This chapter provides an overview of the study and introduced the background of the study, problem statement, purpose of the study, research questions, the significance and research limitations of this study and the definition of key terms.
Background of the Study
Due to the rapid globalization and customization, the service industry faces significant challenges to meet customer demands on the endeavor to provide unique and memorable experiences (Chathoth, Altinay, Harrington, Okumus, & Chan, 2013). As part of the service industry, employees need to interact with different types of clients, including those who take advantage of the notion "the customer is always right" by making excessive or arrogant requests towards the service provider (Berry & Seiders, 2008). Service industry employees might be confronted with stressful situations while dealing with demanding and insulting customers. Their actions can vary from using offensive words, acting violently, speaking vociferously, to cutting in lines towards employees (Harris & Reynolds, 2004). This also includes the fulfillment of displayed rules, which means behavior standards established by the company to achieve organizational purposes (Diefendorff, Richard, & Croyle, 2006).
The service industry, also known as the tertiary sector, encompasses activities related to services that do not produce or transform material goods, but intangible products that are offered to satisfy the needs of the population, which coincides with its production and consumption (Morales, 2009). The service industry includes different subsectors, and may vary in each country, nevertheless, the United Nations provided the International Standard Industrial Classification of All Economic Activities (ISIC), categorizing the service industry in subdivisions such as commerce, hospitality, transportation, storage, communications,
2
finance, insurances, service to companies, communitarian, social and personal services and so-called public services among others (United Nations, 2008).
The services industry is an important generator of employment and represents a large part of total Gross Domestic Product (GDP) in both developed and developing economies, and its growth has been evident in practically all the world's economies (Organization for Economic Co-operation and Development [OECD], 2008a). Taking El Salvador as an example, a developing country, the service sector is an essential component of the country’s GDP (Central Reserve Bank, 2017). According to data from the Central Reserve Bank (2017) of El Salvador, the service sector reported 63% of the GDP. In El Salvador, there are about 19,000 companies in the service sector, which generates more than 430,000 jobs (PROESA, 2017). In comparison with a developed country, such as Taiwan, the service sector represents 72% of the GDP, going from a manufacturing economy to a service-oriented one (Directorate General of Budget, Accounting and Statistics [DGBAS], 2017). The different activities that fall under the service sector in Taiwan comprise the wholesale and retail trade, transportation and storage, information and communication, finance and insurance, real estate and ownership of dwellings, public administration and defense, and miscellaneous others (DGBAS, 2017). According to the DGBAS (2017) the finance, insurance, and real estate activities are the most dominant in Taiwan’s service industry, creating significant competitive employment opportunities in the country.
Despite the economic benefits that service industry provides, there is a negative side that affects front-line employees in this industry. The service sector is characterized by the extensive interactions between customers and providers (Steinberg & Figart, 1999) In order to deal with customer demands, service industry employees may need to show or hide specific emotions to grant an exceptional service (Wharton & Erickson, 1995), typically known as emotional labor (Hochschild, 1983). Employees who provide customer service are
3
vulnerable to incur in emotional labor, due to the constant management of situations that evoke negative emotional reactions, such as dealing with impatient or demanding customers, thus expecting workers to take part of displaying certain emotions which may not be steady with their genuine feelings (Pizam, 2004). Literature suggests the utilization of two strategies for emotional labor: surface and deep acting (Grandey, 2000; Gross, 1998; Hochschild, 1983).
For example, when employees require faking an emotion keeping internal feelings intact, perform surface acting. However, if employees need to change emotions and feelings consciously from the inside (displaying more authentic emotions) requires incurring in deep acting.
Previous studies found that there is a significant positive relationship between emotional labor and burnout among service workers (Brotheridge & Grandey, 2002; Cheung, Tang, &
Tang, 2011; Kim, 2008; Zapf, 2002). The constant use of emotional labor may create emotional exhaustion and disengagement with individual’s true feelings (Hochschild, 1983).
