A Final Project Report

On
“IMPACT OF MANAGEMENT STYLES AND EMPLOYEE BEHAVIOUR ON
CUSTOMER SATISFACTION”

Submitted to
PUNJAB TECHNICAL UNIVERSITY
JALANDHAR

In partial fulfillment of the requirement for the

Award of degree of
Master of Business Administration (MBA)

Submitted by Project Guide

Harminder Kaur Ms. Shaveta Gupta
Roll No. 2016 ( Lecturer in
Gurkanwal Kaur Management )
Roll No. 2014
MBA-II ( B )

Session ( 2008 – 2010 )

APEEJAY INSTITUTE OF MANAGEMENT
JALANDHAR
 CERTIFICATE

This is to certify that the project entitled “ IMPACT OF MANAGEMENT STYLES

AND EMPLOYEE BEHAVIOUR ON CUSTOMER SATISFACTION” submitted by
Harminder and Gurkanwal kaur is a bonafide piece of work conducted under my
direct supervision and guidance. No part of this work has been submitted by any other
degree of any other university. The data sources have been duly acknowledged. It may be
considered for evaluation in partial fulfillment of the requirement for the award of degree
of Master Business Administration.

Dated: Project Guide:

Ms. Shaveta Gupta
(Lecturer in Management)
 PREFACE

A person learns to understand business from a realistic angle. With the help of a project
an individual show the practices of business. As MBA course requires equal attention
towards practical as well as theoretical aspects of business, various problems are to be
dealt with in that course .That’s why research programs are there to give deep as well as
thorough knowledge of subjects and problems which are practical whenever one entered
in the profession. Research programs are included in the curriculum of various
management courses so as to provide students with practical knowledge and exposure to
professional life. We have done our project on the topic “Effectiveness of Global
Advertisement On Indian Culture”. A sincere effort has been made to bring about clear
facts and we hope that this report meets the given expectations and various requirements
of the research.
 ACKNOWLEDGEMENT

As the professional courses not only require the theoretical knowledge but the practical
knowledge too, that is why university started conducting training programs for the
students, so that they can get the ample view of practical problems. First of all we would
like to thank the supreme power, the almighty god, who is the one who has always guided
me to work on the right path of my life. We are very thankful to APEEJAY Institute of
Management, Jalandhar City who gave an opportunity to work on this project i.e.
“IMPACT OF MANAGEMENT STYLES AND EMPLOYEE BEHAVIOUR ON
CUSTOMER SATISFACTION.”
We express our sincere thanks Ms. Shaveta Gupta & members of Management
department, for the valuable suggestion and making this project a real successful.

We are very thankful to college librarian who provides me useful books to complete the
project, and also very thankful to my friends and family members who supported and
encouraged me all the time to go through this whole project. We are also thankful to the
respondents who helped us to complete this project.

Dated:
 TABLE OF CONTENTS

Certificate (i)
Preface (ii)
Acknowledgement (iii)

S
CHAPTER NO. CHAPTER TITLE PAGE NO.

1. Introduction
Introduction

2. Review Of Literature

3. Need, Scope & Objectives Of The Study

4. Research Methodology
Limitation

5. Data Analysis & Interpretation

6. Findings Of The Study

7. Conclusion & Recommendation

References

Annexure
A. Questionnaire
B. Datasheet
 CHAPTER-1

INTRODUCTION
1.1 INTRODUCTION TO MANAGEMENT STYLES

.Management Styles are concepts and theories that influence the general work
environment of an organization. Different management styles can vary a little bit with a
change in leadership, however, the crux of the style mostly remains the same.
Through the years, economists and business gurus have fostered and developed several
management styles, each surfacing from a different school of thought. However, they all
have the same bottom line, that is profit! Be it Maslow, Mayo or Drucker. They may
follow different routes but all are headed to the same destination, good business!
Different "styles" are also propounded with reference to the leadership style that a
manager follows. Styles of management have seen an evolution of sorts due to the
dynamism of the corporate world as an entity. Let us learn about the different
management styles that the corporate world has seen, with the help of this leadership and
management styles list.

1.1.1 Democratic Management style

In this management style, the management allows the employees to voice their opinions.
Most company policies and decisions are made, taking into consideration employee
opinions. It is also known as participative style. This means that a meeting is held with
representatives from each hierarchical level, in order to take a decision about the smallest
company policies, as well as the major ones. Such a manager will prefer to have an open-
door policy in the organization to ensure that the management and the employees
communicate openly and freely with each other. "Confidentiality" is not of much
substance to such a manager.
Enterprise uses democratic decision-taking in many parts of the business. Everyone has
the opportunity to contribute ideas to the decision. There are two types of democratic
decision-making:
1. Persuasive democratic management – here the leader makes the decision first and then
persuades employees that he or she has made the right decision
2. Consultative democratic management – this involves the group contributing to the
decision making process, with the leader making the final decision.
The team is central to delivering good customer service. The consultative approach helps
Enterprise achieve this business objective.

The leader's modus operandi: Forges consensus through participation

The style in a phrase:
Underlying emotional
intelligence competencies:
When the style works best:
Overall impact on climate:
“What do you think?”
Collaboration, team leadership,
communication
To build buy-in or consensus, or to get input
from valuable employees
Positive

1.1.2 Laissez-faire Management style

Derived from the French meaning ‘leave alone’, this is a loose leadership style. It allows
employees to carry out activities freely within broad limits. It differs from the democratic
style in that individuals are able to behave independently and make their own decisions,
rather than coming together on an agreed course of action.
Small entrepreneurial teams manage and lead local Enterprise offices. These teams are
decentralized and make many decisions on their own. This shows a type of laissez-faire
structure. However, this management style has drawbacks. Some employees might not be
able to motivate themselves or make the right decisions alone. Therefore individuals
within Enterprise teams work to corporate guidelines for dealing with customers. Staff
also receives regular training and feedback. Employees in a local branch have a sense of
ownership for many of their activities. At the same time, they have the support and career
structure of a large multinational company.
1.1.3 Autocratic (Theory X) Management Style

Theory X manager believes that people are inherently lazy, need to be told what to do
and will work only when pushed. They use techniques commonly known as the
"stick" (Hard X) to punish or threaten employees. Or, they may use the "carrot"
technique (Soft X), by promising some reward for compliance with the manager's
directives. In this style the complete authority is in one person's hand and no one
else can question it. It is also known as totalitarianism or dictatorship. It does
forge an atmosphere of discipline in the organization. However, it can at times
cause dissatisfaction and a lack of "creative space" for the employees. For such a
manager, the employees are just a replaceable resource and not the core of the
organization. The manager believes in top-down communication, wherein orders
are given by the higher hierarchical level to the lower ones. The concept of
"employee satisfaction" does not hold importance for such a manager.

