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Effects of Emotional Displays 1 Running head: EFFECTS OF EMOTIONAL DISPLAYS ON CUSTOMERS Effects of Employee Emotional Displays on Customer Service Mary Lynn Bode University of Akron Effects of Emotional Displays 2 Abstract This study investigates how managers “manage” their employees’ emotional displays through emotional display rule requirements. The study consists of 20 store managers within 16 chain stores and 4 local stores. The managers were interviewed about the policies and procedures affecting their front-line employees who interact with customers the most. During the interview, questions were asked regarding how certain behaviors are important to providing high quality customer service. Additionally, emphasis was placed on informal and formal organizational policies and norms. This interview process helped gain insight into how organizations attempt to control the emotional displays of their employees. Effects of Emotional Displays 3 Effects of Employee Emotional Displays on Customer Service This study will examine how managers “manage” their employees’ emotional displays through emotional display rule requirements and how that will affect the customer service. Further, this study researches how employee emotional displays affect customer-employee interactions in front-line service contexts (e.g., coffee shops). The management styles will be studied with emphasis on front-line employees (such as cashiers) and will be part of a two-step research process. The first step is to get multiple managers of organizations to agree to an interview on the human resources policies and practices that are administered in their store. During that interview, various questions relating to how certain behaviors are important to providing high quality customer service will be asked. These behaviors include the extent to which employees need to provide error-free service, have knowledge of the products, be courteous to customers, show positive emotions, and avoid showing negative displays of emotion. As an additional part of step one, our researchers will inquire about the recruitment and selection processes that are used by the organization when selecting employees, formal training that pertains to employee emotional displays, informal processes that shape emotional displays, performance appraisal processes, performance feedback systems, and unspoken norms that may exist. The second step in the process will involve getting permission from the manager to observe customer-employee interactions in their organizations. This will allow our researchers to analyze the data and see whether or not larger amounts of Human Resource policies and practices lead to more positive employee emotional displays. We will also be collecting data from customers post-encounter to see whether or not these positive employee displays impact customer satisfaction. This report will focus on the interview process of the study and compare the chain with the local stores. Effects of Emotional Displays 4 Overall, little scientific research has been documented on how organizations identify and control the emotional displays of their employees. Some previous studies have shown data on what could be portrayed as informal and formal organizational influences, but none to the extent needed in order to properly document the emotional displays of their employees. Barger and Grandey completed a study that focused on emotional contagion and appraisal mechanisms. Their study provides a comprehensive test of encounter satisfaction by “examining mimicry and mood as mediators in service encounters, contrasting such mediation with direct path through perceived service quality” (Barger 2006). Their study showed that “mimicry effects” were supported but only “service quality appraisals” and not customers’ affect fully reconciled the relationship of employee smiling and encounter satisfaction (Barger 2006). Many aspects of Barger and Grandey’s study have been put into the methodology of this study. Method Interview Procedures This report focuses on the interview process of this study. The interviewers were four undergraduate students enrolled at the University of Akron in Akron, OH. A training session was provided to the interviewers and other researchers on distinguishing facial expressions and completing the observation sheets using photographs, videos and role-playing. The interviewers had an additional training session on how to complete the interview using role-playing. Prior to the actual data collection, interviewers had a one-on-one interview with a graduate student in order to practice the interview process. The interviewers set up a meeting time with the managers of various restaurants. Interviewers had 4-6 weeks to complete their interviews with various restaurants around the area. Effects of Emotional Displays 5 Results There were a total of sixteen chain stores and 4 local stores in our study. Overall, chain stores and local stores had similar distributions when it came to total number of employees, number of employees in front-line jobs, and average number of managers per shift. For instance, chain stores reported having a minimum of 4 employees and a maximum of 29 employees while local stores reported having a minimum of 4 employees and a maximum of 21 employees. On the other hand, there was surprising data when it came to the number of customers per shift and average sales. One would assume that the chains would have a higher number of customers and sales per shift but our data shows otherwise. Chain stores reported having a minimum of 40 customers per shift and a maximum of 699 customers per shift with a mean score of 193.80. Local stores reported having a minimum of 225 customers per shift and a maximum of 700 customers per shift with a mean score of 381.25. Even though chain stores reported having a lower amount of customers per shift they still reported higher average sales. Chains had a mean of 3046.82 while local stores had a mean of 1150.00 for average daily sales. An Independent-Samples t-test was conducted to compare the recruitment and selection processes between chain and