The Effect of Permeation of Management Philosophy on the Satisfaction of Customer and Employee: An Enterprise Case Study

Abstract

The purpose of this research is to verify the management method based on the concept of Service Profit Chain (SPC) advocated by Heskett et al.(1994, 1997). The proposed hypothesis is “The permeation of the management philosophy is the tool that makes Customer Satisfaction (CS) and Employee Satisfaction (ES) to be compatible”. However, the management method based on SPC is a chain of causality, and the primary factors in this chain of causality, especially the primary factor that links CS and ES, were not known to us. In order to verify the hypothesis, I have applied SPC as the management method in actual management. As a result, it became clear that deep permeation of the management philosophy is a factor in making CS and ES compatible. An interesting discovery is that the CS is being determined almost entirely by human interactions. I discuss the point at issue from five different viewpoints and fmally state the solution.