How employer and employee satisfaction affect customer satisfaction:an application to franchise services

In small-service settings, how do owner satisfaction, front-line employee satisfaction, and customer satisfaction relate to one another? The authors use generalized exchange theory (GET) to examine how satisfaction levels of these three constituents are reciprocated. The authors examine a European franchise system comprising 50 outlets, 933 employees, and 20,742 customers. Their results show two important findings. First, the effect of owner-franchisee's satisfaction on customer satisfaction is fully mediated by front-line employee satisfaction. Thus, managers of a service outlet can strongly impact the satisfaction and behavioral intentions of their customer base, even without direct contact with them. Second, the link between customer satisfaction and purchase intention is moderated by employee satisfaction at an outlet. The link between customer satisfaction and customer purchase intentions is almost twice as strong when employees are satisfied than when they are not. Thus, there is a "doublepositive effect:" not only does higher employee satisfaction at an outlet directly lead to higher customer satisfaction but it also indirectly strengthens the association between customer satisfaction and their repurchase intentions.

The role of the sales employee in securing customer satisfaction

Purpose: Previous research has emphasized the pivotal role that salespeople play in customer satisfaction. In this regard, the relationship between salespeople's attitudes, skills, and characteristics, and customer satisfaction remains an area of interest. The paper aims to make three contributions: first, it seeks to examine the impact of salespeople's satisfaction, adaptive selling, and dominance on customer satisfaction. Second, this research aims to use dyadic data, which is a better test of the relationships between constructs since it avoids common method variance. Finally, in contrast to previous research, it aims to test all of the customers of salespeople rather than customers selected by salespeople. Design/methodology/approach: The study employs multilevel analysis to examine the relationship between salespeople's satisfaction with the firm on customer satisfaction, using a dyadic, matched business-to-business sample of a large European financial service provider that comprises 188 customers and 18 employees. Findings: The paper finds that customers' evaluation of service quality, product quality, and value influence customer satisfaction. The analysis at the selling firm's employee level shows that adaptive selling and employee satisfaction positively impact customer satisfaction, while dominance is negatively related to customer satisfaction. Practical implications: Research shows that customer-focus is a key driver in the success of service companies. Customer satisfaction is regarded as a prerequisite for establishing long-term, profitable relations between company and customer, and customer contact employees are key to nurturing this relationship. The role of salespeople's attitudes, skills, and characteristics in the customer satisfaction process are highlighted in this paper. Originality/value: The use of dyadic, multilevel studies to assess the nature of the relationship between employees and customers is, to date, surprisingly limited. The paper examines the link between employee attitudes, skills, and characteristics, and customer satisfaction in a business-to-business setting in the financial service sector, differentiating between customer- and employee-level drivers of business customer satisfaction.

Team-based working and employee well being:a cross-cultural comparison of United Kingdom and Hong Kong health services

This study examined the impact of team-based working, team structure, and job design on employee well-being (in term of job satisfaction and work stress) in staff working in healthcare organizations in Hong Kong. Cross-cultural differences in the impact of job design, team structure, and employee well-being outcomes between United Kingdom and Hong Kong were also investigated. A group of 197 staff from two Hong Kong hospitals were compared to a sample of 270 UK staff working in National Health Service organizations in the UK. Results showed that team structure and job design were significantly associated with greater employee satisfaction and lower stress for Hong Kong healthcare staff. Culture was also found to moderate the impact of team structure and job design on employee well-being. The findings suggest that although team structure and job design contribute to employee well-being, they have differential impacts across cultures. This provides insights to policy planning on building team-based organizations in the healthcare sector involving multinational collaboration.

Perils of managing the service profit chain:the role of time lags and feedback loops

The tendency of managers to focus on short-term results rather than on sustained company success is of particular importance to retail marketing managers, because marketing activities involve expenditures which may only pay off in the longer term. To address the issue of myopic management, our study shows how the complexity of the service profit chain (SPC) can cause managers to make suboptimal decisions. Hence, our paper departs from past research by recognizing that understanding the temporal interplay between operational investments, employee satisfaction, customer satisfaction, and operating profit is essential to achieving sustained success. In particular, we intend to improve understanding of the functioning of the SPC with respect to time lags and feedback loops. Results of our large-scale longitudinal study set in a multi-outlet retail chain reveal time-lag effects between operational investments and employee satisfaction, as well as between customer satisfaction and performance. These findings, along with evidence of a negative interaction effect of employee satisfaction on the relationship between current performance and future investments, show the substantial risk of mismanaging the SPC. We identify specific situations in which the dynamic approach leads to superior marketing investment decisions, when compared to the conventional static view of the SCP. These insights provide valuable managerial guidance for effectively managing the SPC over time. © 2012 New York University.

