THE EFFECTS OF EMPLOYEE SATISFACTION, ORGANIZATIONAL CITIZENSHIP BEHAVIOR, AND TURNOVER ON ORGANIZATIONAL EFFECTIVENESS: A UNIT-LEVEL, LONGITUDINAL STUDY

This study addresses the issue of whether positive employee attitudes and behaviors influence business outcomes or whether positive business outcomes influence positive employee attitudes and behaviors. We hypothesize that employee satisfaction, organizational citizenship behavior, and employee turnover influence profitability and customer satisfaction. Data were gathered from the units of a regional restaurant chain via employee surveys, manager surveys, customer surveys, and organizational records. Cross-lagged regression analyses show that employee attitudes and behaviors at Time 1 are related to organizational effectiveness at Time 2. Additional cross-lagged regression analyses show no significant relationship between organizational effectiveness at Time 1 and the employee attitudes and behaviors at Time 2. These results add to the evidence that HR outcomes influence business outcomes, rather than the other way around.     

ATTITUDES AND EFFECTIVENESS: EXAMINING RELATIONS AT AN ORGANIZATIONAL LEVEL

Recent evidence has suggested that attitudes-organizational effectiveness relations may exist. Relations between employee attitudes, organizational unit performance, customer satisfaction, and turnover were examined at the branch level for a large automobile finance company. Using data from 142 branches in 2 consecutive years, several significant relations between attitude factors and performance were observed. In addition, causal analyses conducted at the branch level suggested that customer satisfaction led to employee attitudes, rather than the opposite. Additional analyses to explain this result suggested that economic conditions and related factors might be the causal mechanism at the aggregated level. Other potential interpretations of these findings and caveats about generalizing organizational-level findings to the individual level are discussed.     

Do sales and service compete? The impact of multiple psychological climates on frontline employee performance

This research examines how employees’ climate perceptions – or psychological climate – influence their performance of climate-related outcomes. We focus on two specific climates arguably most relevant to boundary-spanning organizations: service and sales climates. Building from the resource-allocation framework, the authors examine the way employees reconcile these multiple psychological climates. Polynomial regression and response surface modeling are used to test for the influence of these distinct climates on employee outcomes using a sample of 252 marketing employees and their 68 immediate supervisors. Specifically, the authors examine relationships between service and sales climates and the employee performance outcomes of customer satisfaction, helping behavior, effort, and sales performance. Results provide insight into the benefits and pitfalls of sales and service climates co-existing. Specifically we find that while sales effort is highest in climates that heavily favor sales, sales performance may exist in both sales-favored and service-favored climates (yet not in the presence of both). From a customer satisfaction perspective we find no significant impact of increasing sales climate in the presence of high service perceptions. These findings – both significant and non-significant – provide implications for future research in the realm of service-sales ambidexterity and interface as well as insight and direction for frontline managers.     

Business-unit-level relationship between employee satisfaction,employee engagement,and business outcomes: a meta-analysis

Based on 7,939 business units in 36 companies, this study used meta-analysis to examine the relationship at the business-unit level between employee satisfaction-engagement and the business-unit outcomes of customer satisfaction, productivity, profit, employee turnover, and accidents. Generalizable relationships large enough to have substantial practical value were found between unit-level employee satisfaction-engagement and these business-unit outcomes. One implication is that changes in management practices that increase employee satisfaction may increase business-unit outcomes, including profit.     

Introduction to the special issue on the intersection of professional selling and service

As organizational operations continue to evolve in response to increasing customer demands, frontline research has begun to consider how traditionally separate organizational functions may be complementary to firm performance. Specifically, as sales and service activities become increasingly intertwined within the frontline role, this special issue explores how the sales and service functions interact within an organization. The articles contained in this special issue consider the interaction of sales and service with respect to customer, employee, and firm outcomes. After introducing evolving thought in the area, we provide an overview of five articles that make up this special issue. We conclude by offering additional areas of research.     

