Human resource management factors and service recovery performance in Malaysian life insurance industry

2014 ◽  
Vol 38 (6) ◽  
pp. 524-552 ◽  
Author(s):  
Niriender Kumar Piaralal ◽  
Norazuwa Mat ◽  
Shishi Kumar Piaralal ◽  
Muhammad Awais Bhatti

Purpose – The purpose of this paper is to investigate the human resource factors (rewards, training teamwork and empowerment) that affect service recovery performance (SRP) of customer service employees in life insurances companies. Life insurances industries in Malaysia are facing stiff competitions due to growing consumerism, changing consumer choices and expectations. SRP is very important aspect in the insurances firms toward retaining the customer and one of the key competitive advantages for sustainability and adding value to the organization in the future. Design/methodology/approach – The data obtained from 350 customer service employees based on convenience sampling were analyzed using regression and hierarchical analysis. Findings – There are two factors, namely, empowerment and training, affecting the SRP. The employment status moderated the relationship between reward and SRP. The limitations of this study have been noted and further research suggestions are also included that are very important for SRP. Originality/value – This study has added knowledge regarding the factors that affect SRP, in general, and precisely in life insurance industries in Malaysian context.

Author(s):  
Shishi Kumar Piaralal ◽  
Muhammad Awais Bhatti ◽  
Niriender Kumar Piaralal ◽  
Ariff Syah Juhari

Purpose Service recovery is very important to the insurance industry; it helps to maintain clients, it is a crucial competitive advantage for business survival and it adds value for the organization’s continued future. The purpose of this paper is to investigate the factors influencing service recovery performance (SRP) of customer service employees in the life insurance industry from three dimensions; organizational (customer service orientation and top management commitment), human resource management (rewards, training, teamwork and empowerment) and personal (affective organizational commitment, role ambiguity, role conflict and emotional exhaustion). This study also investigated job satisfaction and the intent to resign. Design/methodology/approach Data were gathered through self-administered questionnaires from 350 customer service staff employed by life insurance companies in the Northern region of Peninsular Malaysia by using a convenience sampling technique. Data were analyzed using multiple regressions. Findings The findings indicated that customer service orientation, training, empowerment, affective organizational commitment, role stressors and emotional exhaustion influenced staff’s SRP. The findings also showed that SRP influenced job satisfaction and intention to resign. Practical implications The research advances understanding of the influence of organizational, personal and human resource management factors on SRP and result constructs, namely, turnover intentions and job satisfaction. The researchers in Malaysia can use this model for future research in a service sector fields such as banking, retailing and hospitality to replicate and compare this finding. For practitioners especially the managers in insurance services providers can take actions and formulate proper strategies for customer service employees to deliver high level of performance in order to satisfied customer and continue stay in the organizations. Originality/value Very little attention has been given to examine the impact of human resource, personal and organizational factors on SRP and the influence of SRP on result constructs, namely, job satisfaction and intention to resign in the life insurances area. Furthermore applying equity theory especially in the SRP area was not given fully attention.


2020 ◽  
Vol 63 (1) ◽  
pp. 1-21 ◽  
Author(s):  
Leonardus W.W. Mihardjo ◽  
Kittisak Jermsittiparsert ◽  
Umair Ahmed ◽  
Thitinan Chankoson ◽  
Hafezali Iqbal Hussain

Purposecurrent study intends to examine key human resources practices (human capital, training and rewards) that influence employee commitment and service recovery performance (SRP) of Takaful industry agents in Southeast Asian region. The Takaful industry is facing stiff competition with conventional insurance industry in Malaysia and Indonesia as the Southeast Asian region has a large Muslim population. SRP is crucial in insurance industry specifically in the Islamic Insurance (Takaful) industry and plays a vital and key role in sustainable competitive advantage for value addition for firms in future to acquire market.Design/methodology/approachThe data was collected from 350 front line agents of the Takaful industry operating in Malaysia and Indonesia on convenience sampling technique. Data was analyzed by using PLS-SEM to examine the relationship between constructs.FindingsThe results show that human capital, training and reward significantly influence commitment of employee which further influenced SRP to be improved. Mediation effect was also found to be influential and statistically positive and significant by employee commitment between key HR practices (human capital, training, rewards) and SRP.Originality/valuecurrent study contributed to the body of knowledge in explaining relationship of human capital to employee commitment and SRP, further, inconclusive findings between training and rewards was also explained in the Takaful industry of the Southeast Asian region.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bilal Ahmad ◽  
Da Liu ◽  
Naeem Akhtar ◽  
Muhammad Imad-ud-Din Akbar

