Over the last few decades, researchers in management and business have increasingly developed an interest in the process of integrating different functions of business to drive performance in contemporary organizations. Among other business functions, marketing and human resource management have become an attractive area of research, especially in business psychology.
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Studies have shown that the integration between marketing and human resource management is based on the concept of employer branding, which is the meeting-point between the two business functions (Edwards 8). This concept aims at promoting a clear view of the functions and aspects that make a firm a different and desirable employer, both within and outside the organization.
Arguably, the concept of employer branding enhances organizational performance by focusing on the employee’s job satisfaction, identification with the organization and using such employees to create a positive image among the customers.
In focusing on the two business functions (human resource and marketing), employers seek to develop a positive image of the firm in the midst of the employees in order to enhance their performance at their places of work. In turn, this seeks to ensure that the satisfied employees create a positive image of their organization to the public.
Focus on human resource requires employers to emphasize on employee building and job satisfaction. According to Edwards (13), encouraging employees to identify themselves with an organization should be the central focus in employee building.
On the other hand, studies have shown that organizations that lack effective focus on employees find it difficult to market itself in the public. In turn, it also makes it difficult to attract and retain potential customers. This is the point at which employer branding comes in.
According to Anderson, Eugene and Mittal (107), companies are challenged to develop an internal and external employer branding in order to convince existing as well as potential employees to work with them. Further studies have shown a strong link between the level of employee satisfaction and the direction of customer reaction (Davies et al 134).
Under the service profit chain (SPC), it has been shown that the relationship between human resource management and marketing becomes evident in the process of developing customer loyalty and satisfaction through a focus on employee satisfaction and identification with the organization.
For instance, Anderson, Eugene and Mittal (109) have shown that satisfied and motivated employees tend to satisfy the people they deal with in their daily work. In this case, one of the most common groups of people that employees deal with is the customer group.
Satisfied employees tend to take an organization as their “home”, which motivates them to welcome and serve employees with diligence and professionalism. Other studies have shown that satisfied employees attract and develop loyalty among their customers (Gelade and Young 14).
According to Aurand, Gorchels and Bishop (166), the entire process finds a common ground known as the employer branding. For instance, by attempting to satisfy their employees and motivate them to satisfy the customers, employers are simply trying to brand themselves and their company as “the best place for employees to work”.
In conclusion, the process of marketing a company and its products occurs within the company practices. In simple terms, focus on human resource management develops a strong link with marketing, which is achieved through employer branding.
Anderson, Eugene and Vikas Mittal. “Strengthening the satisfaction-profit chain.” Journal of Service Research 3.2 (2005): 107-120.
Aurand, Timothy W., Linda Gorchels, and Terrence R. Bishop. “Human resource management’s role in internal branding: an opportunity for cross-functional brand message synergy.” Journal of Product & Brand Management 14.3 (2005): 163-169.
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Davies, Gary, et al. “A corporate character scale to assess employee and customer views of organization reputation.” Corporate Reputation Review 7.2 (2004): 125-146.
Edwards, Martin R. “An integrative review of employer branding and OB theory.” Personnel Review 39.1 (2009): 5-23.
Gelade, Garry and Stephan Young. “Test of a service profit chain model in the retail banking sector”. Journal of Occupational and Organizational Psychology, 78.3 (2005): 1-22.