Factors affecting service recovery performance and customer service employees

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.

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.


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.


2019 ◽  
Vol 10 (1) ◽  
pp. 2-16
Author(s):  
Yuyan Zhang ◽  
Alexandra Luong

Purpose The current study aims to examine the antecedents and outcomes of emotional labor strategies (i.e. surface acting and deep acting) among service employees in China. The study proposed employees’ perceived closeness with customers and customers’ socioeconomic status will predict deep acting and surface acting, respectively. It further examined the mediating role of emotional labor between perceived customer attributes and employee well-being (i.e. burnout and job satisfaction). Design/methodology/approach One hundred and one employees at a jewelry store in China completed a survey regarding their perceptions of customers, use of emotional labor and well-being (e.g. job satisfaction and burnout). Correlational and regression analyses were conducted to examine the predictors and outcomes of different emotional labor strategies. Findings Perceived closeness with the customer group predicted employees’ use of deep acting, whereas perceived customer socioeconomic status did not predict the use of surface acting. Deep acting was negatively related with burnout, whereas surface acting did not predict burnout. Deep acting mediated the relationship between perceived closeness with customers and burnout. Practical implications To maintain employee well-being, organizations can promote a service climate to enhance employees’ perceived relationship with customers. Originality/value The study specifies the interpersonal context in which employees use different emotional labor strategies; the perceived closeness with customers predicts less burnout via the use of more deep acting. This study also supplements the existing research on emotional labor based on a Chinese sample; deep acting predicts employee well-being.


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):  
Andrea Stefano Patrucco ◽  
Liliana Rivera ◽  
Christopher Mejía-Argueta ◽  
Yossi Sheffi

PurposeIn line with the knowledge-based view of organizations, this paper aims to analyze how supply chain (SC) employees contribute to the creation of competitive advantage through knowledge acquisition and utilization activities. The authors consider SC employees' skills and competencies, their external network of relationships, their job satisfaction and company investments in training and test how they relate to SC-level outcomes (i.e. SC growth).Design/methodology/approachThe authors design a research model including the aforementioned variables, and the authors apply structural equation modeling (SEM) to survey data collected from 246 SC professionals in Latin America. The authors also use multi-group analysis to evaluate how the relationships between these variables change with different levels of company investment in training.FindingsThe results show that a broad professional network of relationships contributes to increasing the skills and competencies of SC professionals, which, in turn, impact job satisfaction and SC performance. This reinforces the value of investing in skilled human talent, who can contribute to knowledge acquisition, utilization, and, ultimately, to SC competitiveness. Companies that invest more in training to develop their SC employees benefit from stronger SC outcomes.Originality/valueThis study contributes to broadening the understanding of the impact of human resource management (HRM) on supply chain management (SCM). One of the added original foci of this research is the emphasis on developing countries where these HRM-to-SCM performance relationships have not been studied before.


2018 ◽  
Vol 28 (6) ◽  
pp. 733-751 ◽  
Author(s):  
Keo Mony Sok ◽  
Phyra Sok ◽  
Lan Snell ◽  
Pingping Qiu

Purpose The purpose of this paper is to examine the role of frontline service employees (FSEs) motivation (enjoyment of work and driven to work) and ability (customer service ability) in the relationship between TFL and employee service performance. Design/methodology/approach This is a survey-based study which involves 534 FSEs and 135 supervisors in a hair salon setting. Hierarchical regression analysis was used to test the proposed hypotheses. Findings Results show that TFL is significantly related to employee service performance; this relationship is enhanced with the presence of driven to work; yet, it is neutralized with the presence of enjoyment of work. Further, the three-way interaction of TFL, enjoyment of work and customer service ability as well as TFL driven to work, and customer service ability are negatively associated with employee service performance. Practical implications The results advance service managers’ understanding of the importance of FSEs motivation and ability if they are to fully reap the benefits from their FSEs. The role of leader is not always effective in all situations. FSEs with high level of enjoyment of work and customer service ability would least rely on the guidance and support from the supervisors. Originality/value This research is one of the first to examine the role of subordinate’s characteristics (motivation – enjoyment of work and driven to work and ability – customer service ability) as the key moderators in the relationship between TFL and employee service performance.


2017 ◽  
Vol 29 (11) ◽  
pp. 2807-2825 ◽  
Author(s):  
Su Jin Han ◽  
Woo Gon Kim ◽  
Sora Kang

Purpose This study aims to investigate the influence of restaurant manager’s emotional intelligence (EI) and manager support on service employees’ attitudes and performance by applying affective event theory. Design/methodology/approach The multi-level research approach incorporates three different levels of analysis: employees’ job satisfaction and service performance; manager’s EI and support; and) restaurant unit level service under pressure. Data were collected from wait staff employed in full-service restaurants in the southeastern region of the USA. This research uses the hierarchical linear model to process the survey data. Findings The findings indicate that manager EI and support have a significant impact on employees’ job satisfaction, and further leads to high levels of service performance. The moderating effect of service under pressure between leader’s EI and employees’ job satisfaction is not statistically significant. Practical implications Results suggest practical management implications to restaurant managers and frontline service employees. This study’s research findings imply management training and development programs should help managers regulate their own and better understand service employees’ emotions. Findings further highlight the important role manager support has upon employee’s job satisfaction and frontline service performance. Originality/value The present study offers a comprehensive perspective to better understand the variation of employees’ job satisfaction that arises from three different sources: between individuals, between teams and between restaurants. The findings also provide new insight into EI scale development.


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