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Journal of Positive School Psychology http://journalppw.com
2023, Vol. 7, No. 3, 863-878
Relationship Amongst Opportunity-Enhancing HR Practices
Emotional Intelligence And Customer Satisfaction:
Empirical Evidence From Banking Sector
Sarah Azhara, Muhammad Aleemb, Abid Ahmadc, Naveed Tariqd
a Assistant Professor, University of Education Township Campus, Lahore, Pakistan
b and c Department of Management Sciences, CECOS University of IT and Emerging Sciences Peshawar, Pakistan.
*Corresponding author E-mail: aleem@cecos.edu.pk
d Department of Management Sciences, Qurtuba University of Science and Information Technology, Peshawar,
Pakistan
Abstract
This study defines and expound the relationship between opportunity-enhancing HR practices (O-HRM)
and customer satisfaction (CS) through the mediating role of emotional intelligence (EI). This study
illustrates the relationship between opportunity-enhancing HR practices (O-HRM) and customer
satisfaction (CS). Opportunity-enhancing HR practices embrace job involvement (JI) and job design (JD).
The mediating role of emotional intelligence (EI) is tested within the relationship of opportunity-enhancing
HR practices (O-HRM) and customer satisfaction (CS). The study was conducted on a group of 467
employees and same number of customers from 126 banks branches operating in Punjab, Pakistan.
Structural equation modeling (SEM) was used in the process of statistical analysis. The research confirmed
a significant statistical relationship between all studied variables i.e., O-HRM, EI and CS. It was concluded,
based on the analysis, using SEM, that opportunity-enhancing HR practices (O-HRM) have direct impact
on customer satisfaction (CS), and indirect influence through emotional intelligence (EI). Cross-sectional
design and use of self-reported questionnaire data are limitations of this study. The results of this research
extend the knowledge in the area of customer service outcomes, with aspects of HR practices and emotional
intelligence at workplace settings in the organizations in banking sector. In the light of results discussed
above, there is sufficient evidence that the cluster of HRM practices working in bundles within the banking
sector can play a decisive role for enhancing the EI of banking employees. This study further signifies the
importance and usefulness of EI by empirical evidence of its link with outcome of CS in banking sector.
The results of this research extend the knowledge in the area of customer service outcomes, with aspects of
HR practices and emotional intelligence at workplace settings in the organizations in banking sector.
Key words: Opportunity-enhancing HR practices, Emotional intelligence, Customer satisfaction
Introduction
In a progressive competitive environment,
customer custody is one of the important
doctrines of a successful business (Colgate &
Danaher, 2000). At the same time service
industry is growing continuously (Henderson,
2012), and achieving exceptional customer’s
service is a challenge (Liao & Chuang, 2007). For
this, with the passage of time, literature has
focused to identify the different kinds of services
relationships (Gutek, 1995) which would
demonstrate outcomes of relationship marketing
Sarah Azhar 864
and would also help to understand the motivation
to engage the customers in service relationships
(Gwinner, Gremler, & Bitner, 1998).
Conversely a tributary of services linkage work
(Wiley, 1996) is revealed which has examined
relationship of internal management mechanism
of service organizations and outside customers’
outcome (Liao & Chuang, 2004). Foundation of
such stream of literature was that front line
employees, no doubt, contribute the vital part in
introducing how organization functions in a
desired manner of customer outcomes.Front-line
employees of service organizations representing
the agenda of organizations play a vital role in
service encounters involving dynamic interaction
between consumers and the workers (Solomon,
Suprenant, Czepiel, & Gutman,
1985).Empirically tested research reflects that
higher the individuals are capable to offer high-
standard services; the more consumers are
expected to show positive assessment of services
interaction, enjoy greater satisfaction which
resultantly enhance the buying and also
possibility of next visit (Borucki & Burke, 1999).
So, for this reason it is necessary to know that
what would predict the employees’ service
functioning.For better comprehension of those
reasons which can affect the emotional
performance, many scholars have examined the
‘emotional labor’. The study of emotional labor
demonstrates the emotional intelligence to be
strong predictor of emotional performance
(Joseph & Newman, 2010) as well as the
customer satisfaction (Giardini & Frese, 2006).
Organizations may influence emotional
labor through human resource (HR) practices
(Pugh, Diefendorff, & Moran, 2013) ), for
instance, to train the employees about displaying
proper feelings and presenting the incentives
system which would benefit the emotional
performance. But despite significance of HR
systems, application of integrative theory of HR
systems on emotional labor is still undeveloped.
