Internal Services Marketing

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SWP 59/91

“INTERNAL

SERVICES MARKETING”

PROFESSOR BRETT COLLINS School of Management Deaking University Victoria 3217 Australia (Tel: +6152 471277) and PROFESSOR ADRIAN PAYNE Marketing and Logistics Group Cranfield School of Management Cranfield Institute of Technology Cranfield Bedford MK43 OAL UK (Tel: 0234 751122)

Submitted to European Management Journal Copyright: Collins and Payne 1991

INTERNAL

SERVICES

MARKETING

INTRODUCTION

Over the past few years the term internal

marketing

is increasingly being used to

describe the application of marketing internally within the organisation. There are two dimensions relevant to our discussion of internal marketing. Firstly there is the notion that every department and every person within an organisation is both a supplier and a customer. The second aspect relates to the organisation’ staff and s involves ensuring they work together in a manner supporting the company strategy and goals. This has been recognised as being especially important in service firms where there is a close relationship between production and consumption of the service. It is thus concerned with both quality management and customer service and involves co-ordinated people and process improvement strategies. Internal marketing relates to all functions within the organisation, but it is vitally concerned with the management of human resources. However the traditional personnel department, and the more advanced human resources department, have frequently been oriented towards control and administrative activities rather than the alignment of human resources towards achieving strategic organisational purposes and goals. In this paper we explore the marketing of a particular internal service within the organisation - the human resource function. Our purpose is to illustrate how internal marketing concepts and methods used by marketing managers can provide the basis of a new perspective on meeting the opportunities and challenges faced by human resource managers. A market-oriented human resource manager is more likely to make an impact on the successof a company, through being more effective in both demonstrating the relevance of .human resource management (HRM) to all management team members, and helping other managers to increase their productivity. Our approach is to first consider the nature of the challenges and opportunities confronting human resource (HR) managers. A view of what is seen to be a central task for the HR management professional is then outlined. The congruence between marketing function activities and the HR management activities is then described. Finally, we consider how the HR manager can utilise the philosophy, ideas, and tools of the marketing function to make a more effective contribution toward the organisation’ objectives. s

CHALLENGES

FACING

THE

HR MANAGER

The managers in a company who deal with the ‘ people’ issues are now recognised as having an increasingly strategic role in the success of many businesses. Regardless of whether the function these managers perform is called personnel, human resources, industrial relations, or training and development, it collectively now represents a business role similar in importance to the areas of finance, marketing and operations management. This trend has been driven by a more intensely competitive business environment, increased use of technology in some industries, and the shift in corporate philosophy from asset management to operations management. A focus on operations management has forced CEO’ to understand the need for s

skilled HR executives if they are to successfully cope with change. An organisation able to adapt to change is generally found to be more able to sustain competitive advantage in an environment of increasing uncertainty. The constant stress of corporate take-overs, new ventures, the restructuring of companies, rationalisation of existing operations, new technology...
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