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To provide public sector organizations with a development map to achieve employee and customer satisfaction and to align organizational processes for goal achievement.

The paper re‐works the highly influential and widely validated service‐profit chain and presents an analogous model, which reflects the essential differences of public sector organizations.

It was found that there is a direct link between the achievement of the organizational goal and the organization's ethics and values. This indicates that goal achievement reinforces the legitimacy of the values and ethics as the basis for organizational success.

Presents a practical model and explains, with examples, how an organization might implement this model. Identifies how public organizations can measure their customer value variables.

Despite the popularity of the service‐profit chain there has been no model for the public sector. This has been identified as a need in the literature. Therefore, this paper presents a long overdue and much needed public sector model. The model has great value for all levels of governmental bureaucracy irrespective of core business or global location.

Service profit chain is a well‐received model to explain the sustainable competitiveness of many service organizations. The model attributes a service organization’s financial and market performance to its relationships with its customers and employees. According to the service profit chain, internal service quality serves the foundation of the model and it ignites a chain effect leading to an organization’s growth and profitability in the end. The purpose of this study is to provide an ad hoc analysis of two key elements of the service profit chain. Specifically, this research explores the direct linkage between performance in growth and profitability and quality of work life, which is a proxy for internal service quality in the service profit chain model. The performance of companies with a reputation of high quality of work life were contrasted to a control group of S&P 500 companies using COMPUSTAT data.

This paper aims to explore how artificial intelligence (AI) technologies have redefined the hospitality industry. It develops a theoretical framework to evaluate its impact on employee engagement, retention and productivity levels, stemming from its potential implications for service quality and customer satisfaction.

Based on the exploration of relevant literature, role theory and service-profit chain were used to develop – role-service-profit chain.

Role-service-profit chain is an analytical tool which has strong implications for investment and deployment analysis of the new technologies in hospitality and tourism businesses. It proposes how managers can evaluate how the role expectation of technological innovations relate to service quality and customer satisfaction through its impact on employee-related outcomes (such as employee engagement, retention and productivity), and assess the corresponding impact on profitability and growth, in the context of their own unique internal environment and position in the market.

Although an empirical assessment of the hypothesised relationships in the model is required to evaluate and validate it in the hospitality industry, role-service-profit chain presents promising implications for tourism and hospitality practice and future research.

Role-service-profit chain is an analytical tool from which managers can make improvements on talent and talent management practices and adjust expectations and behaviours in ways that facilitate improvements in service quality and customer satisfaction.

This paper makes an important contribution to hospitality and tourism literature, as it explores how AI technologies implemented to improve on talent and talent management practices impact on service quality and customer satisfaction, and develops analytical tools by which this may be evaluated.

The service-profit chain model (Heskett, Jones, Loverman, Sasser, & Schlesinger, 1994) highlights the well-documented relationship between employee and customer attitudes suggesting that employees who are satisfied and engaged with their work provide better customer service resulting in higher levels of customer satisfaction and, ultimately, driving firm revenue. The authors propose an expansion of the service-profit margin identifying the leadership behaviors that create positive employee attitudes and engagement. Specifically, the authors suggest that leaders who focus on recognition, involvement, growth and development, health and safety, and teamwork (Kelloway, Nielsen, & Dimoff, 2017) create a psychologically healthy workplace for customer service providers and, ultimately, an enhanced customer experience.

To provide an alternative view of customer value and service quality as conceptualized in the service‐profit chain.

A survey of the vast and diverse literature on the concepts of value and quality is used to reconceptualize these constructs as they are used in the service‐profit chain. The concept of intrinsic value and quality is proposed as an addition to the extrinsic value and quality concepts already apparent in the chain.

The service‐profit chain is based on the premise that profitability to a firm derives from customer satisfaction and loyalty, which, in turn, are derived from a customer's sense of value received. This value, it is argued, is calculated with reference to the perceived quality of what is received, balanced against the aggregated costs to the customer of availing themselves of the service. This paper questions the sufficiency of the assumption that value offered to a customer resides solely in the customer's perception of what has been experienced in and through the service encounter. Correspondingly, it is argued that value to the customer may reside also in intrinsic qualities or attributes of a service.

The idea of value and quality being built into a service offering (intrinsic) has value for both practising service managers and academic researchers. Several avenues for future investigation are posited.

Using a modified version of the service profit chain, the purpose of this paper is to examine the mediating role of service climate (SC) by exploring predictors of SC (i.e. service training (ST), managerial practices (MP), physical design (PD), and job design ( JD), job satisfaction ( JS), and employee empowerment) on service quality (SQ), client satisfaction (CS) with service, and client empowerment (CE). The larger proposition being that certain structural variables, through their impact on SC have the potential to positively influence outcomes in health care.

Registered nurses (N=180) from emergency departments across one province in Canada provided information about internal SQ (i.e. ST, MP, PD, and JD), JS, feelings of empowerment, and SC. Furthermore, these nurses provided information on external SQ, CS with service, and CE by responding to questions from the vantage point of the client. The data were analyzed using statistical package for the social sciences; structural equation modelling (SEM) was implemented using LISREL.

