Moments of Truth and Employee Empowerment: A Dynamic Duo for Customer Services
Abstract
This paper examines the intricate relationship between Moments of Truth (MOTs), employee empowerment, and customer satisfaction. MOTs are critical junctures in the customer journey, significantly impacting loyalty and satisfaction. This paper argues that empowered employees are better equipped to navigate MOTs effectively, ultimately leading to a positive customer experience. Drawing upon existing research, the paper delves into the theoretical underpinnings of MOT theory, employee empowerment theory, and customer experience. Empirical studies are then analyzed to explore the direct and indirect effects of employee empowerment on customer satisfaction. Findings reveal that while a direct correlation may not always be readily apparent, the indirect and moderating effects of empowerment through service quality and employee engagement are evident. The paper underscores the practical implications for businesses seeking to leverage employee empowerment for optimal customer satisfaction outcomes. The paper concludes by offering key recommendations for businesses seeking to optimize customer satisfaction through empowered employees. These recommendations include identifying and prioritizing critical MOTs, equipping employees with necessary skills and resources, fostering a culture of trust and autonomy, and emphasizing the need for diverse methodologies and contextual considerations in future research. Overall, this review paper provides valuable insights and practical recommendations for business leaders seeking to create exceptional customer experiences through empowered employees in service industries.
References
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Chan, K. W., & Lam, W. (2011). The trade-off of servicing empowerment on employees’ service performance: Examining the underlying motivation and workload mechanisms. Journal of the Academy of Marketing Science, 39(4), 609–628. https://doi.org/10.1007/s11747-011-0250-9
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Joshi, A., Schaaf, M., & Zayed, D. (2022). The use of legal empowerment to improve access to quality health services: A scoping review. International Journal for Equity in Health, 21(1), 136. https://doi.org/10.1186/s12939-022-01731-3
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Kotter, J. P. (2012). Leading Change. Harvard Business Press.
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Kun, Q., Hai-yan, S., & Lin-li, L. (2007). The Effect of Empowerment on Employees’ Organizational Commitment: Psychological Contract as Mediator. 2007 International Conference on Management Science and Engineering, 1493–1498. https://doi.org/10.1109/ICMSE.2007.4422054
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Namasivayam, K., Guchait, P., & Lei, P. (2014). The influence of leader empowering behaviors and employee psychological empowerment on customer satisfaction. International Journal of Contemporary Hospitality Management, 26(1), 69–84. https://doi.org/10.1108/IJCHM-11-2012-0218
Nouri, B. A., & Mousavi, M. M. (2020). Effect of cooperative management on organizational agility with the mediating role of employee empowerment in public transportation sector. Cuadernos de Gestión, 20(2), 15–46. https://doi.org/10.5295/cdg.170873ba
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Auh, S., Menguc, B., Katsikeas, C. S., & Jung, Y. S. (2019). When Does Customer Participation Matter? An Empirical Investigation of the Role of Customer Empowerment in the Customer Participation–Performance Link. Journal of Marketing Research, 56(6), 1012–1033. https://doi.org/10.1177/0022243719866408
Bester, J., Stander, M. W., & Van Zyl, L. E. (2015). Leadership empowering behaviour, psychological empowerment, organisational citizenship behaviours and turnover intention in a manufacturing division. SA Journal of Industrial Psychology, 41(1), 14 pages. https://doi.org/10.4102/sajip.v41i1.1215
Bitner, M. J. (1992). Servicescapes: The Impact of Physical Surroundings on Customers and Employees. Journal of Marketing, 56(2), 57–71. https://doi.org/10.1177/002224299205600205
Björlin Lidén, S., & Skålén, P. (2003). The effect of service guarantees on service recovery. International Journal of Service Industry Management, 14(1), 36–58. https://doi.org/10.1108/09564230310465985
Bruton, J., & Bruton, L. (2021). Principles of Management. Lumen Learning. https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/reading-bureaucratic-management/
Byham, W. C., & Cox, J. (1989). The Lightening of Empowerment. DDI Press.
Carlzon, J. (1989). Moments of Truth (Revised ed. edition). Harper Business.
