EMPLOYflucu STOMER RELATMNS Thesis fat the beam oi M. A. MICHIGAN STATE MRSITY‘ W‘imam W. Adams "a ’4 2'!- I? am THEE’“i u WWW!WWWRWIIWll WWI 1 3 129:3 00695 3404 LIBRARY Michigan State University fi PLACE IN RETURN BOX to remove this checkout from your record. TO AVOID FINES return on or before date due. DATE DUE DATE DUE DATE DUE ll II II I MSU 1: An Afilrmeflve AotioNEqual Opportunity Inetitmlon chS-DJ THES THEE“ .“ mun-V THEB" mrmos 0F DEVELOPING AND FURTERING EMPLOYEE-GUS TIMER RELATIONS by~ William 1!. Adams An Abstract Submitted to the College of Business and Public Service of Michigan State University'of'Agriculture and Applied Science in partial fulfillment of the requirements for the degree of ‘Mester of Arts Department of General Business Curriculum of Food Distribution Approved / a w THgsu An Abstract This thesis deals with the nebulous but important relation- ship between.employees in retail food chains and the customers they serve. It strives to isolate and study those factors which can con- tribute to a bettering of these customer relations which are herein defined as that collection of significant acts, attitudes, and inter- changes that take place between company personnel and customers, and that are at best productive of good will and loyalty on the part of customers toward a company's stores, products, and personnel. Sinoe the temperament and ability as well as the attitudes of employees are important considerations in this matter, the areas of personnel recruiting and screening come under consideration. The usefulness and limitations of tests and interviews are discussed, and the merits of recommendations by employees are weighed and found useful when the loyalty of personnel is once established. The third chapter treats the training phase of this pro- bleme The need for a positive approach and the reasons for courtesy are discussed. The benefits of building a strong tradition, and training by example are put forth, as is the need for some negative checks on how well the training is received. Finally, the thesis considers the environment for courtesy- those factors which contribute to the friendly, interested attitude that is a pre-requisite for sound employee-customer relations. “TH £5“ Satisfactory working conditions, the prepaganda of posters and the personnel publication, contests and courtesy campaigns, effective supervision and store meetings, institutional advertising, the mold- ing of the customer's attitude, and the sense of belonging ineulcated by profit sharing, stock plans, and bonuses are all included in the discussion and analysis of those elements that make for an environ- ment of courtesy. The general conclusions reflect a need for sound recruit- ing, screening, and training processes, as well as the effective use of those elements that constitute the environment for courtesy. Generally speaking, companies that treat their employees with fair- ness and consideration have the best chance of having sound employee-customer relations. The summary chapter contains a questionnaire check list covering those areas discussed in the body of the thesis. 4 “I'M ACKNOWLEDGEMENTS The author would like to acknowledge his indebtedness to all those who have made this thesis and the school year that preceded it possible. In particular he would like to single out the following for special thanks: Dr. E. A. Brand for his wise guidance and the inspiration he provided throughout the year. Dr. D. J. Luck who proved friendly and helpful on a number of occasions and who served as thesis director. Fisher Brothers Company of Cleveland who sponsored the author for this year of study. The National Association of Food Chains that promoted this food distribution program. The author's wife whose indomitable patience and long hours of typing made this thesis possible. Michigan State University July 1956 THE—5“ TABLE OF CONTENTS METHODS OF DEVELOPING AND FURTHERING EMPLOYEE-CUSTOMER RELATIONS CHAPTER PAGE I. INTRODUCTION . . . . . . . . . 1 A. Explanation and Definition of Customer Relations 1 B. Scope of Paper . . . . . . . . 2 C. Retailers have a Special Problem in Customer Relations . . . . . . g . 4 D. Fringe Benefits and Morale . . . . . 7 E. The Approach: Positive or Negative . . . . 12 F.’ Good Relations: An Attitude . . . . . . 16 G. Type and Source of Information . . . . . 20 II. GOOD PERSONNEL: THE RAW'MATERIAL FOR SATISFACTORY ENPIOYEE-CUS'IOHER RELATIONS . . . 22 ‘A. How Recruits are 3elected . . ._ . . . . 24 l. Tests . . . . . . . . . . . . . 24 2. Interviews . . . . . . . . . . . . 26 3. References and recommendations . . . . . 28 B. The Sources: ‘lhere to Recruit . a . . . . 30 THE—5‘s L I I I O TIE TRAINING ME 0 O O O . O O O A. The Positive Approach . . . . . . . l. Honesty . . . . . . . . . . . 2. Personal Appearance and Store Cleanliness . . The Negative Approach . . . . . . . . Tradition and Example . .. . . . . . . The Reasons for Courteous Actions are Important Check! and counter-uh80b e e e e e e 0 IV. THE ENVIRONMENT FOR COURTESY . . . . . . A. What is Meant by Environment . . . . . . working Conditions . . . . . . . . . . Frapaganda: Posters, Personnel Publications, Etc. Rewards and Courtesy Campaigns . . . . . . Supervision, Leadership and Store Meetings . . Institutional Advertising . . . . . . Customer Attitudes . . . . . . . . . The Sense of Belonging . . . . . . . . V. SUMMARY AND CONCLUSIONS . . . . . . . STATISTICAL CHART . . . . . . . . . . BIBLIOGRAPHY . . . . . . . . . . . 