Using job satisfaction and pride as internal-marketing tools

Using

Job Satisfadon and Pride as Internal-marketing Tools

Employees’ attitudes and opinions about their colleagues and the work environment may make all the difference between workers’ merely doing a good job and delivering exceptional guest service.

BY DENNIS B. ARNETT, DEBRA A. LAVERIE, AND CHARLIE McLANE

I ncreased competition in the hotel industry has caused many companies to consider new strategies for gaining a competitive advantage. To implement new marketing

approaches successfully, however, it is often necessary to first alter the culture of an organization to help align employees’ attitudes with the new strategy. For example, many service- oriented organizations institute strategies that are designed to increase customer satisfaction and loyalty, and the successful implementation of those plans requires that employees adopt certain actions and beliefs (e.g., being customer-focused and cooperating with each other).

Managers can alter the culture of their organizations by (1) hiring employees who fit well with the new vision of the organization, (2) training employees in skills that match the new vision, or (3) motivating employees to adopt actions and

attitudes that are consistent with the new vision. This process is often referred to as internal marketing. As Philip Kotler suggests, “internal marketing must precede external marketing. It makes no sense to promote excellent service before the company’s staff is ready to provide it.“]

Benefits of Internal Marketing Successful internal marketing programs can lead to important payoffs for an organization. The benefits of internal marketing stem from four main sources: (1) low employee-

’ Philip Kotler, MarketingManagement, (Upper Saddle River, NJ: Prentice Hall, 2000), p. 22.

0 2002, CORNELL UNIVERSITY

APRIL 2002 Cornell Hotel and Restaurant Administratlon Quarterly 87

tiUMAN RESOURCES I EMPLOYEE PRIDE

turnover rates, (2) an increase in service quality, (3) high 1 eve s o employee satisfaction, and 1 f (4) an improved ability to implement change in the organization.2

First, the reduction in employee turnover de- creases both recruiting and training costs. Because fewer new employees are needed, resources that would have been directed to filling empty posi- tions and training new employees can be used for other purposes (e.g., improving the skills of existing employees). In addition, low turnover rates translate into less stress for existing employees. When people leave an organization, other employees are often called on to fill in until new employees are hired and trained, which can increase those reassigned employees’ level of stress and, in turn, decrease their level of job satisfaction.

Second, internal marketing has both an internal (employee) focus and an external (customer) focus. It is internally focused because it involves motivating, mobilizing, co-opting, and managing employees. It is externally focused because it is designed to improve the way a company serves its customers. Therefore, internal marketing provides a way to encourage employees to continu- ally improve the way they serve customers and each other.

Third, an increase in employee satisfaction motivates workers to be more engaged and, as a result, they are more likely to take actions that result in increased guest satisfaction and profitability. For example, Spinelli and Canavos suggest that the most-satisfied employees respond best to the needs of individual guests, which increases the overall level of satisfaction of the guests.3

ZSusan L. Taylor and Robert M. Consenza, “Internal Mar- keting Can Reduce Employee Turnover,” Supervision, Vol. 58, No. 12 (December 1997), pp. 3-5; Robert C. Lewis, “Hospitality Marketing: The Internal Approach,” Cornell HodandRestaurantAdministration Quarter&, Vol. 30, No. 3 (November 1989), pp. 41-45; W. Benoy Joseph, “Inter- nal Marketing Builds Service Quality,” Journal of Health CareMarketing, Vol. 16, No. 1 (Spring 1996), pp. 54-59; and Sybil F. Stershic, “New Imperative for Service Manage- ment,” Marketing News, Vol. 28, No. 19 (May 9, 1995), pp. 22-23.

3 Michael A. Spineili and George C. Canavos, “Investigating the Relationship between Employee Satisfaction and Guest Satisfaction,” Cornell Hotel and Restaurant Administration Quarter4 Vol. 41, No. 6 (December ZOOO), pp. 29-33.

Fourth, one of the most difficult things to manage in organizations is change. For organizations in transition, internal marketing is crucial. Internal marketing helps reinforce and develop a culture where the need for change is understood and accepted. As a result, the organization is more successful at implementing new strategies, which improves the chances that the strategies will be successful.

