Relationships among Internal Marketing, Employee Job Satisfaction and International Hotel Performance
The concept of internal marketing employed in the service sector is crucial to excellent service provision and successful external marketing whicth calls for an exploration in details. Taking this concept into account, this paperptesens an empirical study on the correlations among internal marketing, employee job satisfaction and organizational performance with respect to international hotels in Taiwan. Findings show significant correlations among internal marketing, employee job satisfaction and performance of international hotels. These findings can provide a basis for futurv academic research of related topics as well as a solid reference for business owners and managers in the service sector Ⅰ. Introduction
Several experts Thomas. 1978; Gronroos. 1990; Kotler. 2000 have consecutively proposed a conceptual framework of service marketing known as the "Service Triangle" to incorporate the concepts of Internal Marketing, External Marketing and Interaction Marketing into a more intensive concept, in developing these marketing strategies, attention
shall be given to conventional marketing strategies with the aim of providing services that are unique and acceptable to the external customers to win their loyalty. Attention shall also be given to the value of employees, with the goal of determining them to be a contributory to the overall "organizational capital" of the business. Kotler explains that internal marketing is more important than conventional external marketing. Further, Greene et al., point out that internal marketing is the key to excellent service and to successful external marketing. These two views justify the exploration ofthe marketing concept, i.eInternal Marketing, within a business organization in the service sector. Research reveals that the concept and the action of an enterprise's internal marketing upgrade employee job satisfaction Tansuhaj et al., 1991; Rafig and Ahmed. 2000; Conduit and Mavondo, 2001. and in turn improve the organizational performance of the enterprise Pfeffer and Veiga, 1999; Neheker et al., 2001. This study presents an empirical exploration into the correlations among internal marketing, employee job satisfaction, and organizational performance of the international hotels in Taiwan, and thus to contribute to practical implementation ofthe correlations and additional academic research in the future.
Ⅱ. Literature Review
1. Implication of Internal Marketing
Previous research about internal marketing can be divided into
1 Treating the Employee as an Internal Customer. Many experts Sasser and Arbeit, 1976; Berry, 1981; Greene et al. l994:Cahill, 1996; Hultet al., 2000 believe that the task of internal marketing is to view the jobs as products; and employees as customers.
2 Developing Employee Customer Orientated Behavior. Piercy and Morgan 1991
address the application of marketing skill in the internal marketing of a company. They argue that the company should adopt a framework similar to that of its external marketing and develop a marketing program aimed at the internal market. The goal would be to stimulate service awareness and customer oriented behavior. Many other experts share the same viewpoint Gronroos, 1985;Heskett, l987;Gronroos, 1994; Plefferand Veiga, 1999: Conduit and Mavondo, 2001.
3 Human Resource Management HRM Orientation. According to Joseph 1996, internal marketing should be incorporated with HRM theories, technologies and principles. Cooper and Cronin 2000 believe that internal marketing is comprised of efforts within organizations to train and encourage employees to provide better services.
4 Internal Exchange. Baketal. 1994 propose that allowing efficient operation of an exchange relationship between the organization and its employees is the first move to arrive at the organization's objectives
in the external market. Cahill 1996, Pitt and Foreman 1999 share similar comments.
2. Measuring Job Satisfaction
Job Description Index JDI Smith et al., 1969 is the most frequently quoted scale when measuring job satisfaction. The scale includes areas like type of job, remuneration, promotion, superior management, and joh associates. However, Spector 1985 has identified some problems with JDI when it is applied to employees from the service sector. Thus Spector developed the Job Satisfaction Survey JSS that essentially bringing more to the forefront aspects of satisfaction of remuneration, promotion, management styles and relations, welfare, incentive, operation procedures, associate relationships, job description, and communication.
