(PDF) The Impact of Hotel Employee Satisfaction on Customer Satisfaction

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“An investigation on the impact of employee satisfaction on customersatisfaction in hospitality industry- A case study of luxury hotel staff in Japan”0
AbstractAt present, the hospitality industry is heavily competitive, in which the organizations aremaking efforts to satisfy their employees for sustainable development. Employee satisfaction isconsidered as an essential element for the organizations to achieve their goals and objectiveseffectively (Kang et al., 2015). This research study aims to analyze the impact of employeesatisfaction on customer satisfaction in the hospitality industry in the theoretical aspect. In recentyears, many of the changes occurred in the hospitality industry concerning intensifyingcompetition, supply and technological requirements, which is resulted in increasing demand ofthe trained employees.Based on the research outcomes it is observed that there are several ways such ascommunication, employee reward system, listening and transparency that can be implemented bythe organizations in motivating and improving employee satisfaction at the workplace. Theorganizations can use these ways as strategic tools to improve the job satisfaction level of theemployees. The pleased employees in hotels are expected to help the visitors with morepleasurable conduct and an advanced echelon of consumer services. The organizations canproduce further satisfying consumer experience, enhance consumer loyalty and finally coerceincreased organizational profitability (Kim and Brymer, 2011). The hospitality organizationsrequire the attention of their front-line employees as these employees have direct contact withdaily customers. In luxury hotels, the management has the relationship between customers andfront-line employees at a central point as this relationship prepares a base to achieve theorganizational objectives in an effective manner. In this regard, the management needs to captureinto consideration the additional factors that yield the profitability at each level of theorganization. In this concern, the hospitality organizations are recommended to have properattention to satisfy the employees in an effective manner, which will be helpful in satisfying thevisitors in an attractive manner. The management can use modern technology to such as emailsand messaging system to communicate with the employees and know the issues in humanresources processes. In addition, the management should develop their policies by consideringthe views and opinions of the employees. The improved and attractive policies will motivate theemployees and enable them to achieve the organizational objectives in effective manner.1
Table of ContentsABSTRACT...................................................................................................................................................................1CHAPTER 1: INTRODUCTION................................................................................................................................51.1) RESEARCHBACKGROUND...................................................................................................................................51.2) PROBLEMSTATEMENT:........................................................................................................................................81.3) RESEARCHAIMANDOBJECTIVES.......................................................................................................................81.4) RESEARCHQUESTIONS........................................................................................................................................91.5) SIGNIFICANCEOFTHERESEARCH.......................................................................................................................91.6) RESEARCHHYPOTHESIS....................................................................................................................................101.7) DISSERTATIONSTRUCTURE...............................................................................................................................10CHAPTER 2: LITERATURE REVIEW.................................................................................................................122.1) EMPLOYEESATISFACTION.................................................................................................................................122.2) CUSTOMERSATISFACTION.................................................................................................................................132.3) FACTORSTHATAREINFLUENCINGEMPLOYEEJOBSATISFACTION....................................................................132.4) THEORIESRELATEDTOJOBSATISFACTION:......................................................................................................162.5) RELATIONSHIPAMONGEMPLOYEEJOBSATISFACTIONANDCUSTOMERSATISFACTIONINTHEHOSPITALITYINDUSTRYOFJAPAN.................................................................................................................................................172.6) RECOMMENDATIONSTOIMPROVEEMPLOYEESATISFACTIONTOIMPROVECUSTOMERSATISFACTION............182.7) CONCEPTUALFRAMEWORK..............................................................................................................................232.7) LITERATUREGAP...............................................................................................................................................24CHAPTER 3: RESEARCH