Service-oriented human resource practices and customer outcomes: the service-profit chain perspective

Abstract

PurposeBased on the service-profit chain perspective, this study investigates whether service-oriented human resource practices can enhance customer outcomes through motivational mechanisms (i.e. intrinsic/extrinsic satisfaction) as well as emotional mechanisms (i.e. emotional labor strategies).Design/methodology/approachThis study collected paired data from 220 service workers and their customers at different time points from 80 service firms. Multilevel path-analysis was conducted to test the proposed hypotheses.FindingsOur results indicate that firm-level extensive training is positively related to service workers' intrinsic job satisfaction, which in turn increases deep acting. In addition, firm-level incentive compensation is positively associated with service workers' extrinsic job satisfaction, which in turn reduces surface acting. Finally, service employee's deep acting enhances customer loyalty and willingness to recommend via customer satisfaction.Practical implicationsThe service organization should (1) stress the importance of incentive compensation to decrease surface acting via enhancing extrinsic job satisfaction and (2) provide extensive service training to improve service employees' intrinsic satisfaction and deep acting, leading to favorable customer outcomes.Originality/valueThe present study identifies the critical roles of motivational and emotional mechanisms in transferring service-oriented human resource practices to customer outcomes and employing rigorous research design to enhance the internal/external validity of our findings.

How do physical and social servicescapes shape the effects of positive affective displays on customer purchase outcomes?

“…Based on research findings, the present study proposes several suggestions for service organizations. First, since service employees' positive affective displays increase customer purchase amounts, service organizations can enhance employees' positive affective displays through service-oriented human resource practices (Chen and Chi, 2022). For example, organizations can implement rigorous selection procedures or customer service training to select and train frontline service employees in the skills and abilities necessary to display positive emotions.…”

“…For example, organizations can implement rigorous selection procedures or customer service training to select and train frontline service employees in the skills and abilities necessary to display positive emotions. In addition, store managers must recognize the importance of providing excellent services to customers and design service-oriented incentives that create a service climate within stores, motivating service employees to display more positive emotions (Chen and Chi, 2022).…”

Interrogating the Interceding Effects of Service and Justice Climates on the Juncture Between Employee Engagement and Organizational Performance in the Service Sectors

“…Organizations with a strong Service Climate prioritize the delivery of high-quality service experiences and provide support and resources to frontline employees to meet customer needs effectively (Bowen & Schneider, 2013). Research suggests that a positive Service Climate enhances employee engagement by instilling a sense of purpose and pride in delivering exceptional service, thereby influencing performance outcomes such as customer satisfaction, loyalty, and retention (Schneider et al, 1998;Chen & Chi, 2021).Comparably, the Justice Climate includes aspects like distributive justice, procedural justice, and interpersonal justice and is concerned with how workers feel about justice and equality at work . Employees of organisations with a positive justice climate feel that choices about resource distribution, incentives, and disciplinary procedures are just and open (Ambrose & Schminke, 2003).…”

Preservation of labour potential in the Ukrainian healthcare sector: on the way to the third SDG fulfilment in pandemic conditions

“…The introduction of customer-oriented practices should be based on investment and improvement of management methods (Chen, 2021). However, with a clear understanding of the subjects of managerial influence (Ministry of Health, regional state administration) of the strategic key indicators to be achieved, a slight improvement of the service component can be achieved in a short time by improving communication channels, improving mechanisms for responding to complaints.…”