Castro-Casal, C., Vila-Vázquez, G., & Pardo-Gayoso, Á. (2019). Sustaining Affective Commitment and Extra-Role Service among Hospitality Employees: Interactive Effect of Empowerment and Service Training. Sustainability, 11(15), 4092. https://doi.org/10.3390/su11154092
Chan, K. W., & Lam, W. (2011). The trade-off of servicing empowerment on employees’ service performance: Examining the underlying motivation and workload mechanisms. Journal of the Academy of Marketing Science, 39(4), 609–628. https://doi.org/10.1007/s11747-011-0250-9
Chebat, J.-C., & Kollias, P. (2000). The Impact of Empowerment on Customer Contact Employees’ Roles in Service Organizations. Journal of Service Research, 3(1), 66–81. https://doi.org/10.1177/109467050031005
Dixon, R. (2012). Assessing The Impact Of Employee Empowerment on Quality Services And Customer Satisfaction [MBA-IB, Amity University]. https://www.academia.edu/7102730/ASSESSING_THE_IMPACT_OF_EMPLOYEE_EMPOWERMENT_ON_QUALITY_SERVICE_AND_CUSTOMER_SATISFACTION_
Drucker, P. F. (2007). The Effective Executive (revised). Routledge. https://doi.org/10.4324/9780080549354
Dwita, F., Sudiantini, D., Agustine, L., Sedyoningsih, Y., & Channa, K. (2023). The Effect of Moment of Truth, Service Quality and Customer Satisfaction on Customer Loyalty. JOURNAL OF ECONOMICS, FINANCE AND MANAGEMENT STUDIES, 06(01). https://doi.org/10.47191/jefms/v6-i1-16
Estelami, H. (2000). Competitive and Procedural Determinants of Delight and Disappointment in Consumer Complaint Outcomes. Journal of Service Research, 2(3), 285–300. https://doi.org/10.1177/109467050023006
Garvin, D. A. (1984). What Does “Product Quality” Really Mean? Sloan Management Review. http://oqrm.org/English/What_does_product_quality_really_means.pdf
Han, X., Fang, S., Xie, L., & Yang, J. (2019). Service fairness and customer satisfaction: Mediating role of customer psychological empowerment. Journal of Contemporary Marketing Science, 2(1), 50–62. https://doi.org/10.1108/JCMARS-01-2019-0003
Han, X., Lishan, X., & Junfeng, Y. (2011). An empirical study on the relationships among customer psychological empowerment, service fairness and customer attitude. ICSSSM11, 1–6. https://doi.org/10.1109/ICSSSM.2011.5959383
Hess Jr., R. L., Ganesan, S., & Klein, N. M. (2003). Service Failure and Recovery: The Impact of Relationship Factors on Customer Satisfaction. Journal of the Academy of Marketing Science, 31(2), 127–145. https://doi.org/10.1177/0092070302250898
Hur, W.-M., Moon, T.-W., & Jung, Y. S. (2015). Customer response to employee emotional labor: The structural relationship between emotional labor, job satisfaction, and customer satisfaction. Journal of Services Marketing, 29(1), 71–80. https://doi.org/10.1108/JSM-07-2013-0161
Hyken, S. (2007). The Dangerous Customer. Quality Assurance 4th Quarter Journal, 6–7.
Hyken, S. (2010). Moments of Truth, Misery, and Magic. https://hyken.com/articles/1112-2
Joshi, A., Schaaf, M., & Zayed, D. (2022). The use of legal empowerment to improve access to quality health services: A scoping review. International Journal for Equity in Health, 21(1), 136. https://doi.org/10.1186/s12939-022-01731-3
Kassim, Z. A., Yusoff, I. Y. M., & Fong, N. L. (2012). Job Empowerment and Customer Orientation of Bank Employees in Kuching, Malaysia. Contemporary Management Research, 8(2). https://doi.org/10.7903/cmr.11048
Kattara, H. S., Weheba, D., & El-Said, O. A. (2008). The Impact of Employee Behaviour on Customers’ Service Quality Perceptions and Overall Satisfaction. Tourism and Hospitality Research, 8(4), 309–323. https://doi.org/10.1057/thr.2008.35
Kazlauskaite, R., Buciuniene, I., & Turauskas, L. (2011). Organisational and psychological empowerment in the HRM‐performance linkage. Employee Relations, 34(2), 138–158. https://doi.org/10.1108/01425451211191869
Kohnen, J. B. (2006). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Quality Management Journal, 13(3), 61–62. https://doi.org/10.1080/10686967.2006.11918562
Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
Kotter, J. P. (2012). Leading Change. Harvard Business Press.
Kreitner, R., & Kinicki, A. (2007). Organizational behavior (7th ed.). McGraw-Hill.
Kun, Q., Hai-yan, S., & Lin-li, L. (2007). The Effect of Empowerment on Employees’ Organizational Commitment: Psychological Contract as Mediator. 2007 International Conference on Management Science and Engineering, 1493–1498. https://doi.org/10.1109/ICMSE.2007.4422054
Lawler, E. E., Mohrman, S. A., & Ledford, G. E. (1992). Employee Involvement and Total Quality Management: Practices and Results in Fortune 1000 Companies. Jossey-Bass Incorporated Pub.
Liden, R. C., Wayne, S. J., & Sparrowe, R. T. (2000). An examination of the mediating role of psychological empowerment on the relations between the job, interpersonal relationships, and work outcomes. Journal of Applied Psychology, 85(3), 407–416. https://doi.org/10.1037/0021-9010.85.3.407
Liljander, V., & Strandvik, T. (1995). The Nature of Customer Relationships in Services. Advances in Services Marketing and Management, 4(141), 67.
