Financial Performance and Organizational Identification

Monday, December 12th, 2011

(This first part of this went out in my newsletter this morning, and then I came across the research on employee engagement.) They go hand-in-hand.

(Photo of Matthew Lesko. Gawker.com)

Probably no surprise, but employees that identify with their organizations make more money.  OI (organizational identification) stems from corporate character. Not what the organization says it will do in its values statements and marketing materials, but in what it really does. Researchers found that many employees pick up their OI from their managers. It seems there is a direct link from managers’ OI to employees’ OI to customer spending.  (From a blog post by Donald R. Lichtenstein, James G. Maxham III, and Richard G. Netemeyer)

“Stephen Brown and Son Lam, two professors from the University
of Houston analyzed over 28 studies of employee engagement
and customer service quality (Journal of Retailing, 2008). They
conclude that ‘Managers should realize that satisfied, motivated, and
committed front-line employees constitute a powerful engine for the
delivery of service quality and customer satisfaction.’ ” (From Employee Engagement to What End?)

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