ExecutiveSummaryCustomercontactworkersroutinelyfacecompetingexpectationsfrommanagementandcustomersWhilemanagementexpectscustomercontactworkerstofollowtheirrulesinordertoprovideefficientandconsisten ID: 330825
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Whostheboss?ContendingwithcompetingexpectationsfromcustomersandKimberlyA.Eddleston,DeborahL.Kidder,andBarrieE.Litzky ExecutiveSummaryCustomer-contactworkersroutinelyfacecompetingexpectationsfrommanagementandcustomers.Whilemanagementexpectscustomer-contactworkerstofollowtheirrulesinordertoprovideefficientandconsistenthigh-qualityservice,customersoftenhaveneedsandrequeststhatrequirecustomer-contactworkerstobendtherulesinordertofulfillthem.Whencustomers,throughcommissions,tips,orothermeans,directlyrewardthesecustomer-contactworkers,thedilemmabecomesevenmoreintense.Whilethisproblemiswell-established,weknowlittleabouthowandwhycustomer-contactworkerschoosebetweensatisfyingcustomerormanagementexpectations.Ourstudyexaminestheprocessthatcustomer-contactworkersgothroughtomakethischoice.Bydevelopingpsychologicalcontractswithbothcustomersandmanagement,customer-contactworkersbalancethecostsandbenefitsassociatedwithmeeting/notmeetingtheircompetingexpectations.Inordertomitigatetheproblemofcustomer-contactworkerschoosingtosatisfythecustomerattheexpenseofmanagement,managersneedtodeveloprelationalcontractswiththeiremployees.Aspharmaceuticalsalesrepresentatives,weareallowedtogivesomeincentivestothedoctors.Forexample,twiceayearwecansendafewofthemongolftrips.OnceinawhileIgetanofferfromadoctorthathellprescribemyproductscontinuallyinex-changeforaguaranteethathegetsthetrip.Wearenotsupposedtopickthesamedoctorseveryyear,andcertainlynotindirectex-changeforthepromisetouseourproducts.Butyouknow,whenyouareclosetoquotabutnotquitethere,itistempting.WhenIleftmylastfirmandwashiredhere,itwaswithabigpromotion.Additionally,IgetbigmoneywhenIbringnewclientsin.Aclientattheoldfirm,ahugemoneyclient,expressedinterestinfollowingme.IknowthatthekindsofthingsIcoulddotokeepthemhappybeforewontflyhere.ButifIsignthemtoacontract,well,Igetthebonus,andthenIwontreallyhavetodealwiththem.ThestaffaccountantswillhavetofacemyoldTheabovescenariosareexamplesofhowcustomer-contactworkersoftenexperiencecompetingex-pectationsfrommanagementandtheircustomers.Managementinstillsrulesandcontrolstopromoteorganizationalefficiencieswhilecustomersoftenhaveneedsandrequeststhatrequirecustomer-contactworkerstomakeadjustmentstothesystem(i.e.,bendtherules).Suchcompetingexpectationsplacecustomer-contactworkersinanawkwardsit-uationwheretheyoftenfeelaneedtochoosebe-tweensatisfyingmanagementrulesorsatisfyingthecustomer.Ourarticleexaminesthisquandaryandsuggestshowmanagerscanbetteraligntheirexpectationsofcustomer-contactworkerswiththoseofcustomersandencouragecustomer-contactworkerstofollowmanagementruleswhilestillsatisfyingcustomers.AcademyofManagementExecutive,2002,Vol.16,No.4 ........................................................................................................................................................................85 Webeginbydescribingtheimportantrolethatcustomer-contactworkersplayinsatisfyingcus-tomers.Inparticular,wefocusoncustomer-contactworkerswhoreceivebothcompensationfromman-agementandcommissionsortipsfromcustomers.Suchcompensationgivesbothmanagementandcustomerssomecontroloverthebehaviorsofcus-tomer-contactworkers,therebyleadingtoconflictforworkerswhenthetwosetsofexpectationscon-flict.Wefollowthisdiscussionwithanoverviewofpsychologicalcontracttheory,whichweusetoframeourstudyresults.Next,wepresentourfind-ingsandoffersuggestionsformanagers.TheRoleofCustomer-ContactWorkersDeliveringconsistenthigh-qualityserviceises-sentialforsuccessandsurvivalintodayscompet-itiveenvironment.Companiesthatoffersuperiorserviceachieveincreasedmarketshareandareabletochargepremiumprices.Forservice-orientedfirms,unlikepuremanufacturingorgani-zations,thecustomeraddsanelementofuncer-taintytotheproductionprocess,becausecustomersaretheonestodecidewhetherornottheyhavereceivedhigh-qualityservice.Customer-contactworkersmusttrytosatisfycus-tomerswhobringvariedandchangingexpecta-tionstotheproductionprocess. Deliveringconsistenthigh-qualityserviceisessentialforsuccessandsurvivalintodayscompetitiveenvironment. Whencustomersexpectlittleornoadaptationonthepartoftheserviceorganization,theirpercep-tionofservicequalitymaybebasedongettingwhattheyexpectwithnosurprises.Butwhencustomersexpectagreatdealofadaptation,theirjudgmentofservicequalitymaybebasedonthecustomer-contactworkersabilityanddiscretiontobendtherules.Therefore,beingabletosatisfycustomerswithspecialneedsorwishescancreateadilemmaforcustomer-contactworkers.Theyneedtodecide,oftenonthespot,whethertograntordenycustomerrequests.Forcustomers,thisde-cisionaffectsthedegreetowhichtheyaresatis-fiedwiththeserviceencounter.Forcustomer-contactworkers,howtheyhandlecustomerrequestsultimatelyaffectsthedegreeofre-wardstheyreceivefromthecustomer.Lastly,thecustomer-contactworkersactionsaffecttheorgan-ization,becausetheworkerhasdirectinfluenceoverthecustomersbuyingdecisionandhastheabilitytoupholdorbendmanagementrules.Customer-contactemployeesmayexperiencein-ternalconflictwhenagapexistsbetweencus-tomerdemandsandmanagementrulesandregu-Thisconflictishighestwhenemployeespersonallyagreeoridentifywithcustomerre-queststhatviolatemanagementinstructionsoftenresultsindissatisfactionwithwork,frustra-tion,andperceivedlowservicequality.Havinganemployeescompensationdependinpartontipsincreasestheemployeesidentificationwithcus-tomers,butitalsoincreasestheconflictthattheemployeeexperiencesbetweensatisfyingcustom-ersversusobeyingmanagement.Whileweknowthattheinherenttensionbe-tweencustomerexpectationsandmanagementpoliciesoftenresultsinnegativeattitudesandin-tentionstoquit,weknowlessaboutwhatstrate-giescustomer-contactworkersemploytocopewiththisconflict.Itshouldbehelpfultostepbackandexaminethebywhichcustomer-contactworkersinteractwithcustomersandmanagementtodealwiththeirconflictingexpectations.Anun-derstandingofhowandwhyemployeesidentifywiththeircustomersandmanagerswillhelpex-pandourunderstandingofthisissue.Webeginbydiscussinghowcustomer-contactworkersmanageexpectationsbydevelopingpsychologicalcon-tractswithcustomersandwithmanagement.PsychologicalContractsInanyserviceexchange,threerelationshipsexist:thatbetweencustomer-contactworkersandcus-tomers,customer-contactworkersandmanage-ment,andcustomersandtheorganization,whichisrepresentedbymanagement.Figure1shows