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THE RELATIONSHIP BETWEEN EMPLOYEESATISFACTION WITH ORGANIZATIONAL

COMMUNICATION AND CUSTOMER ORIENTATION

Matt Wagenheim1 and A. Scott Rood2Recreation, Leisure Services and Wellness, Ferris State University, 401 South Street,

SRC 103, Big Rapids, MI49307, USA; 2Department of Hospitality and Tourism Management,Grand Valley State University, B-3-261 Mackinac Hall, Allendale, MI 49401, USA

INDIVIDUAL ASSIGNMENT - 2013

GRADE / SCORE

90Yayuk Puspa Kartika

Batch 6

1263620062

Human Resources Management in Hospitality & Tourism

Prof. Syamsir Abduh

CONTENTS

Literature Review

Finding & Discussion

Methodology3

Introduction3

Conclusion3

The purpose of this study was to explore the relationship between satisfaction

with the organizational communication and external customer orientation among

front-line employees in a commercial recreation setting. Data for the current

study were collected through the use of a survey instrument completed by front-

line employees of a large regional family entertainment center in the Midwest

USA. Contrary to the anecdotal evidence, a significant relationship was not

found between the level of organizational communication satisfaction reported

by front-line employees and their external customer orientation.

Introductions

Results of the current study are consistent with research by Wagenheim (2006)

and Homburg et al. (2009) within a commercial recreation setting, but run contrary

to previous studies conducted in non-commercial recreation environments. Results

suggest that front-line employees within a commercial recreation setting may be

fundamentally different in regard to the organizational communication satisfaction

and the customer orientation as compared with frontline employees in other service

settings. Suggestions are given that may help managers better facilitate customer

orientation among front-line employees.

Keywords:

customer orientation, job satisfaction, organizational communication

… Introductions

Providers of leisure and recreation services face increasing challenges within the

current competitive environment including increased competition (from both

commercial recreation and non-commercial recreation service providers) and

decreased discretionary income for consumers.

A variety of research within the service industry has suggested that long-term

relationships with customers are necessary in order to gain a competitive advantage

(Berry, 1983; Gronroos, 1990).

Burke (1999) suggests that keeping existing customers is critical for organizational

survival.

Service profit chain (SPC) models (a path between front-line employees, external

customers, and organizational profitability) indicate financial performance can be

improved through the relationship between employee satisfaction, customer

orientation, customer satisfaction, and customer loyalty.

Homburg et al. (2009)

Literature Review

In a longitudinal study involving

organizational alliances (both competitive

alliances and those within the marketing

channel), Rindfleisch and Moorman (2003)

define customer orientation as, “. . .the set

of behaviours and beliefs that places a

priority on customers’ interests and

continuously creates superior customer

value” (p. 422).

Jones et al. (2003) found that front-line

employees’ customer orientation was

positively associated with external

customers’ propensity to leave. That

is, external customers interacting with

employees holding a higher customer

orientation indicated a lower propensity to

switch suppliers.

The practices of management support and

personnel management were positively related to

internal customer orientation. Some studies have

found a negative relationship between front-line

responses to customer-orientation efforts (Pecci and

Rosenthal, 2000).

This could occur if customer- orientation efforts are

perceived to be contrary by workers to their needs

and expectations (Kantsperger and

Kunz, 2005), resulting in lower employee

satisfaction.

Organizations use their environment to

communicate to visitors (and employees).

Service failure may, “. . .occur due to a

lack of, or inaccurate, communications and

result in both unhappy customers and

frustrated employees”

(Lewis and Clacher 2001, p. 173).

… Literature Review

Communication is both formal and

informal exchanges of information

between parties within the

relationship.

(Sin et al., 2005).

When employee communication satisfaction

is low (i.e., poor organizational

communication), outcomes include: lower

employee commitment, increased

absenteeism, higher employee turnover,

and reduced productivity.

(Hargie et al., 2002).

“In the hospitality industry, it is widely believed that the culture of an organization

encourages and trains employees to want to provide excellent customer service”

Ford and Heaton (2001)

“Thus communication to front-line employees from their superiors is critical.

Communication satisfaction is impacted by communication that provides

information and work tasks, and by communication interactions with co-workers

and superiors”

Anderson and Martin (995)

… Literature Review

The purpose of the current study is to

examine the relationship between front-

line employee’s satisfaction with

organizational communication and their

level of customer orientation.

Satisfaction

with the

organization’s

communication

climateSatisfaction

with

supervisory

communication

Satisfaction

with

communication

concerning

organizational

integrationSatisfaction

with

the

organization’s

media quality

Satisfaction

with corporate

information

Satisfaction

with co-worker

communication

Satisfaction

with personal

feedback

Satisfaction

with

subordinate

communication

Dependent

Variable

Independent

Variable

Methodology

The communication

satisfaction questionnaire (CSQ)

developed by Downs and Hazen (1977)

… Methodology

In order to examine the reliability of the scales used in this study, Cronbach’s a-

coefficients were calculated. Cronbach’s a indicates how well a set of variables

measures a single latent construct.

