The Effect Of Customer And Employee Relationship On The Management Of Hospitality Industry Both Publicly Owned And Privately Owned Establishment
The role of employees in service organizations is comparable to the role of the service itself. Their Importance to the firm is critical to both service delivery and service production. There is no gainsay that, service is all about the people (employees) because they appear more often to be the most tangible clue to customers’ perception of what quality service entails. It is in this light that this research was undertaken to determine the extent to which the effect of customer and employee relationship in the management of hospitality industry, as well as establishing the extent to which the concept of retention is internalized by the players in the hospitality industry in Nigeria. It also ascertained the rate at which variables like; remuneration, resource strategies, product knowledge, working condition and training translates into customer satisfaction, and determine how retention is perceived by employees
1.1 Background of the study
The world Hospitality Industry has recently experienced a tremendous growth rate throughout the world. In fact Statistics have shown that Hospitality has today become one of ` the most promising and fastest growing industries in the service sector of the economy. More also Hospitality itself is as old as mankind and has been at the centre of the economy of Nations According to the Dictionary definition of customer, customer is a patron: one who purchases or receives a product or service from a business or merchant, or intends to do so. A person especially one engaging in some sort of interaction with others. There are five reasons why customers are always right before the employee. The phrase customers is always right was originally coined by Harry Gordon Selfridge in London in 1909, and is typically used by businesses.
- To convince customers that they get good service
- Convince the employees to give customers good service fortunately more business are abundantly these maxim ironically because it lead to bad customer service
The existence of any business is dependent on the patronage of the customers. In the hospitality industry a customer is a person who visits a hospitality firm to enjoy the services of the outfit such as food, drink, and in some cases accommodation. The services are rendered on payment of reasonable price charged by the firm. A customer takes the centre stage in management policy for successful operation of a hotel industry. It is on this background that customer’s retention is invariably a crucial management function as it is significantly related to survival of a business. Hence workable strategies must be designed to achieve this goal on regular basis.
Reicheld (1995:45) defined a customer as an individual or company that purchases a product or service. The term customer is used to refer to both consumer and organizational market. Consumer market is made up of those customers that buy products and services for further production or sale of other products and services. In effect, a customer supports an organization by offering his/her hard earned money in exchange for what an organization offers. Hospitality industry is the business where providing services such as catering and entertainment takes place, Apaokagi (2010). Reicheld, (1995) explained that customer retention is the activity that a selling organization (a hospitality firm) undertakes in order to reduce customer defections.Dictionary defines Employees as individuals who provideslabour to an establishment or other person.Many employee may have the opportunity of direct contact with customers in the two different establishment both private and public hotels. For some it will be a regular aspect of their job, for other Hotels whether private or public. Technical skills and technique are very important but equally for perhaps more important are sincere caring attitudes and manner with the food served in an environment that has an atmosphere that makes the customer feel at ease, wanted and welcome. As competition and other environmental influences increase globally, it is obvious that there is growing emphases on quality improvement and error reduction in order to achieve customer satisfaction, retention and enhancing organizational value, (Iwarere, 2010) many companies and organizations have now acknowledges the critical importance of being customer-oriented and customer-driven in all their activities. Kotler [1997) asserts that as not enough to be product-driven or technology-driven, without bringing the power of customer into the centre of the business. So satisfy your customer or someone else will.Management inadequacies resulting too bad consequences to employees during services to customers.It makes employee unhappy, it give abrasive customers an unfair advantage, some customers are bad for business, it result in worse customer service, some customer are just plain wrong.