Supervisor Support for Employee Performance in Australia: Mediating Role of Work‐Life Balance,Job, and Life Attitude

Drawing on the job‐demands resources model, we investigated the relationship between supervisor support and employee performance and the mediating effects of work‐life balance (WLB), job and life satisfaction, and organizational commitment in a sample of 305 financial‐sector employees in Sydney, Australia. Results reveal that supervisor support is positively related to employee performance, WLB, job and life satisfaction, and organizational commitment. In turn, WLB, job and life satisfaction, and organizational commitment are positively linked to employee performance. The findings indicate a significant mediation between supervisor support and employee performance only through WLB and organizational commitment. Implications for theory and practice are discussed.     

Salesperson time perspectives and customer willingness to pay more: roles of intraorganizational employee navigation,customer satisfaction,and firm innovation climate

This research aims to fill a critical gap in the sales literature by proposing a relationship-based model of customer willingness to pay more, involving salesperson time perspectives (i.e., long-term perspective and short-term perspective), intraorganizational employee navigation, and customer satisfaction with the salesperson. We also examine the moderating role of firm innovation climate. Multisource survey data were collected from 204 salespeople in a business-to-business sales context along with external ratings from customers of these salespeople three months later. The findings indicate that both long- and short-term perspectives have positive effects on intraorganizational employee navigation and customer satisfaction, which, in turn, positively affect customer willingness to pay more. In addition, short-term perspective has a stronger impact than long-term perspective on intraorganizational employee navigation. Further, the effect of long-term perspective on customer satisfaction is strengthened by the innovation climate of the firm, whereas the effect of short-term perspective on customer satisfaction is weakened by it.     

Proactive Customer Service Performance: Relationships With Individual,Task, and Leadership Variables

Despite the increasing interest in specific forms of proactive employee behavior in domains such as career development and organizational change, little research has investigated proactive behavior in the realm of customer service. Based on a review of the literatures on proactive behavior, customer service, and job performance, this study investigated relationships between a relevant set of individual and situational predictor variables and proactive customer service performance (i.e., individual service employees' self-started, long-term-oriented, and persistent service behavior that goes beyond explicitly prescribed requirements). Field survey data from 186 supervisor-subordinate dyads working in a large financial services organization demonstrated that proactive service performance, as rated by supervisors, was factorially distinct from prescribed task performance. Multiple regression analysis revealed that proactive service performance was significantly and positively associated with employee ratings of trait personal initiative, affective organizational commitment, task complexity, and participative leadership. The task and leadership variables explained incremental variance in proactive service performance beyond the individual predictors.     

EMPLOYEE ATTITUDES AND CUSTOMER SATISFACTION: MAKING THEORETICAL AND EMPIRICAL CONNECTIONS

Previous research has established links between employee attitudes and customer satisfaction. Little theory has been used to help explain and build on the results of these studies. A theoretical model of the employee attitude-customer satisfaction process is proposed based on Bagozzi's (1992) model of attitudes, intentions and behavior. Employee attitudes and intentions, and customer satisfaction data from a service-oriented organization with 160 offices is used to provide an initial test of the usefulness of the model. Cross-validations of the model with and without common method variance were conducted. The results provide strong support for the model. Suggestions are offered on extensions of the model in future research.     

Linking organizational resources and work engagement to employee performance and customer loyalty: the mediation of service climate

This study examined the mediating role of service climate in the prediction of employee performance and customer loyalty. Contact employees (N=342) from 114 service units (58 hotel front desks and 56 restaurants) provided information about organizational resources, engagement, and service climate. Furthermore, customers (N=1,140) from these units provided information on employee performance and customer loyalty. Structural equation modeling analyses were consistent with a full mediation model in which organizational resources and work engagement predict service climate, which in turn predicts employee performance and then customer loyalty. Further analyses revealed a potential reciprocal effect between service climate and customer loyalty. Implications of the study are discussed, together with limitations and suggestions for future research.     