37 38 43 44 46 48 51 52 55 55 56 59 61 63 66 67 68 72 79 80 L CHAPTER I INTRODUCTION A. EXPLANATION AND DEFINITION 9§_CUST9u§5 RLLATIONS This thesis deals with one of the most important and one of the least tangible areas in the food distribution picture, public relations. More specifically this is an attempt to isolate and analyse that phase of public relations that is here referred to as customer relations, a facet of public relations that is narrower and more elusive than even consumer relations. ‘lhile consumer relations deal generally with the likes, dislikes, and interests of the consumer public, they are more con- cerned with these as they bear on production and marketing problems. Customer relations are mere the problem of the retail outlet and deal with those actions on the part of company personnel that lend personality and an air of courtesy to an otherwise coldly impersonal store. This area is worthy of consideration since it remains as the one great variable among the top food distributors of the country. In today's tightly competitive situation the once dominant variations in price, display, layout, and other physical features of food stores now tend to equalize, making one store much like another. More and:more important is the task of seeing to it that the shopper identifies your store as 'her' store.1 1 Publig_Relation§, Scott Advisory Service Publication, p. 2. As an.important and distinguishing element in food distribution, customer relations are worthy of study and research. The first step in any such study is a formal definition of terms. This is made difficult by the very elusivpness of the customer relations concept which not only renders impossible a genus and specific difference type definition, but makes a descriptive definition unsatisfactory in.many ways. However, an attempt is certainly in order and should prove valuable if only by lreason of its being the first or one of the first of its kind. Definition: Customer relations comprise that collection of significant acts, attitudes, and interchanges that take place between company personnel and customers, and that are at best productive of good will and loyalty on the part of customers toward a company's stores, products, and personnel. This attitude is ideally marked by a courtesy and consideration on the part of personnel that has generally been reserved for those who own their own business, but which is new the goal of progressive retailers who have come to realise the inestimable benefits accruing to sound customer relations. B. SCOPE 9;; PAPER This thesis is dedicated to the pursuit and amplification of methods aimed at developing and furthering sound customer relations for a retail food chain. To this end there will be considerations of the various aspects of the customer relations problem.beginning with and centered around the essential element of the whole study, the human beings who make up the personnel of a particular company. TH E5“ Since the men and women who represent and make up the company are the ambassadors of courtesy and consideration, and embody in them- selves the personality of the company, the recruiting, screening, and training of these people have a part in this study. If the personnel of a company is inextricably connected with a sound customer relations policy, then where workers are obtained, how they are selected, and the training they undergo cannot be neglected in the search for the road to courtesy. In addition to those elements that fall under the general heading of personnel, there are considerations of enwironment that are also felt to be very important to sound customer relations. Carefully selected and trained men and women who work in clean, well-lighted, air conditioned stores, carrying a reasonable work load and receiving adequate compensation are fundamentally well-disposed toward treating customers in a friendly and courteous manner. That employees who are treated in an equitable and courteous manner are more likely to be good customer-relations men.is not a revolutionary observation, but it is an important one. People seem.inclined to do unto others as others do unto theme Carefully selected and trained personnel Operating in an atmosphere of courtesy may not guarantee ideal results, but they provide the firmest possible basis for a successful cumtomer relations programs This thesis attempts to build as sound a program as possible that will give a retail food chain an organisation that will personify friendly service and customer courtesy. This will be accomplished by careful attention to personnel selection and training, and a chainpwide atmos- phere of friendliness and fair play. THE? 4 In addition, some consideration should be given to the promotion of personal identification of employees' own welfare with that of the company as a whole. To this purpose, the work includes discussions of such fringe benefits as profit sharing, stock issues and bonus plans. The customer relations program proposed in the summary contains all these elements and ingredients that go into the recipe for company- customer courtesy. C. RETAILERS HAVE A SPECIAL PROBLEM IN CUSTOMER RELATIONS Better customer relations and higher morale in general are very much like the weather. Everybody's talking about it, but no one is doing anything. All retail food companies are concerned with morale and friendliness, the intangible factors that add character and warmth to otherwise austere stores. -None has done very much about it. It is felt by many that good customer relations are the great- est asset a retail company has after the bare essentials of sound business have been established. Yet no company has, or feels it has, the answer to how this atmosphere is to be attained. Many have tried, but none has conquered. All realise that this area of employee-customer relations is the vast, untapped area that has not as yet been explored and exploited, yet all admit that herein