Developing customer orientation among service employees

Developing Customer Orientation Among Service Employees

Scott W. Kelley University of Kentucky

A conceptual framework is proposed that considers the customer orientation of service employees and its relationship with their perceived level of organizational socialization and perceptions of the organizational climate for service, motivational effort and direction, and organizational commitment. Structural equation modeling techniques are applied to data collected from employees in the financial services industry to test the framework. The results of this study indicate higher levels of customer orientation result from favorable perceptions of the organizational climate for service and higher levels of motivational direction and organizational commitment. In addition, organizational socialization was found to have a positive impact on perceptions of climate, levels of motivation, and organizational commitment.

between the organization and its customers that are benefi- cial to both parties (Dunlap, Dotson, and Chambers 1988; Saxe and Weitz 1982).

The purpose of this research is to propose and test a conceptual framework that considers the customer orientation of service personnel. Specifically, the framework considers the impact of organizational socialization and se- lected socialization outcomes on customer orientation. The socialization outcomes included in the framework are employee perceptions of organizational climate, levels of motivation, and organizational commitment. Subsequently, the conceptual framework is developed and tested using structural equation modeling techniques. Following a discussion of the results of this study, managerial and research implications are provided.

Ten years ago, Saxe and Weitz (1982) developed a scale (the SOCO scale) for the purposes of measuring customer orientation. At that time, they called for empirical research considering the customer orientation of a variety of types of salespeople. Since the publication of the SOCO scale, several studies have been conducted which investigate this construct (c.f. Dunlap, Dotson, and Chambers 1988; Kelley 1988; Michaels and Day 1985; Williams and Weiner 1990).

Customer orientation has been defined as the satisfaction of customer needs at the level of the employee-customer interaction (Saxe and Weitz 1982). Customer orientation is important because service employees who exhibit a high degree of customer orientation engage in behaviors that increase the satisfaction of their customers (Dunlap, Dotson, and Chambers 1988). In addition, customer-oriented behaviors lead to the development of long-term relationships

Journal of the Academy of Marketing Science ISSN: 0092-0703 Volume 20, Number 1, pages 27-36. Copyright �9 1992 by Academy of Marketing Science. All rights of reproduction in any form reserved. This article was accepted by the previous editor.

CONCEPTUAL FRAMEWORK

Figure 1 displays the constructs included in the proposed conceptual framework and the hypothesized relationships which are tested. This framework is unique in that it provides a holistic approach which considers a set of previously untested relationships within an overall framework. In particular, the proposed conceptual framework suggests that customer orientation is affected by the organizational climate for service, motivational effort and direction, and organizational commitment of service employees. In the following discussion, previous research that provides support for the relationships included in the framework is reviewed.

Organizational Socialization

The process of organizational socialization leads to individuals gaining an appreciation for the values of an organization, developing the abilities necessary to function within an organization, understanding what the organization ex- pects of them in their organizational role(s), and gaining the necessary knowledge to interact with other individuals in the organization (Louis 1980). The process can be viewed as one in which varying degrees of success (or lack of

JAMS 27 WINTER, 1992

DEVELOPING CUSTOMER ORIENTATION KELLEY AMONG SERVICE EMPLOYEES

FIGURE 1 Proposed Structural Model

SOCIALIZATION

CLIMATE FOR SERVICE

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DIRECTION

112

1332

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/ 5

CUSTOMER ORIENTATION

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.e. MOTIVATIONAL EFFORT

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success) from the perspective of the organization can be assessed, and one in which it is possible for employees to achieve different levels of organizational socialization.

Schein (1968) has suggested that the employee being socialized may accept certain aspects of the information conveyed through organizational socialization more readily than others. The employee who rejects all organizational values and norms is in a state of rebellion, whereas the employee who accepts all organizational values and norms is in a state of conformity. The states of rebellion and conformity are both extreme results of the organizational socialization process. Most employees will be socialized to a level somewhere between these extremes.

The variety of methods or tactics available to an organization for socializing its employees is innumerable (Van Maanen and Schein 1979). However, six tactical dimensions of the socialization process have been identified (Van Maanen 1978; Van Maanen and Schein 1979). The socialization process can be classified as (1) collective or individ-

ual, (2) formal or informal, (3) sequential or random, (4) fixed or variable, (5) serial or disjunctive, and (6) investi- ture or divestiture. Van Maanen and Schein (1979) developed a set of propositions concerning the appropriateness and effectiveness of these dimensions of organizational socialization in an initial effort to develop a theory of organizational socialization.

