Production and Operations Management · 2003 · 132 citations · 49 references
BusinessHuman Resource ManagementStrategyJob DesignService DesignStrategic Human Resource ManagementCustomer SatisfactionEmployee DevelopmentEmployee TrainingService EncounterService StrategyWork DesignCustomer Satisfaction ImpactsCustomer Service StrategyEmployee Service PerformanceEmployee Skill DevelopmentFinancial Performance ManagementService Encounter Satisfaction
Service encounter management is a critical component of service strategy in high‑contact environments, and effective encounters depend on high‑quality employee development, encompassing work design, training, and employee well‑being. The study examines how employee development shapes service strategy design to manage encounters in high‑contact service settings. Empirical analysis shows that employee‑development‑focused service strategies boost productivity and satisfaction, which in turn are strongly linked to customer satisfaction, though only some connections to financial performance reach significance.
A critical component of service strategy in high‐contact environments is service encounter management. Effective service encounters are a result of the quality of employee development, including systems for work and job design, training and development, and attention to employee well being. Results of empirical analysis indicate that service strategies reflecting the dimensions of employee development drive employee outcomes such as productivity and satisfaction. Employee outcomes are significantly associated with customer satisfaction, but only some linkages to financial performance are significant. This study illustrates the importance of employee development in service strategy design for managing service encounters in high contact service environments.
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