THE IMPACT OF INTERNAL MARKETING ON EMPLOYEEjournal- IMPACT OF INTERNAL MARKETING ON EMPLOYEE’S JOB SATISFACTION OF COMMERCIAL BANKS IN JORDAN ... much do we need marketing? Aghazadeh et

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<ul><li><p> ijcrb.webs.com </p><p> INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS </p><p>COPY RIGHT 2013 Institute of Interdisciplinary Business Research </p><p> 811 </p><p>JANUARY 2013 VOL 4, NO 9 </p><p>THE IMPACT OF INTERNAL MARKETING ON EMPLOYEES </p><p>JOB SATISFACTION OF COMMERCIAL BANKS IN JORDAN </p><p> Sulieman Ibraheem Shelash Al-Hawary </p><p>Associate Professor of Business Management, Department of Business Administration, Faculty </p><p>of Finance and Business Administration, Al al-Bayt University, P.O.BOX 130040, Mafraq </p><p>25113, Jordan. </p><p>Kamal A. M. Al-Qudah </p><p>Associate Professor, Dean, Faculty of Business and Finance, American University of Madaba, </p><p>Petra Mashal Abutayeh </p><p>Researcher, Department of Accounting, Faculty of Business and Finance, American </p><p>University of Madaba Jordan. </p><p>Sherrihan Mashal Abutayeh </p><p>Researcher, Department of Accounting, Faculty of Business and Finance, American </p><p>University of Madaba Jordan. </p><p>Dyala Yahya Al-Zyadat </p><p>Researcher, Department of Accounting, Faculty of Business and Finance, American </p><p>University of Madaba Jordan. </p><p> Abstract The aim of the study was to examine the impact of internal marketing practices represented </p><p>by the empowerment, training, leadership and motivation, on job satisfaction of Jordanian </p><p>commercial banks. The target population of this study was employees of commercial banks in </p><p>Jordan.. A random sample was selected from this population. The data collection resulted in </p><p>203 answers from employees of commercial banks in Amman. The constructs in this study </p><p>were developed by using measurement scales adopted from prior studies. The instrument was </p><p>evaluated for reliability and validity. Statistical Package (SPSS) was used to test hypothesis. </p><p>Based on the statistical analysis and the values, Training and development has the highest </p><p>impact on employees job satisfaction followed by Motivation, Empowerment, </p><p>Communication, respectively. Thus, there is effect of the internal marketing practices on </p><p>employees job satisfaction. Provided the above results and statistics, and due to the critical </p><p>economic situation in Jordan, and the expensive cost of living, taking into consideration that </p><p>the human power is the greatest resource in Jordan, decision makers and managers have to </p><p>give motivation their full focus and attention in turning their employees into their most </p><p>reliable and permanent asset. And they have to focus on developing the different skills in the </p><p>employees and encourage them to be creative and discover their abilities by assigning them in </p><p>training courses that suit each employee skills or his/her interest. </p><p>Keywords: Internal marketing, Job satisfaction, employees, commercial banks, Jordan </p><p>1. Introduction To transform from a very small fish to become the big one and then the biggest among </p><p>all, lays the importance of marketing. Any manager knows that the right question is how </p><p>much do we need marketing? Aghazadeh et al. (2007) implied that the main reason for the mangers in the organization to focus on customer satisfaction and competition in the markets </p><p>are because of the main characteristic that is dynamicity of the environment. No one can </p><p>ignore the importance of marketing in all kind of businesses, small or large, profit or non - </p><p>http://scialert.net/fulltext/?doi=tasr.2011.364.374&amp;org=10#564188_ja</p></li><li><p> ijcrb.webs.com </p><p> INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS </p><p>COPY RIGHT 2013 Institute of Interdisciplinary Business Research </p><p> 812 </p><p>JANUARY 2013 VOL 4, NO 9 </p><p>profit organizations, due to the advanced technology that invaded all the fields in the 21st </p><p>century, which also resulted in new markets emerging and the competition level getting higher </p><p>and higher by the passage of time. To win the competition and become a big fish the </p><p>organization must satisfy its customers. Satisfied customer can be achieved if the employees are </p><p>satisfied (Schultz, 2002; Kotler, 2000; Pitt, Bruwer, Nel and Berthon, 1999), satisfying our </p><p>employees can be easily achieved through internal marketing. </p><p>Since Berry et al. (1976) the marketing literature has been discussing the internal </p><p>marketing for almost four decades now. Sasser and Arbeit (1980) were the first who alluded to </p><p>the internal marketing; the term was coined by Berry (1980). Berry (1981) implied that for </p><p>any organization to be successful there would be need for organizations to fulfill the needs of </p><p>its employees. According to Kotler (2000), internal marketing should be as a priority before </p><p>external marketing. IM starts with the organization recruiting the right people in the position </p><p>to reach the point where these employees are satisfied and willing to do their job and </p><p>accomplish customer satisfaction. The concept of internal marketing has evolved from the </p><p>original conceptualization of