The leader's modus operandi: Demands immediate compliance

The style in a phrase:
Underlying emotional
intelligence competencies:
When the style works best:
Overall impact on climate:
“Do what I tell you”
Drive to achieve, initiate, self-control
In a crisis, to kick start a turnaround, or with
problem employees
Negative

1.1.4 Authoritative Management Style:

In this style, the authority is in the hand of one individual. However, that one individual
cares more about the employees than outcomes and profits. That means the the
manager will be more like a parent rather than a boss. In this kind of a
management style also, the complete authority lies in the hands of one individual,
however the method of functioning is very different as compared to Autocratic. In
such a management style, the employees are the heart of the organization.
 "Employee satisfaction" holds higher priority than profits. This kind of a manager
believes in top-down as well as bottom-up communication.

The leader's modus operandi: Mobilizes people toward a vision.

The style in a phrase:
Underlying emotional
intelligence competencies:
When the style works best:
Overall impact on climate:
“Come with me”
Self-confidence, empathy, change catalyst
When changes require a new vision or a clear
direction is needed
Most strongly positive

1.1.5 Management by Objectives

This is one of the recent management styles and in today's diverse market, it is very
useful. It was popularized by Peter Drucker in 1954. The objective of Management by
Objectives is "to create empowered employees who have clarity of the roles and
responsibilities expected from them, understand their objectives to be achieved and thus
help in the achievement of organizational as well as personal goals." It has the following
advantages.

1. Motivation: Participative environment that included employees in goal setting,

etc., led the employees to being more motivated to come to work and increase the
output.
2. Better Communication and coordination: This method has made general
communication and coordination much easier and smoother. Regular reviews,
feed backs and a general open door policy help create an amicable environment in
the organization.
3. Clarity of Goals: With MBO, the objectives are "SMART":
o S - Specific
o M - Measurable
o A - Achievable
 o R - Relevant
o T - Time bound

This makes them very clear-cut. It also forges a link between the company as well as the
individual personal goals. However, MBO has a few limitations. It concentrates on goals
more than outcome. More so, it fails to state the context in which the goals are set.
Appraisals are based on "what an employee should be" not "what an employee should
do" and a few other organization-specific limitations. However, principles of this
management style are kept in mind for a general management benefit.

1.2 INTRODUCTION TO EMPLOYEE BEHAVIOUR

Decades of thought have gone into research aimed at understanding why people behave
the way they do. In business, this information takes on greater relevance as we endeavour
to understand what’s going on in our employees’ minds. Seeking to understand what lies
behind behaviour including our own –helps us tailor a motivation strategy to each
individual, taking into account their specific and unique drivers.

What’s true for all of us is that we each have a reason for behaving the way we do. Our
reasons may be unknown – even to us – but they are powerful drivers of behavior. Our
unique set of life experiences forms the basis of these reasons. In this paper we’ll explore
a simple model for understanding behaviour, and its application in the workplace.

The last 50 years have seen an explosion in studies on understanding human motivation.
There are many useful models, but the one we are focusing on in this paper is known
simply as the Iceberg Model. One of the key facts about icebergs is that there is a small
portion that you can see which lies above the waterline. The remainder of the iceberg is
unknown – it’s size, composition and shape lies underneath the water – not easily seen or
understood.
1.2.1 THE ICEBERG MODEL FOR UNDERSTANDING OF EMPLOYEE
BEHAVIOUR

The Iceberg concept – where only partial information is readily available and knowable
has been applied to many ideas – understanding culture, customer service and so on. In
the context of this paper, we apply it to understanding employee behaviour.The American
Government wanted to understand why when two people had the same kind of
background, training and experience – they could perform to such different levels. They
engaged Harvard to answer this question, the result of which was the Iceberg model.

Skills
Expertise a person has, or what they can do. Skills can be technical, interpersonal or
management related (e.g. – driving forklift, using Excel etc).

Knowledge
Information a person has in a certain area. Knowledge may relate to certain industries,
functional areas or technical areas (e.g. – Finance knowledge, computing knowledge etc).

Values
Values describe what’s most important to us. Common examples of values include
honesty, family, work life balance, integrity and so on. Of course we don’t all have the
same values, and they can change over time (the things that are important to me when
I’m 18 are likely to be different when I’m 40).
Self Image
How I see myself; my sense of identity. One of the strongest drivers of my behaviour,
how I see myself is all wrapped up in my self esteem. Perhaps one of the simplest ways
to illustrate the power of self image is by way of an example. Imagine I see myself as a
leader. I may not have any formal positions of leadership, but I see myself that way. In
the workplace that may lead me to:
1. Volunteer for projects
2. Use my initiative wherever possible
3. Appear curious, confident or assertive
4. Take charge of problem solving or other activities, and so

Traits
A distinguishing personal feature part of your general disposition, and difficult to change.
You will recognize common traits like attention to detail, neat/orderly, perfectionist and
so on. Here we encounter things that are just “who we are”. Understanding our own traits
allows us to play to our strengths, rather than make career choices that require us to
struggle against our very nature.

Motives
These are what really drive us, underneath everything else. There are many theories of
basic human motivation – too many to repeat here. A few common motivators are:
1. A need to achieve and excel
2. A desire to find meaning or do meaningful work
3. A need for affiliation or genuine relationships
4. A desire for power or control
5. Financial circumstances can be powerful drivers at various times of our lives
1.3 INTRODUCTION TO CUSTOMER SATISFACTION

Satisfaction is a person’s feelings of pleasure or disappointment resulting from

comparing a product’s perceived performance (or outcome) in relation to his or her
expectations. If the performance falls short of the expectations, the customer is
dissatisfied. If the performance matches the expectations, the customer is satisfied. If the
performance exceeds expectations, the customer is highly satisfied or delighted.
Generally, there are two general conceptualizations of satisfaction, namely, transaction-
specific satisfaction and cumulative satisfaction. Transaction-specific satisfaction is a
customer’s evaluation of his or her experience and reactions to a particular service
encounter. Cumulative satisfaction refers to the customer’s overall evaluation of the
consumption experience to date.
A company would be wise to measure customer satisfaction regularly because one key to
customer retention is customer satisfaction. A highly satisfied customer generally stays
loyal longer, buys more as the company introduces new products and upgrades existing
products, talks favorably about the company and its products, pays less attention to
competing brands and is less sensitive to price, offers product or service ideas to the
company, and costs less to serve than new customers because transactions are routine.

When customers rate their satisfaction with an element of the company’s performance-
say, delivery. It could mean early delivery, on –time delivery, order completeness, and so
on. The company must also realize that two customers can report being “highly satisfied
“for different reasons. One may be easily satisfied most of the time and the other might
be hard to please but was pleased on this occasion.