One of the basic benefits of successful internal marketing is the ability to motivate employees to practice behavior that will assist in the implementation of marketing strategies. Since the hotel industry has always been committed to developing customer loyalty, it is as critical now as ever for hotel employees to act in a manner that encourages guests’ loyalty. That is, customer loyalty is important in the hotel industry because it is a mature industry and competition is intense. As a result, there is often little product differen- tiation within segments (e.g., many luxury hotels offer guests many of the same amenities) .4

Because most hotels rely directly on their employees to deliver superior service, hotel employees can be a source of competitive advantage.’ Customer satisfaction, service quality, and customer loyalty are influenced considerably by the beliefs and actions of hotel employees.’ By providing outstanding service, hotel employees can enhance the image of the hotel and the level of perceived (and actual) service quality.

We suggest that successful internal-marketing strategies can enhance both job satisfaction and pride in the organization, which result in an increase in positive employee behavior. Positive employee behavior is characterized by a commitment to providing the guest with good service, cooperation with other employees, and a commit-

4 JohnT. Bowen and Stowe Shoemaker, “Loyalty: A Strate- gic Commitment,” Cornell Hotel and RestaurantAdministra- tion Quarter4 Vol. 39, No. 1 (February 1998), pp. 12-25.

5 Cathy A. Em and Judy A. Siguaw, “Best Practices in Ser- vice Quality,” Cornell Hotel and Restaurant Administration Quarter&, Vol. 41, No. 5 (October 2000), pp. 20-24.

’ Mary Jo Bitner, Bernard H. Booms and Mary Stanfield Tetreault, “The Service Encounter: Diagnosing Favorable and Unfavorable Incidents,” Journal of Marketing, Vol. 54, No. 1 (January 1990), pp. 71-84.

EMPLOYEE PRIDE HUMAN RESOURCES

ment to the organization. These activities and beliefs contribute to a hotel’s ability to deliver a high level of service that encourages customer loyalty. We note that although the effects of employee satisfaction have been researched exten- sively, the effect of pride has not. We posit that both job satisfaction andpride are important variables that can be used by managers to encourage employees to engage in desired behavior.

, 0 el for Increasing Positivi~ r\ld . l~hplovce Kelm:ic~l , The focus of many hotels is to develop long-term competitive advantages over their rivals that lead to increased customer loyalty and, in turn, increased profitability, Because many attributes of the products and services they offer can be easily copied by competitors (e.g., the size or price of rooms), successful hotels must build customer loyalty using factors other than product-and-service attributes. Developing loyal customers is easier when an organization emphasizes the importance of the relationship it has with its employees. We suggest that developing a good relationship with employees is a precursor to building a good relationship with customers. This study focuses on the antecedents of positive employee behavior (i.e., a commitment to customer service, cooperation with other employees, and a commitment to the organization). Specifically, our investigation focuses on how hotels can use an internal marketing approach to encourage their employees to develop a sense of job satisfaction and pride in the hotel. Exhibit 1 provides an overview of the factors included in our study as well as the hypothesized relationships among them.

Job satisfaction refers to an employee’s general affective evaluation of his or her job. Job satisfaction is fundamental in the hotel industry as it helps to ensure that employees will treat customers with the utmost respect. Because of the important role that service employees play in developing relationships with customers, employees’ satisfaction is a major concern for organizations that are interested in increasing customer loyalty. Employees’ job satisfaction has been linked to an increase in customer orientation by the em-

Antecedents and consequences of job satlsfactiorl and pride in the organization (all positive relationshps)

(3 Organization Performance

HUMAN RESOURCES I EMPLOYEE PRIDE

ployee, an increase in customer satisfaction, and an increase in perceived service quality, Research suggests that satisfied employees believe that appropriate behavior will be rewarded by the organization.’ In general, job satisfaction leads to employees’ intentions to keep performing well their required job tasks, which, in turn affects their actual behavior. Therefore, employee job satisfaction is a crucial prerequisite to service ex-

There is a positive relationship between pride in the organization and positive employee behavior-just as there is a positive relationship between job satisfaction and pride.

cellence. We posit that employees who are satisfied with their jobs will also be those most likely to engage in positive employee behavior.

