INTERNAL SERVICE QUALITY IN THE PUBLIC SECTOR

ORGANISATION
Ainan Mohd Yusoff,
Rubber Industry Smallholders Development Authority (RISDA),
Karung er!un"i ##$%&, '$(($ Kuala )umpur, Malaysia
ainanmy*yahoo+"om
ABSTRACT
Internal customer service quality of the frontline employees is crucial for
business success as the behaviour of the employees affects the customer perception of
the service. Within the public sector, however, serving the citizens increases the need
for transparency in the public sector administration. The operational environment of
the public services leads to the need for new and improved executive development
design, as well as new business management models to accommodate the changes in
the public services. The purpose of this paper is to investigate the possibility of
public sector organisations to be managed within the private sector framework
through the ervice !rofit "hain #odel. $ pilot study was carried out on the
employees of a public sector organisation to determine the organisation%s most
important service attributes. The results showed that Work &nvironment was the most
important component of the internal service quality of the public sector organisation.
The ervice profit "hain framework for the public organisations could be used as a
useful guide for directing the organisations towards achieving organisational goal, as
well as organisational development.
'eyword( ervice )uality, Internal "ustomer, Internal "ustomer *rientation, ervice
!rofit "hain "oncept, !ublic ector
INTRODUCTION
The public sector has globally undergone changes over the past +, years, especially in
the nature of public services and businesses. The changes in the role of those
managing the public services, as well as the populism and citizen participation,
increase the need for transparency in the public sector administration. "hanges in the
operational environment, has eventually changed the public services from service
provision to service viability. uch changes lead to the need for new and improved
executive development design, as well as new business management models.
The ervice !rofit "hain "oncept was based on the premise that profitability to a firm
derived from customer satisfaction and loyalty, which was derived from customer
value received, as well as the capability, productivity, satisfaction, and loyalty of the
employees. Thus, financial gains could be attained through profits, as well as through
focussing on the enablers of profit or business inputs, such as the employees and the
resources required to operate the business -Walker et al., +../0 1eskett et al., 2334,
23356. In the public sector organisations, the ervice !rofit "hain #odel could assist
the organisations to identify their chain7processes and the end goal, that is, the service
provision excellence -8avis, +..,6. In the private sector, the end goals were profit
and growth.
The internal service quality based on the ervice !rofit "hain "oncept was chosen for
this study because previous findings linked the improved external service quality to
the improvement in the internal service quality -cheneider and 9owen, 23:,0 9owen
et al., 23330 and $llred, +..26.
The study illustrated the organisational effectiveness to the internal service quality, set
as internal performance indicators of the organisation%s structures and processes
-;ilbert and !arhizgari, +...6. The health of the organisation depended on the degree
in which the employees share common values and how well the employees were
served by the organisation%s activities -8otchin and *akland, 23346. The notion of
employees as internal customers encouraged individuals to achieve higher quality and
productivity outcomes, leading to competitive services depending on employees%
capabilities -!apasolomou78oukakis, +..+6.
SERVICE QUALITY
ervice quality was defined as the result of comparison between customers%
expectation about service and their perception of the way the service had been
performed -;r<nroos, 23:40 !arasuraman et al., 23:,, 23::, 2332, 233460 the
=delivery of excellent or superior service relative to the customer expectation>
-?eithaml and 9itner, 233/60 as well as the customers% interpretation of their
experience -;aravan, 23356. It was viewed as a multidimensional construct -@ohnston
et al., 233,60 and as overall assessment -Wang and Ao, +..B6.
ervice quality created an essential ingredient for establishing and maintaining loyal
and profitable customer base -Cust et al., 233,0 ?eithaml, +...6 and acted as the
driving force for productivity and profitability -&dvardson et al., 23346. $chieving the
right quality could be done through customer education0 and individual preferences
and perceptions. ervice quality data was very useful in attaining service
improvement -haw and 1aynes, +..46 and the regarded as the root of customer
satisfaction -Davas et al+, +..46.
*bstacles to service quality improvements included lack of visibility0 difficulties in
assigning specific accountability0 time required to improve service quality0 delivery
uncertainties -;hobadian et al., 233460 and variability -;ummersson, 23326.
