Employees Roles in Customer Service Topic Presentation

1. Employees� Roles in Customer ServiceTopic Presentation Siwen YuJillian HewittJill Taylor BN6230 October 26, 2009

2. Employees� Role � Closing Provider Gap 3 Provider Gap 3 (the Service Performance Gap) - the discrepancy between customer driven service standards and actual service standards. Objectives of Presentation Define key roles that employees play in customer satisfaction & service delivery Identify employee strategies/challenges that impact customer-oriented service delivery Demonstrate how the team�s research validates the Service Profit Chain Discuss the evolution of service culture through the 80�s � 90�s � 2000�s Research conducted as early as the 1960s, recognized that a number of unique characteristics � tangibility, inseparability of production and consumption, heterogeneity and perishability � separated services from tangible goods and that service marketing problems require service marketing solutions. However, service marketing literature and empirical work that integrated various service industries was very limited in the early 1980s. According to article written by Lynn G. Coleman, Assistant Managing Director of Marketing News owned by the American Marketing Association, in the early 1980s organizations were still focusing on product quality and customer satisfaction. It wasn�t until the late 1980s that attention shifted to service quality and employee satisfaction. In the early 80s, many models of excellence were implemented to drive quality, such as the Total Quality Concept which aimed at satisfying customers though a quality product, excellent service, affordable cost and timely delivery. This concept acknowledged that employees played a key role in successful implementation but did not have the employee focus or depth that later quality models would include. In the Total Quality Concept, communication of clear, understandable objectives was important. Employees had to buy into the concept and be commitment and motivated to work diligently to achieve it. Any resistance to change had to be resolved, individual employee roles had to be defined and the importance of individual contribution to sustain a successful organization needed to be communicated. Hughes Aircraft, one of many companies who adopted this approach, found that employee communication was key to the success of the concept. Task and responsibilities needed to be clearly defined, expectations of quality needed to be clearly communicated, employee job evaluations were routinely given, employee suggestions were solicited and employees were involved in policy and procedure development. Top Quality and other excellence models recognized that employees participation was essential to customer satisfaction and profitability but research and understanding of employees needs and motivates were limited to hiring people with the appropriate skills and physical attributes, providing appropriate training, communicating with employees and ensuring their physical appearance was aligned with the company image. The focus was very much on product quality and customer satisfaction and not service quality and employee satisfaction. I can attest to this personally. In the mid 1980s, I worked for what was then Northern Telecom Canada Ltd. We have a manufacturing plant in St. John�s where certain components of telephone sets and other equipment were assembled. There was also a sales and service office. The company improved product/service quality through an excellence model that focused on zero defects in the plant and hiring and training the best in the field on the sales/service side. People were hired based on their skills, abilities and physical suitability for the job. For example, the plant workers did a lot of work sautering small components and they had to stand for long periods of time. It was tedious work. They were often hired based on if they had hobbies such as needlepoint or knitting, if they were physically capable of standing for long periods, and if their education levels were high-school or less. They were well paid for the work and trained to do the job but not much attention was paid to their career advancement potential, what motivated them or what interested them. The same was true of the service staff. Monetary awards were good, training to do your job was readily available, physical attributes and skills were important but the focus was on quality products and services. The company slogan was �Quality means Business�. But in the late 1980s, the attention paid to service quality and employee satisfaction began to significantly increase. A study by Zeithaml, Parasuman and Berry in 1985 compared problems an strategies in service marketing literature with those reported by approximately 700 actual service supplier. The study concluded that growth in the service sectors economies throughout the world was beginning to lead to a rapid growth of service marketing literature and it was anticipated there would be an accelerated academic interest and research activity in services marketing in the years beyond the 1980s. This study suggested more research was need across a broader range of service industries, further investigation was needed on tangible cues and their impact on service quality and satisfaction and additional work was need to explore employee performance and marketer�s role in service marketing. Research conducted as early as the 1960s, recognized that a number of unique characteristics � tangibility, inseparability of production and consumption, heterogeneity and perishability � separated services from tangible goods and that service marketing problems require service marketing solutions. However, service marketing literature and empirical work that integrated various service industries was very limited in the early 1980s. According to article written by Lynn G. Coleman, Assistant Managing Director of Marketing News owned by the American Marketing Association, in the early 1980s organizations were still focusing on product quality and customer satisfaction. It wasn�t until the late 1980s that attention shifted to service quality and employee satisfaction. In the early 80s, many models of excellence were implemented to drive quality, such as the Total Quality Concept which aimed at satisfying customers though a quality product, excellent service, affordable cost and timely delivery. This concept acknowledged that employees played a key role in successful implementation but did not have the employee focus or depth that later quality models would include. In the Total Quality Concept, communication of clear, understandable objectives was important. Employees had to buy into the concept and be commitment and motivated to work diligently to achieve it. Any resistance to change had to be resolved, individual employee roles had to be defined and the importance of individual contribution to sustain a successful organization needed to be communicated. Hughes Aircraft, one of many companies who adopted this approach, found that employee communication was key to the success of the concept. Task and responsibilities needed to be clearly defined, expectations of quality needed to be clearly communicated, employee job evaluations were routinely given, employee suggestions were solicited and employees were involved in policy and procedure development. Top Quality and other excellence models recognized that employees participation was essential to customer satisfaction and profitability but research and understanding of employees needs and motivates were limited to hiring people with the appropriate skills and physical attributes, providing appropriate training, communicating with employees and ensuring their physical appearance was aligned with the company image. The focus was very much on product quality and customer satisfaction and not service quality and employee satisfaction. I can attest to this personally. In the mid 1980s, I worked for what was then Northern Telecom Canada Ltd. We have a manufacturing plant in St. John�s where certain components of telephone sets and other equipment were assembled. There was also a sales and service office. The company improved product/service quality through an excellence model that focused on zero defects in the plant and hiring and training the best in the field on the sales/service side. People were hired based on their skills, abilities and physical suitability for the job. For example, the plant workers did a lot of work sautering small components and they had to stand for long periods of time. It was tedious work. They were often hired based on if they had hobbies such as needlepoint or knitting, if they were physically capable of standing for long periods, and if their education levels were high-school or less. They were well paid for the work and trained to do the job but not much attention was paid to their career advancement potential, what motivated them or what interested them. The same was true of the service staff. Monetary awards were good, training to do your job was readily available, physical attributes and skills were important but the focus was on quality products and services. The company slogan was �Quality means Business�. But in the late 1980s, the attention paid to service quality and employee satisfaction began to significantly increase. A study by Zeithaml, Parasuman and Berry in 1985 compared problems an strategies in service marketing literature with those reported by approximately 700 actual service supplier. The study concluded that growth in the service sectors economies throughout the world was beginning to lead to a rapid growth of service marketing literature and it was anticipated there would be an accelerated academic interest and research activity in services marketing in the years beyond the 1980s. This study suggested more research was need across a broader range of service industries, further investigation was needed on tangible cues and their impact on service quality and satisfaction and additional work was need to explore employee performance and marketer�s role in service marketing.

