Using job satisfaction and pride as internal-marketing tools

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  • Using

    Job Satisfadon and Pride as Internal-marketing Tools

    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.

    BY DENNIS B. ARNETT, DEBRA A. LAVERIE, AND CHARLIE McLANE

    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).

    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

    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.]

    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-

    Philip Kotler, MarketingManagement, (Upper Saddle River, NJ: Prentice Hall, 2000), p. 22.

    0 2002, CORNELL UNIVERSITY

    APRIL 2002 Cornell Hotel and Restaurant Administratlon Quarterly 87

  • tiUMAN RESOURCES I EMPLOYEE PRIDE

    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

    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.

    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.

    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

    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&, 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.

    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.

    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.

    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

    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.

    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-

    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.

    5 Cathy A. Em and Judy A. Siguaw, Best Practices in Ser- vice Quality, Cornell Hotel and Restaurant Administration Quarter&, Vol. 41, No. 5 (October 2000), pp. 20-24.

    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.

  • EMPLOYEE PRIDE HUMAN RESOURCES

    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.

    , 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.

    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-

    Antecedents and consequences of job satlsfactiorl and pride in the organization (all positive relationshps)

    (3 Organization Performance

  • HUMAN RESOURCES I EMPLOYEE PRIDE

    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-

    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.

    cellence. We posit that employees who are satis- fied with their jobs will also be those most likely to engage in positive employee behavior.

    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.

    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

    7 Valerie Zeithaml and Mary Jo Bitner, Services Marketing: Integrating Customer Focus Across the Firm (New York, NY Irwin McGraw-Hill, 2000).

    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.

    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

    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

    9 Robert Nozar, Pride Pushes HoJos Success, Hotel and Motel Management, Vol. 210, No. 3 (February 20, 1995), pp. 3, 24.

    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.

    I1 Patricia Galagan, Putting on the Ritz, Training &De- velopment, Vol. 47, No. 12 (December 1993), pp. 41-45.

    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.

    90 Cornell Hotel and Restaurant Administration Quarterly APRIL 2002

  • EMPLOYEE PRIDE I

    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.

    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.

    The purpose of a reward system is to moti- vate employees to practice proper behavior. To do this the rewards offered must be perceived as being valuable. In addition, the reward system must be perceived as being ftir (i.e., every one has a chance to be recognized, and rewards are commensurate with the outstanding service performed). The ex- tent to which employees believe that the reward system is appropriate and fair will have a posi- tive effect on employees job satisfaction,

    Employees, like guests, prefer an environment that is pleasing and offers rewarding experiences.* One of the factors that employees use to judge a work environment is the image the firm portrays, which is influenced by the appearance of the sur- roundings and the level and reputation of the organization. Other factors include an opportu- nity to grow, the existence of competent and knowledgeable co-workers, the ability to be in-

    I3 Leonard L. Berry and A. Parasuraman, Ma&&g Ser- vices Competing through Quality (New York, NY: The Free Press, 1991).

    I4 Judy King, Industry Must Treat Employees, Guests with the Same Concern, Hotel &Motel Management, Vol. 2 14, No. 1 (January 11, 1999), p. 12.

    volved in decision-making, and the availability of tools necessary to do the job well. Finally, employees look for an environment where they feel trusted and can count on the other people in the organization. Is Hotel-industry executives sug- gest that when companies provide an excellent work environment they achieve employee satis- faction. Therefore, we expect to find a positive relationship between work environment and job satisfaction.

    Customer loyalty must begin with employee loy- alty in a culture that is employee-based and employee-driven. Managers need to ensure that employees have the proper training and resources that allow them to deliver high levels of guest service. In addition, it is important that manag- ers listen to employees and act appropriately. Employees perceptions of managers fairness are important and are related to how the managers handle such issues as allocating the workload, applying standards, performing evaluations, and issuing compensation and promotions.8 Fair and effective procedures coupled with the proper ex- ecution of such procedures provide a guarantee of rewards that promote exceptional employee cooperation and customer-service performance. Thus, we expect to find a positive relationship be- tween employees evaluation of managers and work- ers job satisfaction and pride in the organization.