Learning theory has provided a basis for previous organizational socialization research (Feldman 1976; Dubinsky et al. 1986; Hall 1987; Louis 1980; Van Maanen and Schein 1979; Weiss 1978). Socialization research using the learning theory perspective has focused on the stages individuals pass through during the socialization process (e.g., Buchanan 1974; Dubinsky et al. 1986; Feldman 1976; Wanous 1980) and the content of socialization (e.g., Van Maanen and Schein 1979). In general, the content of socialization pertains to either the development of an appreciation of the culture of an organization or role-related learning (Louis 1980). Specifically, the process of organizational



socialization results in the learning of a perspective that can be used to handle typical and atypical situations in the work- place (Van Maanen and Schein 1979). Through this learning process, different employees will come to understand the expected organizational perspective to varying degrees, hence employees can be viewed as achieving varying levels of organizational socialization.

Organizational Socialization Outcomes

Previous research on the process of organizational socialization suggests that the level of organizational socialization achieved by employees has an impact on their work related perceptions (Dubinsky et al. 1986; Feldman 1976; Wanous 1980) and performance (Dubinsky et al. 1986). Outcomes of organizational socialization can be classified as either affective or behavioral (Feldman 1981). The proposed framework considers the affective outcomes of organizational climate for service, motivation, and organizational commitment. The behavioral outcome considered in this framework is the level of customer orientation of the service employee (Williams and Wiener 1990).

Organizational Climate for Service The set of descriptive characteristics that differentiate an

organization from other organizations and influence the behavior of organization members constitutes the climate of the organization (Johannesson 1973). The climate of an organization is related to, but distinct from, its culture. Organizational culture concerns a shared set of assumptions about the functioning of an organization, whereas climate refers to the perceptions of individuals (Deshpande and Webster 1989).

Several researchers have noted that when considering the climate of an organization only the dimension(s) of organizational climate that is (are) likely to influence, or be associated with, the constructs of interest should be considered (Glick 1985; Schneider and Reichers 1983). This framework includes the organizational climate for service, which can be defined as a set of descriptive characteristics concerning service delivery and service quality that differentiate an organization from others and influence the service- related behaviors of the individuals in the organization.

During the process of organizational socialization, individuals engage in sense-making activities in order to understand organizational norms, policies, and procedures (Louis 1980; Schneider and Reichers 1983). Sense-making activities involve the development of retrospective explana- tions for the failure of cognitive scripts (Abelson 1976; Leigh and Rethans 1984) that were applied to situations encountered during the performance of organizational roles (Louis 1980). The sense-making activities carried out by an individual are based on the interpretations of others, local interpretation schemes, predispositions and purposes, and previous experience (Louis 1980).

The sense-making activities which occur during the organizational socialization of service employees lead to the development of perceptions of the organizational climate for service (Schneider and Reichers 1983). In addition, several stage models of organizational socialization specifically indicate that individual perceptions of organizational cli-

mate result from the organizational socialization process (Feldman 1981; Schein 1978; Wanous 1980).

Implicit in the proposal of HI is the assumption that the organization places importance on service delivery and service-related issues and emphasizes these values during the socialization process. As a result, socialization should lead to more favorable perceptions of the climate for service. Based on discussions with the managers of the service firms sampled in this study, this assumption seems appropriate.

HI: The level of organizational socialization achieved by service employees is positively related to their perceptions of the organizational climate for service.

Motivational Effort and Direction Previous researchers have noted that the arousal of effort

and direction of effort of employees are important facets of motivation (Mitchell 1982; Schneider 1985; Staw 1984; Su- jan 1986; Weitz, Sujan, and Sujan 1985). Two components of motivation are included in the proposed conceptual framework--motivational effort and motivational direction. Motivational effort considers the amount of effort an individual exerts during the performance of a task (Weitz, Su- jan, and Sujan 1986). Motivational direction focuses on "'the appropriateness of the particular activities into which that effort is directed and maintained" (Katerberg and Blau 1983, p. 249).

