International School of Management


ACADEMIC LITERATURE REVIEW Overview



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ACADEMIC LITERATURE REVIEW

Overview


The following sources were consulted for the purpose of locating and identifying related publications, books, and media sources in preparation for writing this paper: Proquest, the Internet, The Harvard Review, The Economist, Marvel, and the URSUS Network. There were many academic papers relating to employee satisfaction, customer satisfaction, and strategies for increasing corporate profitability that were used as references. There were also special searches for information on these and related topics conducted using proprietary searches at the Libraries of Harvard University, Northeastern University, Boston University, and the University of Maine. Searches were conducted for papers related to the topics of leadership, management, work environment, employee training programs, employee development, employee recognition, organizational goals, communicating with employees, employees and teamwork, employee empowerment, social interaction in the workplace, organizational culture, employee benefits, employee motivation, customer-centric organizations, customer acquisition, branding, target marketing, delivering world-class service, customer expectations, training for customer service, the employee-customer relationship, measuring customer satisfaction, knowledge management systems, customer relationship management, customer loyalty, and service profit chain analysis.
Although there were an ample amount of papers related to the individual elements that make up the triad known as the “service profit chain”, there was only a small amount of direct research available on the relationship between employee satisfaction, customer service and corporate profitability. Some of the related papers found during the research process were reviewed, incorporated into the paper, and summarized in the following sections: employee satisfaction, customer service, customer loyalty, and corporate profitability.

Employee Satisfaction


The research associated with the many different aspects involved in employee satisfaction is plentiful. Focusing on employees, the study sought to understand the organizational drivers of employee satisfaction and employee engagement (the degree of employee motivation and sense of inspiration, personal involvement, and supportiveness), and the downstream effects of these employee attitudes on customers and financial performance (Klein et al. 1995). The foundation of good human relations – the interaction between employers and employees and their attitudes toward one another – is a satisfied work force. Job satisfaction is the degree of enjoyment that people derive from performing their jobs (Chapter 11 2006). Many studies, including an in-depth study by the Unites States Army conclude that organizations that focus on the human resource aspect of their business will create a high performance work place that will result in satisfied employees, satisfied customers, and allow the organization to capably adapt to change.
Many articles, publications, and studies attempt to define the many elements associated with employee satisfaction in the workplace (Adams 2006, Agnvall 2006, Butcher 2006, Cascio 1998, Gray 2006, Levine 1995, Melamed 1996, Parham 2003, Pounds 2006, Roche 2006, Smith 2006). One of the indicators that show achievement toward improved employee satisfaction is success of the company and personal growth and development of employees. “Employees who feel as though they have ownership or power in their job, not only prove to be a beneficial employee for their direct supervisor, but also to the entire company” (Hayes 2003). A study conducted at the University of Piraeus acknowledges and discusses the dramatic changes that have taken place in organizations around the world in the past decade. Traditional hierarchies and functional structures are being reduced. Although re-engineering and downsizing initiatives are commonplace, there is increasing emphasis on enhancing employee involvement, team decision-making, and various partnership arrangements (Dimitriades 2001).
There are so many different elements associated with the components that are related to the subject of employee satisfaction, that many different sources originating from periodicals, books, white papers, and dissertations are used and referenced in this paper. Literature provides various interpretations concerning the change organization development strategies of management in generating desired outcomes. There is the suggestion that many “change” initiatives have employee cooperation towards reaching mutual interests (Ascigil 2003). Many studies attributed a majority of improvement in the area of employee satisfaction as a by-product of improved communication within the organization. Extensive research results show that people derive greater satisfaction from their jobs and perform to a higher standard when they are engaged in their workplace. An integral and very important factor of engagement is the ability to effectively communicate (MacGregor 2006). Another study that examined effective employee communication in the workplace highlights the fact that without communication, nothing could be accomplished. Communication involves three essential elements: a message, someone to send the message and someone to receive the message. Effective communication can only take place when the intended message reaches the intended recipient, and the message was understood with the intended meaning of the sender (Slagle 2006).
There is ample literature and research available that suggests employee recognition and motivation programs have a great deal to do with improving employee satisfaction. The main reason for providing an employee recognition program is to reap the benefits in morale and greater productivity resulting from a program that is clearly defined and in which the employees feel they can earn recognition for exceptional work (Roche 2006). The implementation of effective award and recognition programs can create a positive working environment that encourages employees to thrive. “Recognition makes employees feel valued and appreciated, it contributes to higher employee morale, increases organizational productivity, and can aid in recruitment and retention” (Brintnall 2005). Most of the literature made the connection between an increase in employee satisfaction and the subsequent positive impact on customer satisfaction. Recognition programs can help to define standards of performance, and establish guidelines for evaluation methods of employee behavior. Happy workers, high productivity and strong customer satisfaction characterize high performance workplaces (Recognition 2006).



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