3. Employees� Roles in Customer Service The 80�s

4. In the early 1980s, organizations focused on product quality and customer satisfaction. It was not until the late 1980s that attention shifted to service quality and employee satisfaction (Coleman, 1990). Quality Movement - business models such as the Total Quality Concept were popular. Companies recognized that employees participation was essential to customer satisfaction and profitability, but research and understanding of employees needs and motivates were limited. Research conducted as early as the 1960s, recognized that a number of unique characteristics � tangibility, inseparability of production and consumption, heterogeneity and perishability � separated services from tangible goods and that service marketing problems require service marketing solutions. However, service marketing literature and empirical work that integrated various service industries was very limited in the early 1980s. According to article written by Lynn G. Coleman, Assistant Managing Director of Marketing News owned by the American Marketing Association, in the early 1980s organizations were still focusing on product quality and customer satisfaction. It wasn�t until the late 1980s that attention shifted to service quality and employee satisfaction. In the early 80s, many models of excellence were implemented to drive quality, such as the Total Quality Concept which aimed at satisfying customers though a quality product, excellent service, affordable cost and timely delivery. This concept acknowledged that employees played a key role in successful implementation but did not have the employee focus or depth that later quality models would include. In the Total Quality Concept, communication of clear, understandable objectives was important. Employees had to buy into the concept and be commitment and motivated to work diligently to achieve it. Any resistance to change had to be resolved, individual employee roles had to be defined and the importance of individual contribution to sustain a successful organization needed to be communicated. Hughes Aircraft, one of many companies who adopted this approach, found that employee communication was key to the success of the concept. Task and responsibilities needed to be clearly defined, expectations of quality needed to be clearly communicated, employee job evaluations were routinely given, employee suggestions were solicited and employees were involved in policy and procedure development. Top Quality and other excellence models recognized that employees participation was essential to customer satisfaction and profitability but research and understanding of employees needs and motivates were limited to hiring people with the appropriate skills and physical attributes, providing appropriate training, communicating with employees and ensuring their physical appearance was aligned with the company image. The focus was very much on product quality and customer satisfaction and not service quality and employee satisfaction. I can attest to this personally. In the mid 1980s, I worked for what was then Northern Telecom Canada Ltd. We have a manufacturing plant in St. John�s where certain components of telephone sets and other equipment were assembled. There was also a sales and service office. The company improved product/service quality through an excellence model that focused on zero defects in the plant and hiring and training the best in the field on the sales/service side. People were hired based on their skills, abilities and physical suitability for the job. For example, the plant workers did a lot of work sautering small components and they had to stand for long periods of time. It was tedious work. They were often hired based on if they had hobbies such as needlepoint or knitting, if they were physically capable of standing for long periods, and if their education levels were high-school or less. They were well paid for the work and trained to do the job but not much attention was paid to their career advancement potential, what motivated them or what interested them. The same was true of the service staff. Monetary awards were good, training to do your job was readily available, physical attributes and skills were important but the focus was on quality products and services. The company slogan was �Quality means Business�. But in the late 1980s, the attention paid to service quality and employee satisfaction began to significantly increase. A study by Zeithaml, Parasuman and Berry in 1986 concluded that growth in the service sectors economies throughout the world had lead to a rapid growth of service marketing literature and it was anticipated there would be an accelerated academic interest and research activity in services marketing in the years beyond the 1980s. This study suggested more research was need across a broader range of service industries, further investigation was needed on tangible cues and their impact on service quality and satisfaction and additional work was need to explore employee performance and marketer�s role in service marketing. Research conducted as early as the 1960s, recognized that a number of unique characteristics � tangibility, inseparability of production and consumption, heterogeneity and perishability � separated services from tangible goods and that service marketing problems require service marketing solutions. However, service marketing literature and empirical work that integrated various service industries was very limited in the early 1980s. According to article written by Lynn G. Coleman, Assistant Managing Director of Marketing News owned by the American Marketing Association, in the early 1980s organizations were still focusing on product quality and customer satisfaction. It wasn�t until the late 1980s that attention shifted to service quality and employee satisfaction. In the early 80s, many models of excellence were implemented to drive quality, such as the Total Quality Concept which aimed at satisfying customers though a quality product, excellent service, affordable cost and timely delivery. This concept acknowledged that employees played a key role in successful implementation but did not have the employee focus or depth that later quality models would include. In the Total Quality Concept, communication of clear, understandable objectives was important. Employees had to buy into the concept and be commitment and motivated to work diligently to achieve it. Any resistance to change had to be resolved, individual employee roles had to be defined and the importance of individual contribution to sustain a successful organization needed to be communicated. Hughes Aircraft, one of many companies who adopted this approach, found that employee communication was key to the success of the concept. Task and responsibilities needed to be clearly defined, expectations of quality needed to be clearly communicated, employee job evaluations were routinely given, employee suggestions were solicited and employees were involved in policy and procedure development. Top Quality and other excellence models recognized that employees participation was essential to customer satisfaction and profitability but research and understanding of employees needs and motivates were limited to hiring people with the appropriate skills and physical attributes, providing appropriate training, communicating with employees and ensuring their physical appearance was aligned with the company image. The focus was very much on product quality and customer satisfaction and not service quality and employee satisfaction. I can attest to this personally. In the mid 1980s, I worked for what was then Northern Telecom Canada Ltd. We have a manufacturing plant in St. John�s where certain components of telephone sets and other equipment were assembled. There was also a sales and service office. The company improved product/service quality through an excellence model that focused on zero defects in the plant and hiring and training the best in the field on the sales/service side. People were hired based on their skills, abilities and physical suitability for the job. For example, the plant workers did a lot of work sautering small components and they had to stand for long periods of time. It was tedious work. They were often hired based on if they had hobbies such as needlepoint or knitting, if they were physically capable of standing for long periods, and if their education levels were high-school or less. They were well paid for the work and trained to do the job but not much attention was paid to their career advancement potential, what motivated them or what interested them. The same was true of the service staff. Monetary awards were good, training to do your job was readily available, physical attributes and skills were important but the focus was on quality products and services. The company slogan was �Quality means Business�. But in the late 1980s, the attention paid to service quality and employee satisfaction began to significantly increase. A study by Zeithaml, Parasuman and Berry in 1986 concluded that growth in the service sectors economies throughout the world had lead to a rapid growth of service marketing literature and it was anticipated there would be an accelerated academic interest and research activity in services marketing in the years beyond the 1980s. This study suggested more research was need across a broader range of service industries, further investigation was needed on tangible cues and their impact on service quality and satisfaction and additional work was need to explore employee performance and marketer�s role in service marketing.

5. Zeithaml, Parasuraman and Berry (1985) research study found: Empirical research and marketing literature was limited to certain service industries. A broader research base was needed. The importance of institutional images and the use of tangible cues like personnel appearance would require additional investigation to be useful. Literature and service suppliers placed great emphasis on selection and training of service training personnel and other issues which touched on employee performance and marketer�s role in facilitating it. The study noted these topics were worthy of much additional work.

