The Effect of Internal Communication on Employee Performance in the Hotel Industry: A Comparative Study of Elilly International Hotel and Marriott Executive Apartments Addis Ababa

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This research was conducted to examine the effect of Internal communication on employee performance in the hotel industry, in Addis Ababa. Quantitative research approach was used; explanatory and descriptive survey research design was adopted. Internal communication was measured by using variables; quality, modes, content, frequency and direction of communication. To make the sample more representative of the population, stratified random sampling method was used. From a total of 226 employees, 139 from Elilly international hotel and 87 from Marriot Executive Apartments questionnaires were distributed. Totally 204 questionnaires were appropriately filled and returned. Hence the response rate was 90%; it was valid to run the data analysis involving descriptive, correlation and multiple regression analysis, which was computed through SPSS version 23. Following that, the five research hypotheses were tested. The correlation analysis result shows that frequency, direction and quality positively and moderately are associated with employees’ performance. However modes and contents of communication have a positive but weak relation with employee performance. The result of the findings for both hotels indicates that all dimensions of internal communication (frequency, direction, quality, content and modes) have a significant effect on the performance of employees. Furthermore, it is found that variables of internal communication predicts employees’ performance positively through frequency (β=0.294, β=0.259), direction (β=0.261, β=0.231), quality (β=0.185, β=0.228), content (β=0.199, β=0.185) and mode (β=0.171, β=0.163) for both Elilly International Hotel and Marriot Executive Apartment respectively. Generally this study indicated that there is a positive and significant relationship between internal communication and performance of employees.Considering the findings above, it is recommended that both hotels should articulate their policies focusing on making the internal communication system effective in order to improve employee performance


A Thesis Submitted to Addis Ababa University College of Business and Economics in partial fulfillment of the requirements for Master of Art in Business Administration specialization in Management


Communication, Internal Communication, Employee Performance