Importance Of Service Profit Chain Essays

1329 Words Nov 17th, 2016 6 Pages
Importance of Service Profit Chain in Management
Service profit chain is the essential idea in business management that connects the employee’s fulfillment, customer loyalty, and the financial gains (James & Heskett, 1997). Some of the human resource elements in the surface profit chain are internal service quality, employee satisfaction, employee retention, and productivity. Most of the hotels use the concept of the profit chain to succeed in their management. For example, the Marriott Hotel has thrived in its business management as it uses the surface profit chain concept to run and manage its work. Since he started his business in 1927, Marriott showed interest in all his employees and involved them in the management. He has been dedicated to meeting his customers’ requirements by being friendly and providing quality services. Some of the human resource elements that he uses include his interest in employees, dedication to customers, and hands-on-management. For success of a business, store size in service profit chain is an important determinant. The larger stores have larger profits than the smaller stores but employees’ satisfaction is high in the smaller store because they provide pleasant working environment for the staff. There are of two types; coasting stores and achieving stores. Both have different characteristics. The table below shows a summary of the characteristics of the high and low-performing stores.
Marriott is much concerned about his employees’…

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