Human resource issues (A REPORT) Essay Example | Topics and Well Written Essays - 2000 words

Human resource issues (A REPORT) - Essay Example Organizations that display this commitment are also characterised by a distinct culture of service leadership and role modelling by top management. It is probably more difficult for competitors to duplicate high performance human assets than any other corporate resource. In both the industry, the way service is delivered by this human resource can be important source of differentiation as well as competitive advantage. In addition, the strength of the customer/frontline staff relationship is often an important driver of customer loyalty (Bove & Johnson, 2001). Service staff plays a key role in anticipating customers needs, customizing the service delivery, and building personalized relationships with customers with ultimately lead to customer loyalty. Highly motivated employees remain at the core of service excellence and becoming a key variable for creating and maintaining competitive positioning and advantage (Hemp, 2002). The important impact of service staff on customer loyalty w as integrated and formalized by James Heskett and his colleagues (1994) in their research on the service-profit chain. The authors demonstrate the chain of relationships between; Unlike manufacturing, all the service staff in hospitality or retail industry remains in continuous contact with customers and Schneider & Bowen (1993) shows that employee satisfaction and customer satisfaction are highly correlated. Organisations have opted various HR tools and practices over the year to attain the success. Attractive compensation packages are used to attract good quality staff. Broadened job designs are accompanied by training and empowerment practices that allow frontline staff to control quality. With more focussed recruitment, more intensive training, and better wages, employees are likely to be happier in their work and to provide higher quality, customer pleasing service. Regular customers also appreciated the continuity in service relations resulting in lower