lies treasure beyond measure. Unlike manufacturers or wholesalers, the retailer has no protective middleman between himself and the ultimate consumer. Though the success or failure of his enterprise will be affected by his merchandise, his prices, his location, and man other factors, a vital consideration will be how his store is regarded by his customers and others with whom he has dealings. These compose his public. Its attitude will be the cumulative result of numerous and in some cases indefinite and fleeting impressions that combine to form a chain's public relation. Mn- 2 Tom Mahoney, Rita Hession, Public Relations for Retailers (New York: The Macmillan Co., 1949) p. I. 5 It is the purpose of this work to delve into these indefinite and fleeting impressions and into the acts and attitudes that cause them with the hope that some tangible principles and mentods might be found to serve as a guide for better and more fruitful public relations. To this end, the attempts being made by several chains will be reviewed and categorised. This study will be augmented and analysed by a consideration of customer relations in the abstract, with the resulting principles discovered, serving as norms and guideposts. Since throughout all public relations considerations. the human element inevitably runs, there will be some discussion of the raw material for sound attitudes, i. e., the personnel of a company. ' If the type of manpower involved is important, than the "who", I'where", and "how" of personnel hiring become worthy of attention. “he malnss the best emissary of good will? Or, is there no such person as a best type? lhere do companies feel, they find the most satisfactory recruits? How do they screen out undesirables from among the recruits? Since the. individual employees males the substantial contribution to . sound customer relations, these and similar considerations are an important part of the over-all study. Since the training in a company is that furnace through which dross raw material is passed in the hopes of producing a usable and satisfactory worker, this too has a place in the public relations' picture. Finally, since there are many intangible locales that effect ‘- the over-all morale and attitude of a store or company, these too will be brought under scrutiny. It will be seen that a negative approach to the problem—"Say 'Thank you' or be fired1”—cannot hepe to inculcate a THEs 6 lasting attitude in personnel. For this reason, these positive approaches to the matter in hand are studied. It will be seen that courtesy and morale constitute an attitude that best thrives in a distinctive atmosphere. This atmosphere is one of courtesy and satisfaction. It is felt that the man who works in a clean well-lighted store, doing .a job that is within his capacity, under the direction and en- couragement of sympathetic, understanding, and courteous administrators, and for a substantial remuneration will have the best chance of being a good public relations man for his company. If he feels his work is appreciated, and that he has a reasonable opportunity for advancement, he will most likely pass on the good will he feels. In other words, good morale generally equals good customer relations. The small food chains' biggest advantage along with tightened control is the personal interest in the business that they are often able to generate.3 Personal interest makes for that extra effort, that added service, that friendly smile, all of which add up to a store where peeple wish to shop."l Mr. W. C. Ferguson, personnel manager of herican Stores Company, mentioned the fact that Penn Fruit company could place a relative of the owners in many of its first stores as one reason for that company's great success.5 Perbenal interest made for success. 3 ”Pint Size Super Makes Big Impression On Small Town,” Progressive Grocer, April, 1956, pp. 78-85. . 4 ”Castrogiovanni Family Work Together, Push Sales Over #750,000,” Progressive Grocer, July, 1955, p. 70. 5 From a lecture delivered at Michigan State University, May 3, 1956 by Mr. Ferguson. THEE“ D. FRINGE BENEFITS AND MORALE Food chains of all sizes are trying to inculcate this personal interest, realizing that it is a company's most potent merchandising weapon. Many companies are turning to fringe benefits that not only in- crease over-all personnel morale, but also direct that morale down lines that should be most productive of good customer relations. The best focused benefits are shares of company stock, profit sharing, and bonuses. The rewards from these benefits are somewhat re- mote from the day-to—day actions that make for sound customer relations, but they mark a definite step in the right direction. The man.who owns a share in the company or stands to benefit from increased business is, in general, better disposed to give the extra effort and attention necessary for good customer rehtions than the man with just a job. Such plans cost money. This expenditure must be balanced against an intangible re- turn of good will, but those companies which have inaugurated these pro- grams express themselves as happy with the outcome, as contacts indicated. Delchamps, Incorporated, a nineteen store chain out of Mobile, Alabama, attributes much of its success in maintaining happy, interested employees to its profit sharing and bonus plans.6 However, a study of this company shows that the reason for its success goes deeper than these fringe benefits and resides in the basic attitude of the owners. They feel that courtesy and consideration invite emulation and imitation. They also believe in profit sharing and the like, but they place these bene- fits in their proper perspective. 