A number of methods exist to measure customer satisfaction. Periodic surveys can track
customer satisfaction directly. Respondents can also be asked additional questions to
measure repurchase intention and the likelihood or willingness to recommend the
company and brand to others. Companies that do achieve high customer satisfaction
ratings make sure their target market knows it.For customer centered companies,
customer satisfaction is both a goal and a marketing tool. Although the customer-centered
firm seeks to create high customer satisfaction, that is not its ultimate goal. If the
company increases customer satisfaction by lowering its price or increasing its services,
the result may be lower profits. The company might be able to increase its profitability by
means other than increased satisfaction (by improving processes or investing more on R
& D). Also, the company has many stakeholders, including employees, dealers, suppliers
and stock holders. Spending more to increase customer satisfaction might divert funds
from increasing the satisfaction of other “partners”. Ultimately, the company must
operate on the philosophy that it is trying to deliver a high level of customer satisfaction
subject to delivering acceptable levels of satisfaction to the other stakeholders, given its
total resources.
Survey research:
Survey research is the systematic gathering of information from respondents for the
purpose of understanding and/or predicting some aspects of the population of interest. It
is the most common method of collecting primary data for marketing decisions. Survey
can provide data on attitude, feelings, beliefs, past and intended behavior, knowledge,
ownership, personal characteristics and other descriptive items. Survey research is
concerned with administration of questionnaire (interviewing). The survey research must
be concerned with sampling, questionnaire design, questionnaire administration and data
analysis. The administration of questionnaire to an individual or group of individuals is
called an interview.

1.4 IMPACT OF EMPLOYEE BEHAVIOUR ON CUSTOMER SATISFACTION

Customer satisfaction is vital to the success of any business. In a recent article in The
McKinsey Quarterly Marc Beau jean, Jonathan Davidson and Stacey Madge point out the
proven fact that the costs of retaining current customers is much lower than the costs of
acquiring new ones. In order to reveal the mystery of how to keep customers satisfied we
must also be knowledgeable about the drivers of our employees' behavior. Because as
Guy Herrington and Wendy Lomax point out in an article describing the results of their
study on employee and customer satisfaction, the two are intimately related. According to
their research and the research of many others, there is a direct relationship between
employee job satisfaction and a customer's repurchase intention.

Employees in service jobs often interact with customers. For the employees who have
regular contact with customers, employee satisfaction is related to positive customer
outcomes. The evidence indicates that satisfied employees increase customer satisfaction
and loyalty. In service organizations, customer retention and defection are highly
dependent on how frontline employees deal with customers. Satisfied employees are
more likely to be friendly, upbeat, and responsive- which customers appreciate. And
because satisfied employees are less prone to turnover, customers are more likely to
encounter familiar faces and receive experienced service. These qualities build customer
satisfaction and loyalty. In addition, the relationship seems to apply in reverse:
Dissatisfied customers can increase an employee’s job dissatisfaction. Employees who
have regular contract with customers report that rude, thoughtless, or unreasonably
demanding customers adversely affect the employees’ job satisfaction.

A number of companies are acting on this evidence. Service-oriented businesses such as

FedEx, Southwest Airlines, Four Seasons Hotels, American Express, and Office Depot
obsess about pleasing their customers. Toward that end, they also focus on building
employee satisfaction- recognizing that employee satisfaction will go a long way toward
contributing to their goal of having happy customers. These firms seek to hire upbeat and
friendly employees, they provide positive employee work climates, and they regularly
track employee satisfaction through attitude surveys.
Employee and customer satisfaction are interrelated and that their behaviors affect each
other and the financial performance of the organization. The root causes, also known as
drivers, of employee behavior influence overall employee satisfaction and employee
willingness to recommend their place of employment to friends or family looking for
work. The root causes of these two variables (employee satisfaction and willingness to
recommend), in turn, influence overall customer satisfaction and the customer's intent to
return to the business. The root causes of customer satisfaction and intent to return
ultimately drive financial performance. A diagram is provided below to illustrate this
interrelatedness and facilitate conceptualization of it.

Employee-customer links in the ECSI model

Among the large number of currently available approaches for studying customer
satisfaction, a very promising one appears in the Swedish barometer in 1989 (Fornell,
1992). It was followed, in 1994, by the start-up of the American customer satisfaction
index (Fornell et al., 1996) and more recently with the preparation of the European
customer satisfaction index (ECSI) (ECSI Technical Committee, 1998). This approach
computes a customer satisfaction index using an econometric model that, in terms of a
causal relationship, ties a set of latent variables (like customer expectations and customer
perceptions of quality and value) to a customer satisfaction index. The model then ties
this index to customer loyalty and other performance indicators.

Perceived employee satisfaction

This variable represents the way customers perceive employees’ satisfaction. This
satisfaction represents feelings of the employee about the job, defined as the overall
evaluation of working for the company. Supposing that customer perceptions are not
excessively wrong, then one can admit that these perceptions have a positive impact on
customer satisfaction and loyalty. This impact is supposed to act indirectly through the
impact on perceived quality (particularly on the service component).

Perceived employee loyalty

This variable represents the way customers perceive employee loyalty. This loyalty
means the employee’s intention to remain with the company and willingness to
recommend the company as a good place to work. We have admitted a possible direct
impact from perceived employee loyalty on customer loyalty. This impact may
exist,mainly in companies where there is personal contact between customers and
employees. In fact, that employee loyalty may have a positive effect on customer loyalty,
which, in turn, is a key determinant of profitability in companies (Reichheld and Sasser,
1990). As Syrett (1997, p. 49) points out Staff loyalty is not a new business concern.
What makes the current debate different is that in the age of stakeholder management and
total quality management, companies have started to make links between the loyalty of
their staff and the corresponding loyalty of their customers and investors.

Perceived employee commitment

This variable represents the way customers perceive employee commitment. It is well
known that business success requires more than just satisfied and loyal employees.
Instead, it demands the kind of employees who are willing to serve as advocates for the
organization, i.e. committed employees. So, employee commitment represents employee
dedication to help the company to achieve its goals. It includes manifests like dedication
to doing work of high quality, commitment to resolving customers’ problems, the
investment of adequate time and effort in the work and the will to recommend the
company’s products and services.
Also, customers’ perceptions about employee loyalty and commitment may be, in some
companies, quite different. In fact, while perceived employee commitment will have its
main influence on perceived quality (product and service), in the case of perceived
employee loyalty this effect is not expected, but rather a possible direct impact on
customer loyalty. For this reason, the proposed model includes perceived employee
loyalty and perceived employee commitment as two different latent variables, and
considers direct impacts from perceived employee commitment on perceived product
quality and perceived service quality.

.
1.5 EFFECT OF MANAGEMENT STYLES ON CUSTOMER
BEHAVIOUR

In today’s fast-paced and increasingly competitive market, the bottom line of a firm’s
marketing strategies and tactics is to make profits and contribute to the growth of the
company. Customer satisfaction, quality and retention are global issues that affect all
organizations, be it large or small, profit or non-profit, global or local. Many companies
are interested in studying, evaluating and implementing marketing strategies that aim at
improving customer retention and maximizing share of customers in view of the
beneficial effects on the financial performance for the firm.

