Does In-Role Performance Mediate the Relationships between Performance Appraisal, Internal Communication and Customer Satisfaction
Abstract
Palestinian insurance customers are not satisfied. 55% of them changed their companies in 3 years or less. 44% of customers are willing to switch and 30% of customers think that the perceived insurance services are below their expectations. Further, prior literature paid less attention to internal organizational factors contributing to customer satisfaction. This study is aiming to examine the impact of performance appraisal and internal communication on CS. and then test the mediating role of in-role performance between these variables. The findings revealed performance appraisal and internal communication have a direct effect on CS. furthermore, in-role performance plays a partial mediating role performance appraisal and internal communication respectively and CS. based on current study findings, insurance companies in Palestine have to give more attention to develop performance appraisal and internal communication to solve the current problems of CS.Downloads
References
Abdullah, I., & Rashid, Y. (2013). Effect of Personality on Organizational Commitment and Employees’ Performance: Empirical Evidence from Banking Sector of Pakistan. Middle-East Journal of Scientific Research, 17(6), 761-768.
Agbola, R. M., Hemans, S., & Abena, S. (2011). The Effectiveness of Performance Appraisal as a Tool for Enhancing Employee Performance in the Public Health Sector. Global Management Journal, 3(1/2), 81-96.
Aggarwal, A., & Thakur, G. S. M. (2013). Techniques of performance appraisal-a review. International Journal of Engineering and Advanced Technology (IJEAT), 2(3), 2249-8958.
Al-Safeer, A.-I. (2013). Mess in insurance Sector of Palestine, who is responsible? Retrieved 29TH MARCH, 2014, from http://alsafeernews.com/ar/articles/7816.html
Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of marketing research, 14(3), 396-402.
Asad, N. (2014). An Analysis and Assessment of Customer Satisfaction with Service Quality in Insurance Industry in Palestine. Master, Birzeit University.
Bacal, R. (2003). The manager's guide to performance reviews: New York: McGraw Hill.
Bakker, A. B., & Heuven, E. (2006). Emotional dissonance, burnout, and in-role performance among nurses and police officers. International Journal of Stress Management, 13(4), 423.
Balakrishnan, C., & Masthan, D. (2013). Impact of Internal Communication on Employee Engagement–A Study at Delhi International Airport. International Journal of Scientific and Research Publications, 3(8), 1-13.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173-1182.
Besieux, T., Euwema, M., & Vander Elst, T. (2012). Linking Transformational Leadership and Customer Satisfaction: The Mediation of Team Conflict and Team Cohesion. Paper presented at the Intl. Association for Conflict Management, IACM 25th Annual Conference, 1-23.
Bitner, M. J. (1990). Evaluating service encounters: the effects of physical surroundings and employee responses. The Journal of Marketing, 69-82.
Blštáková, J. (2010). Employees' appraisal as an indicator of the quality of human resources management in organizations in Slovakia. Megatrend Review, 7(2), 79-90.
Brown, M., & Heywood, J. S. (2005). Performance appraisal systems: determinants and change. British Journal of Industrial Relations, 43(4), 659-679.
Cantarello, S., Filippini, R., & Nosella, A. (2012). Linking human resource management practices and customer satisfaction on product quality. The International Journal of Human Resource Management, 23(18), 3906-3924.
Chen, X.-P., et al. (2014). Affective Trust in Chinese Leaders Linking Paternalistic Leadership to Employee Performance. Journal of management, 40(3), 796-819.
Coldwell, J. (2001). Characteristics of a good customer satisfaction survey. Customer Relationship Management, New Delhi, Tata McGraw-Hill, 193-199.
Colgate, M. R., & Danaher, P. J. (2000). Implementing a customer relationship strategy: The asymmetric impact of poor versus excellent execution. Journal of the academy of marketing science, 28(3), 375-387.
Deepa, E., Palaniswamy, R., & Kuppusamy, S. (2014). Effect of performance appraisal system in organizational commitment, job satisfaction and productivity. Journal of Contemporary Management Research, 8(1), 72-82.
Deshpande, R., Farley, J. U., & Webster Jr, F. E. (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: a quadrad analysis. The Journal of Marketing, 23-37.
Dusterhoff, C., Cunningham, J. B., & MacGregor, J. N. (2014). The Effects of Performance Rating, Leader–Member Exchange, Perceived Utility, and Organizational Justice on Performance Appraisal Satisfaction: Applying a Moral Judgment Perspective. Journal of Business Ethics, 119(2), 265-273.
Edmondson, A. C., & Nembhard, I. M. (2009). Product development and learning in project teams: The challenges are the benefits. Journal of product innovation management, 26(2), 123-138.
El-Jafari, M., et al. (2003). Palestinian Service Sector and Its Role in Economic Development. Palestine Economic Policy Research Institute, Ramallah, Palestine, 1-10.