Although some work has established the role of
different HR practices to decrease employees’
emotional exhaustion (Chen & Lin, 2009), but
this effort is mere a beginning towards the
broader concept of ‘emotional labor’ (HR)
practices.
Pugh et al. (2013) has reviewed the
available work in admiration of the impact of HR
on emotional labor, but research also reveals that
majority of work is quantitative in nature (Poster,
2011).As per Jiang, Lepak, Han, et al. (2012)
HRM researches recommended focusing on HR
practices in bundles instead of separate practices
as the basic set of examination while
investigating the effect of (HR) system upon the
personal as well as the organizational
performance. HR practices refer those
fundamental factors that may affect the
employees in terms of their skills and behaviors
in an organization so as to perform for achieving
targets of the organization (Chen & Huang, 2009;
Collins & Smith, 2006).
The purpose of the study presented in this
article is to describe and explain the relationship
between the Opportunity-enhancing HR practices
(job involvement & job design), emotional
intelligence and customer satisfaction. Proposed
theoretical model is depicted in Figure 1. At the
basic level, it could be claimed that opportunity-
enhancing HR practices, manifesting itself
through acceptance of employee, is related to
customer satisfaction. However, opportunity-
enhancing HR practices are insufficient
determinant of customer satisfaction. Hence, it
was suggested that emotional intelligence acts as
an intervening variable between opportunity-
enhancing HR practices and customer
satisfaction.
Lastly, this study contributes to the
understanding of how these variables are related
in the context of a developing country in banking
sector. Justification for selecting banking sector
for this research is the empirical evidence that
banking sector is facing a challenge to manage
865 Journal of Positive School Psychology
customer satisfaction. (Khan, M. M., & Fasih, M.
2014; Naeem, Akram & Saif 2011). The service
sector has a huge proportion of local and global
employment, too. Hence, because of its fast and
continual growth, the scope and the economic
potential of this sector have not yet been
researched extensively (Wamboye & Nyaronga,
2018).
Literature Review
Opportunity-enhancing HR practices
HR practices are the fundamental means which
can influence and shape the skills and behaviors
of individuals in the firms to do their work for
achieving organizational goals (Chen & Huang,
2009). HR systems are also known as (HR) policy
domains (Jiang, Lepak, Hu, et.al. 2012). Three
HR policies domain include ability and skill HR
domain, motivation & effort HR domain, and
opportunities to contribute the HR domain.Jiang,
Lepak, Han, et al. (2012) clustered opportunity-
enhancing HR practices by way of including job
involvement and job design .
Emotional intelligence: The part of emotions in
service interactions are addressed by tributaries
of emotional labor (Hochschild 1983). Majority
of the models of emotional labor contain at three-
dimensional procedure which includes emotional
display rules, emotion regulation, and emotional
displays (Grandey & Gabriel, 2015). Emotional
intelligence is thus defined as: “The ability to
perceive emotion, integrate emotion to facilitate
thought, understand emotions, and to regulate
emotions to promote personal growth (Mayer &
Salovey, 1997).”
Customer satisfaction: Conventionally, the term
satisfaction was explained as just a state of mind,
being affected by perceptive precursors (Bigné,
Andreu, & Gnoth, 2005). Hunt (1993) says that
broadly speaking satisfaction is perceptive
assessment of experience of emotions by the
customers.
Hunt (1993) says that broadly speaking
satisfaction is perceptive assessment of
experience of emotions by the customers.
Consumption related view considers it as
something which relates to the experience of
having consumed something (Oliver, 1981).
Transactional features of emotions take into
consideration the attitude and also how customers
perceive quality of services and as being, so it is
something the difference laying between
evaluation and satisfaction of customers. This
view generally considers the overall construct in
a manner of making extended and wide
evaluation of services facilities that would not be
related with some specific experiences of
consumption (Hennig-Thurau & Klee 1997).
Furthermore, satisfaction is a statement of mind
that germinate from an evaluation process, such
as when a consumer of a goods or services make
a comparison between what he or she received
and the expected utility goods or services (Kotler,
Keller, Koshy, & Jha, 2009).
Opportunity-enhancing HR practices and
emotional intelligence: According to Jiang,
Lepak, Han, et al. (2012) job design and job
involvement are well considered to increase
employees’ opportunity to participate at work.