6. Heskett (1987) identified three common themes of successful service industries that are directly linked to employees� role. Integrated Marketing and Operations Functions Unlike goods producing businesses, service customer contact is close. Services are marketed and produced at the same place and time, often by the same person. Coordination of marketing and operations is essential. Strategic Service Vision External Orientation - Service designed from customer�s prospective Internal Orientation - Service designed with employees� needs in mind This component acknowledges that the health of the organization depends on the degree to which core groups of employees subscribe to and share a common set of values and are served by the companies activities. By the late 1980s service marketing literature was beginning to acknowledge the significant role employees played in service quality, customer satisfaction and success. In 1987, the Harvard Business Review published an article by James Heskett, a Professor of Business Logistics at Harvard Business School which identified strategies used by successful service providers to boost productivity and alter competitive strategies. Among the common themes discussed, three stand out as directly linked to employee roles. Integrated Marketing and Operations Functions Most goods-producing businesses follow the traditional organizational pattern of separate and equally important marketing and manufacturing functions. In contrast to goods-producing businesses, one study by Lovelock et al in 1981 found that 90% of field managers in four multisite service companies claimed responsibility for operations, personnel and marketing. These managers could not say which was most important, but paid great attention to each. In many service companies, such as retailing and food service businesses, contact with customers is close, and the service is marketed and produced at the same place and time, and often by the same person. It seems natural than, that marketing and operations functions in service industries be integrated. Heskett�s article suggests successful high-contact service companies have made a point of developing marketing-operations managers, often carrying the title of store or branch manager. These employees coordinate and integrate marketing strategies with operations and help to ensure consistent communication from management to employees and from employees to customers. Strategic Service Vision Is the company�s plan to implement an operating strategy. It contains basic elements such as: identification of a target market segment, development of a service concept and operating strategy and design of a service delivery system to support the operating strategy. It also contains integrative elements such as positioning, cost leveraging and systems integration. Heskett identified two orientations in the Strategic Service Vision of high performance service industries. One is external and looks at the basic elements from the customers view point and the other is an inner directed vision, that designs the service with the employee�s needs in mind. This internal orientation acknowledges that the health of the organization depends on the degree to which core groups of employees subscribe to and share a common set of values and are served by the companies activities. A Strategic Service process with an internal orientation builds shared values and bonds people together. Successful service companies have achieved shared values through employee education and motivational programs, redesign of jobs, develop of new equipment and materials to enhance employee satisfaction, care in assignment and alignment of physical evidence with company strategy.By the late 1980s service marketing literature was beginning to acknowledge the significant role employees played in service quality, customer satisfaction and success. In 1987, the Harvard Business Review published an article by James Heskett, a Professor of Business Logistics at Harvard Business School which identified strategies used by successful service providers to boost productivity and alter competitive strategies. Among the common themes discussed, three stand out as directly linked to employee roles. Integrated Marketing and Operations Functions Most goods-producing businesses follow the traditional organizational pattern of separate and equally important marketing and manufacturing functions. In contrast to goods-producing businesses, one study by Lovelock et al in 1981 found that 90% of field managers in four multisite service companies claimed responsibility for operations, personnel and marketing. These managers could not say which was most important, but paid great attention to each. In many service companies, such as retailing and food service businesses, contact with customers is close, and the service is marketed and produced at the same place and time, and often by the same person. It seems natural than, that marketing and operations functions in service industries be integrated. Heskett�s article suggests successful high-contact service companies have made a point of developing marketing-operations managers, often carrying the title of store or branch manager. These employees coordinate and integrate marketing strategies with operations and help to ensure consistent communication from management to employees and from employees to customers. Strategic Service Vision Is the company�s plan to implement an operating strategy. It contains basic elements such as: identification of a target market segment, development of a service concept and operating strategy and design of a service delivery system to support the operating strategy. It also contains integrative elements such as positioning, cost leveraging and systems integration. Heskett identified two orientations in the Strategic Service Vision of high performance service industries. One is external and looks at the basic elements from the customers view point and the other is an inner directed vision, that designs the service with the employee�s needs in mind. This internal orientation acknowledges that the health of the organization depends on the degree to which core groups of employees subscribe to and share a common set of values and are served by the companies activities. A Strategic Service process with an internal orientation builds shared values and bonds people together. Successful service companies have achieved shared values through employee education and motivational programs, redesign of jobs, develop of new equipment and materials to enhance employee satisfaction, care in assignment and alignment of physical evidence with company strategy.

