Impact of Employee Satisfaction on Customer Satisfaction

IMPACT OF EMPLOYEE SATISFACTION ON CUSTOMER SATISFACTION

Impact of Employee Satisfaction on Customer Satisfaction

 

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Abstract of Impact of Employee Satisfaction on Customer Satisfaction

This study was on impact of employee Satisfaction On Customer Satisfaction. Three objectives were raised which included; To study relationship between customer satisfaction and employee satisfaction, to investigate relationship between employee satisfaction and financial performance which is mediated by customer satisfaction and to understand the importance of employee satisfaction on customer satisfaction in Airtel Nigeria. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from staffs Airtel Nigeria, Lagos. Hypothesis was tested using Chi-Square statistical tool (SPSS).

 

Chapter one of Impact of Employee Satisfaction on Customer Satisfaction

Introduction

Background of the study

Employees play out a significant part in deciding the customer’s perception which they convey in their thoughts comparable to any organization through their conduct and activities. Organizations spend huge amount of cash for creating loyalty of their customers however regularly disregard the genuine part of increasing employee’s motivation for accomplishing their economic and nonfinancial goals. Keeping in view the present extraordinary challenge in which organizations are working, employees can play out an indispensable role in achieving customers’ minds, thoughts and hearts. Because of globalization, competition among organizations has increased hugely as firms are presently exposed to competition with various stakeholders in the nation but also in competition globally. Organisations are spending substantial sum in advancing technology, improvement of new strategies/forms, and in presentation of new products with the aim of serving their customers. Organisations have employed proficient specialists and furthermore have set up new departments for the development of new techniques to compete with global market successfully. Consistently customers find new better and progressively appealing limited time plans offered by organizations to get a lead in competing world. At the same time various organisations focus on their staffs for gaining serious edge. Technology, organisational structure, strategies and procedures of other successful organizations can be duplicated and yet employees’ which make that company successful cannot be taken away easily.

These confirmations reveal that employees’ motivation is a significant factor in developing customers’ satisfaction. Individual attributes and work place climate both influence employees’ motivation. Employees’ satisfaction benefits from numerous points of view to any organization. Two-way communications consistently help with forming employee perception and simultaneously help organizations in understanding their employees’ need. In administration industry employee satisfaction positively affects customers’ satisfaction. Customers are more affected by employees’ behaviour once they communicate with customer instead of organizations marketing efforts or building brand impression. In promoting one of the fundamental ideas is client satisfaction which is not just crucial factor theoretically but at the same time is essential factor for all intents and purposes. They pointed that when contrasted with telecommunication industry in administration industry acquiring consumer loyalty is a difficult task due to direct employee interaction with customers which ordinarily bring about impalpability and irregularity of service. They likewise showed that employee enthusiasm is significant factor of quality service which impacts consumer loyalty. A large number of subscribers of the Airtel Network are available in Nigeria. Telecommunication industry has aided economic development and this no doubt has brought about economic growth.

In the competing world, customer satisfaction is a crucial objective for every firm. Massad, Heckman and Crowston (2004) additionally perceive that the service rendered by the employees help to build a good relationship with clients now and again, increases their loyalty. Bruke, Graham and Smith (2005) expressed that when individual buy a specific service, the employee directly impacts the customer’s perception of the quality of the transaction. Additionally, depending upon the individual experience, a non-satisfied client would buy service somewhere else and share the negative experiences with others. Interestingly, a satisfied customer may bring about a positive recommendation and loyalty (Torres and Kline, 2006).

Read Also:  Effects of Teamwork on Organization Performances

Customer satisfaction is impacted by the relational experiences among customers and employees in a service setting (Wansoo, 2009). Additionally, the enormous test for the present helps transfers on the superb service and a high customer satisfaction (Hung, Huang and Chen, 2003). This study has made an attempt to examine the impact of employee satisfaction on customer satisfaction by using Airtel Nigeria as a case study.

Statement of the Problem

There are critical advantages to be derived from attempting to improve a firm service/quality. This is the reason why organizations dedicate a lot of time and money to training programs that enables workers in the particulars of with dealing with customers. What these organizations do not realise, be that as it may, is that such endeavors are generally restorative. Genuine improvements in customer service start with offering better service and support to the employees which managers of most organizations do not understand. That is the enormous challenge in Nigeria. So the issue is: that it is difficult to keep up loyal customer base without loyal employees.

Objectives of the Study

The objective of this study is to examine the impact of employee satisfaction on customer satisfaction by using Airtel Nigeria as a case study. However, the specific objectives are:

  1. i)               To study relationship between customer satisfaction and employee satisfaction.
  2. ii)             To investigate relationship between employee satisfaction and financial performance which is mediated by customer satisfaction

iii)           To understand the importance of employee satisfaction on customer satisfaction in Airtel Nigeria

Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

Hthere is no relationship between customer satisfaction and employee satisfaction.

H1there is relationship between customer satisfaction and employee satisfaction.

H2there is no relationship between employee satisfaction and financial performance which is mediated by customer satisfaction

H2there is relationship between employee satisfaction and financial performance which is mediated by customer satisfaction

Significance of the Study

The significance of this study will help organizations to observe the relationship between employee satisfaction and customers satisfaction , training, motivation, and reward of employees not only increases customer satisfaction but also other aspects required in terms of quality and effectiveness of product organizations must have to focusing in such areas to enhance product competency for higher customer retention and satisfaction, This study helps in instructive the updated facts and figures like organization updated policies, updating correspondence, promotions, and superiority of product.

The Scope of the Study

This study is truly significant and has high scope in telecommunication industry to increase higher customer satisfaction by observing the affiliation between employee satisfaction and customer satisfaction; as well this study will facilitate the students and journalist in near future. They can easily gather facts and figures from this study.

Limitations of the Study

Because of constriction of time and resources it is very difficult to manage as well as there is a limitation of sample size some customers could not give their suggestion properly, therefore it is difficult to get accurate result.

Definition of Terms

The following terms were used in the course of carrying out this study:

Employee Satisfaction: Employee Satisfaction can be defined as how Employee is happy on his work place which can be shown by his Loyalty and Commitment towards their organization.

Customer Satisfaction: Customer Satisfaction can be defined as how Customer is happy or agree to purchase the product and Services again, shown by his Loyalty and Commitment towards the Product and Services offered by the Organization.

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