Research On The Relationship Of Internal Service Quality And Employee Satisfaction In Non-Profit Organization

With the fast development of Non-Profit Organization (NPO) since 1990s, its relevant research themes have received much attention. The study found that "talent loss" has become an important factor in hindering the development of Non-Profit Organization. How to attract and retain the talent has become an urgent problem for NPO to solve.Many studies show that: There is a causal relationship between the internal service quality and employee satisfaction in many organizations. We can achieve and enhance employee (internal customer) satisfaction through improving the internal quality. Therefore, the NPO can learn from "the new human resources management strategy": looking the employee as the organization's internal customer, providing better internal services in order to enhance the employee satisfaction, and in a certain extent, we can resolve the problem of "talent loss".In this paper, we select Hangzhou community health service center as the main research subjects. From the "internal customer" perspective, we research on the relationship between the internal service quality and employee satisfaction in NPO. This paper based on related theories such as internal service quality scale proposed by Hallowell et al and internal service quality (ISQ) evaluation method proposed by Loveman. Then, we amend the scale through analyzing the features of NPO and interviewing on the related employee to develop an internal service quality scale based on the NPO activities. Ultimately we finish the formal questionnaire. We collect the data through sending many questionnaires, and we use SPSS16.0 to analyze the questionnaire result and prove the research assumptions.After theoretical and quantitative analysis, some important results and conclusions are presented as follows:Firstly, the internal service quality of NPO can be measured from five dimensions including "value structure", "policy and procedures", "leader support", "teamwork and communication", "working environment".Secondly, the five dimensions of NPO internal service quality are significantly related with the employee satisfaction. The "value structure", "teamwork and communication" and "working environment" play a large role to predict the employee satisfaction.Thirdly, there are significant differences in perceiving the internal service quality and employee satisfaction from employees with different age, education and duty.Finally, according to the empirical research, the paper presents several suggestions for non-profit organizations: Non-profit organizations should provide differentiated internal service quality based on different features of the staff variables.