Opportunity -enhancing practices of HR seem
intrinsic in features as compared to the practices
of motivation -enhancing (Jiang, Lepak, Han, et
al., 2012). The concept of interactional autonomy
has been found in line with job autonomy an
established dimension of job design (Hackman &
Oldham, 1976). The literature of job design
explains how autonomy of attitude has got a
pivotal role to understand motivation and stress at
workplace. The sense of independence in a
permitted environment of choice in work, the
employees seem themselves motivated in their
conscious that enables them to perform more
effectively to meet with job demands. On the
Sarah Azhar 866
other hand, in a bit-controlled situation there is
more probability of feeling themselves as bit
stressed (Deci, Connell, & Ryan, 1989; Spector,
1986). The leadership may boost interactional
autonomy (service employee empowerment) by
way of giving support and honor to employees
(Corsun & Enz, 1999). This might also be
achieved through technical resources for
managing the tough job of interacting with
customers particularly while dealing with
complaints as it may decrease the stress of such
interaction (Ben-Zur& Yagil, 2005). Therefore,
such dimension of public interaction in job design
as motivated and satisfied can also absolutely be
applied in those circumstances where usual
interactions are comparatively volunteer or in
particular situation when employees are fully
empowered through policies of management
(Grant & Parker, 2009). On the basis of above-
mentioned literature and arguments it can be
safely assumed that opportunity-enhancing HR
practices (job involvement & job design) are
correlated with the emotional intelligence of
employees.
H1a: There is a significant relationship between
job involvement and emotional intelligence of
employees.
H1b: There is a significant relationship between
job design and emotional intelligence of
employees.
Emotional intelligence and customer
satisfaction: The study of emotional labor
demonstrates the emotional intelligence to be
strong predictor of emotional performance
(Joseph & Newman, 2010) as well as the
customer satisfaction (Giardini & Frese, 2006). In
ordinary course of nature, the higher the
emotional display, the more would be customer
satisfaction and intention to return as well
(Barger & Grandey 2006).Physical gestures like
smile, remarks with eyes and soft tone, all part of
positive display, have impacts on evaluation of
service by customers through feelings of
satisfaction and friendly attitudes in service
sector(Gabriel, Acosta, et al.2015).On the basis
of above mentioned literature and arguments it
can be safely assumed that employee emotional
intelligence positively affects customer
satisfaction.
H2: There is a significant relationship between
emotional intelligence and customer satisfaction.
Opportunity-enhancing HR practices and
customer satisfaction
Once the employees perceive HR practices to
offer fairly by the management, they naturally
feel dedicated while putting their best into
exercise in terms of both their energy and
resources for developing an effective dealing
with the customers (Ulrich, Halbrook, Meder,
Stuchlik, & Thorpe 1991). On the same lines
Zerbe, Dobni, and Harel (1998) noted that
‘employee perceptions of HRM practices’ was
directly related with their service behavior.
According to Schneider (1994) employees’
perception of HRM practices was observed as
having significant relation with customers that
how they perceive the service quality. In previous
studies the relationship of employees’ perception
of HR practices with the way customers rate the
organizational service effectiveness was found as
positive (Hung, 2006; Hoque 2000a,b). Few
studies in Pakistan have pointed out the
significant effect of service quality in banking
sector on customer satisfaction in many banking
operations including the e-banking (Shams,
Radmand & Batoie, 2013; Zafar, Zaheer &
Rehman, 2011). Moving further study of Taiwan
hotel industry has revealed that there is positive
relationship of HRM practices with service
performance (Rust & Oliver, 1993). Employees’
‘job satisfaction’ has been noticed having a
positive relationship with ‘internal service
quality’ in HRM comprising standardized
practices followed by the banking sector of
Pakistan. On the basis of above-mentioned
867 Journal of Positive School Psychology
literature and arguments it can be safely assumed
that.
H3a: There is a significant relationship between
job involvement and customer satisfaction.
H3b: There is a significant relationship between
job design and customer satisfaction.
Mediating role of emotional intelligence
Pugh, Diefendorff, and Moran (2013) have
suggested a way to attain target of emotional
labor through implementing the HR practices, for
instance to train the employees the manner they
can display their emotional behavior and
expected incentives for customers in such a
proper way that emotional performance can be
marginally rewarded. However, yet the theory of
integrated HR practices is undeveloped. Previous
research has demonstrated that emotional
performance is related with outcomes of
customer service like customer satisfaction
(Gabriel, Acosta, & Grandey, 2015).Though
Chen and Lin (2009) have made an effort to
demonstrate how HR policies may decrease the
employees feeling emotionally exhausted, but
obviously same is just a beginning towards the
broader canvas of (HR) practices in this field of
emotional labor. On the basis of above discussion
therefore it is hypothesized as:
H4a: Emotional intelligence mediate the
relationship between job involvement and
customer satisfaction.
