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Employee Relation - Journal Summary

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The purpose of this study was to explore the relationship between satisfaction with the organizational communication and external customer orientation among front-line employees in a commercial ...

The purpose of this study was to explore the relationship between satisfaction with the organizational communication and external customer orientation among front-line employees in a commercial recreation setting.

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Employee Relation - Journal Summary Presentation Transcript

  • 1. LOGOTHE RELATIONSHIP BETWEEN EMPLOYEESATISFACTION WITH ORGANIZATIONALCOMMUNICATION ANDCUSTOMER ORIENTATIONMatt Wagenheim1 and A. Scott Rood2Recreation, Leisure Services and Wellness, Ferris State University, 401 South Street,SRC 103, Big Rapids, MI49307, USA; 2Department of Hospitality and Tourism Management,Grand Valley State University, B-3-261 Mackinac Hall, Allendale, MI 49401, USAINDIVIDUAL ASSIGNMENT - 2013GRADE / SCORE90Yayuk Puspa KartikaBatch 61263620062Human Resources Managementin Hospitality & TourismProf. Syamsir Abduh
  • 2. CONTENTSLiterature ReviewFinding & DiscussionMethodology3Introduction3Conclusion3
  • 3. The purpose of this study was to explore the relationship between satisfactionwith the organizational communication and external customer orientation amongfront-line employees in a commercial recreation setting. Data for the currentstudy were collected through the use of a survey instrument completed by front-line employees of a large regional family entertainment center in the MidwestUSA. Contrary to the anecdotal evidence, a significant relationship was notfound between the level of organizational communication satisfaction reportedby front-line employees and their external customer orientation.IntroductionsResults of the current study are consistent with research by Wagenheim (2006)and Homburg et al. (2009) within a commercial recreation setting, but run contraryto previous studies conducted in non-commercial recreation environments. Resultssuggest that front-line employees within a commercial recreation setting may befundamentally different in regard to the organizational communication satisfactionand the customer orientation as compared with frontline employees in other servicesettings. Suggestions are given that may help managers better facilitate customerorientation among front-line employees.Keywords:customer orientation, job satisfaction, organizational communication
  • 4. … IntroductionsProviders of leisure and recreation services face increasing challenges within thecurrent competitive environment including increased competition (from bothcommercial recreation and non-commercial recreation service providers) anddecreased discretionary income for consumers.A variety of research within the service industry has suggested that long-termrelationships with customers are necessary in order to gain a competitive advantage(Berry, 1983; Gronroos, 1990).Burke (1999) suggests that keeping existing customers is critical for organizationalsurvival.Service profit chain (SPC) models (a path between front-line employees, externalcustomers, and organizational profitability) indicate financial performance can beimproved through the relationship between employee satisfaction, customerorientation, customer satisfaction, and customer loyalty.Homburg et al. (2009)
  • 5. Literature ReviewIn a longitudinal study involvingorganizational alliances (both competitivealliances and those within the marketingchannel), Rindfleisch and Moorman (2003)define customer orientation as, “. . .the setof behaviours and beliefs that places apriority on customers’ interests andcontinuously creates superior customervalue” (p. 422).Jones et al. (2003) found that front-lineemployees’ customer orientation waspositively associated with externalcustomers’ propensity to leave. Thatis, external customers interacting withemployees holding a higher customerorientation indicated a lower propensity toswitch suppliers.The practices of management support andpersonnel management were positively related tointernal customer orientation. Some studies havefound a negative relationship between front-lineresponses to customer-orientation efforts (Pecci andRosenthal, 2000).This could occur if customer- orientation efforts areperceived to be contrary by workers to their needsand expectations (Kantsperger andKunz, 2005), resulting in lower employeesatisfaction.
  • 6. Organizations use their environment tocommunicate to visitors (and employees).Service failure may, “. . .occur due to alack of, or inaccurate, communications andresult in both unhappy customers andfrustrated employees”(Lewis and Clacher 2001, p. 173).… Literature ReviewCommunication is both formal andinformal exchanges of informationbetween parties within therelationship.(Sin et al., 2005).When employee communication satisfactionis low (i.e., poor organizationalcommunication), outcomes include: loweremployee commitment, increasedabsenteeism, higher employee turnover,and reduced productivity.(Hargie et al., 2002).
  • 7. “In the hospitality industry, it is widely believed that the culture of an organizationencourages and trains employees to want to provide excellent customer service”Ford and Heaton (2001)“Thus communication to front-line employees from their superiors is critical.Communication satisfaction is impacted by communication that providesinformation and work tasks, and by communication interactions with co-workersand superiors”Anderson and Martin (995)… Literature ReviewThe purpose of the current study is toexamine the relationship between front-line employee’s satisfaction withorganizational communication and theirlevel of customer orientation.
  • 8. Satisfactionwith theorganization’scommunicationclimateSatisfactionwithsupervisorycommunicationSatisfactionwithcommunicationconcerningorganizationalintegrationSatisfactionwiththeorganization’smedia qualitySatisfactionwith corporateinformationSatisfactionwith co-workercommunicationSatisfactionwith personalfeedbackSatisfactionwithsubordinatecommunicationDependentVariableIndependentVariableMethodologyThe communicationsatisfaction questionnaire (CSQ)developed by Downs and Hazen (1977)
