Using job satisfaction and pride as internal-marketing tools

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<ul><li><p>Using </p><p>Job Satisfadon and Pride as Internal-marketing Tools </p><p>Employees attitudes and opinions about their colleagues and the work environment may make all the difference between workers merely doing a good job and delivering exceptional guest service. </p><p>BY DENNIS B. ARNETT, DEBRA A. LAVERIE, AND CHARLIE McLANE </p><p>I ncreased competition in the hotel industry has caused many companies to consider new strategies for gaining a competitive advantage. To implement new marketing approaches successfully, however, it is often necessary to first alter the culture of an organization to help align employees attitudes with the new strategy. For example, many service- oriented organizations institute strategies that are designed to increase customer satisfaction and loyalty, and the success- ful implementation of those plans requires that employees adopt certain actions and beliefs (e.g., being customer-focused and cooperating with each other). </p><p>Managers can alter the culture of their organizations by (1) hiring employees who fit well with the new vision of the organization, (2) training employees in skills that match the new vision, or (3) motivating employees to adopt actions and </p><p>attitudes that are consistent with the new vision. This process is often referred to as internal marketing. As Philip Kotler suggests, internal marketing must precede external market- ing. It makes no sense to promote excellent service before the companys staff is ready to provide it.] </p><p>Benefits of Internal Marketing Successful internal marketing programs can lead to im- portant payoffs for an organization. The benefits of internal marketing stem from four main sources: (1) low employee- </p><p> Philip Kotler, MarketingManagement, (Upper Saddle River, NJ: Prentice Hall, 2000), p. 22. </p><p>0 2002, CORNELL UNIVERSITY </p><p>APRIL 2002 Cornell Hotel and Restaurant Administratlon Quarterly 87 </p></li><li><p>tiUMAN RESOURCES I EMPLOYEE PRIDE </p><p>turnover rates, (2) an increase in service quality, (3) high 1 eve s o employee satisfaction, and 1 f (4) an improved ability to implement change in the organization.2 </p><p>First, the reduction in employee turnover de- creases both recruiting and training costs. Because fewer new employees are needed, resources that would have been directed to filling empty posi- tions and training new employees can be used for other purposes (e.g., improving the skills of existing employees). In addition, low turnover rates translate into less stress for existing employ- ees. When people leave an organization, other employees are often called on to fill in until new employees are hired and trained, which can increase those reassigned employees level of stress and, in turn, decrease their level of job satisfaction. </p><p>Second, internal marketing has both an in- ternal (employee) focus and an external (customer) focus. It is internally focused because it involves motivating, mobilizing, co-opting, and manag- ing employees. It is externally focused because it is designed to improve the way a company serves its customers. Therefore, internal marketing pro- vides a way to encourage employees to continu- ally improve the way they serve customers and each other. </p><p>Third, an increase in employee satisfaction motivates workers to be more engaged and, as a result, they are more likely to take actions that result in increased guest satisfaction and profit- ability. For example, Spinelli and Canavos sug- gest that the most-satisfied employees respond best to the needs of individual guests, which in- creases the overall level of satisfaction of the guests.3 </p><p>ZSusan L. Taylor and Robert M. Consenza, Internal Mar- keting Can Reduce Employee Turnover, Supervision, Vol. 58, No. 12 (December 1997), pp. 3-5; Robert C. Lewis, Hospitality Marketing: The Internal Approach, Cornell HodandRestaurantAdministration Quarter&amp;, Vol. 30, No. 3 (November 1989), pp. 41-45; W. Benoy Joseph, Inter- nal Marketing Builds Service Quality, Journal of Health CareMarketing, Vol. 16, No. 1 (Spring 1996), pp. 54-59; and Sybil F. Stershic, New Imperative for Service Manage- ment, Marketing News, Vol. 28, No. 19 (May 9, 1995), pp. 22-23. </p><p>3 Michael A. Spineili and George C. Canavos, Investigating the Relationship between Employee Satisfaction and Guest Satisfaction, Cornell Hotel and Restaurant Administration Quarter4 Vol. 41, No. 6 (December ZOOO), pp. 29-33. </p><p>Fourth, one of the most difficult things to manage in organizations is change. For organi- zations in transition, internal marketing is cru- cial. Internal marketing helps reinforce and de- velop a culture where the need for change is understood and accepted. As a result, the orga- nization is more successful at implementing new strategies, which improves the chances that the strategies will be successful. </p><p>One of the basic benefits of successful internal marketing is the ability to motivate employees to practice behavior that will assist in the imple- mentation of marketing