Thwarted psychological needs: the negative impact of customer mistreatment on service employees and the moderating role of empowerment HRM practices

Abstract

PurposeDrawing on self-determination theory (SDT), this study aims to understand the adverse effects of customer mistreatment on employee performance and well-being by thwarting the satisfaction of employees' basic psychological needs. It also examines how these negative effects may be mitigated by empowerment human resource management (HRM) practices.Design/methodology/approachTwo studies were conducted using survey data collected in China. In Study 1, cross-sectional data from 321 telemarketing employees were analyzed to examine how customer mistreatment reduces the satisfaction of employees' basic psychological needs, harming job performance and job satisfaction. In Study 2, multiwave, multisource data were collected from 149 property agents and their supervisors to replicate the findings of Study 1 and further test empowerment HRM as a moderator of the relationship between customer mistreatment and satisfaction of needs.FindingsThe results from both studies show that customer mistreatment leads to low job performance and job satisfaction via reduced satisfaction of employees' needs for autonomy and competence but not relatedness. Moreover, the negative effect on the satisfaction of employees' needs for autonomy and competence was buffered when organizations had high empowerment HRM practices in place.Originality/valueThis study provides new insights on customer mistreatment by understanding its effects from a motivational perspective, which has not been considered in prior research. It also explores how HRM practices can help satisfy employee needs in adverse work environments induced by customer mistreatment.