What effect does lack of communication have on change initiatives?

Enhance your business proficiency with the Peregrine Global Services Business Exam. Prepare using flashcards and multiple choice questions, complete with explanations and hints!

Lack of communication during change initiatives significantly decreases employee morale. When employees are not well-informed about the reasons for change, its implications, and their roles in the process, they tend to feel uncertain and anxious. This uncertainty can lead to confusion regarding job security and the future of their roles within the organization.

In a change initiative, effective communication is essential to foster trust and engagement among employees. It helps set clear expectations and enables team members to understand how they can contribute positively to the change. Without open lines of communication, employees may feel isolated or even resistant to change, ultimately impacting their motivation and enthusiasm for their work.

In contrast, enhanced team collaboration, improved transparency, and encouragement of innovation are outcomes typically driven by effective communication, rather than its absence. Therefore, the absence of clear communication can create an environment that hampers these positive elements, leading to a decline in overall morale.

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