PurposeThe current research provides a conceptual framework that explains how sales managers' aggression across business-to-business (B2B) sales organizations triggers salespeople's surface acting, deep acting and service recovery performance. It also investigates the moderating role of ethical leadership through sales managers' aggressiveness on service recovery performance.Design/methodology/approachThe authors test the model using multilevel analysis with cross-sectional data of 367 salespeople from different sales organizations.FindingsThe study shows that the aggression of sales managers has an adverse influence on service recovery performance. Additionally, aggressiveness among sales managers is positively connected with surface acting while adversely affecting deep acting. The study’s findings also indicate that ethical sales leadership is positively moderate among sales managers' aggressiveness and service recovery performance.Research limitations/implicationsThe authors collected data from individual salespersons, which is the limitation; however, future studies could collect data using the dyadic approach, such as matching responses from both managers and salespersons. This method could enhance the model's internal validity.Originality/valueSeveral studies have mainly focused on positive supervision styles in the literature on service recovery. At the same time, building a negative supervision model in the B2B service recovery context, which has been persistently ignored, is noteworthy.


2019 ◽  
Vol 28 (2) ◽  
pp. 12-14

Purpose The purpose of this study is to examine the impact of JIS on quitting intentions and service recovery performance (SRP) with JE as a mediating factor. Design/methodology/approach Data was gathered from 313 full time FHEs working in four and five star hotels in Iran. Questionnaires on JIS, JE, and quitting intentions were given in three waves to the FHEs over a two-week period and in addition supervisors provided a rating of SRP. Findings The findings support the mediating effect of JE with JIS related to the outcomes indirectly through JE. The greater the level of JIS the lower the JE of FHEs. The greater the level of JE the lower the quitting intentions and the higher the SRP of FHE’s. JE completely mediates the impact of JIS on quitting intentions and SRP. Practical implications Organizations should put steps in to retain key workers through adherence to the psychological contract, reduce the impact of JIS through providing clear information on career opportunities and progression, invest in high quality training to improve SRP and hire a workforce from the local communities to increase off-the job JE Originality/value This paper has contributed to an area where research is scarce with regard to how JIS can be reduced and the structure that links it to employee outcomes.


2019 ◽  
Vol 37 (5) ◽  
pp. 580-594 ◽  
Author(s):  
Tuan Luu ◽  
Le Viet ◽  
Eryadi Masli ◽  
Diana Rajendran

Purpose The purpose of this paper is to delve into the interactive effects of corporate social responsibility (CSR) and ambidextrous leadership on customer-oriented organizational citizenship behavior (customer-oriented OCB) and service recovery performance among tourism industry workers. Design/methodology/approach The authors collected data from participants working in tour companies based in Ho Chi Minh City, Vietnam. The associations among the constructs in the research model were tested through multilevel structural equation modeling. Findings Data analysis supported the positive links between CSR and customer-oriented OCB and service recovery performance. Customer-oriented job-crafting emerged as a mediator for such relationships. Ambidextrous leadership played a moderating role to attenuate the positive impacts of CSR on customer-oriented job crafting, customer-oriented OCB and service recovery performance. Originality/value The study extends the tourism management literature by linking CSR to customer-oriented OCB and service recovery performance among tourism employees via customer-oriented job crafting as a mediator and ambidextrous leadership as a moderator.