SEM analyses showed that JS and empowerment only partially mediated the relationship between MP, PD, and JD and SC. In addition, SQ, CS with service, and CE were fully mediated by SC.

A limitation of this study is that the researcher used only employee (nurses) data rather than employee and client data simultaneously in the research model. Future research should be done on the service profit chain theory to incorporate both viewpoints. In addition, research could be carried out in other service occupations and organizations to test the invariance of the research model.

The results should lead health care managers to consider the importance of emphasizing internal SQ features that facilitate SC in health care.

This contribution of this research is apply the service profit chain framework in exploring the role of SC in health care. In addition, emphasize the importance of the PD of emergency department to creating a climate for service in health care.

The hospitality industry has one of the most diversified workforces. This study aims to examine the effect of employees’ perceptions toward diversity management on the company’s financial performance. The current study also examines the moderating effect of board members’ diversity level on the association between employees’ perceptions and financial outcomes.

From online reviews, the authors identified multi-faucets of diversity management and measured employees’ perceptions of diversity management. Using panel data analysis, the relationships among employees’ perceptions, board members’ diversity level and companies’ financial performance were studied.

This study found that employees’ perceptions of diversity management positively influence the company’s financial performance and the relationship was positively moderated by board members’ diversity level.

Findings show that hospitality employees perceive nine diversity and inclusion categories (age, organizational climate, culture, disability, education, gender, physical differences, policy and practice and race) that companies need to consider when developing and implementing diversity management. Moreover, practitioners need to eliminate the gap between board members and employees when applying diversity management.

Drawing upon service–profit chain theory, this study extends hospitality literature regarding diversity management by demonstrating how employees perceive working environments created by diversity management affects the organizational financial outcome. Moreover, this study emphasizes the exemplary role of board members as policy and practice makers, to provide employees with the legitimacy and responsibilities of diversity management.

This chapter covers four main concepts: (a) providing an understanding of service; (b) organizing hospitality decisions and processes; (c) defining strategic service visions; and (d) dissecting operations strategies for hospitality services. In the first section, the definition of service, the five service dimensions, and the service package are covered. In the second section, hospitality decisions and processes are framed by service concepts and the service-profit chain. A service concept is the starting point for developing hospitality operations strategies, while the service-profit chain explains the link from customer satisfaction and customer loyalty to a service firm’s growth and profitability. In the third section, the strategic service vision is explored. Successful service firms all have a strategic service vision, which includes a set of ideas and actions organized in a systematic way to maximize a firm’s performance. In the fourth and final section, the operations strategy for hospitality services is covered. Successful service operations occur when management defines and adheres to a competitive operations strategy.

Based on the first part of the service profit chain, the purpose of this paper is to investigate the relationship between 11 spiritual management tactics and determinants of turnover intention.

A survey on managers and manufacturing employees is conducted. Later, the grey relational analysis to process the data is used together with the multi‐criteria‐weighted average in the decision‐making process to identify degree of relatedness between spiritual management and determinants of employee turnover intention.

The paper finds that a difference in perception between managers and employees exists with regard to appropriate spiritual management tactics; the former put more emphasis on the tangibles aspects; and the later on the intangibles.

This paper is an exploratory research; so there is lack of other empirical studies in this area, more work needs to be done in regard to reliability and validity of measures of spiritual management. The authors suggest cultural comparison to be studied, to see if those 11 spiritual management tactics has the same effect on employees' turnover in different cultural environments.

The results indicate that conducting appropriate spiritual management will benefit from reducing employee turnover and then increasing the firm performance.

This paper offers some concrete management suggestions both for the academy and the practice, especially in the new era of conceptual age.

The purpose of this paper is to compare the impact of the quality of employee enablers (in this case measured by the quality of the communication relationship between local government employees and supervisors) with the ideal “high quality social capital network” on the quality of outputs (such as employees' level of ambiguity in relation to customers and/or their level of productivity).

This research uses a concurrent nested mixed methods strategy – gaining the majority of the data from a cross‐sectional, survey‐based, self‐report strategy and supporting these findings with qualitative data.

The findings suggest that the quality of employee enablers did affect the quality of outputs and these conditions were ideal for achieving high quality service delivery. Employees experienced some level of dissatisfaction with communication frequency, mode, content and bi‐direction and this significantly contributed to their experiencing some level of ambiguity in relation to customers, ethical issues and their supervisors.

The sample is limited to local government employees that provided front‐line service to the public located within one state of Australia. Moreover, common methods bias is often cited as a problem of data obtained from self‐report surveys.

The implementation of NPM aimed to embed private sector practices within a public sector context so as to make the organisations more customer‐focused – however, the findings appear to be contrary to this aim.

The findings from this study provide another piece of evidence about the impact of recent reforms on the effectiveness of Australia's local government in providing the employee enablers to meet the needs of customers. As such, it provides a building‐block for further studies to review the impact of changes resulting from the implementation of NPM.