The relationship between organizational socialization and motivational direction has not been investigated previously. However, the direction of effort exerted by an individual has been viewed previously as the accuracy of role perceptions (Porter and Lawler 1968; Terborg 1977). Several constructs related to the development of more accurate role perceptions have been proposed as outcomes of the process of organizational socialization (Dubinsky et at. 1986; Feldman 1976, 1981; Porter, Lawler, and Hackman 1975; Van Maanen 1975; Wanous 1980). This research suggests that as employees achieve higher levels of organizational socialization, they develop higher levels of motivational direction as well.

Motivational effort has been recognized previously as an outcome of the organizational socialization process (Feld- man 1976, 1981; Wanous 1980). In addition, it has been suggested that as employees develop a better understanding of their organizational tasks and the associated outcomes (i.e., increase their motivational direction), they develop higher levels of motivational effort (Feldman 1981).

H2: The level of organizational socialization achieved by service employees is positively related to their motivational effort and direction.

H3: The motivational direction of service employees is positively related to their motivational effort.

In many cases the activities required of service employees cannot be clearly prescribed to them. The climate of the



organization offers an ad hoc means of prescribing the specific activities which should be carried out by service employees (Schneider 1986). As a result, perceptions of organizational climate for service provide service employees with a clearer understanding of what is required of them in the performance of their duties (i.e., greater motivational direction).

H4: Employee perceptions of the organizational climate for service are positively related to their motivational direction.

Organizational Commitment Organizational commitment is "the relative strength of an

individual's identification with and involvement in a particular organization" (Steers 1977, p. 46). Employees who are highly committed to an organization believe strongly in the goals and values of the organization, are willing to exert considerable effort on behalf of the organization, and have a strong desire to maintain organizational membership (Porter et al. 1974; Steers 1977).

The organizational behavior (c.f. Etzioni 1964; Morrow 1983; Sheldon 1971; Steers 1977; Stevens, Beyer, and Trice 1978; Stumpf and Hartman 1984; Weiner 1982) and organizational socialization literature (c.f. Buchanan 1974; Feld- man 1981; Schein 1978; Wanous 1980) have both suggested that a relationship exists between the organizational socialization and organizational commitment of employees. The process of organizational socialization results in the development of a more thorough understanding of organizational goals and values and identification with those goals and values. As employees accept the goals and values of the organization that are conveyed through socialization, they become more committed through stronger identification and involvement with the organization.

H5: The level of organizational socialization achieved by service employees is positively related to their organizational commitment.

Customer Orientation

Although very little research has investigated customer orientation and its antecedents, some research focusing on the relationship between organizational socialization outcomes and performance has been conducted. Because this framework utilizes customer orientation as an indicator of performance, the socialization-performance literature is considered with regard to customer orientation in developing the following hypotheses.

Organizational Climate for Service When employees use the organizational climate for ser-

vice as a means of channeling the direction of their effort, the climate of an organization will also have an impact on their performance. Several studies have considered the relationship between organizational climate for service and service quality (Schneider 1973; Schneider and Bowen 1985; Schneider, Parkington, and Buxton 1980). The results of these studies generally indicate a strong positive relation-

ship exists between employee perceptions of organizational climate and customer perceptions of service quality. The sixth hypothesis extends previous research by considering the relationship between employees' perceptions of the organizational climate for service and their customer orientation.

H6: Employee perceptions of the organizational climate for service are positively related to their customer orientation.

Motivational Effort and Direction Several researchers have empirically assessed the motiva-

tional components of effort and direction (Katerberg and Blau 1983; Sujan 1986; Sujan and Weitz 1985; Terborg 1976, 1977; Terborg and Miller 1978). Terborg (1976, 1977; Terborg and Miller 1978) conducted a series of studies that provide evidence of the relationship between the components of motivation and performance.

Katerberg and Blau (1983) investigated the motivational effort and direction of real estate salespeople using a survey methodology. The results of this study indicate the effort and direction components of motivation contribute uniquely to the performance of salespeople. Sujan (I986; Sujan and Weitz 1985) also investigated the motivational effort and direction of salespeople. The terms "working harder" and "working smarter" were used to denote motivational effort and motivational direction, respectively. The results of this work indicate that working harder and working smarter both influence the performance of salespeople.

H7: The motivational effort and direction of service employees are positively related to their customer orientation.

