This study examined the mediating role of service climate in the prediction of employee performance and customer loyalty. Contact employees (N=342) from 114 service units (58 hotel front desks and 56 restaurants) provided information about organizational resources, engagement, and service climate. Furthermore, customers (N=1,140) from these units provided information on employee performance and customer loyalty. Structural equation modeling analyses were consistent with a full mediation model in which organizational resources and work engagement predict service climate, which in turn predicts employee performance and then customer loyalty. Further analyses revealed a potential reciprocal effect between service climate and customer loyalty. Implications of the study are discussed, together with limitations and suggestions for future research.

One of the “truisms” of personnel selection is that overqualified applicants are likely to be a poor fit and thus experience low job satisfaction and performance and higher turnover. Recently, the issue of overqualification has come to the forefront because of the economic downturn, especially in some European Union countries where unemployment rates are extremely high. However, empirical research on overqualification in the industrial–organizational/organizational behavior literature is limited. In this article, we argue that although there may be drawbacks to overqualification for both organizations and employees, overqualification may also provide a number of positive outcomes for workers and employers alike. We review the limited research on overqualification, noting the positive and negative consequences of overqualification and the conditions under which overqualified employees may be a boon to organizations. We conclude by recommending some possible research streams to better understand the overqualification phenomenon and by making recommendations for organizational practices.

The authors tested 3 hypotheses regarding the antecedents and moderator influences of climate strength (CS; the degree of within-unit agreement of climate perceptions). The sample consisted of 197 work units. Social interaction among unit members showed positive, statistically significant correlations with CS in goals orientation and innovation climate. Work-unit leaders' informing behavior was positively correlated with CS in the 3 climate facets measured (i.e., support, goals orientation, and innovation). CS in innovation moderated the impact of work units' innovation climate on average satisfaction and commitment. CS in goals orientation moderated the influence of work units' goal orientation on average commitment. The moderator influences showed the expected direction: CS fostered the influence of work units' climate on the criterion variables.

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