This study is an attempt to uncover some missing links in the process of management
aimed at building positive work climate for superior employee performance and
satisfaction, critical for organizations’ success and growth. The study looks into the
relationships among variables such as style of management and employees’ work related
beliefs and values in shaping favorable organizational climate within the context of
family owned Indian manufacturing organizations of post-reform era. Clarity into the
process of climate building would provide adequate insights to the management towards
increasing employee productivity and satisfaction and thereby achieve better
organizational results. Further more, this understanding becomes very critical for Indian
corporate in the post-reform economy for crafting and implementing successful strategies
for organizational change and transformation.

Climate and performance

Climate in an organization evolves out of collective perceptions of employees on various
aspects of the organizational work life. It is shaped through their day-to-day experiences
while dealing with various facets of the organizational realities such as its goals and
objectives, policies and practices, leadership, structure, work design, technology adopted,
people, dominant modes of communication, motivational and reward mechanisms,
working conditions etc. It provides a dynamic interface for employees in the organization
in the form of psychologically meaningful and behaviorally pertinent perceptions, which
impel them to think, feel and act in consistently similar ways (Schneider, 1975).
Numerous studies have shown organizational climate as indisputably a major
contributing factor for changing employees’ attitudes and behavior towards superior job
performance and satisfaction. Several measured aspects of climate such as
communication flow, decision-making practices, relationship with colleagues, work
design and supervisory support have shown significant positive relationship with many
out come variables like organizations’ financial performance (Denison, 1990; Ryan,
Schmit & Johnson, 1996; Kangis & Williams, 2000) employees, productivity and
satisfaction (Schneider et al., 1998; Rogg, et al., 2001). Positive climate perceptions
enhanced the impact of HR practices on various aspects of organizational performance
(Ferris et al.,1998; Gelade, 2003).

Management styles, according to Litwin and Stringer (1968), share 50 to 70 percent of

variance of climate perceptions. Participative approach, in whatever forms it is put into
practice, has shown to enhance employee satisfaction, productivity and organizational
performance through positive climate perceptions (Spreitzer, Kizilos & Nason,1997;
Soonhee, 2002). Nevertheless, its effects are not direct. Strong mediating influences by
such factors as employees’ work related attitudes, beliefs and values could be inferred
(Daniels & Guppy, 1994; Cotton, 1995, Jerry & Robertson, 1998; Wood, 1999).
Studies in this area, however scanty and indirect, imply that climate perceptions
contribute to organizational performance, and are shaped by management actions
mediated by employees’ work related attitudes and values. There arises a stronger need to
unravel the complexities of these relationships in a systematic and empirical fashion. The
study is based on the premise that organizational climate perceptions contribute to
individual and organizational effectiveness. Positive climate perceptions would improve,
and negative climate perceptions would deteriorate individual and organization
effectiveness. One of the important functions of management towards enhancing
efficiency is to create conditions to cultivate favorable climate perceptions. The
management style, the way the organizational work is directed and coordinated would
play a critical role in shaping climate perceptions.
The cognitive schema the person adopts in selecting, organizing and interpreting the
experiences would influence the nature of impact of the management style on climate
perceptions. Beliefs and values that people hold concerning their work and organizational
life would provide such a schema to comprehend and deal with the experiences.

Hypotheses:
1. Perceived management style would not directly influence the way the organization’s
climate is perceived by its employees.
2. Employees’ work related beliefs and values would intervene to determine the nature of
relationship between perceived management styles and the way the organizations’
climate is perceived by its employees.

These hypotheses were tested using a structural equation modeling (SEM) technique
because of its power to accommodate and manipulate many variables simultaneously.
CHAPTER-2

REVIEW OF
LITERATURE
Various studies have been undertaken so as to study the area which has nowadays
become the major area of concern for every enterprise because this is the area which
actually determines the success of any firm i.e. customer satisfaction. But very few
studies have put forth light on the impact which management styles have on customer
satisfaction though employee behviour has been covered by some.

A research was undertaken by Gordon H.G. McDougall, Terrence Levesque(2000) to

put perceived value into an equation i.e. customer satisfaction with services. This
research investigated the relationship between three elements – core service quality,
relational service quality- and perceived value – and customer satisfaction and future
intentions across four services. The results revealed that core service quality (the
promise) and perceived value were the most important drivers of customer satisfaction
with relational service quality (the delivery) a significant but less important driver. A
direct link between customer satisfaction and future intentions was established. The
relative importance of the three drivers of satisfaction varied among services.
Specifically, the importance of core service quality and perceived value was reversed
depending on the service. A major conclusion was that both perceived value and service
quality dimensions should be incorporated into customer satisfaction models to provide a
more complete picture of the drivers of satisfaction.

A research was conducted by Kirk L. Rogg et al (2001) to study the relationship

between human resource practices, organizational climate and customer satisfaction. The
degree to which organizational climate mediates the relationship between human resource
practices and customer satisfaction is investigated for 351 small businesses in the same
industry. Results indicated support for the hypothesized mediated relationship. The
indirect effects of HR practices on customer satisfaction were significant and relatively
large while the direct effect was nonsignificant and near zero. The results were supportive
of a social context model of the impact of human resource practices on organizational
outcomes. Limitations of the study and implications for future research are discussed.
Early work by Martijn Hesselink , Ton Van der Wiele and Paul Boselie (2002)
studied how important the role of customer satisfaction is when it comes to
organizational transformation. The study was conducted in a large temporary
employment agency in the Netherlands, which wants to develop "experience quality" in
its services in Europe. This agency has introduced a service excellence programme
building on the following chain of excellence: good leadership gives enthusiastic and
motivated employees, which gives satisfied customers and delivers good business results.
Besides the paying customers, who are hiring flex workers, there is another customer
group, i.e. the flex workers (or contingent workers) themselves. the importance of flex
workers, who are satisfied with their intermediary is becoming more and more relevant as
the agency aims at long-term relationships with its flex workers. In the empirical part is
presented the analysis of data over three years (1998, 1999, and 2000) on the satisfaction
of flex workers in the context of the flex company’s service excellence programme, as an
example of the use of measurements in relation to the change process. The important
issues related to the specific data of the flex workers’ satisfaction surveys are:(a) the
relationships between perceived satisfaction of flex workers and possible behavioural
consequences, like making complaints and making use of other flex companies; (b) the
stability of factor constructs over time that identify the major dimensions of satisfaction
of flex workers; and (c) the satisfaction dynamics over time.

