EMPLYEE EMPOWERMENT AND CUSTOMER ORIENTATION : EFFECTS ON WORKERS’ ATTITUDES IN RESTAURANTS ORGANIZATION

1. EMPLYEE EMPOWERMENT AND CUSTOMER ORIENTATION :
EFFECTS ON WORKERS’ ATTITUDES IN RESTAURANTS
ORGANIZATION
Gabriel Gazzoli ; Murat Hancer & Yumi Park (2012)
International Journal of Hospitality & Tourism Administration
SUTINI
Batch 6
1263620054
Human Resources
Management in Hospitality &
Tourism
Prof. Syamsir Abduh

2. Contents
Conclusion and Implication
Finding
Methodology
Literature Review
Introduction

3. INTRODUCTION
Employee Empowerment and Customer Orientation:
It is widely documented that employee well-being, customer
satisfaction, customer orientation, and empowerment are pivotal
elements in determining the success of any organization
As employees and customers become the centerpiece of
organization with different, needs, wants, and demands. Firms
must establish customer-oriented strategies and develop
customer-oriented employees who are capable of and empowered
to provide excellent service to the patrons.

4. INTRODUCTION
According to previous research customer-oriented employee
influence the level of their customers’ satisfaction and
commitment to the firm.(Kim & Ok,2010; Hennig-Thurau,2004)
Additionally, research has suggested that customer-oriented
employees have more positive attitudes towards their jobs
than service workers showing lower levels of CO ((Donavan,
Brown, & Bowen, 2004)
There for, CO is an imprtant element in organizationl success; and
organizations that focusnon and are able to improve employee CO
may be able to outperform those that do not (Kim & Ok, 2010;
Donavan et al., 2004)

5. INTRODUCTION
Employee Empowerment is one of those processes and
controls embedded in a customer-oriented strategy
(Hartline et al., 2000; Kotler, Bowen, & Mackens, 2006).
Empowerment is also viewed as an important aspect of
managerial practice leading to improved individual and
organizational performance (Fulford & Enz, 1995;
Bowen & Lawler, 1992; hancer & George, 2003)

6.  The Management literature reflects two views of Customer Oriented :
 The first drawn from Marketing Orientation. MO its self has been
presented from several different perspectives including :
a) Marketing Intelligence (Kohli & Jaworksi, 1990)
b) Culural Behaviour (Narver & Slater, 1990)
c) Customer Perspective ( Deshphande et al., 1993)
 The Second view of Customer Oriented focuses on the individual
level of analysis: The service worker themselves. This research
stream is represented by the pioneering work of Saxe and Weitz (
1982) who developed a two-dimensional SOCO scale (selling –
orientation-customer orientation) and found avidence that selling -
oriented/customer-oriented employees had a significant impact on a
salespersons performance.
CUSTOMER ORIENTED
LITERATURE REVIEW

7. …LITERATURE REVIEW
Lee and Koh (2001) suggested that the theory of
empowerment has been presented in two different
ways:
EMPOWERMENT AND ITS RELATIONSHIP WITH CO
The first incorporates the “behaviour of supervisor” as a driving
force to empower employee.
 The second view , the “ psychological state of a sub ordinate” is
the major force behind feelings of empowerment.
This conceptualization is also known as psychological empowerment,
which is defined as an experience of being empowered (Barnes, 2006)

8. LITERATURE REVIEW
EMPOWERMENT AND ITS RELATIONSHIP WITH CO
Few studies have tried to identify the relationship between
empowerment and CO. Peccei and Rosenthal (2001), had
attempted to investigate the impact of organizational initiatives
such as management behaviour, job design, and training have on
employee empowerment and the effect of empowerment on
customer oriented behaviour (COBEH).
Their study conceptualized empowerment using three variables:
a. Internalization of service excellence
b. Job competence
c. Job autonomy
Their results showed that COBEH was affected by empowerment,
which in turn was affected by organizational initiatives.

9. METHODOLOGY

10. METHODOLOGY
variable :
Employee of the
restaurant
as the independe
nt variable and a
number of
dependent
variables
.
These were
followed by
probing open-
ended questions
to
answer the "why
question.
derive descriptive
statistics to
characterize the
demographics of
customer-contact
employees

11. FINDINGS AND DISCUSSION
The data
represents
statistically.
There were
1,308
respondents
participated in
the study
There are
92,4% of the
respondents
were line level
employees, 5,2
held entry-level
managerial
jobs.
All measurment
items were
analyzed for
reability and
validity
purposes.

