Impact of Organizational Control and Reward Systems on Service Quality: An Empirical Study

Abstract

This study explores the influence of the organizational control and reward systems on the commitment and service quality of staff. A group of front-line service staffs handling sales tasks served as a sample to test the hypothesized model. Results using a structural equation model indicated that service staffs who operate under a behavior-based control system have higher organizational and professional commitment, and thus produce a higher service quality compared with those who work under an outcome-based control system. Moreover, a higher fixed salary percentage leads to higher professional commitment of service staffs. Organizational and professional commitments positively influence service quality. The implications of the findings are considered and suggestions for future research are provided.