Rewarding customer service? Using reward and recognition to deliver your customer service strategy

This report examines the role of reward and recognition in helping organisations deliver excellent customer service. It identifies the impact that reward and recognition practice has upon customer service and highlights which practices are more effective; shows the extent to which employees are satisfied with the rewards and recognition they receive; indicates those approaches to reward and recognition most associated with staff commitment; and looks at how other factors affect employee satisfaction with reward and recognition.

Does the employee–customer satisfaction link hold for all employee groups?

Increasingly, retailers nowadays have to focus on service marketing strategies and tactics to differentiate themselves from their competitors. Delivering high levels of service quality becomes crucial for long-term success. Since customers' perception of service quality depends very much on the interaction between the customer and the employee, this study analyzes the link between employee and customer satisfaction in more detail. Moreover, based on three different theories that prior research has used, it investigates whether or not the level of customer contact is a determinant of the existence or the intensity of the employee–customer satisfaction link. Analysis of dyadic data from 53,645 customers and 1659 employees across 99 outlets of a large German Do-It-Yourself (DIY)-retailer shows that employee job satisfaction affects customer satisfaction even for employee groups that are not in direct interaction with customers, although effects seem to be slightly stronger for high interaction groups. Implications for research and management are discussed.

Relationship between organisational justice and employee outcomes:a cross-national study

This study examined the influence of organizational justice perceptions on employee work outcome relationships as moderated by individual differences that are influenced by societal culture. Power distance, but not country or individualism, moderated the relationships between perceived justice and satisfaction, performance, and absenteeism. The effects of perceived justice on these outcomes were stronger among individuals scoring lower on power distance index, and most of these study participants were in the U.S. (versus Hong Kong) sample. Limitations of the study and the implications of the findings for managing cross-culturally are discussed.

Does role clarity explain employee-perceived service quality? A study of antecedents and consequences in call centres

Purpose – Role clarity of frontline staff is critical to their perceptions of service quality in call centres. The purpose of this study is to examine the effects of role clarity and its antecedents and consequences on employee-perceived service quality. Design/methodology/approach – A conceptual model, based on the job characteristics model and cognitive theories, is proposed. Key antecedents of role clarity considered here are feedback, autonomy, participation, supervisory consideration, and team support; while key consequences are organizational commitment, job satisfaction and service quality. An internal marketing approach is adopted and all variables are measured from the frontline employee's perspective. A structural equation model is developed and tested on a sample of 342 call centre representatives of a major commercial bank in the UK. Findings – The research reveals that role clarity plays a critical role in explaining employee perceptions of service quality. Further, the research findings indicate that feedback, participation and team support significantly influence role clarity, which in turn influences job satisfaction and organizational commitment. Research limitations/implications – The research suggests that boundary personnel in service firms should strive for more clarity in perceived role for delivering better service quality. The limitations are in sample availability from in-house transaction call centres of a single bank. Originality/value – The contributions of this study are untangling the confusing research evidence on the effect of role clarity on service quality, using service quality as a performance variable as opposed to productivity estimates, adopting an internal marketing approach to understanding the phenomenon, and introducing teamwork along with job-design and supervisory factors as antecedent to role clarity.

Beyond personal Leader Member Exchange (LMX) quality:the effects of perceived LMX variability on employee reactions

A fundamental tenet of Leader–Member Exchange (LMX) theory is that leaders develop different quality relationships with their employees; however, little research has investigated the impact of LMX differentiation on employee reactions. The current research investigates whether perceptions of LMX variability (the extent to which LMX relationships are perceived to vary within a team) affects employee job satisfaction and wellbeing beyond the effects of personal LMX quality. As LMX variability runs counter to principles of equality and consistency, which are important for maintaining social harmony in groups, it is hypothesized that perceptions of LMX variability will have a negative effect on employee reactions, via its negative impact on perceived team relations. Two samples of employed individuals were used to investigate the hypothesized relationships. In both samples, an individual's perception of LMX variability in their team was negatively related to employee job satisfaction and wellbeing (above the effects of LMX), and this relationship was mediated by reports of relational team conflict.

Should I stay or should I go? Explaining turnover intentions with organizational identification and job satisfaction

The social identity approach is a powerful theoretical framework for the understanding of individuals behaviour. The main argument is that individuals think and act on behalf of the group they belong to because this group membership adds to their social identity, which partly determines ones self-esteem. In the organizational world, social identity and self-categorization theories state that a strong organizational identification is associated with low turnover intentions. Because identification is the more general perception of shared fate between employee and organization, we propose that the relationship between identification and turnover will be mediated by job satisfaction as the more specific evaluation of ones task and working conditions. In four samples we found organizational identification feeding into job satisfaction, which in turn predicts turnover intentions.

