The Relationship between Rewards and Recognition, Service-Oriented Organizational Citizenship Behaviour, and Customer Satisfaction

Abstract

Abstract

It is widely acknowledged that employees with positive attitudes towards their leaders and working environment can contribute to significant organizational outcomes; which can include customer satisfaction, loyalty, and increased profits. Employee’s service-oriented behaviour has been extensively proposed in literature as the result of a multiple set of organizational variables. However, limited empirical research has explored the links between the behaviour and attitudes of front line employees that lead to constructive service. Based on a sample of 4,220 employees from a well-known Canadian charter bank, this study empirically examined the relationships between rewards and recognition, perceived organizational support (POS), and leader-member exchange (LMX) and its effect on employee’s service oriented organizational citizenship behaviours (COBs). In addition, a theoretical analysis of the relationship between service oriented behaviour, customer satisfaction, and increased company performance explains the importance of empirically investigating the observed relationships. The results provided support for the claim that perceived organizational support and leader-member exchange mediate the relationship between rewards and recognition and service-oriented organizational citizenship behaviours (service COB, loyalty COB, and participation COB) when different sources of rewards and recognition are in effect (e.g.., from manger, non-manager, and understanding of system). This study is relevant to the management of service industries that depend on front-line employees to deliver quality service, and to clarify the environmental and situational aspects that influence employee’s service behaviours. These factors are crucial in face-to-face interactions which can result in business profit or loses.