· Scope: The study is correlational since its purpose was to conduct an in-depth analysis of the collected information to determine whether a relationship exists between organizational communication and job performance variables.

· Design: A non-experimental, cross-sectional correlational-causal design was used. This design was appropriate because the variables did not undergo any manipulation; data were collected only once (a single application of the instrument for each respondent), and aimed to analyze the connection between organizational communication and job performance in the organization under study.

The population for this research consisted of 52 sales executives from the Vehicle Financing Department of a financial institution in Lima, Peru. It is important to note that a census sample was utilized, i.e., the sample included all individuals in the population, as recommended by Hernández-Sampieri and Mendoza (2018).

Data collection was conducted using a survey technique, employing a structured questionnaire specifically designed for this study. The questionnaire followed a Likert scale format, presenting participants with a series of statements and asking them to indicate their level of agreement or disagreement on a five-point scale, with the following options: (1) strongly disagree, (2) disagree, (3) neither agree nor disagree, (4) agree, and (5) strongly agree.

Concerning the psychometric properties of the instrument used, validation was achieved through expert judgment. Three specialized professors from the School of Business Sciences at Universidad Científica del Sur evaluated the instrument and determined it was suitable for application. For reliability calculation, the McDonald’s omega coefficient was utilized instead of the traditional Cronbach’s alpha coefficient, as it provides greater stability and is less dependent on sample size and the number of items in the instrument. Although the instrument initially comprised 19 questions, one question was removed to maintain the reliability coefficient below 0.900, as recommended by Salkind (2022). Further details on the reliability analysis can be found in Table 1 below.

Table 1. Reliability Analysis of the Instrument’s Items.

Variables	1^stAnalysis		2^nd Analysis
Variables	No. of Items	McDonald’s Omega (ω)	No. of Items	McDonald’s Omega (ω)
Organizational communication	10	0.912	9	0.896
Job performance	9	0.876	9	0.876

Source: Prepared by the authors.

As shown in Table 1, after conducting the second reliability analysis, and obtaining optimal coefficients, it was deemed convenient to remove one of the items of the organizational communication variable. Consequently, the hypothesis testing was conducted with only 18 items. It should also be noted that both descriptive and inferential statistics were used for the processing and analysis of the data collected. The first stage of the data analysis consisted of describing the profile of the participants. For this purpose, Microsoft Excel 2019 software was used to create the database and perform the descriptive analysis of the data. The second stage aimed to assess the normality of the data and select the appropriate statistical techniques for hypothesis testing. This analysis was conducted using JASP version 0.17.1, an open-source software that offers various statistical tools for data analysis.

RESULTS

Regarding the survey participant profile, 40.39% were aged between 31 and 35 years, 63.46% were female, and 63.46% held a university degree. Furthermore, 40.39% of the participants reported having 11 or more years of experience working in the company under study.

Given a census sample of 52 participants, the Kolmogorov-Smirnov test was used to assess the normality of each variable in the study. This analysis aimed to provide a thorough explanation of the data. Table 2 below presents the significance levels for each variable, confirming that the collected data followed a normal distribution.

Table 2. Kolmogorov-Smirnov Test for Normality by Variable.

Variables	Significance Level (p)
Organizational communication	0.847
Job performance	0.730

Source: Prepared by the authors.

After reviewing Table 2 and noting that the significance levels were greater than 0.05, it was concluded that the data followed a normal distribution. Therefore, a parametric test was chosen for hypothesis testing; specifically, Pearson’s correlation coefficient was employed. For accurate interpretation of the obtained correlation coefficients, we utilized the scale provided by Salkind (2022), which categorizes correlation into five levels: very weak (0.000 to 0.200), weak (0.200 to 0.400), moderate (0.400 to 0.600), strong (0.600 to 0.800), and very strong (0.800 to 1). These categories facilitated the evaluation of the strength and direction of the relationships between the variables and dimensions addressed. Table 3 outlines each hypothesis:

Table 3. Study Hypotheses.

General Hypothesis

There is a direct and significant relationship between organizational communication and job performance in the Vehicle Financing Department of a financial institution in (Lima, Peru) in 2022.

Specific Hypotheses

1) There is a direct relationship between upward communication and job performance in the Vehicle Financing Department of a financial institution (Lima, Peru) in 2022.

2) There is a positive relationship between downward communication and job performance in the Vehicle Financing Department of a financial institution (Lima, Peru) in 2022.

3) There is a favorable relationship between crosswise communication and job performance in the Vehicle Financing Department of a financial institution (Lima, Peru) in 2022.