Organizational Commitment The relationship between organizational commitment and

customer orientation has not been investigated. However, models of organizational commitment have proposed that organizational commitment is related to the performance of employees (Hunt, Chonko, and Wood 1985; Steers 1977; Weiner 1982). Several researchers have assessed this relationship with results indicating there is a positive relationship between organizational commitment and performance among employees (Mowday, Porter, and Dubin 1974; Van Maanen 1975).

The relationship hypothesized in H8 is based on the assumption that customer-oriented service is valued and expected by the organization. This may not be the case in all organizations. As noted by Etzioni (1964), often customer contact personnel are "organization-oriented" and not "customer-oriented." However, based on discussions with the managers of the service firms sampled in this study, it was expected that the relationship hypothesized in H8 was appropriate.

H8: The organizational commitment of service employees is positively related to their customer orientation.



METHOD

Sample

In order to test the proposed conceptual framework the cooperation of four financial institutions of approximately the same size in four midwestem cities was obtained. Ques- tionnaires were administered during regularly scheduled meetings to a total of 249 customer-contact employees. Re- spondents were assured that their responses would be kept confidential and questionnaires immediately returned to the researcher. The customer-contact employees responding to the questionnaire included branch managers, assistant branch managers, loan officers, customer service repre- sentatives, and tellers. All participating employees com- pleted the questionnaire.

Measurement

The questionnaire used in this research assessed employee perceptions of the level of organizational socialization achieved, the organizational climate for service, motivational effort, motivational direction, organizational commitment, and customer orientation. Previously developed measures of motivational effort (Hackman and Oldham 1976), organizational commitment (Porter et al. 1974), and customer orientation (Saxe and Weitz 1982) were used in this study�9

The measures for the level of organizational socialization achieved, the organizational climate for service, and motivational direction were developed for this study according to the procedures suggested by Churchill (1979) and Nun- nally (1978). A pool of items was generated for each construct based on constitutive definitions of the constructs, relevant literature, and field interviews conducted with the management of the financial institutions participating in the study. A convenience panel of three expert judges experi- enced in services research and scale development then se- lected items from each of the pools of items. In order to enhance the content validity of each scale, three managers from the participating financial institutions evaluated the instrument for problems with the content and wording of individual items prior to the administration of the questionnaire. If one judge or manager objected to an item, the item was either reworded to meet the objection or deleted from the final measuring instrument. All constructs were mea- sured on a seven-point Likert-type scale with anchors of strongly agree (1) and strongly disagree (7). Sample items for the organizational socialization, organizational climate for service, and motivational direction scales are contained in the Appendix.

The measurement scales used in this study were purified based on item-total correlations. While other methods of scale purification are available (e.g., factor analysis), item- total correlations were used based on the recommendation of Nunnally (1978) and Kline (1983). The use of item-total correlations for scale purification results in the inclusion of the "best items" in a general-purpose scale (Nunnally 1978, p. 279).

Items with low item-total correlations (< .25) were de-

leted (Nunnally 1978). This criterion resulted in the deletion of one item from the customer orientation scale and seven items from the organizational socialization scale. The item- total correlations of all other scale items were greater than the .25 criterion. The coefficient alpha values and the corre- sponding number of items for each scale were: organizational socialization (alpha = .87, 20), organizational climate for service (alpha = .95, 24), motivational effort (alpha = .75, 6), motivational direction (alpha = .88, 11), organizational commitment (alpha = .91, 15), and customer orientation (alpha = .85, 23). All of these alpha values are indicative of levels of internal consistency suita- ble for research in the social sciences (Nunnally 1978).

ANALYSIS AND RESULTS

The analyses conducted in this study to assess the measurement properties of the scales and test the relationships proposed in the conceptual framework were conducted using LISREL VI (Joreskog and Sorbom 1984). Confirma- tory factor analysis was used to assess the measurement model. Then the relationships hypothesized in the conceptual framework were tested through the structural equation model�9 The sample size for this study (n = 249) is well within the generally accepted guidelines for analyses of this type (Bagozzi and Yi 1988; Bearden, Sharma, and Teel 1982; Boomsma 1982; Gerbing and Anderson 1985; Tanaka 1987).

Measurement Model

Each scale was randomly split into halves to provide multiple indicators for each construct included in the model (c.f. Bagozzi 1980; Joachimsthaler and Lastovicka 1984; Joreskog 1978; Michaels, Day, and Joachimsthaler 1987). The fit indices provided by the LISREL VI program were used to assess the overall fit of the measurement model (see Table I). The values of these fit indices were chi-square = 114.72 with 45 degrees of freedom, goodness of fit index = �9 931, adjusted goodness of fit index = .881, and root mean square residual = .039. The overall fit indices provided by LISREL VI support the measurement properties of this model.

