Hrm journal presentation sutini

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Hrm journal presentation sutini

  1. 1. EMPLYEE EMPOWERMENT AND CUSTOMER ORIENTATION : EFFECTS ON WORKERS’ ATTITUDES IN RESTAURANTS ORGANIZATION Gabriel Gazzoli ; Murat Hancer & Yumi Park (2012) International Journal of Hospitality & Tourism Administration SUTINI Batch 6 1263620054 Human Resources Management in Hospitality & Tourism Prof. Syamsir Abduh
  2. 2. Contents Conclusion and Implication Finding Methodology Literature Review Introduction
  3. 3. INTRODUCTION Employee Empowerment and Customer Orientation: It is widely documented that employee well-being, customer satisfaction, customer orientation, and empowerment are pivotal elements in determining the success of any organization As employees and customers become the centerpiece of organization with different, needs, wants, and demands. Firms must establish customer-oriented strategies and develop customer-oriented employees who are capable of and empowered to provide excellent service to the patrons.
  4. 4. INTRODUCTION According to previous research customer-oriented employee influence the level of their customers’ satisfaction and commitment to the firm.(Kim & Ok,2010; Hennig-Thurau,2004) Additionally, research has suggested that customer-oriented employees have more positive attitudes towards their jobs than service workers showing lower levels of CO ((Donavan, Brown, & Bowen, 2004) There for, CO is an imprtant element in organizationl success; and organizations that focusnon and are able to improve employee CO may be able to outperform those that do not (Kim & Ok, 2010; Donavan et al., 2004)
  5. 5. INTRODUCTION Employee Empowerment is one of those processes and controls embedded in a customer-oriented strategy (Hartline et al., 2000; Kotler, Bowen, & Mackens, 2006). Empowerment is also viewed as an important aspect of managerial practice leading to improved individual and organizational performance (Fulford & Enz, 1995; Bowen & Lawler, 1992; hancer & George, 2003)
  6. 6.  The Management literature reflects two views of Customer Oriented :  The first drawn from Marketing Orientation. MO its self has been presented from several different perspectives including : a) Marketing Intelligence (Kohli & Jaworksi, 1990) b) Culural Behaviour (Narver & Slater, 1990) c) Customer Perspective ( Deshphande et al., 1993)  The Second view of Customer Oriented focuses on the individual level of analysis: The service worker themselves. This research stream is represented by the pioneering work of Saxe and Weitz ( 1982) who developed a two-dimensional SOCO scale (selling –orientation-customer orientation) and found avidence that selling -oriented/customer-oriented employees had a significant impact on a salespersons performance. CUSTOMER ORIENTED LITERATURE REVIEW
  7. 7. …LITERATURE REVIEW Lee and Koh (2001) suggested that the theory of empowerment has been presented in two different ways: EMPOWERMENT AND ITS RELATIONSHIP WITH CO The first incorporates the “behaviour of supervisor” as a driving force to empower employee.  The second view , the “ psychological state of a sub ordinate” is the major force behind feelings of empowerment. This conceptualization is also known as psychological empowerment, which is defined as an experience of being empowered (Barnes, 2006)
  8. 8. LITERATURE REVIEW EMPOWERMENT AND ITS RELATIONSHIP WITH CO Few studies have tried to identify the relationship between empowerment and CO. Peccei and Rosenthal (2001), had attempted to investigate the impact of organizational initiatives such as management behaviour, job design, and training have on employee empowerment and the effect of empowerment on customer oriented behaviour (COBEH). Their study conceptualized empowerment using three variables: a. Internalization of service excellence b. Job competence c. Job autonomy Their results showed that COBEH was affected by empowerment, which in turn was affected by organizational initiatives.
  9. 9. METHODOLOGY
  10. 10. METHODOLOGY variable : Employee of the restaurant as the independe nt variable and a number of dependent variables . These were followed by probing open- ended questions to answer the "why question. derive descriptive statistics to characterize the demographics of customer-contact employees
  11. 11. FINDINGS AND DISCUSSION The data represents statistically. There were 1,308 respondents participated in the study There are 92,4% of the respondents were line level employees, 5,2 held entry-level managerial jobs. All measurment items were analyzed for reability and validity purposes.
