Organizational Effectiveness and Service Quality

1- INTRODUCTION

1.1 BACKGROUND INFORMATION:

Today's organizations face constant competition. The amount of this rivalry increases annually and the need to improve organizational performance has never been greater before. Many organizations often spend sufficient resources to attract people who are suitable for the higher positions. Often there are significant costs associated with engaging, training and firing of a bad or disappointing employees, and the cost of the longer it takes to realize that an employee enough not increased. Therefore, careful decisions given at the beginning about who to get involved can be quite large (Baron & Kreps, 1999). For this reason, the team of the decision is made more than one person to evaluate and select an effective employee.

The central role of employees in the organizational effectiveness and service quality is acknowledged by researchers and practitioners (Bitner et al 1990;. Heskett et al. 1994; Joyce and Slocum, 1984). The reduced importance of traditional sources of competitive success has led to the increased importance of human resources as part of the organization's intangible resources with the potential for continued organizational success (lado & Wilson, 1994; Von Glinow, 1993). In the banking sector, human resource system of selection and recruitment organizational performance improves, develops and maximizes an organization's abilities (Huselid 1995, Becker & Gerhart, 1996), and contribute to its continued competitive advantage (lado, Wilson , 1994). The people working in the company, the source and basis for the use of other sources (Maital, 1994). Thus, by means of an effective selection system, a company's employees are, in essence, a strategic asset. They form a system ...

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...organizational outcomes (Bartel, 1994; Knoke & Kalleberg, 1994; Russell, Terborg, & Powers, 1985). The effectiveness of skilled employees will be limited, however, if they are not motivated to perform their jobs. The form and structure of an organiza-tion's HRM system can affect employee motivation levels in several ways. First, organizations can implement merit pay or incentive compensation systems that provide rewards to employees for meeting specific goals. A substantial body of evidence has focused on the impact of incentive compen-sation and performance management systems on firm performance (Gerhart & Milkovich, 1992). In addition, protecting employees from arbitrary treatment, perhaps via a formal grievance procedure, may also motivate them to work harder because they can expect their efforts to be fairly rewarded (Ichniowski, 1986; Ichniowski et al., 1994).