  • 9. … MethodologyIn order to examine the reliability of the scales used in this study, Cronbach’s a-coefficients were calculated. Cronbach’s a indicates how well a set of variablesmeasures a single latent construct.Cronbach’s a-coefficients range from 0.0 to 1.0, and indicate the strength of relationshipbetween items within a scale. a-Coefficients near 1.0 means items are measuring similardimensions of the construct. Scales used in this study were deemed reliable with an a-coefficient 0.70 (Jeffreys et al., 1997).Communication satisfaction was measured using the CSQ developed by Downs andHazen (1977).
  • 10. equal to 0.84equal to 0.84equal to 0.82equal to 82equal to 0.82equal to 0.89Overall communication satisfaction was measured using all 35 communication items with areliability coefficient equal to 97. Customer orientation was measured using a shortenedversion of the SOCO scale developed by Saxe and Weitz (1982). Customer orientation hasfive items with a reliability coefficient equal to 0.84.Satisfaction with theorganization’s communicationclimate has five items with areliability coefficient… MethodologySatisfaction with supervisorycommunication has five itemswith a reliability coefficientSatisfaction with personal feedbackhas five items with a reliability coefficientequal to 0.79Satisfaction with co-worker communication has five items with areliability coefficientSatisfaction with communication concerning organizationalintegration has five items with a reliability coefficientSatisfaction with corporate informationhas five items with a reliability coefficientSatisfaction with the organization’s media qualityhas five items with a reliability coefficient
  • 11. … MethodologyThe population for this study was front-line employees of a regional family entertainment centre (gocarts, mini golf, arcade, etc) in the Midwest USA.“Front line employee” was defined in this study as hourly paid employees who spend some percentageof their work time in direct customer contact and are in non-management positions.The company under study employed 130 frontline employees during the month of data collection. Atotal of 97 usable responses were collected equaling a 75% response rate. Trained students visitedthe subject facility at ten pre-arranged dates and times that were determined by the centremanagement. A total of 14 student interviewers were employed. Interviewers explained to potentialparticipants the purpose of the research, obtained informed consent, and presented the surveyinstrument for the participants to complete.Employee (participant) participation in this study was encouraged by the centre management butultimately participation was voluntary. Each survey instrument was marked with an identificationnumber to allow the researchers to track which front-line employees’ had completed the surveyensuring that a single employee did not complete multiple surveys.
  • 12. … MethodologySimple linear regression is a general linear model designed to explain the relationshipbetween a single continuous independent variable and a single continuous dependentvariable.In this study, the method of least squares was used to fit the regression line (the simplelinear regression equation is also known as the least squares regression equation)(Dallal, 2000).The method of least squares minimizes the sum of the squares of the residuals of thepoints of the data (difference between the observed values and fitted values in theequation). The following null hypothesis was tested in this study using the simple linearregression analysis.H1: N1 Satisfaction with organizational communication among front-lineemployees is not related to external customer orientation in a commercialrecreation setting.
  • 13. In order to increase external customersatisfaction and improve internal marketingefforts (and ultimately impact organizationalprofitability) the organization must implementpolicies and procedures to improvecommunication.Despite the results of the current study, therelationship between the organization andfront-line employees is important.This study did not find a significantrelationship between front-line employeesatisfaction with organizationalcommunication and their external customerorientation. Results of this study indicate apotential gray area in the SPC model.ManagerialImplicationsFindings & DiscussionThe results of this study suggest that seasonal,front-line employees in a commercialrecreation setting may be fundamentallydifferent from front-line employees in othersettings as it relates to communicationsatisfaction and customer orientation.It is suggested that future research replicates thecurrent study with a commercial recreationpopulation not dominated by seasonalemployees.The commercial recreation facility understudy typically expands their workforce bynearly one-third during the busy (summer)season and simultaneously experiences highturnover.LimitationsDISCUSSION
  • 14. Recommendations forFuture ResearchFuture research using the SOCO scale to measure customer orientation with othernon-selling populations is recommended.The results of this study suggest that seasonal, front-line employees in a commercialrecreation setting may be fundamentally different from front-line employees in othersettings as it relates to communication satisfaction and customer orientation.More research comparing front-line employees in various commercial and noncommercial settings is recommended.Another avenue of exploration suggested is the relationship between the front-lineemployee role ambiguity and customer orientation.… Findings & Discussion
  • 15. Conclusions1Without a formalstructure for monitoring,management may thinksubordinates arereceiving everything theyneed for optimalproductivity when theymay not be.2Front-line employeesmay be performing at asuboptimal leveland, therefore, notdelivering the level ofservice quality to externalcustomers they may becapable of.3To increase externalcustomer satisfactionand improve internalmarketing efforts theorganization mustimplement policies andprocedures to improvecommunication.
  • 16. LOGOYAYUK PUSPA KARTIKA– BATCH 6