Pride in the Organization Pride is an emotion that is crucial to understanding human behavior. It is derived from both self- appraisals and others’ opinions. Pride represents a belief that one is competent and viewed positively by others. It encourages self-control and is responsible for people behaving in accordance with norms.’ Pride in an organization results from specific perceptions of the organization and from experiences with that organization. Moreover, it stems in part from the belief that one’s actions influenced the success of the organization. It is enhanced by one’s personal beliefs about the organization as well as by other people’s perceptions of it.

Employees with a high level of pride in an organization perceive that organization as important, meaningful, effective, and as a worthwhile part of the community. As a result, employees are more likely to engage in activities that help

7 Valerie Zeithaml and Mary Jo Bitner, Services Marketing: Integrating Customer Focus Across the Firm (New York, NY Irwin McGraw-Hill, 2000).

a Sheldon Stryker, “The Vitalization of Symbolic Interactionism,” Social Psychological Quarterly, Vol. 50, No. 1 (March 1987), pp. 83-94; and Susan Shott, “Emotion and Social Life: A Symbolic Interactionist Analysis,” Ameri- can Journal of Sociology Vol. 84, No. 6 (May 1979), pp. 1317-1334.

the organization to meet its objectives. Emotions such as pride have been linked to high quality service delivery and employees “going out of the way” or “beyond the call of duty” for customers. For example, Howard Johnson franchisees indicate that employee pride played a key role in its mid-l 990s turnaround.9 Therefore, we predict that there is a positive relationship between pride in the organization and positive employee behavior. In addition, we suggest that there is a positive relationship between job satisfaction and pride.‘O

Role Clarity Role clarity suggests that employees are clear about the scope and responsibilities of their job. In the context of the hotel industry, role clarity involves providing clear expectations of the role- prescribed behavior that the organization moni- tors and rewards. For example, organizations often define explicitly role-prescribed actions such as greeting guests by name, making a personal promise to a customer that a request will be pro- cessed quickly, and answering the phone in three rings. ” When employees know what is expected of them, they are more likely to meet role obli- gations and are more satisfied with their jobs.12

9 Robert Nozar, “Pride Pushes HoJo’s Success,” Hotel and Motel Management, Vol. 210, No. 3 (February 20, 1995), pp. 3, 24.

” As pointed out by two anonymous reviewers, the relationship between pride and job satisfaction could also be reversed. That is, a case could be made for pride leading to an increase in job satisfaction. Indeed, one could argue that the relationships could go both ways. However, our argu- ment is based on the premise that pride is based on self and social appraisals. We posit that job satisfaction acts as a com- ponent of both self and social appraisals linked to the organization. To feel pride in an organization, one mttst believe that one’s actions are influencing the organization positively. Job satisfaction, we argue, provides the needed connection between an employee’s actions and the organization. De- finitive evidence as to the exact relationship could be derived from longitudinal studies. However, currently we know of no such study.

I1 Patricia Galagan, “Putting on the Ritz,” Training &De- velopment, Vol. 47, No. 12 (December 1993), pp. 41-45.

‘a David E. Bowen and Benjamin Schneider, “Boundary Spanning Role Employees and the Service Encounter: Some Guidelines for Management and Research,” in The Service Encounter: Managing Employee/Customer Interaction in Ser- vice Business, ed. J.A. Xzepiel, M.R. Soloman, and C.F. Surprenant (New York, NY: Lexington Books, 1985),

pp. 127-147.

90 Cornell Hotel and Restaurant Administration Quarterly APRIL 2002

EMPLOYEE PRIDE I

Conversely, when employees are unsure of what their job entails they tend to feel frustrated. Therefore, we expect a positive relationship between role clarity and job satisfaction.

Employees need to know that they will be measured on how well they perform their duties and that it is worthwhile to perform their duties we11.‘3 Employees’ percep tions of rewards are closely related to those workers’ motivation and performance. To be effective, any reward system will support organizational goals, encourage cooperation, be fair, have a positive influence on performance, and focus on serving the customer. In brief, effective rewards are a key to achieving the strategic goals of a company. In the hotel industry, effective rewards help employees to understand the level of guest service that needs to be delivered. In addition, they provide employees with a measure of how much the company values their contributions.

