Improving Employee Satisfaction Priority through Performance Control Matrix

Chen, Shun-Hsing; Chen, Ming-Che

doi:10.22034/2014.3.04

Improving Employee Satisfaction Priority through Performance Control Matrix

Document Type : Research Paper

Authors

Shun-Hsing Chen ¹
Ming-Che Chen ²

¹ Yu-Da of Science and Technology University, Taiwan

² Chung Yuan Christian University, Taoyuan, Taiwan

10.22034/2014.3.04

Abstract

The study addresses Performance Control Matrix (PCM) to determine service quality items of priority for improvement. Most businesses focus on customer satisfaction when undertaking surveys of satisfaction and dissatisfaction, while generally neglecting employee satisfaction. Therefore, this study develops an integrated model to improve service quality in Taiwanese finance industry employees. A questionnaire is designed to determine the priority of improvement objectives derived from certain questionnaire items that fall into the improvement zone of the PCM. Ten items are found to fall into the improvement zone of the PCM. The present results show that the finance industry employees surveyed in Taiwan were dissatisfied with their job security, salaries, annual bonus, and fair distribution of operational profits. The ten improvement items mostly belong to two dimensions - ‘Pay and Benefits’ and ‘Motivation’. The managers of the financial institutions should seek to improve these quality attributes by devoting more resources to these items, thus promoting employee satisfaction.

Keywords

Main Subjects

human resource management for operations

References

Briggs, E. Jaramillo, F. & Noboa, F. (2015). Explicating customer orientation's influence on frontline employee satisfaction. The Service Industries Journal, Vol. 35(3), pp. 133-151.

Chen, S.H. (2009). Establishment of a performance-evaluation model for service quality in the banking industry, The Service Industries Journal, Vol. 29(2), pp. 235–247.

Chen, S.H. Yang, C.C. Shiau, J.Y. & Wang, H.H. (2006). The development of an employee satisfaction model for higher education, The TQM Magazine, Vol. 18(5), pp. 484-500.

Chen, S.H. Yang, C.C. Lin, W.T. & Yeh, T.M. (2007). Service quality attributes determine improvement priority, The TQM Magazine, Vol. 19(2), pp. 162-175.

Comm, C.L. & Mathaisel, D.F.X. (2000). Assessing employee satisfaction in service firms: an example in high education, The Journal of Business and Economic Studies, Fairfield, Spring, pp. 43-53.

Deng, W.J. (2007). Using a revised importance–performance analysis approach: The case of Taiwanese hot springs tourism, Tourism Management, Vol. 28, pp.1274–1284.

Decramer, A. Smolders, C. & Vanderstraeten, A. (2013). Employee performance management culture and system features in higher education: relationship with employee performance management satisfaction. The International Journal of Human Resource Management, Vol. 24(2), pp. 352-371.

Enright, M. J., & Newton, J. (2004). Tourism destination competitiveness: A quantitative approach. Tourism Management, Vol. 25(6), pp. 777–788.

Feng, M. Mangan, J. Wong, C. Xu, M. & Lalwani, C. (2014). Investigating the different approaches to importance–performance analysis. The Service Industries Journal, Vol. 34(12), pp. 1021-1041.

Gorst, J. Kanji, G. & Wallace, W. (1998). Providing customer satisfaction, Total Quality Management & Business Excellence, Vol. 9(4&5), pp. 100–103.

Hung, Y.H. Huang M.L. & Chen K.S. (2003). Service quality evaluation by service quality performance matrix, Total Quality Management & Business Excellence, Vol. 14(1), pp. 79-89.

Homburg, C. & Stock, R. (2005). Exploring the conditions under which salesperson work satisfaction can lead to customer satisfaction. Psychology & Marketing, Vol. 22(5), pp. 393–420.

Kaiser, H.F. (1974). An index of factorial simplicity. Psychometrika, Vol. 39, pp. 31–36.

Karatepe, O.M. Yavas, U. & Babakus, E. (2005). Measuring service quality of banks: Scale development and validation, Journal of Retailing and Consumer Services, Vol. 12, pp. 373–83.

Lambert, D. M., & Sharma, A. (1990). A customer-based competitive analysis for logistics decisions. International Journal of Physical Distribution & Logistics Management, Vol. 20(1), pp.17–24.

Lin, W.T. Chen, S.C. Jang, H.F. & Wu, H.H. (2006). Performance evaluation of introducing QS-9000 to the Taiwanese semiconductor industry, International Journal Advance Manufacture Technology, Vol. 27, pp. 1011–1020.

Lee, T.W. (1988). How job dissatisfaction leads to turnover. Journal of Business and Psychology, Vol. 2(3), pp. 263-271.

Martilla, J.A. & James, J.C. (1977). Importance-performance analysis. Journal of Marketing, Vol. 41(1), pp.77-79.

Matzler, K., Fuchs, M., & Schubert, A. K. (2004). Employee satisfaction: Does Kano’s model apply? Total Quality Management & Business Excellence, Vol. 15(9/10), pp. 1179–1198.

Metle, M.K. (2003). The impact of education on attitudes of female government employees, The Journal of Management Development, Vol. 22(7/8), pp. 603-626.

Ministry of Finance in Taiwan, Website. (2014), From http://www.mof.gov.tw/mp.asp?mp=1 retrieved date May 10, 2014.

Montgomery, D.C. (1991). Statistical quality control (2nd ed.). New York: John Wiley and Sons.

Nebeker, D. Busso, L. Werenfels, P.D. Diallo, H. Czekajewski, A. & Ferdman, B. (2001). Airline station performance as a function of employee satisfaction. Journal of Quality Management, Vol. 6, pp. 29-45.

Nunnally, J. C. (1978). Psychometric Theory. New York: McGraw-Hill.

O’Neill, M. A., & Palmer, A. (2004). Importance–performance analysis: a useful tool for directing continuous quality improvement in higher education. Quality Assurance in Education, Vol. 12(1), pp. 39–52.

Parasuraman, A. Zeithaml, V.A. & Berry, L.L. (1988). SERVQUAL: A multiple -item scale for measuring consumer perceptions of service quality. Journal of Retailing, Vol. 64(1), pp. 12-40.

Rafaeli, A. (1989). When cashiers meet customers: An analysis of the role of supermarket cashiers. Academy of Journal of Management, Vol. 30(2), pp. 245-273.

Sampson, S.E. and Showalter, M.J. (1999). The performance-importance response function: Observations and implications. The Service Industries Journal, Vol. 19(3), pp. 1-25.

Tang, C.H. & Lee, J.E. (2014). Employee satisfaction and long-run shareholder returns. The Service Industries Journal, Vol. 34(14), pp. 1167-1183.

Yang, C.C. (2005). The Refined Kano’s Model and its Application. Total Quality Management & Business Excellence, Vol. 16(10), pp. 1127–1137.

Yang, C.C. (2007). A systems approach to service development in a concurrent engineering environment. The Service Industries Journal, Vol. 27(5), pp. 635-652.

Yang, K.J. & Chen, S.H. (2010). The comparison and analysis of employee satisfaction improvement in the hot spring and financial industries. African Journal of Business Management, Vol. 4(8), pp. 1619-1628.

Yavas, U. & Yasin., M.M. (2001). Enhancing organizational performance in banks: systematic approach. Journal of Asia-Pacific Business, Vol. 4(4), pp. 444-453.