Literature Review: Employee Training and Customer Satisfaction in F&B

This literature review investigates the relationship between employee training and customer satisfaction, particularly within the global food and beverage industry. It begins by establishing the importance of customer satisfaction for business success and sustainability, especially in competitive markets. The review then delves into the role of employee training in enhancing service delivery skills and overall workforce productivity. Various theoretical frameworks, including the Instructional System Design (ISD) Model and the Transitional Model of Employee Training, are discussed. The review also explores the significance of customer satisfaction, defining it as the extent to which goods and services meet or exceed customer expectations. The SERVQUAL model is highlighted as a key tool for measuring customer satisfaction. Finally, the review synthesizes the existing literature to examine the direct link between well-trained employees and increased customer satisfaction in the food and beverage sector, emphasizing the need for skilled labor and continuous development in this rapidly evolving industry. Desklib provides access to similar assignments and resources for students.

Running Head: LITERATURE REVIEW 1
Literature Review
Student’s Name
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Date of Submission

LITERATURE REVIEW 2
Contents
1. INTRODUCTION.............................................................................................................................3
1.1. Background................................................................................................................................3
1.2. Thesis Statement........................................................................................................................3
1.3. Problem Identification...............................................................................................................4
2. LITERATURE REVIEW.................................................................................................................4
2.1. Independent Variable (Employee Training)............................................................................5
2.1.1. Food and Beverage Sector.................................................................................................6
2.1.2. Theoretical Framework.....................................................................................................7
2.1.3. Transitional Model of Employee Training.......................................................................9
2.2. Customer Satisfaction..........................................................................................................10
2.2.1. The significance of Customer Satisfaction.....................................................................11
2.2.2. Customer satisfaction in food and beverage industry...................................................11
2.3. The SERVQUAL Model of Customer Satisfaction...............................................................13
2.4. The relationship between employee training and customer satisfaction in food and
beverage service...................................................................................................................................14
3. CONCLUSION................................................................................................................................15
4. REFERENCE..................................................................................................................................17

LITERATURE REVIEW 3
1. INTRODUCTION
1.1. Background
With the continued development of a global economy that is more integrated and inclusive
(especially in the period of post Globalization), commercial and industrial scenarios in the global
framework have been experiencing considerable dynamics. They have also been experiencing
modifications so as to cater to the needs of customers globally. Newer industries and cognitions
have also been cropping up with more demands for supply-side players getting involved in such
industries. The continuous entry of new supply-side players in these industries has been
contributing positively to the increase in the competition among the firms. This in tum
encourages the firms in these industries to develop their operational framework and implement
different methods and strategies in order to keep an edge over their competitor. In the same way,
they capture a larger share of clientele which in tum, helps in ensuring profitability and long-
term sustainability of the companies. Having introduced the topic of study in such a manner, this
activity will also distinguish the determinants of success, profitability, and long-term
sustainability of the business organizations through several theories of discussion. The same
theories will then be used to determine how the training of workers leads to customer
satisfaction.
1.2. Thesis Statement
The primary determinant of success, profitability, and long-term sustainability of business
organizations is the level of customer satisfaction for the services or commodities provided.
Such, in tum, is an extremely crucial indicator for measuring the wellbeing of the company
because the prospects of the companies depend hugely on their goodwill. The circumstance

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discussed herein mostly holds for beverage and food industries. There are several supplier side
players in the food and beverages industry which, therefore, explains why there is an increased
number of options for the customers to choose from. There are different ways through which
companies in these industries bring in modifications in their operational framework to increase
the satisfaction of the customers. In such a case, one of the primary ways (and of which shall
form the basis of this discussion) is the provision of appropriate training to their employees.
1.3. Problem Identification
There are several literary pieces of evidence regarding the need for employee training in the
contemporary commercial organizations. The same pieces of evidence are on the aspects of
customer satisfaction as one of the primary determinants of profitability and sustainability of the
business organizations. However, not much work has been done regarding the linkage factors.
Simply put, not much emphasis is provided on the effects of training of employees to realize
customer satisfaction (especially in the food and beverage industry). Such is why this activity’s
literature review section will try to conduct an extensive literature review. Also, the activity will
provide the objective of studying the above-mentioned linkage. In this case, the perspective of
discussion will focus on the global food and beverage industry while exploring the theoretical
and empirical aspects.
2. LITERATURE REVIEW
This section of the report tires to study the literary evidence present in the contemporary period
regarding the two above-discussed variables - the employee training and the aspects of customer
satisfaction. However, special emphasis is put on food and beverage industry within the global