employee satisfaction/motivation by treating employees as </p><p>customers and jobs as products for improving service quality (Sasser and Arbeit, 1976; Berry, </p><p>1981). The main concept of internal marketing is to make the employees as important as the </p><p>external customers by treating them as internal customers (Grnroos, 1981). The importance </p><p>of internal marketing lies in motivating the employees and encouraging them to offer super </p><p>services to customers who will improve the customer satisfaction of the companys services </p><p>(Lings and Greenly, 2005). </p><p>Job satisfaction is not new in the marketing literature it was first presented in the mid </p><p>1930s (Hoppock, 1935). Employee job satisfaction is derived from the mental and physical </p><p>satisfaction they experience in the environment they work in and from the work itself (Tadeka </p><p>et al. 2005). The attitude and behaviours of the employees determine the quality of the </p><p>services provided to the customers (Tadeka et al. 2005). Ivancevich et al. (1997) state that job </p><p>satisfaction is the state a worker has of a feeling how well he/she is in an organization. </p><p>When the employers are aware of the needs of their employees, customers will be more </p><p>satisfied (Zeithaml et al., 1988; Bitner et al., 1990). Therefore, in relating with to win competitions, </p><p>and become the biggest fish among all as stated above. Successful marketing can be achieved if the firms are </p><p>involved both in external and internal marketing (Caruana and Calleya, 1998). Most especially in this era </p><p>that most of the service organizations are striving to exceed the expectation of its customers in </p><p>order to promote satisfaction and loyalty among the shareholders (Ballantyne et al., 1995). </p><p>The importance of the employees' role has led service organizations to adopt internal </p><p>marketing and hence, treat their employees as internal customers (Mishra, 2010). </p><p>The study intended to investigate the effect of internal marketing practices represented </p><p>by the empowerment, training, leadership and motivation, on job satisfaction of Jordanian </p><p>commercial banks. The remaining sections of this empirical paper are arranged in the </p><p>following manner. Literature review and hypotheses development in section 2. The research </p><p>model is presented in section 3. The research methodology is discussed in section 4, including </p><p>detailed information on the Measures, Sample, Data Gathering. Data analysis performed in </p><p>this study, followed by a presentation of the results and Analysis in section 5. Discussion </p><p>presented in section 6. Followed by managerial implications in section 7. Finally, the </p><p>limitation of the study in addition to direction for future researches presented in section 8. </p></li><li><p> ijcrb.webs.com </p><p> INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS </p><p>COPY RIGHT 2013 Institute of Interdisciplinary Business Research </p><p> 813 </p><p>JANUARY 2013 VOL 4, NO 9 </p><p>2. Theoretical framework and Hypotheses development 2.1 Internal Marketing </p><p>The term internal marketing appears to have been first used by Berry et al. (1976) and later by </p><p>George (1977) and Thompson et al. (1978, p. 243) and Murray (1979). Many proponents of </p><p>IM follow Berrys (1980) original view point that concentrate on its relevance to service firms </p><p>in particular; and in general, by seeing the employee as an internal customer, who is an </p><p>important party in delivering satisfaction to external customers, (as cited Pitt M. et al, 1999). </p><p>There are many definitions of internal marketing found in the past decade with some authors </p><p>viewing internal marketing as either a concept, a philosophy or a management practice (e.g. </p><p>Grnroos, 1985; George, 1990; Wilson, 1990 as cited by Lings, 2000). Internal marketing is </p><p>defined as treating both employees and customers with equal importance through proactive </p><p>programs in order to achieve the objectives of the organization (Woodruffe, 1995). Grnroos </p><p>(1981) defined internal marketing as the behavior of selling a corporation to its internal </p><p>customers (employees) under the principle that highly satisfied employees will help create a </p><p>market-oriented and customer-centered corporation. The concept of internal marketing is </p><p>viewed employees as customers, so internal customers need to have their needs satisfied </p><p>(Berry, 1981). Internal marketing is also defined as The planned use of communication </p><p>actions to systematically influence the knowledge, attitudes and behaviours of current </p><p>employees by Stauss and Hoffman (2000). Rafiq and Ahmed (2000, p. 449) stated that IM </p><p>was: "A planned effort using a marketing-like approach to overcome organizational resistance </p><p>to change and to align, motivate, and inter-functionally co-ordinate and integrate employees </p><p>towards the effective implementation of corporate and functional strategies in order to deliver </p><p>customer satisfaction through a process of creating motivated and customer oriented </p><p>employees". </p><p>While the dimensions of internal marketing measurement as discussed by Hogg et al., </p><p>(1998) are: communication, staff training; appraisal and feedback; and