Effective Organizational Communication using Metaphor: Homeplus Case

Abstract

Objectives: This article presents a case-based study on how CEOs can communicate effectively with members of their organization. Many CEOs deliver messages to employees to implement their management philosophy and encourage successful management performance. This study explored how these messages can be effectively disseminated to and internalized by employees throughout an organization. Methods: This study investigated communication using metaphors carried out by the CEO of Homeplus, a representative retail company in Korea, from the time of its founding. These metaphors played an important role in achieving high management performance compared to competitors by promoting effective understanding and application of management principles to business. Results: Management by metaphor (MBM) was defined as “using metaphor as a means of management.” In this management method, the CEO utilizes metaphors in communication with stakeholders, including members of the organization, customers, and shareholders. Concepts such as corporate vision, management ideology, shared values, business concepts, leadership, talent, and basic principles are incorporated into metaphors and shared internally and externally. Conclusions: Metaphors are very effective for clearly sharing management concepts within an organization. MBM can be widely used in negotiations, persuasion, contracts, and human networks in business relationships, including activities outside the company. Communication within organizations has always been difficult and a source of problems. However, in a business environment, metaphors act as a catalyst to facilitate effective communication.