Relationship Marketing

1. CHAPTER 6
MANAGING THE INTERNAL/
EMPLOYEE MARKET

2. 6.1- Employees’ Influence
On Customer And
Organization

3. The Critical Importance of Service
Employees
They are the service (boundary spanner).
They are the organization in the customer’s eyes.
They are the brand (image carrier).
They are marketers.

4.  evaluative statements (either
favorable or unfavorable) concerning
objects, people, or events.
 reflect how one feels about
something.
ATTITUDES
example: “I like my job.”

5. Cognitive = evaluation
My superior gave a
promotion to a coworker
who deserved it less than
me. My supervisor is unfair.
Affective = feeling
I dislike my supervisor!
Behavioral = action
I’m looking for other work;
I’ve complained about my
supervisor to anyone who
would listen.
Negative
attitude
toward
supervisor
ATTITUDES

6. Changing Attitudes
•Employees’ attitudes can be changed and sometimes it is in the
best interests of managements to try to do so.
•For example, if employees believe that their employer does not
look after their welfare, the management should try to change
their attitude and help develop a more positive attitude in them.
•However, the process of changing the attitude is not always
easy.

7. Important Attitudes Related to
Organizations
Job Involvement
- The degree to which a person identifies with a job, actively participates in it, and
considers performance important to self-worth.
Job Satisfaction
- Is a set of favorable or unfavorable feelings and emotions with which employees view
their work.
 Organizational Commitment
- The degree to which an employee identifies with a particular organization and its
goals and wishes to maintain membership in the organization

8. JOB SATISFACTION
Satisfaction with Pay
Satisfaction with Promotion
Satisfaction with Work
Satisfaction with Supervision
Satisfaction with Co-workers
Organizational
Commitment
Involvement and
Engagement

9. Causes of Job Satisfaction
 Most people prefer work that is
challenging and stimulating.
 Jobs with good compensation have
average job satisfaction levels.
Money may be a motivator, but may
not stimulate job satisfaction.
 There is a link between a person’s
personality and job satisfaction.
Negative people are usually not
satisfied with their jobs.

10. The Effect of Job Satisfaction
on Employee Performance
Satisfaction and Productivity
Satisfied workers are more productive AND
more productive workers are more satisfied!
Worker productivity is higher in organizations
with more satisfied workers.
Satisfaction and Absenteeism
Satisfied employees have fewer avoidable
absences.

11. Satisfaction and Turnover
Satisfied employees are less likely to quit.
Organizations take actions to retain high
performers and to weed out lower performers.
Satisfaction and Customer
Satisfaction
Satisfied workers provide better customer
service.

12. Job satisfaction & organizational
citizenship behavior (OCB)
Satisfied employees who feel fairly treated
by and are trusting of the organization are
more willing to engage in behaviors that go
beyond the normal expectations of their job.
Satisfied employees increase customer
satisfaction because:
 They are more friendly, upbeat, and
responsive.
 They are less likely to turnover, which helps
build long-term customer relationships.

13. 6.2- Employees’ Retention and
Loyalty: Motivating, Caring,
Developing and Empowering
Employees

14. Employee Retention
A process in which the employees
are encouraged to remain with
the organization for the maximum period
of time or until completion of the project.
Employee retention is beneficial for the
organization as well as the employee.

15. IMPORTANCE OF
EMPLOYEE RETENTION
 The cost of turnover.
 Loss of company knowledge.
 Interruption of operations.
 Turnover leads to more turnovers.
 Goodwill of Company.
 Regaining efficiency.

16.  Job is not what the employee
expected
 No growth opportunities
 Lack of appreciation
 Lack of trust and support
REASONS WHY EMPLOYEES LEAVE

17.  Stress from overwork
 Compensation
 New job offers
 No personal life
 Physical strains

18. EMPLOYEE RETENTION STRATEGIES
 Hire the right person in right place
 Empower the employee
 Make them realize that they are valuable
for Organization

19.  Have faith in them, trust & respect them
 Provide information & knowledge
 Give feedback on performance.
 Recognize & appreciate their achievements.
 Keep their morale high
 Create healthy environment

20. Motivation
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The forces either internal or external to a person that
arouse enthusiasm and persistence to pursue a certain
course of action

21. Types of Rewards
Intrinsic Rewards
◦Internal satisfactions a person receives in the process of performing a
particular action – empower employee or letting employee make choices on
how they want to complete their work
Extrinsic Rewards
◦Rewards given by another person, typically a supervisor, such as pay
increases and promotions
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22. A primary goal of employee empowerment is to give workers a
greater voice in decisions about work-related matters.
Their decision-making authority can range from offering suggestions
to exercising veto power over management decisions.
Possible areas include: how jobs are to be performed, working
conditions, company policies, work hours, peer review, and how
supervisors are evaluated
Empowerment

23. Organizational Improvement through
Employee Empowerment
First, empowerment can strengthen motivation by providing employees with
the opportunity to attain intrinsic rewards from their work, such as a greater
sense of accomplishment and a feeling of importance.
Intrinsic rewards such as job satisfaction and a sense of purposeful work
can be more powerful than extrinsic rewards such as higher wages or
bonuses.
The second means by which employee empowerment can increase
productivity is through better decisions. Especially when decisions require
task-specific knowledge, those on the front line can often better identify
problems.

24. Employees Retention involves five
major things:
 Compensation
 Growth
 Environment
 Relationship
 Support