    Organizational performance can be a source of pride for employees. People like to associate them- selves with successful groups as a means to bol-

    I5 Laurette Dub& Cathy A. Enz, Leo M. Renaghan, and Judy A. Siguaw, Managing for Excellence: Conclusions and Challenges from a Study of Best Practices in the U.S. Lodg- ing Industry, Cornell Hotel and Restaurant Administration Quarter/y, Vol. 4 1, No. 5 (October 2000), pp. 30-39.

    I6 Spinelli and Canavos, pp. 29-33.

    Carlo Wolff, Great Hospitality Is Made Not Born, Lodging Hospitality, Vol. 56, No. 4 (March 15, 2000), pp. 28-32.

    Jerald Greenberg, Organizational Justice: Yesterday, Today, and Tomorrow, /ournal of Management, Vol. 16, No. 2 (June 1990), pp. 399-432.

    Allan E. Lind and Tom R. Tyler, The Social Psychology of Procedural Justice (New York, NY: Plenum Press, 1988).

    91

  • HUMAN RESOURCES EMPLOYEE PRIDE

    Sample items from the questionnaire

    Construct Sample auestion

    Role Clarity

    Evaluation of Rewards System

    I understand what my role is in the delivery of excellent customer service.

    High performers are rewarded.

    Work I have the resources that I need to deliver excellent Environment customer service.

    Evaluation of Management Managers take action quickly to correct employee problems

    Organization Performance This hotel provides better guest services than ifs rivals.

    Job Satisfaction

    Overall my job experience has been excellent here at .

    Pride in Organization I am proud to tell people where I work.

    Positive Employee I make every possible effort to resolve Behavior customers problems.

    ster their self esteem. In contrast, people also try to maintain their self esteem by disassociating them- selves from unsuccessful groups. Therefore, when a company is performing well, its employees are more likely to be satisfied and to perform we11.20

    Organizational performance is normally public knowledge, and as such it becomes a measure of the quality of the company and its employees. The fact that it is known to others outside the company increases its importance as a measure of self-worth. Therefore, we posit that successful companies foster more pride in their employees than do average companies.

    Note: These examples do not represent the exact items used in the study. The scales are proprietary and, therefore, it was necessary to alter their wording slightly.

    *R.B. Cialdini, R.J. Border, A. Thorne, M.R. Walker, S. Freeman, and L.R. Sloan, Basking in the Reflected Glory: Three (Football) Field Studies, /ournal of Personality and Social Psychology, Vol. 34, No. 3 (September 1976), pp. 366-375.

    21 Dennis W. Organ, Organizational Citizenship Behavior: The Good Soldier Syndrome (Lexington, MA: Lexington Books, 1998).

    Positive Employee Behavior Positive employee behavior refers to the construc- tive actions of employees on behalf of the firm, other employees, and customers. These activities are part of the employees role in the organiza- tion and are intended to promote the well-being of the organization or its customers. To be ef- fective, hotels must encourage employees to en- gage in behavior that allow them to interact bet- ter with each other and with guests. Many actions are prescribed by the organization. However, some desired behavior might include actions that go beyond those outlined in any employee manual. Specifically, we suggest that positive employee behavior is a combination of a mini- mum of three actions and beliefs: (1) a commit- ment to customer service, (2) cooperation with fellow employees, and (3) a commitment to the organization.

    Questionnaire Development Th e questionnaire that we used in this study was developed for internal purposes at a promi- nent hotel-casino corporation. The question- naire was developed by using relevant litera- ture, expert opinions, and employee responses. Sample questions from the survey are presented in Exhibit 2. The questionnaire was tested and

    92 Cornell Hotel and Restaurant Administration Quarterly APRIL 2002

  • EMPLOYEE PRIDE HUMAN RESOURCES

    refined over a nine-year period by examining its psychometric properties. The items on the current questionnaire performed well (i.e., they exhibit acceptable psychometric properties- see Exhibit 3). 22 As p art of the corporations annual internal assessment process, the ques- tionnaire was administered to all employees. The current study represents the responses from one of its properties.