12. …FINDINGS AND DISCUSSION
After an explanatory factor analysis, the empowerment construct showed three factors:
Empowerment Factor 1: Meaning (a =873); Empowrment Factor 2; Self-Efficacy (a=782);
and Empowerment Factor 3: Influence (a=859). The result shows three empowerment
dimensions that, while different from those in Spreitzer (1992), are consistent with the
findings of Fulford and Enz (1995). There for, they renamed their empowerment factors
after those detailed in Fulford and Enz (1995)
The CO construct consisted of 13 items and their factor analysis show four factors. CO
Factor 1: Need to pamper the guest (a=910); CO Factor 2: Need to read the customer’s
needs (a=849); CO Factor 3: Need to deliver (a=827) and CO Factor 4: Need for personal
relationship (a=801) These dimensions are consistent with those in the work of Donavan et
al. (2004). However, one item each from CO Factor 2 and CO Factor 4 were deleted due to
low factor loadings.
Empowerment
Customer Oriented

13. …FINDINGS AND DISCUSSION
We use a single-item indicator for global job
satisfaction measurement. The measurement error of
this single item was set to 0 prior to estimating the
measurement model due to potential identification
problems. (Yoon, Beatty, & Suh, 2001)
The job involvement construct included five items. A
reliability test indicated that the Cronbach’s coefficient
alpha of this construct is acceptable ( a=906)
Job Satisfaction
Job Involvement

14. …FINDINGS AND DISCUSSION
The organizational commitment constract included
three items. As a result of a reliability test. The
Cronbach’s coefficient alpha of this construct is 848.
The high construct Reliability (CR) of their model
provides evidence of internal consistency:
Empowerment (CR= 93); CO (CR=0,97), Job Involvement
(CR=0,94); and Organizational Commitment (CR=92);
Empowerment (average variance extrected (AVE)= 54);
CO (AVE=81); Job involvement (AVE=66) and
Organizational commitment (AVE=71)
Organization Commitment

15. …FINDINGS AND DISCUSSION
The empowerment constructs fits the data well
because indicators of model fit such as GFI,
the AGFI, the NFI, the CF are, 975, ,944, ,975,
,993, and , 993 respectively. The RMR was ,045
and the RMSEA was ,035, respectively.
Empowerment
Result of the analysis :

16. …FINDINGS AND DISCUSSION
The Customer Oriented construct fits the data well.
The GFI, AGFI, NFI, IFI and CFI has scored of ,987, ,954,
,984, ,997, and 997 respectively. And RMR and the
RMSEA had a score of ,052 and ,029, respectively. The
Customer Oriented measurement model is good.
Customer Oriented
Result of the analysis :

17. …FINDINGS AND DISCUSSION
The Job involvement construct fits the data
well. The indicators of GFI, AGFI, NFI, and CFI
are .993, .963, .995, .998, and .998 respectively.
Also the indicators of RMR and RMSEA are .038
and .052, respectively. Therefore, the
measurement model is also good.
Job Involvement
Result of the analysis :

18. CONCLUSION
The purpose of this study was to test a proposed
model suggesting the benefits that restaurant
may reap by having a customer-oriented culture
that is driven by empowerment and customer
oriented worker.
The role of empowerment plays inraising workers’
level of CO, and the effects of heightened worker
CO on three very important job related worker
attitudes, including job satifaction, organizational
commitement and job involvement.

19. ...CONCLUSION
Analysis of this study has shown that the
empowerment exerts a positive and direct effect
on employees’ CO.
The result also show that workers’ CO exerts
positive and direct effects on job satisfaction and
organizational commitment, and job satisfaction
mediates the relationship between CO and
commitment.

20. ...CONCLUSION
This study has also advanced CO theory by
proving that higher levels of worker CO result in
higher levels of worker job involvement.
Therefore, workers who have high levels of CO
will also have positive organizational attitudes.
In industry in which turnover rates have reached
83% for full-service operation (Ebbin, 2000) and
has typically exceeded 120% in quick-service
restaurants (Tracey & Hinkin, 2006), a customer-
oriented strategy through empowerment with the
addition of customer oriented workers may play
big role in reducing this astonishing numbers.

21. ...CONCLUSION
The benefits of having customer-oriented
employees may go well beyond employee
attitudes towards their job and human resources
implication.
The CO construct ties in with the service-profit chain
model (Heskett et al., 1997) which states that employee
satisfaction lead to delivery of superior service to
customers which in turn affects customer satisfaction,
loyalty and profitability of the firm.

22. Thank You
SUTINI
Batch 6
1263620054