The purpose of a reward system is to motivate employees to practice proper behavior. To do this the rewards offered must be perceived as being valuable. In addition, the reward system must be perceived as being ftir (i.e., every one has a chance to be recognized, and rewards are commensurate with the outstanding service performed). The ex- tent to which employees believe that the reward system is appropriate and fair will have a positive effect on employees’ job satisfaction,

Employees, like guests, prefer an environment that is pleasing and offers rewarding experiences.‘* One of the factors that employees use to judge a work environment is the image the firm portrays, which is influenced by the appearance of the sur- roundings and the level and reputation of the organization. Other factors include an opportu- nity to grow, the existence of competent and knowledgeable co-workers, the ability to be in-

I3 Leonard L. Berry and A. Parasuraman, Ma&&g Ser- vices Competing through Quality (New York, NY: The Free Press, 1991).

I4 Judy King, “Industry Must Treat Employees, Guests with the Same Concern,” Hotel &Motel Management, Vol. 2 14, No. 1 (January 11, 1999), p. 12.

volved in decision-making, and the availability of tools necessary to do the job well. Finally, employees look for an environment where they feel trusted and can count on the other people in the organization. Is Hotel-industry executives suggest that when companies provide an excellent work environment they achieve employee satisfaction.‘” Therefore, we expect to find a positive relationship between work environment and job satisfaction.

Customer loyalty must begin with employee loyalty in a culture that is employee-based and employee-driven. ” Managers need to ensure that employees have the proper training and resources that allow them to deliver high levels of guest service. In addition, it is important that managers listen to employees and act appropriately. Employees’ perceptions of managers’ fairness are important and are related to how the managers handle such issues as allocating the workload, applying standards, performing evaluations, and issuing compensation and promotions.‘8 Fair and effective procedures coupled with the proper ex- ecution of such procedures provide a guarantee of rewards that promote exceptional employee cooperation and customer-service performance.” Thus, we expect to find a positive relationship between employees’ evaluation of managers and workers’ job satisfaction and pride in the organization.

Organizational performance can be a source of pride for employees. People like to associate them- selves with successful groups as a means to bol-

I5 Laurette Dub& Cathy A. Enz, Leo M. Renaghan, and Judy A. Siguaw, “Managing for Excellence: Conclusions and Challenges from a Study of Best Practices in the U.S. Lodg- ing Industry,” Cornell Hotel and Restaurant Administration Quarter/y, Vol. 4 1, No. 5 (October 2000), pp. 30-39.

I6 Spinelli and Canavos, pp. 29-33.

” Carlo Wolff, “Great Hospitality Is Made Not Born,” Lodging Hospitality, Vol. 56, No. 4 (March 15, 2000), pp. 28-32.

” Jerald Greenberg, “Organizational Justice: Yesterday, Today, and Tomorrow,” /ournal of Management, Vol. 16, No. 2 (June 1990), pp. 399-432.

” Allan E. Lind and Tom R. Tyler, The Social Psychology of Procedural Justice (New York, NY: Plenum Press, 1988).

91

HUMAN RESOURCES EMPLOYEE PRIDE

Sample items from the questionnaire

Construct Sample auestion

Role Clarity

Evaluation of Rewards System

I understand what my role is in the delivery of excellent customer service.

High performers are rewarded.

Work I have the resources that I need to deliver excellent Environment customer service.

Evaluation of Management Managers take action quickly to correct employee problems

Organization Performance This hotel provides better guest services than ifs rivals.

Job Satisfaction

Overall my job experience has been excellent here at <hotel name>.

Pride in Organization I am proud to tell people where I work.

Positive Employee I make every possible effort to resolve Behavior customers’ problems.

ster their self esteem. In contrast, people also try to maintain their self esteem by disassociating them- selves from unsuccessful groups. Therefore, when a company is performing well, its employees are more likely to be satisfied and to perform we11.20

Organizational performance is normally public knowledge, and as such it becomes a measure of the quality of the company and its employees. The fact that it is known to others outside the company increases its importance as a measure of self-worth. Therefore, we posit that successful companies foster more pride in their employees than do average companies.

Note: These examples do not represent the exact items used in the study. The scales are proprietary and, therefore, it was necessary to alter their wording slightly.