H4b: Emotional intelligence mediate the
relationship between job design and customer
satisfaction.
Research Model
The model in figure1 displays conceptual
framework of current study.
H1a: There is a significant relationship between
job involvement and emotional intelligence of
employees.
H1b: There is a significant relationship between
job design and emotional intelligence of
employees.
H2: There is a significant relationship between
emotional intelligence and customer satisfaction.
H3a: There is a significant relationship between
job involvement and customer satisfaction.
H3b: There is a significant relationship between
job design and customer satisfaction.
H4a: Emotional intelligence mediate the
relationship between job involvement and
customer satisfaction.
H4b: Emotional intelligence mediate the
relationship between job design and customer
satisfaction.
Fig 1: Conceptual Framework
Research Methodology
Participants and procedure
The setting of the current study is the banking
sector of Punjab, Pakistan. The study was
conducted anonymously on 467 employees and
same number of customers from 126 branches of
banks operating in 09 administrative divisions of
Punjab, Pakistan. The banks were selected
randomly for participation in this study. From the
selected bank branches employees were selected
randomly as a sample for this study. Customers
JI
JD
EI
CS
Sarah Azhar 868
were selected from sampled branches of banks.
Unit of Analysis is dyad (banking employees &
customer) in banking sector.
All research questionnaires were made available
to bank employees in the English language and
the process of their adaptation was based on
checking the tool’s reliability through pilot
studies. While questionnaire for bank customers
was prepared both in English and Urdu,
translational equivalence was established by the
process of translation and back translation.
The statistical analyses were performed using
SPSS software, version 21. For the verification of
the hypotheses and mapping out the paths of
relationships between the variables, the PLS-
SEM approach was used. For analysis and
presentation of output specifically Smart PLS
3.2.7 program was employed (Ringle, Wende,
and Will, 2005).
Measurement of the Variables
A five-point Likert scale ranging from strongly
disagrees to strongly agree is be used for all
variables. The conducted survey took into
consideration the following set of variables.
Opportunity-enhancing HR practices:
Opportunity-enhancing HR practices include a
scale on job involvement and job design.
Job Involvement: A 3- item scale has measured
this construct. The items of this scale have been
adopted from the study of Kanungo (1982).
Example of sample item is “I am really interested
in my work”. Higher scores reflected positive
perceptions about job involvement in the bank
employees.
Job design: A 4-item scale has measured this
construct. The items of this scale have been
adopted from the study of Ma Prieto, I., & Pilar
Perez-Santana, M. (2014). “Employees in this
organization have broadly designed jobs
requiring a variety of skills.” is an example of
items. Higher score reflected positive perceptions
about the job design programs for employees.
Emotional intelligence: The scale requires
participants to rate their agreement to a list of 16
statements on a 5-point Likert format-scale from
1(Totally Disagree) to 5 (Totally Agree). These
items have been adopted from Emotional
Intelligence Scale by Law, K. S., Wong, C. S., &
Song, L. J. (2004).
Customer satisfaction: A 3 -item scale has
measured this construct. The items of this scale
have been adopted from the study of Maxham, J.
G., & Netemeyer, R. G. (2002). “I am satisfied
with my overall experience with this bank” is an
example of items. Higher scores indicated
customers are satisfied with in the bank. The scale
requires participants to rate their agreement on a
5-point likert scale from 1(not at all satisfied) to
5 (extremely satisfied).
Results
A PLS path model was used to study the
relationships between different variables and the
weight played by each on the others. The analysis
was developed using Smart PLS 3.2.7 software
(http://www.smartpls.de/).The results in this
study shows measurement Model and structural
model analyzed using SmartPLS3.
Assessment of Measurement Model
Factor analysis was carried out to examine the
factor structure of the items relating to HR
practices, emotional intelligence and customer
satisfaction. The scales with their appropriate
items were then developed into constructs based
upon their factor loadings. The hypotheses were
then tested using partial least squares (PLS) path
models. To assess the ‘indicator reliability’, the
loadings of all the PLS analysis reflective
indicators were examined and found that all the
outer loadings were greater than 0.4, as suggested
by Churchill (1979).
