THE IMPACT OF INTERNAL MARKETING ON JOB SATISFACTION

THE IMPACT OF INTERNAL MARKETING ON JOB SATISFACTION

Abstract

The world is in the phase of swift and dynamic transformation. This transitional shift in business paradigm entails application of modern techniques to conserve resources and attain sustainable competitive advantage over the competitors. Berry et al. (1976) initially introduced the term internal marketing in the literature and suggested that the organizations should treat their employees as their internal customers. The overall objective of the study was to investigate the impact of internal marketing practices on employee job satisfaction. The study was quantitative in nature and time lagged cross sectional data was used to empirically check the proposed relationships. Structured questionnaire was used for collection of primary data. Statistical package for social sciences (SPSS) package 21 was used for all statistical analysis of the data. Front line employees of NADRA in Islamabad and Peshawar were chosen as the sample of the study. Data from the respondents was collected by using simple random sampling method. Simple linear regression was used to check the impact of internal marketing on employees’ job satisfaction. This study envisaged to facilitate HR managers to keep in view the personality traits of their front line employees during selection employment and career planning. Internal Marketing when put in practice would result into satisfied employees with higher levels of organizational loyalty. It would facilitate the future researchers to further dwell on other personality traits moderating role on the relationship of internal marketing and job satisfaction. Other factors like work place environment, team work and managerial control might also be studied under different environments.

CHAPTER 1

1.1. Introduction

            The world is in continuous phase of transformation. This transitional shift in business paradigm entails application of modern techniques to conserve resources and attain sustainable competitive advantage over the competitors. In advance countries the scope of acquisition of technologies is shrinking whereas in third world countries the opportunities are manifold. Pfeffer (1994) suggested that the human resources are the only non-imitable resources that can bring sustainable competitive advantage to a firm. In services industry, front-line employees play critical role to get competitive advantage to their firm by providing excellent services to their customers (Papasolomou-Doukakis, 2003; Parasuraman, Zeithaml & Berry, 1988). It entails that the management at all tiers not only need to ascertain the needs of internal employees but also provide them incentives to ensure unflinching loyalty. The sense of being part of the team would satisfy the employee self-esteem and would radiate brand name in employees.  In order to provide exceptional service the organization considers investment in their brand.Organization views it as a strategic weapon.  (Kim, Kim, & An, 2003; Pappu, Quester, & Cooksey, 2005).It is imperative to understand the modern trends in market, availability of conducive work place with matching personality to provide the best output.Most pursuing personalities create opportunities and mold the work place environment according to their personality and suiting they inspire others with their creative ability. They make a healthy team and radiate energy amongst the team. Most of the personalities have divine blessings. The can polish the attributes with grooming and training. It is their experience that helps them to strive positively in different situations. It is not always that an individual would behave the same way when confronted to a situation or similar to the same situations. Nevertheless, the personality has diverse dimensions. Measuring those dimensions is virtually impossible. For the ease of identification and measurement the personality dimensions are divided into five main categories.

Berry et al. (1976) were the first to introduce the term internal marketing in the literature and suggested organizations to take their employees as their internal customers in true sense. The treatment of employee and customer is at par.Internal marketing is relevant to service operations with enhanced emphasis on service quality in customer based cooperation.Internal Marketing increases the productivity of the employees and in turn we have high standards of customers’ satisfaction which increases earnings. Papasolomou (2003) pointed out that the objective of internal marketing should be creation of motivated and customer caring employees to attain service excellence.  Internal Marketing contributes to higher quality services. The essence of any business is to enhance productivity while maintain long term customer relations. Managers need to create conducive work place environment by implementing internal marketing practices so that the employees have the feeling of being part of the organization.

Many researchers have previously studied the relationship between internal marketing and job satisfaction.It is concluded that there could be three different methods of conductingInternal Marketing for increasing employee motivation levels. As first step organizations motivate employees to improve their performanceand build intimate relationships with both external and internal customers. The next step would be establishment by the, the marketing departments along with its operations are considered as investment instead of expenditure. The Products and Services to employees should be based onmotivating employees for making use of their own services. In addition, relevant literature (Grönroos, 1981, 1990a; Gumesson, 1987a; George, 1990; Berry and Parasuraman, 1991; Ahmed and Rafiq, 1995; Joseph, 1996; Ewing and Caruana, 1999; Lings, 2000) emphasized on overall improvement of service quality by successful implementation of Internal Marketingpractices. While, Leonard Berry’s 1981 has conveyed the same aspect in different way in which he considers that the organizations objectives can be addressed by in a way that the treatment of employees is as an internal customers where in the jobs as treated as internalproducts which fulfill the needs and wants of all such internal customers.In service oriented business every organization is excelling to attain competitive advantage to gain maximum profitability by giving the best to their employees through implementation of internal marketing practices. Emphasis is laid on the front line employees as their constant interaction with the employees make the impact of the organization in positive or negative way. If the front line employees are motivated trained and satisfied they would be able to deliver their best. All these practices are aimed to attain sustainable competitive advantage resulting into long term customer loyalty and profitability. Organizations formulate strategies which home on employee’s satisfaction. The organization structure is tailored to ensure lateral and longitudinal communication. Employees are provided the best working environments not at the work place but at the same time it is endeavored that they are satisfied even after work hours. Benefits like layoffs, rewards career progression, training and bonuses are introduced by the organizations to have loyal employees. In nutshell, it is the personality of the employee which is of paramount importance. It has to be taken into consideration for selection of front line employees. Each personality trait has its own significant dynamics which shall be deliberated in length during the study at appropriate place.

