This website uses cookies to ensure you have the best experience. Learn more

The Effects Of Employee Satisfaction On Productivity, Performance, Customer Satisfaction And The Organization Financial Performance

1958 words - 8 pages

Executive Summary
According to modern scientific management theories, Employee satisfaction, Productivity, Performance, Customer satisfaction and the organization financial performance are interlinked. Any changes caused to any one of the above parameters may have strong impacts upon other parameters. Even though an organization may have lot of resources, human resources or the employees seem to be the most vital one because of the necessity of employees in mobilizing all the other organizational resources. In other words, employee performance and productivity is linked with the mission, vision, objectives and goals of the organization.
Only the satisfied employee may deliver his maximum ...view middle of the document...

Studies such as Frederick Reichheld’s “The Loyalty Effect,” (1996) and James Heskett,W. Early Sasser, and Leonard Schlesinger’s “The Service Profit Chain” (1997) conclude that there are direct and quantifiable links between customer service variables (such as satisfaction and loyalty), employee variables (such as satisfaction, enthusiasm, loyalty, commitment, capability, and internal service quality), and financial results (Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction, 2003, p.1)
Employees are the only active element in an organization. All the other organizational resources are passive and need the support of human element to deliver the goods. In other words employees are the drivers who drive the organizational resources in a particular direction to meet the organizational goals. If the drivers or the employees are incapable of driving the vehicle properly, it is difficult for the organization in reaching the target or meeting the goals. Only the satisfied drivers will keep the vehicle in good condition by driving the vehicle safely and effectively. Dissatisfied drivers will never bother much about the conditions of the vehicle or the negative impacts of crazy driving habits. Proper driving will help the vehicle owner to reduce maintenance cost of the vehicle which will increase his profits.
“The Watson Wyatt Worldwide Human Capital Index study suggests that effective human resources practices lead to positive financial outcomes more often than positive financial outcomes lead to good practices” (Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction, 2003, p.2). Many people often raise the question - which one evolved first; hen or egg? The same question is asked in the organizational world also – whether good human management practices lead to better organizational performances or better organizational performances lead to good human management practices? The above question often yields mixed answers. This is because of the myths prevailing in organizational world. Some organizations provide better facilities to its employees only when the organization’s financial performances exceed the expectations. On the other hand, well managed organizations are always keen in providing better facilities to the employees irrespective of its financial performances. Paul Krugman, the Nobel Prize winner and the renowned American economist, recently asked American government to increase spending to increase the economic activities in the country and to escape from the recent recession problems. The same economic principle is applicable in the organizational world also. Better investments on human resources will make the employees satisfied and their satisfaction will be reflected in the organization’s future performances. No satisfied employees may work against the interests of the organization whereas dissatisfied employees may work against the organization’s interests.
...

Other Papers Like The Effects of Employee Satisfaction on Productivity, Performance, Customer Satisfaction and the Organization Financial Performance

Customer Satisfaction Essay

9073 words - 37 pages understanding of the link between customer satisfaction and the financial outcomes of an organization The traditional product-oriented bank has transformed to a customer-oriented organization working in a very competitive environment. Towards this direction helped the internationalization of markets, the telecommunications and technology boom and by all means the liberalization of unified geographical areas. This paper is an empirical

Customer Satisfaction Essay

3842 words - 16 pages consider performance over time as well as comparisons to industry norms or standards. Normative data is available for minimal or no cost. Numerous survey techniques exist to measure satisfaction, most of which WCMSI has the technology and capability to perform in-house. In-house capabilities include IVR, live agent and web-based. • As a result of our research we conclude that: • Adding customer satisfaction to our core competency of

Customer Satisfaction

4517 words - 19 pages becomes a key to competitive advantage (Almossari, 2001; Stafford, 1996). In addition, financial services, like other services are intangible, difficult to evaluate, and rest on experience and credence quality (Zeithaml, 1981; Zeithaml et al., 1985). Customer satisfaction is a measure of how products and services supplied by a company can meet the customer's expectations. With better understanding of customers' perceptions, companies can

Customer Satisfaction - 2085 words

2085 words - 9 pages Retail stores and 30 Super markets). Survey conducted on Geographical basis. [Type text] Page 3 Customer satisfaction towards Parle agro products [Type text] Page 4 Customer satisfaction towards Parle agro products INTRODUCTION INTRODUCTION [Type text] Page 5 Customer satisfaction towards Parle agro products The concept of customer satisfaction occupies a central position in business thought and practice. Due to growing pressures