5 Joseph J. Trout, "Profit Sharing, Bonus Plaanave Contributed to Delchamps' success,” ProgEessive Grocer, March, 1955, pp. 124-128. THEE Incentive plans, as President Alfred Delchsmps points out, are part of a good employs relations program, but they alone are not enough. In Delchamps' case, these benefits are more an cutward.nanifestation cf the company's attitude toward its employes rather than an attitude in themselves. The basic premise in the Delchamps' attitude toward its employes is that of the family; in a family, the good of all is considered, good things are shared by all, equally and fairly. so it is with Delchamps; profits are shared, retirement is provided for, and just as important, consideration is given on the Job. The firm.has never gone outside its organization to hire an executive, other than the Auditor and Advertising Manager: the President's door is always Open to hear any employs complaint, large or small. Employes are welcome to buy stock in the organization too, although it is not sold on the open market. Such sincere interest in employs welfare is bound to be reflected in the employe's sincere interest in his work and in.his customers. And for proof of this, one need look no further than the company's expansion in one generation from a single, five-employs store to one of the dominant-if not the dominant-food retailing organizations in its territory.7 This company reflects the use of fringe benefits in their preper light. Much of the criticism.peop1e have for programs of profit sharing and stock purchases stems from instances where they have proven noticeably ineffective at producing greater employee responsibility and interest. The reason for this in almost every case lies in the company's attitude about and use of these benefits. 'Where they are employed as a bribe or a reluctant concession, they inevitably fail to produce the desired effect. Hen cannot live on bread and benefits alone. 'Where the profit sharing plans have to be dragged from.tight-fisted management or thrust forward begrudgingly by a hard-bargaining company, the results will be 7 Ibid., p. 128. ”THEE no more fruitful of improved morale than the annual five cent per hour raise. ‘Hhere such benefits are a reflection of an over-all friendly attitude on the part of concerns, then they have the atmosphere they need to produce satisfactory results. Teamwork and a sense of belonging cannot be inculcated where no one wants to be on the team. ‘Ihile fringe benefits have their place in the total picture of improved morale and subsequent sound employee-customer relations, they are no panacea thet'will solve all management's problems. These benefits can implement a public relations program, and, in their proper perspective, are valuable assets, but they are useless if not supported by a sound basic philosophy of the labOr-management relationship. Delchamps has the basic attitude on which can be built a successful employee-customer relations program. ‘Whether this attitude ‘was externalised through profit sharing or in some other way, the results ‘would be the same. The attitude is the cause, the particular manifestations by means of fringe benefits and the like are merely occasions wherein this basic attitude is seen. Food chains have kept pace with the fringe benefit movement. In.many'cases this has resulted from union pressure, but in others it has been an overflow of management's basic desire to share profits with the men who have helped.make these profits possible. A.survey of Super Market Institute members in 1950 showed the following percentages taking part in'various fringe benefit programs. The percentages here listed are especially impressive in the light of the fact that they were taken several years ago and have increased since then. 10 Super liarket Institute Members Offering Employee Benefits, 19508 Health insurance 59% Group life insurance 50 Retirement plan 14 Profit-participation plan For store managers 60% For store department heads 48 For supervisors 29 For all store employees 18 The retail food industry's attitude toward these benefits was keynoted in 1953 in a speech by Sidney R. Rabb, chairman of the board of Stop a: shop, Inc. when he said: Our guiding principle is this: Human relations can be healthy and constructive only when they are mutually satisfactory. We are convinced that a course of action that benefits the owner of a business at the expense of the employee or the customers is not sound, in the long run. Stop a: Shop's greatest asset does not appear on its balance sheet. That asset is the people of our company. No busi- ness can Operate without people. Similarly, no business can prosper in the long run unless it obtains the willing cooperation of its people. What then is our enlightened self-interest attitude toward our employees? To me it means that we must deal with each person fairly, have respect for his hmnan dignity, and treat him as an important member of our team. This goes far beyond our elementary obligation to pay an employee for his work.9 3 I. ll. Zimerman, The Su er Market, (New York: McGraw-Hill Book Company, Inc., First Edition, 5) p. 283. 