7. Quality Control Heterogeneity is a significant issue in quality control of services. Successful approaches that address this issue include:- Monetary and non-monetary employee awards Making the person who delivers the service more visible Careful selection and through training of employees and development programs that build a sense of pride with the service and a sense of identification with the company Heskett� s research suggests internal strategic service, quality control and success were connected. He conceptualized this connection in a �quality wheel�. Quality Control The third employee related strategy used by successful service companies is quality control. As stated in our textbook and other class presentations reaching a consistently high, quality level is tougher in services. The interaction between two or more people varies with each transaction making quality control difficult. The most effective approaches to solving this problem, according to Heskett have included: monetary and non-monetary employee awards, such as employee-of-the month awards, making the person who delivers the service more visible, for example the Lex Service Group�s auto dealership in England encourages the customer to go directly to the mechanic working on his car which promotes a consistent high quality of service and promotes responsibility and knowledge of results in the employee. Another successful approach in managing quality control involves the careful selection and through training of employees. The article found that development programs that build a sense of pride with the service and a sense of identification with the company improved quality control and the level of service provided. Heskett suggests internal strategic service design, quality control and success are connected. He conceptualized this connection in a quality wheel. Employee satisfaction leads to high employee motivation resulting in high levels of service quality compared with what the customer expects, service quality results in customer satisfaction and increased business contributing to employee satisfaction. It is clear from this model that researchers and business owners in the Service Sector were beginning to understand the depth of employee�s role in service delivery, service quality and customer satisfaction. It was understood by the late 1980s, that employee satisfaction increased employee motivation and contributed to service quality and that employee satisfaction and motivation could be achieved through employee education and development, awards programs, and increased communication and accountability. Heskett also demonstrates that high performance service industries were beginning to understand that employee needs were an integral part of success. This represents a fundamental shift from product quality and customer satisfaction to service quality and employee satisfaction. It is interesting to note that technology and support systems did not play a big role in employee contribute to service quality in the 1980s. Now, I�ll turn the discussion over to Jillian for a summary of Employee�s Role in Service Delivery in the 1990s.Quality Control The third employee related strategy used by successful service companies is quality control. As stated in our textbook and other class presentations reaching a consistently high, quality level is tougher in services. The interaction between two or more people varies with each transaction making quality control difficult. The most effective approaches to solving this problem, according to Heskett have included: monetary and non-monetary employee awards, such as employee-of-the month awards, making the person who delivers the service more visible, for example the Lex Service Group�s auto dealership in England encourages the customer to go directly to the mechanic working on his car which promotes a consistent high quality of service and promotes responsibility and knowledge of results in the employee. Another successful approach in managing quality control involves the careful selection and through training of employees. The article found that development programs that build a sense of pride with the service and a sense of identification with the company improved quality control and the level of service provided. Heskett suggests internal strategic service design, quality control and success are connected. He conceptualized this connection in a quality wheel. Employee satisfaction leads to high employee motivation resulting in high levels of service quality compared with what the customer expects, service quality results in customer satisfaction and increased business contributing to employee satisfaction. It is clear from this model that researchers and business owners in the Service Sector were beginning to understand the depth of employee�s role in service delivery, service quality and customer satisfaction. It was understood by the late 1980s, that employee satisfaction increased employee motivation and contributed to service quality and that employee satisfaction and motivation could be achieved through employee education and development, awards programs, and increased communication and accountability. Heskett also demonstrates that high performance service industries were beginning to understand that employee needs were an integral part of success. This represents a fundamental shift from product quality and customer satisfaction to service quality and employee satisfaction. It is interesting to note that technology and support systems did not play a big role in employee contribute to service quality in the 1980s. Now, I�ll turn the discussion over to Jillian for a summary of Employee�s Role in Service Delivery in the 1990s.