FIGURE1ThePsychologicalContractsinaServiceAcademyofManagementExecutive thesethreerelationships.Becauseoftheirauton-omyandboundary-spanningcapacity,customer-contactworkersplayapivotalroleinshapingeachoftheserelationships.Howcustomer-contactwork-ersinteractwithcustomers(sideA)andhowcus-tomer-contactworkersandmanagementrelate(sideB)ultimatelyaffecttherelationshipestab-lishedbetweencustomersandmanagement(sideC).Forexample,thequalityofservicethatacus-tomer-contactworkerprovidesdirectlyinfluenceshowsuccessfulthecustomerperceivestheserviceexchangetobe.Meanwhile,howmanagementtrainsitscustomer-contactworkerstoservecus-tomersinfluenceshowcustomersfeelaboutman-agement(andultimatelytheorganization).such,itisimportanttomanagetherelationshipsbetweencustomer-contactworkersandtomersandmanagement,toestablishsuccessfulandlong-lastingrelationshipswithcustomers.Af-terexplainingwhatpsychologicalcontractsare,wewillfocusonthecontractsthatcustomer-contactworkershavewithcustomersandmanage-ment(sidesAandBinFigure1).Later,wewilldiscusshowthesecontractscanbemanagedtoimprovecustomer-managementrelations(sideC). Itisimportanttomanagetherelationshipsbetweencustomer-contactworkersandbothcustomersandmanagement,toestablishsuccessfulandlong-lastingrelationshipswithcustomers. Socialexchangebymeansofpersonalrelation-shipsisadeeplyrootedbehaviorinmostsocieties.Peopleformrelationshipsinordertogiveandre-ceivethingsbothtangibleandintangiblevalue.Psychologicalcontractsareformedwhen-everthereisasocialexchangebetweenpeople.Whenemployeesdeveloppsychologicalcontractswiththeiremployers,theyareinessencecreatingamentalbalancesheetcomparingtheirobliga-tionstothecompanywiththecompanysobliga-tionstothem(i.e.,theirrewards).Unlikeemploy-mentcontracts(butsimilartoacustomerperceptionofservicequality),psychologicalcon-tractsarecompletelypersonal,andtwopartiesmayhavedifferentbeliefsabouttheirreciprocalTheresearchonpsychologicalcontractssug-geststhattheycanrangefrombeingextremelytransactionaltoextremelyrelational.Thekeydif-ferencebetweenthetwoformsinvolvesthepres-enceorabsenceoftrust.Transactionalcontractsarebasedonminimalexpectationsoneachside,aremotivatedpurelybyself-interest,andusuallyinvolvequidproquoexchanges.Extremelytrans-actionalcontractsinvolvenotrustandmostlikelyoccurinone-timeexchangerelationships,suchasatemporaryemploymentassignmentoraone-timevisittoaroadsiderestaurantinanotherstate.Incontrast,relationalcontractsinvolvemoreofapersonalrelationshipbetweenthetwoparties.Eachpartytendstohaveahighlevelofcommit-menttotherelationshipandismorelikelytobeflexiblewhenevaluatingtheperformanceoftheotherparty.Themostextremeexampleofarela-tionalcontractoccursinamarriage.Thetradi-tionalemploymentrelationship,whereanem-ployeeexchangescommitmentandloyaltyforlongtenureandpromotions,alsoexemplifiesaformofrelationalcontract.Customer-contactworkerscandevelopeitheratransactionalorrelationalpsychologicalcontractwithmanagementorsomethinginbetween,de-pendingonthetypeofrelationshipformedbe-tweenthetwoparties.Inaddition,theseworkersfaceanarrayofpsychologicalcontractswithcus-tomers,rangingfromextremetransactionalcon-tractsfordiscreteencounterstostrongrelationalcontractswithregularcustomers.Theformofpsychologicalcontractthatmanag-ersdevelopwiththeiremployeeswillinfluenceemployeeattitudesandbehaviors.Intransac-tionalcontracts,employeesmeetminimumor-ganizationalstandardsandhavealowlevelofexpectationsregardingmanagement.Relationalcontractsleadtohighercommitmentandinvolve-mentbyemployees,aslongasemployeesperceivethattheirmanagersreciprocatetheirtrust.fore,aswewillshow,bydevelopingrelationalcontractswithcustomer-contactemployees,man-agersmaybeabletominimizetheextenttowhichemployeeschoosetosatisfycustomersattheex-penseofmanagement.Customer-contactworkerspresentaninterestingcaseforthestudyofpsychologicalcontracts.Mostresearchhaslookedatwhatleadsemployeestoformtransactionalversusrelationalcontractswiththeiremployers.Wearenotawareofanystudythathasexaminedthepotentiallyconflictingpsy-chologicalcontractsthatcustomer-contactworkersmaydevelopwithcustomersandwithmanage-ment.Workersmayhavetransactionalcontractswithmanagementandwithcustomers,relationalcontractswithboth,oracombinationofthetwo.ThesidesofthetriangleinFigure1representthepsychologicalcontractsthatexistintheserviceindustry.Nowwewilldiscusswhatourstudyfoundconcerningwhatcustomer-contactworkersEddleston,Kidder,andLitzky