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Effect of Organisational Management on Customer Satisfaction

Student's Name

Institutional Affiliation

Course Name and Number

Instructor's Name

Date
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Executive Summary

This paper entails a research proposal carried out by Pendulum Research Group on behalf of

Panion to establish the cause of their problems, better understand them, and facilitate the

development of resolution measures. The research proposal identified that despite knowledge

on the merits of effective financial management, human resource management and strategic

position, Panion still registers low employee loyalty, weakened quality control, and a high

turnover rate in its workforce. Additionally, Panion assigns no benefits to its employees, no

insurance cover, no external funding from agencies and increased contribution to agencies of

up to 30% of its total revenues indicating poor financial management practices. Panion also

registers complaints from employees that they travel long distances during work which wears

them out and heightens the occupational hazard that their job has. As research then uses the

components of organization management, i.e. financial management, human resource

management and strategic position, as variables for the study and customer satisfaction as the

independent dependent variable. The research proposal identifies three research hypotheses:

H1 Human resource management positively correlates with customer satisfaction, H1 Financial

management positively contributes to customer satisfaction, and H1 Strategic business

positioning leads to an increase in customer satisfaction. The research states that it will use a

descriptive research design and utilize questionnaires to collect data through these

hypotheses. The study then suggests using multiple regression analysis to show the effect of

organization management on customer satisfaction.

Introduction to Panion

Pendulum Research Group is a global research survey group established in 2011

specializing in documenting the root cause of problems and giving professional

recommendations to our clients on managing the identified issues. Our research uses

qualitative and quantitative research techniques depending on the nature of the research we
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are conducting, thereby providing the firm with the right flexibility required to handle a task

adequately. Additionally, we provide continuous assessments on the recommendations that

we have provided upon their implementation. These ongoing assessments help us ensure that

deviations from the cause of action do not alter the overall objective to be achieved by the

stated recommendations.

Pendulum Research Group also has an adequate staff that work in teams, and we

continuously shift the teams after handling two consecutive tasks. This exercise ensures

maximum employee integration and fosters teamwork and harmonious relationship among

our employees. Each research group has a minimum of six members, and sometimes teams

are pulled up together to offer a combined effort on a complicated subject, thus improving the

efficiency of the research process. The ten-year experience in the research field and the

careful handling of our employees make us confident enough that we can conduct

comprehensive research on your internal affairs, limiting our research to the areas you have

specified.

Personal Understanding of the Problem

My understanding of the problem is that despite comprehensive strategies laid down

to ensure the success of Panion, such as better matching, lower fees, and offering pensionable

job opportunities, the organization still faces development drag from those areas. I believe

that Panion has contacted my company to help them identify how their strategies are failing

them and how they contribute to their performance in the healthcare industry.

Scope of the Problem

Through careful analysis of the situation at Panion, problems cover their external and

internal customers, distance barrier which impedes smooth movement among employees and

customers, poor relationship with external stakeholders such as government and private

agencies and insurance firms (Panion Slide, n.d).

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Preliminary Diagnosis of the Problem

Although Panion appears to be facing various problems, these problems can be

attributed to their specific contribution to the firms. For instance, the issues with revolving

doors shown by high employee turnover, low loyalty, weak quality control, and mismatch of

an employee with the client stem from poor human resource management. The high costs

paid to agencies that cover up to 30 per cent of their revenues, absences of pensions, benefits

and insurance, and lack of meaningful agencies' support stem from poor financial

management. Finally, the long travel hours spent by care workers, inconsistent transportation

distances, and consistent travels all stem from the poor geographical positioning of Panion in

the market. These three problems arise from various parts of the organization, which further

indicates ineffective organizational management. As a result, Panion registers low customer

satisfaction from these problems shown by low loyalty, tired care workers, lack of pensions

and benefits, and frustrated clients, as shown in the summary slide that Panion shared.

My Proposal to the Initial Strategies and Approaches to the Solution

Statement of the Problem

According to Arguins (2013), effective organization management leads to heightened

employee motivation, increased self-esteem, and enhanced self-insight and individual

development. Jakobi (2013) also state increased employee motivation leads to increased

customer satisfaction and organizational productivity.

Despite knowing the merits of effective organization management, Panion still

registers poor human resource management, poor financial management, and poor

geographical positioning of the organization in its market niche. Poor human resource

management problems Panion is facing include high employee turnover, low employee

loyalty and weakened quality control. On financial management, Panion faces issues such as

lack of insurance cover for the firm, lack of benefit for its employees, and poor stakeholder
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relationships with government and private agencies. With poor geographical positioning,

Panion faces problems such as long travel distances by their employees, varying

transportation distances and fatiguing travel experiences that increase risks to its employees.