Also, some feelings of diminished personal accomplishment can be exposed if the employee believes that the effort of managing emotions did not have the expected results, thus leading to burnout. Schaufeli and Enzmann (1998) defined burnout as a state of emotional and physical exhaustion caused by the stress of the workplace. This can be experienced by individuals who perform jobs that involve a constant encounter with people (Maslach &
Jackson, 1981). Employees who perform “people work” are exposed to emotional exhaustion, depersonalization of feelings and diminishment of personal accomplishment, becoming key components of burnout (Maslach, 1982).
Some interactions between customer and employee can be accompanied with customer mistreatment, affecting employee’s well-being (Sliter, Jex, Wolford, & McInnerney, 2010).
Customer mistreatment is referred to any action that incurred in offensive, demeaning, disrespectful or aggressive treatment from the customer to the employee (Dormann & Zapf,
4
2004; Grandey, Dickter, & Sin, 2004) and is commonly experienced among service industry workers (Boyd, 2002). The mistreatment received by the customer can be perceived as an aggressive mistreatment, such as when the customer shouts or insults to the employee, or also as demanding mistreatment, when the client makes exaggerated and/or arrogant requests while demanding higher levels of customer-employee transactions (Grandey, Kern, & Frone, 2007; Skarlicki, Barclay, & Pugh, 2008).
Previous studies had found that customer mistreatment generates burnout (Ben-Zur &
Yagil, 2005; Dormann & Zapf, 2004). However, little attention is paid to the role that customer mistreatment plays as a moderator between emotional labor and burnout. Therefore, this study tries to examine the important role that customer mistreatment plays between these two variables. On the other hand, literature suggests that culture plays an important role at emotions management, therefore, is important to make a comparison between Western and Eastern countries, such as El Salvador and Taiwan, and the emotional labor performed due to cultural differences (Shipper, Kincaid, Rotondo, & Hoffman, 2003).
Problem Statement
The activities of the service sector are becoming increasingly important for all countries worldwide. The evolution of services in the last decades explains the great impact on GDP in terms of value added (OECD, 2008b). Furthermore, as the economy in most developed countries, such as Taiwan, has shifted from manufacturing to the service industry, is necessary to study the job conditions for the employees working in this industry.
The rapid growth of the services sector in the economy entails emotional labor as a required job skill among service employees (Steinberg & Figart, 1999). Although there are already many studies about the relationship between emotional labor and burnout (Brotheridge & Grandey, 2002; Cheung et al., 2011; Kim, 2008; Zapf, 2002), few studies
5
have been done on the relationship between emotional labor, burnout and customer mistreatment in developing countries.
Most of the previous studies have been done in Western developed countries (Brotheridge & Grandey, 2002; Cheung, et al., 2011; Grandey et al., 2007; Kim, 2008; Zapf, 2002). For example, Grandey et al. (2007) developed a research measuring verbal abuse from customers, burnout and the role of emotional labor among U.S employees who have customer contact, finding that employees who have high interaction with customers are susceptible to receive verbal abuse from customers, with higher level of emotional labor demands. Also, they found that the customer mistreatment is a predictor of burnout.
This study seeks to make a comparison between El Salvador and Taiwan, and how its characteristics concerning culture and economy affect the relationship between emotional labor, burnout and customer mistreatment. Thus, this research will explore the behavior among developed and developing countries, and also variations across Western and Eastern countries, regarding the management of emotions.
In order to fill these gaps, this study aims to explore the relationship between emotional labor and burnout and examine the role that customer mistreatment plays in this relationship.
Furthermore, a comparison will be done between Salvadorean and Taiwanese employees in the service industry.
Purpose of Study
The purpose of this study is to discuss the emotional labor performed by service industry employees in El Salvador and Taiwan related to burnout. It is assumed that employees who have frequent interaction with customer need to perform emotional labor using either surface or deep acting. The effort of managing emotions may lead to burnout. Therefore, the purpose of this study intended to examine the relationship between emotional labor and burnout.