facewhentheydeveloppsychologicalcontractswithcustomersandmanagement.Wechosetostudybartendingbecauseitisanoccupationwhoseworkerssharecommoncharac-teristicswithworkersinmanyotherserviceoccu-pations,suchasresponsibilityfordeliveringtheproducttothecustomer,havingtheircompensa-tiontiedtocustomersatisfaction,andhavingsomelevelofdiscretionaboutprovidingtheservice.Bar-tendingprovidesagoodillustrationoftheconflictbetweencustomerandmanagementexpectations.Customerspayaportionofabartenderscompen-sation,whichgivescustomerssomecontrolintheserviceencounter.Bartendersalsohavemuchau-tonomyindecidinghowtodeliverthefinalproducttocustomers.Theyareinchargeofmakingdeci-sionsanddirectlyinfluencethequalityoftheprod-uct,howtheproductshouldbedelivered,andoftenevendecidewhattochargethecustomerfortheproduct.Lastly,duetobartendersautonomy,man-agementencountersserviceproblemsthatmanag-ersinmanyotherserviceindustriesexperience,includingmaintainingconsistentproductquality,deliveryquality(i.e.,customerservice),controllingcosts,andmonitoringemployeebehaviors.There-fore,ourstudyofthecompetingexpectationsofmanagersandcustomersincludedobservationsofbartendersworking,interviewswithbartendersandtheirmanagers,andsurveysofcustomers.TheCustomer-ContactWorkerSideAinFigure1representsthepsychologicalcontractthatexistsbetweentheemployeeandthecustomer.Thecustomer-contactworkerrelationshipisinterestinginthatbothmembersofthisdyadhavesomedegreeofpowerandcontrolovertheserviceencounter.Customer-contactworkershavedirectcontrolovertheproductionanddeliveryoftheproductsreceivedbythecus-tomer.Forexample,bartenderscontrolthequalityandoccasionallythepriceofthedrinksservedtothecustomer.Similarly,individualsinprofes-sionalservicefirms,suchasaccountantsorattor-neys,controlserviceencountersbyprovidinghelp-fulandtimelytaxorlegaladviceandbydictatingtheamountofhoursandserviceschargedtocli-ents.Asforcustomers,theyhavecontroloveracustomer-contactworkersearnings,intheformoftipsandcommissions.Inthebasicserviceencounter,customer-contactworkerswillformtransactionalcontractswithcus-tomers.Thecustomerwillexpectacertainlevelofperformancefromtheworker,suchaspoliteandfriendlyservice,cleanliness,andahardworkethic,whilethecustomer-contactworkerwillex-pectaroutineservicerequestandacustomarytip.Frequentcustomersorhavedifferentexpectationsregardingserviceandalsotrytocon-troltheserviceencounterthroughtheuseofrela-tionalcontracts.Forexample,allofthebartendersinourstudyacknowledgedthatregularcustomersexpectpreferentialtreatmentcomparedtoneworone-timecustomers.Regularcustomersexpectbartenderstoknowtheirnames,whattheydrink,andwhattheytalkedaboutthelasttimethattheywereatthebar.Similarly,inmanywhite-collarserviceoccupationsclientsexpect,forexample,theirlawyerorsalespersontoremembertheirpastbusinessdealingsandthefactssurroundingthehistoryoftheirbusiness.Wealsofoundthatregu-larsexpecttobeservedbeforeothercustomersatthebar.Onebartenderremarked,Regularcus-tomersexpectpreferentialtreatmentuponarrivalandgetannoyedifnotwaitedonimmediately.Theywantyoutodropwhatyouaredoingthatsecondandgetthemtheirdrink.Anotherbar-tenderexplained,Regularsexpectagooddrinkandexpectalotofthingsforfree.regularswereobservedaskingbartendersforonthehouse. Regularcustomersexpectbartenderstoknowtheirnames,whattheydrink,andwhattheytalkedaboutthelasttimethattheywereatthebar. Regularcustomersarelikelytowantatrustingrelationshipwithcustomer-contactworkers,thatis,todeveloprelationalcontracts.Customersoftenusepsychicrewardstohelpformrelationalcon-tractswithemployees.Examplesincludemakingregularvisitstotheorganization,requestingtodobusinesswithaparticularemployee,orexpress-ingdelightataserviceencounter.Inthebartend-ingmilieu,customersmayexpressdelightbysayingthingslike,IonlycomeinwhenyouareNextweekIambringingtenpeopleinforabirthdayparty,butIwanttomakesurethatyouwillbeworking.OnebartenderexpressedagoodfeelingIgetwhenIdevelopagoodrapportwithacustomer.Iknowthatpersonwillbeback.Infact,Ivedevelopedlong-termfriendshipswithmanyofmyregularcustomers.Althoughregularsexpectahigherlevelofser-vicethanothercustomersreceive,thepotentialforgreaterrewardstendstomaketheincreasedeffortwellworthitforcustomer-contactworkers.ThebartendersinourstudyrecognizedthatregularsAcademyofManagementExecutive contributethemosttotheirearnings;regularspro-videtipsonarecurrentbasisandoftenprovidethemostgeneroustips.Asistrueinmanyservicesituations,formingrelationalcontractswithcus-tomerscanleadtogreatermonetaryrewardsforbartenders.Additionally,regularcustomersarethosemostlikelytointroducenewclientstothebusiness.Abartenderexplains,CustomerslikeitwhentheybringtheirfriendsinandwetreatthemHavingarelationalcontractwithcustom-ersthusleadstoincreasedextrinsicmonetaryben-efitsforcustomer-contactworkersinadditiontoappealingtotheirintrinsicmotivationalneeds.TheCustomer-ContactWorkerSideBinFigure1representsthepsychologicalcontractthatemployeeshavewiththeirmanagers.Inthecustomer-contactworkerexchange,managementhascontroloverthecustomer-contactworkersemploymentstatusandbasesalary,aswellasoverrulesandproceduresdevelopedtoproduceconsistenthigh-qualityser-vice.However,managementspowerisnotcom-plete;customer-contactworkerscanexertsomecontrolintherelationship.Forexample,inthecaseofbartenders,becausetheycontroltheamountofliquorineachdrinkandoftenthepric-ingofproducts,theyhavedirectcontroloveransexpensesandprofits.Inaddition,becausecustomer-contactworkersinteractdirectlywithcustomers,theyhavetheabilitytoinfluencecustomerperceptionsofservicequality.Managerstendtoviewthegreatdegreeofau-tonomyanddiscretionthatcustomer-contactwork-ershaveasthemostdifficultaspectofmanagingcustomer-contactworkers.Amanagerinourstudyexplainedhowitisdifficultbecauseyoualwayshavetobeonyourtoes.Thereisconstantmoneybeingmovedaround.Youmustkeeptrack.managersinourstudysawenforcingtheadher-encetorulesandproceduresasthebestmeanstoensureconsistent,high-qualityservice. Managerstendtoviewthegreatdegreeofautonomyanddiscretionthatcustomer-contactworkershaveasthemostdifficultaspectofmanagingcustomer-contactworkers. Unfortunately,thecustomer-contactworkersinourstudydidnotsharemanagementsenthusiasmforrulesandprocedures.Seventy-fivepercentofthebartendersinterviewedwereabletoidentifymanagementrulesandproceduresthattheyfelthamperedtheirabilitytopleasecustomers.Exam-plesincludednotbeingallowedtoturntheairconditioningonwhenitisreallyhotinsiderequiringthatcustomerspaywhentheyare(i.e.,notrunatab).Themostcommonrulesmentionedbybartendersconcernedthegivingawayoffreedrinks:theyarenotallowed,eithertoregularcustomersortocompensatecustomersforpoorservice.Bartendersbelievedthatmanyman-agementrulesandprocedureshamperedtheirabilitytoprovideahighlevelofservicequality.Mostofthebartendersinourstudyfeltthattheyhadatransactionalcontractwiththeiremployers.Overwhelmingly,bartendersbelievedthattheywereupholdingtheirtransactionalcontractwithmanagementiftheyattractedcustomerstothebarkeptthemcomingbackformore.Inaddition,bartendersrepeatedlymentionedtheamountofmoneythattheymadefortheirrespectivebars.Forexample,threebartenderswereobservedtellingcustomershowmuchmanagementneedsthemandthatifIleavethisbar,allthecustomersarecomingwithme.Becausemanagementsleveloftrustinthemwaslow,ourstudyparticipantsfeltthattheirobligationstothecompanyweremini-mal.Theyfeltthatmanagementcoulddevelopamorerelationalcontractwiththembysupportingtheirindividualdecision-makingandvaluingthecontributionstheymaketotheirorganizations.ChoosingBetweenMeetingthePsychologicalContractsofCustomersorEmployersInourstudy,bartenderswererepeatedlyabletogiveexamplesofhowtheymustchoosebetweenmeetingcustomerandmanagementexpectations,andhowtheymustweightherewardsandcostsofdoingso.Forexample,abartendercommented,Notbeingabletoservemorethanonedrinkatatimetoapersonsometimesdispleasesthecustom-ersandcandecreaseyourtips.Otherbartendersexplainedhowmanagementsrulesandexpecta-tionsdecreasecustomersatisfaction.Specifically,abartenderexplainedthatcustomersareoftendispleasedbythefactthatonlyacertainamountofalcoholcanbeputintoadrinkafive-countthismakesitsothatIcannothonortherequestofmakingareallystrongdrink.Whencustomer-contactworkersdecidetoup-holdthecustomersrelationalcontractwiththemattheexpenseofmanagement,theyexpecttobeamplyrewarded.Contrarytocompanypolicy,onebartenderwasobservedgivingacustomera:adrinkcontainingdoubletheprescribedEddleston,Kidder,andLitzky amountofliquor.However,whenthecustomerdidnotprovideanadequatereward(i.e.,giveanaboveaveragetip),thebartenderwouldnotservethecustomeradoublewhenaskedtodosoagain.Herreactionwastotellherfellowbartenders,tbelievethisisalltheguyleftmeafterIjustmadehimadouble.Dontservehimadoubleifheasksyouforone.Herethebenefitsprovidedbythecustomerwerelowerthanthebartenderhadexpected.Therefore,inthebartenderseyesthecustomerhadbreachedhisrelationalcontractwithher,shiftingittoamoretransactionalone.customerlostthetrustofthebartender,soinordertorestoreequityintherelationship,thebartenderthenchosetoviolatehercontractwiththecus-tomerbynotservinghimanotherdouble,whichinadvertentlyalsoupheldherpsychologicalcon-tractwithmanagement.However,whenacus-tomer-contactworkerbreaksarelationalcontractwithacustomer,thelikelihoodthatthecustomerwilldobusinesswiththecompanyagainisdiminished.Plentyofsituationsallowcustomer-contactworkerstoupholdbothmanagementandcustomerpsychologicalcontracts,typicallythemoreroutineserviceencounters.However,workersmustalsore-spondtospecialandunusualcustomerrequeststhatrequireworkerstoviolatetheirpsychologicalcon-tractswithmanagement.Howcustomer-contactworkershandlethecompetingexpectationsofcus-tomersandmanagementaffectswhethercustomersformaone-time-purchasetransactionalcontractwiththeorganizationoraloyalandrepeat-purchaserelationalone.So,whatcanmanagersdotocreateandmaintainrelationalcontractswiththeirem-ployeeswhilestillsatisfyingcustomers?Andhowshouldcustomer-contactworkersbemanagedsothatstrongerrelationalcontractsareformedwithManagerialImplicationsCustomer-contactworkerswhoreceivebenefitsandrewardsfromcustomersarenoteasytoman-age.Althoughcustomer-contactworkersaremoti-vatedbycustomerrewardstoprovidehigh-qualityservice,managersmustensurethatthebenefitsofsatisfyingthecustomeroutweighthecosts.Thisisnotaneasyfeat.Managersmustlearntobuildrelationalcontractswiththeircustomer-contactworkerswhileallowingthemtomeettheexpecta-tionsoftheircustomers.Thefollowingarestrate-giesthatmanagerscanusetoreducetheconflictfeltbycustomer-contactworkersintryingtosatisfybothmanagementandcustomers.TheImportanceofDevelopingRelationalContractsHigh-qualityservicerequireshighcontributionsfrompeople,whichcomefromdevelopingrela-tionalcontractsinvolvingcommitmentandtrust.Developingtrustwithmanagementwasakeyis-sueinthemindsofthecustomer-contactworkersinourstudy.Theywantedmanagementtotrustthattheywouldmakethebestdecisionsfortheirorganizationsaswellasforthemselves.However,asisclearfromourstudy,managementoftenaskscustomer-contactworkerstoperformbehaviorscontrarytotheself-interestsofworkers.Boththe-oryandcommonsensesuggestthat,intheab-senceofcompletemanagerialcontrolovertheser-viceencounter,customer-contactworkerswillmostlikelychoosetohonortheirrelationalcon-tractswithcustomersandviolatetheirpsycholog-icalcontractwithmanagement.Inaddition,byattemptingtocontroltheserviceencountercom-pletely,managementrisksdestroyinganytrustthatthecustomer-contactworkershadinthemwhich,inturn,canleadtopoormoraleandnega-tivebehaviors.Therefore,managersshouldevalu-atetheirpoliciesinlightofhowtheyaffecttheirworkingrelationshipswithcustomer-contactwork-ers.Ifworkersfeeltheyarenottrusted,theymaydecidethattheirrelationalcontracthasbeenvio-latedandshifttoamoretransactionalcontract.Managershopingtobuildrelationalcontractswithemployeesmustgaintheirtrust.Trustisakeycomponentinshiftingfromatransactionaltoarelationalcontract.Ingeneral,managerscanin-fluencecustomer-contactworkersperceptionsoftrustbybehavingconsistently,displayinginteg-rity,sharinganddelegatingcontrol,communicat-ingaccuratelyandopenly,anddemonstratingatrueconcernforthewell-beingofemployees.Inaddition,managerscandevelopandfostertrustingrelationshipswiththeiremployeesbyen-couragingopencommunicationandbyempoweringthemtomakedecisionsthataffectthequalityanddeliveryoftheserviceencounter.Whencustomer-contactworkersareawareofmanagementsvaluesandcommitmenttocustomerservice,theyareabletomakedecisionsthatreflectthosevalues.However,effectiveemployeeempowermentcomesasaresultofashiftinpoliciesandprocedures,notjustamanagerialdecisiontograntemployeescarteblanchedecision-makingauthority.Managersmustteachemployeestomakedecisionsthatarereason-ablefromtheperspectiveofboththeorganizationandthecustomer.Forexample,theworkersinoursamplewhofeltcomfortablemakingdecisionsre-gardingcustomerserviceworkedformanagerswhoAcademyofManagementExecutive hadbothcommunicatedtheexpectationsofserviceandgrantedthemtheautonomytomeetthoseexpec-tations.Onebartenderremarked,NomatterwhatIdotosettleacustomercomplaint,managemental-wayssupportsme.Therefore,strengtheningtheirrelationalcontractswithemployeeshelpsmanagersbuildstrongrelationshipswithcustomers(sideCinFigure1)asevidencedbycustomersatisfactionandFurthermore,managerscanalsodirectlycreateandstrengthenrelationalcontractswithcustom-ers.Managementisnotprecludedfrominteractingwithcustomersonanindividualbasissimplybe-causecustomer-contactworkersarethosemostof-teninvolvedwithcustomers.Managerscanfosterrelationalcontractswithcustomersbyelicitingtheirfeedbackandincorporatingtheirideasintonewproductsand/orserviceofferings.Addition-ally,managerscanbuildcustomerloyaltythroughmarketingandpublicrelationseffortsinwhichtheycommunicatethevalueofcustomerstotheIdentifyManagementRulesThatDispleaseCustomersManagementrulesandproceduresmaystiflecus-tomer-contactemployeescreativity,theirabilitytogrowprofessionally,andmayultimatelycausethemtoleavetheirorganizations.Inaddition,longlistsofruleshavebeensaidtoservecustom-ersnobetterthanemployees.Theyproduceregi-servicewhenaflexible,oneisneeded.Whatresultsistheinabilityofcustomer-contactemployeestosatisfycustomerswithspecialneedsandrequests.Managersneedtodeterminewhichcommoncus-tomerrequestsarenotallowedduetorulesandproceduressothattheycanimprovecustomersat-isfactionandensurethatcustomer-contactwork-ersactwithintheboundsofacceptablebehavior.Managerscandothisinthreeways.First,theycanfocusontheserviceencountersthattheyareawareofinwhichcustomerexpectationsconflictwiththeirown.Thismeansidentifyingpastcus-tomerrequeststhattheydidnotallowtheirem-ployeestosatisfyandthinkingabouttheirbusi-sserviceprocesstodeterminepotentialwaysinwhichtherulesconflictwithcustomerneeds.Second,managersshouldaskemployeestoiden-tifycommonrequestsmadebycustomersthatgoagainstmanagementrules.Becausecustomer-contactworkersdirectlyinteractwithcustomers,theyknowwhichmanagementrulesdispleasecustomers.Toencourageemployeestosharethisinformationwithmanagement,strongrelationalcontractsneedtobeformedwiththeseemployees,andaforumforcollectingthisinformationneedstobecreated,perhapsthroughmeetingsorsugges-tionboxes.Third,managersshouldaskcustomerstodescribewhatservicesorproductstheywouldliketopurchasethatarenotcurrentlyallowedoravailable.Again,thisstepmeansformingamorerelationalcontractwithcustomerswherebycus-tomerscareaboutthesuccessoftheorganizationandarethereforewillingtosharetheirunmetneedswithmanagementthroughsuchmethodsascustomersatisfactionsurveys,focusgroups,orsuggestionboxes.Oncetherulesthatdispleasecustomersareidentified,managementcanevaluateitsexistingservicepracticesandmakeanynecessarychanges.Makingchangesbasedoncustomerandemployeeinputdemonstratesmanagementscon-cernfortheirneedsandcommunicatesmanage-sdedicationtoeachoftheserelationships.Appropriatechangeswillbetteraligncustomerex-pectationswiththoseofmanagementandwillre-inforcethedevelopmentofrelationalcontractswithcustomer-contactworkersandcustomers.Suchchangeswillalsoleadtomorecustomerneedsbeingmet.Honoringacommoncustomerrequestmaysim-plymeanchargingmoreforthespecialservice.However,otherrequestsmaynotbefeasiblemaybetooexpensivetoprovide,beyondthecapa-bilityofthebusiness,orillegal.Insuchcircum-stancesmanagersshouldfullyinformtheircus-tomer-contactemployeeswhyaspecialrequestcannotbegranted.Researchonorganizationaljusticehasdemon-stratedthatifemployeesfeelthattheyaretrustedandtakenseriously,theyaremorelikelytobehaveinamannerconsistentwithmanagementexpec-Oneofthekeywaysinwhichmanage-mentcandemonstratethisrespectisbyexplainingthereasonsbehindanaction.Customer-contactworkerscanthen,inturn,explaintocustomerswhytheyarenotabletosatisfytheirrequestsandcanperhapsoffercustomersasubstituteserviceorproducttocompensate.Forexample,atthebarwherenodoubleswereallowed,bartenderscouldkindlyinformcustomersoftheno-doublesruleandthenoffercustomersasingledrinkwithanextrashotofliquorontheside,therebyservingcustom-ersaproductsimilartotheonerequested,butinadifferentform.Asanotherexample,ifcustomersrequestextendedgraceperiodsontheirpayments,customer-contactworkerscouldexplainmanage-mentrulesagainstchangingcreditterms,thenofferinsteadalowerminimumpaymentforthatperiodoramutuallyagreeduponinstallmentplan.Eddleston,Kidder,andLitzky