1.2. Problem Definition

Problem definitions give a lead as to why the research is undertaken. What was the driving force which compelled the researcher to undertake a particular research? There has to be a driving force for a particular study termed as the purpose or the aim. In medical sciences the patient goes to the doctor and explains the symptom of the ailment. It is then through diagnostic process the problem is crystallized and only then the solution can be found. Problem definition gives an insight of the previous research work under taken by the previous researchers in the similar domain. It clearly indicates the gap existing in the previous literature and what limitations occurred during the conduct of literature review and what particular fields exists in which the work might be undertaken. It was careful analyses of literature review which explored the gap within the domain of relationship in between internal marketing and job satisfaction. The moderating role of personality was under studied. Going through the problem definition the reader comes to know what the intended research is. The same is prelude to the significance of the study.  Broad variable are stipulated and the relationship of the variables are introduced briefly.

The service industry contributes to an organization with direct relationship of employees and the consumers in a given work place environment. Most of the private and public sector it’s the front line employees which interact with the consumers and the impact of this interaction the perception about the organization is perceived. This perception dictates the type of relationship is expected by the consumer. If the front line employees are equipped with the attributes which in turn attain long term affiliation from the consumer where as the organization attains position of sustainable advantage. In the context of study the service industry in Pakistan shall be studied to ascertain the effect of personality in relation to Internal Marketing and Job Satisfaction. Nowadays the concept of Internal Marketing is not new. Most of the leading organizations the Internal Marketing practices are being implemented either in complete organization or in some of the departments. Irrespective of the fact whether the Internal Marketing practices are being practices in totality or as a whole the effects are being felt by the management. Internal Marketing has direct relationship with job satisfaction but when personality moderates this relationship what are the effects on front line employees.

The study would be beneficial for the managers to hire the right man for the right job at the enrolment stage thus improving organizational HR practices. Internal Marketing practices are fine blend of marketing as well as human resource. It would be imperative to conduct the study in Pakistan’s marketing environment. This study would put environmental dynamics in war trodden area of Khyber Pakhtoon Khwa. 

  1. Research Questions

After spelling out the objectives of the study the researcher has to formulate specific research questions. These research questions then lead to the formulation of hypothesis. Questions formulated should aim to get the response through the analytical process to formulate sustainable conclusions. Research questions should be crisp and comprehensive. The study will try to find out the following questions;

Research Question 1: What is the relationship between internal marketing practices and employee satisfaction?

Significance of the Study

The study is signified after ascertaining the importance of the topic selected vis-à-vis the impact it is likely to drive. Previously many studies have been conducted which have ascertained the impact of personality on job satisfaction or the relationship of internal marketing on job satisfaction. Direct relationships were studied in different environments. At times controlled environments were used for the purpose of the study. Different variables were used by various researchers. After conducting the literature review it was ascertained that there existed gap in literature. No study was found to check the effect of personality on the relationship of Internal Marketing and Job Satisfaction. The study is unique in itself and it would open new vistas for empirical analyses by the researchers in the domain of Human Resource and Marketing. The moderating role of the personality was not studied by any researcher. Internal marketing practices are fine blend of marketing as well as human resource.

This study will help to ascertain the contribution of internal marketing in employee satisfaction and employee performance. This study would ascertain whether the relationship between internal marketing and employee satisfaction can be strengthening by considering specific personality traits or not. The study would focus on services organizations vis-à-vis the employee’s personality traits and its relationships with job performance to accrue ultimate excellence. The results of the study would be beneficial for the managers to hire employees keeping in view their respective personality attributes. The HR managers would be able to develop training programs commensurate with the personality attributes. It would also be beneficial in promotion and incentive planning.

The business environment in Pakistan would allow future researchers to dwell on allied aspects emanating from the research. It would allow genuine effort made by the Pakistani researchers in environment of KP in which the foreigners might not have the access.It is, therefore, necessary to conduct authentic research on the basis of local data that represents true scenario of the local environment. This study will be valuable addition in the body of the literature from the perspective of the developing countries.

Research Objectives

The specific objectives of the study are as follows:

  • To find out the impact of internal marketing on employee satisfaction.

Definition of Study Variables

The variables of the study define the broad contour of the study. Variables emanate from the research model. There are numerous definitions of variable included in the research. It is through careful analyses that the right definition is selected commensuration the purpose of study. Mostly the definitions are derived from the work already done by the previous researchers. The variable selected for the research study includes internal marketing, job satisfaction. Further deliberation of each variable and their mutual relationship shall be studied in next chapter.

  1. Internal Marketing

Internal marketing stresses to focus on the employees as internal customer of the organization so as to obtain their satisfaction which may result in to better performance. This study will define internal marketing as “Internal marketing is a planned effort using a marketing-like approach directed at motivating employees, for implementing and integrating organizational strategies towards customer orientation” (Ahmed & Rafiq, 2002 p. 10).

Employee Job Satisfaction

Employee job satisfaction is defined as “a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences” (Locke. 1976 p. 1304). 

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