A PROPOSAL ON IMPACT OF EMPLOYEE SATISFACTION ON CUSTOMER SATISFACTION

Abstract

The study will investigate the impact of employee satisfaction on customer satisfaction. The following objectives will be used for the study; 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. The method of data analysis that will be used by the researcher is the simple percentage. More so, percentage and degrees of the responses will also be used in the analysis. Here, the ratio of those whose responses were not in the affirmative will be found and conclusions will be drawn there upon. Representations of the level of responses will be made in tabular form. The Statistical Package for Social Sciences (SPSS) software will be used to test the hypotheses

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). 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.

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