9 Ibid., p. 281. THEE 11 Other food chain executives have frequenthy singled out the employees as the key to success, and reiterated the need to treat them with the respect and consideration that is their due.10 Whatever this attitude is called, it boils down to a philosophy that should underlie the bestowing of any and all fringe benefits, if satisfactory results in the matter of improved employee-customer re- lations are to be hoped for. Fringe benefits can be a great aid in bolstering morale and helping the employee identify his good with the good of the company. This identification is the first step in|a sound customer relations outlook. An additional point in favor of fringe benefits in relation to this study is their ability to reduce turnover. In general, the veteran employee, or one who feels a permanent attachment to a company, will tend to identify his welfare with that of the organisation as a whole. From.this foundation can be erected a sound employee-customer edifice, if only the other requirements, to be treated in subsequent chapters, are satisfied. Thus, fringe benefits are seen as contributing to improved morale and greater identification of the employee with the organisation. As far as they go, they are both useful and desirable, but cannot be expected to solve all employee-customer relations problems by themselves. To be of any help at all, they must spring from and reflect a general benevolent attitude on the part of management. They must be an 10 E. G., Mr. T. J. Conway of Fisher Brothers Company, Cleveland, in his annual reports to the directors and department heads of the company. THEE 12 externalisation of a company's feelings for its employees; only in this way can‘dheybe fully satisfying, and only in this way can this program extend in its effects to those part time workers who can.have little share in the actual benefits. B. THE APPROACH The positive and negative approaches to the employee-customer relations problem will be studied further in a subsequent chapter, but agatimmfizm memich cam-Age. unpre‘ye'e’s" krei‘clti'e'n'sflt'e‘i supezrit‘er “cimands. The ”old school” psycholcg of customer relations for a long time took the view that courtesy consisted in a neat appearance, a ”good morning", and a "thank you.” To this and many chains tried a negative approach to courtesy by incorporating it into their training programs. Unfortunately, commanded courtesy does not run deep enough to hold its course under a cross flood of adversity. Chains could train their employees to say ”thank you", and threaten them with loss of merit points or dismissal if they failed to comply, but come the rush on Saturday or a series of grumpy customers and the hollow, superficial training would fail. There is some merit even in the negative approach, but the mere outward trappings of courtesy are not nearly enough to satisfy the requirements of ideal employee-customer relations. The incorporation of courtesy in the training program is worthwhile, but am attempts to force it on employees must inevitably lead to failure. Pe0ple cannot be ordered to be kind and considerate. The "old school” method of commanding without giving reasons may suffice 13 in the army and for routine functions, but courtesy demands a reason. It is too difficult without one. Courtesy also demands courtesy itself. The blustering superintendent and the grouchy manager have little hope of finding courtesy amona their subordinates, while the cheerful, help- ful, considerate superior has a good chance of being surrounded by men and women who mirror his mood. Thus, satisfactory employee-customer relations demand a positive approach if hoped for success is to be attained, and in a matter so important, nothing short of success can be tolerated. Since this quality is contagious and spreads downward along the lines of command, the campaign should not only be positive, but should also begin at the top echelons of management. The program.will only be ' as strong as the weakest, least courteous executive. The following excerpts from an article by a restaurant chain president are very applicable to the present problem.and are equally true for the retail food business. In fact courtesy is evenhmore im» portant in today's food business, since the few opportunities of cone tact with customers should be capitalized on if store personality and friendliness is to be established. while self-service is becoming more evident in many chain fields, service and courtesy still rank high on the list of pre-requisites for success. ‘We at Hody‘s not only consider courtesy as the most vital ingredient that goes into a restaurant operation, but we feel that without it no restaurant can be a profitable venture for long . . . Our entire program of personnel relations is therefore keyed to courtesy; All new employee receive an eight-page pamphlet titled, 'Courtesy' which outlines chain policies in.handling customers. In this pamphlet we try to point out that courtesy is not a single virtue but rather a THE 14 combination of such attributes as attentiveness, friendliness, cleanliness, alertness, politeness, civility, kindness, and cheerfulness. we feel that courtesy is something that cannot he demanded, but is a state of mind that must be culti- vated at all levels of management: top executive... and unit department head. Courtesy must be earned, and management's attitudes and policies toward its employes go a long way in the success of the program. To encourage a courteous climate among our employes, we offer many privileges such as advancing money . . . offering bonuses . . . and prepaid health, welfare and hospital plans, as well as prepaid life insurance. But the payoff for any program occurs at the point of sale, and it is at store level that policy and practice either dovetail or go their separate wnys. Our all- inclusive program commences at executive level and extends to every employs in every store.11 All the statements in this article are as applicable to the retail grocery business as to a restaurant chain. Some of the remarks deserve repeating. lb. Heademaker provided courtesy material for his employees, but he supported this with a philosophy and policy of courtesy that began with an idea, permeated through top management, and was exp tsrnalised in employee benefits. Store meetings were also added to the program to provide constant reminders that courtesy and service rank high as "pro-requisites for success." The entire program.has a realistic, positive ring to it, that promises better results than any negative approach. T 11 Sidney Hoademaker, 'Ccurtesy...tcp-management problem,“ Chain Store.Age, November, 1965, p. 279. . 