CHAPTER ONE REVIEW OVERVIEW Introduction
Added on 2021-06-08
44 Pages11998 Words166 Views
Leadership ManagementProfessional DevelopmentData Science and Big DataLanguages and CulturePsychology
|
|
|
CHAPTER ONERESEARCH OVERVIEW1.0.Introduction This chapter shows the background of this study, after that problem statement ofthis research is deeply discussed, along with the past paper justifications. Next, the researchobjectives, research questions, the scope of the study, significance, and limitations of thestudy are elaborated.1.1.Background of the StudyIt has been examined that the “service sector” is one of the fastest and largest growingsector within modern world economy, contributing major portion within the total output alongwith the highest employment rate in most of the developed countries and third world countries.However, the developments of businesses worldwide along with the contribution of innovativetechnological elements have funded to the rise of a “service-dominated” economy globally.Moreover, in multiple literatures the “service sector” is underlined as a critical funder inhastening the economic growth and development in third world countries. Formerly, the “servicesector” was measured as an enduring tertiary sector followed by the agricultural sector in severalthird world countries (Gani & Clemes, 2013). Though, during the past era’s, the immensesignificance of the service sector was expressively improved in contrast to the agriculture sectorand industrial sector in numerous states for multiple reasons. Additionally, it has been examinedthat the advancement in the technological elements enables the service sector to incline rapidly(Li et al., 2015).
In many studies it has been analyzed that the total share of “services sector” in GDP is upto 47% in under developed states, whereas, 53.5% in middle income states and almost 72%percent in developed regions. Although, the service sector has been observe for beingresponsible for a noteworthy and growing market share within cross-border trade and FDI whileproviding export chances for the minimum costs for imported services and services suppliers. Inmany researches, it has been claimed that growing trend of “services sector” would carry on,gaining more prominence with the help of progression within the domain of knowledge and skill-oriented actions. It has been claimed in past studies that, for almost 124 states from the year 1970to the year 1980 with upsurge in service sector were able to raise the GDP of economies of allthose states. Economies of all 124 states were observed to shift from agricultural sector toservices sector while, not as much of in industrial sector (Kongsamut, et al., 2001). However, it has been scrutinized in multiple literatures that greater growth within theservices sector leads to higher economic growth. On contrary to this viewpoint, several authorsargued that service sector not only offers larger employment rate but also is broadening theflexibility of taxes. In case of Pakistan, the market growth of service sector is rising in contraryto all other sectors over certain time period. In matter of fact, the rate of growth of “servicessector” is more in comparison with the growth of industrial and sector. “Service sector” has beenexamined to be accountable for 54.5% of GDP of Pakistan and over one-third of totalemployment rate. However, this respective sector has strong connections with many other sectorsas it offers crucial inputs to the sector of agriculture and manufacturing.
Services sector are playinga seriousrole, not only within the developed nations but alsowithin the developing countries like Pakistan yet. The expansion of services sector in Pakistanincreasing steadily and contribute more shares as compare to industrial and agriculture sector.Service sector contributes 55% useful added share tothe generalGDP of Pakistan, with 4.3%annual growth and its engaged 35.1% of labor ofthe generalpopulation of Pakistan.Thearenaitself not an alone sector whatsoeverit'sa comprehensive subject.To be inured with its scope, instruments and areas the economic survey of Pakistan divideservices sectors into four different subsectors, which are distributive, personal services,producer services,and social services. The distributive sector brings the satisfaction and utility to users or customers,individual households and also earnings to the producers. Producer sector include of monetary sector it’snot just only benefitsthe purchasersbut ityetdelivers the capital to manufacturer and commercialcommunity. Another sub sector of services sector is personal services sector supply the community goodsand havens to the residents of the economy. Finally, the social services sectoris splitinto 2 subsectors,public administration and defense like judiciary, police, army and civil services, health services andeducation means of services.Hotel business in the service sector is one of the well-founded and growing businesseswithin the present era. The crucial needs of the hotels in the service sector have been incliningmoreover; holidaymaker’s demands and wants are extremely customized and specializedservices that are observed from the hotel industry. It has been examined that there is a heavycompetition exist in the domain of service sector mainly in “Hotel Industry” and alongsidetourism has always been on the peak and a tremendously clumsy for the newcomers in order toadapt the innovative emerging trends to have their own market share. It has been analyzed thatthe experts working in the “Hotel Industry” need to target on providing better quality of services
