Promotion should purely be merit based so that everyone in the organization gets an opportunity to move up the ranks. Also, in the event of job openings, it is advisable to first try and hire from within. This not only saves costs on training but also in a great platform for employee stimulation. It is important for the employees to be challenged to a reasonable level so as to encourage them to be interested in their job, thus, it is likely that the productivity levels will remain high. Motivation is key to increasing the productivity of a workforce. Compliments, for example, are excellent motivators. Satisfied employees are aware that they are appreciated as they constantly receive positive feedback from their superiors. High employee satisfaction levels are directly linked to employee productivity and employee retention as satisfied employees are more productive and loyal to their organization that their unsatisfied counterparts. An employer who understands what motivates his staff has definite control over his staff.
The article "dispelling the modern myth: Employee satisfaction and loyalty drive service profitability" gives a report on research findings on operation management, service management, Total Quality Management (TQM) and Human Resource Management. The research focuses on the correlation between employee satisfaction and performance. It is a general belief that better satisfied employees have higher levels of productivity. Rhian & Silversto cites earlier works by the Americans Deming(1986), Juran (1989) and the Japanese Ishiakawa(1985) who are all management experts their writings shows that improved job satisfaction increases the productivity of employees. These authors' argument supports the belief that better performing enterprises always treated their employees in a better way.
True to its title, the research finds contradicting evidence to earlier works and the general beliefs to what had been commonly accepted in the management world. The author's gives the example of Isakawa 1985 who argues that with better satisfaction, one has improved drives hence will tend to co-operate with fellow employees. The research findings from an empirical study of one of UK's Supermarket chains showed that this is not always true. The most profitable stores were the ones with the least satisfied employees "implying a negative correlation between employee satisfaction and measures of productivity, efficiency and profitability" Rhian & Sylvester. However, reports by management experts that employee satisfaction and loyalty are key factors to enhancing productivity efficiency and increasing profit.
The paper puts into application, Heskett, Sasser and Schlesinger's service profit chain model to a UK supermarket. The major aim is to determine the performance linkages between employee perception and performance, customer perceptions, behavior and financial performance. Works by both Hesket and Schlesinger (1991) and Reichheld (1996) improving employee loyalty through poor rewarding helps in improving the services the employees provide hence profitability is improved.
The research is a case study of the Home Improvement Store Chain in the United Kingdom. This is a large group of supermarket chains in the UK. The company was chosen since it had senior management believed that satisfaction was key to