    Results The census provided us with 860 question- naires. The majority (71 percent) of the respon- dents had been with the organization for be- tween 1 and 5 years, 26 percent had been with the corporation less than one year, and the re- maining 3 percent had been with the corpora- tion for over five years. Most respondents (83 percent) were hourly employees, 9 percent were supervisors, 4 percent were considered salaried non-management employees, and another 4 percent were managers. Forty-seven percent worked the day shift, 34 percent worked the swing shift, and 19 percent worked the graveyard shift.

    Statistical tests. The model in Exhibit 1 was tested using PLSPath-a structural-equation- modeling program developed by Norbert Sellin. Using procedures suggested by other re- searchers, we were able to produce a model that fit the data well (see Exhibit 4).24 The main cri-

    22 All internal-consistency measures are above the .70 level. Therefore, the scales demonstrate internal reliability. The average variance extracted for each reflectively measured construct is high (all values are above .53). This high aver- age variance extracted coupled with the strength and sig- nificance of the parameter estimates for the reflective scales provide evidence of convergent validity. The results also show that the variance shared between each construct and its measures is higher than the variance shared between the construct and other constructs in the model, which pro- vides evidence of discriminant validity-see Exhibits 3 and 4. See: C. Fornell and David F. Larcker, Evaluating Struc- tural Equation Models with Unobservable Variables and Measurement Error, /ournalofMarketing Research, Vol. 18, No. 1 (February 1981), pp. 39-50.

    23N. Sellin, PLSPath Version 3.01 Application Manual (Hamburg, Germany: Norbert Sellin, 1989).

    24See: C. Fornell, G.J. Tellis, and G.M. Zinkhan, Validity Assessment: A Structural Equation Approach Using Partial Least Squares, in AMA Educators Proceedings, Vol. 48, ed. B.J. Walker, etal. (Chicago: American Marketing Association, 1982), pp. 405-409; and Fornell and Larcker, pp. 39-50.

    Measurement Results

    Scale item, description

    Role Clarity RCI RC2 RC3

    Loading

    .77

    .81

    .84

    Evaluation of Reward System ERSI .88 ERSZ .91 ERS3 .84

    Work Environment WE1 WE2 WE3

    .80

    .83

    .79

    Evaluation of Management EM1 .83 EM2 .83 EM3 .89 EM4 .84 EM5 .83

    Organization Performance PERFI .78 PERF2 .7l PERFS .88

    Job Satisfaction Sl s2 s3

    .73

    .85

    .83

    Organizational Pride Pl P2 P3

    .87

    .92

    .89

    Positive Employee Behavior EBI .50 EB2 .77 EB3 .86

    Note:All loadings are significant at p < .05.

    Average variance Internal extracted reliability

    .65 .85

    .77

    .65 .85

    .71

    .63 .83

    .65 .85

    .80 .92

    .53 .76

    .91

    .93

    APRIL 2002 Cornell Hotel and Restaurant Administration Quarterly 93

  • HUMAN RESOURCES I EMPLOYEE PRIDE

    Statistical relationships of the model (from Exhibit 1)

    Environment

    Notes: All statistics shown are significant at p < .Ol; ns = not significant.

    terion for assessing model adequacy for PLSPath Establishing Imi tive Beh:~\d~)j~ analysis is explained variance (Rz).5 As can be 1 t is important that managers understand the ef- seen in Exhibit 4, the model explains a great deal feet that job s&faction and pride have on de-

    ofvariance in job satisfaction (R = .54), pride in sired employee behavior. The results support our the organization (R = .62), and positive em- suggestion above that both job satisfaction and ployee behavior (R2 = .64). Therefore, the model pride in the organization are important anteced- is a good fit to the data.26 ents of positive employee behavior. The regres-