from the employer’s point of view which can only be possible if the employee is satisfied fromthe job. Within the era of intense competition and deregulation as well, multiple service providerexecutives in the Hotel Industry come up with the common thought of developing optimum levelof satisfaction within the consumer while delivering best quality services, hence, best qualityservice is the main key towards survival in the market. However, such widespread sentimentalityamong service provider executives within the Asian region is mutually shared by executives inPakistan where people are more interested in tourism and hoteling. It has been examined by theseveral researchers that attaining a loyal group of satisfied consumers enhance the bottom linesalong with gaining good market share. Although, certain studies recognized that notunpredictably, the essential role of service quality with in the execution of services marketingprograms in order to gain such wanted consequences is well documented in the multiple servicesproviders management and marketing researches. The massive amount of theoretical and empirical researches is observed to be mainevidence that the relation exist among job satisfaction of the employee and the service recoveryperformance in the Hotel Industry. The main motive of the “Hotel industry” is to gain thesatisfaction level of the potential customer through the services rendered and to preserve atrustworthy and strong relationship with the potential customers on the basis of a long term. Inthe matter of the fact, as is the scenario with services, failures and mistakes in providing servicesare observed to be in frequent occurrences. Managers of Service provider are very well aware ofthe fact that major failures in the service and their respective recovery encounters are found to bethe most crucial moments of truth with in their expeditions to make consumer satisfy and retain
their potential consumers and ensuring the fact that customers are emotionally involved with inthe recovery service in comparison to the routine service. It has been observed that Pakistan has been evolved as an essential region with respect toinvestment for the establishment of hotels. However, after the time span of almost five years,hotel industry in Pakistan has been observed having immense significance and higher growthrate. The hotel industry of Pakistan highlighted the growth rate of 9.78% of total GDP ofPakistan. Moreover, it has been analyzed that being well-aware that without satisfactorilyrectified, service failures may lead in unfavorable results for instance weakening in clientconfidence, losing potential consumers permanently, undesirable word-of-mouth and beacquainted with the contradictory situation, if efficiently resolved, failures may epitomize certainpositive opportunities, which therefore service providing organizations pursue the effectivesolutions for service failures on multiple fronts. It has been claimed in certain pieces of the research that services recovery is the actionthat should be adopt by the0 services benefactor to overcome the failure caused by un-satisfiedemployee while offering service (Ramseook Munhurrun, P., Naidoo, P., & Lukea-Bhiwajee, S.D. 2010). Multiple literatures titled that the factor of service recovery enables hotel industry toenhance customers’ insightful value, loyalty, reasonable feeling and additionally, the attractiveservice recovery is inspiring to diminish adaptation intention and changeability of the customer(Bitner, 1990, Lewis, 2004, & Cong, 2007). However, with the help of preceding studies it has been analyzed that service recoverypresented that satisfaction in the customer leading to the service recovery performance wouldexceed customer’s satisfaction that has been depressed of service failure, showing thesignificance of service recovery (Boshoff, 1999, P.236-249). Though, nourishing the potential
customers is known to be a very crucial job for every sector and industry predominantly, in the“hotel services industry”. Moreover, it has been examined in the past literatures that haveunderlined that customer’s level of satisfaction is mediocre for the services in the hotel industry(Andreasen & Best,1977).1.2.Problem StatementBy the year 1970s, many organizations have mutually consumed large amount of dollarsin order to advance their corporate service sector practices to enhance consumer services.Regardless of the formation of several hotels, innovative technology along with workforcetraining, many hotels are unable to offer better services to their potential consumers, andcustomer satisfaction is lesser today, than in early days (Grainer et al., 2014). Hotel industry isunable to handle their customer in optimum level and face risk of losing customer anddissatisfied customers due to the main to the main reason of an ultimate