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framework. The review incorporates extensive theoretical as well as an empirical exploration of
each of these variables individually.
2.1. Independent Variable (Employee Training)
Cascio (2018), (in his elaborate work on the management of human resources) describes the
different employee related operational activities. Such is the same operational activities that
companies undertake. Cascio (2018) also discusses the requirements for the same. According to
the author, (over the years), the need of managing the resources of the companies efficiently has
been felt. This has become extremely crucial specifically for the purpose of creating scopes of
profitability and future prospects for the companies (in the contemporary competitive global
business framework) (Hassan et al., 2014). Management of resources, as per the assertions of
the author, primarily includes development and management of an efficient human resource base
in the companies themselves. Such is because the productivity and efficiency of the human
resources form one of an integral part of the operational framework of the companies on which
the profitability, as well as the future prospects of the same, depends considerably.
The argument put forward by Cascio (2018) regarding the need for management of human
resources is supported by several other literary pieces of evidence. For instance, Jehanzeb and
Bashir (2013), argue that the level of global competitions for industrial and service sectors
requires companies to manage and develop their human resources. Such should be done in a way
that enables such companies to contribute to making a competitive edge. In such a way,
companies are able to compete evenly for customers and also enhance satisfaction. One of the
primary strategies which the commercial organizations can implement in this aspect is training
programs for their employees. Such would ensure that workers improve their service delivery

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skills which in tum, would benefit the employees, clients, and employers. According to Elnaga &
Imran (2013), as businesses become more integrated (and their scope expanding with time), the
needs for continuous development of the skills of the employees becomes an absolute necessity
both for the betterment of the employees. In this aspect, Seeney & Martindale (2012), provide
their own definition of "employee training.' According to them, employee training involves the
provision of programs (both voluntary and involuntary), which are often implemented by the
companies. Such programs are for the purpose of developing the existing skills of the employees
or to incorporate new skills. In this case, workers are able to understand their roles better (while
at work). The involuntary training programs make it mandatory for the employees to attend
while the voluntary ones give them the chance to choose to attend or not to attend the same.
Singh and Mohanty (2012), puts forward the bilateral benefits of training of employees in the
contemporary business organizations. According to them, better trained and updated employees
lead to the development of a skilled, efficient and highly productive workforce. Such workers are
able to understand their jobs better and bring out more than what is expected of them. The
workers, thus, have an increased overall productivity and cost efficiency which makes them earn
the trust of their clientele. On the other hand, the development of skills of the employees also
helps them in individual levels. They are thus, able to take up higher job roles and contribute
positively to the development of their long-term career.
2.1.1. Food and Beverage Sector
In this context the training and skill development of the employees particularly for the companies
venturing in global food and beverage, the same impacts are vivid. According to Odunlami &
Matthex (2014), the global food and beverage industry has been consistently growing thereby
leading to changes in demands of the customers worldwide. The industry has experienced

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modernizations in the aspects of innovations and application of new cost-effective. The
percentage for the same is about 55%. Such numbers represent enterprises globally incorporating
innovations in their productions and sales. With the globalization of these sectors and
continually increasing usage of internet, e-trading is also becoming one of the primary
components of changes in this sector. Together, an explanation towards the rapid dynamics and
expansion of the concerned industry in the global framework is obtained.
According to Turi, Goncalves, and Mocan (2014), one of the primary hurdles in the expansion
and future profitability of the food and beverage sector is the presence of insufficient labor force
and the absence of highly skilled workers. According to the authors, the demand for a skilled
employee is considerably high in this industry. Such is accompanied with the increasing
implementation of innovative technologies. As per their arguments, the primary skills, which the
employees in the food and beverage sector lack primarily include; the foreign language skills
higher professionalism organizations and also the learning of the usage of innovative
technologies for higher and better production.
2.1.2. Theoretical Framework
There exist several theoretical models regarding the procedures of employee training in the
commercial organizations, the primary ones being discussed as follows:
a) Instructional System Design Model
Kraiger (2014), (in his works) highlights the ISD Model as one of the primary models used for
the purpose of designing employee training that in turn increases their overall performances. The
model deals with the determination of the aspects of training, namely- who, when, v. here why,
what and how. The steps incorporated in the model are as follows:

