How does transformational leadership affect customer satisfaction?
Introduction In recent years, the concept of leadership focuses more on transformational leadership, which is a contemporary view of leadership (Bass, 1985). Also, Employee empowerment becomes one of the leadership issues in the 21 century. From the previous studies, it is found that transformational leadership is associated with employee empowerment, whereas the association between employee empowerment and customer satisfaction is significant. However, few researches have been done to analyze the relationship between transformational leadership and customer satisfaction. In this paper, a mediation model is used to analyze how transformational leadership influences
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As customers are now more knowledgeable, their demands are changing quickly and they become more and more demanding towards the organizations in terms of their customer service (Moore, Hopkins and Hopkins, 1998). Therefore, the attitudes and behaviors of employees who have frequent and intense interpersonal contacts with customers are important to achieve customer satisfaction. It is believed that the responses of customer contact employees affect customers’ perceptions towards service quality. Customers are usually more satisfied with the services if the customer contact employees have the ability and eagerness to help solving customers’ problem. It is proposed that customer contact employees will be more able to increase customer satisfaction if they are given more control over the service encounter and hence positively affects customers’
perceptions of service quality (Chebat and Kollias, 2000).
In fact, many studies pointed out that there is positive relationship between employee empowerment and customer satisfaction. Customer satisfaction of the organization is increased by empowering its employees. A major element of empowerment is to give employees authority. Granting them power to make decision and autonomy to accomplish their task so as to bring desired outcomes. According to Chebat and Kollias (2000), employee empowerment would lead to a higher level of contact employee adaptability and
In the paradigm of management, empowerment is viewed as losing authority and control over people and resources. Generally, people resent being driven, controlled and being seen as part of company equipment. This breeds apathy in employees towards the organisation’s intents in the market place and destroys accountability.
The customer service personnel should be in a position to acknowledge their clients and pay attention well to whatever they say and put into practice active listening. They should also give a chance to the customers to respond to the services the company offers perhaps through the enterprise’s website. For any company to prosper, good customer relation is paramount in building a loyal
Capital Power is an independent power producer, based in Edmonton, Alberta, but with operations across North America. It has an aggressive growth strategy with the goal of tripling its
In many ways, empowerment embodies principles effective managers and leaders have practiced for years. Two new driving forces in business, increased diversity and high-speed change, magnify the need for empowerment. Empowering people is now indispensable for effective personal productivity and maximum team success.
Employee empowerment is defined as giving employees a degree of autonomy and responsibility for decision-making. The benefits are
Maslow's hierarchy of needs provides a foundational theory. It states that all employees have some basic needs that must first be satisfied in order to provide the framework for further motivation and empowerment.
According to Hyde (2008), “Culture is determined by how people behave, and the only way to change culture is to change behaviors” (p. 6). A key aspect of changing behavior is enabling (empowering) employees to make decisions and create change within their work scope. By giving employees the power to make changes not only improves their morale, but also benefits the company in which they work by increasing their productivity. According to Marshall, et. Al (2006), “Allowing employees to make decisions increases their job satisfaction and sense of responsibility and translates into improvements in the quality and timeliness with which duties are performed, freeing management for more significant matters” (p. 39). By giving decision making authority to followers, transformation leaders are using what Bass (1991) referred to as psychological empowerment. In other words, empowerment influences follower outcomes.
When it comes to worker empowerment, Chad believes that “all managers should realize no matter what industry, that when you empower your employees and give them greater responsibility you create an environment that gives employees greater job satisfaction. It has been my experience that greater job satisfaction for employees often translates into better production from the employee which is good for the company” (C. D. Cerkoney, Personal Communication, February
The single most important component associated with managing a successful organization, entails the empowerment of employees. People that are empowered are able to make smart decisions without always having to rely on authority, to point them in the right direction. Creating an empowered organization involves interest in the workplace; minimal absence from work, high retention rates; loyal and motivated team members; as well as efficient results and effective communication amongst team members. In the book, The Wonderful Wizard of Oz
Empowerment is a process that increases organizational power by including team working, sharing and solidarity. This relationship is based on trust which is considered as an output of empowerment. Empowerment deals with employees’ cognitive growth which enables them to control their fundamental behaviour towards their work environment. Implementation of empowerment is a holistic reorganization of the way a business thinks and does things (Page,
Employee empowerment is to give workers a greater voice in decisions about work-related matters. Their decision-making authority can range from offering suggestions to exercising veto power over management decisions. The range of decisions could go as far as: how jobs are to be performed, working conditions, company policies, work hours, peer review, and how supervisors are evaluated.
“Generally, employee empowerment comprises an innovative approach to working with people and a shift of power from the top management control to lower level management of an organization” (Ongori & Shunda, 2008, p. 84).
In many companies, operational employees also need information to handle tasks and make decisions that were assigned to supervisors. This trend, called empowerment, gives employees more
Empowerment is the best way to promote a good long-lasting employee-customer relationship (Fragoso, 1999). Empowerment can also bring certain benefits to employees of an organization. It makes the employees give more input to company improvements; it promotes higher productivity, and is a good balance between their personal and professional lives. It exercises employees’ minds to find better solutions to problems on the job and increases the employees’ potential for promotions and job satisfaction. It results in personal growth, feelings of confidence and control in themselves and their companies. It makes workers utilize their potentials and it enables them to stand behind their decisions, assume risks, participate and take actions. It is a win-win-win situation: customers benefit from employees, organization benefit from the employees and the customers, and employees benefit from higher confidence and self-esteem (Fragoso, 1999).
Empowerment is an important tool for progression and FWD needs to exercise it often when expecting employees to work together towards a global objective. Empowerment can be defined as providing employees the chance to exercise autonomy in making decisions (Vogt, 1997), which is rarely implemented at FWD.