local stores. The test showed that there was not a significant difference in chain (M=4.56, SD= 0.44) and local (M=4.63, SD=.48); t (18)= -.249, p= .81. These results suggest that there is no noteworthy difference between these groups in terms of recruitment and selection processes. An Independent-Samples t-test was also conducted to compare the formal training provided to employees in regards to emotional displays between chain and local stores. The test Effects of Emotional Displays 6 showed that there was not a significant difference in chain (M=3.09, SD= 1.23) and local stores (M=3.56, SD=.72); t (18)= -.724, p= .48). Another Independent-Samples t-test was conducted to compare the informal processes between chain and local stores. The test showed similar results in chain (M=4.53 SD= 0.34) and local (M=4.56, SD=.59); t (18)= -.142, p= .89. These results suggest that there is no difference between these groups in terms of informal processes that are used within the organizations. One more Independent-Samples t-test was conducted to compare the performance appraisal processes between chain and local stores. The test showed that there was not a significant difference in chain (M=3.59, SD= 1.23) and local (M=3.75, SD=.96); t (18)= -.235, p= .82. These results suggest that there is no difference between groups in terms of performance appraisal processes. Further, an Independent-Samples t-test was conducted to compare type of feedback managers provide employees in terms of their emotional displays between chain and local stores. The test showed that there was not a significant difference in chain (M=3.72, SD= 0.61) and local (M=3.94, SD=.37); t (18)= -.691, p= .50. These results suggest that there is no difference between groups in terms of recruitment and selection processes. Finally, an Independent-Samples t-test was conducted to compare the unspoken norms that may exist within the organization between chain and local stores. The test showed that there was not a significant difference in chain (M=4.00, SD= 1.05) and local (M=4.75, SD=.50); t (18)= -1.37, p= .19. These results suggest that there is no difference between groups in terms of unspoken norms. These data are shown in Table 1 below. Effects of Emotional Displays 7 Table 1: Variable t df Significance Recruitment and Selection Processes -.249 18 .81 Formal Training -.724 18 .48 Informal Training -.142 18 .89 Performance Appraisal -.235 18 .82 Feedback -.691 18 .50 Unspoken Norms -1.37 18 .19 The first nine questions in the interview concentrated on the extent to which the organization’s employees need to do specific tasks. These tasks ranged from providing error-free service to showing positive or negative emotions to customers. These questions were assigned a 6-point scale where one represents “not at all” and 6 represents “To a very large extent”. For the chain stores, all these questions had similar mean scores. Question 1 focused on employees providing error-free service (M=5.63, =.50). Question 2 dealt with employees giving prompt, efficient service (M=5.75, =.45). Question 3 concentrated on employees having specific store and product knowledge to answer customer questions (M=5.43, =.63). Question 4 talked about employees being neat in appearance (M=5.75, =.58). Question 5 focused on employees be courteous with customers (M=5.94, =.25). Question 6 dealt with employees giving customers individualized attention (M=5.63, =.72). Question 7 concentrated on employees understanding Effects of Emotional Displays 8 the specific needs of their customers (M=5.67, =.62). Question 8 talked about employees showing positive emotions such as enthusiasm and friendliness to customers (M=5.56, =.89). And Question 9 focused on employees avoiding showing negative emotions such as frustration or boredom to customers (M=5.69, =.70). Chain stores did not show much variation in the mean scores. The frequency of each answer given by chain stores is shown in Table 2. Table 2: 16 14 Frequency 12 (1) Not at all 10 8 6 4 2 (2) To a very small extent (3) To a small extent (4) To a moderate extent 0 (5) To a large extent (6) To a very large extent The data was very similar for the same questions in local stores. Question 1 focused on employees providing error-free service (M=5.75, =.50), Question 2 dealt with employees giving prompt, efficient service (M=6.00, =.001), Question 3 concentrated on employees having Effects of Emotional Displays 9 specific store and product knowledge to answer customer questions (M=5.00, =1.15), Question 4 talked about employees being neat in appearance (M=5.75, =.50), Question 5 focused on employees be courteous with customers (M=6.00, =.001), Question 6 dealt with employees giving customers individualized attention (M=5.50, =.58), Question 7 concentrated on employees understanding the specific needs of their customers (M=5.50, =1.0), Question 8 talked about employees showing positive emotions such as enthusiasm and friendliness to customers (M=6.00, =.001), And Question 9 focused on employees avoiding showing negative emotions such as frustration or boredom to customers (M=5.75, =.50). As was the case for chain stores, local stores showed little variation when it came to the mean scores. When comparing scores of chains versus local stores, some of the means were exactly the same. For example, Question 4 focusing on being neat in appearance had a mean of 5.75 for both chain and local stores. The frequency for each answer given by local stores is shown in the Table 3 below. Frequency Table 3: 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 (1) Not at all (2) To a very small extent (3) To a small extent (4) To a moderate extent (5) To a large extent (6) To a very large extent Effects of Emotional Displays 10 The data collected shows what one would assume a store to expect from their employees. However, it will be discussed later that the managers may not be implementing what they claim to be implementing when it comes to employee emotional displays. Since the data collected showed no significant difference shown between the groups, they were treated as one group. Questions 11 and 12 dealt with recruitment and selection processes within