The values of the standard errors associated with the maximum likelihood estimates are low, suggesting that these estimates are precise. Error variances of the indicators are small and the squared multiple correlations are relatively high, indicating that individual indicators adequately reflect their hypothesized constructs. The lowest factor loading in the measurement model is .738 for Y6- All other factor loadings exceed .80 (see Table 1). The overall fit indices and the parameter estimates provide evidence supportive of the internal and external consistency of the measures (Gerb- ing and Anderson 1988) and indicate that the structural model can be evaluated.

Structural Model

The structural equation model used to test the relationships proposed in the conceptual framework is presented in

JAMS 3t WINTER, 1992


TABLE 1 Parameter Estimates for the Measurement Model

Squared Construct and LISREL Standard Error Standard Multiple Indicators Estimate Error Variance Error Correlation

Organizational Climate for Service

YI .974 - - .058 .028 .942 Y2 .980 .033 .048 .028 .952

Motivational Di~ction

Y3 .839 - - ,269 .045 .731 Y4 .931 .052 ,116 .049 .884

Motivational Effoa Y5 .843 - - .289 .055 .711 Y6 .738 .061 .456 .059 .544

Organizational Commitment

Y7 .927 - - .162 .033 .838 Ys .883 .043 .236 .035 .764

Customer Orientation Y9 .906 - - .181 .055 .819 Yw .841 .060 .294 .055 .706


Xl .899 - - .212 .031 .788 X2 .872 .042 .253 .033 .747

Goodness of Fit Index .931 Adjusted Goodness of Fit Index .881 Root Mean Square Residual 039 Chi-Square (45) 114,72

Figure 1. Based on the guidelines for the evaluation of structural equation models suggested by Bagozzi and Yi (1988), the goodness-of-fit indices indicate that the structural model fits the data (see Table 2). The values of the fit indices were chi-square = 126.5 with 44 degrees of freedom, goodness of fit index = .92 l, adjusted goodness of fit index = .860, and root mean square residual = .048. The chi-square value was significant; however, this statistic has been deemed a questionable measure of goodness of fit due to its sensitivity to sample size (Anderson and Gerbing 1984; Bagozzi and Yi 1988). Finally, the coefficient of de- termination for the structural equations was .758, indicating that over 75 percent of the variation in the data is explained by this model.

Parameter Estimates

The maximum likelihood parameter estimates support the structural model used to test the proposed conceptual framework. All of the relationships in the framework, with the exception of one, were supported. The values of the parameter estimates and t-statistics are shown in Table 2.

Organizational Socialization Outcomes The relationships between the level of organizational so-

cialization achieved by employees and the organizational climate for service (H 1), motivational effort (H2), motiva-

tional direction (H2), and organizational commitment (H5) were all positive as hypothesized in the conceptual framework. This indicates that when service employees achieve greater levels of organizational socialization, the results are more favorable perceptions of the organizational climate for service (Gammall = .549, t = 8.155), higher levels of motivational effort (Gamma31 = .380, t = 5.632) and motivational direction (Gamma2~ = .338, t = 4.575), and greater organizational commitment (Gamma4~ = .844, t = 14.426).

Two additional relationships pertaining to organizational climate and the components of motivation were proposed in the conceptual framework, The structural model indicates that employee perceptions of the organizational climate for service are positively related to motivational direction (H4) (Beta2z = - 181, t = 2.813), and motivational direction was found to be positively related to the motivational effort of service employees (H3) (Beta32 = .389, t = 5.519).

Customer Orientation

The structural model was also used to assess the impact of climate (H6), motivation (H7), and commitment (H8) on customer orientation. The model indicates that perceptions of the organizational climate for service have a positive impact on the customer orientation of the employee (H6) (Betast = .250, t = 3.804). H7 was partially supported.