    25 D W. Barclay, Interdepartmental Conflict in Organizational Buying: The Impact of the Organizational Context, Journal of Marketing Research, Vol. 28, No. 2 (May 1991), pp. 145-159.

    x PLS analysis is a SEM technique that is an ahernative to covariance structure analysis, which uses programs such as LISREL and EQS. The use of PLS analysis has certain advantages: (1) it does not suffer from indeterminacy prob- lems like other causal modeling techniques (e.g., EQS and LISRBL), (2) it is a nonparametric technique and, there- fore, does not assume normality of the data, (3) it allows researchers to work with more complex models than other causal modeling techniques, and (4) it allows researchers to easily use both formative and reflective measures in the same analysis. The objective of PLS analysis is the explanation of variance through an iterative ordinary least squares (OLS) procedure and, therefore, fit indices such as the ones generated by covariance structure analysis are not gener- ated. Because of its algorithmic nature it is predictive in a regression sense. For a more detailed discussion of the PLS method see W.W. Chin, The Partial Least Squares Approach to Structural Equation Modeling, in Modern Methodr fir Business Rcseurch, ed. Marcoulides (Mahwah, NJ: Lawrence Erlbaum Associates, 1998).

    94 Cornell Hotel and Restaurant Administration Quarterly APRIL 2002

  • EMPLOYEE PRIDE I

    HUMAN RESOURCES

    sion weight (p) for the path from job satisfac- tion to positive employee behavior is .46. The path from pride to positive employee behavior is also strong, as demonstrated by the regression co- efficient (p) of .4O. Those factors explain a large portion (64 percent) of the variance in positive employee behavior. These results indicate that the two factors have similar effects on positive em- ployee behavior (i.e., the regression coefficients have comparable magnitudes).

    Encouraging Job Satisfaction As discussed earlier, three factors seem especially critical to building job satisfaction among em- ployees-role clarity, the work environment, and employees evaluations of managers performance. As expected, role clarity is related positively to job satisfaction, as evidenced by a p of .25. Em- ployees who believed that they had a clear un- derstanding of what it took to do their job were more likely to be satisfied with their jobs. There- fore, employers should try to ensure that employ- ees have a clear understanding of their job re- sponsibilities and the actions that are expected of them.

    Interestingly, the employees evaluation of the reward system did not influence their job satis- faction. (The regression coefficient was not sig- nificant.) However, we believe that this is not an indication that employees do not care about the reward systems in their organizations. Instead, it may be an indication that other factors are more important determinants of employee behavior (e.g., work environment, role clarity, and percep- tions regarding managers).28

    The results do support the proposition that the work environment affects job satisfaction, as evidenced by a p of .20. Employees tended to be satisfied with their jobs when they believed that they had a good work environment. Therefore, hotels should not focus solely on the guests en- vironment, but should also examine the environ- ment that their employees experience. Although

    Note that one can directly compare regression weights in this model because they are standardized to the same scale.

    *a Discussions with human-resources experts in the hotel industry, including one of the authors of this study, suggest that this result does not contradict their experiences. For example, reward systems are not usually the most impor- tant points of contention in labor negotiations.

    the two environments overlap, employees en- counter many things that guests do not (e.g., there are many parts of a hotel that a guest never sees).

    The data support the proposition that employ- ees evaluations of managers is related positively to job satisfaction, as evidenced by a p of .38.

    Three factors seem es ec~ally critical to build- ing job satisfaction among em~i~yees-robe clarity, the work environment, and e loy- ees evaluations of mana er~orma~ce.

    Employees who evaluated managers positively tended to be satisfied with their jobs. Therefore, managers should monitor the perceptions that employees have of the management team-and efforts should be made to alter negative percep- tions and promote positive ones.

    An examination of the regression weights re- lated to job satisfaction reveals that workers evaluation of managers is the most important antecedent ofjob satisfaction (i.e., it has the larg- est regression weight, p = .38). Role clarity is the next most important construct (p = .25), followed by work environment (p = .2O). Those three fac- tors explained 54 percent of the variance in job satisfaction.