the organization. Question 11 centered around recruiting employees that showed appropriate emotions to customers. Based on our findings, there was an equal distribution with this question. We found that it had a mean of 4.55 and a standard deviation of .51. The same result was found with Question 12 that focused on the selection procedures within the organization that emphasize a display of appropriate emotions. Question 12 had a mean of 4.63 and a standard deviation of .59. The data is shown in the histogram below (Table 4) for the frequency of each answer given. Frequency Table 4: 14 12 10 8 6 4 2 0 Question 11 Question 12 1 2 3 5 point scale 4 5 Effects of Emotional Displays 11 Questions 13-16 centered on the formal training conducted within the organization in regard to emotional displays. All questions seemed to show similar outcomes in terms of the managers’ responses. Question 13 had a mean of 3.40 with a standard deviation of 1.23. Question 14 had a mean of 3.20 with a standard deviation of 1.47. Question 15 had a mean of 3.10 with a standard deviation of 1.25. Question 15 had a mean of 3.05 with a standard deviation of 1.39. The data is shown in the histogram (Table 5) for the frequency of each answer given. Frequency Table 5: 10 9 8 7 6 5 4 3 2 1 0 Question 13 Question 14 Question 15 Question 16 1 2 3 4 5 5 point scale Questions 17-20 focused on the informal processes that exist within the organization. All questions seemed to be answered similarly except for Question 18 that focused on employees teaching each other strategies for displaying appropriate emotions to customers. All the previous questions centered on the manager teaching or showing the employee what to do while this was the only question about the experienced employees helping out the new employee. Question 17 (M=4.40, =.75), Question 19 (M=4.95, =.22), and Question 20 (M=4.90, =.31) all had Effects of Emotional Displays 12 similar means while Question 18 (M=3.90, =1.02) had a slightly lower mean. This shows that managers do not rely on their experienced employees as much to teach the new employees strategies of how to display appropriate emotions to customers. The frequency for each answer given is in Table 6 below. Table 6: 20 18 16 Frequency 14 12 Question 17 10 8 Question 18 6 Question 19 4 Question 20 2 0 1 2 3 4 5 5 point scale Questions 21 and 22 focus on the performance appraisal process within the organization. The data for these questions give an interesting result. Question 21 (M=3.30, =.1.56) talks about the employees emotional displays with customers being formally evaluated in terms of effectiveness, while Question 22 (M=3.95, =.1.19) talks about the employees’ performance evaluations being affected by whether they actually show these proper emotions. Even though some managers stated that they do not have formal evaluations at their store, there still were a high number of managers that stated the performance evaluations would be affected. The frequency of each answer given is shown in the table below. Effects of Emotional Displays 13 Table 7: 10 9 8 Frequency 7 6 5 4 Question 21 3 Question 22 2 1 0 1 2 3 4 5 5 point scale The next section of the interview (Question 23-31) dealt with the type of feedback the manager provides the employees in terms of their emotional displays. It also touched upon rewards a manager may provide to their employee when they display appropriate emotions. This section of the data showed an interesting outcome. Question 25 (M=2.80, =1.51), Question 28 (M=2.90, =1.25), and Question 29 (M=3.10, =1.55) all dealt with giving the employees formal punishments or rewards such as docking pay or giving monetary rewards. The means on these questions were much lower than the others, which could suggest that managers might not be enforcing the consequences of the employee’s emotional displays formally. Question 23 (M=4.60, =.68), Question 24 (M=4.70, =73), Question 26 (M=4.60, =.60), Question 27 Effects of Emotional Displays 14 (M=4.10, =1.17), Question 30 (M=3.50, =1.28), and Question 31 (M=3.60, =1.19) focused on punishments and rewards that were not as formal such as giving verbal praise or rewards. The frequency for each answer given is shown Table 8 below. Table 8: 18 Frequency 16 14 Question 23 12 Question 24 Question 25 10 Question 26 8 Question 27 6 Question 28 4 Question 29 2 Question 30 0 1 2 3 4 5 Question 31 5 point scale Question 32 and 33 are the last main set of questions in the interview and deal with the unspoken norms that could exist within the organizations in terms of emotional displays. Question 32 (M=4.05, =1.23) talks about the store having “unwritten rules for displaying emotions to customers” while Question 33 (M=4.25, =1.02) talks about the informal norms improving communication about which emotional displays to use. The distributions within these two questions were in the expected range with means being high. These questions also showed very similar distributions when it came to frequency. The frequency for each answer given is shown below. Effects of Emotional Displays 15 Table 9: Discussion Overall, the data collected shows interesting results. The data showed no significance between groups in terms of recruitment processes and procedures, formal/ informal training procedures, performance appraisal processes, type of feedback given, and unspoken norms within the organization. Since there was no difference between groups, the groups were treated as one group. Our data showed that managers say they enforce specific feedback and procedures but seem to not implement those. Limitations Some of the limitations to our study are the fact that there was not an even number of chain and local stores. We had 16 chains and 4 locals stores. Also, there were some repeats in Effects of Emotional Displays 16 chain stores such as Chipotle Mexican Grill and Subway. If there were no repeats in types of stores, then generalizability could be greater. Effects of Emotional Displays 17 References Barger, Patricia B. & Grandey, Alicia A. (2006). Service with a smile and encounter satisfaction: Emotional contagion and appraisal mechanisms. Academy of Management Journal, 49, 6, 1229-1238.