SME Project: Employee Motivation at Red Carnation Hotel

This project examines the relationship between employee motivation and customer satisfaction, using Red Carnation Hotel as a case study. The research explores the impact of employee motivation on customer satisfaction levels, identifying factors that influence both. The project reviews existing literature on motivation and customer service, highlighting the importance of employee training, fair compensation, and a positive work environment. It employs a mixed-methods approach, including a literature review and data analysis from questionnaires distributed to employees. The findings suggest that employee motivation is critical for enhancing customer satisfaction, recommending the implementation of motivational theories and training programs. The project aims to provide practical recommendations for the hotel to improve employee engagement and, consequently, customer satisfaction, ultimately contributing to business growth and success.

SME Project

Executive Summary
In this modern world, there are different set of issues that are faced by business
operations due to which firm gets negatively affected. There are many factors that affects the
performance and growth of the organization. Among which employees play vital role in
operating and conducting business activities. In this context, it is essential to make sure that
appropriate steps can be take through which workers put on their full efforts to achieve
organizational goals and objectives. Further, there are different aspects that are considered by
customers through which they get satisfied. For this process workers skills and capabilities effect
in an positive manner. This research is over Red Carnation Hotel that will enable to understand
the employee's motivation in enhancing customers satisfaction level. This research will help to
identify the concept of motivation and customers satisfaction. Further, it includes impact of
employees motivation in raising customer satisfaction at Red Carnation Hotel.
As per the findings, it has been identified that employee's motivation is important in order
to raise satisfaction level of customers. Further, cited firm should make use of motivational
theories like Maslow's hierarchy of need. Further, by providing workers with training will help to
raise confidence level and performance.

Table of Contents
Executive Summary.........................................................................................................................2
Chapter 1: Introduction....................................................................................................................1
1.1 Project Rational.....................................................................................................................1
1.2 Current Situation...................................................................................................................1
1.3 Aim and Objectives...............................................................................................................1
Chapter 2: Literature Review...........................................................................................................1
Chapter 3: Research Methodology...................................................................................................4
Chapter 4: Data Analysis.................................................................................................................6
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................9
Reflective Report.............................................................................................................................9
REFERENCES..............................................................................................................................10
Appendix........................................................................................................................................12
Questionnaire............................................................................................................................13

Chapter 1: Introduction
1.1 Project Rational
There are many organizations that deliver their customers with similar products and
services. These companies makes use of different set of strategies that help them to attract more
and more customers. The aim issue on which research conducted is due to diverse set of issues
and problems that are faced by customers towards the services that are delivered to them. One of
the main reason for this issue is lack of satisfaction level of customers because of which firm fail
to achieve their goals and objectives.
1.2 Current Situation
In this current research, Red Carnation Hotel is taken into consideration. This is a small
and medium scale enterprise that is developing their market by delivering high quality services.
They are facing issues in related with customers satisfaction. In cited firm, employees are given
with lot of work and this is raising demotivation level.
1.3 Aim and Objectives
Aim: “Does employee motivation essential in enhancing satisfaction level of customer? A case
study on Red Carnation Hotel.”
Objectives:
 To understand the concept of motivation and customer satisfaction
 To identify the link between motivation and satisfaction to customers.
 To understand the impact of employee motivation on customer satisfaction at Red
Carnation Hotel.
 To make recommendation which will raise motivation level of employees.
Chapter 2: Literature Review
This is an essential part in which this help to understand different set of researches that
are conducted. It will help to come up with appropriate outcome for the current research.
According to Frey, Bayón and Totzek, (2013) customers satisfaction is a stage in which
services users get all the needs and requirements fulfilled with the products and services that are
delivered by organization. There are certain expectations which customers have towards the
services and products. It is essential to make sure all these expectations are satisfied, when these
1