8. Employees� Roles in Customer Service The 90�s

9. Morris and Feldman explored two dimensions affecting emotional labour and its consequences (1997) Frequency of InteractionCustomers or clients are more likely to comply with organizational goals when the affective bonds of liking, trust, and respect have been established through appropriate employee behaviour. Thus, the more a work role requires contact with other people, the greater the organization's need to rely upon regulated displays of emotion to ensure compliance with organizational goals. Duration of InteractionShort interactions with customers often involve highly scripted interaction formats (e.g., a simple thank you or a slight smile). This implies that the planning and level of effort required for interactions of short duration are quite minimal. Conversely, the longer the duration of an interaction, the greater the emotional labour which will be required, due to the requirement of greater attention, effort, and emotional stamina. Consequences Research has concluded that emotional labour has negative and dysfunctional consequences for workers, which have impacts on service quality and customer satisfaction. The Service Profit Chain is a model that appears throughout all three decades. It is what links employee satisfaction to customer satisfaction to profits. In the 80�s, the focus was on exploring the connection between employee satisfaction and customer satisfaction, which in turn, connected to profits. In the 90�s, the focus goes a little further. We explored what employee satisfaction means and how it affects customer satisfaction, the five drivers of service and, in turn, profits. This research presents the idea of emotional labour and emotional dissonance. Emotional labour is labour that goes beyond the physical or mental skills needed to deliver service. It means delivering smiles, making eye contact, showing interest and engaging in friendly conversation with strangers on a continual basis, despite what the employee may actually be feeling. It�s considered labour since effort, planning, anticipation, and adjustment to situational factors in order to publicly display emotions that employees may not necessarily privately feel. An employee who is having a bad day, for example, must suppress his own feelings to be effective in his service role. (Discuss first slide). The conflict between what an employee actually feels and the emotional labour they exert for their service role is known as emotional dissonance. (Discuss second slide.) The Service Profit Chain is a model that appears throughout all three decades. It is what links employee satisfaction to customer satisfaction to profits. In the 80�s, the focus was on exploring the connection between employee satisfaction and customer satisfaction, which in turn, connected to profits. In the 90�s, the focus goes a little further. We explored what employee satisfaction means and how it affects customer satisfaction, the five drivers of service and, in turn, profits. This research presents the idea of emotional labour and emotional dissonance. Emotional labour is labour that goes beyond the physical or mental skills needed to deliver service. It means delivering smiles, making eye contact, showing interest and engaging in friendly conversation with strangers on a continual basis, despite what the employee may actually be feeling. It�s considered labour since effort, planning, anticipation, and adjustment to situational factors in order to publicly display emotions that employees may not necessarily privately feel. An employee who is having a bad day, for example, must suppress his own feelings to be effective in his service role. (Discuss first slide). The conflict between what an employee actually feels and the emotional labour they exert for their service role is known as emotional dissonance. (Discuss second slide.)

10. R. Abraham explored the impact of emotional dissonance on organizational Commitment and turnover (1999) Emotional dissonance resulted in job dissatisfaction, which, in turn, stimulated withdrawal intentions, either solely through job dissatisfaction or through both job dissatisfaction and reduced organizational commitment. However, social support lessened the negative impact of emotional dissonance on organizational commitment.