Erdil, O., & Gunsel, A. (2007). Relationship between human resource management practices, business strategy fit and firm performance. Journal of Global Strategic Management, 1(1), 97-107.
Fornell, C., & Bookstein, F. L. (1982). Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. Journal of marketing research, 440-452.
Gountas, S., Gountas, J., & Mavondo, F. T. (2014). Exploring the associations between standards for service delivery (organisational culture), co-worker support, self-efficacy, job satisfaction and customer orientation in the real estate industry. Australian Journal of Management, 39(1), 107-126.
Guelman, L., Guillén, M., & Pérez-Marín, A. M. (2012). Random forests for uplift modeling: An insurance customer retention case Modeling and Simulation in Engineering, Economics and Management (pp. 123-133): Springer.
Gurbuz, S., & Mert, I. S. (2011). Impact of the strategic human resource management on organizational performance: evidence from Turkey. The International Journal of Human Resource Management, 22(8), 1803-1822.
Gutek, B. A., et al. (1999). Distinguishing between service relationships and encounters. Journal of applied Psychology, 84(2), 218-233.
Hair, J. F., et al. (2010). Multivariate data analysis: A global perspective (7th ed.): Pearson Prentice Hall, USA.
Hoque, K. (1999). Human resource management and performance in the UK hotel industry. British Journal of Industrial Relations, 37(3), 419-443.
House, R. J. (1996). Path-goal theory of leadership: Lessons, legacy, and a reformulated theory. The Leadership Quarterly, 7(3), 323-352.
Hunt, S. D., & Davis, D. F. (2012). Grounding Supply Chain Management in Resource‐Advantage Theory: In Defense of a Resource‐Based View of the Firm. Journal of Supply Chain Management, 48(2), 14-20.
Kalla, H. K. (2005). Integrated internal communications: a multidisciplinary perspective. Corporate Communications: An International Journal, 10(4), 302-314.
Khan, M. T., Khan, N. A., & Ahmed, S. (2013). The Nature and Impact of Human Resource Management (HRM) Practices (A Review). International Journal of Information, Business and Management, Vol. 5, No.1, 2013, pp. , 5(1), 123-138.
Khurana, S. (2013). Relationship between Service Quality and Customer Satisfaction: An empirical study of Indian Life Insurance Industry. Journal of Research in Marketing, 1(2), 35-42.
Kumari, K., Usmani, S., & Husain, J. (2013). HR Management Practices and Customer Satisfaction: The Mediating Effect of Effective Supply Chain Management Practices. Global Business & Management Research, 5(2), 137-160.
Li, J. J., Wong, I. A., & Kim, W. G. (2016). Effects of psychological contract breach on attitudes and performance: The moderating role of competitive climate. International Journal of Hospitality Management, 55, 1-10.
Liao, H., & Chuang, A. (2004). A multilevel investigation of factors influencing employee service performance and customer outcomes. Academy of Management journal, 47(1), 41-58.
Loo, L.-H., & Beh, L.-S. (2013). The Effectiveness of Strategic Human Resource Management Practices on Firm Performance in the Malaysian Insurance Industry. International Journal of Academic Research in Business & Social Sciences, 3(5), 703-714.
Michael, D. (2003). Inside-Out Marketing: How to Create an Internal Marketing Strategy: London: Kogan.
Naik, C. K., Gantasala, S. B., & Prabhakar, G. V. (2010). Service quality (Servqual) and its effect on customer satisfaction in retailing. European Journal of Social Sciences, 16(2), 231-243.
Namasivayam, K., Guchait, P., & Lei, P. (2014). The influence of leader empowering behaviors and employee psychological empowerment on customer satisfaction. International Journal of Contemporary Hospitality Management, 26(1), 69-84.
Nayyab, H., et al. (2011). The impact of HRM practices on the organizational performance. The study of banking sector in okara, Punjab (Pakistan). Interdisciplinary Journal of Contemporary Research in Business, 3(3), 661-672.
Nehmeh, R. (2009). What is organizational commitment, why should managers want it in their workforce and is there any cost effective way to secure it. Swiss Management Center (SMC) working paper retrieved at www. swissmc. ch( 05/2009).
Nguyen, N., & Leclerc, A. (2011). The effect of service employees' competence on financial institutions' image: benevolence as a moderator variable. Journal of services marketing, 25(5), 349-360.
Nishii, L. H., Lepak, D. P., & Schneider, B. (2008). Employee attributions of the “why” of HR practices: Their effects on employee attitudes and behaviors, and customer satisfaction. Personnel Psychology, 61(3), 503-545.