15 Another phase of the positive-negative approach is manifested in management's handling of employee grievances. Since high morale is an important preliminary to courtesy, the attitude of managmment in dealing with personnel complaints will set the pattern for good or bad employee-customer relations. Executives with chips on their shoulders are poor risks for a company that wishes to insure itself against discourteousness. The positive approach in this matter is merely one more plank in the found- ation of courteous organizations. Some of the steps in this positive approach to complaints are embodied in a recent trade journal article.12 The main points are as follows: supervisors make sure the door is always Open for complaints, grievances are settled whenever possible as they come up, a suggestion system which solicits criticism.is innaugurated, there is an annual survey of employee morale-—resulting in action, and information is distributed before the ”grapevine” distorts it. 1“his equitable treatment of employees results in better morale and more considerate personnel, and these in turn tend to produce imp proved customer relations. In general, the positive approach goes by the maxim that an ounce of prevention is worth a pound of cure. Rather than trying to motivate through relying solely or primarily on fear, the positive approach strives to lead, encourage, and do all things which should culminate in the employee's personal desire to be courteous. ”Appealing k‘ —a 12 "Five ways to stop gripes before they start,” Chain.8tore [£53, Nbvember, 1955, pp. 278-279. - 16 to the desires rather than the fears of employees constitutes the basic idea of positive motivation.13 This is much more difficult to accomplish than negative motivation, ‘out the results are more satisfying and more lasting. It consists in a wide variety of appeals that will be discussed more at length later in this work. The main fact to be established here is that good public relations, motivated in a positive way, begin with a sound relationship between employer and employee. "No company can have good public relations and have poor or bad employee-relations ... A company without a fair and considerate policy toward employees has nothing on which to build a public relations program. It is in the position of trying to build a house without a foundation."14 The rise of public relations and most personnel departments marks a definite, positive step toward better employer-employee re- lations and through this to a more satisfactory relationship between employees and the general public. This is the positive approach to the problem in hand. F. GOOD RELATIONS: g sternum: Through all this previous discussion one fact constantly emerges, that good customer relations depend principally on an attitude. _ It has been seen that the mere external trappings, engendered by an 13 Michael J. Jucius, Personnel Hana ement (Homeweod, Illinois: Richard D. Irwin, Ino., Tfird E t on, 55) p. 483. 14 Bertrand R. Canfield, Public Relations (Homewood, Illinois! Rich‘rd De IMn, Ime, I§54J Fe 4 e THE 17 authoritarian negative approach, break down under pressure. Unless there is a contagious atmoSphere of courtesy in an organisation, there can be little hope that the front-line personnel will serve the best interests of customer relations with any consistency. Therefore, the courtesy campaign must begin at the top echelons of management and be allowed to permeate down through the company. There will still be a need for reminders in the way of signs,15 posters, cartoon sequences,15 contests,17 and oral suggestions, just as there should be a negative check on discourtesy or slovenliness, but the principal consideration in promoting a lasting, well-founded courtesy campaign will be the example and attitude of superiors. Courtesy breeds thoughtfulness and considerateness. It is based on an attitude aid thrives in an atmosphere of friendline”. Greatest proof of this can be seen where a negative approach to courtesy is attempted. Friendliness cannot be forced, but where it is had, the results are most gratifying. Without it, not only the personnel of a company, but the business in general will suffer. ”Disgruntled, unhappy unsold employees in their individual contacts with the public may do more harm than all those who seek to develop public good will can overcome."18 15 "Signs of employs courtesy,” Chain Store Ag, November, 1955, ppe 1229123e 16 of. Chain Store g, January, 1966, insert. 17 ”Customer Relations ," Chain Store £2, January, 1956, p. 9. 13 Rex F. Harlow, Marvin M. Black, Practical‘Public Relations (New York: Harper and Brothers, Revised Edition, I532) p. 116. 18 There is no merchandising program.as effective as the selling power of a courteous and enthusiastic employee, but a person cannot be bribed or bullied into being friendly. It is an attitude, and attitudes must be lived, not learned by rote. whenmanagement builds up a strong and enthusiastic employee personnel throughout its organization, the good will so established radiates good will wherever the employee goes. The problem of selling products is usually given plenty of attention in an organisation. But the problem of selling the organization which the products represent is often sadly neglected. Selling the organization begins by selling it to the employees. First attention should be given to improving employer- employee relations, and then to delving into the problem public. . . . good employee morale is the foundation of sound public relations. 