customer </p><p>consciousness. Berry et al. (1976) involve actions such as employee attraction and selection, </p><p>employee socialization, empowerment, participation in decision making and establishment of </p><p>accurate and open information between employees and management. Service training </p><p>programs, performance incentives, and vision for service excellence key elements of internal </p><p>marketing (Tsai and Tang, 2008). Lings and Greenley (2005) has recently been adopted for </p><p>other studies (Gounaris, 2006), as it goes beyond the mere enumeration of human resources </p><p>management activities (selection, training and development, incentive systems or </p><p>empowerment) shown by other constructs in order to represent internal marketing (Ahmed et </p><p>al., 2003; Foreman and Money, 1995; Tansuhaj et al., 1987). Rafiq and Ahmed (2000) </p><p>identify the main elements of internal marketing as employee motivation and satisfaction, </p><p>customer orientation and customer satisfaction, inter-functional co-ordination and integration, </p><p>marketing-like approach to the above, and implementation of specific corporate or functional </p><p>strategies. Ching and HsinHsin (2007) identified five dimensions of internal marketing: </p><p>training, administrative support, internal communication, external communication, human </p><p>resources management., communication, and training and development. </p><p>Motivation: According to Mark et al. (1998) Motivation is the movement of workers to act in </p><p>a desired manner. Motivation is defined by Turner (1995) as voluntary uses of high-level </p><p>self-regulated learning strategies, such as paying attention, connection, planning, and </p><p>monitoring (p. 413). According to Broussard and Garrison (2004) motivation is the attribute </p><p>that moves us to do or not to do something (p. 106). </p><p>Empowerment : Participation is a process by which influence is shared among individuals </p><p>who are otherwise hierarchical unequal (Locke and Schweiger, 1979; Wagner, 1994). </p></li><li><p> ijcrb.webs.com </p><p> INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS </p><p>COPY RIGHT 2013 Institute of Interdisciplinary Business Research </p><p> 814 </p><p>JANUARY 2013 VOL 4, NO 9 </p><p>Empowerment has been described as a venue to enable employees make decisions (Bowen &amp; </p><p>Lawler, 1992) and as a personal experience where individuals take responsibility for their </p><p>own actions (Pastor, 1996). </p><p>Communication: According to Naude et al. (2002), Communication is a vital prerequisite for </p><p>a well-functioning IMO culture. Without people being able or prepared to communicate with </p><p>each other, there will be no inter-departmental or inter functional co-ordination. According to </p><p>Dwyer (2005) communication is defined as the process whereby people within an </p><p>organization give and receive messages as cited by Tourani et al. 2012. According to Ahmed </p><p>and Rafiq (2002). </p><p>Training and development: training increase or develop the managerial skills (Rosti &amp; </p><p>Shipper, 1998). Abiodun (1999) submitted that: Training is a systematic development of the </p><p>knowledge, skills and attitudes required by employees to perform adequately on a given task </p><p>or job (Abiodun, 1999, as cited by Saleem et al. 2011). </p><p>2.2 Job satisfaction </p><p>Job satisfaction represents one of the most complex areas facing todays managers when it </p><p>comes to managing their employees. What do we mean by job satisfaction? Why job </p><p>satisfaction is important? Does job satisfaction really affect the employee attitudes toward </p><p>their work and duties?! Job satisfaction is directly related with the positive job performance . </p><p>Different researchers have different approaches towards defining job satisfaction (Vroom, </p><p>1964; Spector, 1997; Statt, 2004; Armstrong, 2006). Locke (1979) defined job satisfaction </p><p>and dissatisfaction as that job satisfaction is the pleasurable emotional state resulting from </p><p>the appraisal of ones job as achieving or facilitating ones job values. Spector (1997) </p><p>defined Job satisfaction as the extent to which people like (satisfaction) or dislike </p><p>(dissatisfaction) their jobs. Shimizu et al, (2005); Suzuki et al. (2006) refers to job </p><p>satisfaction as a joyful or positive emotional state regarding work or the work experience. </p><p>Vroom (1964) defined job satisfaction as affective orientations on the part of individuals </p><p>toward work roles which they are presently occupying. Job satisfaction is seen by many </p><p>researchers as the general attitude which is the result of many specific attitudes (Reddy &amp; </p><p>Rajasekhar, 1990). Kaliski (2007) implies that Job satisfaction is the key ingredient that leads </p><p>to recognition, income, promotion, and the achievement of other goals that lead to a feeling of </p><p>fulfillment. One of the main factors when it comes to efficiency and effectiveness of business </p><p>organizations is job satisfaction (Aziri, 2011). Job satisfaction is of vital importance for the </p><p>growth of any organization. </p><p>2.3 Internal marketing and job satisfaction </p><p>The relation between internal marketing and job satisfaction had been the concern of many </p><p>researchers (Rajyalakshmi and K...</p></li></ul>