A research conducted by Sunil Mithas , Mayuram S. Krishnan and Claes Fornell

(2005) evaluated the effect of customer relationship management (CRM) on customer
knowledge and customer satisfaction. An analysis of archival data for a cross-section of
U.S. firms shows that the use of CRM applications is positively associated with improved
customer knowledge and improved customer satisfaction. This article also shows that
gains in customer knowledge are
enhanced when firms share their customer-related information with their supply chain
partners.
A research conducted by Rengasamy Elango and Vijaya Kumar Gudep (2006) focused
on the service quality and customer satisfaction among the private, public and foreign
banks in India. An analysis is carried out to examine the level of awareness among
customers and to identify the best sector which provides qualitative customer service. A
well-structured questionnaire is used to collect the views of respondents across the three
banking sectors. The survey instrument includes various dimensions, pertaining to the
quality of customer services in terms of banking personnel, convenient working hours,
Web-based services, error free value-added services and efficient grievance redressal
mechanism etc. Apart from the basic statistical tools such as measures of central
tendency, The authors also use `factor analysis' and the 'One-way ANOVA' classification.
The results indicate that the level of awareness among the customers improved
significantly during the study period. It is interesting to note that the results are consistent
with the previous studies conducted on customer service aspects, and it has been
observed that the foreign and the new generation private sector banks are serving the
customers better. This has larger implications on the public sector commercial banks in
India with respect to customer service delivery aspects. It is high time the public sector
commercial banks made efforts to revamp their approach towards customers, so as to
perform better and derive competitive advantage in the long run.

Additional work done by Anna Torres and Josep A. Tribo(2007) studied the interaction
between ownership structure, taken as a proxy for shareholders' commitment, and
customer satisfaction - the main driver of consumer loyalty - and their impact on a firm's
brand equity. The results show that customer satisfaction has a positive direct effect on
brand equity but an indirect negative one because of reductions in ownership
concentration. This latter effect emerges when managers are mainly customer-oriented.
Such result gives out a warning signal that highlights the perverse effect of implementing
policies, focused excessively on satisfying customers at the expense of shareholders, on a
firm's brand equity. The empirical analysis uses an incomplete panel data comprising 69
firms from 11 nations, for the period 2002-2005.
A research undertaken by Shannon W. Anderson, Scott Baggett and Sally K. Widener
(2007) put forth light on that during service operations failures, employee interactions
with customers are a critical service element in restoring customer satisfaction. However,
research in consumer psychology shows that customers seek reasons for service failures
and their attributions of blame moderate the effects of the failure on the level of customer
satisfaction. It was extended that on services operations failures by hypothesizing that
attributions of blame also affect what matters to the customer during service failures. It
was hypothesized that the relative weights that customers assign to the key elements of
the service in reaching an overall assessment of customer satisfaction are affected by
customer attributions of blame for service failures. The U.S. airline industry was used as
a quasi-experimental research setting to investigate the components of customer
satisfaction for three samples of customers who experience: 1) routine service, 2) flight
delays of external (i.e., weather) origin, and 3) flight delays of internal origin. Although
the level of customer satisfaction is lower for all service failures, it was found that the
key components of satisfaction differ between delayed and routine flights only when
customers blame the service provider for the failure. Specifically, when delays are of
external original, satisfaction is lower than for routine flights,. In contrast, when delays
are of internal origin, satisfaction is lower than for either routine flights or flights delayed
by external factors and employee interactions have a significantly diminished role in
customer satisfaction evaluations. The results highlight the important role of customer
attributions during service failures and present more nuanced evidence on the role of
employee-customer interactions in mitigating the effects of service failures on customer
satisfaction.

In a study conducted by A.K. Dasbiswas and Suranjan Das (2007) the roles of
perceived value of product and service in customer satisfaction have been investigated.
Competitive cost, customer focus, customer feedback and involvement, competent
employees, innovativeness, corporate social responsibilities, etc., are the key factors that
contribute to customer satisfaction in various contexts. Some studies have been done on
the role of Order Management Cycle (OMC) along with product portfolio on CS. There
has been little investigation done about the role of OMC in CS, in isolation, that too in
the Indian context.. Using the data from one engineering company, this research aimed
to: (1) provide insights on the role of system and process (OMC-SP) and attitude and
behavior of employees (OMC-AB), interfacing with customers while managing the order
cycle, on CS, and (2) examine the combined effect of the role of OMC-SP and OMC-AB
on CS. Data from 19 direct customers in a pilot study indicate the positive relationship of
OMC with CS. Price is not the critical factor if satisfaction in OMC is high along with a
high perceived value of product/service.

A research conductd by Jacob Eskildsen and Kai Kristensen studied the role of
transparency in customer satisfaction. The primary result of interest for businesses is the
level of the seven indices in the EPSI Rating framework values and we know quite a lot
about the behavior of the EPSI Rating framework with respect to the index values
(Fornell, 1992; Fornell et al., 1996; Eskildsen et al., 1999, 2003; Kristensen et al., 2001;
Juhl et al., 2002; Selivanova et al., 2002; Eskildsen et al., 2003; Kristensen & Westlund,
2003) as well as the structure of the framework (Eskildsen et al., 2004). We know
however very little about how the structure of the individual markets with respect to, for
instance, how the transparency of products and services affects customer satisfaction. The
article aimed to analyze the effect of the transparency of products and services on
customer satisfaction with respect to Danish mobile phone companies, banks and
supermarkets from 2004 based on the authors' experiences from the various analyses
conducted within the EPSI rating initiative.
A research was conducted by Jonathan Whitaker , Mayuram S. Krishnan and Claes
Fornell (2008) to illuminate upon the impact of offshoring on customer satisfaction.
consumers. Despite the anecdotal reports, North American firms are increasingly
offshoring front office functions such as customer service and back office functions such
as IT. This leads to two primary research questions. Does front office offshoring actually
have negative implications for consumers? If so, why would firms increasingly offshore
in the face of evidence that offshoring has negative implications for consumers? This
research addresses these questions by considering the relationship between offshoring
and customer satisfaction. Customer satisfaction, expressed through the American
Customer Satisfaction Index (ACSI), is an important indicator of firm performance.
Higher ACSI scores have been linked to higher firm profitability, shareholder value and
risk-adjusted stock returns. We analyze longitudinal data of 150 North American firms
and business units from 1998-2006, and find that while front office offshoring is
associated with a decrease in customer satisfaction, onshore front office outsourcing is
associated with a similar decrease. This finding suggests that declines in customer
satisfaction from front office offshoring may be partly attributable to language and
cultural issues, and partly related to other gaps for outside service providers (offshore or
onshore) to adequately serve and satisfy consumers. We also find that back office
offshoring is associated with an increase in customer loyalty. The difference between
front office and back office offshoring suggests that in addition to considering whether or
not to offshore, firms must carefully evaluate which functions are suitable for offshoring.
 CHAPTER-3