Lubis, A., Dalimunthe, R., Absah, Y., & Fawzeea, B. K. (2020). The Influence of Customer Relationship Management (CRM) Indicators on Customer Loyalty of Sharia Based Banking System. GATR Journal of Management and Marketing Review, 5(1), 84–92. https://doi.org/10.35609/jmmr.2020.5.1(8)
Luria, G., Gal, I., & Yagil, D. (2009). Employees’ Willingness to Report Service Complaints. Journal of Service Research, 12(2), 156–174. https://doi.org/10.1177/1094670509344214
Mansour, S. (2023). Can strategic HRM bundles decrease emotional exhaustion and increase service recovery performance? International Journal of Manpower, 44(3), 503–523. https://doi.org/10.1108/IJM-10-2021-0576
McGregor, D. (1960). The Human Side Of Enterprise. McGraw-Hill.
Naeem, H., & Saif, M. I. (2010). Employee empowerment and customer satisfaction: Empirical evidence from the banking sector of Pakistan. African Journal of Business Management, 4(10), 2028–2031.
Namasivayam, K., Guchait, P., & Lei, P. (2014). The influence of leader empowering behaviors and employee psychological empowerment on customer satisfaction. International Journal of Contemporary Hospitality Management, 26(1), 69–84. https://doi.org/10.1108/IJCHM-11-2012-0218
Nouri, B. A., & Mousavi, M. M. (2020). Effect of cooperative management on organizational agility with the mediating role of employee empowerment in public transportation sector. Cuadernos de Gestión, 20(2), 15–46. https://doi.org/10.5295/cdg.170873ba
O’Cass, A., & Viet Ngo, L. (2011). Achieving customer satisfaction in services firms via branding capability and customer empowerment. Journal of Services Marketing, 25(7), 489–496. https://doi.org/10.1108/08876041111173615
Ogbeide, G.-C. A., Böser, S., Harrinton, R. J., & Ottenbacher, M. C. (2017). Complaint management in hospitality organizations: The role of empowerment and other service recovery attributes impacting loyalty and satisfaction. Tourism and Hospitality Research, 17(2), 204–216. https://doi.org/10.1177/1467358415613409
Parasuraman, A., Zeithaml, V. A., & Berry, L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 16(1), 12–37.
Partlow, C. G. (1993). How Ritz-Carlton Applies “TQM.” Cornell Hospitality Quarterly, 34(4), 16–24.
Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
Rahman, Mohd. K. A., Jaafar, N., Paim, L., Osman, S., & Haron, S. A. (2017). Mediating effect of SATCOM on the relationship between consumer complaint behaviour and relationship quality. International Journal of Advanced and Applied Sciences, 4(3), 79–86. https://doi.org/10.21833/ijaas.2017.03.013
Ramani, G., & Kumar, V. (2008). Interaction Orientation and Firm Performance. Journal of Marketing, 72(1), 27–45. https://doi.org/10.1509/jmkg.72.1.027
Reinartz, W., Thomas, J. S., & Kumar, V. (2005). Balancing Acquisition and Retention Resources to Maximize Customer Profitability. Journal of Marketing, 69(1), 63–79. https://doi.org/10.1509/jmkg.69.1.63.55511
Rust, R. T., & Zahorik, A. J. (1993). Customer Satisfaction, Customer Retention, and Market Share. Journal of Retailing, 69(2), 193–215.
Sarpong, S. (2016). The Service Industry and the “Moment of Truth”: The Quest for the Holy Grail. Athens Journal of Tourism, 3(1), 25–40. https://doi.org/10.30958/ajt.3-1-2
Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). John Wiley & Sons.
Schneider, B., Ehrhart, M. G., Mayer, D. M., Saltz, J. L., & Niles-Jolly, K. (2005). Understanding Organization-Customer Links in Service Settings. Academy of Management Journal, 48(6), 1017–1032. https://doi.org/10.5465/amj.2005.19573107
Shedid, M. (2019). Employee Empowerment and Customer Satisfaction: An investigation from a UAE Banking-sector perspective [Robert Gordon University]. https://rgu-repository.worktribe.com/output/842064/employee-empowerment-and-customer-satisfaction-an-investigation-from-a-uae-banking-sector-perspective
Simoni, D. F. (1998). Empowerment: Takes More than a Minute. Quality Management Journal, 5(2), 121–122. https://doi.org/10.1080/10686967.1998.11918864
Smith, D., Gosling, J., & Maddern, H. (2015, September 1). A consumer perspective on Moments of Truth. https://www.semanticscholar.org/paper/A-consumer-perspective-on-Moments-of-Truth-Smith-Gosling/90336b986a87ae543b3e2140e8122442bc3f9eed
S.Phabmixay, C., Rodríguez-Escudero, A. I., & Rodríguez-Pinto, J. (2021). Organizational antecedents to designing a comprehensive complaint management system. Journal of Management & Organization, 27(3), 481–506. https://doi.org/10.1017/jmo.2018.73
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Published
2024-06-01
How to Cite
AL-MALOOD, Fawaz.
Moments of Truth and Employee Empowerment: A Dynamic Duo for Customer Services.
Asian Journal of Research in Business and Management, [S.l.], v. 6, n. 2, p. 28-47, june 2024.
Available at: <https://myjms.mohe.gov.my/index.php/ajrbm/article/view/26606>. Date accessed: 13 jan. 2025.
Section
English Section