'uhat an employee thinks of his company will be reflected in the attitude of the general public through all his contacts on the outside.19 To foster and encourage this courteous attitude, companies spend millions of dollars each year. They maintain personnel and public relations departments. They sponsor campaigns, exhibit movies, publish personnel papers, provide posters and signs. They may even provide a negative check by means of a shopping service.20 They bestow a plethora of fringe benefits and other morale-builders. They do all this to establish an attitude, and when they are finished spending and planning they can only hope for success. They realise that courtesy cannot be bought. They know that "although advertising and physical attractiveness can contribute to good public relations for a retail store, a far greater 19 Ibide, Pe 116. 20Will Oursler, ”Shopping for Courtesy," Reader's Digest, .May, 1956, pp. 153-154. . _ ", . 19 contribution can be made by friendly and competent employees.”21 This paper has thus far discussed the general problem.inwolved in.developing and furthering employee-customer relations. It has con- sidered the fact that a correct attitude in the minds of employees is necessary to attain this goal, and has gone on to analyze some of the factors that lie behind this attitude. Morale builders such as fringe benefits were proposed and studied to see what value they might be. fiome important phases of the problem that have not yet been scrutinised are those of the raw material, the personnel, that must acquire this attituda,and how it is to be trained. The following chapters will discuss the personnel that might be considered ideal for obtaining the best results in sound employee-customer relations. This study will not restrict itself to the theoretical, but will consider what is actually being done in the retail food industry today. Since the personnel of a company will play a decisive part in determining that company's public relations success, the who, where, and how of recruiting the right people will be considered. .An answer will be attempted to such questions as: Is there an ideal type of individual for dealing satisfactorily with customers and other employees? If so, where is he recruited and how are his qualifications ascertained? Where do the food chains look for their employees? ' Next comes the question of training. How are these recruits trained? How is their conduct controlled.and supervised? lahoney and Hessian, op. cit., p. 26. 20 Finally, the environment for courtesy and cooperation will be studied in detail. Those factors which contribute to high morale and an attitude of courtesy will be reviewed. Working conditions, comnications, rewards, supervision, example, propaganda and the like will all come under the focus of this paper's attention. The final goal will be a group of tangible methods for finding and training the right men in the right environment. A sound and pro- ductive system of employee-customer relations will be the end product. G. TYPE AND scones 9;; INFORMATION In pursuit of this intangible and elusive subject of sound employee-customer relations the author has made use of several of the more recently published personnel and public relations books along with a few of the older volumes on these subjects. These, it was felt, sufficed for the theoretical background to the problem. Since the subject under consideration is a contemporary and practical one, principal sources were(sought fron) the companies that face this problem and the current trade publications that write about it. such magazines as Progressive 95332 and 2233.31ng will be referred to often while articles from other periodicals like American Business, The Harvard Business Review, and Dun's Report and Industrial Progress will be quoted from time to time. To find out what some successful chains are actually doing in this matter, a questionnaire was dispatched to a number of successful grocery companies. A cross section has been sought. Chains varying in size from fewer than a hundred to several hundred stores were TH 21 included in the list.22 Some are spread over many states while others confine their operations to a single city.23 Chains in all parts of the country were contacted, National Tea out of Chicago, Stop and Shop from New England, Red Owl of Minneapolis, Colonial from the South and several other companies stretching from the east coast to Iowa and the Dan. The results of the survey thus conducted are incorporated in the body of this work as well as collected in a table at the end of the thesis. Finally, notes from lectures and personal interviews with leaders in the retail food industry have been used throughout the paper . 22 E.G. , Penn Fruit Company and Grand Union Company. 23 2.6., Jewel Tea Company and Fisher Brothers. CHAPTER II GOOD PERSONNEL: THE RAW MATERIAL FOR SATISFACTORY EMPIDYEE-CUS MR RELATIONS Electric eyes and mechanical gadgets can open and hold doors, welcome customers, express thanks, and provide many comparable services, but these technological services can never be mistaken for courtesy or friendliness. They can never give a store the warm, friendly, personal feeling, that is the goal of sound employee-customer relations. At least in this area, machines cannot adequately replace the human element. Poople are pro-requisites and the raw material for friendliness. Without human beings there can be no real courtesy or warmth in the retail business, and this fact more than any other makes questionable the radical trend toward complete self-service. Complete self-service may become widespread some. day, but after this happens there will still begneed for individuals to lend personality to the stores. Self-service meat provides hostesses, and managers are en- couraged to be_"cnthe floor" to greet and assist customers. The efficiency of selfeservice can never satisfactorily eliminate the lumen element in retail stores if friendliness and courtesy and per- sonality are to be retained. People remain as the raw material for sound employee-customer relations. 