Mediating Role Of Trust And Commitment On Members †Free Samples

Question: Discuss about the Mediating Role Of Trust And Commitment On Members. Answer: Introduction The purpose of this task is to provide a brief overview of the impact of employee performance on the customer retention in the hospitality industry. In hospitality industry, it is very important for an organization to satisfy the needs of their employees so that they can provide qualified services to the customers in the external market. As this hospitality industry is completely based on the activities initiated by the employees and how they welcome the customer so the independent variable in the case is the performance of employees and the dependent variable is the customer retention. Independent variable refers to the factor which affects the other factor and is not dependent upon any other factor for their working. The independent variable is not dependent on any other factor for their working. The independent variable is not dependent on any other variable for making changes and variations in their activities. Thus, in this case employee performance is independent variable on th e rationale of with customer retention acts. Also it should be noted that employee performance directly affects the customer retention process of the company in the hospitality industry, as if the customer makes a second visit in the same organization then it means that they are satisfied with the services provided by the employees in the company and want to entail it again. But if the employee turnover in the company is high then the customer would not get satisfied next time and will not use the services again. So, this is the problem in the scenario of employee performance and customer retention. Further, the task will discuss regarding the impact of employee performance on customer retention in hospitality industry. The task explains a literature review on both the independent and the dependent factors that are employee performance and the customer retention. Adequate theories support the explanation about the concepts and co-relation with of both the aspects as well. More details about the task are discussed below: Literature review Employee performance (independent variable) Every organization is formed with a view to establish and attain reputation in the target market. These organizational objectives can only be achieved with the help of men, machine, material and money. Among all these resources manpower is the most important resource which helps an organization to work effectively. According to Akah, 2010 as machines are used by manpower to produce goods for the company, and material and money are investment by the manpower to increase the efficiencies of the companies in the external market. Every organization demands the need of highly skilled and efficient manpower to grow their business in the international market as well. Talking about the hospitality industry, it should be noted that the owners or the board members of the company do not visit tourist places with the visitors and enlighten them about the sight scene, but the guide travel with them and help them to gain pleasant experience. Also in the company, employees are face of the organizat ion that interact with the customers in the environment, attract them and ask them to attain the services of the company (Han, Hyun, 2015). So, it is very important for the managers to monitor the performance of the employees and satisfy them so that they can further satisfy the needs of the clients in the organization. Further different employees in the company perform different types of job but all of them are ultimately connected to the production of the company and customer retention process. Thus it is important that employees performance act shall be seriously understood and sincere efforts must be inputted in this direction. If the management of the company will initiate to help the employees to learn, then they will grow and grab the opportunities which will help the company to sustain in the market. As said by Shields, et al., 2015, the hospitality industry is a service industry; initially talking about service industry, it is an industry which do not supply products in the market instead services are provided by them to satisfy the requirements of the customers in the external environment. So, it should be noted that the whole hospitality industry is dependent upon how their employees work in the organization to retain the customers from the market. All depends upon the discretion of the employees only how they greet and treat to the customers in the environment, as all the visitors travel to have a pleasant experience. So, it is important for the companies to provide pleasant experience to the customers while travelling with them for which they need to satisfy the employees needs and motivate them to perform better in the market (Appendices 2). Further in order to maintain the performance of employees, it is very important for the companies present in hospitality services indu stry that they need to stimulate the employees to perform better because people management will significantly impact the performance of the employees (Eid, 2015). Performance management of an organization has significant impact on the performance of the employees. As discussed above, the problem of high employee turnover is leading dissatisfaction among the customers in the environment due to which retaining of customers has become a difficult task. Further, it should also be noted that satisfaction of employees leads to satisfaction of customers in the market so the organization needs to find ways through which they can increase the satisfaction of employees in the organization and retain them (Net Survey, 2017). In the view of Mone, London, 2014 talking about the performance of employees, it should be noted that there are many ways through which their performance can be judged and rectified in the market. Any person raises the standards of their performance in the market only when they receive some additional benefit out of it. So, apart from the gross pay if the employees will get paid for the work which they have done above their job process, then they will gain the sense to work more so that they can earn better. Performance management is the way through the organization can identify the requirements of the employees in the market and satisfy them so that they can further satisfy the requirements of the customers efficiently and retain them in the organization. According to Oki, 2014 performance management method evaluates the performance of the employees and provides them monetary and non-monetary benefits accordingly which motivates the employees to improve their performance. This meth od also helps the organization in seeking the