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(a research proposal ) Employee satisfaction and firm performance - Essay Example

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“When companies put employees and customers first, their employees are satisfied, their customers are loyal, their profits increase, and their continued success is sustained.” (p. 16) This remark was published in “Putting the Service-Profit Chain to Work” article written…
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(a research proposal ) Employee satisfaction and firm performance
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Download file to see previous pages e are many studies, articles and research devoted to customer satisfaction, but the writings, theories and strategies related to employee satisfaction with job are few. The ideas that employee satisfaction is related to productivity in the same degree as customer satisfaction, appeared at the beginning of 90s, and it was confirmed in the practice and experience of various companies. The number of studies devoted to this problem constantly grows.
The authors of the article, mentioned above, provided a scheme, defined as “the service profit chain”. (p. 15) This scheme included all necessary element of achieving success and prosperity for the company. These authors investigated experience of various companies from different branches of industry, and made important conclusions. They insisted that the correlation of employee and customer satisfaction with the profit directly influence company’s performance. The results of the study provided a basis for new patterns of managing success in business. The methods they observed, concentrate on the effect of employee job satisfaction and performance on “the value of products and services delivered so that managers can build customer satisfaction, loyalty and assess the corresponding impact on profitability and growth.” (p. 17) The authors add that “...the lifetime value of a loyal customer can be astronomical, especially when referrals are added to the economics of customer retention and repeat purchases of related products.” (p.17)
The authors note: "Putting employees and customers in the spotlight is common to Quality programs. As anyone working in support of Quality knows, Quality doesn’t just happen. Those running a company must be fully committed to it. In the case of the companies under discussion, their CEOs and top managers exhibited a special kind of leadership. “CEOs of exemplary service companies emphasize the importance of each employee and customer. For these CEOs, the focus on customers and ...Download file to see next pagesRead More
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