The service providers could provide good service through empowerment -Tschohl,
233:6 as giving front7line staff the latitude to make important decisions on customer
needs and enhance service quality0 and training, as inadequately trained front7line
staff would find it difficult to perform the task effectively -;ummersson, 23326.
INTERNAL CUSTOMER SERVICE QUALITY
The quality of staff and its impact on the quality of customer service had proved to be
vital to organisations -!apasolomou78oukakis, +..+6. Thus, treating employees as
customers could give the organisation a competitive edge.
Internal service encounters were interactions between the employees within the
organisation -!arakevas, +..26. These encounters could take place in three forms(
workflow0 support and advice0 and audit and evaluation encounters. &ach type of
encounter helped to classify different types of service and identify sources of
satisfaction and dissatisfaction in the internal service encounters -8avis, 233+6.
Internal customer service quality and performance measurements could be measured
from adapted &CE)F$A -"annon, +..+6, such as IGT&CE)F$A -!araskevas,
+..26 and &CE!&CH -"ronin and Taylor, 233+0 and #urphy, 23336.
Internal Customer
$n internal customer was defined as any member -employee6 of the organisation
receiving service and product from other members of the organisation to carry out his
or her Iob -?eithaml and 9itner, 233/6. &mployees were the internal customers of the
organisation -?emke, +..+6 and they represented an internal market within the
organisation -!apasolomou78oukakis, +..+6.
$s previously mentioned, the quality of staff and its impact on the quality of customer
service were vital in gaining a competitive advantage. Thus, employees should be
viewed as the organisation%s most valuable asset and treated as internal customers
-!apasolomou78oukakis, +..+6.
Internal Customer Ser!"e
The basic principle of internal customer service stipulated that every department in an
organisation existed to serve the external customer or another department. &ach
department either received work from, or processed work for another department
-?emke and ?emke, 23346. Thus, individual units or departments need to view
themselves as both customers and suppliers as they receive inputs from another
department -their supplier6, add value, and send the output of their work to another
department -their customer6.
!rocesses could be improved if each department treats the people who receive the
outputs from their work as =customers> -Harner et al., +..26. Internal service
processes included simplified standard operational procedures and activities that
support the front7line business function and interact with customers -Eoss et al.,
+..,6.
Internal Customer Ser!"e Qual!t# D!mens!ons
$ccording to the ervice !rofit "hain "oncept, the internal customer service quality
dimensions were workplace design0 Iob design0 employee selection and development0
employee rewards and recognition0 and tools for serving customers -1eskett et al+,
23346. These dimensions were similar to the four managerial processes that were
linked to employee satisfaction and retention -supervision0 benefits0 work design0 and
work conditions6. The processes were also known as the drivers of employee
satisfaction -Cust et al., 233/6. 1owever, from the literatures, other dimensions were
found to be equally important and need to be included.
In addition to the dimensions mentioned above, other dimensions adapted in the study
included work environment -Doon et al., +..20 8avidson, +..B0 Aam, 233/0 and
&dvardsson and ;ustavsson, +..B60 decision7making latitude -Dagil, +..+0 1eskett et
al., 23350 and Tschohl, 233:60 and information and communication -Hletcher, 23330
Cudnick, 233/0 and "aruana and !itt, 23356. In public sector organisations, the need
for transparency by the stakeholders made ethics an important dimension of internal
customer service quality -8avis, +..,6.
Internal Customer Ser!"e Qual!t# Measurement
everal service quality internal and performance measurements were being applied to
measure the internal service quality. This research applied &CE!&CH in constructing
the questionnaire. It is the perception7only model, adopting the similar &CE)F$A
dimensional framework based on the comparison of ;ap 2 and ;ap +, consisting of
items of &CE)F$A -"ronin and Taylor, 233+0 and #urphy, 23336.
THE SERVICE PRO$IT CHAIN
The internal service quality model in this study was based on the ervice !rofit "hain
concept, developed by 1eskett et al., -23346. $ccording to the concept, improvement
in the internal service quality could lead to improvement in the external customer
service quality -1art, 233,0 1eskett et al., 23340 and Aoveman, 233:6.