22 23 The value of this raw material cannot be exaggerated, just as the importance of friendliness cannot be minimised. If a company has veteran, loyal personnel, it is usually safe to predict they will also have a loyal customer following. People look for friendliness in a retail store.24 And companies find that the attaining. of this friendly atmosphere affords many problems that begin with the rameaterial-rthe personnel who represent the organisation on the firing line. It is, therefore, of some importance to this thesis to consider the source and characteristics of what can be referred to as desirable personnel. In attempting to categorise the ”ideal" grocery manager, Columbia University expended much time and effort only to arrive at the conclusion that there was no ”ideal“ manager type. The same can be surmised for the personnel in a store. People who are friendly, patient. active, healthy, and intelligent are needed. These qualifications fit the type of'worker desired by any retail concern. In some businesses and _ occupations one or the other of these qualities or characteristics ‘ might be omitted, but almost any retailer would assert the need for a balance of these attributes in a person whO'will deal with the consumer public. Therefore, no specific ideal type can categorized as the best raw material for courtesy. Individuals who might be called extroverts or introverts would not automatically be considered preferable merely by the weight of one or the other of the appellations. The day a test is devised that 24 The second of the Jewel Tea, Company's ten commandments that customers want if friendliness. Only cleanliness surpasses it in the consumer thinking. 24 can delve deeply into a person's character and come up with qualities like conscientiousness, friendliness, dutifulness, honesty, and the like, it may be possible to pinpoint the ideal person automatically. Until that day, if it ever comes, food distribution and every other business will have to rely on the methods at hand for selecting suitable material. A. HOW RECRUITS ARE SELECTED l. TESTS While there is no» specific class or type of person that could be classified as ideal for the retail food business, there is a general intelligence and personality area from which chains hope to draw their personnel. To this end they will often give one or several examinations in addition to interviewing the applicants. These tests can tales a number of different forms, but they are aimed at the problem in a negative capacity. That is to say, the results of these quizzes will not point to particular individuals as very desirable, but they will eliminate those who would most probably prove unsatisfactory. Anmga‘tmvf‘wthf I. Q. score or psychological test rating would put the odds so against the man's making a success in a business as complex as food distribution that it would be very rash to hire’the man. In these cases a test could serve the recruiter‘s purpose well, but for every one man who is eliminated by these tests there are many in the shadows of and above the minimum point, who need much more screening before a final decision hands. “This task of 25 separating acceptable from.nonacceptable candidates is very difficult, particularly in 'twilight' cases and in cases where the candidates succeed in passing the preliminary hurdles.”5 Though there is probably a place for such testing in the ,modern personnel recruiting picture, the tests are quite limited and negative in scope for the selection of “ideal” public relations employees. In other words, such examinations have their place in recruiting and are employed by many companies,26 but their value is limited. It is limited in that a good grade in these tests is no assurance of a good prospect, and in that while these examinations may eliminate intellect- ually undesirable persons, they are of more doubtful merit in screening out those undesirable by reason of personality and character. The chief value of such a plan (of tests) is negative in nature. That is, the absence of the necessary training, experience, mentality, and interests to do a given job is an excellent indication that a person cannot do the Job, but the presence of these traits is no guarantee that a man 'will do the job. (Because of the importance of attitude, domestic relations, lack.of motivation or incentive, etc.) Thus testing has a place in the screening of food distribution personnel, but it cannot hope to solve all the‘problems inherent in the procedure. Most large companies use general information and simple mathe- matics tests with some, such as the Kroger Company, relying heavily on I. Q. exams. National Tea and others also employ psychological tests as part of their screening procedure. 26 of. statistical chart. ‘27 lee Lockford. ”Selection of Supervilory Personnel.” Personnel, November, 1947, p. 199 as quoted in Jucius, op. cit., p. 191. 26 2. INTERVIEWS Since "even the most enthusiastic supporters of tests do not insist that decisions regarding applicants or employees be reached solely on the basis of test scores,"28 some additional screening method is needed if the most desirable work force is to be obtained.