Employee and Customer Management Processes for Profitability - the Case of Hewlett-Packard India

By Jauhari, Vinnie | Journal of Services Research, April-September 2001 | Go to article overview

Employee and Customer Management Processes for Profitability - the Case of Hewlett-Packard India


Jauhari, Vinnie, Journal of Services Research


This paper attempts to provide an insight into the customer relationship management processes at Hewlett Packard India (HP). The company strongly believes that there is a strong relationship between employee satisfaction, customer satisfaction and market share. This paper attempts to study the employee management processes at HP. It also tries to map the customer management processes at HP. The employee satisfaction processes include the HR initiatives taken within the organization, measures taken by the top management to sustain a suitable climate within which innovation thrives and concern for employee welfare and development becomes extremely important. The customer management processes include creation of databases, managing the call centre, ensuring skill and knowledge upgradation by the engineers and service providers in touch with the end consumer. The organizations should focus on customer loyalty rather than just attempting to achieve customer satisfaction. Customer loyalty in the long run acts as a source of profitability for the firm.

IINTRODUCTION

This paper attempts to map the customer relationship management processes at Hewlett-Packard India. Customer relationship manage ment refers to those processes which aim to build a life long relationship with customers. It is a long term approach concerned with long term profitability. The case study of Hewlett-Packard (HP) has revealed that customer relationship management has number of dimensions rather than just customer satisfaction. This study particularly focuses on the employee satisfaction and customer satisfaction processes initiated at Hewlett-Packard India. The study was conducted by carrying out indepth interviews with the senior managers at Hewlett-Packard including their ex CEO, Mr. Suresh Rajpal.

Hewlett-Packard's operations in India include Delhi based HP India (sales, support & PC configuration), HP India Software Operation and Verifone which has a software R&D lab. HP India employs 240 employees. The software operation employs 1000 employees and Verifone employs 210 employees. The head office of HP is located in New Delhi. The sales and support is offered out of Delhi, Bangalore, Hyderabad, Chennai, Mumbai and Calcutta. In 1994, HP India had achieved sales to the tune of $75.4 million. In 1999, the sales had increased to $231.5 million. It won the CII-Exim Award for Business Excellence (the first company in India to receive the award since its institution). In 1997-98, HP India was declared the number one IT company in India as per the Information Systems Computer World User Opinion Poll. According to Dataquest it was declared the top multinational vendor for the year 1997-98 and the top printer vendor in 1997-98. According to PC Quest it was the winner of User's Choice 2000 for best inkjet and laser printers, scanners and workstations. It was rated at No. 5 in the A&M Marg Poll in the year 1997-98.

RELATIONSHIP BETWEEN EMPLOYEE SATISFACTION, CUSTOMER SATISFACTION & MARKET SHARE

HP's operations in India started in the year 1988 under the leadership of Mr. Suresh Rajpal. According to Suresh Rajpal, the making of an excellent organisation consists of two very important aspects - employee satisfaction and customer satisfaction. Traditionally the literature has pointed out very strongly towards customer satisfaction. However in HP it has been a belief that customer satisfaction is not possible without employee satisfaction. The following paradigm is proposed for growth in the market share.

For an employee to be satisfied, job satisfaction is extremely important. To achieve job satisfaction one must have the right skills and the other factor that becomes important is the satisfaction with the job. If the score on satisfaction with the job and satisfaction with the right skills is high, then it would contribute to an enhanced employee satisfaction. When employee satisfaction is high, the productivity is high and the cost of quality is low. …

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