Service climate

Service climate is a concept rooted in the study of social climate (Social environment), describing the collective perceptions within a group regarding customer service practices, behaviors, and values. It relates to how employees view organizational priorities and standards related to customer service quality and reflects how these priorities influence employee and customer behavior. The term "climate" is used metaphorically, likening it to atmospheric climate in that service climate, like weather, is relatively stable across groups but can vary over time within the same group, influencing the behaviors and attitudes of those within the environment.^[1] Originating from research in social psychology, service climate has grown as a topic of study within business management and organizational psychology, and its principles are applied in various fields to enhance customer satisfaction and loyalty.

Overview

Service climate describes employees' shared perceptions of customer service standards within an organization. Specifically, it includes the practices, procedures, and behaviors that employees perceive to be supported, rewarded, and expected regarding customer service. For instance, when employees feel that their efforts to deliver quality service are recognized and valued by the organization, the service climate is perceived to be stronger. Additionally, management’s prioritization of customer service further contributes to a positive service climate.

In comparing service climate to atmospheric climate, researchers have noted that like weather patterns, service climate is dynamic and can vary across different groups or teams within an organization. Each team's collective approach and understanding of service priorities create a unique environment, just as different geographic regions have unique weather patterns.^[1]

Research indicates that a positive service climate is associated with improved customer satisfaction, loyalty, and retention. These factors are ultimately linked to the organization's profitability. Customer loyalty is fostered in environments where high service quality is prioritized, benefiting both the customers' experience and the company's financial outcomes. Scholars like Rust and Zahorik emphasize the importance of quantifying service quality's impact on financial measures, advocating for customer satisfaction programs that stand on par with other financially justified business initiatives.^[2]^[3]

Antecedents of Service Climate

Organizational resources serve as antecedents to a positive service climate. Resources like training, autonomy, and technology contribute to a supportive work environment, allowing employees to feel engaged and effective in their roles. Recent research has confirmed that engagement at the work-unit level positively influences the service climate.^[4] When obstacles to effective work are removed, employees become more engaged, leading to improved service and customer satisfaction.

Employee-Customer Interactions

The service climate is particularly relevant to employees who interact directly with customers, sometimes referred to as "boundary workers." Employees' perceptions of the service climate impact how they treat customers, which in turn affects customers' perceptions of service quality. For example, Schneider and Bowen found that employees who perceive strong organizational support for service quality tend to create better customer experiences.^[5]

Research History

The study of social climate began with early social experiments in the 1960s, particularly White and Lippitt's research comparing democratic, autocratic, and laissez-faire leadership in children's groups. The concept has since expanded, with a notable increase in research on social climate and service quality within organizational settings.^[6]

Schneider, White, and Paul's research provided foundational insights into the relationship between service climate and customer perceptions. Their work highlighted that a well-developed service climate is reflected in customer experiences, underscoring the importance of creating a supportive and rewarding work environment.^[7]

References

^ ^a ^b Craighead, W. Edward; Nemesek, Charles B., eds. (2004). The Concise Corsini Encyclopedia of Psychology and Behavioral Science. Hoboken, NJ: John Wiley & Sons. Like meteorological climate, social climate is distinctive across groups (e.g., the tropics differ from the Himalayas); it is dynamic or changeable within groups; and it can influence behavior.
^ Rust, Roland T.; Zahorik, Anthony J. (1993). "Customer satisfaction, customer retention, and market share" (PDF). Journal of Retailing. 69: 193–215. This skepticism about the value of service quality makes it imperative that research be undertaken to address the quantification of the impact of customer satisfaction on observable financial measures, to place programs to improve customer satisfaction and service quality on an even footing with most other business programs that must justify themselves financially.
^ Storbacka, J.; Strandvik, T.; Gronroos, C. (1994). "Managing customer relationship quality". International Journal of Service Industry Management. 5: 21–28.
^ Salanova, Marisa; Agut, Sonia; Peiró, José María (2005). "Linking Organizational Resources and Work Engagement to Employee Performance and Customer Loyalty: The Mediation of Service Climate". Journal of Applied Psychology. 90 (6): 1217–1227. The research shows that when employees perceive that organizational resources (i.e., training, autonomy, technology) remove obstacles at work, they feel more engaged, leading to a better climate for service.
^ Schneider, B.; Bowen, D. (1995). Winning the service game. Boston: Harvard Business School Press. The way boundary workers perceive their organizations' service climates is related to the service quality perceived by those organizations' customers.
^ Craighead, W. Edward; Nemesek, Charles B., eds. (2004). The Concise Corsini Encyclopedia of Psychology and Behavioral Science. Hoboken, NJ: John Wiley & Sons. Like meteorological climate, social climate is distinctive across groups; it is dynamic or changeable within groups; and it can influence behavior, much like an individual's choice of clothing.
^ Schneider, Benjamin; White, Susan S.; Paul, Michelle C. (1998). "Linking Service Climate and Customer Perceptions of Service Quality: Test of a Causal Model". Journal of Applied Psychology. 83 (2): 150–163. The concept and measurement of social climate have since been applied across widely diverse disciplines both within and outside the field of psychology.

[Corsini2004-1] Craighead, W. Edward; Nemesek, Charles B., eds. (2004). The Concise Corsini Encyclopedia of Psychology and Behavioral Science. Hoboken, NJ: John Wiley & Sons. Like meteorological climate, social climate is distinctive across groups (e.g., the tropics differ from the Himalayas); it is dynamic or changeable within groups; and it can influence behavior.

[2] Rust, Roland T.; Zahorik, Anthony J. (1993). "Customer satisfaction, customer retention, and market share" (PDF). Journal of Retailing. 69: 193–215. This skepticism about the value of service quality makes it imperative that research be undertaken to address the quantification of the impact of customer satisfaction on observable financial measures, to place programs to improve customer satisfaction and service quality on an even footing with most other business programs that must justify themselves financially.

[3] Storbacka, J.; Strandvik, T.; Gronroos, C. (1994). "Managing customer relationship quality". International Journal of Service Industry Management. 5: 21–28.

[salanova-4] Salanova, Marisa; Agut, Sonia; Peiró, José María (2005). "Linking Organizational Resources and Work Engagement to Employee Performance and Customer Loyalty: The Mediation of Service Climate". Journal of Applied Psychology. 90 (6): 1217–1227. The research shows that when employees perceive that organizational resources (i.e., training, autonomy, technology) remove obstacles at work, they feel more engaged, leading to a better climate for service.

[5] Schneider, B.; Bowen, D. (1995). Winning the service game. Boston: Harvard Business School Press. The way boundary workers perceive their organizations' service climates is related to the service quality perceived by those organizations' customers.

[6] Craighead, W. Edward; Nemesek, Charles B., eds. (2004). The Concise Corsini Encyclopedia of Psychology and Behavioral Science. Hoboken, NJ: John Wiley & Sons. Like meteorological climate, social climate is distinctive across groups; it is dynamic or changeable within groups; and it can influence behavior, much like an individual's choice of clothing.

[schneider_1998-7] Schneider, Benjamin; White, Susan S.; Paul, Michelle C. (1998). "Linking Service Climate and Customer Perceptions of Service Quality: Test of a Causal Model". Journal of Applied Psychology. 83 (2): 150–163. The concept and measurement of social climate have since been applied across widely diverse disciplines both within and outside the field of psychology.

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