Employee Satisfaction And Customer Satisfaction

Due to increased competition many service industries are trying to improve the manpower of their organization and efforts are done to increase employee satisfaction so that the quality of service will be maintained and it will lead to customer satisfaction. Various studies of human resource management and marketing management focus on the relevance of employee satisfaction on customer satisfaction and explained the connection between the employee satisfaction, employee loyalty, customer satisfaction and customer loyalty and ultimately lead to firm financial performance (Loveman, 1990; Silvestro and Cross 2000, Yee et.al.2010, Heskett et.al.1994, Batt et.al. 2002). Variables of the study are employee satisfaction, employee loyalty, customer

Employee satisfaction not only increases the productivity but also increases the quality of work. Organization needs to create a work environment that encourages employees to give quality response to the need of the customer. The direct relationship between employee satisfaction and customer satisfaction was established on the theory of emotional contagion (Sutton and Rafaeli 1988, Hatfield et.al.1992, Hatfield et.al.1994, Barsade 2002). Emotional contagion is defined as “the tendency of a person to automatically mimic and synchronize expressions, postures and vocalizations with those of another person and consequently to converge automatically” (Hatfield et.al.1992 and Hatfield et.al 1994). Rust et al (1996), claimed that employees who recognized and appreciate relationships with customers, provide better services. Customers who receive better services complain less and create fewer problems for employees. Heskett et.al (1997), described the relationship between employee satisfaction and customer satisfaction with their analogy of the satisfaction mirror which conveyed the idea that business success results from employee satisfaction being reflected in terms of customer satisfaction. In particular the strength of richness of heskett et al. contribution lied many drivers of performance drawing together many desperate claims about these interdependencies (Silvestro

So we can say that there is a significant relationship exists between customer satisfaction and customer loyalty.

7. Implications: This study has various implications for both academician, researchers and for various service industries. For researchers it acts as a knowledge base for further studies related with this topic. For service industry the result will provide a great help in formulating various policies regarding employee satisfaction, employee loyalty, customer satisfaction and customer loyalty.

8. Limitations of the study: This study has some limitations, firstly this study examined relationship between employee satisfaction and customer satisfaction it took only some dimensions under each variable. Secondly the study was done on few cities of M.P. all cities were not covered in it so the generalization of the results and findings are not warranted. Thirdly the data was collected within a period of time, so the findings are confined for a particular period and cannot be generalized for longer period of time. Fourthly, we applied linear regression and multiple regressions but if other measurement versions were used then the result would be