Source: Prepared by the authors.

Based on the earlier analysis, the hypotheses were tested using Pearson’s correlation coefficient, which yielded a series of positive coefficients supporting each proposed hypothesis (see Table 4).

Table 4. Testing of Research Hypotheses.

Type of Hypothesis	Variable 1	Variable 2	Significance Level	Pearson’s R	Interpretation
General hypothesis	Organizational communication	Job performance	0.000	0.781	Strong correlation
	Dimensions	Variable 2	Significance Level	Pearson’s R	Interpretation
Specific hypotheses	Upward communication	Job performance	0.000	0.685	Strong correlation
	Downstream communication		0.000	0.717	Strong correlation
	Crosswise communication		0.000	0.678	Strong correlation

Note: The correlation coefficients obtained in this study have been interpreted according to the scale developed by Salkind (2022).

Source: Prepared by the authors.

Table 4 shows that all significance values obtained were less than 0.05, confirming a relationship between the variables and dimensions considered in the study. Upon interpreting the Pearson correlation coefficients, all relationships were classified as strong based on Salkind’s (2022) interpretation scale.

DISCUSSION

Upon analyzing all the statistical data related to this research, we can confirm that the applied instrument demonstrates adequate reliability, supporting its use in this study. It is important to emphasize that a census sample was used, consisting of 52 sales executives from the Vehicle Financing Department of the company in question, which is the sole department responsible for managing this banking product. One limitation of the study was the time related to the time available for respondents to complete the questionnaire. Due to the nature of their work, their unsupervised schedule, and the fact that each sales executive was assigned to a different car dealership, coordinating their availability and willingness to participate proved to be a complex process.

Furthermore, this research emphasizes the critical role of effective organizational communication and its relationship to job performance. As noted by García (2018), Escobar (2019), and Shahrina et al. (2021), effective organizational communication contributes significantly to achieving optimal results within companies.

The research reveals a strong and significant correlation between the studied variables, organizational communication and job performance, in the Vehicle Financing Department of the company; a Pearson correlation coefficient of 0.781 indicates a positive and robust relationship between these two variables. These findings suggest that sales executives in the Vehicle Financing Department recognize the crucial role of organizational communication in their job performance. Moreover, effective and adequate communication is directly linked to important aspects such as competence, work productivity, and personal and professional development. Clear and open organizational communication allows sales executives to better understand their roles and responsibilities, providing them with relevant and timely information necessary to perform their tasks efficiently. This, in turn, enhances their competence in the performance of their duties by ensuring they possess the essential knowledge, skills, and resources. Furthermore, effective organizational communication is also related to increased labor productivity; when sales executives receive clear instructions, constructive feedback, and the necessary information to perform their work efficiently, they tend to be more productive and are more likely to achieve established objectives. Organizational communication also contributes to the personal and professional development of sales executives; open and transparent communication creates opportunities for learning, growth, and skill enhancement. Sharing information enables them to stay abreast of the latest trends and best practices in their field, which contributes to their long-term professional development.

This result is supported by Irawati et al. (2021), who found that both productivity and organizational communication have a significant and positive impact on employee loyalty and job satisfaction. Additionally, a study by Reyes and Ayarza (2018) emphasizes the importance of organizational communication in various aspects. They found that communication influences the organizational climate and highlighted how effective communication methods contribute to corporate identity. These findings indicate that adequate and effective communication can enhance the work environment and employees’ perception of the organization. In terms of the type of communication that correlates most with job performance, this study highlights that downward communication shows a significant correlation, with a Pearson’s R of 0.717. This suggests that communication from managers to subordinates is related to job performance; clear, direct, and effective downward communication provides employees with the necessary instructions, feedback, and guidance to perform their tasks efficiently.

Ultimately, companies that prioritize optimal organizational communication within their processes are likely to achieve favorable results in the job performance of their employees. This approach can help eliminate unnecessary bureaucracy and hierarchical communication, serving as a strategic advantage in achieving common goals and differentiating from the competition.

Moreover, this study holds significant value as a foundation for future research on the subject. It has the potential to inspire scholars to explore new aspects of organizational communication, broaden the research scope, and address additional questions that may arise. The findings and conclusions from this study can serve as a starting point for further investigation, providing a solid base for other researchers to build upon and expand. By identifying gaps or areas of interest still needing exploration, this study may motivate others to conduct complementary research. It will also be beneficial for companies across various industries to comprehend the importance of effective organizational communication and its contribution to job performance in achieving organizational goals.