METHODOLOGY.....................................................................................................263.1) INTRODUCTION..................................................................................................................................................263.2) RESEARCHONION.............................................................................................................................................263.3) RESEARCHPHILOSOPHY....................................................................................................................................273.4) RESEARCHAPPROACH......................................................................................................................................293.5) RESEARCHDESIGN............................................................................................................................................303.6) RESEARCHSTRATEGY.......................................................................................................................................313.7) DATACOLLECTIONMETHODS..........................................................................................................................313.8) CONSTRUCTIONOFTHEQUESTIONNAIRE.........................................................................................................333.9) SAMPLINGMETHOD..........................................................................................................................................333.10) DATAANALYSISPLAN....................................................................................................................................343.11) ACCESSIBILITYISSUES....................................................................................................................................353.12) ETHICALISSUES..............................................................................................................................................352
3.13) RESEARCHLIMITATIONS.................................................................................................................................353.14) SUMMARY.......................................................................................................................................................363.15) RESEARCHTIMESCALE....................................................................................................................................36CHAPTER 4: DATA ANALYSIS AND INTERPRETATION..............................................................................384.1) INTRODUCTION..................................................................................................................................................384.2) ANALYSISOFTHERESULTSOFPRIMARYRESEARCH........................................................................................384.3) RELATINGTHEFINDINGSOFPRIMARYRESEARCHWITHLITERATURE............................................................514.4) TESTINGOFHYPOTHESISANDRESULTS...........................................................................................................56CHAPTER 5: CONCLUSION AND RECOMMENDATIONS.............................................................................585.1) CONCLUSION.....................................................................................................................................................585.2) RECOMMENDATIONS.........................................................................................................................................605.3) RESEARCHLIMITATIONS...................................................................................................................................635.4) FUTURERESEARCHIMPLICATIONS...................................................................................................................64REFERENCES............................................................................................................................................................65APPENDIX 1: QUESTIONNAIRE..........................................................................................................................71APPENDIX 2: DATA SHEET...................................................................................................................................76APPENDIX 3: DATA GRAPH..................................................................................................................................83Appendix 4: Ethics........................................................................................................................................................903
Chapter 1: IntroductionThe research is describing the impact of employee satisfaction on customer satisfaction in thehospitality industry in Japan. This research discusses the role of employee satisfaction inimproving the customer services in luxury hotels. In addition, the research is also explaining thedifferent method by which employee satisfaction can be enhanced. The research is investigatingvarious methods such as training and development programs and organizational policies for theemployees to improve their performance and motivate employee them to perform with moreefficiency for customer satisfaction. In this concern, Grand Hyatt Tokyo is considered tounderstand the research issue in a better way.1.1) Research BackgroundThe research study proposes to explore the impact of employee satisfaction on customersatisfaction in the hospitality industry in Japan. In recent years, many of the changes occurred inthe hospitality industry with respect to intensifying competition, supply and technologicalrequirements, which is resulted in increasing demand of the trained employees. In addition, thesatisfied employees work with more efforts, which lead to increased services. The increasedlevel of services attracts more customers (Wustenhagen and Menichetti, 2012). Therefore, thecustomer satisfaction is a dependent variable, which is depended on employee satisfaction. Thehospitality industry of Japan is growing rapidly and attracting to domestic and internationalinvestors, but the employees are not satisfied with their career development.In Japan ‘Omotenashi' is termed to treat the guests traditionally.This term is used as a guidingprinciple for the hospitality industry. In recent, it is observed that the development of new hotelsis accelerating against the growing number of inbound tourist. The luxury hotels are improvingtheir working environments and focusing on the satisfaction level of their employees. Lee andOk (2012) stated that employee job satisfaction plays an immense role in satisfying the customer.The satisfied workers with their job or position in the organization will be dedicated to providingbetter and improved services to the consumers and ultimately can enlarge organizationalprofitability. The management of the luxury hotels understands the employee desires from theorganization and tries to satisfy their expectations in an effective manner. The managementbelieves that satisfied employees can deliver better services to the visitors. In this concern, there4