The variables in establishing the dimensions of internal service quality were based on
the internal service quality dimensions in the ervice !rofit "hain -1eskett et al.,
23346, as well as other dimensions adapted from the literatures proved to be important
to the internal customers. !revious studies had shown positive relationship were
indicated in the model suggested -Doon et al., +..20 9erkley and ;upta, 233,0 and
!apasolomou78oukakis, +..+6. Thus, the dimensions of the internal service quality
for the study were ethics0 workplace design and work environment0 Iob design and
decision7making latitude0 employee selection and development0 rewards and
recognition0 information and communication0 and adequate =tools> to serve
customers.
THE PUBLIC SECTOR
In private sector, customer satisfaction and loyalty could be attained through high
quality products and services that could meet customer needs and provide value for
money. The public sector organisations, on the other hand, provide services based on
the needs and expectations of the stakeholders -Wisniewski, +..26.
The challenge for a public sector organisation was achieving results, while
maintaining internal systems that would keep the organisation on track to reach its
goal. The goal of the public sector organisation was to ensure services were provided
to the public. The end goal was to provide public value through service delivery
excellence.
"hanges in the public sector in recent years saw the need to quantify and internalise
the public value and value added services. "hanges occurring in the operational
environment within which the government business was translated into action.
ervices had also been replaced by service viability as the primary variable to
determine priorities. These changes made obsolete the ways public organisation work
to meet the organisational goals, as well as created opportunities for public
organisation to experiment for new tasks and social innovation. $s the result, senior
public sector executives had to develop new skill sets and new models of management
to accommodate the changes. There was greater emphasis on contracting out
services, as well as the development of leadership frameworks and skill matrices that
demanded for new and improved ways for executive development to be designed.
These demands called for the public organisations to be entrepreneurial and to
innovate.

#anagers in the public sector were under increasing pressure to prove that their
services were customer focused and continuous performance being delivered.
Hinancial resources constraints made it essential that customer expectations were
understood and identified to assist managers to find cost effective ways of closing
service quality gaps and prioritising which gaps to focus on -Wisniewski, +..26.
The public sector services were responsible and accountable to citizens and
communities, as well as to the customers and the service users. Thus, the definition of
service quality in the public sector took a wider meaning than in the private sector
-Wisniewski, +..26.
RESEARCH METHODOLOGY
The study was carried out to answer the research question, ="ould public
organisations be managed within the private sector framework through the ervice
!rofit "hain #odelJ>
The question rose from issues arising from changes in the public sector in recent
years. $mong the issues were(
-i6 The operational environment within public services had changed from service
provision to service viability0
-ii6 There was the need for new, improved executive development design, as well as
new business management models to accommodate the change occurring in the
public services without changing end goals of the public sector organizations
-iii6 #any public organisations had more growth than expected to channel this
growth to deliver desired outcomes.
$ccording to 8avis -+..,6, public businesses could be managed within the private
sector framework through the ervice !rofit "hain #odel to direct public business
while recognising the distinct nature of the public organization. Thus, the ervice
!rofit "hain #odel could be modified to provide business development model for the
public sector organizations to identify the chain7processes and the end goals to clarify
the ambiguities of perceptions as expressed by concerned stakeholders over the
ultimate tangible purpose of public business.
$ pilot test was conducted to survey the level of importance of internal service quality
dimensions and employee satisfaction in a !ublic ector organisation. The scope of
the study was the extent of importance of internal customer service quality in a
;overnment $gency. The importance of the study was its contribution to the earlier
research on the employee evaluation of service quality in the private sector
organisations, as well as the relevance and similarities of the findings to the public
sector. !revious studies on the ervice !rofit "hain #odel focused on the private
sector organisations, particularly, services companies -!ritchard and ilvestro, +..,0
and Walker et al., +../6. The study gave some insights on the service quality in the in
the #alaysian !ublic ector and the results of the study could also be of value to the
development of the !ublic ector organisational strategies, as well as the
improvement in its service quality through the internal customer service quality
components.
The instrument used was adapted from the &CE!&CH -"ronin and Taylor, 233+6
because it shared the same concept of service quality as the &CE)F$A -Alusar, and
?ornoza, +...6 and performed almost identically in explaining about half of the
observed variations in the perceptions -)uester and Comaniuk, 23356. The
&CE!&CH focused on the fact that customer satisfaction is the result of service
quality -#urphy, 23336. It was also found to be a better predictor for the purpose of
assessing -)uester and Comaniuk, 23356, as well as had higher discriminant validity
than &CE)F$A -$ngur et al., 23336.