1.2 Statement Of The Problem
Hospitality industry is the business where providing services such as catering and entertainment takes place, Apaokagi (2010). Reicheld, (1995) explained that customer retention is the activity that a selling organization (a hospitality firm) undertakes in order to reduce customer defections. On this background the research wants to investigate the effect of customer and employee relationship on the management of hospitality industry both publicly and privately owned establishments
1.3 Objective Of The Study
The objectives of the study are;
- To ascertain the effect of customer and employee relationship on the management of hospitality industry
- To ascertain if there is different way of management between public and private hospitality industry
- To ascertain if public hospitality industry offer better services than private own
- To ascertain the relationship between public and private hospitality industry
1.4 Research Hypotheses
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
- H0: there is no effect of customer and employee relationship on the management of hospitality industry
H1: there is effect of customer and employee relationship on the management of hospitality industry
- H02: there is no relationship between public and private hospitality industry
H2: there is relationship between public and private hospitality industry
1.5 Significance Of The Study
This study, which is primarily aimed at explaining the effect of customer and employee relationship on the management of hospitality industry both publicly and privately owned establishment, will provide an insight into the problems associated with management of public and private hospitality industry. This report would be of great benefit for private and public hospitality industry, to expose them to quality management.The findings will be useful for researchers to further generate knowledge in the field
1.6 Scope And Limitation Of The Study
The scope of the study covers the effect of customer and employee relationship on the management of hospitality industry both publicly and privately owned establishment. The researcher encounters some constrain which limited the scope of the study;
a) Availability Of Research Material:
The research material available to the researcher is insufficient, thereby limiting the study
The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) Organizational privacy:
Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 Definition Of Terms
In sales, commerce and economics, a customer is the recipient of a good, service, product or an idea – obtained from a seller, vendor, or supplier via a financial transaction or exchange for money or some other valuable consideration.
A person employed for wages or salary, especially at non-executive level
Management is the administration of an organization, whether it is a business, a not-for-profit organization, or government body
The hospitality industry is a broad category of fields within service industry that includes lodging, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry.
Belonging to or for the use of one particular person or group of people only.
Relating to, or being in the service of a community or nation, especially as a government officer: apublic official
1.8 Organization Of The Study
This research work is organized in five chapters, for easy understanding, as follows
- Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
- Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
- Chapter three deals on the research design and methodology adopted in the study.
- Chapter four concentrate on the data collection and analysis and presentation of finding.
- Chapter five gives summary, conclusion, and recommendations made of the study
Summary, Conclusion And Recommendation
It is important to ascertain that the objective of this study was to ascertain the effect of customer and employee relationship on the management of hospitality industry.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges encountered by management of hospitality industry in retaining customers.
Employees like the mirror of an organization are the interface between the organization and the customer, what they portray is what the customers see and use in their evaluation of the service experience. This study was aimed at ascertaining the impact of employee retention and customer satisfaction, taking an empirical study of some selected hotels in Jos, Plateau State, Nigeria. Concept of employee retention, traditional employee retention strategies in the Nigeria organizations, why employee retention is critical in Nigeria, concept of customer satisfaction, employee retention and customer satisfaction were reviewed. Furthermore, the result of the hypothesis tested revealed that there is a significant relationship between employee retention and customer satisfaction
In conclusion, this study has provided a theoretical model to show the firm relationship between CRM dimensions, marketing capabilities and hotel performance. It contributes enormously to the body of knowledge, as it provides a comprehensive framework that is used for explaining the impact of the CRM four dimensions on hotel performance. It is an accepted fact that the concept of customer relationship management neither has been fully verified, nor empirically assessed to determine the strength of the relationship between dimensions of customer-relationship management and hotel industry performance. Moreover, this study uniquely extends the body of knowledge by explaining the theoretical possibilities of the mediating role of marketing capabilities (planning and implementation) in the relationship between CRM dimensions and hotel performance. It is worth mentioning that this paper will also raise awareness among hotel managers to pay more attention to CRM dimensions, marketing capabilities, and assist them in improving hotel performance and competitiveness. However, the fact remains that this study has its limitations. First, because it is in dire need of further verification by collecting data from the hotel industries to test the proposed model and further investigate the hypothesized relationships
Based on our findings, we hereby advance the following recommendations: Since there is poor retention with respect to job satisfaction, training, reward strategy and supervisory support of the employees in the hospitality industry in Abuja metropolis, management of these hotels should improve on their employee retention.
Hotels in Abuja metropolis should maintain the pace of training their employees to better discharge their tasks
To better serve their customers, the hotels in Jos metropolis should upgrade their standards and invest more in the training of employees.
Since customers‟ rating of the level of innovativeness of the employees as a result of their autonomy in attending to them is between 41-60%, hotels in Abuja metropolis should keep encouraging their employees to consolidate on their achievements to explore the untapped potentials that abound in the hospitality industry in Nigeria
The Effect Of Customer And Employee Relationship On The Management Of Hospitality Industry Both Publicly Owned And Privately Owned Establishment
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