11. The Employee-Customer-Profit Chain at Sears (Rucci, Kirn and Quinn, 1998) A chain of cause and effect exists, running from employee behaviour to customer behaviour to profits Behaviour depends primarily on attitude Biggest problem is measurement: unlike revenues and profits, soft data are hard to define and collect, and few measures are softer than customer and employee attitudes, or "satisfaction." Employee attitudes affect employee retention; employee retention affects the drivers of customer satisfaction; customer satisfaction affects financials More than 100 top-level executives at Sears, Roebuck and Co. spent three years rebuilding the company around its customers. Three members of the Sears team discuss the new business model based on new measurement techniques. By means of an ongoing process of data collection, analysis, modeling, and experimentation, they developed and continue to refine what they call their Total Performance Indicators, or TPI, which is a set of measures that shows how well they are doing with customers, employees, and investors. They have also calculated the lag time between a change in any of those metrics and a corresponding change in financial performance, so that when they see a shift in employee attitudes, they know not only how but also when it will affect results. More than 100 top-level executives at Sears, Roebuck and Co. spent three years rebuilding the company around its customers. Three members of the Sears team discuss the new business model based on new measurement techniques. By means of an ongoing process of data collection, analysis, modeling, and experimentation, they developed and continue to refine what they call their Total Performance Indicators, or TPI, which is a set of measures that shows how well they are doing with customers, employees, and investors. They have also calculated the lag time between a change in any of those metrics and a corresponding change in financial performance, so that when they see a shift in employee attitudes, they know not only how but also when it will affect results.

12. The Employee-Customer-Profit Chain at Sears (Rucci, Kirn and Quinn, 1998) �It is essential to deploy the system properly in order to create a sense of ownership among sales associates and staff. It is an issue of trust and of business and economic literacy. Unless employees grasp the purpose of the system, understand the economics of their company and industry, and have a clear picture of how their own work fits into the employee-customer-profit model, they will never succeed in making the whole thing work.� One way that Sears has contended with the issue of employee dissatisfaction is by ensuring that the employees are actively involved in the running of the company. The employees have knowledge about the processes involved in the day to day operations of the firm and understand that their work is a vital part of these processes.One way that Sears has contended with the issue of employee dissatisfaction is by ensuring that the employees are actively involved in the running of the company. The employees have knowledge about the processes involved in the day to day operations of the firm and understand that their work is a vital part of these processes.

13. Employees� Role in Customer Services The 2000�s To summary the 80s and 90s, we have a cote from Gummesson. In the 80s In the 90s, In the 2000, the research focus on how the internal customer relationships work.To summary the 80s and 90s, we have a cote from Gummesson. In the 80s In the 90s, In the 2000, the research focus on how the internal customer relationships work.

14. Employees� Role � The 2000�sLassk et al. explored the Internal Customer Mind-Set of Marketing (ICMS) Personnel (2004) Because they believe that the internal efforts is a strong support to provide excellent services. To support this internal and external interaction, organizations� culture should include understanding both employees and customer needs� What internal customer believe. In 2004, they further developed the role played by employees. Because they believe that the internal efforts is a strong support to provide excellent services. To support this internal and external interaction, organizations� culture should include understanding both employees and customer needs� What internal customer believe. In 2004, they further developed the role played by employees.

15. The notion that employees believe that they must understand and satisfy internal and external customers in order to perform their job effectively is the central element of customer mind-set (CMS). CMS is conceptualized as two components: external customer mind-set (ECMS) and internal customermind-set (ICMS) In the 80�s �Strategic Service Vision External Orientation - Service designed from customer�s prospective Internal Orientation - Service designed with employees� needs in mind This component acknowledges that the health of the organization depends on the degree to which core groups of employees subscribe to and share a common set of values and are served by the companies activities. � To clarify the relationship b/w org. culture and employee and customer satisfaction. Since beliefs is a significant part of org. culture, the experts came up to the idea of customer mind-set The experts defined this valued. This research is focused on ICMS, marketing personnel�s beliefs and link those beliefs to important job outcomes at the individual level. Employee beliefs is a significant part of organizational culture. The exports investigateTo clarify the relationship b/w org. culture and employee and customer satisfaction. Since beliefs is a significant part of org. culture, the experts came up to the idea of customer mind-set The experts defined this valued. This research is focused on ICMS, marketing personnel�s beliefs and link those beliefs to important job outcomes at the individual level. Employee beliefs is a significant part of organizational culture. The exports investigate

16. How Does ICMS Work? They believe job satisfaction and organizational commitment are antecedences of ICMS, and job performance and turnover intentions are the outcomes of it. Mediating ICMS relationship between job satisfaction and job performance, as well as commitment and jog performance. The research failed to show a direct linkage or mediating effect between ICMS and turnover intentions. Given the strong direct relationship between commitment and job satisfaction with turnover intentions, the relationship between ICMS and turnover intentions may be overshadowed by commitment and job satisfaction. They believe job satisfaction and organizational commitment are antecedences of ICMS, and job performance and turnover intentions are the outcomes of it. Mediating ICMS relationship between job satisfaction and job performance, as well as commitment and jog performance. The research failed to show a direct linkage or mediating effect between ICMS and turnover intentions. Given the strong direct relationship between commitment and job satisfaction with turnover intentions, the relationship between ICMS and turnover intentions may be overshadowed by commitment and job satisfaction.