are satisfied, then it raises satisfaction level. On the other hand, Menguc, Auh and Haddad,
(2013) stated that there are certain factors that are considered by workers and when they are
satisfied, then employees get motivated. As per Delcourt, Gremler and Van Birgelen, (2013)
workers are the face of organization as they have direct interaction with customers. They are the
one who present the services and products that are delivered by organization. Further, there are
basis areas that has to be considered by companies and when these areas are considered, then it
becomes helpful to satisfy workers and raise their motivation level. When employees are
satisfied, then they put on their full effort to achieve the organizational goals and objectives.
Both motivation of employees and customers satisfaction level are linked with each
other. When employees are motivated with they understand the requirement of customers and
accordingly they deliver their services through which service users get satisfied. According to
Luo, Wieseke and Homburg, (2012) when a product is to purchased, then there are certain level
that are considered and when at any level customers do not get proper understanding of products
or services, then there is no purchase made and customers get dissatisfied. Different people have
diverse set of perception towards the work they perform and factors that make them motivated.
With this respect, it includes factors like healthy environment, effective interaction, rewards, etc.
It is essential that organization understand the requirement and factors that make workers
motivated. This is helpful to make employees motivated and to direct them towards the work
their perform. In some of the cases, when anyone of worker is demotivated, then it has negative
impact over other employees who work with them (Pelit, Öztürk and Arslantürk, 2011). It is
essential for the management to make sure that all workers are motivated and performance of
one any may not negatively affect the business. There are many laws that are made by
government to protect the interest of employees and when these are not satisfied, then workers
get demotivated. It is important that management do not discriminate others at any way. There
are different aspects that are considered by employees. It is essential for management to make
sure that these aspects are determined. These are helpful enough to make sure that they will be
able to satisfy the requirements. Effective interaction can be determined as an important aspect
that makes the management to know the issues and problems that are faced by them. According
steps are taken with the help of which problems are resolved.
At hospitality sector, main aim of customers is to get high quality services. There are
many organizations that deliver their customers with similar products and services. To be
2

different from others, it includes strategies to gain competitive advantages. According to
Grigoroudis, Tsitsiridi and Zopounidis, (2013) when employees are demotivated, then it affects
the growth of organization in negative manner. When organization identify any type of issue,
then they develop plan and for these plan it is essential to have proper support from workers.
There are different reasons due to which workers get demotivated. In this context, it includes
lack of proper training, work load, lack of understanding towards roles and responsibilities,
ineffective working environment, etc. When there is no proper training provided, then workers
get demotivated as they interest over work is lost and they fail to understand the type of services
that has to be provided to customers. Further, healthy working environment enables the workers
to share their issues and problem to each other. When there are conflicts and improper
communication, then it becomes difficult to work and this way workers get demotivated.
Similarly, business get negatively affected when customers are not satisfied and employees are
not provided with adequate services. Training and development provided by organization enables
to clarify all the doubts that one has over the roles and responsibilities that has to be played by
them. It makes them to deliver their services effectively and in making them perform effectively
and efficiently.
There are different type of strategies that are implemented by organizations through
which motivated level can be raised. Namasivayam, Guchait and Lei, (2014) stated that
motivational theories covers all the essential areas that make them boosted up. With this respect,
it includes theories like Maslow's hierarchy of needs, Theory X and Theory Y, etc. As per
Evanschitzky, Sharma and Prykop, (2012) interaction by superiors with subordinates should be
effective as it helps in developing strong relationship with them. This way employees share their
issues or problems that are faced by them and accordingly steps can be taken to overcome them.
Further, providing rewards to employees is another set of effective step that helps to raise the
interest and willingness towards work. On the other hand, when employees are motivated, then it
becomes easy for workers to understand their customers and provide them services accordingly.
In addition to this, it can be stated that at great extent employees motivation enable to satisfy
customers but there are different aspects like innovation, pricing strategies, etc. (Malthouse,
Haenlein and Zhang, 2013). These are considered by customers and when they do not get which
was expected, then the level of satisfaction reduces.
3