*‘R.B. Cialdini, R.J. Border, A. Thorne, M.R. Walker, S. Freeman, and L.R. Sloan, “Basking in the Reflected Glory: Three (Football) Field Studies,” /ournal of Personality and Social Psychology, Vol. 34, No. 3 (September 1976), pp. 366-375.

21 Dennis W. Organ, Organizational Citizenship Behavior: The Good Soldier Syndrome (Lexington, MA: Lexington Books, 1998).

Positive Employee Behavior Positive employee behavior refers to the construc- tive actions of employees on behalf of the firm, other employees, and customers. These activities are part of the employee’s role in the organization and are intended to promote the well-being of the organization or its customers.” To be effective, hotels must encourage employees to engage in behavior that allow them to interact better with each other and with guests. Many actions are prescribed by the organization. However, some desired behavior might include actions that go beyond those outlined in any employee manual. Specifically, we suggest that positive employee behavior is a combination of a mini- mum of three actions and beliefs: (1) a commitment to customer service, (2) cooperation with fellow employees, and (3) a commitment to the organization.

Questionnaire Development Th e questionnaire that we used in this study was developed for internal purposes at a promi- nent hotel-casino corporation. The questionnaire was developed by using relevant litera- ture, expert opinions, and employee responses. Sample questions from the survey are presented in Exhibit 2. The questionnaire was tested and


EMPLOYEE PRIDE HUMAN RESOURCES

refined over a nine-year period by examining its psychometric properties. The items on the current questionnaire performed well (i.e., they exhibit acceptable psychometric properties- see Exhibit 3). 22 As p art of the corporation’s annual internal assessment process, the questionnaire was administered to all employees. The current study represents the responses from one of its properties.

Results The census provided us with 860 question- naires. The majority (71 percent) of the respondents had been with the organization for between 1 and 5 years, 26 percent had been with the corporation less than one year, and the re- maining 3 percent had been with the corporation for over five years. Most respondents (83 percent) were hourly employees, 9 percent were supervisors, 4 percent were considered salaried non-management employees, and another 4 percent were managers. Forty-seven percent worked the day shift, 34 percent worked the “swing” shift, and 19 percent worked the “graveyard” shift.

Statistical tests. The model in Exhibit 1 was

tested using PLSPath-a structural-equation- modeling program developed by Norbert Sellin. Using procedures suggested by other researchers, we were able to produce a model that fit the data well (see Exhibit 4).24 The main cri-

22 All internal-consistency measures are above the .70 level. Therefore, the scales demonstrate internal reliability. The average variance extracted for each reflectively measured construct is high (all values are above .53). This high average variance extracted coupled with the strength and sig- nificance of the parameter estimates for the reflective scales provide evidence of convergent validity. The results also show that the variance shared between each construct and its measures is higher than the variance shared between the construct and other constructs in the model, which provides evidence of discriminant validity-see Exhibits 3 and 4. See: C. Fornell and David F. Larcker, “Evaluating Struc- tural Equation Models with Unobservable Variables and Measurement Error,” /ournalofMarketing Research, Vol. 18, No. 1 (February 1981), pp. 39-50.

23N. Sellin, PLSPath Version 3.01 Application Manual (Hamburg, Germany: Norbert Sellin, 1989).

24See: C. Fornell, G.J. Tellis, and G.M. Zinkhan, “Validity Assessment: A Structural Equation Approach Using Partial Least Squares,” in AMA Educators’ Proceedings, Vol. 48, ed. B.J. Walker, etal. (Chicago: American Marketing Association, 1982), pp. 405-409; and Fornell and Larcker, pp. 39-50.

Measurement Results

Scale item, description

Role Clarity RCI RC2 RC3

Loading

.77

.81

.84

Evaluation of Reward System ERSI .88 ERSZ .91 ERS3 .84

Work Environment WE1 WE2 WE3

.80

.83

.79

Evaluation of Management EM1 .83 EM2 .83 EM3 .89 EM4 .84 EM5 .83

Organization Performance PERFI .78 PERF2 .7l PERFS .88

Job Satisfaction Sl s2 s3

.73

.85

.83

Organizational Pride Pl P2 P3

.87

.92

.89

Positive Employee Behavior EBI .50 EB2 .77 EB3 .86

Note:All loadings are significant at p < .05.