NEEDS, SCOPE
AND OBJECTIVES
REFERENCES

1. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=371003 6 February
2010]
2. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1002879, 6 February
2010]
3. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1090105, 6 February
2010]
4. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1068584, 6 February
2010]
5. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=975832, 6 February
2010]
6. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=977892, 6 February
2010]
7. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=891585, 6 February
2010]
8. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1010457, 6
February 2010]
9. http://www.emeraldinsight.com/10.1108/08876040010340937
10. [http://jom.sagepub.com/cgi/content/abstract/27/4/431, 6 February
2010]

REFERENCES
 Internet Resources

• A Guide to Management Styles -

http://www.libsci.sc.edu/bob/class/clis748/Studentwebguides/ss02/Bivens2.ht
ml
• Introduction to Management Theory -
http://web.city.ac.uk/artspol/theorymgt.html/
• www.indianjournalofmarketing.com/archives/2009/nov2009.htm

Books

• Leadership, James McGregor Burns (Pulitzer Prize winner) - HarperCollins,

May 1985 ISBN: 0061319759

Articles

 Autocratic and Participatory Management Styles -

http://www.qualityamerica.com/knowledgecente/articles/CQMStyle2.html
"Autocratic management styles redundant" -
http://www.gu.edu.au/text/er/news/2002_2/02dec02.html
• http://www.emeraldinsight.com/10.1108/09622519610772094
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a
Research. “Marketing Research is the systematic design, collection, analysis and
reporting of data and finding relevant solution to a specific marketing situation or
problem”.

Research is, thus, an original contribution to the existing stock of knowledge making for
its advancement. The purpose of Research is to discover answers to the Questions
through the application of scientific procedures. Our project has a specified framework
for collecting data in an effective manner. Such framework is called “Research Design”.
The research process followed by us consists of following steps.

4.1 Research Design:-

The research design of the research project was descriptive and exploratory.
4.1.1 Descriptive Research:-A type of conclusive research which has its major objective
the description of something-usually market characteristics or functions. In other words
descriptive research is a research where in researcher has no control over variable. He
just presents the picture which has already studied. Our research is descriptive
because--------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
---

4.1.2 Exploratory Research: - A type of research in which books, journals, and websites
are explored. The result of such kind of research is in the form of a hypothesis that needs
to be tested by someone else. Our research is exploratory because we have explored
researches done in past, known as reviews of literature.

4.1.3 Causal Research:- A type of conclusive research in which the major objective is to
study the cause and effect relationship. Our research is causal because we have studied
the effect of management styles and employee behaviour on customer satisfaction.

4.2 Sample Design-

Sampling can be defined as the section of some part of an aggregate or totality on the
basis of which judgment or an inference about aggregate or totality is made. The
sampling design helps in decision making in the following areas:-

4.2.1 Universe of the study- Universe refers to the population that is having the
features required for being a respondent. The universe comprises of two parts as
theoretical universe and accessible universe.

A) Theoretical universe: - In our study, all ---------------------------------------

B) Accessible universe: - In our study, Punjab is the accessible universe because

these customers can be approached by us easily.

C) Target population: - These are the customers which will actually answer the
 questions and act as respondents. In our study, Jalandhar and Ludhiana are
target population. There are four aspects to define the target population: -

1. Element: - In our study, respondents between the age of ---------------are the

elements.

2. Sampling unit: -------------is our sampling unit.

3. Extent: - The extent of research is in Jalandhar and Ludhiana

4. Time: -

4.2.2 Sample frame-Sample frame refers to the various sources that provide
information regarding the respondents. The sample frame for our study consists of
people using mobiles from the last one year.

4.2.3 Sample size- Sample size refers to the total number of items about which the
information is desired. The sample size of the study was 50.

4.2.4 Sampling Techniques- The sampling technique used is

----------------------------sampling as we have chosen the respondents on the basis that
whether they can answer the questions in the questionnaire or not.

4.3. Methods of Data Collection- Research work is descriptive in nature. Information

has been collected from both Primary and Secondary data.

4.3.1 Secondary sources- Secondary data are those which have already been collected
by someone else and which already had been passed through the statistical
process. Secondary data has been collected through magazines, websites,
newspapers and journals. Past researches in the field of mobile advertisement
were studied known as literature reviews.

4.3.2 Primary sources- Primary data are those, which are collected are for the first
time and thus happen to be original in character.
Questionnaire development: Primary data has been collected by conducting surveys
through questionnaire, which include demographic, dichotomous, ranking based and
likert scale questions. In order to cover the research gap this questionnaire has been
framed with great care. There are---------demographic questions, -------- other questions,
-------ranking based and -------- likert scale question.

Reliability: For ensuring the reliability of the questionnaire Cromback alpha has been
used which was more than .

Validity: The content validity of the questionnaire has been ensured by getting it checked
from Ms. Shweta, professor of research methodology. On her suggestions some
modifications were made and final questionnaire was prepared.

4.3.3 Tools of Presentation and Analysis- After collecting the data, it has been
analyzed through various statistical tools and techniques. The analysis of data
requires a number of closely related operations such as establishments of
categories, the applications of these categories to raw data through coding,
tabulation and then drawing statistical inferences. The unwieldy data should
necessarily be condensed into few manageable groups and tables for further
analysis. Thus it helps to classify the raw data into some purposeful and useable
categories. The main tools used in our research are percentages, figures and
tables.

4.4 LIMITATIONS OF THE STUDY

Despite all possible efforts in conducting the research there was some unavoidable
situation, which limited the scope of this dissertation. The limitations of the dissertation
fall under the following:-

1. As the research is based on the data that is already available and collected through
various means and not includes the survey, hence it imposes limitations, as it is quite
possible that the secondary data may be unsuitable or may be inadequate in the
context of the topic under study.
2. One of the major limitations of the study is that, as the data is collected though the
secondary means, hence it creates uncertainties regarding the methods of the data
collection, time of data collected, and any bias of the compiler during the pervious
research and at the time of data collection.
3. Limitation of time & resources were a major factor influencing the research study.
4. The research guide has helped us though at the project study, yet his busy time
schedule restricted as to cut short our discussions though detailed discussions were
required for the project.
5. The information given by the respondents might be biased some of them might not be
interested to give correct information
6. Some of the respondents could not answer the questions due to lack of knowledge.
7. Some of the respondents of the survey were unwilling to share information.

8. The research was carried out in a short period. Therefore the sample size and the
parameters were selected accordingly so as to finish the work within the given time
frame.