    Building Pride in the Organization The effects of three factors on pride in the orga- nization were examined-job satisfaction, evalu- ation of managers, and organizational perfor- mance. The results support the proposition that job satisfaction effects pride positively, as evi- denced by a p of .4 1. Employees who were the most satisfied with their jobs exhibited the most pride in their organizations. Therefore, we sug- gest that job satisfaction influences employee behavior in two ways. First, it has a direct effect, which is demonstrated by the significant relation- ship between job satisfaction and positive em- ployee behavior. Second, it affects positive em- ployee behavior indirectly by encouraging pride in the organization, which, in turn, encourages positive employee behavior.

    APRIL 2002 Cornell Hotel and Restaurant Administration Quarterly 95

  • I EMPLOYEE PRIDE

    The results support the proposition that em- ployees evaluation of managers has a positive effect on pride in the organization, as evidenced by a p of .32. Employees who had a positive im- pression of management tended to have more pride in the organization. The results suggest that employees positive perceptions of managers can affect positive employee behavior in three ways. It is related positively to job satisfaction, which, in turn, affects positive employee behavior both directly and indirectly through pride in the or- ganization. It also has a direct effect on pride in the organization, which, in turn, affects positive employee behavior. Therefore, as our model sug- gests, the perception of management may have the greatest ability of all of the factors examined in this study to influence employee behavior.

    The results support the proposition that or- ganizational performance can influence pride in the organization, as evidenced by a p of. 19. Em- ployees who believed that the organization was performing well tended to exhibit great pride in the organization.

    An examination of the regression weights re- lated to pride in the organization reveals that job satisfaction is the most important antecedent of

    Dennis B. Arnett, Ph.D. (above, left), is an assistant professor of marketing at Texas Tech University (darnett@ba.ttu.edu), where Debra A. Laverie, Ph.D. (middle), IS an associate professor of marketing (dlaverie@ba.ttu.edu). Charlie McLane, J.D. (right))) IS executive dlrector of CUE, Inc. (charles.mclane@mindspring.comj.

    0 2002, Cornell University; refereed article: submitted on January 11, 2002; accented with minor revisions on March 11, 2002.

    pride in the organization (i.e., it has the largest regression weight - p = .4 1). Evaluation of man- agement is the next most important construct (p = .32), followed by organization performance (p = .19). Th ese f actors explained 62 percent of the variance in pride in the organization.

    lmplicntions: Why job S;dktic~ri

    md Iricic Are I nipoxm t

    Our study suggests that both job satisfaction and pride in the organization are important factors that influence employee behavior. In fact, for our sample they have approximately the same direct effect on employee behavior. Therefore, organi- zations that wish to promote positive behavior in their employees should focus on both of these factors. Although many organizations have spe- cific programs and procedures designed to im- prove employee satisfaction, fewer organizations make a concerted effort to increase employee pride. Our results suggest that more organiza- tions should focus on improving employee pride. Organizations in other industries have followed this strategy with success.29 For example, South- west Airlines executives have told us that the firm makes an extraordinary effort to increase both employee satisfaction and pride, and its efforts have paid off.

    When interpreting our results, one should note that this study examines allemployees of a single property. It may be the case that there are factors that exist that are specific to different types ofjobs (e.g., managers, housekeepers, chefs) that affect job satisfaction and pride. Therefore, the factors included in this study should be viewed as potential starting points. Managers must try to understand what additional factors may affect their specific employees levels of satisfaction and pride and then use this information to improve their employees levels of satisfaction and pride. In addition, one should note that the respondents in this study, as in many studies of this kind, were asked questions about their own actions and, therefore, there is always the chance that their answers may reflect a bias toward socially desir- able answers, %

    (I Cathy A. Em and Judy Siguaw, Best Practices in Hu- man Resources, Cornets Hot& and Restaurant Administra- tion Quarterly, Vol. 4 1, No. 1 (February 2000), pp. 48-6 1.

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