strategies. Since the ho- tel industry has always been committed to de- veloping customer loyalty, it is as critical now as ever for hotel employees to act in a manner that encourages guests loyalty. That is, customer loy- alty is important in the hotel industry because it is a mature industry and competition is intense. As a result, there is often little product differen- tiation within segments (e.g., many luxury ho- tels offer guests many of the same amenities) .4 </p><p>Because most hotels rely directly on their em- ployees to deliver superior service, hotel employ- ees can be a source of competitive advantage. Customer satisfaction, service quality, and cus- tomer loyalty are influenced considerably by the beliefs and actions of hotel employees. By pro- viding outstanding service, hotel employees can enhance the image of the hotel and the level of perceived (and actual) service quality. </p><p>We suggest that successful internal-marketing strategies can enhance both job satisfaction and pride in the organization, which result in an in- crease in positive employee behavior. Positive em- ployee behavior is characterized by a commitment to providing the guest with good service, co- operation with other employees, and a commit- </p><p>4 JohnT. Bowen and Stowe Shoemaker, Loyalty: A Strate- gic Commitment, Cornell Hotel and RestaurantAdministra- tion Quarter4 Vol. 39, No. 1 (February 1998), pp. 12-25. </p><p>5 Cathy A. Em and Judy A. Siguaw, Best Practices in Ser- vice Quality, Cornell Hotel and Restaurant Administration Quarter&amp;, Vol. 41, No. 5 (October 2000), pp. 20-24. </p><p> Mary Jo Bitner, Bernard H. Booms and Mary Stanfield Tetreault, The Service Encounter: Diagnosing Favorable and Unfavorable Incidents, Journal of Marketing, Vol. 54, No. 1 (January 1990), pp. 71-84. </p></li><li><p>EMPLOYEE PRIDE HUMAN RESOURCES </p><p>ment to the organization. These activities and beliefs contribute to a hotels ability to deliver a high level of service that encourages customer loyalty. We note that although the effects of em- ployee satisfaction have been researched exten- sively, the effect of pride has not. We posit that both job satisfaction andpride are important vari- ables that can be used by managers to encourage employees to engage in desired behavior. </p><p>, 0 el for Increasing Positivi~ r\ld . l~hplovce Kelm:ic~l , The focus of many hotels is to develop long-term competitive advantages over their rivals that lead to increased customer loyalty and, in turn, in- creased profitability, Because many attributes of the products and services they offer can be easily copied by competitors (e.g., the size or price of rooms), successful hotels must build customer loyalty using factors other than product-and-ser- vice attributes. Developing loyal customers is easier when an organization emphasizes the im- portance of the relationship it has with its em- ployees. We suggest that developing a good rela- tionship with employees is a precursor to building a good relationship with customers. This study focuses on the antecedents of positive employee behavior (i.e., a commitment to customer ser- vice, cooperation with other employees, and a commitment to the organization). Specifically, our investigation focuses on how hotels can use an internal marketing approach to encourage their employees to develop a sense of job satis- faction and pride in the hotel. Exhibit 1 provides an overview of the factors included in our study as well as the hypothesized relationships among them. </p><p>Job satisfaction refers to an employees general affective evaluation of his or her job. Job satis- faction is fundamental in the hotel industry as it helps to ensure that employees will treat custom- ers with the utmost respect. Because of the im- portant role that service employees play in de- veloping relationships with customers, employees satisfaction is a major concern for organizations that are interested in increasing customer loyalty. Employees job satisfaction has been linked to an increase in customer orientation by the em- </p><p>Antecedents and consequences of job satlsfactiorl and pride in the organization (all positive relationshps) </p><p>(3 Organization Performance </p></li><li><p>HUMAN RESOURCES I EMPLOYEE PRIDE </p><p>ployee, an increase in customer satisfaction, and an increase in perceived service quality, Research suggests that satisfied employees believe that ap- propriate behavior will be rewarded by the orga- nization. In general, job satisfaction leads to employees intentions to keep performing well their required job tasks, which, in turn affects their actual behavior. Therefore, employee job satisfaction is a crucial prerequisite to service ex- </p><p>There is a positive relationship between pride in the organization and positive employee behavior-just as there is a positive relation- ship between job satisfaction and pride. </p><p>cellence. We posit that employees who are satis- fied with their jobs will also be those most likely to engage in positive employee behavior. </p><p>Pride in the Organization Pride is an emotion that is crucial to understand- ing human behavior. It is derived from