Hierarchical Communication, Productivity, and Conflict Management in Indian Manufacturing Firms

Communication plays a significant role in the seamless operation of the manufacturing industry. Effective communication nurtures collaboration across varied departments like design, production, quality control, and transportation. Poor hierarchical communication in the manufacturing sector can lead to higher risks such as wrong production, increased errors, collapses in the supply chain, reduced employee engagement, and creates an unsafety environment. The management is liable for processing the communication effectively within the firm. Though, the previous studies have concentrated on business communication, the process of hierarchical communication was disregarded. Therefore, the proposed study investigates the business communication in personnel management in the manufacturing sector. The data are obtained from 140 employees working in the manufacturing firms via structured questionnaires. This study is the first in Indian manufacturing to simultaneously examine upward, downward, and lateral communication flows, establish their direct impact on firm-level profitability, and identify specific conflict-causing distortions within a single structural model. The results of research will contribute to detecting the effectiveness of hierarchical communication in the manufacturing sector. The outcomes provide valuable insights into the regarding the influence of hierarchical communication among employees on firm’s profitability and productivity. Further, it reveals the causes of conflicts in communication and techniques to overcome the concerns. The implications of the study will be beneficial for HR professionals, managers, and manufacturing firms.