Motivation of Employees
Assignment 2.
The customer is always right. This motto was popularised by Wanamaker, one of the most successful merchants of the 20th century, who is also considered to be a pioneer in marketing. (McBain, 1944). The majority of marketing theorists claims that organizations that focus on their customer' needs are better positioned to achieve long- term success than companies that do not (Kotler, 2000). Research has shown that customers receive social, psychological and economic benefits from engaging in long-term relations with service firms, and these yield positive returns for the companies (Gwinner et al., 1998). But it is also important to recognise that when buying services customers tend not to be simply buying the elements of service, but something much greater: consumers buy the whole concept (Slack, Chambers, Johnston, 2005). In terms of its elements, employees can be a weak or a strongest link in this service chain. Employees can influence the association a customer makes with a corporate brand, they act like an ambassadors of the organization even if they don't have a direct contact with the customers: and the main aim of them is to build and maintain long-term relationships with loyal consumers (Davies, Chun, 2009).
New marketing concept suggest modifying original 4P's of the service marketing mix by adding a fifth P for "people" (Berry, 2000). Those entrepreneurs, who already realized it, now put a big emphasis on employees' job satisfaction and workers motivation in order to improve service performance and increase the service productivity.
Researchers from Harvard University have developed a concept or the Service- profit chain, which links are as follows: profit is mainly stimulated by customer loyalty; loyalty is a result of customer's satisfaction. Satisfaction is influenced by the value and quality of service, and the value is finally created by positively motivated, satisfied and loyal employees. (Heskett, Jones et al., 1991). As we can
The customer is always right. This motto was popularised by Wanamaker, one of the most successful merchants of the 20th century, who is also considered to be a pioneer in marketing. (McBain, 1944). The majority of marketing theorists claims that organizations that focus on their customer' needs are better positioned to achieve long- term success than companies that do not (Kotler, 2000). Research has shown that customers receive social, psychological and economic benefits from engaging in long-term relations with service firms, and these yield positive returns for the companies (Gwinner et al., 1998). But it is also important to recognise that when buying services customers tend not to be simply buying the elements of service, but something much greater: consumers buy the whole concept (Slack, Chambers, Johnston, 2005). In terms of its elements, employees can be a weak or a strongest link in this service chain. Employees can influence the association a customer makes with a corporate brand, they act like an ambassadors of the organization even if they don't have a direct contact with the customers: and the main aim of them is to build and maintain long-term relationships with loyal consumers (Davies, Chun, 2009).
New marketing concept suggest modifying original 4P's of the service marketing mix by adding a fifth P for "people" (Berry, 2000). Those entrepreneurs, who already realized it, now put a big emphasis on employees' job satisfaction and workers motivation in order to improve service performance and increase the service productivity.
Researchers from Harvard University have developed a concept or the Service- profit chain, which links are as follows: profit is mainly stimulated by customer loyalty; loyalty is a result of customer's satisfaction. Satisfaction is influenced by the value and quality of service, and the value is finally created by positively motivated, satisfied and loyal employees. (Heskett, Jones et al., 1991). As we can