Various research relating to organization performance and multiple parts of an

organization, such as the effect of management innovation on organization performance by

Walker et al. (2011), found a positive relationship between management innovation and

organizational performance. Another research by Manzoor (2011) shows a positive

relationship between employee motivation and organization effectiveness. However, little

research discusses the effect of effective organization management on customer satisfaction

while focusing on human resource management, financial management, and strategic

organization physical position.

Therefore, by researching the effect of organization performance on customer

satisfaction in Panion, this research will be able to address the research gap in the field by

explicitly focusing on the impact of human resource management, financial planning and

geographical positioning on customer satisfaction

The rationale of the research

Previous Research by Yu et al. (2013) on organization management and customer

satisfaction focused on the effect of supply chain integration on customer satisfaction and

financial performance. Even though this research discussed a section of organization

management, it failed to discuss how human resource management, financial management, or

organization positioning affect customer performance. Another research by Manzoor (2011)

examined the effect of employee motivation on organization performance. This research, too,

failed to discuss how employee motivation affects customer performance. Therefore, this

research will bridge the gap on the effect of human resources management, financial

management, and strategic position on customer satisfaction.

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Research Objectives

1. To investigate the effect of human resource management on customer satisfaction in

Panion

2. To assess the effect of financial management on customer satisfaction in Panion

3. To evaluate the effect of strategic positioning on customer satisfaction in Panion

Research Questions

1. What is the effect of human resource management on customer satisfaction in Panion?

2. What is the effect of financial management on customer satisfaction in Panion?

3. What is the effect of strategic business positioning on customer satisfaction in Panion?

Research hypothesis

H1 Human resource management positively relates with customer satisfaction in Panion

H1 Financial management positively contributes to customer satisfaction in Panion

H1 Strategic business positioning leads to an increase in customer satisfaction in Panion

Literature Review of the Study Variables

Human Resource Management

According to Armstrong (2020), human resource management is the strategic

management of an organization's employees to achieve the organization's goals. Armstrong

(2020) further shows that human resource management aims to achieve organizational

effectiveness, human capital management, reward management, knowledge management and

employee relations management. This knowledge on human resource management will help

this research understands the reasons beyond high employee turnover, mismatch of an

employee with a patient, and weakened quality control which eventually leads to poor

customer satisfaction.

Financial Management
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According to Shapiro & Hanouna (2019), financial management to primary roles are

acquiring funds and responsible investment of the earned funds. Shapiro & Hanouna (2019)

further state that financial management calls for proper budgeting, ensuring responsible

allocation of funds and thus ensuring the smooth running of business processes. Financial

management also allows organizations to pull resources from external sources, thereby

supplementing any shortages that might arise from internal sources (Shapiro & Hanouna,

2019). These essential financial management roles will help this research determine why

Panion has zero funding from agencies, has no insurance cover, and provides zero benefits to

its employees.

Strategic Positioning

Odhiambo and Wanjira (2019) discuss strategic positioning as the thoughtful

positioning of business products and services relative to its market niche. The positioning of

the organization's supply chain network and infrastructure dramatically contributes to the

firm's performance (Chang et al., 2015). Chang et al. (2015) further add on strategic

positioning by stating that the most common strategies organizations incorporate in strategic

positioning are cost leadership and differentiation. Cost leadership strategy favours lowering

the costs of a product or service to an acceptable quality, thereby allowing the firm to benefit

from economies of scale.

On the other hand, differentiation favours the development of unique products and

services then selling them at premium prices. This knowledge will help the research

determine how Panion failed to position its services either geographically adequately or by

not adopting strategic differentiation, and cost leadership approaches to minimize the

movements of its personnel over long distances.

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Conceptual Framework

Independent Variables Dependent Variable

Human Resource Management

Customer Satisfaction
Financial Management

Strategic Positioning

Methodology

Research Design

The study will use a descriptive research design instead of other research designs to
explain the association between financial management, human resource management, and
strategic positioning. Descriptive research design will be more significant in this study
because it emphasizes the extent to which the variables co-vary (Nassaji, 2015). Therefore,
descriptive research design will help this study to demonstrate the relationship between
human resource management, financial management, strategic positioning, and customer
satisfaction.