4

Chapter 3: Research Methodology
This is an essential part in research as it enables the researcher to present the
investigation in an effective manner. It covers different areas that present the finding effectively
and efficiently. In this context, below given are the elements that covered in research
methodology:
Research Philosophy: This can be determined as a paradigm that can be determined as a
base for investigation and it is helpful to conduct the investigation in an appropriate manner
(Mackey and Gass, 2015). More specifically, it is help to understand the concept of motivation
and customers satisfaction. Further, all the different strategies that can be implemented to raise
motivation level of workers. In addition to this, it will also help to raise the satisfaction level of
customers.
Research approach: These are of two type, that is deductive and inductive. These
approach help to reach out the research objectives and aim effectively and efficiently. In the
current study, researcher will make use of deductive approach. As per this approach, investigator
has achieved the objectives starting from general to specific. It has helped in analysing the
expectations of customers and delivering them services to raise satisfaction level.
Research design: There are different type of research designs that can be applied by
research. In this context, the current research will have made use of descriptive design
(Blumberg, Cooper and Schindler, 2014). This is a type of design that focuses on different type
of studies and literatures that are helpful to relate with objectives. This way appropriate outcome
can be determined for the research aim and objectives.
Research strategy: These are of two type, which are qualitative and quantitative.
Qualitative strategies are helpful determine different theories that are help to make employees
motivated. This type of strategies is implemented in the current research as the outcomes that the
research is willing to list out can be steps that can be taken by cited firm to achieve their desired
goals.
Data collection: In order to collect the formation for current research, investigator has
made use of both primary and secondary data (Billig and Waterman, 2014). In order to collect
primary data, investigator will make use of questionnaire in which all the questions are covered
that will help in achieving the research objectives. On the other hand, secondary research will be
conducted with the help of books, journals, internet source, etc.
5

Sampling: This is a type of method to make proper distribution of data. It is not possible
to make analysis of the information and data that is gathered in an systematic manner. With this
respect, random sampling method will be applied and this way the data will be divided and
appropriate outcome will be presented. In order to conduct the research, the sample size will be
taken 20 workers.
Data analysis: In order to make proper analysis of information that is collected by the
researcher. Investigator will make use of thematics (Cammarota and Fine, 2010). This is an
effective type of strategy that helps in making proper evaluation of each of the response that they
have gathered from the questionnaire distributed to employees.
6

Chapter 4: Data Analysis
Theme 1: Satisfied with the salary that is provided for the type of post you are in
Are you satisfied with the salary that is provided for the type of post you are
in?
Frequency
Highly satisfied 1
Satisfied 2
Neutral 3
Dissatisfied 9
Highly dissatisfied 5
Description: As per the findings, it can be stated that there are about 9 of employees who
are not satisfied with the salary that is provided to them. Further, there are 5 of workers who are
highly dissatisfied with the salary that is given to them. On the other hand, there are about 3 of
the workers who think that the salary that is given for the post at Red Carnation Hotel are
satisfying. In addition to this, there are 3 of workers who are not satisfied not dissatisfied with
the salary provided.
7
1
2
3
9
5
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

Theme 2: Satisfied with the benefits that are provided to you by Red Carnation Hotel
Are you satisfied with the benefits that are provided to you by Red Carnation
Hotel?
Frequency
Highly satisfied 6
Satisfied 3
Neutral 4
Dissatisfied 5
Highly dissatisfied 2
Description: In accordance with the finding, it has been found that there are about 6 of
the workers which are highly satisfied with the services that are provided by the organization.
Further, there are 3 of them who are satisfied. Moreover, there are 4 workers who are nor
satisfied and nor dissatisfied. In this context, over all it can be stated that workers are totally
satisfied with the benefits that are provided by the organization. On the other hand, there are 2
employees are highly dissatisfied and 5 of among 20 who are dissatisfied.
8
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
0
1
2
3
4
5
6
7
6
3
4
5
2
Frequency

Theme 3: Proper understanding between you and managers
Is there proper understanding between you and managers? Frequency
Yes 13
No 7
Description: As per the analysis made, it can be stated that there is no proper
understanding with managers. It is essential for the management to have effective interaction so
that they will be able to understand the issues that are faced by workers and accordingly steps
can be taken that will help them to motivate them. On the other hand, there are 7 out of 20 who
think that there is strong understanding among managers and workers.
Theme 4: Conflicts among employees within Red Carnation Hotel
Is there conflicts among employees within Red Carnation Hotel? Frequency
Yes 12
No 8
9
Yes No
0
2
4
6
8
10
12
14 13
7
Frequency