Average variance Internal extracted reliability

.65 .85

.77

.65 .85

.71

.63 .83

.65 .85

.80 .92

.53 .76

.91

.93

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HUMAN RESOURCES I EMPLOYEE PRIDE

Statistical relationships of the model (from Exhibit 1)

Environment

Notes: All statistics shown are significant at p < .Ol; ns = not significant.

terion for assessing model adequacy for PLSPath Establishing I’mi tive Beh:~\d~)j~ analysis is explained variance (Rz).“5 As can be 1 t is important that managers understand the ef- seen in Exhibit 4, the model explains a great deal feet that job s&faction and pride have on de-

ofvariance in job satisfaction (R’ = .54), pride in sired employee behavior. The results support our the organization (R’ = .62), and positive em- suggestion above that both job satisfaction and ployee behavior (R2 = .64). Therefore, the model pride in the organization are important anteced- is a good fit to the data.26 ents of positive employee behavior. The regres-

25 D W. Barclay, “Interdepartmental Conflict in Organizational Buying: The Impact of the Organizational Context,” Journal of Marketing Research, Vol. 28, No. 2 (May 1991), pp. 145-159.

x PLS analysis is a SEM technique that is an ahernative to covariance structure analysis, which uses programs such as LISREL and EQS. The use of PLS analysis has certain advantages: (1) it does not suffer from indeterminacy problems like other causal modeling techniques (e.g., EQS and LISRBL), (2) it is a nonparametric technique and, therefore, does not assume normality of the data, (3) it allows researchers to work with more complex models than other causal modeling techniques, and (4) it allows researchers to easily use both formative and reflective measures in the same analysis. The objective of PLS analysis is the explanation of variance through an iterative ordinary least squares (OLS) procedure and, therefore, fit indices such as the ones generated by covariance structure analysis are not generated. Because of its algorithmic nature it is predictive in a regression sense. For a more detailed discussion of the PLS method see W.W. Chin, “The Partial Least Squares Approach to Structural Equation Modeling,” in Modern Methodr fir Business Rcseurch, ed. Marcoulides (Mahwah, NJ: Lawrence Erlbaum Associates, 1998).


EMPLOYEE PRIDE I

HUMAN RESOURCES

sion weight (p) for the path from job satisfaction to positive employee behavior is .46. The path from pride to positive employee behavior is also strong, as demonstrated by the regression coefficient (p) of .4O. Those factors explain a large portion (64 percent) of the variance in positive employee behavior. These results indicate that the two factors have similar effects on positive employee behavior (i.e., the regression coefficients have comparable magnitudes).”

Encouraging Job Satisfaction As discussed earlier, three factors seem especially critical to building job satisfaction among employees-role clarity, the work environment, and employees’ evaluations of managers’ performance. As expected, role clarity is related positively to job satisfaction, as evidenced by a p of .25. Em- ployees who believed that they had a clear understanding of what it took to do their job were more likely to be satisfied with their jobs. There- fore, employers should try to ensure that employees have a clear understanding of their job responsibilities and the actions that are expected of them.

Interestingly, the employees’ evaluation of the reward system did not influence their job satisfaction. (The regression coefficient was not significant.) However, we believe that this is not an indication that employees do not care about the reward systems in their organizations. Instead, it may be an indication that other factors are more important determinants of employee behavior (e.g., work environment, role clarity, and perceptions regarding managers).28

The results do support the proposition that the work environment affects job satisfaction, as evidenced by a p of .20. Employees tended to be satisfied with their jobs when they believed that they had a good work environment. Therefore, hotels should not focus solely on the guests’ environment, but should also examine the environment that their employees experience. Although

” Note that one can directly compare regression weights in this model because they are standardized to the same scale.

*a Discussions with human-resources experts in the hotel industry, including one of the authors of this study, suggest that this result does not contradict their experiences. For example, reward systems are not usually the most important points of contention in labor negotiations.

the two environments overlap, employees encounter many things that guests do not (e.g., there are many parts of a hotel that a guest never sees).

The data support the proposition that employees’ evaluations of managers is related positively to job satisfaction, as evidenced by a p of .38.

Three factors seem es ec~ally critical to building job satisfaction among em~i~yees-robe clarity, the work environment, and e loy- ees’ evaluations of mana er~orma~ce.