Data Collection Method

Since the study will use questionnaire survey as the most appropriate data collection

tool. The use of a questionnaire will enable the research to reach out to all the respondents

simultaneously (Rowley, 2014). Additionally, it will also facilitate the research team to

address the research objectives; to investigate the effect of human resource management on

customer satisfaction, to assess the effect of financial management on customer satisfaction,

and to evaluate the effect of strategic positioning on customer satisfaction by answering

survey questions related to financial management, human resource management, and strategic

positioning. The questionnaire will use an ordinal scale to weigh the responses on the study

variables and thus measure the extent to which financial management, human resource
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management, and strategic positioning affect customer satisfaction. The Likert scale will

comprise a scale stretching from 1 to 5. 1 represents strongly disagree, 2 disagree, 3 neutral, 4

agree and 5 strongly agree.

Measures to Ensure Questionnaire Effectiveness

The questionnaire will assure the participants of confidentiality their cooperation into

giving us a true picture of the measure of financial management, human resource

management, and strategic positioning on customer satisfaction. Additionally, the

questionnaire will use simple and eloquent English that will be easily understood by the

respondents. Furthermore, the questionnaire will include multiple-choice options where the

respondents can freely select the option that suits their responses. Finally, the questionnaire

will avoid the use of open-ended questions and only target measurable questions that

facilitates the determination of the effect of financial management, human resource

management, and strategic positioning on customer satisfaction.

Statistical Analysis

The study will utilize a descriptive statistical analysis approach to facilitate the

generation of statistical summary on Panion’s employees responses on questionnaire

questions. The statistical analysis will then incorporate a regression analysis to determine the

relationship between financial management, human resource management, strategic

positioning, and customer satisfaction. However, since the survey will handle more than one

predictor variable, the study will employ multiple regression analysis to show the association

between financial management, human resource management, strategic positioning and

customer satisfaction.

Y= a + b1X1 +b2X2 + b3X3 + b5X5+ e

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Where;

Y= customer satisfaction

a=Y intercept when X is zero

b1, b2, b3 and b4 = Regression weights attached to the variables

X1…..Xn = Co-efficient

X1 = human resource management

X2= financial management

X3= strategic positioning

e = Error

TASK WK WK W WK WK WK W WK WK WK
1 2 K3 4 5 6 K7 8 9 10
Determination of
Research Problem
Presentation of the
Found research
Problems and request
to proceed to
conducting the
research
Writing Proposal
Proposal Presentation
Pilot Test
Data Collection
Data Analysis
Report Writing
Report Presentation
Report Publishing
Research Timeline Table
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References

Aguinis, H. (2013). Performance management (3rd ed.). Pearson Education, Inc.

Armstrong, M. (2011). Human resource management practices (10th ed.). Michael

Armstrong.

Chang, H., Fernando, G. D., & Tripathy, A. (2015). An empirical study of strategic

positioning and production efficiency. Advances in Operations Research, 2015, 1–11.

https://doi.org/10.1155/2015/347045

Jakobi, A. (2013). Space and virtuality: New characteristics of inequalities in the information

society and economy. Review of Applied Socio- Economic Research, 5(5), 1–179.

Manzoor, Q. (2011). Impact of employees motivation on organizational effectiveness.

European Journal of Business and Management, 3(3).

Nissaji, H. (2015). Qualitative and descriptive research: Data type versus data analysis.

Language Teaching Research, 19(2), 129–132.

https://doi.org/10.1177/1362168815572747

Odhiambo, E., & Wanjira, J. (2019). Strategic positioning and competitive advantage of

commercial banks in uasin gishu county, Kenya. International Journal of Current

Aspects, 3(2), 83–97.

Rowley, J., 2014. Designing and using research questionnaires. Management Research

Review, 37, pp.308-330.

Shapiro, A., & Halouna, P. (2019). Multinational financial management. Wiley.

Walker, R. M., Damanpour, F., & Devece, C. A. (2010). Management innovation and

organizational performance: The mediating effect of performance management.

Journal of Public Administration Research and Theory, 21(2), 367–386.

https://doi.org/10.1093/jopart/muq043
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Yu, W., Jacobs, M. A., Salisbury, W. D., & Enns, H. (2013). The effects of supply chain

integration on customer satisfaction and financial performance: An organizational

learning perspective. International Journal of Production Economics, 146(1), 346–

358. https://doi.org/10.1016/j.ijpe.2013.07.023