Communication is vital in banking for transparency, as mandated by BoG’s disclosure requirements. From AGMs at institutions like rural banks, where shareholder engagement ensures governance.

A. Explanation of Organizational Communication and Its Importance to Shareholders During an AGM
Organizational communication is the exchange of information within and across the entity to achieve goals, encompassing formal (reports) and informal (discussions) channels.

Importance to shareholders at a rural bank’s AGM:

• Informs Decision-Making: Provides financial updates for voting on resolutions, ensuring informed choices per BoG regulations.
• Builds Trust and Transparency: Shares performance insights, reducing uncertainties post events like DDEP.
• Facilitates Feedback: Allows queries, aligning management with shareholder interests.
• Enhances Accountability: Reports on governance, complying with Act 930.
• Promotes Engagement: Strengthens loyalty, vital for rural banks’ community ties.

B. Five Barriers to Communication in an Organization and Suggested Solutions

1. Physical Barriers (e.g., Noise or Distance): Solution: Use digital tools like video conferencing for clear transmission.
2. Semantic Barriers (Language Differences): Solution: Standardize terminology and provide translations in diverse teams.
3. Psychological Barriers (Prejudices): Solution: Train on active listening to foster openness.
4. Organizational Barriers (Hierarchy): Solution: Flatten structures or use open-door policies.
5. Information Overload: Solution: Prioritize key messages and use summaries for efficiency.