Beyond individual justice facets: How (Mis)alignment between justice climates affects customer satisfaction through frontline customer extra-role service behavior

ABSTRACT

This study examines the combined effect of organizational justice facets on store-level customer extra-role service behavior, and subsequently on customer satisfaction. Hypotheses were tested on a sample of 1,951 employees in 121 business units from four countries, and on 55,731 customers of an international retailer. The results of polynomial regression and response surface analysis revealed that unit customer service performance and customer satisfaction are higher when justice facets are aligned at high levels, compared to when they are aligned at low levels. Moreover, we found evidence that the consequences of misalignment between justice facets are asymmetrical. Unit outcomes were higher when distributive justice (DJ) and procedural justice (PJ) climates were both higher than the interpersonal justice climate, compared to when the inverse was true. Conversely, unit outcomes increased when informational justice (INF-J) climate was higher than DJ and PJ climates, compared to when DJ and PJ climates were higher than INF-J climates. The observed effects of misalignment between justice facets were non-linear, as complex curvilinear relationships were moderator-dependent. Customer satisfaction was higher in stores with higher team customer service behavior, and team service behavior was found to be a significant conduit by which justice facets (mis)alignment influence customer satisfaction.     

Employee and customer perceptions of service quality: A look at India

Customers (n = 128) and employees (n = 93) from a large service organization in India responded to a survey regarding their satisfaction with the organization and their satisfaction with key processes regarding their specific service area. As in the United States, there was agreement between Indian customer and employee ratings. However, there were also some major differences. The impact of these differences on strategic organizational initiatives is discussed.     

Employee and customer perceptions of service quality: A look at India

Customers (n = 128) and employees (n = 93) from a large service organization in India responded to a survey regarding their satisfaction with the organization and their satisfaction with key processes regarding their specific service area. As in the United States, there was agreement between Indian customer and employee ratings. However, there were also some major differences. The impact of these differences on strategic organizational initiatives is discussed.     

CHALLENGE‐ORIENTED ORGANIZATIONAL CITIZENSHIP BEHAVIORS AND ORGANIZATIONAL EFFECTIVENESS: DO CHALLENGE‐ORIENTED BEHAVIORS REALLY HAVE AN IMPACT ON THE ORGANIZATION'S BOTTOM LINE?

Virtually all of the studies that have examined the relationship between organizational citizenship behaviors (OCBs) and unit or organizational effectiveness have focused on affiliation‐oriented as opposed to challenge‐oriented forms of OCB, and no study has examined the mechanisms through which OCBs influence unit or organizational effectiveness. Therefore, the purpose of this study is to examine the main and interactive effects that challenge‐oriented and affiliation‐oriented OCBs have on organizational effectiveness through their impact on workgroup task performance. Results from a sample of 150 limited‐menu restaurants showed that the relationship between challenge‐oriented OCBs and workgroup task performance has an inverted‐U shape and is moderated by affiliation‐oriented OCBs, and that workgroup task performance completely mediated the impact of challenge‐ and affiliation‐oriented OCBs (and their interaction) on organizational outcomes (i.e., sales dollars, profit as a percentage of sales, and employee turnover). Specifically, the findings showed that challenge‐oriented OCBs have a positive impact on workgroup task performance up to a point, and beyond that point only when certain enabling conditions (i.e., high levels of affiliation‐oriented OCBs) are present. Implications are discussed.     

DO SITUATIONAL VARIABLES ACT AS SUBSTANTIVE CAUSES OF RELATIONSHIPS BETWEEN INDIVIDUAL DIFFERENCE VARIABLES? TWO LARGE-SCALE TESTS OF “COMMON CAUSE” MODELS

James, Demaree, Mulaik, and Ladd (1992) proposed that situational variables may act as substantive ("common") causes of relationships between individual difference variables as well as statistical artifacts (i.e., measurement unreliability) associated with these variables, thus invalidating assumptions of current validity generalization/meta-analysis procedures. In this investigation, we report the results of two large-scale studies designed to test hypothesized relationships derived from two "common cause" models. Study 1 examines relationships between store-level organizational climate variables and employee satisfaction and performance variables for 33,097 sales personnel in 537 retail stores. Study 2 investigates relationships between store-level situational constraints and customer service perception and shopping variables for 31,611 customers from 564 retail stores. The results of these studies did not support the proposition that situational variables act as substantive causes of correlations among the respective employee and customer variables or the variances and reliabilities of these variables. The implications of these findings for meta-analyses in applied psychology as well as the generalizability of the findings are discussed.     

