The Impact of Employee Satisfaction on Top quality and Profitability in High-Contact Service Sectors Research Daily news

The Impact of Employee Fulfillment on Quality and Profitability in High-Contact Service Sectors

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The Impact of Employee Fulfillment on Top quality and Profitability in High-contact Service Sectors

Rachel Watts. Y. Yee Department of Logistics, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong E-mail: Rachel. [email protected] edu. hk

Andy C. L. Yeung* Department of Logistics, The Hong Kong Polytechnic University, Strung Hom, Kowloon, Hong Kong Email-based: [email protected] polyu. edu. hastkrafter Tel.: (852) 2766 4063 Fax: (852) 2330 2704 *Corresponding Author

T. C. Edwin Cheng Department of Logistics, The Hong Kong Polytechnic University, Installed Hom, Kowloon, Hong Kong E-mail: [email protected] polyu. edu. hastkrafter

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The effect of Staff Satisfaction about Quality and Profitability in High-contact Support Industries

Abstract: The extant operations managing literature has extensively researched the organizations among top quality, customer satisfaction, and firm success. However , the influence of employee features on these types of performance sizes has seldom been evaluated. In this analyze we research the impact of employee satisfaction on detailed performance in highcontact support industries. Depending on an scientific study of 206 support shops in Hong Kong, all of us examined the hypothesized relationships among staff satisfaction, support quality, customer satisfaction, and company profitability. Using structural equations modeling, we found that employee pleasure is substantially related to assistance quality also to customer satisfaction, even though the latter consequently influences firm profitability. We also found that firm earnings has a modest non-recursive impact on employee satisfaction, leading to a " satisfaction-quality-profit cycle”. Our empirical research suggests that staff

satisfaction is a crucial consideration pertaining to operations managers to boost service quality and customer satisfaction. You can expect empirical facts that staff satisfaction takes on a significant part in improving the detailed performance of organizations in the high-contact services sector. Keywords: Employee fulfillment, service quality, customer satisfaction, firm profitability, empirical research

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1 . Intro In response towards the pressure of globalization, progressively competitive market segments, and risky market aspect, many agencies are looking for ways to add value to their services and improve their assistance quality. Agencies are usually attracted to making functional efficiency important. Operations management (OM) offers emphasized the optimization of operational procedures as a means to profitably deliver value to customers also to meet or even exceed client expectations. Significant research has been devoted to this sort of topics while designing, managing, and optimizing service delivery systems, with a view to increasing service top quality and functional efficiency (e. g., Unausgefullt et ing. 1999, Soteriou and Zenios 1999, Hillside 2007, Saccania et approach. 2007). Many firms have got enthusiastically used the operation-centric

approach and demonstrated that it is an effective means for improving organizational efficiency. Even so, the impact of human resources about operational systems has frequently been forgotten (Boudreau ain al. 2003). The importance of employee behaviour, such as task satisfaction, employee loyalty, and organizational dedication, and their impacts on functional performance have largely been neglected inside the extant OMKRING literature (Boudreau 2004). Alternatively, issues linked to human resources had been widely researched in the exercises of company behavior (OB) and psychology for many many years. The

pervasive interest in human resources among HINSICHTLICH researchers and practitioners is definitely grounded within the premise that employee characteristics are crucial to organizational success (Vroom 1964, Schwab and Cummings 1970), which in the end influences a firm's earnings. A vast volume of research has been done to examine staff attributes and to what level employee...