MBM 201 Self Study

Driving Happiness into Customer through Employee Satisfaction (A Preview Report)

Submitted To:
Dr. Shalini Nigam Department of Management Faculty of Social Sciences

Submitted By:
Arpit Rai MBA Integrated 107683

DAYALBAGH EDUCATIONAL INSTITUTE (DEEMED UNIVERSITY) DAYALBAGH, AGRA 282010.

Camping trips. or the state of being satisfied. contentment in possession and enjoyment. which wise employers would do well to implement. gratification of desire. measurements. Understanding of mission and vision. and positive employee morale in the workplace. as happy workers will be more likely to produce more. Factors contributing to employee satisfaction include treating employees with respect. repose of mind resulting from compliance with its desires or demands. offering above industryaverage benefits and compensation. and philosophical approaches have striven to define happiness and identify its sources. can help build close bonds among workers. paintball wars and guided backpacking trips are versions of this type of teambuilding strategy. and expectations. Holding office events. Many measures purport that employee satisfaction is a factor in employee motivation. and positive management within a success framework of goals. Definition: Employee satisfaction is the terminology used to describe whether employees are happy and contented and fulfilling their desires and needs at work. religious. Empowerment. such as parties or group outings. Employee satisfaction is looked at in areas such as:     Management." Employee satisfaction is a measure of how happy workers are with their job and working environment. Many companies also participate in team-building retreats that are designed to strengthen the working relationship of the employees in a non-work related setting. and stay loyal to the company. employee goal achievement. with which many employers have found success. The best ways to maintain employee satisfaction is to make workers feel like part of a family or team.Driving Happiness in Customer through Employees Satisfaction Happiness: Happiness is a mental state of well-being characterized by positive or pleasant emotions ranging from contentment to intense joy. There are many factors in improving or maintaining high employee satisfaction. Keeping morale high among workers can be of tremendous benefit to any company. empowering employees. psychological. Teamwork. providing employee perks and company activities. A variety of biological. Satisfaction: The act of satisfying. providing regular employee recognition. take fewer days off. "The mind having a power to suspend the execution and satisfaction of any of its desires. .

which means that employee satisfaction plays a “strong. leading to a satisfaction-quality-profit cycle. which in turn leads to customer retention. However the scenario is that employee satisfaction has direct impact on their customers and ultimately company profits. As per the model. more productive employees will make more sales. According to Corporate Leadership Council. and customers that confers the business to achieve its predetermine goals.” Satisfied employees are more productive. innovative and loyal. it is clearly seen that employee satisfaction paves the road for his commitment and loyalty towards the assigned job. customer satisfaction and financial performance. These offerings lead to the value maximization from the point of customer that he is getting from the existing products or services. while the later in turn influences firm profitability…. So in the growing era of competition where every company is trying to get away from the severe headache of employee attrition rate. a customer at last feels happy and well satisfied from the existing offerings being rendered by the satisfied employees ultimately driving his and overall company’s performance which plays an important role in the development of economy of a country. There is a “positive and significant relationship between customer satisfaction and employee satisfaction. “Employee satisfaction is significantly related to service quality and to customer satisfaction. Employee satisfaction enables the smooth and continuous functioning of any organization and leads in building up strong and long-lasting relationships with their peers. and ultimately make more money for the company. One can assume that happier. which can even differ between departments and business units within one company. bosses. employee satisfaction plays an important role in any company. central role” in predicting profitability and “organizational effectiveness”. Need of the Study: Employee satisfaction is essential to any organization to enhance its productivity and profitability. Thus.” In the stated model.” these relationships are “positive and statistically and substantively significant”. Employee Satisfaction Leads to Customer Happiness: It has been long established that organizations with a quality foundation have better leverage to achieve high levels of customer satisfaction. for which he has being designated. Co-worker interaction. Moreover. each company must determine how it defines employee satisfaction and customer satisfaction. treat customers better. . “Companies must build their own models because customer satisfaction is only one variable in understanding the relationship between employee satisfaction. the employee satisfaction directly and indirectly gives a benchmark for the quality that is being rendered by him through product or service offerings.  Communication.

that is. There should be a continuous driving force which induces employees to give 100% at work place and leads to generate satisfied customers for the organization through their job satisfaction. employee satisfaction is essential to rebuild the lost identity in the employee that motivates him to perform optimally at the workplace. Enhancing Employee Satisfaction: Now in the world of competition where every individual is under laid with abundance of pressure of fulfilling his/her job.EMPLOYEE COMMITMENT PRODUCT QUALITY VALUE MAXIMIZATION EMPLOYEE SATISFACTION CUSTOMER HAPPINESS SERVICE QUALITY EMPLOYEE LOYALTY Employee Satisfaction Ultimately Leads to Customer Happiness!! Relationship between Satisfied Employee and Customer Satisfaction The following reasons that affect the relationship between employee satisfaction & customer satisfaction are: 1. they have the motivational resources to deliver adequate effort and care. Satisfied employees are empowered employees. Satisfied employees have high energy and willingness to give good service: at a very minimum. Satisfied employees can provide customers with interpersonal sensibility and social account. 4. in other words. 3. . Satisfied employees are motivated employees. they can deliver a more positive perception of the service/product provided. and responsibilities to understand and serve customer needs and demands. 2. 5. Employees that interact with customers are in a position to develop awareness of and respond to customer goals and needs. training. they have the resources.

