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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/14861

Title: Frontline employees and performance: optimizing the frontline, maximizing the bottom line
Authors: Andreassen, Tor W.
Streukens, Sandra
Issue Date: 2014
Publisher: Edward Elgar Publishing Ltd.
Citation: Rust, Roland; Huang, Ming-Hui (Ed.). Handbook on Research in Service Marketing, p. 244-269
Abstract: In this paper, we link front line employees (FLE) to sales performance and second, develop a general model for optimizing FLE investment to maximize bottom line. In the first part, we investigate three person-environment antecedents to FLEs’ self-efficacy and its impact on objective sales performance directly and indirectly through FLE’s creativity and efforts. While the fit between FLEs’ personal values and the organizational culture is the stronger driver of self-efficacy, self-efficacy is positively correlated with creativity, effort and sales performance. Contrary to our thinking, creativity is negatively correlated with sales performance. Building on the knowledge from the first part, we develop in the second part a mathematical model to optimize investments aimed at improving FLE congruence perceptions. Of relevance to service managers is that such a model can be optimized in terms of financial performance. In particular, our model allows decision-makers to answer key FLE-investment questions such as (i) optimal FLE-investment level; (ii) optimal FLE-investment allocation; (iii) rate of return; and (iv) investment risk. For any service manager and specifically in countries with strong labor laws, analyzing the outcome of various FLE investments prior to actual decision is vital to stay competitive.
Notes: [Streukens, Sandra] Hasselt Univ, Diepenbeek, Belgium. [Andreassen, Tor W.] NHH Norwegian Sch Econ, Oslo, Norway.
URI: http://hdl.handle.net/1942/14861
DOI: 10.4337/9780857938855.00020
ISI #: 000333765400012
ISBN: 9780857938848
Category: B2
Type: Book Section
Appears in Collections: Research publications

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