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Services Marketing Argumentative

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Recent years, employee empowerment becomes one of the most popular strategies used in service marketing. People’s ability to communicate, and their commitment and contribution to the achievement of a common purpose are necessary for the existence of healthy climate and friendly atmosphere in organizations. Some researchers (Lovelock, Wirtz, 2004) underline that employment is the most important strategy for service excellence and improving performance of organizations. In general, employee empowerment can be defined as “a process of enhancing feelings of self-efficacy among organizational members through the identification of conditions that foster powerlessness, and through their removal by both formal organizational practices and informal techniques of proving efficacy information” (Ugboro, 2006, p. 237). The factors favoring a strategy of employee employment include a strong desire of organizations to gain competitive advantage and become more flexible. Taking into account the example of Pepsi-Cola Company, it is possible to say that economic factors of employee empowerment based on the assumption of rational behavior in choosing from known alternatives in order to maximize objectives can be contrasted with behavioral models based not so much on maximization of objectives but on short-term expediency.

The main strategy is that a choice is made to avoid con­flict and within limiting constraints. During 1990s, PepsiCo implemented “SharePower” aimed to empower employees through an innovative strategy. “PepsiCo’s reason for creating SharePower was to have everyone feel the sense of ownership that top executives felt” (Denton, 1993). The system of worker participation relied on the involvement of workers in decision making. Whereas the organization was concerned with employees playing a part in identifying and solving problems on customer services, the system was geared more towards real empowerment, giving workers a voice in company-wide decisions.

Employee commitment and “growing employee power” is another strategy which favors employee empowerment. This entails such things as using time con­structively, attention to detail, making that extra effort, accepting change, co­operation with others, self-development, respecting trust, pride in abilities, seeking improvements and giving loyal support. Improved results will not be achieved unless workers can also feel a sense of excitement about their work which results in the motivation to perform well. In other words, “the need to keep workers happy may now force bosses to relax their iron grip” (The real meaning of empowerment, 2000). This example shows that participative and supportive style of leadership and managerial behavior is likely to assist in employee empowerment showing an attitude of respect and trust; encouraging personal self-development; creating a work environment in which staff can work co-operatively together. A participative approach to leadership and management may also help to create greater employee commitment. In essence, by empowering employees in this way, is combining both the benefits of co-operation and teamwork (Lovelock, Wirtz, 2004)

            Training strategies is another factor which favors employee empowerment.  In this very case, training is therefore a key element of improved organizational perfor­mance as it increases the level of individual and organizational compe­tence. It helps to reconcile the gap between what should happen, and desire-targets and standards of performance; and what is happening and levels of work performance. In order to sustain economic and effective performance it is important to optimize the contribu­tion of employees to the aims and goals of the organization. It should be mentioned that the purpose of training is to improve knowledge and skills, and to change attitudes. This can lead to many potential benefits for both individuals and the organization (Weaver, 1994).

The example of Waltham, Mass. hotel shows that eemployee involvement is not so much about empowering the workforce to take action against man­agement, but to provide an environment in which employees are encouraged to take a greater interest in the long-term success of the organization (Weaver, 1994). Nevertheless, a shift to this way of thinking requires change and shrugging off individualistic tendencies in favor of a collective approach to management. In case of employee empowerment, the concept of commitment itself appears to be a growing acceptance of the notion of attachment and loyalty. Commitment may be defined in terms of the relative strength of the employee’s identification with, and involvement in, a particular organization. Following Weaver (1994), satisfied employees lead to satisfied customers, the only kind organizations can afford to have in a service business.

Reward strategies used by organizations in another factor which favors employee empowerment. “Long-term loyalty bonuses and more generous pensions also make sense” (The real meaning of empowerment, 2006). Managers motivate employees by economic reward trying to give subordinates feelings of importance and need. There is good communication with excellent productivity and low absenteeism and labor turnover. Another factor which favors employee empowerment is organizational culture. It helps to explain how things are performed in different organizations.

In sum, among the factors which contribute to employee commitment are staff morale and the extent to which employees have a sense of commitment to the organization. The need for co-operative action and motivation of employees in service organizations is one of the crucial elements to deliver customer satisfaction. Employee empowerment is a part of HRM which plays a vital strategic role in organizational attempt to compete through people. 


  1. Denton, K.D. 1993. Entrepreneurial spirit – employee empowerment. Business Horizons. May-June. Retrieved from http://www.findarticles.com/p/articles/mi_m1038/is_n3_v36/ai_13183251
  2. Lovelock, C & Wirtz, J. 2004. Services Marketing, People, Technology and Strategy. Pearson Prentice Hall.
  3. The real meaning of empowerment. 2000. The Economist. Retrieved from http://www.economist.com/background/displaystory.cfm?story_id=331641
  4. Weaver, J.J. 1994. Want customer satisfaction? Satisfy your employees first – Professionally Speaking. HR Magazine. Feb. Retrieved from http://www.findarticles.com/p/articles/mi_m3495/is_n2_v39/ai_15272666/pg_2
  5. Ugboro, Isaiah O. 2006. Organizational Commitment, Job Redesign, Employee Empowerment and Intent to Quit Among Survivors of Restructuring and Downsizing. Retrieved from www.ibam.com/pubs/jbam/articles/vol7/no3/JBAM_7_3_1_Organizational_Commitment.pdf

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