Employees who evaluated managers positively tended to be satisfied with their jobs. Therefore, managers should monitor the perceptions that employees have of the management team-and efforts should be made to alter negative perceptions and promote positive ones.

An examination of the regression weights related to job satisfaction reveals that workers evaluation of managers is the most important antecedent ofjob satisfaction (i.e., it has the largest regression weight, p = .38). Role clarity is the next most important construct (p = .25), followed by work environment (p = .2O). Those three factors explained 54 percent of the variance in job satisfaction.

Building Pride in the Organization The effects of three factors on pride in the organization were examined-job satisfaction, evaluation of managers, and organizational performance. The results support the proposition that job satisfaction effects pride positively, as evidenced by a p of .4 1. Employees who were the most satisfied with their jobs exhibited the most pride in their organizations. Therefore, we suggest that job satisfaction influences employee behavior in two ways. First, it has a direct effect, which is demonstrated by the significant relationship between job satisfaction and positive employee behavior. Second, it affects positive employee behavior indirectly by encouraging pride in the organization, which, in turn, encourages positive employee behavior.

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I EMPLOYEE PRIDE

The results support the proposition that employees’ evaluation of managers has a positive effect on pride in the organization, as evidenced by a p of .32. Employees who had a positive im- pression of management tended to have more pride in the organization. The results suggest that employees’ positive perceptions of managers can affect positive employee behavior in three ways. It is related positively to job satisfaction, which, in turn, affects positive employee behavior both directly and indirectly through pride in the organization. It also has a direct effect on pride in the organization, which, in turn, affects positive employee behavior. Therefore, as our model suggests, the perception of management may have the greatest ability of all of the factors examined in this study to influence employee behavior.

The results support the proposition that organizational performance can influence pride in the organization, as evidenced by a p of. 19. Em- ployees who believed that the organization was performing well tended to exhibit great pride in the organization.

An examination of the regression weights related to pride in the organization reveals that job satisfaction is the most important antecedent of

Dennis B. Arnett, Ph.D. (above, left), is an assistant professor of marketing at Texas Tech University ([email protected]), where Debra A. Laverie, Ph.D. (middle), IS an associate professor of marketing ([email protected]). Charlie McLane, J.D. (right))) IS executive dlrector of CUE, Inc. ([email protected].

0 2002, Cornell University; refereed article: submitted on January 11, 2002; accented with minor revisions on March 11, 2002.

pride in the organization (i.e., it has the largest regression weight - p = .4 1). Evaluation of management is the next most important construct (p = .32), followed by organization performance (p = .19). Th ese f actors explained 62 percent of the variance in pride in the organization.

lmplicntions: Why job S;dktic~ri

md I’ricic Are I nipoxm t

Our study suggests that both job satisfaction and pride in the organization are important factors that influence employee behavior. In fact, for our sample they have approximately the same direct effect on employee behavior. Therefore, organizations that wish to promote positive behavior in their employees should focus on both of these factors. Although many organizations have specific programs and procedures designed to improve employee satisfaction, fewer organizations make a concerted effort to increase employee pride. Our results suggest that more organizations should focus on improving employee pride. Organizations in other industries have followed this strategy with success.29 For example, South- west Airlines executives have told us that the firm makes an extraordinary effort to increase both employee satisfaction and pride, and its efforts have paid off.

When interpreting our results, one should note that this study examines allemployees of a single property. It may be the case that there are factors that exist that are specific to different types ofjobs (e.g., managers, housekeepers, chefs) that affect job satisfaction and pride. Therefore, the factors included in this study should be viewed as potential starting points. Managers must try to understand what additional factors may affect their specific employees’ levels of satisfaction and pride and then use this information to improve their employees’ levels of satisfaction and pride. In addition, one should note that the respondents in this study, as in many studies of this kind, were asked questions about their own actions and, therefore, there is always the chance that their answers may reflect a bias toward socially desir- able answers, %

‘(I Cathy A. Em and Judy Siguaw, “Best Practices in Hu- man Resources,” Cornets Hot& and Restaurant Administra- tion Quarterly, Vol. 4 1, No. 1 (February 2000), pp. 48-6 1.

Documents

Using job satisfaction and pride as internal-marketing tools