An abundance of recent research at the work-unit level of analysis has provided a greater understanding of the relationships between employee attitudes, customer satisfaction and organizational performance. Prior to unit-level analyses, individual-level analyses between employee attitudes and job performance were attempted, but did not identify significant relationships. Although it seems to make intuitive sense that satisfied individuals are productive individuals, research did not support this relationship.

The fact that an individual’s job satisfaction is not always related to that individual’s job performance is not all that surprising and should not be a large concern for organizations. This is because it is arguable whether or not individual performance should be a main focus of management’s attention. For one thing, a number of other variables affect an individual’s performance, such as personal characteristics (e.g., intelligence and conscientiousness) and organizational processes and structure (e.g., enabling vs. disabling work structures and processes). Second of all, organizations are often very interested in bottom-line indices of organizational health, such as revenues generated and profitability, at pertinent aggregated units (e.g., branches of a bank). Of course, there is a place in every organization for individual-level developmental interventions to enhance an employee’s skill-set. However, if a company’s primary interest is on bottom-line figures at aggregated units, then examining how the attitudes and contributions of groups of employees within those units affect these bottom-line figures seems most appropriate. The upshot of this research is that managers can focus on activities that will most enhance employee attitudes and business performance.

In addition to profitability, customer satisfaction and customer loyalty have received extensive coverage in organizational research. Most companies realize it is more difficult to attract and obtain new customers than it is to keep current customers satisfied. Additionally, dissatisfied customers can spread bad news about a company to other existing and potential customers. Therefore, ensuring customers are satisfied and loyal is vital to the success of a business. Linkage research can identify which aspects of customer satisfaction are most important for achieving financial performance and which aspects of employee satisfaction are most important for achieving customer satisfaction.

Stanard’s linkage research approach depends upon whether existing employee and customer data are being used for the study or the employee and customer measurement tools must be developed prior to the linkage analysis. If the measurement tools must be developed prior to the linkage analysis, the study is limited to a cross-sectional research design, and it is not possible to draw conclusions regarding the lagged effects of variables. If years of historical data are available, conclusions regarding lagged effects of variables may be possible. Contact Stanard & Associates, Inc. if you want more information on its ability to provide linkage analyses.

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