Internal Relationships

Different approaches to internal or employee relationships

Gummerson (2002) terms internal relationships as Nano Relationships and external relationships as mega relationships.

Christopher et al. (1991) describes them s Internal Markets covering relationships with employees and also Recruitment Markets covering relationships with potential employees. These markets comprise 2 of their 6 Markets Model.

 Morgan and Hunt (1994) and Doyle (1995) use the term Internal Partnerships, comprising relationships between organization and its employees, relationships between functional departments within the organization and relationships between SBUs within the organization.

Definition Internal Marketing

A marketing-like approach applied internally to improve the overall effectiveness of the organization in the external markets.

Internal Marketing Relationships

Internal Marketing

Concept of the internal customer

Employee impact on external customers

Organization to employee

Employee to employee

Department to department

Customer focus

Recruitment market

Concept of the Internal Customer

Employees as customers of the organization;
Employees as supplier and customers of each other.

Internal departments or operating units as suppliers and customers of each other. It is based on the idea that each group within the company should treat the recipients of their output as an internal customer and strive to provide high quality outputs for them.

Employees as Customers of the Organization

Managers should view employees as customers we can think of internal marketing as viewing employees as internal customers, viewing jobs as internal products that satisfy the needs and wants of these internal customers while addressing the objectives of the organization (Berry, 1981)

Herb Keller, co-founder and former CEO of Southwest Airlines

Internal relationships
Airtel Reverse Mentoring, Happy Mondays McDonalds Empowerment

Managing Relations with Customer Facing Employees

Smile campaigns
Reward and recognition Training and personal development Empowering the employees Salary, job role, power.

 Right from offer kit to onsite transfer to having Yahoo ! Logo painted on bike, internal marketing is there everywhere Freedom to express new ideas

Friendly relations in the team

Name: Archana Title: Software Engineer in Test Office: Mountain View, California, USA Hometown: Bangalore, India Education: University of Houston & Rice University, MS in Computer Science

Why did you decide to come to Google? Why do you like working at Google? What is your favorite perk/benefitat two working atand it was great fun working in a Before I joined Google I worked about start-ups Google?
environment Googlepositive energy that keeps me going small work there is an enormous amount of was like working for a startand have a lot of on-sitevoice is heard irrespective oflaundry facilities, dentalin the We growingmy amenities massages, my position at times up Google has the reputation of hiring the smartest people when I amand styling,problem, Ito work withto think twice to approach more services, hair I always wanted facilities, car smart people industry stuck in a daycare never have wash, and morebut someone that I surrounded by component of Googles workforce is a importantly, knowing I am am a valuable very smart people who are always willing to help me great motivator for me.

Advantages of the Internal Customer Concept

Everyone sees their role in the firm's total operations
Simple, involves everyone and is implementable...

 Blind Ads Exit Interviews Ex-employee feedback

Impact of Employees on External Customers

All employees are focused on the external customer
Employees relations with customers and managers ability to influence these

Potential for Employee Conflict

Incongruence between employee service orientation and perceived orientation of mgt. to service

!
Role ambiguity and conflict
Dissatisfaction Frustration

Desire to Quit

Schneider, 1980

Happy Employees....
= Happy Customers

The Recruitment Market

High cost of employee turnover

Improving employee retention

Attracting the right type of staff

Managing recruitment supply channels

Managing Internal Marketing Relationships

The HR / Marketing boundary

Operational aspects
- upwards communications - sideways communications - downwards communications

Organizational structure and culture

Homework
Case - Cobblers Enjoy their jobs More than Most from page 296 to 297 in Text Book