TABLE 2 Parameter Estimates for the Structural Model

LISREL Standard t Standardized Parameter Estimate Error Value Value

B21 .181 .064 2.813 .204 B32 .389 .071 5.519 .406 Bsl .250 .066 3.804 .263 B52 .298 .092 3.246 .277 B53 --.038 . . . . - 0 . 3 4 5 - 0 . 0 3 4 B 54 .208 .079 2.626 .207 "Y~I .549 .067 8.155 .512 ~/2t ,338 .074 4.575 .355 "Y31 .380 ,067 5,632 .417 "Y4~ .844 .059 14.426 .833 k 1 1.000 '~ - - - - .967 k 2 1.012 .038 26.399 .979 k 3 1.000 ~ - - - - .857 k 4 1.095 .080 13.749 .939 h 5 1,000 ~ - - - - .821 h 6 .924 .095 9.684 .758 h 7 1.000 ~ - - - - .914 k 8 .957 .055 17.518 .875 h 9 1.000 ~ - - - - .920 klO .907 .084 10.800 .835 hi 1,000 '~ - - - - .902 k 2 .954 .055 17.340 .860 qbtl .813 .093 8.760 1.000 t~ll .69l ,072 9,598 .738 ~922 .556 .074 7.552 .758 t~33 .340 .065 5.245 .505 d ~ .256 .043 5.912 .307 ~S5 .583 .086 6.799 .689 0~1 l .064 .030 2.127 .064 0~22 .042 .030 1.367 .042 0~33 .266 .049 5.375 .266 0,44 .119 .053 2.244 .119 0~55 .326 .064 5.081 .326 0~66 .425 .062 6.870 .425 0~7 7 .164 .035 4,652 .164 0~88 .235 .036 6.505 .235 0~99 .162 .069 2.348 .162 0~lot o .310 .062 4.987 .310 0~l 1 .187 .033 5.596 .187 082 z _260 .036 7,299 .260

Goodness of Fit Index .921 Adjusted Goodness of Fit Index .860 Root Mean Square Residual .048 Chi-Square (44) 126.50

aParameter Values Fixed by Scaling

The relationship between motivational effort and customer orientation was not significant (Beta53 = - .038, t = - . 345), whereas the hypothesized positive relationship between motivational direction and customer orientation was statistically significant (Beta52 = .298, t = 3.246). Finally, the positive relationship proposed between organizational commitment and customer orientation was also supported (H8) (Betas4 = .208, t = 2.626).

DISCUSSION AND IMPLICATIONS

The results of this study strongly support the majority of the relationships hypothesized in the proposed conceptual framework. The only unexpected finding pertained to the relationship between motivational effort and customer ori-

entation. A positive relationship was anticipated (H7); however, the results of this study indicated there was not a significant relationship between these two constructs. The nonsignificant finding regarding this relationship may be due to the nature of the tasks being performed by the service employees of the banks sampled. It has been suggested that the motivational direction of employees may have a greater influence on their performance than motivational effort (Su- jan 1986), particularly in situations where a great deal of latitude is provided to employees with regard to their behavior (Weitz, Sujan, and Sujan 1985). In many cases, the financial services setting from which the sample for this study was drawn provides this latitude to employees regarding the level of customer orientation they can display in the performance of their duties.

Several potential limitations of this study should be noted. First, the data for this research were collected on a cross-sectional basis. This limits the study in that the process of organizational socialization is ongoing and might be more accurately assessed through longitudinal research. Second, employee perceptions of their own customer orientation were assessed. A more accurate assessment of customer orientation might have been obtained from the customers of the financial institutions participating in this study. Finally, the limited number of financial institutions participating in this study leads to caution with regard to the generalizability of the findings.

Managerial Implications

Customer orientation is clearly an important indicator of performance for service employees and organizations. Re- cently, service organizations such as American Express have been recognized for devotion to satisfying customer needs (Phillips et al. 1990). The customer orientation of the personnel in these organizations is directly related to the practice of the marketing concept by the organization (Saxe and Weitz 1982) and ultimately its profitability (Phillips et al. 1990).

The extent to which customer orientation is displayed by service employees impacts the level of satisfaction experi- enced by customers, and the quality and duration of the relationship between the organization and its customers. Many service businesses are particularly dependent on the development of long term relationships with their customers (e.g., financial service firms and insurance agencies).

From a managerial perspective, it might be argued that customer orientation takes on added importance in service organizations, because many times customers do not have tangible cues with which to evaluate the service offering. This research provides managers with some guidelines for enhancing the level of customer orientation among their personnel.

