Lect 20-21 (Internal Relationships)

7/29/2019 Lect 20-21 (Internal Relationships)

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Internal Relationships


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Gummerson (2002) terms internal

relationships as Nano Relationships and

external relationships as mega relationships.

Different approaches to internal or employee relationships


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Christopher et al. (1991) describes them s Internal

Markets covering relationships with employees and

also Recruitment Markets covering relationships with

potential employees. These markets comprise 2 of their6 Markets Model.


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Morgan and Hunt (1994) and Doyle (1995) use the term

Internal Partnerships, comprising relationships between

organization and its employees, relationships between functional

departments within the organization and relationships between

SBUs within the organization.


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Definition Internal Marketing

A marketing-like approach applied internally

to improve the overall effectiveness of the

organization in the external markets.


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Internal Marketing Relationships

Internal Marketing

Concept of theinternal customer

Employee impact onexternal customers

Organizationto employee

Employee toemployee

Departmentto

department

Customerfocus

Recruitmentmarket


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Concept of the Internal Customer

Employees as customers of the organization;

Employees as supplier and customers of each other.

Internal departments or operating units as suppliersand customers of each other. It is based on the ideathat each group within the company should treatthe recipients of their output as an internalcustomer and strive to provide high quality outputsfor them.


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Employees as Customers of the

Organization

Managers should view employees as customers

we can think of internal marketing as viewing

employees as internal customers, viewing jobs

as internal products that satisfy the needs and

wants of these internal customers while

addressing the objectives of the organization(Berry, 1981)


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Herb Keller, co-founder and former

CEO of Southwest Airlines


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Internal relationships

Airtel Reverse Mentoring, Happy Mondays

McDonalds Empowerment


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Managing Relations with Customer

Facing Employees

Smile campaigns

Reward and recognition

Training and personal development

Empowering the employees

Salary, job role, power.


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Right from offer kit to onsite transfer to having

Yahoo ! Logo painted on bike, internal

marketing is there everywhere

Freedom to express new ideas

Friendly relations in the team


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Name: Archana

Title: Software Engineer in Test

Office: Mountain View, California, USA

Hometown: Bangalore, India

Education: University of Houston & Rice University, MS in Computer

Science


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Advantages of the Internal

Customer Concept

Everyone sees their role in the firm's total

operations

Simple, involves everyone and is

implementable...


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Impact of Employees on External

Customers

All employees are focused on the externalcustomer

Employees relations with customers andmanagers ability to influence these


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Potential for Employee Conflict

Roleambiguity

and conflict

Dissatisfaction

Frustration

Desire to Quit

Schneider, 1980

Incongruencebetween employeeservice orientationand perceivedorientation of mgt.to service


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Happy Employees....

= Happy Customers


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The Recruitment Market

High cost of employee turnover

Improving employee retention

Attracting the right type of staff

Managing recruitment supply channels


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Managing Internal Marketing

Relationships

The HR / Marketing boundary

Operational aspects

- upwards communications

- sideways communications

- downwards communications

Organizational structure and culture


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Homework

Case - Cobblers Enjoy their jobs More than

Most from page 296 to 297 in Text Book

Documents

Lect 20-21 (Internal Relationships)