869 Journal of Positive School Psychology
Establishing convergent and discriminant validity
in PLS requires an appropriate AVE (average
variance extracted) analysis. Table 1 showed the
factor loadings, composite reliability and average
variance extract that are used to access the
convergent validity of constructs. Convergent
validity of constructs is measured by using
average variance extract and composite
reliability. The value of AVE for all constructs is
above 0.50, and composite reliability is greater
than 0.7, indicating that convergent validity of all
constructs has been established.
Table 1: Confirmatory Factor Analysis (CFA)
Constructs
Items
Loadings
Alpha
CR
AVE
Job involvement
0.700
0.819
0.602
JI1
0.728
JI2
0.803
JI3
0.795
Job design
0.774
0.855
0.595
JD1
0.757
JD2
0.789
JD3
0.778
JD4
0.763
Emotional intelligence
0.906
0.919
0.517
EI1
0.602
EI2
0.701
EI3
0.724
EI4
0.671
EI5
0.630
EI6
0.630
EI7
0.618
EI8
0.622
EI9
0.659
EI10
0.567
EI11
0.664
EI12
0.697
EI13
0.633
EI14
0.638
EI15
0.581
EI16
0.640
Customer satisfaction
0.733
0.882
0.789
CS1
0.896
CS3
0.880
Sarah Azhar 870
Fig 2: Confirmatory factor analysis
Table 2 divulged the outcomes of discriminant
validity evaluation of under study variables.
Along the diagonal, result shows the square root
of AVE for all constructs. All the square roots of
AVE for constructs are higher than the off-
diagonal elements or coefficients in the
corresponding columns and rows, hence
establishing an evidence of discriminant validity.
Table 2: Discriminant Validity
Variables
CS
EI
JD
JI
CS
0.888
EI
0.476
0.646
JD
0.531
0.632
0.772
JI
0.496
0.597
0.595
0.776
Assessment of structural model
Direct Effects. To understand the main
relationship effects within the constructs, SEM
PLS structural model analysis was conducted.
Study used bootstrapping procedure to assess the
significance of path coefficients (Table 3).
Hypothesis H1a predicted an effect of job
involvement on emotional intelligence. Results
determined a significant positive effect of job
involvement on emotional intelligence (β =
0.343, t = 8.284), hence hypothesis H1a is
supported. Hypothesis H1b predicted an effect of
job design on emotional intelligence. Results
determined a significant positive effect of job
design on emotional intelligence (β = 0.427, t =
9.236), hence hypothesis H1b is also supported.
Hypothesis H2 predicted an effect of emotional
intelligence on customer satisfaction. Results
determined a significant positive effect of
emotional intelligence on customer satisfaction
(β = 0.150, t = 2.337), hence hypothesis H2 is also
supported. Hypothesis H3a predicted an effect of
job involvement on customer satisfaction. Results
871 Journal of Positive School Psychology
determined a significant positive effect of job
involvement on customer satisfaction (β = 0.226,
t = 4.093), hence hypothesis H3a is supported.
Hypothesis H3b predicted an effect of job design
on customer satisfaction. Results determined a
significant positive effect of job design on
customer satisfaction (β = 0.302, t = 5.766), hence
hypothesis H3b is supported.
Table 3: Path modeling
Hypothesis
Relationship
Std. Beta
S.E.
t-Value
Decision
H1a
JI -> EI
0.343
0.041
8.284
Supported
H1b
JD -> EI
0.427
0.46
9.236
Supported
H2
EI -> CS
0.150
0.064
2.337
Supported
H3a
JI -> CS
0.226
0.042
4.093
Supported
H3b
JD -> CS
0.302
0.055
5.766
Supported
Mediation analysis: The bootstrapping analysis
in table 4 shows results of all indirect effects
.Hypothesis H4a with indirect effect JI -> EI ->
CS was significant (β =0.052, t = 2.180). As
indicated by Preacher and Hayes (2008) the
indirect effects 95% Boot CI as showed in table
4: [LL = 0.007, UL = 0.100], did not straddle a 0
in between indicating there is mediation. Thus, it
can be concluded that the mediation effect is
statistically significant indicating that H4a was
supported. Hypothesis H4b with indirect effect
JD -> EI -> CS was significant (β =0.064, t =
2.316 with [LL = 0.010, UL = 0.119], did not
straddle a 0 in between indicating there is
mediation. Thus, it can be concluded that the
mediation effect is statistically significant
indicating that H4b was also supported.
