Academic journal article Global Business and Management Research: An International Journal

HR Management Practices and Customer Satisfaction: The Mediating Effect of Effective Supply Chain Management Practices

Academic journal article Global Business and Management Research: An International Journal

HR Management Practices and Customer Satisfaction: The Mediating Effect of Effective Supply Chain Management Practices

Article excerpt

Introduction

Globalization, technological advancements, innovations and altering customer's demands and expectations, creates cut throat competition and increase uncertain environment for organizations. Struggle for flexibility is essential for firms to face more ambiguous and rapidly altering atmosphere. In this era of global village, business world has to deal with intense competition from around the world. Where, a firm's human resource is one of the sources of competitive advantage (Becker & Huselid, 1998). Present management distinguished the satisfaction of customer as the main item in business and directs towards enhancing management relationships to achieve firm's success. There is a significant difference between the present business settings from the past, where competition plays an exceptional role (Gilaninia & et al, 2011). Firms should provide immense focus on customer orientation and strengthen relationship with the vendors in order to survive in today's economic competition. (Abbasi, Torkamani, 2010). The satisfaction of customers is the focal point of all marketing and management related practices (Gilaninia & et al, 2011). Leading supervisors acknowledge that through customer satisfaction overall objectives of the firms can be achieved (Seyedi, Moosavi, Heidari, 2009). Due to globalization customer's demanding quality and speedy services have pressurized firms, so that they are unable to administer all functions alone (Heidari Gharehbagh, 2009). The function of HRM for the successful and valuable execution of marketing related strategies has been extremely highlighted in marketing research and so many evidences have been found in literature review of customer satisfaction. Wernerfelt (1984) emphasized that for the successful implementation of all kinds of strategies and policies need the ownership of such resources that are precious, exceptional and hard to duplicate. Undoubtedly it includes the requirement of HRM practices so that the valuable marketing strategies particularly strategies for satisfaction of customer can be implemented in organizations.

With intense rivalry and opposition in the 1990s and formation of global markets, it has become very difficult job for the organizations to deliver products and services to the desired destination at the accurate time along with lowest cost. Companies started to apprehend that enhancing efficiencies within a firm is not enough, but their entire supply chain such as their distributors, their suppliers even their customers should have to perform efficiently and effectively for the success of on organization. Hence, effective SCM happens to be a potentially important way of achieving sustainable competitive advantage and enhancing profitability of a company as competition has extended from just being between firms to whole supply chain.

Literature Review

In today's service economy, the main and important facet in order to attain organizational success is customer happiness. Present competitive business environment lays emphasis to increase the focus on delivering value to satisfy the customer. The spotlight of most organization's in today's world falls upon providing better products and services in contrast to competitors. Along with focus on customer value, organizational environment is seen as being intricate and uncertain (Christopher, 2000; Goldman et al., 1995). In a service industry, the culture of organizations carries potential to influence the satisfaction and happiness of customer as they are having directly contact and interaction with them. By sustaining the difference between the customer and company, workforce has the capabilities to improve core competency by influential customer buying behavior and loyalty (Heskett, Sasser, & Schlesinger, 1997). Thus, it is vital to figure out those organizational practices that create the positive service communications amongst customers and employees.

Human Resource Management Practices and Customer Satisfaction

In organizations, there are also so many other functional areas apart from marketing area such as Human Resource management (HRM) which also focus on the customer satisfaction (CS). …

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