Abstract

In response to the 2013 financial crisis in Cyprus, employers made uninformed decisions to downsize and restructure as techniques for maximising profit and decreasing cost. The employers did not consider the change management issues associated with change. The purpose of conducting this study is to: a) examine the employees' perceptions to determine whether there exists any relationship between internal communication and employee engagement in medium-size organisations during challenging economic conditions; b) determine the impact of internal communication on the employees' engagement. Using the purposive sampling technique, 343 participants were recruited. In this qualitative study, a thematic analysis of the interview responses was conducted to help in retrieving insightful information from the collected data. Applying pattern coding facilitated in proving that the hypotheses should be accepted. The findings of the study were that the top management in medium-sized organisations should use effective internal communication and employee engagement to support strategic change.

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