3. Measuring an Organization's Performance
Comparatively comprehensive viewpoints on measuring performance of an organization have been introduced since the 197O's. Indices suggested by Campbell 1977 include general performance, productivity, efficiency, profit, quality, absenteeism, job satisfaction, motivation, morality, organizational growth, and market share. By referring to documentation complied on performance of an organization, Venkatraman and Ramanujam 1986 classify the variables in measuring that performance into three groups: I Financial performance sales growth, profitability andearnings per share. 2 Operational performance market share product
quality, innovation and intrtduction and new products, marketing effectiveness, added manufacturing value, and technical efficiency; and 3 Organizational performance inclusive of those two performances described above, consideration of stakeboiders, resolution of various conflicting objectives in a mutual mission, and satisfaction of the objectives of stakeholders. In research of performance of an organization relates also to the field of general management face certain problems, including the absence of a consistent standard for performance comparison, difficulties in a confinnation of tbe consequences between the topic of study and tbe objective fmanciai pertortnance figures, the failure to access correct fmanciai information, free of window dressing or manipulation by surplus. Some experts propose the use of subjective performance standards e.gthe subjective recognition or feeling of those interviewed as the index of scale Covin et al., 1990; Delaney and Huselid, 1996 Ⅲ. Analysis of Empirical Results
1. Results and Discussions
1 Importance of Addressing Internal Marketing in the Service Sector. According to Lovelock 1996. the service sector features highly intensive contact with customers, and the quality of service achieved relies entirely on the impression the customers have ofthe service person employee delivered during the course of providing service Zeithamal and Bitner. 2000. Therefore, experts believe that the organizational
enterprise must make job satisfaction the focus for its internal employees George, 1990 before injecting customer-oriented service commitments into the circumstance/ joh description/job expectation Gronroos, 1985; Heskett. 1987. Before such service employees can he well prepared and achieve sound professional service techniques and competence Cooper and Cronin, 2000; Rafiq and Ahmed, 2X0. Management in the service sector should emphasize the concept and hands-on approach of internal marketing. The international tourism industry is a representative industry, having highly intensive contact with customers. Thus, the importance of introducing into management philosophy both related and feasible measures of internal marketing cannot be overstated.
2 Verification of Hypotheses Empirical results from this study linear structure model analysis strongly support all the hypotheses, namely that internal marketing has positive impacts on employee job satisfaction; and that employee job satisfaction and internal marketing both have positive impacts on performance of an organization. There was correlation among all the concepts defined in the hypothetical mode ofthe study, and that correlation attained a significant level and excellent good of fitness.
2. Management Implications and Contributions
The contributions ofthe study to management theory and its implications for practicalmanagement application are summarized as
follows;1 Literature review and an empirical research method were the bases for logical inference from the variables variants of this study. Statistic analysis highly supported the empirical results of the study and would be a suitable reference for subsequent research of topics linked to internal marketing. 2 Through the examination of the correlations among internal marketing, employee job satisfaction, and organizational performance, the intermediate mode, i.e. the relationship of employee job satisfaction to internal marketing and operation performance, as presented by this study can also be a valuable reference in any subsequent studies. 3Service persons employees are the most important resource in the service sector and also the primary marketers who deliver excellent service to the customer. In addition, the service person helps achieve that customer satisfaction, and upgrades the entire pertbmiance ofthe enterprise. Therefore, management should be aggressively engaged in internal marketing to arrive at a synergy of satisfied employees and upgraded organizational performance.
(1)把员工作为内部客户来对待。许多专家(Sasser和Arbeit 1976;贝里,1981;格林等 l994;卡希尔1996; Hultet 2000)认为,内部营销的任务就是把就业作为产品,并且把员工作为顾客来对待。
(2)发展员工多为客户着想。皮尔西和摩根(1991)把营销技巧应用在一个公司内部。他们认为,公司应该把内部市场作为目标,并采用类似框架的对外行销并制定营销计划,这样做的目的是为了促进员工的服务意识并以客户为导向。许多其他专家分享同样的观点(格罗鲁1985;赫斯克特l987;格罗鲁1994; Plefferand韦加1999;导管和Mavondo 2001)。
一直从197O介绍的以来,衡量一个组织的绩效要有较为全面的观点。坎贝尔(1977)所建议的指数包括一般性能,生产力,效率,效益,质量,旷工,工作满意度,动机,道德,组织成长和市场份额。Venkatraman 和Ramanujam(1986)通过一个组织性能符合文件,把分类衡量的表现分为三个变量组:(一)财务绩效(销售增长,每股盈利);(2)经营绩效(市场占有率的产品质量,创新和新产品,营销的效果,增加产品附加值和技术效率);(3)组织性能(如上所述,包括这两个表演审议各种冲突的决议,相互的任务目标,以及对利益相关者的目标满意)。一个组织性能的研究还涉及到管理面临一些问题,包括缺乏一致的标准性能对比。一些专家们提出了主观标准的使用性能,如主观受访者承认或感觉,规模指数(Covin等1990;德莱尼和Huselid 1996)。
(1)内部营销在服务部门的重要性。据洛夫洛克(1996),服务业的特点是客户的高度密集和所取得的服务质量完全靠印象,客户服务人员(员工)在交付过程中提供服务(Zeithamal和比特纳 2000)。因此,专家认为,组织层必须把内部员工工作满意度作为重点(乔治 1990年),在此之前注入的情况下以客户为导向的服务承诺/约描述/工作的期望(格罗鲁1985;赫斯克特1987)。他的员工在这类服务之前可以做好准备,实现技术的完善和专业服务能力的提高(Cooper和乐年2000;拉菲克和艾哈迈德)。服务行业的管理应强调内部营销的概念和实际操作的方法。国际旅游行业是一个代表性的行业,拥有与客户的高