both self- appraisals and others opinions. Pride represents a belief that one is competent and viewed posi- tively by others. It encourages self-control and is responsible for people behaving in accordance with norms. Pride in an organization results from specific perceptions of the organization and from experiences with that organization. Moreover, it stems in part from the belief that ones actions influenced the success of the organization. It is enhanced by ones personal beliefs about the or- ganization as well as by other peoples percep- tions of it. </p><p>Employees with a high level of pride in an organization perceive that organization as impor- tant, meaningful, effective, and as a worthwhile part of the community. As a result, employees are more likely to engage in activities that help </p><p>7 Valerie Zeithaml and Mary Jo Bitner, Services Marketing: Integrating Customer Focus Across the Firm (New York, NY Irwin McGraw-Hill, 2000). </p><p>a Sheldon Stryker, The Vitalization of Symbolic Interactionism, Social Psychological Quarterly, Vol. 50, No. 1 (March 1987), pp. 83-94; and Susan Shott, Emotion and Social Life: A Symbolic Interactionist Analysis, Ameri- can Journal of Sociology Vol. 84, No. 6 (May 1979), pp. 1317-1334. </p><p>the organization to meet its objectives. Emotions such as pride have been linked to high quality service delivery and employees going out of the way or beyond the call of duty for customers. For example, Howard Johnson franchisees indi- cate that employee pride played a key role in its mid-l 990s turnaround.9 Therefore, we predict that there is a positive relationship between pride in the organization and positive employee behav- ior. In addition, we suggest that there is a posi- tive relationship between job satisfaction and pride.O </p><p>Role Clarity Role clarity suggests that employees are clear about the scope and responsibilities of their job. In the context of the hotel industry, role clarity involves providing clear expectations of the role- prescribed behavior that the organization moni- tors and rewards. For example, organizations of- ten define explicitly role-prescribed actions such as greeting guests by name, making a personal promise to a customer that a request will be pro- cessed quickly, and answering the phone in three rings. When employees know what is expected of them, they are more likely to meet role obli- gations and are more satisfied with their jobs.12 </p><p>9 Robert Nozar, Pride Pushes HoJos Success, Hotel and Motel Management, Vol. 210, No. 3 (February 20, 1995), pp. 3, 24. </p><p> As pointed out by two anonymous reviewers, the rela- tionship between pride and job satisfaction could also be reversed. That is, a case could be made for pride leading to an increase in job satisfaction. Indeed, one could argue that the relationships could go both ways. However, our argu- ment is based on the premise that pride is based on self and social appraisals. We posit that job satisfaction acts as a com- ponent of both self and social appraisals linked to the orga- nization. To feel pride in an organization, one mttst believe that ones actions are influencing the organization positively. Job satisfaction, we argue, provides the needed connection between an employees actions and the organization. De- finitive evidence as to the exact relationship could be de- rived from longitudinal studies. However, currently we know of no such study. </p><p>I1 Patricia Galagan, Putting on the Ritz, Training &amp;De- velopment, Vol. 47, No. 12 (December 1993), pp. 41-45. </p><p>a David E. Bowen and Benjamin Schneider, Boundary Spanning Role Employees and the Service Encounter: Some Guidelines for Management and Research, in The Service Encounter: Managing Employee/Customer Interaction in Ser- vice Business, ed. J.A. Xzepiel, M.R. Soloman, and C.F. Surprenant (New York, NY: Lexington Books, 1985), pp. 127-147. </p><p>90 Cornell Hotel and Restaurant Administration Quarterly APRIL 2002 </p></li><li><p>EMPLOYEE PRIDE I </p><p>Conversely, when employees are unsure of what their job entails they tend to feel frustrated. Therefore, we expect a positive relationship be- tween role clarity and job satisfaction. </p><p>Employees need to know that they will be mea- sured on how well they perform their duties and that it is worthwhile to perform their duties we11.3 Employees percep tions of rewards are closely related to those workers motivation and performance. To be effective, any reward system will support organizational goals, encourage co- operation, be fair, have a positive influence on performance, and focus on serving the customer. In brief, effective rewards are a key to achieving the strategic goals of a company. In the hotel in- dustry, effective rewards help employees to un- derstand the level of guest service that needs to be delivered. In addition, they provide employ- ees with a measure of how much the company values their contributions. </p><p>The purpose of a reward system is to moti- vate employees to practice proper behavior. To do this the rewards offered must be perceived...</p></li></ul>


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