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Published byElfreda Bishop Modified over 8 years ago
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Future Lies In The Hands Of Internal Customers – The Employees
EFCS Future Lies In The Hands Of Internal Customers – The Employees Pranuj Singhal
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Service Profit Chain Model
Internal Service Quality Employee Satisfaction Employee Productivity Employee Retention External Service Value Customer Satisfaction Customer Loyalty Profitability & Revenue Growth Customer loyalty derives Profit & Growth Customer Satisfaction derives Customer Loyalty Value derives Customer Satisfaction Employee Productivity derives Value Employee Loyalty derives Productivity Employee Satisfaction derives Loyalty Internal Quality derives Employee Satisfaction Service Profit Chain Source: The Service Profit Chain Model establishes relationships between Company, Customer and Employee. It emphasizes the importance of each employee and customer in improving the revenue for a firm.
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Internal Intelligence & Employee Behavior
Internal Market Intelligence Generation Identification of Exchanges of Value Aware of Labor Market Conditions Segment Internal Market Target Internal Segment Internal Intelligence Dissemination Communication between Managers and Employees Communication Among Managers Response to Intelligence Job Description Remuneration System Management Concern Training Employee Brand Loyalty Behavior Loyalty to Customers Loyalty to Organization Loyalty to Peers Internal market orientation creates a positive work environment for the employees. This positive energy transforms into loyalty towards the assigned projects and ultimately leads to increase in brand value of the firm.
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Achieving Strategic Fit
Strategy Company Values Employee Concerns Competitive Challenges Internal Fit Work-Flow Design HR Practices Technologies Leadership External Fit High-Performance Work Systems Strategic Fit helps to integrate the external fit (HPWS) with the internal fir. Once in place it helps both the employees as well as the organization grow.
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High Performance Work Systems
When implemented effectively, HPWS benefit both the employees and the organization. Employees have more involvement in the organization, experience growth, and satisfaction, and they become more valuable as contributors. The organization also benefits from high productivity, quality, flexibility, and customer satisfaction. These features together can provide an organization with a sustainable competitive advantage. It’s a win-win situation for both the employees and the organization. Employees are rewarded for their performance while organizations get customer satisfaction and trust. Thus the ‘Brand’ is promoted.
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