Karthik Namasivayam

Human capital in service organizations: identifying value drivers

Purpose – The purpose of this paper is to draw attention to value‐creating processes and their impacts on human capital valuation in high‐contact service industries.Design/methodology/approach – The main argument in this paper is developed from existing theoretical and empirical research in the fields of intellectual capital, organizational behavior, marketing, and economics. This paper is conceptual and the approach adopted is analytical. Extant research and concepts have been used to develop a human capital valuation model in high‐contact service industries and to discuss both research and managerial implications.Findings – Provides conceptual description of a value matrix that can be employed to identify more accurately value drivers of human capital in various industries.Research limitations/implications – The article provides a novel conceptualization of value drivers in industry. A limitation of the paper is that it is conceptual.Practical implications – This paper provides a useful tool to identify...

The customer's role in the service encounter: The effects of control and fairness

Abstract Two key elements of service satisfaction for customers are the perception that they have at least some control or choice and that the service provider is being fair. That notion was tested in a video-based experiment in which 50 subjects watched either a restaurant-based or hotel-based scenario that depicted an employees response to the subjects request for a change in the original order or reservation. In half the scenarios the guests wish was granted and in half; it was not. Whether the request was granted or not, in half the scenarios the employee behaved in a fair fashion (by being considerate, knowledgeable, impartial, and consistent) and in half the employee did not behave fairly. Respondents in the hotel scenarios confirmed the experimental hypothesis by indicating that they would be more satisfied in the scenarios where they had control (that is, ability to make a choice) and even if they did not have a choice, when the employee was fair. In the restaurant scenarios, having some control led to satisfaction, but employee fairness did not counteract a lack of control.

The consumer as “transient employee”

This paper responds to the call for increased attention to the consumers point of view in modeling the service exchange. A novel conceptualization of a service product is presented. Further, extending extant research that conceptualizes consumers as “partial employees”, this paper treats consumers as “transient” employees. Next, drawing on the literatures in human resources, specifically Karaseks job demand‐control model, a theoretical model of consumer satisfaction is developed and presented. Attention is also drawn to a typology of services based on the level of consumer participation. Managerial recommendations are developed and presented on the basis of these arguments.

Accounting for the Joint Effects of the Servicescape and Service Exchange on Consumers’ Satisfaction Evaluations

This study reports the results of a study designed to evaluate the effects of a service exchange on consumers’ satisfaction after accounting for the effects of the servicescape. An experimental design was adopted to show that servicescapes have an effect on individuals’ preexisting mood states. Consumers’ moods after they had been exposed to the servicescape were crossed with two service exchange states: good and bad. Their reported level of satisfaction was measured. Results indicate that servicescapes have an important effect on consumers’ mood states. Direct effects of servicescape type and service exchange are reported and managerial implications discussed.

The Relationship of Work-Family Conflicts and Family-Work Conflict to Job Satisfaction

The issue of work-family conflict has been receiving increased attention in research. This research extends the literature by applying emerging work-family conflict theory in the hospitality industry. The research was done in seven hotels with a primarily Hispanic (91%) workforce. It was found that, expectedly, work-to-family conflict issues were related to lower job satisfaction. It was also found, quite unexpectedly, that family-to-work conflict issues were related to a higher job satisfaction. It is hypothesized that for this group— primarily lower-income Hispanics, work can be seen as a release from family conflict issues.

Gender and demand-based pricing differences in perceived (un)fairness and repatronage intentions.

ABSTRACT Revenue management practices by hotel firms are increasingly coming under scrutiny, partly because of perceived unfairness stemming from variable or demand-based pricing. Under the umbrella of demand based pricing in hotels, the two objectives of the study were to examine gender differences in perceived price fairness and subsequent repurchase intentions. Drawing on previous published research in revenue management, both discount and surplus frames of reference were used in this study. Results show statistically significant differences where females perceived significantly lesser fairness across all pricing scenarios in both discount and surplus frames. However, when it came to repatronage intentions, gender differences were only partially supported. Practical and theoretical implications are discussed.

Examining the application of six sigma in the service exchange

Purpose – This paper aims to explore the role of six sigma in the assembly of service components, during the service exchange. Specifically, it seeks to examine whether applying six sigma principles to customer‐facing processes enhances customer satisfaction.Design/methodology/approach – The paper uses a field study to examine the relationship between conformance with a standardized service assembly process and customer satisfaction. Data were collected over a two‐month period using participant observation at the front desk of a leading hotel, and were analyzed using logistic regression.Findings – The results of the study provide a basis for discussion of the issues associated with applying six sigma to the service assembly process. The results suggest that the application of six sigma to customer‐facing processes does not improve customer satisfaction.Originality/value – Much of the documented success of six sigma has focused on its application to processes with minimum or no customer involvement. In con...

Posttraining self-efficacy, job involvement, and training effectiveness in the hospitality industry.

The current study proposed that in the context of hospitality training (1) posttraining self-efficacy mediates the effects of training acquisition on trainees’ behavioral intentions to apply learning outcomes, and (2) posttraining self-efficacy either fully or partially mediates the effects of job involvement on trainees’ behavioral intentions. Data were collected in a laboratory experiment conducted in the context of self-checkout machines in a university library. The results of a path analysis supported the mediation effects of posttraining self-efficacy on the relationship between training acquisition and trainees’ behavioral intentions. However, the results did not support the mediation effects of posttraining self-efficacy on the relationship between job involvement and trainees’ behavioral intentions. This suggests an independent model of individual and situational factors on training effectiveness in the hospitality industry. After discussing the limitations of the research, the article concludes with managerial implications for hotel managers and directions for future studies.

Employee Preferences for Tipping Systems

Abstract In this paper, a human resource management perspective was adopted to compare and evaluate four different tip systems. Data were collected by means of a between-subjects experiment; two hundred and six individuals were randomly assigned to each of four groups. Participants were first required to read written scenario and then their perceptions of fairness, distributive justice, and perceptions of control were measured. The results indicate significant group differences. Participants rated a modified tipping system tied to sales as the most just, fair, and providing the most autonomy. Implications of the results of this study for theory and practice are discussed.

Repeated Measures Experimentation in Hospitality Research: A Brief Overview

High internal validity and longitudinality of research projects are very important to ensure confidence in the results obtained. Experimental designs are highly recommended to ensure internal validity; repeated measures can aid in designing longitudinal studies. This article illustrates the use of repeated measures experimental design in hospitality research. Methodological implications are discussed.