17. Notable effects are found between ICMS and job performance, through both direct and indirect effects. Direct Marketers with higher levels of an internal focus perform better than do those with lower levels. Indirect A synergistic relationship exists among ICMS, commitment and job satisfaction, so that when combined, they yield higher job performance. Direct Marketers who master serving internal customers achieve better performance because they create an environment in which others want to reciprocate, they work hard and happily .allowing the marketer to better serve his/her customers and increase his/her performance. This result encouraged marketers should understand the needs and wants of internal customer, so that an appreciation of their situation and limitations can help them serve the organization and its entire customer more thoroughly. ( child car/ break time) Indirect. ICMS indirect effects on job performance also offer some interesting insights. These two findings infer that when ICMS, commitment and job satisfaction combined, they yield higher job performance, and these three elements enhance each other. For example, as employees are satisfied with their job and committed, they would like to contribute more to the prosper of the company. They become more cooperative and develop a better network. This, in turn, leads to decreased turmoil and produce emotional relationships, thereby causing employees to embrace a stance toward serving the needs of internal customers. This finding may be crucial for developing organizational culture. Create social opportunities, in the social support lessened the negative impact of emotional dissonance on organizational commitment. 90�s  Training interpersonal skills.� partners will be hurt!� and even cleaning stuffs are important. Direct Marketers who master serving internal customers achieve better performance because they create an environment in which others want to reciprocate, they work hard and happily .allowing the marketer to better serve his/her customers and increase his/her performance. This result encouraged marketers should understand the needs and wants of internal customer, so that an appreciation of their situation and limitations can help them serve the organization and its entire customer more thoroughly. ( child car/ break time) Indirect. ICMS indirect effects on job performance also offer some interesting insights. These two findings infer that when ICMS, commitment and job satisfaction combined, they yield higher job performance, and these three elements enhance each other. For example, as employees are satisfied with their job and committed, they would like to contribute more to the prosper of the company. They become more cooperative and develop a better network. This, in turn, leads to decreased turmoil and produce emotional relationships, thereby causing employees to embrace a stance toward serving the needs of internal customers. This finding may be crucial for developing organizational culture. Create social opportunities, in the social support lessened the negative impact of emotional dissonance on organizational commitment. 90�s Training interpersonal skills.� partners will be hurt!� and even cleaning stuffs are important.

18.  Wangenheim, Evanschitzky, and Wenderlich (2007) Research on 99 branches of a German Do-It-Yourself (DIY)-retailer Non-contact employees still influence consumer satisfaction Retailers should include customer satisfaction as an evaluation criterion for non-customer contact employee groups as well. The motivations of high job satisfaction For all groups, team climate is the most important driver for job satisfaction; it has a stronger effect for storeroom workers than for the other groups. Quality of work organization and supervision is critical, especially for storeroom workers. There are few articles focus on impact of non-contact employees on customer satisfaction. From the 1 working climate is important ?so we wondering Does the employee-customer satisfaction link hold for all employee groups? To answer this puzzle To prove this idea, the experts conduct a research on� they investigate the satisfaction level of both high and low- contact employees, and customer satisfaction. There is the criteria and indicators they used. Wangenheim et al (2007) find that both �first-line� and non-contact employees can affect consumer satisfaction. Their idea comes from the �climate for service�, which indicates that a harmonious working atmosphere improves service quality, and in turn raises consumer satisfaction. Thus, the experts Chapter 9 soft and hard stand conducted a research in 99 outlets of a Germany Do-It-Your-Self retailor. � The result of their study shows that �second-line� employees can also influence service quality and consumer satisfaction; thus, the experts emphasize that managers should implement common criteria on the whole employee group and value job satisfaction of non-contact employees as critically as the �first line� employees. � In the end, the researchers note that influences of organizational culture and industry type limit the results of their study, since it is focused on only one franchise; nevertheless, because of this single study object, bias of industry and product category are eliminated. Hence, the experts suggest that this study can be repeated in other services, and further study should be conducted on the motivation of increasing satisfaction of employees in different contact levels. There are few articles focus on impact of non-contact employees on customer satisfaction. From the 1 working climate is important ?so we wondering Does the employee-customer satisfaction link hold for all employee groups? To answer this puzzle To prove this idea, the experts conduct a research on� they investigate the satisfaction level of both high and low- contact employees, and customer satisfaction. There is the criteria and indicators they used. Wangenheim et al (2007) find that both �first-line� and non-contact employees can affect consumer satisfaction. Their idea comes from the �climate for service�, which indicates that a harmonious working atmosphere improves service quality, and in turn raises consumer satisfaction. Thus, the experts Chapter 9 soft and hard stand conducted a research in 99 outlets of a Germany Do-It-Your-Self retailor. � The result of their study shows that �second-line� employees can also influence service quality and consumer satisfaction; thus, the experts emphasize that managers should implement common criteria on the whole employee group and value job satisfaction of non-contact employees as critically as the �first line� employees. � In the end, the researchers note that influences of organizational culture and industry type limit the results of their study, since it is focused on only one franchise; nevertheless, because of this single study object, bias of industry and product category are eliminated. Hence, the experts suggest that this study can be repeated in other services, and further study should be conducted on the motivation of increasing satisfaction of employees in different contact levels.