Table 4: Mediation Analysis
Hypothesis
Relationship
Std.
beta
Std.
error
T
Statistics
Lower
Limit
Upper
Limit
Decision
H4a
JI -> EI->CS
0.052
0.024
2.180
0.007
0.100
Supported
H4b
JD->EI-> CS
0.064
0.028
2.316
0.010
0.119
Supported
Sarah Azhar 872
Discussion
This research contributes to the field of customer
services by providing empirical evidence of the
relationship between opportunity-enhancing
practices, emotional intelligence and customer
satisfaction.
The results highlight that opportunity-enhancing
HR practices were observed to be a significant
determinant of ‘emotional intelligence’ of
employees. In customer service organizations,
opportunity-enhancing HR practices concentrate
how to make it happen that employees do
embrace themselves with required emotional
abilities for delivering proper emotional
performance.
As compared to ability and motivation-enhancing
HR policy domains, far little research in the field
of ‘emotional labor’ is made on opportunity-
enhancing HR practices. Generally, Jiang, Lepak,
Han, et al. (2012) has clustered opportunity-
enhancing HR practices in two components i.e. JI
(job involvement) and JD (job design). He has
articulated those individual practices i.e.
empowerment, voice, employee participation and
information sharing can be included in this
domain. Furthermore, Jiang, Lepak, Hu, et al.
(2012) proposed that above practices intend to
aim intrinsic motivation to engage oneself in
emotional labor, provided that such practices
embolden the workforce to rise and accept
challenging task at workplace. These practices
show resonance with the recognition of identity
in jobs requiring emotional labor.
Once the employees get to know their role at
workplace it is quite normal that negative impacts
of emotional labor would diminish at the cost of
enhancing positive impacts (Ashforth &
Humphrey1993). These demonstrated conditions
have empirical support from the work of
Schaubroeck and Jones (2000) who has suggested
that increased ratio of job identification decreased
the employees’ state of ill-being. Hence plenty of
fortunes are expected from intrinsic motivation of
employees and better identification of emotional
labor demands caused by the extended help of
‘opportunity-enhancing practices’ embedded in
management policy.
Some of the emerging research has also
suggested that matters relating to ‘job
involvement’ or ‘job control’ may provide
interesting incentives for employees working in
emotional labor jobs. For example, Pugliesi
(1999) has demonstrated that job control (e.g., I
make decisions about how to do my work) as well
as the complexity (e.g., I keep learning new
things in my position) were noted as having
positive relationship with job satisfaction in
emotionally laden jobs. Feelings of control have
also been found negatively related with stress.
Similarly the output noted by Erickson and
Wharton (1997) have also suggested the feeling
of control on his/her work task was found to be
negatively related with uncertainty and
depressive mood. When connected with
emerging performance made on job design, it is
quite possible that ‘opportunity-enhancing HR
practices’ do contain the strength of impacting in
a positive manner on the well-being of employees
in the emotionally laden jobs. As much as the
employees are autonomous in emotional display
(Grandey et al., 2012) by way of encouraging
them to develop service relationship (Gabriel,
Acosta, et al., 2015) or through permitting them
to express their natural emotions, the true nature
of motivation for regulating their emotions may
be enhanced which would also affect their overall
motivation to express appropriate emotions at
workplace (Diefendorff et al., 2005).
In the context of the present study, employees’
emotional intelligence increases customer
satisfaction. Emotional performance has been
defined as the expression of behaviors through
attitude being reflective of set patterns of
organizations (Hu¨lsheger & Schewe 2011), and
same are mostly considered as basic determinants
of service industry (Diefendorff et al. 2006).In
ordinary course of nature, the higher the
emotional display, the more would be customer
873 Journal of Positive School Psychology
satisfaction and intention to return as well (
Barger & Grandey 2006).Physical gestures like
passing smile, giving eyes contact as well as soft
pitch of voice are relevant to satisfaction of
consumers in many ways (Barger &Grandey
2006). Researchers through data collection
observed that dealings of consumers, by
receiving team of banks, with smile on face in
process of providing service, stood as cause of
satisfaction level just after availing the services.
The analysis revealed such welcoming behavior
was found related with satisfaction of customers.