CONCLUSIONS

The results of this study are highly significant as they demonstrate a strong and meaningful correlation between organizational communication and job performance. The positive correlation coefficient and significant level (p < 0.05) support the conclusion that there is a statistically significant relationship between these two variables. When examining the interactions between the dimensions of organizational communication (variable 1) and job performance (variable 2), strong correlations were identified according to the interpretation scale proposed by Salkind (2022). This scale helps evaluate the strength of the correlation, enhancing our understanding of the relationship’s magnitude. In summary, these findings reinforce the positive relationship between the investigated variables.

After a thorough analysis of the results, we conclude that there is a solid and significant relationship between “organizational communication” and “job performance” within the company under study. This conclusion is supported by a Pearson correlation coefficient of 0.781, indicating a strong connection between these two fundamental aspects. Sales executives involved in the research unanimously stated that effective communication management, both in internal processes and in interactions among organizational members, positively impacts job performance. This perception translates into benefits and positive outcomes linked to such performance. In other words, it is acknowledged that adequate communication in the organizational environment significantly contributes to achieving the established objectives.

In this sense, assertive communication is essential in the workplace as it encourages clear, respectful, and effective interactions among team members. By promoting clear communication, misunderstandings can be avoided and task efficiency can be improved. Moreover, assertive communication fosters mutual respect, creating a positive and collaborative work environment. This, in turn, strengthens organizational communication, facilitating the transmission of information, decision-making, and problem-solving. Ultimately, assertive communication enhances job performance, increasing productivity, work quality, and employee satisfaction.

Furthermore, research results indicate a strong and significant correlation between upward, downward, and crosswise communication with job performance. This finding suggests that the organization studied has successfully implemented effective communication management. It is important to highlight that this success stems from the full awareness of top management that effective communication is a determining factor for enhancing workforce performance and achieving the company’s strategic objectives.

Based on these conclusions, the following recommendations are proposed:

The financial institution under study should prioritize the development of effective internal communication using tools accessible to both managers and employees. This includes focusing on enhancing competencies, productivity, and personal and professional growth through leadership training and effective communication workshops. Additionally, implementing a system for continuous feedback and creating channels for suggestions can be beneficial. Job satisfaction surveys conducted periodically can help to gauge the effectiveness of these efforts and identify weaknesses, propose solutions, and prevent future communication failures within the company. Moreover, it is advisable to introduce team-building activities that encourage interaction among employees, as well as to organize regular events that foster a positive work environment. It is essential to ensure that all messages exchanged are clear and effective, thereby contributing to optimal job performance and overall organizational success.

Researchers are encouraged to conduct studies that incorporate the variables explored in this research and reflect diverse realities. Contributions in the field of Business Sciences are essential for expanding our understanding of this area. Furthermore, it is suggested that higher education instructors inspire their students to pursue research from various approaches. This ongoing research can serve as a foundation for future work and enhance scientific literature. It is also recommended to promote the application of the variables “organizational communication” and “job performance” across different sectors, aiming to broaden the understanding of their relationship in various contexts. This effort will enrich and diversify research in this field.

Companies, particularly public entities both nationally and internationally, should fully recognize the significance and impact of effective internal communication management on their performance. By acknowledging this, these organizations will be better equipped to handle crises, improve their public image, and ultimately, create substantial competitive value in the marketplace.

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Authors’ contribution

Cynthia Gabriela Figueroa Alvarado (first author): Conceptualization, investigation, data curation, formal analysis, and writing (original draft).

Hugo Jesús Salas Canales (co-author): Investigation, data curation, methodology, supervision, and writing (review & editing).

[1] Degree in Business Administration from Universidad Científica del Sur (Lima, Peru). Member of the research group Interdisciplinary Research in Business Sciences (Lima, Peru).

Orcid: https://orcid.org/0000-0002-9212-6334

Corresponding author: 100028890@cientifica.edu.pe

[2] Master’s degree in Administration with a major in Business Management. Currently working as a professor at Universidad Científica del Sur (Lima, Peru) and is the lead researcher of the research group Interdisciplinary Research in Business Sciences (Lima, Peru).

Orcid: https://orcid.org/0000-0003-2754-9514

E-mail: hsalas@cientifica.edu.pe

ABSTRACT

INTRODUCTION

Organizational Communication

Job Performance

METHODOLOGY

RESULTS

DISCUSSION

CONCLUSIONS

REFERENCES

Authors’ contribution