19. Simon, Gomez, McLaughin, and Wittink (2009) study on employee attitudes, customer satisfaction, and sales performance Employee attitudes positively affect customer satisfaction with service, but do not affect customer satisfaction with quality or value. Employee attitudes may affect customer satisfaction through their influence on employee effort and employee quality, and by directly enhancing customers� experience. However, employee attitudes may not be equally relevant to all aspects of customer satisfaction. Customer satisfaction with service positively affects sales performance. Highly satisfied customers purchase more frequently and spend more than less satisfied customers. Highly satisfied customers provide word of mouth. -This article clearly defined the employee� role in the service profit chain. Emphasis relationship�Behaviour depends primarily on attitude Customer satisfaction is derived from price, product and service quality. In the test book �employee satisfaction does not cause customer satisfaction. -They list five findings from other studies to support their first hypothesis: This positive attitude can be observed by customers and can enhance CUS. Sat. -However, they argue that employee attitudes should affect customer satisfaction with service more than other components of customer satisfaction such a prices and products. (For example, once I brought a can of compliment bean salad in save easy. The service was good. I do not wait for check out and the assistant helped me the check the prices of my avocado� however, when I got home and tasted the salad, it was so bad� I believe I will never buy a second one. That is I am not satisfied. I did not make trade off b/w product and services. ) -It is especially important for retail stores because products are identical owners should differentiate themselves with service. Standard Jana�s experience. Transfer. � holding contact people to standards that they cannot control dose not result in improvement. Data from 1999-2002 Even important for retailers. -This article clearly defined the employee� role in the service profit chain. Emphasis relationship�Behaviour depends primarily on attitude Customer satisfaction is derived from price, product and service quality. In the test book �employee satisfaction does not cause customer satisfaction. -They list five findings from other studies to support their first hypothesis: This positive attitude can be observed by customers and can enhance CUS. Sat. -However, they argue that employee attitudes should affect customer satisfaction with service more than other components of customer satisfaction such a prices and products. (For example, once I brought a can of compliment bean salad in save easy. The service was good. I do not wait for check out and the assistant helped me the check the prices of my avocado� however, when I got home and tasted the salad, it was so bad� I believe I will never buy a second one. That is I am not satisfied. I did not make trade off b/w product and services. ) -It is especially important for retail stores because products are identical owners should differentiate themselves with service. Standard Jana�s experience. Transfer. � holding contact people to standards that they cannot control dose not result in improvement. Data from 1999-2002 Even important for retailers.

20. All in allAll in all

21. Relating to the Text The 80�s: The Critical Importance of Service Employees Customer contact employees: are the service are the organization are the brand are the marketers The 90�s: Employee Satisfaction, Customer Satisfaction and Profits Employee behaviours and emotions affect service quality dimensions The 2000�s: Strategies for Delivering Service Quality Through People Customer Mind-Set Organizational Climate 80�s 90�s 2000�s: Developing People through empowerment and skills 

22. Relating to the Text Great Place to Work: Institute Canada

23. References Abraham, R., (1999), The Impact of Emotional Dissonance on Organizational Commitment and Intention to Turnover, The Journal of Psychology, 133(4), 441-455. Coleman, Lynn G. (1990), Those were the days: Satisfaction was king this year; focus shifted to service, employees, Marketing News, American Marketing Association, December, 2. Day, Terian C. (1984), Strategies for setting up a �commitment to excellence� policy � and making it work, Mangement Review, 73(5), 16-24. Feldman, Daniel C., Morris, J. Andrew (1997), Managing Emotions in the Workplace, Journal of Managerial Issues, 9. Lassk, Felicia G., Kennedy, Karen N., & Goolsby, Jerry R. (2004). Exploring the Internal Customer Mind-Set of Marketing Personnel. Journal of Relationship Marketing. Vol.3,No.2, pp. 89-106; Heskett, James L. (1987), Lessons in the Service Sector, Harvard Business Review, March-April, 118-126. Rucci, Anthony J., Kirn, Steven P., Quinn, Richard T. (1998), The Employee-Customer Profit Chain at Sears, Harvard Business Review, January-February, 6(1). Simon, D. H., Gomez, M. I., Mclaughin, E. W., & Wittink D. R., (2009). Employee Attitudes, Customer Satisfaction, and Sales Performance: Assessing the Linkages in US Grocery Stores. Managerial And Decision Economics , 30, 27-41. Wangenheim, F. V., Evanschitzky, H., & Wenderlich, M. (2007). Does the employee-customer satisfaction link hold for all employee groups? Journal of Business Research, 60, 690-697. Zeithhaml, Valarie A., Parasuraman, A., Berry, Leonard A., (1985), Problems and Strategies in Services Marketing, Journal of Marketing 49(2), 33-46.

24. Thank you

25. This questionnaire will give you some insight of how employees evaluate they jobsThis questionnaire will give you some insight of how employees evaluate they jobs