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Production and Operations Management 2003

EMPLOYEE DEVELOPMENT: AN EXAMINATION OF SERVICE STRATEGY IN A HIGH‐CONTACT SERVICE ENVIRONMENT

Susan Meyer Goldstein1,2

1 Washington University in St. Louis · 2 Bethel University

Abstract

A critical component of service strategy in high‐contact environments is service encounter management. Effective service encounters are a result of the quality of employee development, including systems for work and job design, training and development, and attention to employee well being. Results of empirical analysis indicate that service strategies reflecting the dimensions of employee development drive employee outcomes such as productivity and satisfaction. Employee outcomes are significantly associated with customer satisfaction, but only some linkages to financial performance are significant. This study illustrates the importance of employee development in service strategy design for managing service encounters in high contact service environments.

DOI
10.1111/j.1937-5956.2003.tb00500.x
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