issues related to the job of the employees and solve to earn customer satisfaction. The gap analysis is a part of the performance appraisal plan which helps and organization to identify the gap in the growth of the organization and rectify them (Appendices 1). Also the performance appraisal method provides clear objectives to the employees in the organization on which they have to work. Further there are many aspects which influence the performance behavior of employees in the organization like, workplace environment, pay scale of employees, equality in the organization. The theory of X and Y successfully measures the performance of the employees in the organization. This theory was developed by Douglas McGrgor in the late 1960s. The theory describes two different attitudes toward the workforce motivation. It was assumed that the companies follow one of these approaches. The theory X approach says that the management of the organization feels that the employee is lazy and avoids working for the betterment of the organization. Due to which the managerial team becomes obliged to closely supervise the task performed by them and control their activities as well. The companies under this process follow a hierarchical structure with narrow span of control at each level for the efficient and effective employees. The theory X suggests that the employees have the capabilities to work and perform better they will show a little interest in the activities of the organization (Cascio, 2018). The managers who get influenced by the theory X says that, at the end th ere is one person who is to be blamed for the incompetency of the company. The managers in this case show the pessimist view for the employees as they believe that most of the employees in an uninterested way in the organization and the higher authority need to regularly check their work order to improve their performance in the organization. Under the theory Y, the managers assume that the employees of their company are very ambitious and dedicated towards their company. The employees work with great responsibility and they have a sense of self control and self-direction within them. Under this case the managers show full trust on their employees believe that they do not need to regular monitor their growth is they are self-insisted to grow and expand. The employers in this case says that if the employees will get right conditions to work and strong motivation then it will increase their satisfaction which will subsequently positively affect their performance as well. The managers try to remove the barriers and provide pleasant environment to the employees to work (Cascio, 2018). Thus, Theory Y is a positive side of growth of growth of the employee performance in an organization. Customer retention (dependent variable) Customer retention is defined as the activities and actions that are taken by corporations in order to improve the number of loyal customers who prefer to buy or use products or services of the company. According to Roberts-Lombard (2011), the primary objective of customer retention program focuses on assisting organisations in order to retain as many customers as possible. The firms use customer loyalty and brand loyalty initiative to increase the number of loyal customers. The practices or actions for customer retention starts right after the first contact a consumer has with the corporation. The process of customer retention continues throughout the lifetime of the relationship which exists between the customer and the organisation. Roberts-Lombard (2011) stated that in this process, the corporations sell products to consumers who already have a relationship with the firm which is an effective way of growing companys revenues since the enterprise does not have to educate, attract and convert new customers. In case of the hospitality industry, organisations receive a number of benefits because of customer retention such as increased sales, brand loyalty, easy market capitalisation and others. The marketing cost of hospitality companies reduces due to effective customer retention since they advertise their products or services to consumers who already have expressed interest in the firms services. IBOJO (2015) mentioned that the engagement of customers with the brand assists organisations in capitalising on their experiences with the firm. Customer retention also assists in sustaining a companys future growth since it assists organisations in maintaining a competitive advantage over competitors due to consumer loyalty which also leads to adding new customers. In recent years, corporations in hospitality sector focus on customer retention since many studies have proven its effectiveness. Eid (2015) depicted that the consumer profitability tends to increase for companies that have a high number of customer retained since the management focuses on implementing appropriate strategies and firms resources towards effective customer retention. In order to improve customer retention, organisations focus on setting customer expectation to eliminate uncertainty regarding firms products or services. As per Eid (2015), the hospitality companies have to become customers trusted advisor that builds trust and loyalty in their relationship. Organisations are required to take a proactive approach to eliminate problems before they occur which makes the consumer experience personal which resulted in strengthen the bond between them. In the process of customer retention, employees play a crucial role. The senior level management did not interact on a regular basis with consumers; they implement policies which are required to be followed by employees in order to improve customer retention. Han Hyun (2015) provided that the employees who work face-to-face with consumers are able to determine their level of satisfaction which assists in keeping them with the corporation and preventing them from looking anywhere else. Employees who deal directly with customers required to meet customer needs and fulfil their requirements in order to improve customer retention rates. Employees influence the business environment positively by analysing the way in which they deal with the consumers. As per Han Hyun (2015), they perform the activities of performance building and representing the products which lead to increasing customer retention in a firm. In order to maintain consumer trust and commitment in firms products and services, corporations are required to implement policies of relationship marketing. More specifically, hospitality organisation can implement the Commitment-Trust Theory of relationship marketing in order to improve customer retention. According to Hashim Tan (2015), the theory provides that there are two fundamental factors which contribute to customer retention, trust and