  12. 12. …FINDINGS AND DISCUSSION After an explanatory factor analysis, the empowerment construct showed three factors: Empowerment Factor 1: Meaning (a =873); Empowrment Factor 2; Self-Efficacy (a=782); and Empowerment Factor 3: Influence (a=859). The result shows three empowerment dimensions that, while different from those in Spreitzer (1992), are consistent with the findings of Fulford and Enz (1995). There for, they renamed their empowerment factors after those detailed in Fulford and Enz (1995) The CO construct consisted of 13 items and their factor analysis show four factors. CO Factor 1: Need to pamper the guest (a=910); CO Factor 2: Need to read the customer’s needs (a=849); CO Factor 3: Need to deliver (a=827) and CO Factor 4: Need for personal relationship (a=801) These dimensions are consistent with those in the work of Donavan et al. (2004). However, one item each from CO Factor 2 and CO Factor 4 were deleted due to low factor loadings. Empowerment Customer Oriented
  13. 13. …FINDINGS AND DISCUSSION We use a single-item indicator for global job satisfaction measurement. The measurement error of this single item was set to 0 prior to estimating the measurement model due to potential identification problems. (Yoon, Beatty, & Suh, 2001) The job involvement construct included five items. A reliability test indicated that the Cronbach’s coefficient alpha of this construct is acceptable ( a=906) Job Satisfaction Job Involvement
  14. 14. …FINDINGS AND DISCUSSION The organizational commitment constract included three items. As a result of a reliability test. The Cronbach’s coefficient alpha of this construct is 848. The high construct Reliability (CR) of their model provides evidence of internal consistency: Empowerment (CR= 93); CO (CR=0,97), Job Involvement (CR=0,94); and Organizational Commitment (CR=92); Empowerment (average variance extrected (AVE)= 54); CO (AVE=81); Job involvement (AVE=66) and Organizational commitment (AVE=71) Organization Commitment
  15. 15. …FINDINGS AND DISCUSSION The empowerment constructs fits the data well because indicators of model fit such as GFI, the AGFI, the NFI, the CF are, 975, ,944, ,975, ,993, and , 993 respectively. The RMR was ,045 and the RMSEA was ,035, respectively. Empowerment Result of the analysis :
  16. 16. …FINDINGS AND DISCUSSION The Customer Oriented construct fits the data well. The GFI, AGFI, NFI, IFI and CFI has scored of ,987, ,954, ,984, ,997, and 997 respectively. And RMR and the RMSEA had a score of ,052 and ,029, respectively. The Customer Oriented measurement model is good. Customer Oriented Result of the analysis :
  17. 17. …FINDINGS AND DISCUSSION The Job involvement construct fits the data well. The indicators of GFI, AGFI, NFI, and CFI are .993, .963, .995, .998, and .998 respectively. Also the indicators of RMR and RMSEA are .038 and .052, respectively. Therefore, the measurement model is also good. Job Involvement Result of the analysis :
  18. 18. CONCLUSION The purpose of this study was to test a proposed model suggesting the benefits that restaurant may reap by having a customer-oriented culture that is driven by empowerment and customer oriented worker. The role of empowerment plays inraising workers’ level of CO, and the effects of heightened worker CO on three very important job related worker attitudes, including job satifaction, organizational commitement and job involvement.
  19. 19. ...CONCLUSION Analysis of this study has shown that the empowerment exerts a positive and direct effect on employees’ CO. The result also show that workers’ CO exerts positive and direct effects on job satisfaction and organizational commitment, and job satisfaction mediates the relationship between CO and commitment.
  20. 20. ...CONCLUSION This study has also advanced CO theory by proving that higher levels of worker CO result in higher levels of worker job involvement. Therefore, workers who have high levels of CO will also have positive organizational attitudes. In industry in which turnover rates have reached 83% for full-service operation (Ebbin, 2000) and has typically exceeded 120% in quick-service restaurants (Tracey & Hinkin, 2006), a customer- oriented strategy through empowerment with the addition of customer oriented workers may play big role in reducing this astonishing numbers.
  21. 21. ...CONCLUSION The benefits of having customer-oriented employees may go well beyond employee attitudes towards their job and human resources implication. The CO construct ties in with the service-profit chain model (Heskett et al., 1997) which states that employee satisfaction lead to delivery of superior service to customers which in turn affects customer satisfaction, loyalty and profitability of the firm.
  22. 22. EMPLYEE EMPOWERMENT AND CUSTOMER ORIENTATION : EFFECTS ON WORKERS’ ATTITUDES IN RESTAURANTS ORGANIZATION Thank You SUTINI Batch 6 1263620054

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