Cronbach’s a-coefficients range from 0.0 to 1.0, and indicate the strength of relationship

between items within a scale. a-Coefficients near 1.0 means items are measuring similar

dimensions of the construct. Scales used in this study were deemed reliable with an a-

coefficient 0.70 (Jeffreys et al., 1997).

Communication satisfaction was measured using the CSQ developed by Downs and

Hazen (1977).

equal to 0.84

equal to 0.84

equal to 0.82

equal to 82

equal to 0.82

equal to 0.89

Overall communication satisfaction was measured using all 35 communication items with a

reliability coefficient equal to 97. Customer orientation was measured using a shortened

version of the SOCO scale developed by Saxe and Weitz (1982). Customer orientation has

five items with a reliability coefficient equal to 0.84.

Satisfaction with the

organization’s communication

climate has five items with a

reliability coefficient

… Methodology

Satisfaction with supervisory

communication has five items

with a reliability coefficient

Satisfaction with personal feedback

has five items with a reliability coefficient

equal to 0.79

Satisfaction with co-worker communication has five items with a

reliability coefficient

Satisfaction with communication concerning organizational

integration has five items with a reliability coefficient

Satisfaction with corporate information

has five items with a reliability coefficient

Satisfaction with the organization’s media quality

has five items with a reliability coefficient

… Methodology

The population for this study was front-line employees of a regional family entertainment centre (go

carts, mini golf, arcade, etc) in the Midwest USA.

“Front line employee” was defined in this study as hourly paid employees who spend some percentage

of their work time in direct customer contact and are in non-management positions.

The company under study employed 130 frontline employees during the month of data collection. A

total of 97 usable responses were collected equaling a 75% response rate. Trained students visited

the subject facility at ten pre-arranged dates and times that were determined by the centre

management. A total of 14 student interviewers were employed. Interviewers explained to potential

participants the purpose of the research, obtained informed consent, and presented the survey

instrument for the participants to complete.

Employee (participant) participation in this study was encouraged by the centre management but

ultimately participation was voluntary. Each survey instrument was marked with an identification

number to allow the researchers to track which front-line employees’ had completed the survey

ensuring that a single employee did not complete multiple surveys.

… Methodology

Simple linear regression is a general linear model designed to explain the relationship

between a single continuous independent variable and a single continuous dependent

variable.

In this study, the method of least squares was used to fit the regression line (the simple

linear regression equation is also known as the least squares regression equation)

(Dallal, 2000).

The method of least squares minimizes the sum of the squares of the residuals of the

points of the data (difference between the observed values and fitted values in the

equation). The following null hypothesis was tested in this study using the simple linear

regression analysis.

H1: N1 Satisfaction with organizational communication among front-line

employees is not related to external customer orientation in a commercial

recreation setting.

In order to increase external customer

satisfaction and improve internal marketing

efforts (and ultimately impact organizational

profitability) the organization must implement

policies and procedures to improve

communication.

Despite the results of the current study, the

relationship between the organization and

front-line employees is important.

This study did not find a significant

relationship between front-line employee

satisfaction with organizational

communication and their external customer

orientation. Results of this study indicate a

potential gray area in the SPC model.

Managerial

Implications

Findings & Discussion

The results of this study suggest that seasonal,

front-line employees in a commercial

recreation setting may be fundamentally

different from front-line employees in other

settings as it relates to communication

satisfaction and customer orientation.

It is suggested that future research replicates the

current study with a commercial recreation

population not dominated by seasonal

employees.

The commercial recreation facility under

study typically expands their workforce by

nearly one-third during the busy (summer)

season and simultaneously experiences high

turnover.

Limitations

DISCUSSION

Recommendations for

Future Research

Future research using the SOCO scale to measure customer orientation with other

non-selling populations is recommended.

The results of this study suggest that seasonal, front-line employees in a commercial

recreation setting may be fundamentally different from front-line employees in other

settings as it relates to communication satisfaction and customer orientation.

More research comparing front-line employees in various commercial and non

commercial settings is recommended.

Another avenue of exploration suggested is the relationship between the front-line

employee role ambiguity and customer orientation.

… Findings & Discussion

Conclusions

1

Without a formal

structure for monitoring,

management may think

subordinates are

receiving everything they

need for optimal

productivity when they

may not be.

2

Front-line employees

may be performing at a

suboptimal level

and, therefore, not

delivering the level of

service quality to external

customers they may be

capable of.

3

To increase external

customer satisfaction

and improve internal

marketing efforts the

organization must

implement policies and

procedures to improve

communication.

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YAYUK PUSPA KARTIKA– BATCH 6