Abstract
Purpose: The service profit chain (Heskett, Jones, Loveman, Sasser, Leonard & Schlesinger, 1994) consists of eight elements and has been explored in many industrial studies about how to balance the interfaces between staff, customers and profit. However, little exists in the hospitality industry as regrads application of either this model or its variables. By using three of the eight elements of this model, the three legged stool concept is derived (Shortal, 2003). This stool and its balance is the focus of this study. In the context of this research, each stool leg represents a vital, inter-related aspect of the hospitality industry that includes employee satisfaction, guest satisfaction and operational results. Literature reveiwed suggests a causal relationship between each of these aspects.
Research design: The positivist approach was adopted with a multi – method research field strategy. Affinity diagrams are used to identify unwanted guest outcomes. These outcomes are then reviewed from the perspective of employees.
Findings: After 40 e-guest surveys were analysed for complaints from each of 3 types of hotels within 1 South African hotel group. Negative complaints were assumed as identifiying gaps in customer expectation and subsequent received service. Three departments were identified as having the bulk of this negative guest feedback - front office, housekeeping, as well as food and beverage. Focus groups were conducted with employees (to identify how employee satisfaction affects employee performance) from these departments as well as semi structed interviews with general managers of these hotels (managers being responsible for the guest experience which affects operational results) to identify root causes for guest dissatisfaction and unbalancing between the stool legs.
Value: The research makes managerial recommendations from the findings for interventions that can be made in the guest satisfaction and employee satisfaction legs to improve organisational performance and thus profit.
M.A. (Tourism and Hospitality Management)