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As per the model, for appropriate training of employees they need to:
• Analyze the need for the training for their employees
• Plan the goals they want to achieve and select the strategies for imparting training
accordingly
• Develop the training tools and materials accordingly
• Execute the training programs accordingly
• Evaluate whether the goals set had been reached by the training programs by evaluating the
performance of the employee's sentences

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2.1.3. Transitional Model of Employee Training
Another extensive and more inclusive model for employee training that can be implemented
across the world is the transitional model. According to Liu et al. (2012), the missions of
companies to ensure absolute success is to ensure that employers are skilled enough to ensure
productivity. Schedules of employee training should encompass several procedures shown in the
model below. The illustrated model is very clear. From the same, we can perceive that the
missions, visions, and values of companies determine the manner in which employees operate to
ensure productivity (through customer satisfaction). Such organizational values also determine
the objectives for training employees alongside the implementation and evaluation of training
programs. Since a company will always need to increase the number of clients to ensure
profitability, keeping the customers satisfied is thus, the sole objective of such a firm.

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2.2. Customer Satisfaction
The term “customer satisfaction” has been defined in different perspectives by various scholars.
From a commercial point of view, Saeidi et al (2015) define customer satisfaction as the
measurement of ways in which the utility of goods and services meet or surpasses the needs and
wants of customers. As mentioned before, continued development of a global economy and a
global industrial framework, there are considerable dynamics to customer satisfaction
experienced. Companies are modifying their operations to ensure that they cater to the needs of
customers globally. Also, new industries and cognitions have also been cropping up with more

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demands for supply-side players getting involved in such industries. Such a case encourages the
firms in these industries to develop their operational framework and implement different
methods and strategies. In these way, companies are able to keep an edge over their competitor.
2.2.1. The significance of Customer Satisfaction
There are several reasons that have been outlaid as factors of significance regarding customer
satisfaction. Such factors include:
1. Increase in the customer satisfaction from consumption of goods or services of any
company leads to the creation of a higher goodwill of the company. Much of such
goodwill is spread by the word of mouth of a happy and satisfied customer (Tu, Wang &
Chang, 2012). On the contrary, lack of customer satisfaction leads to the creation of a
negative customer feedback, which in turn affects the long-term profitability and
sustainability of the company. Considerably, because in general, the number of options in
the hands of customers is much high in almost the entire industries, companies have to be
careful (Tu, Wang & Chang, 2012).
2. According to Khan (2012), customer satisfaction is considered important in the
contemporary period as given the huge number of supply-side providers in each of the
industries. Given this scenario, it becomes easier for the contemporary commercial
companies to retain their existing customers than acquiring newer clientele thereby
making customer satisfaction a key unit of concern in a contemporary commercial
scenario.
2.2.2. Customer satisfaction in food and beverage industry

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As per the arguments put forward by Wu, Huang & Chou (2014), customer satisfaction is even
more crucial in the food and beverage industry across the world. The authors put forward several
assertions in the support of the same} which can be explained as:
1. The food and beverage industry is the industry producing and supplying raw as well as
processed foods and alcoholic and non-alcoholic beverages, constitutes a crucial part of
the daily commodity bundles of the customers. A significant share of the daily expense of
the global population goes in buying these commodities thereby creating considerable
scopes of revenue generation for the companies venturing into the supply side of these
industries.
2. The initial fixed cost of production in this industry is lesser compared to many other
industries. Also, the global exposure of the food and beverage companies across the odd
is higher than many other sectors making the level of competition among the firms in this
particular sector to be considerably high. On the other hand, the demand for foods and
beverages for each individual is not unlimited and with the increase in income the pattern
of consumption of the individuals keeps on changing. Such factors (together) make it
even more competitive for the companies venturing into this sector. In tum, customer
satisfaction is made more important for the companies because a lot of the profitability,
sustainability as well as a global share of clientele depend on how satisfied the customers
are with their products.
3. Brownell (2012), in. this context puts forward the notion of healthy eating and organic
production in the food and beverage industry. According to the author, in the recent
periods with the negative effects of junk foods and beverages on the global health and
obesity conditions coming up more and more customers are opting to shift towards