9. DATA ANALYSIS AND INTERPRETATION

DEMOGRAPHIC PROFILE

Table 5.1 Demographic profile of Respondents

DEMOGRAPHICS NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
GENDER Male respondents 25 50%
Female 25 50%
respondents
Total 50 100 %

AGE <20 years 10 20%

20-40 years 27 54%
40-60 years 9 18%
>60 years 4 8%
Total 50 100%
 ANNUAL <1Lakh 9 18%
INCOME 1-5 Lakh 29 58%
5-10 Lakh 10 20%
>10 Lakh 2 4%
Total 50 100%

EDUCATIONAL Graduate 26 52%

QUALIFICATION Post Graduate 24 48%
Any other - -
Total 50 100 %

Analysis and Interpretation

The above table represented demographics of the respondent’s half of which are
male and half are female. Most of the respondents belong to age group of 20-40
years and some to less than 20 years. Most of the respondents are graduates with
an income between 1-5 lakh.

Statement 5.1: The awareness of the respondents regarding various

management styles.

Here the respondents were asked about that the awareness regarding various management
styles and results gathered are given below:

Table 5.2 Table Showing Awareness Of The Customers Regarding Various

Management Styles.
Awareness level Number of Percentage of
respondents respondents
Yes 45 90
No 5 10
Total 50 100
 Figure 5.1: Figure Showing Awareness Of The Customers Regarding Various
Management Styles.

Percentage of respondents

Yes
No

Analysis and Interpretation

From the information collected, we come to know that about 90 percent

respondents are aware about various management styles and only 10 percent are
unaware about it . It is clear from the above that, people know about management
styles. The need is to tap them for knowing more about the management styles.

Statement 5.2: Respondents’ preference for the best management style

leading to customer satisfaction.

Here the respondents were asked about their preference for the best management style
and results gathered are given below:

Table 5.3: Respondents’ Preference For The Best Management Style Leading To
Customer Satisfaction.

Respondents’ Preference Number of respondents Percentage of respondents

Authoritative style 0 0
Benevolent autocratic 3 6
Democratic 25 50
Participative 48 96
Total 76* 152*
* Here total exceeds the number of respondents because of the question being a multiple
choice question.

Figure 5.2: Respondents’ Preference For The Best Management Style Leading To
Customer Satisfaction.

No. of respondents

Authoritative style

Benevolent
autocratic
Democratic

Participative

Analysis and Interpretation.

From the information collected, we come to know that almost every respondent i.e. 96
percent of the respondents are in favour of participative management style along with 50
percent also in favour of democratic management style and very few favour benevolent
autocratic. Thus participative is the most preferred style.
Statement 5.3: The respondents’ opinion on the interrelation of the
management styles and employee behavior in an organization.

Here the respondents were asked about whether the management style and employee
behavior in an organization are interrelated or not and results gathered are given below:

Table 5.4: The Respondents’ Opinion On The Interrelation Of The Management

Style And Employee Behavior.

Respondents’ opinion Number of respondents Percentage of respondents

Agree 46 92
Disagree 4 8
Total 50 100

Figure 5.3: The Respondents’ Opinion On The Interrelation Of The Management

Style And Employee Behavior.

Percentage of respondents

Agree
Disagree

Analysis and Interpretation

From the information collected, we come to know that almost all the respondents i.e. 92
percent agree that management style prevalent in the organization and employee
behaviour are interrelated leaving aside a very few number of respondents who do not
agree to the interrelation..
Statement 5.4: Rate the following factors in terms of scale of preference in
determining employee behavior.
( where 5 means highly preferred and 1 means least preferred )

Here the respondents were asked to rate the following factors for determining employee
behavior and results gathered are given below:

Table 5.5: Respondents’ Preference For The Factors Affecting Employee Behavior.

Factors Highly Preferred Neutral Less Least Summated

preferred ( 4 ) (3) preferred preferred score
(5) (2) (1)
Politeness 35 9 4 2 0 157
Activeness
in 37 7 3 2 1 227
providing
service
Attitude 8 38 4 0 0 204
Etiquettes
and 2 36 9 1 2 185
respect
Knowledge 3 4 5 29 9 113

Maximum score =250

Average score =150
Minimum score =50

Analysis and Interpretation

The scale used to analyse the factors is as shown:-

250 Preferred 150 Not preferred 50

ANALYSIS 5.4.1:-
Politeness: The analysis of the above table shows that politeness lies very close to
average value but on the side of preferred factors. Thus politeness of employees towards
customers is one of the factors that are used to determine employee behaviour in terms of
customer satisfaction.
ANALYSIS 5.4.2:-
Activeness in providing service: It is clear from the table that activeness in providing
service is a factor that which lies very close to the maximum limit. Thus this is highly
preferred while resoluting about the employee behaviour as a determinant of customer
satisfaction.

ANALYSIS 5.4.3:-
Attitude: From the above table it is clear that the summated score of attitude lies in the
part of preferred factors. Thus it is preferred while determining employee behaviour in
terms of it importance for customer satisfaction.

ANALYSIS 5.4.4:-
Etiquettes and respect: As we analyze the above table we come to know that this factor
lies close to the average value. Thus etiquettes and respect play a moderate role in
determining employee behaviour in terms of customer satisfaction.

ANALYSIS 5.4.5:-
Knowledge: The analysis of the above table shows that summated score of this factor,
knowledge lies on side of ‘not preferred factors’. Thus knowledge on the part of
employees is not so preferred attribute while determining employee behaviour in terms of
customer satisfaction.

Statement 5.5: Effect of organization climate on the change in attitude

and behavior of employee.

Here the respondents were asked to give their opinion about whether organization climate
have any effect on change in attitude of the employees and results gathered are given
below:

Table 5.6: Effect Of Organization Climate On The Change In Attitude And

Behavior Of Employee.

Respondents’ opinion Number of respondents Percentage of respondents

Yes 38 76
No 12 24
Total 50 100

Figure 5.5: Effect Of Organization Climate On The Change In Attitude And Behavior
Of Employee.

Percentage of respondents

Yes
No

Analysis and Interpretation

From the information collected we come to know that about 76 percent of the agree to the
fact that the organisation’s climate brings about a change in the attitude and behaviour of
employees while remaining disagree to the fact. Thus the climate one is confronted with
may confound the attitude and behaviour of employees.

Statement 5.6: Rank the following factors in terms of scale of role in

measuring customer satisfaction (1 to 5:-1 being the most imp and 5
being the least imp)

Here the respondents were asked about the factors they preferred more in measuring
customer satisfaction.

Table 5.7 Factors In Measuring Customer Satisfaction.

Factors Rank Rank Rank Rank Rank Summated Rank

1 2 3 4 5 score
 Purchase 0 3 7 24 16 203 4
situation
Decision 0 2 8 15 25 213 5
uncertainity
Quality of 28 10 6 2 4 94 1
product
Service 16 26 5 1 2 97 2
Price of the 6 9 24 8 3 143 3
product

Analysis and Interpretation

The above data shows that among the 5 factors identified to be most prominent factors,
the quality of the product is the factor whose summated score indicates to be the most
important factor. It is followed by service provided by employees, then comes the price
of the product. Purchase situation has been assigned fourth rank i.e. it is not so important
in determining customer satisfaction. Decision uncertainity has been identified to be he
least important factor to determine customer satisfaction.