is a positive relationship between the employee job satisfaction and quality of customer services.In the competitive business environment, employee job satisfaction is considered a significantvariable in the success of hospitality organizations.Zopiatis et al., (2014) described that there are several ways such as communication, employeereward system, listening and transparency that can be implemented by the organizations inmotivating and improving employee satisfaction at the workplace. The organizations can usethese ways as strategic tools to improve the job satisfaction level of the employees. Theorganizations can implement listening as a business strategy to improve the employeesatisfaction as it is helpful in resolving the conflicts in the workplace and establish a peaceful andattractive environment. Through the listening strategy, the management can know the consumerperceptions and can implement an appropriate business strategy to improve the customer servicesto improve customer satisfaction level. As well as, communication, employee reward system,transparency and organizational policies also plays an essential role in employee satisfaction andcustomer satisfaction (Vlachos et al., 2013). In this concern, the luxury hotels must have theproper focus on the development of human resource policies to satisfy the employees in aneffective manner.About the company:Hotel Grand Hyatt is a luxury hotel in Japan which is providing its hospitality services in anauthentic manner. The mission of the hotel is to have focused on everyday operations to developa relationship with its associates, owners and customers. The business activities of Grand HyattHotel are conducted by its officers and employees under the direction of Chief Executive Officerand Board of Directors to improve the long-term worth of the hotel for the associatedstockholders. In this hotel, the board of directors is selected by its potential stakeholders toensure that the long-term interests of the stakeholders are being served. In addition, themanagement recognizes that the long-term interests of employees are higher by taking intoconsideration in which Hyatt Hotels Corporation operates.Employee job satisfaction and customer satisfaction are interrelated to each other in an excellentmanner. The satisfied employees will effort intended to provide better customer services tosatisfy the customers. The management of Hyatt Hotel considers that pleased employees in5
hotels are expected to help the visitors with more pleasurable conduct and an advanced echelonof consumer services. The organizations can produce further satisfying consumer experience,enhance consumer loyalty and finally coerce increased organizational profitability. An effectiveCRM (Customer Relationship Management) program is a helpful hospitality organization insatisfying the customer. In this concern, the research study will discover diverse methods andtechniques for establishing effective CRM to satisfy the customers (Hassan et al., 2015). Meetingthe needs of employees and customers from a specific organization are denoted as satisfaction.Therefore, each of the organization has their own elements to satisfy employees and customers toimprove the organizational profitability. It may be higher, lower, or equal in term of motivation,expectation and fulfillment of need is satisfied. Employee satisfaction is based on theachievement of vision and mission, on other side customer satisfaction is necessary for anyorganization. In the present era, the balanced scorecard is considered as a significant strategicinitiative to implement the organizational policies for different stakeholders. Financial andnonfinancial factors have implemented a system for the growth of an organization with properresponses from the consumer. The balanced scorecard is helpful in providing the measurableimprovements in job satisfaction, employee retention, financial growth and customer relationshipin excellence manner (Sageer et al., 2012). Thus, the balanced scorecard is a useful tool forimproving the job satisfaction and customer satisfaction.1.2)Problem statement:The company is facing issues of employee satisfaction, which is influencing on the satisfactionlevel of its customers. It is essential for an organization to have satisfied employees to providebetter customer services. In addition, the company is also facing the employee concernsregarding employee policies so that the research study will be helpful in identifying the factorsthat are influencing employee satisfaction as well as customer satisfaction (Pelit et al., 2011).1.3) Research Aim and ObjectivesThe aim of the research study is to investigate the impact of employee satisfaction on customersatisfaction level in the hospitality industry, which can be achieved through the strongunderstanding and investigation of the below research objectives:6
To analyze the factors affecting employee job satisfaction and current satisfaction level ofemployeesTo analyze the factors affecting customer satisfactionTo investigate the relationship among employee job satisfaction and customer satisfactionin the hospitality industry of JapanTo recommend the ways to manage to improve employee satisfaction to improvecustomer satisfaction1.4) Research QuestionsBelow are the research questions that would answer throughout the research study:What is the role of job engagement in improving customer satisfaction?What are the key drivers of job satisfaction?What is the relationship between employee job satisfaction and customer satisfaction inthe hospitality industry?How the CRM practices influence on customer satisfaction?Will the satisfied employees improve customer satisfaction?Can the organizations improve employee satisfaction through providing growth anddevelopment opportunities for the employees?What are the ways to improve customer satisfaction through employee satisfaction?1.5) Significance of the ResearchThe research study is helpful for the hospitality organizations to improve customer satisfactionthrough employee satisfaction. It is essential for the organizations to implement differentorganizational policies to satisfy the employees and retain the skilled and experiencedemployees. The research outcomes will be helpful for the management in making an attractiveemployee policy to satisfy the employees at the workplace. The attractive organizational policieswould be beneficial for the organizations in improving employee satisfaction level and retain theskilled employees for long-term (Brun and Cooper, 2016). In this concern, the research discussesthe impact of the employee satisfaction on customer satisfaction in the hospitality industry. Inthis concern, the research study has significance for the researcher and readers about theimportance of employee satisfaction in the hospitality industry.7
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