Matching the “A”s This one is critical. 3. As those decisions become more and more effective. clear accountabilities and matching authority. Companies that invest in their employees’ growth will not only have happier employees. they will have more productive employees who generate better and better ideas for improving the company. 2. Many positions have job descriptions but it’s critically important to be very clear about what each and every person in the organization is accountable for. the individual needs: 1. employees can begin to make decisions about their daily work with confidence. Basic tools Certainly. and it’s certainly no different in employee relationships. a company’s employees need to have the basic tools to do their jobs. we have to ensure each person has the authority to deliver those accountabilities.According to Maslow’s need Hierarchy. 5. Training/Knowledge/Growth The final layer of employee satisfaction is all about growth. The organizational people with lieu support of both organizational and individual goals create a healthy working environment for the employees that entrust them to give their best . Confidence With a solid framework for decision-making. Trust and Respect Trust and respect are the foundation of pretty much all successful human relationships. employees become more self-confident. Organizational Antecedents of Employee Satisfaction and Employee Customer Service: The employees can fully deliver his best at the work place with the support of organization which enables them to know for what purpose they are there in the organization. Those tools could be computers. One of the best ways to assess the levels of trust in an organization is to examine assumptions regarding intentions. 4. etc. uniforms. Once those accountabilities are defined. and a mismatch here is often the source of some of the biggest problems The “A”s are Accountability and Authority. Creating more skilled and more knowledgeable employees has an extremely high ROI. office supplies.

three elements are required:   Perceived Organizational Support (POS). helpfulness. Customer Participation. that is. This ultimately drives in building relationship with customers and induces a revenue growth. Leads in driving more revenue for the organization.  Perceived Organizational Support Employee Service Effort Perceived Supervisory Support Job Satisfaction Customer Participation Employee Service Quality Model Showing the Effectiveness of Employee Service Quality Benefits of Employee Satisfaction: The organization can entails with the benefits in the following ways:      The increased employee satisfaction is the potential for employees to exhibit more creativity and innovation. the extent to which employees perceive that the organization values their contributions and cares about their wellbeing. Helps in reducing employee turnover in the organization. Ultimately satisfies the customer at the end point. . mentally. Perceived Supervisory Support (PSS). Helps in building inter-personal relationship in the organization. that is. high PSS implies that important socio emotional resources are immediately available in the work environment. the extent to which a customer is physically. the extent to which supervisors develop a climate of trust. To better ensure the antecedents between employee satisfaction and customer satisfaction. that is. and friendliness. both the resources/information that customers bring into the transaction and the actual behaviours they engage in are important. The customer at the end. are the feedback for the organisation relating to the employees performance which ultimately signifies that how much employees are satisfied with their current job. At this level.performance. and emotionally involved in the delivery of a service/product.

C. company culture is about making employees happy.com   In 2011. employees. U. “Customer service is about making customers happy.EMPLOYEE SATISFACTION LEADS TO CUSTOMER HAPPINESS A Case study of Zappos. Journal of Operations Management 27: 169–184. G. L.. B. Baker. and Gursoy. Jiang. R. C. (2010) Quality of Employment and Job Satisfaction: Evidence from Chile. amplify our vision for our customers. vendors and peers. Chi. Employee Satisfaction into $1.2 Billion by Brian Solis . G. Introducing the “EMPLOYEE SATISFACTION MODEL” the company did realise that the employees were able to perform better and their productivity increased by 25% and the revenue also increased by 35% setting a great example in front of their competitor’s. International Journal of Hospitality Management 28. D (2009) Employee Satisfaction. Customer Satisfaction. and Frazier. 245–253. so let’s just simplify it and at the same time. (2009) An Analysis of Job Dissatisfaction and Turnover to Reduce Global Supply Chain Risk. So the team took a step back and looked at the science of happiness in order to develop the company’s next growth strategy: delivering happiness to the world   References     Cassar. Zurich: ETH-Zurich. the Zappos brand evolved from an online shoe retailer toward a customercentric organization powered by service. Hsieh was introduced to positive psychology. and Financial Performance: an Empirical Examination.” Following the success of investing in company culture and customer service. Zappos Turned Customer.

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