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Abstract:
The purpose of the study was to examine correlational relationships between managers' behaviors, employee turnover, customer satisfaction, and store-level financial performance. It was hypothesized that behaviors of a store's General Manager would relate to employees' commitment to their manager and employees' perceptions of the work environment. In turn, these commitment levels and perceptions would relate to employee turnover and customer satisfaction. Employee turnover and customer satisfaction would relate to the criterion, store profitability. Store size (as defined by square footage) and tenure of the General Manager at the current store were reviewed as moderating variables. Managers' Behaviors hypothesized were based on behaviors that were considered essential to success as a General Manager, and were rated based on the frequency to which behaviors were engaged in. The 13 behaviors were: Coaching Others, Counseling Others, Planning and Organizing, Delegating, Staffing Others, Managing My Team, Maintaining Composure, Mastering Change and Being Flexible, Initiating Action, Setting Work Standards, Having Integrity, Understanding Retail, and Having Customer Dedication. These behaviors were aggregated and analyzed as a single score as an overall dimension of behavior. This study was a unit-level analysis and participants were 180 stores (measured as units) from a large pet store retail chain. Archival databases were used. Data were collected during the 2002 fiscal year, from February 3, 2002 through January 31, 2003. This research study was based on employee-customer-financial performance relationships. Results indicated Associate Commitment to Manager and Service Climate related to Associate Turnover. Service Climate related to Customer Satisfaction. Associate Turnover related to Customer Satisfaction. Finally, Customer Satisfaction related to Store Contribution and Average Dollar Transaction. Future research should examine possibilities and alternatives to explanations of significant relationships found in the Service Profit Chain. Wiley (1991), Silvestro and Cross (2000), and this research study found results contrary to findings from the Service Profit Chain.
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