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Date 2022-03-31

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CHAPTER ONE

INTRODUCTION

1.1. Background to the Study

Employee satisfaction has an important influence on the customers for the survival of any organization or firm. This is more
so in a service organization (Bitner et ai, 1990). Organisations strongly desire employee satisfaction for their employees.
Employee satisfaction has been found to significantly influence job performance, absenteeism, turnover, and psychological
distress. Dissatisfied workers are prone to excessive turnover and absenteeism. Understanding employee satisfaction thus
may be linked to performance, organisational productivity and other issues, including labour turnover. All these points to
customer satisfaction. Employee satisfaction is important to customer satisfaction in influencing organisational
performance. Lee (1988) showed that employee satisfaction is among the best predictors of turnover. Employee
satisfaction also influences customer perceptions of service quality. Additionally, it was further found that. employee
benefits influence employee satisfaction. Indirect costs associated with job dissatisfaction include training, recruiting and
learning curve inefficiencies, as well as reduction in the client base.
Conversely, employee satisfaction can improve productivity, reduce staff turnover and enhance creativity and
commitment.
Therefore, employee satisfaction should not be ignored as it influences customer and yet very few current employers take
it seriously (Ulmer et al., 1999) and all of this can be achieved through a good employer-employee relationship.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will
vary from person to person and product/service to product/service. The state of satisfaction depends on several both
psychological and physical variables which correlate with satisfaction behaviours such as return and recommend rate.
The level of satisfaction can also vary depending on other options the customer may have and other products against
which the customer can compare the organization's products and services (KOskO 2001).
Akintoye (2000) describes that there are two (2) major types of customers in an organization; the internal customers who
are mainly the employees of the company, they are maybe the suppliers of the raw materials or those directly or indirectly
involved in the production of a good or service. The external customers are the beneficiary of the product or the service or
mainly the end users. An organization must first satisfy the needs of the internal customers before they fulfil the needs of
the external customers for it to be successful and for it to have a good foundation.

The objectives of higher education are to provide in-depth knowledge, seek academic development, educate students,
and coordinate national development demands.
Perkins (1973) proposed that university staff fulfil three major functions, namely teaching, researching and administration
and management. Consequently, university staff satisfaction is related to the functions of higher education of
disseminating information to the students as the main consumers of knowledge. Dalton and Pica (1998) found that the
quality of faculty and instruction are important elements for satisfying current job undergraduates and graduates, and that
current job placement and services were important to students. Similarly, in the higher education sector, Oshagbemi
(1997a) investigated employee satisfaction among university professors.
Hagedorn (1994) examined the satisfaction of academic staff using various variables, including salary, perceived
support from colleagues, satisfaction with administration, enjoyment of student interaction and perceived stress levels.
He concluded that all these had a strong influence on the students' (customers' satisfaction. This is because customer's
expectations can't be met without first meeting the employees' expectations to their satisfaction (Heskett etal, 1997). Thus,
a satisfied employee leads to a satisfied customer, and a satisfied customer will come again and again. Thus, the
organization's primary objective of profit maximization will be met which will lead to attainment of other objectives.

Matched Source

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Similarity 9%
Title:www.theibfr.com › download › gjbrMEASURING SERVICE QUALITY: PERCEPTIONS OF EMPLOYEES
customers (Edvardsson et al., 1997).Conversely, employee satisfaction can improve productivity, reduce staff turnover and
enhance creativity and commitment. Employees who are satisfied have higher intentions of staying with an organizationand
recommending the organisation to others . However,
https://www.theibfr.com/download/gjbr/2010-gjbr/gjbr-v4n1-2010/GJBR-V4N1-2010-4.pdf/

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Title:Customer satisfaction - Wikipedia
The level of satisfaction can also vary depending on other options the customer may have and other products against which
the customer can compare the ...
https://en.wikipedia.org/wiki/Customer_satisfaction

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Title:TQM The development of an employee satisfaction …
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development demands (Johnes and Taylor, 1990). Perkins ...
https://www.researchgate.net/profile/Shun-Hsing-
Chen/publication/241701334_The_development_of_an_employee_satisfaction_model_for_higher_education/links/547c692c0cf2a961e48a11d
development-of-an-employee-satisfaction-model-for-higher-education.pdf

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Title:(PDF) Employee Satisfaction towards Management Policies in ...

https://www.academia.edu/11306950/Employee_Satisfaction_towards_Management_Policies_in_Private_Educational_Institutions_in_Pakistan

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