Impact Of Employee Satisfaction On Customer Satisfaction (A Case Study Of Airtel Nigeria)

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Impact Of Employee Satisfaction On Customer Satisfaction (A Case Study Of Airtel Nigeria)


Abstract


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.

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: to study relationship between customer satisfaction and employee satisfaction, etc.

The findings of research also explore that there is a significant relationship between employee satisfaction and financial performance which is mediated by customer satisfaction

To meet up with the present constant change, or progress rate of the businesses today, the management of Airtel Nigeria should make an attempt to a feasible extent to embrace and implement good and positive motivational starategies in other to gain their employee loyalty, satisfy them and also satisfy their customers. This will boost the moral of the workers towards productivity and performance.


Chapter One


Introduction

1.1 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.


1.2 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.


1.3 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. To study relationship between customer satisfaction and employee satisfaction.
  2. To investigate relationship between employee satisfaction and financial performance which is mediated by customer satisfaction
  3. To understand the importance of employee satisfaction on customer satisfaction in Airtel Nigeria

1.4 Research Questions

The following questions were generated during the course of this study

  1. What is the relationship between customer satisfaction and employee satisfaction?
  2. What is relationship between employee satisfaction and financial performance which is mediated by customer satisfaction?
  3. What is the importance of employee satisfaction on customer satisfaction in Airtel Nigeria?

1.5 Research Hypotheses

The following hypotheses were formulated for this study:

  1. There is a positive relationship between customer satisfaction and employee satisfaction
  2. There is significant relationship between employee satisfaction and financial performance which is mediated by customer satisfaction

1.6 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.


1.7 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.


1.8 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.


1.9 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.


Chapter Five


Summary, Conclusion and Recommendations

5.1 Preamble

This chapter presents the summary and conclusion that can be drawn from the study. It also presents the researchers recommendations with regards to the findings of the study and proposed areas for further studies by other researcher.


5.2 Summary

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. To study relationship between customer satisfaction and employee satisfaction.
  2. To investigate relationship between employee satisfaction and financial performance which is mediated by customer satisfaction
  3. To understand the importance of employee satisfaction on customer satisfaction in Airtel Nigeria

Findings from the study reveal that there is a positive relationship between customer satisfaction and employee satisfaction.

The study showed that there is significant relationship between employee satisfaction and financial performance which is mediated by customer satisfaction


5.3 Conclusion

This paper aims to identify impact of employee satisfaction on customer satisfaction (a case study of Airtel Nigeria).

From the research findings, one can conclude that there is a positive relationship between customer satisfaction and employee satisfaction.

The findings of research also explore that there is a significant relationship between employee satisfaction and financial performance which is mediated by customer satisfaction

To meet up with the present constant change, or progress rate of the businesses today, the management of Airtel Nigeria should make an attempt to a feasible extent to embrace and implement good and positive motivational strategies in other to gain their employee loyalty, satisfy them and also satisfy their customers. This will boost the moral of the workers towards productivity and performance.

The increasing importance of the satisfaction has enforced the researchers to study the phenomenon of satisfaction at both sides i.e. satisfaction of customers as well as employees. The present study was an attempt to investigate the impact of employee satisfaction on customer satisfaction in Airtel Nigeria. The satisfied customers actually are the assets of company as they remain loyal for long terms and give long term benefits to organization. Similarly satisfied employees are also important for the organizations as they train them and invest on their trainings to make them skilled and satisfied work force. The results of this study reported the expected positive signs which are statistically significant at some level of significant.

The satisfaction of customers is necessary to perform a better business in this competitive era. The globalization and other factors have increased the competition in markets. It has been found by various researchers that satisfied customers are the repeat purchasers. So this research was intended to explore the factors that contribute towards the customer satisfaction. Among various factors this study focus on the employees’ contribution in making the organizational customers satisfied. In this study we hypothesize that if the employees of an organization will be satisfied, they will perform their duties more efficiently and they will be more focused on their job causing their customers to be more satisfied in return. So, the employee satisfaction became an important factor as well as the customer satisfaction.

In addition, the management of Airtel Nigeria should research on diverse ways of enhancing and encouraging productivity and customer and employee satisfaction in their company, hence, discovering out the effect, causes or problems linked with satisfaction, loyalty and more.


5.4 Recommendations

The services sector of Nigeria is an emerging sector in current situation of Nigeria where there are different types of crisis disturbing the business markets. But, generally the fact is that satisfied employee can only retain the satisfied customer. Organizations should make such policies which may make the employees happy with their jobs and incentives. As happy and satisfied employee increases the good will of organization which results ultimately the increment in profits. So we can say that ‘happy employees make customers happy’.

This study has various implications for the managers working in the service sector of Nigeria that they can improve their business profits by investing on their employees and making their employees more satisfied. This satisfied workforce will then make their customers more satisfied which in turn increase the organization’s profitability.

Finally there are some limitations in the paper. The study was conducted in some cities of Nigeria. The sample size was not so large. The sector may influence this relationship, means that by selecting some other sector for study the results may differ from standard set by this study. The results could be more generalized if research is conducted in any other country than Nigeria or in any other sector, which was left out for the future research.


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