Gabriel, Acosta, et al. (2015) noted smile,
remarks with eyes and soft tone all part of
positive display have impacts on evaluation of
service by customers through feelings of
satisfaction and friendly attitudes in service
sector.
Anticipation of good effects of employee’s
positive emotional display is gathered from the
study of marketing in the quality of service. It was
also noted that assessment for the quality-of-
service means comparing expected image of
customers with perceiving real experience of
service (Parasuraman, Zeithaml &Berry, 1985).
There is possibility that employee positive
emotional display either come up to the standard
or even goes beyond the standard of customer’s
criterion that how they be entertained which
would lead to high assessment of service quality.
In the present study, opportunity-enhancing HR
practices constituted an independent variable,
whose indirect influence on customer satisfaction
was performed through emotional intelligence.
Since the service industry is continuously
growing (Henderson, 2012), so the firms have to
face major challenges to ensure extra ordinary
services for customers to get the minimum target
level of output (Liao & Chuang, 2007). For this
challenge, the firms usually rely upon the front-
line employees to deliver services in a pleasant
smiling way by way of applying emotional labor
for regulating their emotions to comply with the
emotional display expectations (Hochschild,
1983). Consequently, it will affect positively the
consumer-oriented targets (Grandey, 2000). The
researchers (Pugh, Diefendorff, and Moran,2013)
have suggested a way to attain target of emotional
labor through implementing the HR practices, for
instance to train the employees the manner they
can display their emotional behavior and
expected incentives for customers in such a
proper way that emotional performance can be
marginally rewarded. However, yet the theory of
integrated HR practices is undeveloped.
Previous research has demonstrated that
emotional intelligence is related with outcomes of
customer service like customer satisfaction
(Gabriel, Acosta, & Grandey, 2015). After
knowing its significance related to outcomes of
customer service, there is no extensive work
available to highlight the ways and strategy
which the firms may apply for positive affect on
capabilities and regulation of employees. Though
Chen and Lin (2009) have made an effort to
demonstrate how HR policies may decrease the
employees feeling emotionally exhausted, but
obviously same is just a beginning towards the
broader canvas of (HR) practices in this field of
emotional labor.
Results regarding the mediating effects of
emotional performance represent the major
contributions for this study because the literature
was unable to find much evidence to support the
claim of mediation of emotional performance on
the relationship between HR practices and
customer service outcomes.
Implication for theory and practice
This study contributes to the existing body of
knowledge in management theory in several
ways. Empirically supported bundle of
opportunity-enhancing HR practices can
manipulate the satisfaction and interest of
customers of banking sector and this important
link is fostered by the mediating role of emotional
intelligence of banking employee. Moreover, the
organizations can also evaluate job design system
Sarah Azhar 874
for employee handling to prolong their
committed stay in respective organizations.
Besides to acquire high standard of committed
employees, the organizations must introduce and
implement new job design patterns for their
employees to meet challenges of open
competition in service industry
For last two decades banks and its related all
financial services industry experienced a lot of
reforms which was necessary for to adopt. This
scenario demanded the examination of the
variables under study in order to have an insight
how customer services outcome can be enhanced
in the banking sector in a well-planned manner
This study has taken up an employee viewpoint
to explain their real experiences with the HR
practices so that relationship between
opportunity-enhancing HR practices and
customer satisfaction be documented more
certainly.
This study has explored a relatively new tool of
analysis (i.e., PLS) to explain the structural
relationship between the constructs of this study.
The PLS tool provided a new framework for
comparisons of results obtained from previous
studies that used different tools of analysis.
Conclusion
This research thesis attempts to supplement and
test the integrated model which links emotional
intelligence to opportunity-enhancing HR
practices. Moreover, this study further signifies
the importance and usefulness of emotional
intelligence by empirical evidence of its link with
outcome of customer satisfaction in banking
sector.
This research attempts to supplement and test the
integrated model which links EI to HR practices.
In the light of results discussed above, there is
sufficient evidence that the culture of HRM
practices working in bundles within the banking
sector can play a decisive role for enhancing the
EI of banking employees. This study further
signifies the importance and usefulness of EI by
empirical evidence of its link with outcome of CS
in banking sector. The findings of thesis present
compelling empirical evidence that EI of
employees is one of basic drivers of
organizational success, it can yet be safely
concluded that organizations in general and
banking sector in particular are likely to reap
substantial benefits if they have a workforce
enriched in EI.This study provides a deep insight
on how CS can be enhanced in the banking sector
in a well-planned manner.
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