Customer Satisfaction - 5228 words

5228 words - 21 pages members’ returns on their savings c) Find out how ISO has affected handling of customer complaints and enquiries d) Establish how ISO has impacted claim processing and payment of benefits 1.4. Value of the study The findings of this project would help LAPFUND appraise levels of its customer satisfaction. For any organization to remain relevant and competitive this, is an area which cannot be ignored. One may assume that LAPFUND

Employee Satisfaction

611 words - 3 pages INTRODUCTION Employee Satisfaction can be defined as how an employee is happy at his work place which can be shown by his loyalty and commitment towards the organization. Job satisfaction is about the feeling of the nature of the job. Employee Satisfaction is very important in an organization because it is what productivity depends on. An organization with more satisfied employees tends to be more effective (Robbins & Judge, 2007). Another

Customer Satisfaction - 1176 words

1176 words - 5 pages indicator of how likely a customer will make a purchase in the future. Asking customers to rate their satisfaction on a scale of 1-10 is a good way to see if they will become repeat customers or even advocates. Any customers that give you a rating of 7 and above, can be considered satisfied, and you can safely expect them to come back and make repeat purchases. Customers who give you a rating of 9 or 10 are your potential customer advocates who

Customer Satisfaction - 1587 words

1587 words - 7 pages Customer satisfaction Customer satisfaction is one of the most essential elements of customer retention, customer loyalty, and product repurchase. The art and science of customer satisfaction involves strategically focusing on creating and reinforcing pleasurable experiences. To maximize customers satisfaction about Fadzill Construction Sdn. Bhd works, they practice built and sell method which after the construction is finished with all

Customer Satisfaction - 627 words

627 words - 3 pages chain, i.e. KFC Concepcion Marikina. The main objective of this research is to determine the relationship of management strategies of KFC Concepcion Marikina and customer satisfaction. The study shall be divided into five chapters in order to provide clarity and coherence on the discussion of the topic. The first part of the study will be discussing the problem uncovered by the researcher and provide ample background on the topic

Customer Satisfaction - 1111 words

1111 words - 5 pages IMC and Customer Satisfaction IMC and Customer Satisfaction In the Robinson Consultation Firm we plan to get our name out to our customer with some advertising. We will have some ads that will be located in the local newspaper to get us started. We will also use social media sites to get our name and services known. The newspaper will be a good way to bring awareness to small businesses and people who want to start their own business. Once

Employee Satisfaction

312 words - 2 pages b. No Q15. Which of the following factors which motivates you most ? a. Salary Increase b. Promotion c. Leave d. Motivational talks c. Recognition Q16. Does your organization recognize and acknowledge your work. a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree Q17. Does the organization provide satisfactory Salary according to your Work? a. Yes b. No Q18. Your Overall Satisfaction as an employee of XYZ Organization? a. Highly Satisfied b. Satisfied c. Average d. Dissatisfied e. Highly Dissatisfied

Related Essays

Motivation, Job Satisfaction And Performance Essay

1828 words - 8 pages employee, then that employee’s quality of work or all work in general will deteriorate. PERFORMANCE The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed. JOB SATISFACTION Contentment (or lack of it) arising out of interplay of employee's positive and negative feelings toward his or her work. Various publications focusing on organizational behavior have spent a considerable

Job Satisfaction & Its Influence On Employees Performance

748 words - 3 pages -engineering. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work position. Job satisfaction is a very important attribute which is frequently measured by organizations. Job Satisfaction and Productivity : Happy workers may not necessarily be productive workers. Studies have focused on individuals rather than on the organization and at individual level measures of

Imc And Customer Satisfaction Essay

1515 words - 7 pages IMC and Customer Satisfaction MKT 500 IMC AND CUSTOMER SATISFACTION Nu Care’s value must be viewed in two ways. First, the customer, what do we offer that they will recognize as a value? Second, the retailers, to purchase, distribute, and market Nu Care products. In order to grab the attention Nu Care’s marketing team has adopted to use Integrated Marketing Communications. With the use of IMC Nu Care will be

Imc And Customer Satisfaction Essay

1170 words - 5 pages Assignment 4: IMC and Customer Satisfaction Nikeem Wilkins MKT 500 Steven Englehart November 26, 2012 Discuss the company’s advertising strategy and how it aligns with its marketing goals. Marks autos number one goal is customer satisfaction. We have to make the customer happy and also make a profit. It can be problematic because you want to please everyone. The best approach is to focus on the core audience. That’s