O'Sullivan, D., & McCallig, J. (2012). Customer satisfaction, earnings and firm value. European journal of marketing, 46(6), 827-843.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1994). Alternative scales for measuring service quality: a comparative assessment based on psychometric and diagnostic criteria. Journal of retailing, 70(3), 201-230.
Park, H. J., et al. (2003). The effect of human resource management practices on Japanese MNC subsidiary performance: a partial mediating model. The International Journal of Human Resource Management, 14(8), 1391-1406.
Quirke, M. B. (2012). Making the connections: using internal communication to turn strategy into action: London: Gower Publishing.
Quresh, T. M., et al. (2010). Do human resource management practices have an impact on financial performance of banks? African Journal of Business Management, 4(7), 1281-1288.
Quzat, A. (2009). Analysis the factors behind the low growth of insurance sector in palestine. Isalmic university - Gaza.
Ray, G., Muhanna, W. A., & Barney, J. B. (2005). Information technology and the performance of the customer service process: a resource-based analysis. MIS quarterly, 625-652.
Reichheld, F. F., & Kenny, D. W. (1990). The hidden advantages of customer retention. Journal of Retail Banking, 12(4), 19-24.
Ridder, J. A. (2004). Organisational communication and supportive employees. Human Resource Management Journal, 14(3), 20-30.
Rogg, K. L., et al. (2001). Human resource practices, organizational climate, and customer satisfaction. Journal of management, 27(4), 431-449.
Rust, R. T., & Zahorik, A. J. (1993). Customer satisfaction, customer retention, and market share. Journal of retailing, 69(2), 193-215.
Shen, J. (2010). Employees' satisfaction with HRM in Chinese privately-owned enterprises. Asia Pacific Business Review, 16(3), 339-354.
Singh, P., & Gupta, S. (2013). Performance Appraisal: Building Trust among Employees or not-the Dilemma Continues. International Journal of Scientific and Research Publications, 3(8), 1-6.
Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. The Journal of Marketing, 63-74.
Steven, A. B., Dong, Y., & Dresner, M. (2012). Linkages between customer service, customer satisfaction and performance in the airline industry: Investigation of non-linearities and moderating effects. Transportation Research Part E: Logistics and Transportation Review, 48(4), 743-754.
Theriou, G. N., & Chatzoglou, P. D. (2009). Exploring the best HRM practices-performance relationship: an empirical approach. Journal of Workplace Learning, 21(8), 614-646.
Tjosvold, D., & Yu, Z.-y. (2004). Goal Interdependence and Applying Abilities for Team In-Role and Extra-Role Performance in China. Group Dynamics: Theory, Research, and Practice, 8(2), 98-111.
Trasorras, R., Weinstein, A., & Abratt, R. (2009). Value, satisfaction, loyalty and retention in professional services. Marketing Intelligence & Planning, 27(5), 615-632.
Ulrich, D. (1997). Measuring human resources: an overview of practice and a prescription for results. Human Resource Management, 36(3), 303-320.
Varela, O. E., & Landis, R. S. (2010). A general structure of job performance: Evidence from two studies. Journal of business and psychology, 25(4), 625-638.
Vazifehdust, H., & Farokhian, S. (2013). Factors influencing customer satisfaction with the success factors identified in the insurance industry. African Journal of Business Management, 7(21), 2026-2032.
Wallace, E., & De Chernatony, L. (2009). Service employee performance: its components and antecedents. Journal of Relationship Marketing, 8(2), 82-102.
Wieseke, J., et al. (2009). The role of leaders in internal marketing. Journal of marketing, 73(2), 123-145.
Wu, M., Huang, X., & Chan, S. C. (2012). The influencing mechanisms of paternalistic leadership in Mainland China. Asia Pacific Business Review, 18(4), 631-648.
Yadav, R. K., & Dabhade, N. (2013). Performance management system in Maharatna Companies (a leading public sector undertaking) of India–a case study of BHEL, Bhopal (MP). International Letters of Social and Humanistic Sciences(04), 49-69.
Zhang, Q., Vonderembse, M. A., & Lim, J.-S. (2003). Manufacturing flexibility: defining and analyzing relationships among competence, capability, and customer satisfaction. Journal of Operations Management, 21(2), 173-191.
Zhang, Q., Vonderembse, M. A., & Lim, J.-S. (2006). Spanning flexibility: supply chain information dissemination drives strategy development and customer satisfaction. Supply Chain Management: An International Journal, 11(5), 390-399.
TRANSFER OF COPYRIGHT
JRBEM is pleased to undertake the publication of your contribution to Journal of Research in Business Economics and Management.
The copyright to this article is transferred to JRBEM(including without limitation, the right to publish the work in whole or in part in any and all forms of media, now or hereafter known) effective if and when the article is accepted for publication thus granting JRBEM all rights for the work so that both parties may be protected from the consequences of unauthorized use.
