Download The Organizational Agenda

The Organizational Agenda
Four Seasons
1
The OB Connection
• The Services Angle
– Given the greater likelihood of human interactivity,
internal experiences of employees are more likely to be
visible to the consumers.
• What do employees experience?
– Climate = the perceptions/sense that employees have
about what is important to the firm/institution?
• drivers: boss, peers, HRM practises, marketing,
operations, etc.
– Culture
• more intangible than climate
• Shared values about what is right/wrong, what
works/doesn’t
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
2
The Organizational Agenda
• The three tiers in a service organization
– customer
– boundary
– coordination
• Points to Ponder
– what are the capabilities to be developed in the frontoffice and front-office personnel?
– does the organization provide the necessary inputs
and incentives for successful performance by frontoffice personnel?
– what are the drivers of employee satisfaction?
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
3
The HRM Agenda
• Mission
–From:
• Equipping employees to perform/meet
the requirements of the job
–To:
• Ensuring employees are capable of
meeting the expectations of consumers
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
4
What Makes Employees Tick?
• Basic needs
– Security
– Esteem
– Justice/Fairness
• Rewards
– Monetary = economics of compensation
– Non-monetary = the social contract between employee and the
institution
• conflict between monetary and non-monetary (reward
countable, tangible behaviors only)
• the relative importance of monetary versus non-monetary
conflicts
• Performance = input (selection) + context (support) + rewards
(internal and external)
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
5
Beyond an Internal Conception of HRM
• The employee in many instances is the “service” in the eyes of the consumers
– Quality Control
• Selection, Training
• Rewards and Retention
• The HRM Spillover effect
– Employee satisfaction influences consumer satisfaction
• “Experience” goods imply a need for quality signals
– Employee morale
– Physical Landscape
• Do unto consumers, as the Firm does to You
– OCBs
• Point to Ponder:
– When should we use the Customer as the Judge and not the supervisor (or
pre-defined rules and procedures)?
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
6
Some Interesting Correlations
• When employees perceive strong culture, customer
report receiving superior service quality
• Strong service culture plus support (managerial
actions, logistics and systems support,
communications, etc.,) correlate with lower stress
indicators at the job level and higher job
satisfaction
• Possible to have both types of correlations
(positive as well as negative) between various
indicators of organizational effectiveness
(customer satisfaction, financial performance, etc.,)
and service culture
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
7
The Loyalty Premium: Employees
P4 Sept/Oct -2003
Services Marketing – Professor V. Padmanabhan
8