commitment. The theory provides that corporations should focus on fulfilling consumers demands and honouring their commitments towards them. Instead of focusing on short-term profits, the enterprises should implement the principles of trust and commitment which sustains their future growth. Hashim Tan (2015) provided that Trust is defined as the confidence which both parties have a relationship that the other party wont take any harmful actions against the interest of a party. Commitment is referred as a long-term desire to maintain a valu ed and fulfilling relationship. Wang, Wang Liu (2016) stated that organisations focus on maintaining the trust and commitment in their relationship with customers since it increases their loyal towards the brand which contributes to customer retention. In the hospitality industry, the mutual loyalty allows both parties to fulfil their needs since the consumers get services as per their requirements and companies increase their profits due to customer retention. In the hospitality industry, the implementation of Commitment-Trust theory is suitable since the customers are looking for high-quality services for their preferred brands. Leeman Reynolds (2012) mentioned that the firms are required to focus on the requirements and demands of customers in order to ensure that they provide them a positive experience. Customer satisfaction is a key focus for companies in the hospitality industry since it resulted in increasing their profitability and brand value. The customers prefer to recommend and select the services of a hospitality company that provide effective services to its customers. Customer retention is a dependent variable since it is affected by a number of factors which are not in control of the enterprises. The factors which are in control of companies include employee performance, effective customer-oriented policies and others. In the hospitality industry, employees play a crucial role in providing high-quality services to customers . Employees deal with various requirements and demands of customers, and they can provide high-quality services to them in order to ensure that they are satisfied with the company. Therefore, the establishment of commitment and trust between employees is critical to the success of an enterprise in the hospitality industry since it leads to increasing customer retention. As per Sashi (2012), with the popularity of social media and online services, it has become easier for customers to rate and provide their feedback regarding a companys services which encourage other customers to select the services of the firm as well. Therefore, effective services of employees resulted in increasing customer retention which provides corporations a positive brand image which increases their profits. The co relation between employee performance and customer retention There is a significant co-relation between the independent variable (employee performance) and the dependent variable (customer retention) in the hospitality industry. As discussed above, the Commitment-Trust theory assists organisations in increasing their customer retention rate by establishing mutual loyalty between customers and the firm. The theory provides the importance of customer satisfaction in order to improve customer retention rates. The hospitality industry, the satisfaction of customers, is directly influenced by the performance of employees. According to Arnold, Fang Palmatier (2011), effective performance resulted in fulfilling the requirements and demands of customers which increase their satisfaction level. Therefore, it can be stated that there is a substantial impact of employee performance on customer retention because there is a co-relation between them. As compared between the 4M of the hospitality industry, manpower is most important since employees directly deal with customers in order to provide them high-quality services and fulfil their demands. As per Yee, Yeung Cheng (2010), in the hospitality industry, the employees directly interact with customers; therefore, their performance has a direct influence on customer retention. The customer retention rate increases if the performance of employees is effective. In the hospitality industry, the customers are looking for high-quality services from companies in order to ensure that they remain comfortable and relaxed during their vacation or business meetings. Effective services from employees establish a positive relationship between company and customers. Different factors influence the performance of employees such as job dissatisfaction, work stress, heavy workload, disputes and others. Yi, Nataraajan Gong (2011) stated that the corporations are requiring evaluating these factors and implementing appropriate theories to address these issues. After addressing these factors, the employees are able to improve their performance which leads to higher customer satisfaction rates. As per the Commitment-Trust theory, it is necessary that a level of trust is established between employee and customer which can be achieved by their effective commitment. Therefore, companies in the hospitality industry should focus on improving employee performance since it directly influences customer retention. Conclusion Thus, in the limelight of above mentioned events it should be noted that both the process employee performance and customer retention are interlinked to each other but the employee performance is the independent variable whereas customer retention is the dependent variable. The employee performance is also affected through many aspects which are discussed in the above mentioned task and the customer retention is directly linked with employee performance. When the employee will attain satisfaction then they will perform efficiently and when the employees will perform efficiently then the customers will gain satisfaction with services of the organization. And if the customers will gain pleasant experience while traveling with the company then they will make repetitive sales for the same organization and hence retention of the customers of the company will be implemented. Thus, it should be noted that it is very important for the organization to satisfy the customers in the organization then only the dependent variable that is the customers will company will gain retention of customers in the organization. Thus, the above mentioned task explains the literature review on employee performance and customer satisfaction with specific theory and co relation between them. The report justifies the requirements of the task. References Akah, N. W. (2010). Employee Motivation and Performance: Ultimate Companion Limited. Douala-Cameroon, Masters Degree Dissertation, Mikkeli University of Applied Science. 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