failure (Kumar, Isa, Hin,& Abdullah, 2012).For services it's commonly accepted thatthe qualityof service received by externalcustomerscannot beabovethe qualityof the service received by internal customers. Serviceinteractions between customers and repair personnelis alsoconsidered as social exchangeswhose outcomes directly influence a customer’s perception of the service quality and theirintentionsto undertaketo business with same service provider or not.In keeping withprecedingliteratures dissatisfaction during social exchanges account forthe mostamounts as 67% of allcustomers switching behaviors,no matterhow good the service productis meant. The socialexchanges between customers and repair staff couldeven bea giantsource of stress for workers.Studies showthat there isa high incidence of stress and employee burnout in services, (Hsieh &Eggers, 2010) because of increased levels of customer contact and social interaction. Employee
burnout is that the emotional exhaustion of the workerdue toprolonged periods of exposuretoworry (Maslach, Schaufeli, & Leiter, 2001). The prolonged exposure to fret may conditionemployees to believe that the negative situation is unchangeable or inescapable and end inlearned helplessness.Multiple studiesareappliedto gaugethe consequencesof internalmarketing practices forinstance employee rewards, employee training, internalcommunication, employee outcomes andmarketing-oriented factors including customer service orientation onSRP. However, theresultsof thosestudiesaremixed.in past literature authors like Ardahan(2007) and Kim and Oh(2012) revealed that empowerment,likeauthorityassignment,failed tohavea majorinfluenceon employee SRP. Although, some other authors found that empowerment wastheforemostsignificantconcept aboutservicerecovery. On the effect of employee rewards, manystudies have been failed tofind any significantrelationship. Such a finding is inconsistent fromcertain literatures had revealed an insignificant linkbetween organizational commitment andemployee SRP. SRP strategies encompass the actions taken by front-line employees in response to certainservice failures (Michel, 2001; Patterson et al., 2006). All such strategies may includevarious responses, including acknowledgement ofthe matter, apologizing, explanation ofthematter and offering compensation (Patterson et al., 2006; Prasongsukarn and Patterson,2012).The entire process of Service Recovery Performance entails immediacy, listening carefully to thecustomer problem and makingan honestcomeback (Boshoff and Allen, 2000). A key point in arguments abouta way tomanage service failuresactivatesthe veryfactthatthe characterof the service failure,and therefore theactions that are needed to satisfycomplaining clients, cannot always be predetermined. A service employee’s job is to some extent
unpredictable, requiringjudgmentinplanning tothe issuesthat arise.This meansthataparticularlevel of employee empowermentis requiredto manage service failures (Babakus et al.,2003; Bowen and Lawler, 1995). According tothe angleof several researches the intangibleelement of the SRP requires somekind ofemployee participation, even in highly standardizedsituations. However,it'sclear that fromthe workerside,they needlittle or no control incopingwithservice failures, and, frustratingly,once theyare held personally responsible by a customer,job dissatisfaction can ensue and undermine employee loyalty.It has been widely acknowledged that organizational commitmentmay be akeyinfluencerof employee SRP (Piaralal et al., 2016). Certain researches asserted that employerswhoare affectively committed to theirhotel tend to demonstrate a high-standard performanceand perceive servicequality highly. However, few studies havechecked outthe mediating role ofaffective dimension of organizational commitment with employee SRP. Many other studiesrevealed that affective organizational commitment partially mediatedthe effect of managementcommitment on the link between service quality andemployee SRP. This study investigated themediating role of SRPwithin therelationship between internal workplace environment,supervisor behavior and employee SRP as suggested by previous research(Karatepe &Vatankhah, 2015; Masdek et al., 2011). However, most researches regarding SRP of employees wereheld mainly in healthcare ortelecommunication sector (Rod& Ashill, 2010), banking (Yavas et al., 2003), andinsurancesector (Piaralal et al., 2016)in numerous countries including Turkey, New Zealand,Thailand,and Malaysia. Though, the limited investigation was conducted mainly inthe hotel industrymainly in Pakistan.In Pakistan, limited studiesareconducted on SRP of the employees in hotelsector.For example,Khan (2014) studiedorganizational cynicism among bank employees.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Report on GDP and Economic Growth in Australialg...
|15
|3182
|80
International Trade Across Borders | Assignmentlg...
|12
|2992
|32
Contribution of Tourism and Hospitality Sector to UK Economylg...
|9
|1964
|252
Economic Analysis for Managers PDFlg...
|39
|1315
|118
Digital Marketing Strategies of Islamic Banking Industry in Bangladeshlg...
|23
|8796
|417
livestock industry Assignment PDFlg...
|24
|7159
|137