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GUIDESTAR RESEARCH WHITE PAPER

  • 1.

    Identify root causes of dissatisfaction among employees

  • 2.

    Conduct benchmark studies of best practices in selected other companies

  • 3.

    Develop employee satisfaction measurement systems that can be used corporate wide and

worldwide

  • 4.

    Monitor employee satisfaction on a regular basis

  • 5.

    View employees as the primary source of competitive advantage

  • 6.

    Show concern for total employee well-being

  • 7.

    Develop meaningful employee involvement and effective communication channels

  • 8.

    Introduce managerial accountability for people management

Given the impact of customer satisfaction on organizational profit, it is critical for organizations to understand what dimensions of service quality need to be monitored and used to develop accountability, customer satisfaction awareness, and customer oriented work behavior. In this regard, the literature suggests the following dimensions:

  • Accessibility

  • Communication

  • Competence

  • Courtesy

  • Credibility

  • Reliability

  • Responsiveness

  • Security

  • Tangibles

  • Understanding of the customer

Regardless of the levers an organization chooses to operate, a basic step to achieving customer satisfaction is to understand customer needs through research. Only when customer needs are well understood, can adequate service standards be set and the appropriate service culture developed and maintained.

Finally, careful consideration should be given to how to create a link between employee satisfaction and customer satisfaction. The models presented in this report refer to some important drivers of this relationship. Research on employee satisfaction, furthermore, points to compensation as an essential organizational determinant of job satisfaction. Because compensation is also a prominent means to generate accountability and thus influence work behavior, by using customer satisfaction (CS) based compensation organizations may achieve two

key goals:

1. They may increase job satisfaction (e.g., by using CS incentives that are perceived as

having a positive valence). 2. They may strengthen customer oriented work behavior (e.g

., by using CS incentives that

are linked to specific behaviors).

In sum, CS based compensation should focus on performance dimensions that employees can control, influence, and understand. Without such focus, not only will it be unlikely to affect work behavior, but it will be likely to generate dissatisfaction.

GUIDESTAR RESEARCH - WHITE PAPER - FEBRUARY 2005

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