2012 ◽  
Vol 13 (4) ◽  
pp. 614-636 ◽  
Author(s):  
Osman M. Karatepe ◽  
Georgiana Karadas

The purpose of this study is to develop and test a conceptual model that examines job embeddedness as a partial mediator of the impact of management commitment to service quality on service recovery performance and extra-role customer service. Training, empowerment, and rewards are regarded as the three important indicators of management commitment to service quality. Data were obtained from a sample of fulltime frontline hotel employees with a time lag of one week in Romania. The results reveal that training, empowerment, and rewards are positively related to job embeddedness. As hypothesized, empowerment, rewards, and job embeddedness enhance service recovery performance, while training and empowerment increase extra-role customer service. The results further demonstrate that job embeddedness acts as a partial mediator of the effects of empowerment and rewards on service recovery performance. Implications of the results are discussed and future research directions are offered.


2015 ◽  
Vol 29 (2) ◽  
pp. 124-136 ◽  
Author(s):  
Amit Poddar ◽  
Timucin Ozcan ◽  
Ramana Kumar Madupalli

Purpose – The purpose of this paper is to investigate the role of customer service employees’ (CSEs) competence and service recovery outcomes on service evaluations of foreign and domestic CSEs. Design/methodology/approach – Three experiments were conducted to test and validate the proposed hypotheses. The participants were told a cover story that they were either listening to (Study 2) or reading (Studies 1 and 3) a real conversation between a customer service representative of a bank and a customer and the authors wanted their views about the service encounter. While country of origin (COO) and competency were common independent variables across three studies, Study 2 included service recovery with a full refund and Study 3 had both full and partial refund and apology offered or not. Findings – Results from three experiments show that while competent CSEs are evaluated the same, regardless of their COO, the domestic CSE is evaluated more negatively than the foreign CSE when both are incompetent. The authors also find that when competent CSEs deliver no service recovery, the foreign CSE evaluations are significantly lower than the domestic one. Study 3 results show that this effect is mediated by participants’ ethnocentric beliefs. Research limitations/implications – For implications, this study provides a deeper understanding of the role of COO in services contexts. Future researchers can utilize the findings to investigate the important role that expectations play in determining service excellence and how it affects the COO effect. Practical implications – The paper provides managers in both offshoring client and provider firms with an understanding of the effects of offshoring on employee evaluations. It discusses the relevance/irrelevance of COO on the customer evaluations of service employees. Originality/value – The study investigates an under researched phenomenon – offshoring of services. This paper is one of the few looking at the role of different interaction factors, such as competence, recovery on service evaluations.


2017 ◽  
Vol 27 (1) ◽  
pp. 2-22 ◽  
Author(s):  
Aysin Pasamehmetoglu ◽  
Priyanko Guchait ◽  
J.B. Tracey ◽  
Christopher J.L. Cunningham ◽  
Puiwa Lei

Purpose The purpose of this paper is to amend and extend the emerging research that has utilized an employee-focused approach to examining the service recovery process. In doing so, the authors examine the influences of supervisor and coworker support for error management on two measures of employee service performance: service recovery performance and helping behaviors during service failure and recoveries. Specifically, this study examines the linear and non-linear interaction effects of supervisor and coworker support for error management on the outcome variables. Design/methodology/approach To examine the proposed relationships, the authors conducted a field study that utilized survey data from a sample of 243 restaurant employees and their immediate supervisors. Employee ratings of supervisor and coworker support for error management were matched with the data gathered for the two dependent variables (i.e. supervisory ratings of service recovery performance and helping behaviors). Structural equation modeling was used to examine the linear interaction effects on the outcome variables. To examine the non-linear interaction effects on the outcome variables the authors utilized polynomial regression and response surface modeling. Findings The results showed that the interaction effects of supervisor and coworker support for error management was significantly positively related to both service recovery performance and helping behaviors. In addition, an alternative analysis of the shape of the interaction effects using polynomial regression and response surface modeling showed that the moderating effects may be better conceptualized as non-linear. Originality/value These findings offer new insights about the roles and impact of various forms of support in the service recovery process. First, the current study focuses specifically on supervisor and coworker support for error management and the impact on employees’ service recovery performance and helping behaviors. Second, this research investigates the interaction effects of these two forms of support on service recovery performance and helping behaviors. Third, along with linear interaction effects, the current work examines non-linear interaction effects. These relationships examined in this study have not been tested before. Thus, the findings of this research make a unique contribution to research in service management. The findings of this study provide more prescriptive insights about the means to prevent and respond effectively to service errors.


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