Bydeterminingtherulesandproceduresthatdispleasecustomers,managerscananticipatetherequeststhattheywillbeunabletofulfillandthencreatealternativesthatmaysatisfycustomerneeds.Here,thefocusofmanagersshouldbeonloweringcustomerdefectionrates,whichhasbeenshowntobeamoreprofitablebusinessstrategythangainingmarketshareorreducingcosts.ControlRewardsandCompensationforCustomersCustomerswhohavestrongrelationalcontractswithacompanysignaltheirloyaltyinseveralways.Whencustomersrecommendthecompanytoothers,praisethecompany,expresspreferenceforthecompanyoverothers,buymorefromthecom-pany,oragreeablypayapremiumpriceforaprod-uctorservice,theyaredemonstratingtheirstrongbondwiththecompany.Inresponse,theseloyalcustomersoftenfeelthattheamountoftime,effort,ormoneythattheyhaveinvestedindoingbusi-nesswiththecompanyshouldbeproportionatelySuchcustomerswanttoberecognizedfortheirbusiness,andasourstudyandopeningexampleshow,somewillevenasktoberewardedfortheirpatronage.Insuchsituations,customer-contactworkersoftenfeelcompelledtorewardcustomersdespitemanagementrulesagainstdo-ingso.Furthermore,becauseofthecustomer-contactworkersautonomy,theenforcementofsuchrulesisquitedifficult.Thus,thebestwaytoalignmanagementandcustomerexpectationsandminimizetheconflictfeltbycustomer-contactworkersinthesesituationsisformanagementtocontroltherewardsgiventocustomers.Dependingonthetypeofbusiness,thismaymeansettingcustomerrewardsbasedonfrequencyofvisits,amountofspending,orsuccessofbusinessrefer-rals.Customersshouldalsobeinformedofsuchpoliciessothattheyunderstandwhenrewardsareavailable,therebydecreasingthedegreeofpres-sureplacedoncustomer-contactworkerstograntrewardsarbitrarily.Whenstandardsforrewardsareset,customerswillfeelthattheyarebeingtreatedequitably,andcustomer-contactworkerswillexperiencelessconflictregardinghowandwhentorewardcustomers.Bycontrollingtherewardsgiventocustomers,managersmakecustomerslessreliantonemploy-eesforrewards,therebyweakeningtherelationalcontractbetweencustomer-contactemployeesandcustomers.Thismakesitmorelikelythatthecon-tractbetweencustomersandmanagementwillbe-comemorerelationalbecausethecustomersareloyaltotheorganizationinordertoreceivere-wardsfrommanagement.Asimpleexamplewouldbeacustomerwhoreceivesanoccasionalfreecupofcoffeefromafriendlyemployee.Herethecus-tomercouldeventuallydevelopastrongrelationalcontractwiththatemployee.Iftheemployeeweretoleavetheorganization,thecustomermayalsoleave.Ifthecustomerdidreturntotheestablish-ment,thatpersonmaydevelopresentmenttowardtheorganizationbecausepatronagewasnolongerrewardedwiththatoccasionalfreecupofcoffee.Ultimately,thecustomermaystopdoingbusinesswiththeorganization.Incontrast,ifcustomersweregivenanorgani-zationallypromotedcardtoreceiveafreecupofcoffeeaftereveryninepurchasedcups,theywouldnotloseanyrewardsifanemployeelefttheestab-lishment.Thecustomerswouldbecommittedtotheorganizationratherthantotheindividualem-ployee.Controllingtherewardsgiventocustomerscangreatlybenefitmanagementbymakingcus-tomerslessreliantonspecificcustomer-contactworkersforrewardsandmakingcustomersmoreloyaltotheorganization.Inaddition,customersexpecttobefairlycom-pensatedwhendissatisfiedwithaserviceencoun-ter.Theyholdthisexpectationdespitethefactthatmanymanagersdonotencourageexplanationsorcompensationtodissatisfiedcustomers.ever,becausecustomer-contactworkersareoftentheemployeestowhomcustomerscomplain,theyaretheonesoftenfacedwiththedilemmaofhowandwhentocompensateacustomerforpoorser-vice.Beingabletorestorecustomersatisfactionisespeciallycriticalforcustomer-contactemployeeswhodirectlyreceivebenefitsfromcustomersbe-causetheyknowthatbynotcompensatingthecustomer,theymayultimatelyearnlessfromthecustomer.Therefore,managersmustunderstandthatcustomer-contactemployeesarestronglymo-tivatedtocompensatecustomerswhoarenotsat-Managersmustalsorecognizethatcompensatingcustomersforpoorservicepositivelyaffectsacus-sperceptionofservicefairnessandmayevenenhancecustomerloyaltyandthedevelop-mentofarelationalcontract.Customersconsiderthehandlingofcomplaintsoneofthemostimportantfactorswhenmakingpurchasedecisions.sationcanrestoreapositiveattitudeaboutacom-panyandenhancethelikelihoodoffuturepurchas-Accordingly,thecompensationofcustomersforpoorserviceshouldbeformalizedsothatcustomer-contactworkersareconsistentandfairincompen-satingcustomers.Thismaymeangivingalldissat-isfiedcustomersthesameformofcompensationorcategorizingtheseverityofcomplaintsandmatch-AcademyofManagementExecutive ingthemwithformsofcompensation.Forexample,allpassengerswhoarebumpedfromoneairlinemayreceiveafreeround-triptickettoanydestina-tionwithintheUnitedStates.Anotherairlinemaychoosetoissueacouponworththepriceofthebumpedairlineflightortogivepassengerswhoareabletotakethenextflightafreefirst-classupgrade.Nomatterhowmanagersdecidetoadministercom-pensationforservicefailures,thefocusshouldbeoncompensatingthecustomerquicklyandeffectivelysothatthecustomerfeelsbetteroffthanbeforetheserviceerror.Bycontrollingrewardsandcompensationforcustomers,managerswillbebetterabletomonitorcostsandcreateconsistencyconcerninghowandwhencustomerswillberewardedandcompen-sated.Thisapproachshouldfostercustomerloy-altyandcommitmenttotheorganizationandthusshouldstrengthentheirrelationalcontractwithmanagement.Customerswhohavebeenwithanorganizationforyearsaremorelikelythanshort-termcustomerstobuyadditionalservicesandspreadfavorableword-of-mouth.Therefore,al-thoughcostsareinvolvedinadministeringre-wardsandcompensationtocustomers,thelong-termgainsshouldbewellworthit.UnderstandtheEffectsofCompensationStructureonEmployeesThenatureofthecompensationsystemforcus-tomer-contactworkers(i.e.,thecustomerpaysthebulkoftheemployeesearnings)fostersarela-tionalcontractbetweencustomer-contactworkersandcustomersbutmayactuallyimpedethedevel-opmentofarelationalcontractbetweenmanage-mentandemployees.Furthermore,thecompensa-tionstructureofcustomer-contactworkersmayaccentuatethegapbetweencustomerexpecta-tionsandmanagementexpectationsbecausecus-tomer-contactworkersoftenperceivethattheycannotsatisfythedemandsofallthepartiesthattheymustserve.Fromanorganizationalperspec-tive,theconflictcreatedbythecompetingexpec-tationsofcustomersandmanagementoftenre-sultsinagapbetweenwhatthecustomerwantsandwhatthecustomergets,whichcanleadtoaseriousdeficiencyinperceivedservicequality.Forthesereasons,managementmustunderstandhowdirectlyearningrewardsfromcustomersaf-fectsemployeebehaviors.Whencustomersdirectlycontrolaportionofansearnings,high-qualityservicecanre-sult.Employeeswhoaredirectlyrewardedbycus-tomersdisplaymorefavorableattitudestowardcustomersthanemployeesnotrewardeddirectly.Therefore,allowingemployeestoreceiveearningsfromcustomerscanresultinfriendlierandmoreattentiveservice.Customer-contactworkersarequiteawareofhowtheirbehaviorcanaffecttheirearningsfromcustomers.Forexample,inourstudy,onebartenderexplains,Socializinghelpstoincreasetips.Thelongeryoucanholdaconver-sation,thehigheryourtipgets.workers,recognizingthatestablishingarelation-shipwithcustomerscanincreasetheirearnings,arethusmotivatedtoprovidegoodservice.Ontheotherhand,thisformofcompensationcanalsoleadtotheemployeeputtingthecustomerinterestsaheadofthoseoftheorganization.Cus-tomer-contactemployeesmaygivepreferentialtreatmenttocertaincustomers,givingthemanun-fairadvantageoverothercustomers.Favoredcus-tomersmaygetfasterserviceandfrequentdiscountsattheexpenseofothers.Customer-contactemploy-eesmaycherrypickcertaincustomersbecausetheyknowtheyareeasytopleaseorarebigspend-ers.Somecustomer-contactworkersseektopleasetheircustomersatvirtuallyexpense.Whenearn-ingsofcustomer-contactworkersaretiedtocus-tomersatisfaction,someemployeeswilluseincen-tivestocreateasaleregardlessofthecostoftheincentivesandirrespectiveofmanagementsposi-tiononsuchissues.Therefore,managementmustrecognizethatbecauseofthecompensationstruc-ture,customer-contactworkersareoftenhighlymo-tivatedtosatisfythecustomer.Whilecustomerser-viceandsatisfactionareimportantgoalsofserviceorganizations,themeansthatcustomer-contactworkersusetosatisfycustomersmustbereasonableandnottoocostlytotheorganization.Managersmustmotivateemployeestobemoreinvolvedandinterestedintheirorganizationprofitabilitytopreemptthetemptationbycus-tomer-contactworkerstosatisfycustomersattheexpenseoftheorganization.Itisimportantforcus-tomer-contactworkerstovaluetheorganizationitselfandtobecomemorefocusedontheorgani-sprofitability,notsolelyontheirowncompensation.Thisisachallengeformanagers;ultimately,theymustprovideanorganizationalenvironmentthatfostersabetterbalancebetweenwhatcustomer-contactemployeesreceivefromcustomersversuswhattheyreceivefrommanage-ment.Bydevelopingrelationalcontractswithbothemployeesandcustomers,managersaremorelikelytobeabletoachievethisbalance.Managershavetheopportunitytodesignemployeecompen-sationsystemsthatcanfosterrelationalcontractswithbothcustomer-contactworkersandcustom-ers,sincereciprocalrelationshipsbetweenman-agementandbothofthesepartiesexist.Eddleston,Kidder,andLitzky Whencustomer-contactworkershaveastakeinthelong-termprofitabilityoftheorganization,feel-ingsofloyaltytothatorganizationcandevelop.Bonuses,intheformofcashortrips,areoftenusedtorewardcustomer-contactworkerswhogeneratehighsales.Thesepracticescanbeextendedtothosecustomer-contactemployeeswhokeeptheircostsundercontrolormeetbudgetaryrestrictions.Inthismanner,customer-contactemployeesareawareoftheirdirectimpactontheorganizationprofitability.Awardinghigh-volumesalesterrito-riesorfavoredclientsmaybeusedtorewardcus-tomer-contactemployeeswhohaveconsistentlymetorganizationalgoals.Customer-contactem-ployeescanberewardedfortheirtenureintheorganization.Anindividualinoursamplede-scribedarewardsystemataneighboringestab-lishmentwherethecustomer-contactemployeesweregivenexpensivecarsontheirtwenty-yearanniversaries.Rewardingemployeesinthisman-nerwillalsopositivelyimpactcustomers.Whenemployeesfeelvaluedandpartofawiththeiremployer,theyarelikelytosethighstandardsofcustomerservice.Customerperceptionsofservicequalityareof-teninfluencedbythelackofunderstandingthatmanagershaveofcustomerexpectations.agerscanevaluatecustomerneedsandpercep-tionsofserviceanddesigncompensationsystemsforcustomer-contactworkerstoincludecompo-nentsofcustomersatisfactionandservicewhicharealignedwiththeneedsandperceptionsofthecustomers.Managementcanrewardcustomer-contactworkerswhomeetcustomerexpectationsofservicethroughbonusesorincentives.There-fore,inadditiontothecompensationreceivedfromthecustomer,customer-contactworkershavethepotentialtogainrewardsbymeetingmanagementFurthermore,sincecustomer-contactemployeesarelikelytoknowwhathigh-qualityservicemeanstotheircustomers,managersmustencour-agethemtoprovidethatlevelofservice.Providingexcellentservicemayberewardedintrinsically,byallowingthecustomer-contactemployeestheautonomytodeterminehowtorewardtheircus-tomerswithinlimits.Forexample,someoftheemployeesinourstudywereallottedacertaindollaramountwhichtheycouldgiveawayshift,intheformoffreedrinksorfood,torewardtheircustomersfortheircontinuedpatronage.Salesrepresentativesareoftenencouragedtotreatclientstosportingeventsorthetheaterasawayofthankingthemfortheirbusiness.Managersmaybeabletomitigatedamagingeffectsoftheconflictexperiencedbycustomer-contactworkersbyunderstandingwhatrewardstheiremployeesvalue,bydevelopingasystemtoofferthosetypesofrewards,andbydevelopingtrustbetweenemployeesandmanagement.Byaligningtheemployeerewardsystemtoreflecttherealisticneedsandperceptionsofthecustomers,managerscancreatestrongrelationalcontractsamongthethreepartiesoftheserviceencounter.RelationalContractsforAllServiceindustrieshavesupplantedmanufacturingasthemostimportantsectoroftheU.S.economy.Customer-contactworkersfaceuniquedemandsnotfacedinotheroccupationsthatdonotinvolvedirectcustomercontact.Whentheexpectationsofcustomersdirectlyconflictwiththeexpectationsofmanagement,customer-contactworkersareplacedinapositionofchoosingbetweensatisfy-ingoneattheexpenseoftheother.Giventheirfocusoncustomersfirst,itisnotsurprisingthatthecustomer-contactworkersinourstudyoftenchosethecustomerspreferencesovermanagementSocialexchangetheoryhelpspredictthisoutcome,aswellasofferingstrategiesfordealingwithcom-petingexpectations,byhavingmanagersdeveloprelationalcontractswiththeirserviceemployeesandcustomers.WewouldliketothankSheilaPuffer,J.B.Dickinson,andRobertFordfortheirthoughtfulcommentsandsuggestions.Prelimi-naryresultsfromthisstudyhavebeenfeaturedonPublicRadio.Chase,R.B.,&Tansik,D.A.1983.Thecustomer-contactmodelfororganizationaldesign.ManagementScience,Solomon,M.R.,etal.1985.Aroletheoryperspectiveondyadicinteractions:Theserviceencounter.JournalofMarket-49(1):99Shamir,B.1980.Betweenserviceandservility:Roleconflictinsubordinateserviceroles.HumanRelations,10(10):741Shamir,B.1983.Anoteontippingandemployeeperceptionsandattitudes.JournalofOccupationalPsychology,56(3):255Parkington,J.J.,&Schneider,B.1979.Somecorrelatesofexperiencedjobstress:Aboundaryrolestudy.AcademyofManagementJournal,22(2):270Bateson,J.1985.Perceivedcontrolandtheserviceencounter.InJ.A.Czepiel,M.R.Solomon,&C.F.Surprenant(Eds.),serviceencounter:Managingemployee/customerinteractioninservicebusinesses:82.Lexington,MA:LexingtonBooks.Rousseau,D.M.,&Wade-Benzoni,K.A.1994.Linkingstrategyandhumanresourcepractices:Howemployeeandcus-tomercontractsarecreated.HumanResourceManagement,33(3):463AcademyofManagementExecutive Robinson,S.L.,Kraatz,M.S.,&Rousseau,D.M.1994.Changingobligationsandthepsychologicalcontract:AlongitudinalAcademyofManagementJournal,37(1):137McLeanParks,J.,&Kidder,D.1994.Changingworkrelationshipsinthe1990s.InC.Cooper&D.Rousseau(Eds.),inorganizationalbehavior:136.NewYork:JohnWiley;Rousseau,D.M.1995.Psychologicalcontractsinorganizations:Understandingwrittenandunwrittenagreements.Oaks,CA:Sage;andRousseau,D.M.,&McLeanParks,J.1993.Thecontractsofindividualsandorganizations.InL.L.Cum-mings&B.M.Staw(Eds.),ResearchinOrganizationalBehavior:43.Greenwich,CT:JAIPress.Kidder,D.L.,&Buchholtz,A.K.2002.Canexcessbringsuccess:CEOcompensationandthepsychologicalcontract.ForthcominginHumanResourceManagementReview.Rousseau&McLeanParks,op.cit.Hall,D.1996.Proteancareersofthe21TheAcademyofManagementExecutive,10(4):8Robinson,etal.,op.cit.Conway,N.,&Briner,R.B.2002.AdailydiarystudyofaffectiveresponsestopsychologicalcontractbreachandexceededJournalofOrganizationalBehavior,23(2):287Acompletedescriptionofthestudydetailsareavailablefromtheauthors.Schneider,B.,&Bowen,D.E.1999.Understandingcustomerdelightandoutrage.SloanManagementReview,41(1):35JournalofOccupationalPsychology,op.cit.McLeanParks&Kidder,op.cit.Rousseau,D.M.1996.ChangingthedealwhilekeepingtheTheAcademyofManagementExecutive,10(1):50McLeanParks&Kidder,op.cit.Whitener,E.M.,etal.1998.Managersasinitiatorsoftrust:Anexchangerelationshipframeworkforunderstandingmana-gerialtrustworthybehavior.AcademyofManagementReview,23(3):513Kidder&Buchholz,op.cit.Bowen,D.E.,&Lawler,E.E.,III.1992.Theempowermentofserviceworkers:What,why,howandwhen.SloanManagement33(3):31Rousseau&Wade-Benzoni,op.cit.Berry,L.L.,Zeithaml,V.A.,&Parasuraman,A.1990.Fiveimperativesforimprovingservicequality.SloanManagement31(4):29Morrison,E.W.,&Robinson,S.L.1997.Whenemployeesfeelbetrayed:AmodelofhowpsychologicalcontractviolationAcademyofManagementReview,22(1):226256;andRobinson,S.1996.Psychologicalcontractbreachandtrust.ministrativeScienceQuarterly,Zeithaml,V.A.,Berry,L.L.,&Parasuraman,A.1988.CommunicationandcontrolprocessesinthedeliveryofserviceJournalofMarketing,52(2):35Zeithaml,V.A.,Berry,L.L.,&Parasuraman,A.1996.Thebehavioralconsequencesofservicequality.JournalofMarket-60(2):31Schneider&Bowen,op.cit.Seiders,K.,&Berry,L.L.1998.Servicefairness:Whatitisandwhyitmatters.TheAcademyofManagementExecutive,12(2):8Schneider&Bowen,op.cit.MarketingNews,Consumerseagertoknowvaluesthatguidebusinessdecisions,6November1995:5.Conlon,D.E.,&Murray,N.M.1996.Customerperceptionsofcorporateresponsestoproductcomplaints:Theroleofexpla-AcademyofManagementJournal,39(4):1040Zeithaml,etal.,1996,op.cit.Parasuraman,A.,Zeithaml,V.A.,&Berry,L.L.1985.Aconceptualmodelofservicequalityanditsimplicationsforfutureresearch.JournalofMarketing,49(4):41Shamir,op.cit.Rousseau&Wade-Benzoni,op.cit.,483.Parasuraman,etal.,op.cit. DeborahKidderisanassociateprofessorintheDepartmentofManagementatTowsonUniver-sity.HerPh.D.isinindustrialre-lationsfromtheUniversityofMinnesota.Sheteachescoursesonhumanresourcemanagementandleadership.Herresearchin-terestsincludeissuesoftrustandequity,perceptionsof(un)-fairnessatwork,andtheconse-quencesof(un)fairtreatmentofemployeesandorganizations. BarrieLitzkyisanassistantpro-fessorofmanagementandorgani-zationatPennStateGreatValley.HerPh.D.isfromDrexelUniversityinorganizationalbehaviorandpsychology.Sheteachescoursesinorganizationalbehavior,organ-izationalchange,andbusinessenvironment.Shehasworkedasatrainerandconsultantinindustry.Herresearchinterestsincludeca-reeraspirations,roleconflict,so-cialissuesinmanagement,andworkandfamilyissues.Contact: KimberlyEddlestonisanassis-tantprofessorinthemanagementdepartmentatNortheasternUni-versity.HerPh.D.isinmanage-mentfromtheUniversityofCon-necticut.Sheteachescoursesonentrepreneurship,smallbusinessmanagementandinternationalbusiness.AmongherpublicationsincludearticlesintheofManagementJournalAcademyofManagementExecu-Herresearchinterestsin-cludefamilyfirmperformance,careersandconflict.Contact:Eddleston,Kidder,andLitzky