FORMATIVE ASSESSMENT $1$

$[100$ MARKS$]$

Study the information provided below and answer the following questions.

Heskett, Jones, Loveman, Sasser, and Schlesinger's $(1994)$ Service$-$Profit Chain $($SPC$)$ theory is a management framework that integrates concepts from marketing, human resources, and organisational behaviour. The SPC theory posits a direct link between a firm's internal service climate and its external service value, which ultimately drives firm profitability and growth.

Customer satisfaction is of critical importance in investment and portfolio management. A recent study reported a $30\%$ decline in customer satisfaction among South African investment firms. As an organisational researcher, you have hypothesised that improvement in a certain variable, employee engagement, is likely to yield significant enhancement in another variable, customer satisfaction. You are proposing a quantitative study premised on the SPC theory to investigate whether improvement in employee engagement enhances customer satisfaction at twenty selected South African investment brokerage firms.

QUESTION $2$

$(25$ Marks$)$

Present a comprehensive literature review for the proposed study by unpacking the fundamental phenomena and main theoretical concepts underpinning the proposed study. Please note that a minimum of four pages of critical review of the extant literature is required and at least eight recent academic sources should be cited in the discussion.