The employee-customer-profit chain model states that companies with higher profits tend to subsequently lay off employees,which reduces the future number of customers.

Question

Quizplus · Accepted Answer

The employee-customer-profit chain model actually states that companies with highly satisfied employees tend to have highly satisfied customers, which, in turn, leads to higher profits. This model suggests that investing in employee satisfaction can have a positive impact on a company's bottom line, as well as on customer satisfaction and retention.

The Employee-Customer-Profit Chain Model States That Companies with Higher Profits