The ;overnment $gency in this study provides services to the rubber smallholders in
the development of the rubber industry as well as the livelihood of the stakeholders
-rubber smallholders6 through rural development, technology transfers and enhancing
productivity in the #alaysian rubber industry sector. The pilot study was focused on
employees who managed the organisation%s physical assets throughout the country in
their respective departments or branches. This area was chosen as the employees
involved were well distributed throughout the country and the nature of Iob was
bound to common policy. The importance of physical asset management had risen in
recent years as the amount spent to procure the assets -which included office
equipment6 and the increasing need for assets% maintenance calls for a substantial
portion of the organisation%s budget managing the assets. !roper management of the
organisation%s assets could help reduce the maintenance costs, give the assets a longer
life span, and eventually help reduce the constant need for procurements to replace the
existing assets.
The variables in establishing the dimensions of service quality was based on the
internal customer service quality dimensions in the ervice !rofit "hain, as well as
other dimensions adapted from the literatures found to be important. This model was
chosen because it could express the relationships in the internal customer service
quality -8avis, +..,0 Doon et al., +..20 and !apasolomou78oukakis, +..+6. The
instrument in constructing the questionnaire, as previously mentioned, used
&CE!&CH.
Resear"% Des!&n
The research was a combination of a descriptive and quantitative study. The research
obIectives were to determine the specific dimensions of the internal service quality
dimensions of the public service organisation which was the focus of the study0 to
examine the dominant elements of the specific internal service quality dimensions0
investigate the relationship between the internal service quality and the internal
service quality components0 to determine the level of employee satisfaction of the
public service organisation0 and to investigate the relationship between employee
satisfaction and the factor components.

The research was carried out to investigate the similarities and differences found in
the public organisations compared to the previous studies done on the private sectors
through the ervice !rofit "hain #odel.
Con"e'tual $rame(or)
The conceptual framework was developed from the organizational indicators to
support service quality. The ervice !rofit "hain concept developed by 1eskett et al.
-23346 was used to determine the internal service quality dimensions. The concept
was incorporated to explain the relationship between the internal customer service
quality dimensions and the overall service quality.
The resultant dimensions incorporated in the conceptual framework were ethics,
workplace design and environment0 Iob design and decision7making latitude0
employee selection and development0 rewards and recognition0 information and
communication0 and adequate =tools> to serve customers.
Resear"% Pro"e*ures
ampling was done based on the target population which included the employees
managing the physical assets in their respective divisions and branches throughout the
organisation.
The list frame was prepared. $s the target population was only 244, the pilot test was
expected to cover the whole population. The questionnaire was constructed based on
the elements in the dimensions of the conceptual framework. It consisted of closed
question with )i!ert scale.
The questionnaire consisted of three parts( the first part consisted of internal service
quality questions0 the second part consisted of questions pertaining to employee
satisfaction0 and the third part was the demographic profile of the respondent.
The scale utilized for the first part anchored for items ranging from -26 to -2.6,
namely( from Ktrongly 8isagree% -26 to Ktrongly $gree% -2.6. The items in the
questionnaire are shown in Ta+le ,.
Table 2( Items in the internal customer service quality evaluation questionnaire
8imensions )uestion
Go.
Items
&thics
Workplace design L
work environment
@ob design and decision7
making latitude
&mployee selection L
development
Cewards L recognition
Information L
communication
$dequate =tools> to serve
customers
2
+
B
4
,
/
5
:
3
2.
22
2+
2B
24
Work according to rules regardless of
consequences
Work at my very best although
organisation give low priority for the Iob
Celationship with co7workers
Celationship at different levels of the
organisation
Training upon appointment
ufficient power given to solve customer
problems
"orrect service on the first attempt to
avoid correction
Treating customers and other employees
well are equally important
!ublic recognition on achievements and
accomplishments
Aeadership qualities priority in rewards
and recognitions
#anagement informationMcommunication
affects behaviour, attitudeMknowledge
Technology helps build current knowledge
among employees
$dequate =tools> provided to serve
customers
Hlexibility in the operational, work
environment, employees and
organisational structure
The scale utilised for the second part anchored for items ranging from -26 to -2.6,
namely( from KEery 8issatisfied -26 to KEery atisfied% -2.6. The items in the
questionnaire are shown in Ta+le -.
