When we think of customer service, we often picture how employees treat paying customers. But the Institute of Organizational Psychology (IOP) emphasizes another side of the equation: internal customer service; how people within an organization treat one another (Institute of Organizational Psychology, n.d.). Culture is not only about values posted on the wall; it is about everyday interactions, tone, and respect shown from manager to employee and employee to employee.
Unfortunately, too many organizations still default to fear and intimidation. They would never treat external customers this way, because if they did, they wouldn’t have any. Yet, many managers believe it is acceptable to pressure employees into a constant fight-or-flight mode, mistaking control for leadership (Goleman, Boyatzis, & McKee, 2013).
Fight or Flight Is No Longer Enough
Traditionally, psychologists spoke of the “fight or flight” response to stress. But in today’s workplace, employees under constant strain exhibit more than just two reactions. Experts now recognize five: fight, flight, freeze, fawn, or flop (Schauer & Elbert, 2010).
- Fight: Employees push back, sometimes aggressively, against leadership.
- Flight: Workers withdraw, avoiding responsibility or looking for new jobs.
- Freeze: People stall out, unable to make decisions or move forward.
- Fawn: Some overcompensate, trying to please managers at their own expense.
- Flop: Burnout takes over, and productivity crashes.
When fear drives the culture, employees live in survival mode rather than in a mindset of growth and contribution.
Building a Culture That Thrives
Contrast that with workplaces where leaders invest in enriched internal customer service. Here, managers create an environment where employees feel safe, supported, and encouraged to succeed. The result is not only stronger employee growth but also a thriving company culture where people can innovate, collaborate, and achieve excellence (Schein, 2017).
Consider a story from the supply chain world: a skilled employee was suddenly placed in a row that had nothing to do with his background. It took him 16 months of working 12-16 hours a day just to feel somewhat comfortable in the new position. Wouldn’t it have been more efficient to hire someone with relevant experience? By ignoring internal customer service, matching people’s strengths with the right roles, the company set both the employee and the business back.
Even misguided attempts at motivation can backfire. One company responded to poor morale with more micromanagement and signs of encouragement plastered around the office. The approach failed. Instead of building culture, it bred resentment. Within months, the company had to lay off 60% of its workforce. The lesson? Culture can’t be manufactured through slogans or control; it must be lived through respect, trust, and good leadership (Edmondson, 2019).
Internal Service Shapes External Service
Aristotle once said, “Pleasure in the job puts perfection in the work” (as cited in Pangle, 2013). When employees take joy and pride in their work, excellence naturally follows. That joy is not sparked by intimidation but by an environment of support and fairness.
The Dalai Lama put it simply: “Our prime purpose in this life is to help others” (Lama, 1995). Yet many leaders do the opposite, placing unnecessary demands on employees out of their own insecurities. Instead of helping, they burdened. Instead of supporting, they control.
Great leaders understand that internal customer service directly influences external customer service. Employees who feel respected, empowered, and valued will pass that energy along to customers. The reverse is also true: a culture of fear seeps into customer interactions, eroding trust and loyalty.
The Path Forward
Organizations must recognize that leadership is not about exerting pressure; it is about creating space for people to succeed. Leaders who replace fear with respect, micromanagement with trust, and intimidation with encouragement not only build a stronger culture but also drive long-term business success.
Internal customer service is not just a soft skill or nice-to-have. It is the backbone of thriving workplaces, where employees grow, companies perform, and customers feel the difference.
References
Edmondson, A. (2019). The fearless organization: Creating psychological safety in the workplace for learning, innovation, and growth. Wiley.
Goleman, D., Boyatzis, R., & McKee, A. (2013). Principal leadership: Unleashing the power of emotional intelligence. Harvard Business Review Press.
Institute of Organizational Psychology. (n.d.). Internal customer service and organizational health. Retrieved from https://organisationalpsychology.nz
Lama, D. (1995). The power of compassion. HarperCollins.
Pangle, L. S. (2013). Aristotle’s teaching in the “Politics.” University of Chicago Press.
Schauer, M., & Elbert, T. (2019). Dissociation following traumatic stress: Etiology and treatment. Journal of Psychology, 218(2), 109-127.
Schein, E. H. (2017). Organizational culture and leadership (5th ed.). Wiley.
Image Credits
Guti, M. (2015, November 6). Path at sunset. [Stock photograph]. iStockphoto. https://media.istockphoto.com/id/495902924/photo/path-at-sunset.jpg
Cherry, K. (n.d.). Industrial-organizational psychology concept [Image]. Verywell Mind. https://www.verywellmind.com/thmb/aK8gNhT5MwH8NOe2StgJ4Ff48GQ=/1500×0/filters:no_upscale():max_bytes(150000):strip_icc()/what-is-industrial-organizational-psychology-2795302-final-1443d26b5151409cb79695e62422fed1.jpg