6
Furthermore, explore the moderating effect of customer mistreatment on the relationship between emotional labor and burnout, while making a comparison between Salvadorean and Taiwanese employees.
Research Questions
Therefore, the study developed four research questions:
1. Does surface acting have an effect on Salvadorean employee’s burnout more than Taiwanese employees?
2. Does deep acting have an effect on Salvadorean employee’s burnout more than Taiwanese employees?
3. Does customer mistreatment have a moderating effect between emotional labor and burnout?
Significance of the Study
The present study contributes to both theoretical and practical field. For the theoretical part, customer mistreatment is an increasing discussed issue. Many researchers have proposed the relationship between emotional labor and burnout, but scarce studies examine the moderating role that customer mistreatment plays on emotional labor and burnout.
Furthermore, most of the studies are performed in Western developed countries. There is no existing literature regarding emotional labor and customer mistreatment in El Salvador, and few studies have been done regarding this issue in Taiwan. Therefore, this study aims to contribute theoretically to the current literature on emotional labor, burnout, and customer mistreatment in both developed and developing countries, furthermore, the study will address the differences in emotional labor due to culture variances between Western and Eastern countries.
7
In practice, by understanding the possible reasons and actions that customer mistreatment might have, HR practitioners can take more advanced measurements to assist service industry employees in overcoming the difficulties that the interaction between employee-customer represents. Emotional labor is a very discussed due to the impact that generates on employees. Therefore, this study could help provide a better insight and recommendations to diminished the negative effects of emotional labor, burnout and customer mistreatment on employees in the service industry.
Definition of Terms Emotional Labor
Employees who work attending customers are expected to display certain emotions and suppress others, and this effort of managing emotions in exchange for a wage has been defined as “emotional labor” (Hochschild, 1983).
Burnout
Schaufeli and Enzmann (1998) defined job burnout as a state of emotional and physical exhaustion caused by the stress of the workplace. Nevertheless, the study developed by Maslach and Jackson (1981) is the one that has been used as base in many studies. Maslach and Jackson defined burnout as a syndrome that can be explained in three dimensions: (1) emotional exhaustion, (2) depersonalization and (3) personal accomplishment.
Surface Acting
Grandey (2000) explained surface acting as the strategy to display required emotions with no significant effort, keeping internal feelings intact
8
Deep Acting
Deep acting is the process of changing emotions and feelings consciously from the inside, in order to truly feel the emotions required for the job (Brotheridge & Lee, 2002).
Emotional Exhaustion
Emotional exhaustion represents mental and emotional tiredness that an individual exhibit due to the execution of daily work activities (Maslach & Jackson, 1981).
Depersonalization
A depersonalization of the individual is understood as a general attitude of negative feelings towards others, irritability, disinterest, and cynicism in the general interpersonal treatment (Maslach & Jackson, 1981).
Personal Accomplishment
Lack or shortage of personal accomplishment refers to the feeling of low self-esteem and the perception of low-achievement on tasks performed. Feelings of reduced competence, achievement and motivation in general, which causes the development of dysfunctional attitudes at work, low performance and personal effectiveness (Maslach & Jackson, 1981).
Customer Mistreatment
Customer mistreatment is referred to any action that incurred in offensive, demeaning, disrespectful or aggressive treatment from the customer to the employee (Dormann & Zapf, 2004; Grandey, et al., 2004).
9
Service Industry
The service industry, also known as tertiary sector, encompasses activities related to services that does not produce or transform material goods, but generally intangible products that are offered to satisfy the needs of the population, which coincides with its production and consumption (Morales, 2009). Includes subsectors such as commerce, hospitality, transportation, storage, communications, finance, insurances, service to companies, communitarian, social and personal services (United Nations, 2008).
10