Table +( Items on &mployee atisfaction in the questionnaire
)uestion
Go.
Items
2 !erceptions of my service quality
+
B
4
,
#y ability to influence my organisation%s performance
#y opinion on my supervisor%s supervising style
#y ability to influence my organisation%s internal customers
#y overall satisfaction with my Iob
The reliability analysis was performed on each of the scales to check for the internal
reliability. "ronbach%s N was used to test the reliability. The split test was done to
compare the variables in the first half of the test as the number of the items was large
enough to create two halves of the test that were designed to measure the same thing.
"ontent validity was chosen to ensure that the measure includes an adequate and
representative set of items that could tap the concept.
Data Colle"t!on an* Anal#ses
The questionnaires were being personally distributed and collected from the
respondents to ensure that data analyses could be done within a short period of time.
The survey mode was chosen as the data collection method for the research as a mean
to get the required information from the respondents. The questionnaires were self7
administered and arrangement had been made so that there was no interruption in the
respondents% work schedules. $nalyses done on the data collected were to test the
reliability of the instrument0 carry out the research obIectives mentioned earlier0 and
to answer the research question.
RESULTS
The resultant sample was 244, of which :5 respondents returned the questionnaires
-/..4+ per cent6. Ta+le . displays the profile of the respondents.

Table B( !rofile of the Cespondents
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
n P "umulativeP
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
;&G8&C #ale B3 44.:B 44.:B
Hemale 4: ,,.25 2.....
$;& ;C*F! Q +. years B B.4, B.4,
+2 R B. years 4. 4,.3: 43.4B
B2 R 4. years 3 2..B4 ,3.55
42 R ,. years 25 23.,4 53.B2
S ,. years 2: +../3 2.....
&8F"$TI*G chool leavers B3 44.:B 44.:B
A&E&A 8iploma 1olders B+ B/.5: :2./2
8egree 1olders 24 2/..3 35.5.
!ost7;raduate 2 2.2, 3:.:,
#issing 2 2.2, 2.....
@*9 !*ITI*G #anagerial : 3.+. 3.+.
upervisory B4 B3..: 4:.+:
taff 44 ,..,5 3:.:,
#issing 2 2.2, 2.....
&CEI"& T 2 year : 3.+. 3.+.
A&G;T1 2 R 2. years B: 4B./: ,+.:5
22 R +. years 3 2..B4 /B.++
+27 B. years +. ++.33 :/.+2
S B. years 22 2+./4 3:.:,
missing 2 2.2, 2.....
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
Rel!a+!l!t# o/ t%e Instrument
The coefficient N on the 23 items was ..3.+ indicating the instrument was reliable as
it was above ..5.. Gunnally -235:6 suggested the minimum of ..5. as acceptable,
while !etersen -23346 suggested a range between .., and ../ as the minimum level
acceptable.
$a"tor Anal#s!s
The '#* #easure of ampling $dequacy was ..:++, indicating sufficient items for
each factor. The 9artlett%s Test of phericity was significant indicating the correlation
matrix is significantly different from an identity matrix, in which correlations between
variables are all zero -Aeech et al., +..56.

The initial factor extraction was conducted using 'aiser%s criterion. *nly factors with
eigenvalue greater than one were selected -Aeech et al., +..56. The results of the
factor analysis showed that four significant factors were found. The first factor
explained +5.5: P of the total variance0 the second 25.+4 P0 the third 2+.4/ P0 and
the fourth 2..+5 P. The cumulative per cent of the four factors explained /5.5/ P of
the total variance.
The elements within the range were recalculated to obtain the eigenvalue, percentage
and the alpha value of each factor component. $fter conducting the varima, rotation,
four variances of the factors were found( the first was Work &nvironment0 the second,
Internal "ustomer *rientation0 the third, Integrity0 and the fourth, Internal
"ommunication. Ta+le 0 illustrates the results.
