Influence of Human Resource Management Policy on Customer Loyalty

Kamilė Mitašiūnaitė

doi:10.15388/vgisc.2021.10

Abstract

The business would not be able to achieve the set goals without qualified specialists. Therefore human resource management is one of the most important processes to an organisation. HRM policy aspects – employee motivation and job satisfaction – directly contribute to customer satisfaction and loyalty. The problem is that in today’s business environment, where there is a big rivalry, maintaining customer loyalty becomes a huge task for the business. The aim of this article is to evaluate the impact of human resource management policy on customer loyalty. The article analyses concept of human resource management, evaluates the development of loyal customer behaviour, distinguishes traditional and innovative concepts of human resource management. Also, the article notices a relationship between employee satisfaction and customer satisfaction. Analysis of empirical research level shows the impact of human resource management policy on customer loyalty and provides a research model.

Highlights

Human resource management is one of the most important processes in an organisation
Researchers do not evaluate human resource management policy but emphasise that good service quality emerges from employee motivation
The model below demonstrates the relationship between innovative human resource management policy and customer loyalty

Summary

Introduction

Human resource management is one of the most important processes in an organisation. The organisation would have difficulty achieving its goals without qualified professionals. Researchers evaluate onlya few aspects of human resource management, such as employee loyalty, employee motivation, service quality. Human resource management helps to create the right work environment, motivates an employee to provide the best services possible. The main aspects that scientists use in their research to assess the relationship between human resource management policies and customer loyalty are: Human resource management policy that helps to evaluate the organisation’s approach to the employee and examines the essential elements of personnel management. Researchers do not evaluate human resource management policy but emphasise that good service quality emerges from employee motivation. Empirical research has shown that human resource management policy determines employee motivation and satisfaction. Not all researchers examine human resource management policy, they state that creating a good work environment encourages employees to provide the highest level of service. The model below demonstrates the relationship between innovative human resource management policy and customer loyalty

Attitudinal Behavioral loyalty loyalty

Conclusions