Customer-oriented HRM Practices: A Review and Reflections

Abstract

The objective of this review is to identify and explore customer-oriented human resource management practices of organizations based on the existing literature and reflections. It is widely acknowledged that there is a need to expand the existing body of literature on human resource management (HRM) and customer satisfaction regarding the functions of HRM. The review of the literature indicates that previous studies predominantly concentrated on a limited number of HRM functions, namely
training and development, performance management, and reward management when examining the integration of HRM with customer satisfaction. However, it is important to realize that HRM possesses a broader range of possibilities and opportunities for enhancing customer satisfaction within an organizational framework. Hence, this review incorporates diverse functions of HRM to explore the respective customer-oriented HRM practices under those functions. The findings of the review have identified and highlighted several customer-oriented HRM practices under the 12 functions of HRM such as job design, job analysis, human resource planning, recruitment, selection, induction, performance management, training and development, reward management, discipline management, health and safety management and employee relations. Further, identified customer-oriented HRM practices were categorized as customer-oriented competence and attitude-building practices, customer-oriented motivation-enhancing practices and customer-oriented employee involvement practices by using the lens of Ability-Motivation and Opportunity (AMO) theory.

Key Words: Customer Orientation, Customer Satisfaction, Human Resource Management, Practices