Customer service providers' attitudes relating to customer service and customer satisfaction in the customer-server exchange

The authors proposed and tested a model describing the relationship between customer service providers' perceptions and attitudes toward their service-related duties and their customers' perceptions of satisfaction with their service experiences. Results indicated that the perception of having standards for service delivery in an organization is strongly related to line-level employees' perceptions of support from coworkers and supervisors. Perceived support from coworkers was significantly related to service providers' customer orientation, whereas perceived support from supervisors showed a weaker relationship to a customer orientation. Ultimately, service providers' customer orientation was strongly related to customers' satisfaction with service. Finally, a set of post hoc analyses indicated that coworker and supervisory support explained a greater proportion of incremental variance in the model than did perceived organizational support alone.     

A Commentary on 'Exploring the Nature of Human Resource Developers' Expertise"

Previous research has shown that organizational identification (OI) of leaders is positively related to employee OI and, in turn, linked to positive behaviours of employees towards the organization. In the present study, we argue that leader OI does not only affect variables at the employee level but, through its influence on employees, also contributes to important customer outcomes (i.e., customer satisfaction, customer loyalty, and customer recommendations). Drawing on self-concept based theories of leadership effectiveness and insights from service linkage research, the present article proposes that OI plays an important role in these influence processes. Additionally, the article delineates the behavioural and psychological variables that intervene employee OI and customer outcomes. More specifically, we suggest that leader OI is positively related to follower OI, which results in customer-oriented service behaviour. Customer orientation, in turn, should positively affect customers' identification with the organization and, ultimately, result in customer satisfaction, customer loyalty, and customer recommendations. Results of a multilevel field study using data from leaders, employees, and customers provide support for our theoretical model.     

SINGLE-ATTRIBUTE UTILITY ANALYSIS MAY BE FUTILE,BUT THIS CAN’T BE THE END OF THE STORY: CAUSAL CHAIN ANALYSIS AS AN ALTERNATIVE

Research on providing single-attribute utility analysis has shown moderate or even negative effects on the acceptance of selection and training tests by human resource decision makers. In this study, we contrasted the perceived utility of single-attribute utility analysis with causal chain analysis as an alternative way of conducting utility analysis. Causal chain analysis focuses on measuring the linkages between HRM interventions and organizational outcomes mediated by employee attitudes and customer perceptions. We compared 144 managers' reactions to both methods of utility analysis concerning the variables understandability, information quality, perceived usefulness, user information satisfaction, and intention to use. Causal chain analysis yielded higher results than single-attribute analysis for these variables, and a compound measure of these constructs supported this finding. This indicates that causal chain analysis is a valuable alternative method of communicating the utility of HRM interventions.     

Identification with the retail organization and customer-perceived employee similarity: Effects on customer spending

Two constructs important to academicians and managers are the degree to which employees and customers identify with an organization, employee organizational identification (employee OI) and customer-company identification (customer identification), respectively. This research examines the effects of these identification constructs and the related construct of customer perceived similarity to employees on customer spending. Via a 1-year multilevel study of 12,047 customers and 1,464 store employees (sales associates) covering 212 stores of a specialty apparel retailer, our study contributes to the literature in 2 critical ways. First, we expand the theoretical network of employee OI and customer identification by examining the related construct of a customer's perceived similarity to store employees. We examine the incremental (not fully mediated) main and interaction effects of customer-perceived similarity to employees and employee OI on customer spending. Second, we examine the effect of customer identification on customer spending relative to the effect of customer satisfaction on customer spending. Thus, our study also contributes by demonstrating a potential complementary route to achieve customer spending (customer identification), a route that may be more readily affected by management than the efforts required for a sustained increase in customer satisfaction. Implications for academics and managers are offered. (PsycINFO Database Record (c) 2012 APA, all rights reserved).     

Leader responsiveness, equity sensitivity, and employee attitudes and behavior

This study investigated the relationships between leader responsiveness to employee requests and employee attitudes and behaviors in a sample of managers and their subordinates. Additionally, the study investigated the moderating effect of an individual difference variable (equity sensitivity), on the relationships between leader responsiveness and employee attitudes and behaviors. Leader responsiveness related significantly with job satisfaction, organizational commitment, and organizational citizenship behavior. Furthermore, equity sensitivity moderated the relationships between leader responsiveness and job satisfaction. Entitleds reported lower job satisfaction when manager fulfillment of employee requests was low than did Benevolents, whereas differences were minimal when manager request fulfillment was high. Implications of the findings were discussed.