First, the process of organizational socialization is extremely important in the development of customer orientation among service employees. Organizational values are conveyed to employees in a variety of implicit and explicit ways through the process of socialization. Methods for socializing employees include realistic job previews, orientation programs, formal training programs, initial job assign- ments, on-the-job training, mentorships, organization



manuals, and performance evaluation processes. Regardless of the method or methods of socialization that are imple- mented, it is extremely important that consistent and appropriate values regarding customer-oriented behaviors are communicated to employees.

Employee perceptions of organizational values allow them to understand what is important to the organization and lead to the development of individual perceptions of climate. The perceptions of the organizational climate for service held by individual employees are directly related to their customer orientation. In addition, when the con- veyence of organizational values through the organizational socialization process results in consistent and appropriate climate perceptions among employees, the culture of the organization becomes stronger. For example, organizations such as Scandanavian Airlines Systems (SAS) and Disney- land are recognized for providing customer-oriented service due largely to the strength of their cultures. The cultures of these organizations were developed through extensive socialization programs (Albrecht and Zemke 1985).

The socialization of employees was also found to lead to greater motivational effort and direction, as well as greater organizational commitment. With the exception of motivational effort, these socialization outcomes were found to impact the level of customer orientation of service employees. This indicates that managers hoping to increase the customer orientation of their personnel should strive to develop an understanding among their employees of what is expected of them, and increase employee identification and involvement with the organization through the process of organizational socialization. Assuming appropriate values and expected behaviors are conveyed through socialization, the result should be a more customer-oriented work force. For example, in an effort to enhance the customer orientation of its employees, British Airways has instituted an extensive training program in order to socialize its work- force toward customer-oriented values and role expecta- tions. The enhancement of employee motivation and commitment levels through training programs and extensive preaching of customer-oriented values has given British Air- ways one of the best service reputations in the airline industry (Maremont 1990).

Ultimately, how effectively an organization conveys its values and expected behaviors to its employees impacts the satisfaction of its customers, the long-term relationship between the organization and its customers, and the profitability of the organization.

Research Implications

There are several research implications that can be de- rived from the present study. Subsequent research might consider the relationships in this framework on a longitudinal basis. Longitudinal research would allow the consideration of customer orientation throughout employee career stages. Longitudinal research would also make it possible to more precisely consider the process of socialization and its impact on customer orientation than is possible through cross-sectional research.

Research suggests that the organizational socialization

process can be used to convey values to employees viewed as being appropriate by the organization (Louis 1980). Fu- ture research might investigate the relationship between organizational socialization and the personal value systems of employees. Balazs (1990) has considered the value congruency between employees and their employing organization using the Rokeach Value Survey. The investigation of the relationship between the level of organizational socialization achieved by individuals and their personal value systems, or methods of organization socialization and personal value systems may be of interest in subsequent research efforts.

Future research might also be conducted in a variety of industries, as some of the results of this study may be industry-specific. In particular, motivational effort and direction may be differentially related to customer orientation in other industries. For example, motivational effort may have a stronger relationship with customer orientation in a service industry less reliant on the employee-customer interaction during service provision (e.g., lawn services and repair services).

Future studies of customer orientation might consider other antecedents of customer orientation. For example, relationships between customer orientation and role-related constructs, job satisfaction, or organizational factors might be considered. Other research on customer orientation might investigate the construct from the perspective of the customer. Research of this nature might take a dyadic approach, allowing the consideration of differences between employee and customer perceptions of customer orientation. Michaels and Day (1985) have developed a revised SOCO scale that could be used for research of this nature. The consideration of research questions of this nature should improve our understanding of customer orientation and its antecedents.

APPENDIX

Sample Items for Organizational Socialization, Organizational Climate, and Motivational Direction Scales


1 feel comfortable in this organization.

I understand the values that are important to this organization.

This organization influences me.

Organizational Climate for Service

In this organization consistent service performance is important.

In this organization prompt service from its employees is stressed.

In this organization a reputation for good service is emphasized.



Motivational Direction

Developing a work strategy is important.

A work plan is important on this job.

I manage my time on the job well.

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ABOUTTHE AUTHOR

Scott W. Kelley is Assistant Professor of Marketing at the University of Kentucky. He received his Doctorate in Mar- keting from the University of Kentucky. His research inter- ests include services marketing and ethics. His research has been published in the Journal of Business Research, Journal of Retailing, and the Journal of Services Marketing.


Documents

Developing customer orientation among service employees