Table 4( Hactor $nalysis of the Internal "ustomer ervice )uality &lements
"omponents
2 + B 4
$ACTOR ,1 2OR3 ENVIRONMENT
Celationship with co7workers
Celationship at different levels of the
organisation
Treating customers and other employees well
are equally important
Aeadership qualities priority in rewards and
recognitions
Technology helps build current knowledge
among employee
Hlexibility in the operational, work
environment, employees and organisational
structure
$ACTOR -1 INTERNAL CUSTOMER
ORIENTATION
Training upon appointment
ufficient power given to solve customer
problems
"orrect service on the first attempt to avoid
correction
!ublic recognition on achievements and
accomplishments
$ACTOR .1 INTEGRITY
Work according to rules regardless of
consequences
Work at my very best although organisation
give low priority for the Iob
$ACTOR 01 INTERNAL
COMMUNICATION
#anagement informationMcommunication
affects behaviour, attitudeMknowledge
$dequate =tools> provided to serve
customers
-igenvalue
P of variance
N
..5/+
..5:3
..5B/
..5:4
../3.
../.3
,.//4
4..4/.
..:,.
..5:,
..5./
../53
..43B
2.,4:
22..,,
..555
..522
..:2+
2.2//
:.BB.
../.,
..5++
..5B+
2.2.5
5.32.
..4+B
The dominant elements of the components or specific dimensions of the internal
customer service quality of the components were further examined. It was found that
the element =Celationship with co7workers> had the highest mean -:.326 and the
element =ufficient power given to solve customer problems> the lowest means
-/.B+6. The Work &nvironment component had the highest average mean, indicating
its degree of importance to the respondents. The results are summarized in Ta+le 4.
Table ,( 8ominant elements and factor components
Hactor "omponentsM&lements #eans td. 8eviation
$ACTOR ,1 2OR3 ENVIRONMENT
Relat!ons%!' (!t% "o5(or)ers
Celationship at different levels of the
organisation
Treating customers and other employees well are
equally important
Aeadership qualities priority in rewards and
recognitions
Technology helps build current knowledge
among employee
Hlexibility in the operational, work environment,
employees and organisational structure
$ACTOR -1 INTERNAL CUSTOMER
ORIENTATION
Training upon appointment
ufficient power given to solve customer
problems
"orrect service on the first attempt to avoid
correction
!ublic recognition on achievements and
accomplishments
$ACTOR .1 INTEGRITY
Work according to rules regardless of
consequences
Work at my very best although organisation give
low priority for the Iob
$ACTOR 01 INTERNAL
COMMUNICATION
#anagement informationMcommunication affects
behaviour, attitudeMknowledge
$dequate =tools> provided to serve customers
46789:9
;78,
:.54
:.,+
5.:+
:./5
:.4.
+5../3:
/./.
/.B+
/.:B
5.+:
2,..+B.
5.+.
5.:B
2,.B/.,
:.+/
5.2+
:764-::
,7669
2..5+
2.B35
2.:55
2.23B
2.+:/
/.5.25.
+.4,2
+.B34
2.3B.
2.5:B
B.52.B:
+.4,:
2.:::
+.:.+33
2.4+/
+..4B
The relationship between the internal customer service quality and the factor
components showed that the correlations were positively high with the relationship
between internal customer service quality and Hactor +( Internal "ustomer *rientation
the highest. Ta+le : illustrates the relationship.
Table /( The Celationship between the Internal ervice )uality and the Hactor
"omponents
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
8imensions pearman rho -U6
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
Hactor 2( Work &nvironment ..54,VV
$a"tor -1 Internal Customer Or!entat!on 67;49<<
Hactor B( Integrity ..,2/VV
Hactor 4( Internal "ommunication ../B+VV
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
Gote( VV "orrelation is significant at ...2 levels -+7tailed6.
pearman rank order correlation was done as the data were ordinal. The factor
components were positively correlated to the internal service quality. Internal
Customer Or!entat!on was ranked the highest, while Inte&r!t#, the lowest. Thus, the
organisation should look into enhancements of Internal "ustomer *rientation
elements to effectively improve its Internal ervice )uality.
The employees in the study were generally satisfied with their Iob. While their
perceptions on their service quality were high, some efforts are needed to improve the
current supervising style. Table 5 illustrates the overall employee satisfaction of the
employees in the study.
Table 5( &mployee atisfaction of the respondents
&mployee satisfaction #eans td. 8eviation
!erceptions of my service quality
#y ability to influence my organisation%s
performance
#y opinion on my supervisor%s supervising style
#y ability to influence my organisation%s
internal customers
#y overall satisfaction with my Iob
5.3.
5.5/
5.//
5.5.
:.2/
2.+:4
2.,2.