Individual spirit at work and its relationship with employee work attitudes and organisational outcomes:An empirical examination in corporate Thailand

The purpose of this thesis is to conduct empirical research in corporate Thailand in order to (1) validate the Spirit at Work Scale (2) investigate the relationships between individual spirit at work and three employee work attitudinal variables (job satisfaction, organisational identification and psychological well-being) and three organisational outcomes (in-role performance, organisational citizenship behaviours (OCB), and turnover intentions) (3) further examine causal relations among these organisational behaviour variables with a longitudinal design (4) examine three employee work attitudes as mediator variables between individual spirit at work and three organisational outcomes and (5) explore the potential antecedents of organisational conditions that foster employee experienced individual spirit at work. The two pilot studies with 155 UK and 175, 715 Thai samples were conducted for validation testing of the main measure used in this study: Spirit at Work Scale (Kinjerski & Skrypnek, 2006a). The results of the two studies including discriminant validity analyses strongly provided supportive evidence that Spirit at Work Scale (SAWS) is a sound psychometric measure and also a distinct construct from the three work attitude constructs. The final model of SAWS contains a total of twelve items; a three factor structure (meaning in work, sense of community, and spiritual connection) in which the sub-factors loaded on higher order factors and also had very acceptable reliability. In line with these results it was decided to use the second-order of SAWS model for Thai samples in the main study and subsequent analysis. The 715 completed questionnaires were received from the first wave of data collection during July - August 2008 and the second wave was conducted again within the same organisations and 501 completed questionnaires were received during March - April 2009. Data were obtained through 49 organisations which were from three types of organisations within Thailand: public organisations, for-profit organisations, and notfor-profit organisations. Confirmatory factor analysis of all measures used in the study and hypothesised model were tested with structural equation modelling techniques. The results were greatly supportive for the direct structural model and partially supportive for the fully mediated model. Moreover, there were different findings across self report and supervisor rating on performance and OCB models. Additionally, the antecedent conditions that fostered employees experienced individual spirit at work and the implications of these findings for research and practice are discussed.

Human resource management, employee attitudes and business performance in Post Office Ltd

Whilst a consistent link between the adoption of human resource management (HRM) practices by organisations and their performance has been confirmed by numerous studies, there is a need for greater understanding of why such effects occur. Recently, the attention of researchers has shifted towards understanding the so-called ‘black box’ linking HRM and business performance. This study focuses on this area of research by testing processes through which HRM may affect performance, in particular the process of HR implementation, mediation mechanisms, and fit with internal and external boundary conditions. This research was based on a sample of 136 Post Office branches in the UK and investigated the role of HR implementation, employee attitudes and competitive environment. The study revealed that HR implementation, a climate for service, job satisfaction and effective organisational commitment predicted independent measures of economic and service performance in branches. Employee attitudes moderated the relationship between implemented HRM and service performance, and both job satisfaction and commitment were found to mediate relationships between a climate for service and service performance. Finally, relative levels of competition faced by branches moderated the relationship between employee attitudes and sales. The findings demonstrate how the process of HR implementation, interactions with employee attitudes and moderation by external competition all influence the impact of HR systems on service and economic performance outcomes. These results illustrate the need for greater attention to processes of internal and external fit within HRM research in order to develop theory relating to why HR systems affect performance.

From ideal to real:a longitudinal study of the role of implicit leadership theories on leader-member exchanges and employee outcomes

The results of the present longitudinal study demonstrate the importance of implicit leadership theories (ILTs) for the quality of leader-member exchanges (LMX) and employees' organizational commitment, job satisfaction, and well-being. Results based on a sample of 439 employees who completed the study questionnaires at 2 time points showed that the closer employees perceived their actual manager's profile to be to the ILTs they endorsed, the better the quality of LMX. Results also indicated that the implicit-explicit leadership traits difference had indirect effects on employee attitudes and well-being. These findings were consistent across employee groups that differed in terms of job demand and the duration of manager-employee relation, but not in terms of motivation. Furthermore, crossed-lagged modeling analyses of the longitudinal data explored the possibility of reciprocal effects between implicit-explicit leadership traits difference and LMX and provided support for the initially hypothesized direction of causal effects.

Delegation and employee work outcome:an examination of the cultural context of mediating processes in China

We used cultural self-representation theory to develop a model of the processes linking delegation to work outcomes. We tested this model with data from a sample of 171 subordinate-supervisor dyads from the People's Republic of China. Regression results revealed that organization-based self-esteem and perceived insider status fully mediated the influence of delegation on affective organizational commitment, task performance, and innovative behavior and partially mediated delegation's influence on job satisfaction. Furthermore, traditionality moderated the relationships between delegation and the mediators in such a way that the relationships were stronger for individuals lower rather than higher in traditionality. © Academy of Management Journal.