2.4+:
2.+:4
2.4.,
The relationship between the employee satisfaction and the factor components
showed that there were positive correlations between employee satisfaction and the
factor components 2, +, and 4. Hactor 2( Work &nvironment had the strongest
relationship with employee satisfaction, while the relationship between employee
satisfaction and Hactor B( Integrity was not significant. Ta+le ; illustrates the
relationship.
Table :( The Celationship between &mployee atisfaction and the Hactor "omponents
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
8imensions pearman rho -U6
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
$a"tor ,1 2or) En!ronment 6746.<<
Hactor +( Internal "ustomer *rientation ..4/3VV
Hactor B( Integrity ..2:3
Hactor 4( Internal "ommunication ..B3.VV
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
Gote( VV "orrelation is significant at ...2 levels -+7tailed6.
Hrom the above results, it was found that employee satisfaction could be improved, if
the organisation paid more attention to the 2or) En!ronment elements.
LIMITATIONS
The study could be better if the sample were taken among the field employees or the
front liners dealing with the stakeholders. 8ue to unavoidable constraints, the samples
selected were employees dealing solely with the internal customers instead of those
dealing with both the stakeholders, as well as internal customers.
MANAGERIAL IMPLICATIONS
The study could pave the way to studies based on other aspects of the ervice !rofit
"hain #odel, especially as impact studies on programs introduced by the $gency to
enhance the smallholders% development and livelihood. The service provision
excellence could also indicate the smallholders% quality of life improvement.
The ervice !rofit "hain model improvised for the public sector organization could
act as a guide for development and process excellence in the following ways(
-i6 "ore functions that could be identified as providing the link in the chain must be
mapped for quality0
-ii6 Where a link in a chain has no business function or person clearly responsible
then this must be rectified0
-iii6 *nce the mapping process was completed, devise strategies so that quality and
achievement of agreed actions can be measured0 and lastly
-iv6 The ultimate evaluation of success is to gather feedback from the internal
customers as well as the external customers -the stakeholders6.
The above steps are necessary in adapting the ervice !rofit "hain in a public sector
organization effectively.
$UTURE RESEARCH RECOMMENDATIONS
Huture studies are needed in this area, so that the comparisons among the public sector
organisations, as well as between public and private organisations. In doing so,
organisational strategies could be improvised in the public sectors.
!revious study on the internal service quality in the #alaysian Telecommunication
Industries -$inan, +..:6 showed that Internal Su''ort S#stem played an important
role in the internal service quality of the #alaysian telecommunications companies.
1owever, the Inter'ersonal Relat!ons%!'s component had the highest mean.
In contrast, 2or) En!ronment was found to be most important component in this
study. This showed that internal communications and areas contributing to efficiency
in the internal system, such as technology and operational flexibility were very
important to the private organisation. *n the other hand, factors contributing to work
environment such as relationship with co7workers and within organisation levels,
leadership qualities, and so forth, proved to be the very important in the public
organisation. Thus, both sectors acknowledged the importance of the elements found
in the Inter'ersonal Relat!ons%!'s -of the previous study6 to the Internal ervice
)uality of the organisations.
9oth the public and private sector found =relationship with co7workers> as the most
important element, indicating the importance of team work both in the public and
private sectors. The least important element in the private sector was =rewards in
intrinsic forms>, while in the public sector, =sufficient power given to solve customer
problems>. The findings reflected the very nature of private and public services.
Thus, a more in7depth study is suggested to investigate the differences between the
public and the private sector organisation
Inte&r!t#, resulted from this study showed that it was surprisingly, the least important
component. It was positively correlated to internal service quality, but no significant
relationship to employee satisfaction.
&thics had not been included as a dimension in the previous study on the private
sector. Huture studies should take this dimension into account, as most business
problems presently occurring are due to problems of accountability and transparency
in the operation of the businesses. The degree of importance ethics between the
public and private sector organizations should also be compared.
CONCLUSIONS
The pilot study carried out showed that the research could be done at a bigger scale
with the scope focusing on more important issues in the public services organisations.
1owever, a public sector version of the ervice !rofit "hain model would provide a
practical and useful guide for directing business in a coordinated fashion towards
achieving organisational goals and facilitating organisational development. This
model however cannot be applied generically to services but managers should
undertake the development of context7specific models of their organisation.
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