Statement 5.7: Dissatisfaction of employees with their management

leads to reduction in the satisfaction level of customer.
Here the respondents were asked about their opinion of whether dissatisfaction of
employees leads to reduction in the satisfaction level of customer and results gathered are
given below:
Table 5.8: Dissatisfaction Of Employees With Their Management Leads To
Reduction In The Satisfaction Level Of Customer.

Opinion Number of respondents Percentage of respondents

Strongly agree 11 22
Agree 22 44
Neutral 13 26
Disagree 4 8
 Strongly Disagree 0 0

Figure 5.6: Dissatisfaction Of Employees With Their Management Leads To

Reduction In The Satisfaction Level Of Customer.

Percentage of respondents
Strongly agree

Agree

Neutral

Disagree

Strongly
Disagree

Analysis and Interpretation

The above data concludes that only 8 percent of the respondents are there which disagree
to the fat that when there is dissatisfaction of employees with management then this will
adversely affect the level of customer satisfaction. Out of the remaining 66 percent agree
to this fact because dissatisfaction among employees is bound to bring about an adverse
change in the attitude of employees towards customers.
Statement 5.8: Respondents’ suggestion for the management to increase
customer satisfaction.

Here the respondents were asked about their suggestions to increase customer satisfaction
and results gathered are given below:

Table 5.9: Respondents’ Suggestion For The Management To Increase Customer

Satisfaction.

Respondents Suggestions Number of respondents Percentage of respondents

Focus on employee 9 18
behavior
Focus on change in 10 20
management style
 Focus on both 27 54
Can’t say 4 8

Figure 5.7: Respondents’ Suggestion For The Management To Increase Customer

Satisfaction.

Focus on
Percentage of respondents employee
behavior

Focus on
change in
management
style
Focus on both

Can’t say

Analysis and Interpretation

From above it is clear that more than 50 percent of the respondents agree to the fact that
management needs to focus on both i.e. change in management style as well as change in
employee behaviour so as to increase the level of satisfaction among its customers.

Statement 5.9: Various factors that reduce customer satisfaction.

Statement 5.9.1: The agreement of respondents with first statement

Table 5.10: The Agreement Level Of Respondents With First Statement

Service not provided at Number of respondents Percentage of respondents

promised time
Strongly agree 24 48
Agree 21 42
Neutral 5 10
 Disagree 0 0
Strongly Disagree 0 0

Analysis and Interpretation

From the information collected we come to know that, almost all the respondents either
strongly agree or agree to the fact that if the service is not provided at promised time then
the level of customer satisfaction is likely to come down.

Statement 5.9.2: The agreement of respondents with second statement

Table 5.11: The Agreement Level Of Respondents With Second Statement

Improper organization Number of respondents Percentage of respondents

system
Strongly agree 11 22
Agree 21 42
Neutral 13 26
 Disagree 5 10
Strongly Disagree 0 0

Analysis and Interpretation

From the information collected we come to know that improper organization system also
plays some role in reducing customer satisfaction though it is not so important as
compared to other factors.

Statement 5.9.3: The agreement of respondents with third statement

Table 5.12: The Agreement Level Of Respondents With Third Statement

Improper explanation of Number of respondents Percentage of respondents

terms and conditions
 Strongly agree 9 18
Agree 19 38
Neutral 14 28
Disagree 5 10
Strongly Disagree 3 6

Analysis and Interpretation

From the information collected we come to know that majority of the respondents agree
with the statement that improper explanation of terms and conditions can lead to
dissatisfaction among customers. Though some respondents disagree to this fact also bu
their proportion is quite less. Hence it plays a significant role.

Statement 5.9.4: The agreement of respondents with fourth statement

Table 5.13: The Agreement Level Of Respondents With Fourth Statement

Rude behavior of Number of respondents Percentage of respondents

employees
Strongly agree 26 52
Agree 13 26
Neutral 7 14
Disagree 3 6
Strongly Disagree 2 4
Analysis and interpretation:
Analysis of the table shows that major portion of the respondents agree to the fact that
rude behaviour of employees plays a very important role in reducing customer
satisfaction towards the organization. Thus employee behaviour towards customer should
be friendly and calm.

Statement 5.9.5: The agreement of respondents with fifth statement

Table 5.14: The Agreement Level Of Respondents With Fifth Statement

Problem not Number of respondents Percentage of

understood by respondents
concerned employees
Strongly agree 11 22
Agree 13 26
Neutral 17 34
Disagree 9 18
Strongly Disagree 0 0

Analysis and interpretation:

From the analysis of the above table we come to know that this factor i.e. problem not
understood by concerned employees is not important when it comes to the dissatisfaction
of employees as most of the respondents take a neutral stand or disagree but since some
respondents agree to the fact also so its importance cannot be altogether ignored.

Statement 5.10: Most important factor determining customer

satisfaction.

Here the respondents were asked about the most important factors that determine
customer satisfaction i.e. A:management style,B: employee behaviour, or C: the
individual level variables.

Table 5.15

Factors Number of Percentage of

respondents respondents
Only A 7 14
Only B 9 18
 Only C 7 14
A&B 9 18
B&C 10 20
A&C 4 8
Can’t Say 4 8

Figure 5.8: Factors’ Importance In Reducing Customer Satisfaction

Percentage of respondents

Only A
Only B
Only C
A&B
B&C
A&C
Can’t Say

Analysis and Interpretation:

As we analyze the above table we come to know that all the given factors reduce
customer satisfaction with employee behaviour and individual level variables being the
prominent ones to play their role as dissatisfiers. Though management style is also
observed to play an important role.
 CH-6
FINDINGS
 FINDINGS

• 90 percent respondents are aware about various management styles and only 10
percent are unaware about it
• From the study, it is found that every respondent i.e. 96 percent of the respondents
are in favour of participative management style along with 50 percent also in
favour of democratic management style and very few favour benevolent
autocratic. Thus participative is the most preferred style.
• From the study, it is found that almost all the respondents i.e. 92 percent agree
that management style prevalent in the organization and employee behaviour are
interrelated leaving aside a very few number of respondents who do not agree to
the interrelation..
• From the study, it is found politeness of employees towards customers is one of
the factors that are used to determine employee behaviour in terms of customer
satisfaction. Activeness in providing service is a factor which is highly preferred.
Attitude also lies in the part of preferred factors. Etiquettes and respect play a
moderate role in determining employee behaviour in terms of customer
satisfaction. Knowledge factor lies on side of ‘not preferred factors’

• From the study, it is found that76 percent of the respondents agree to the fact that
the organisation’s climate brings about a change in the attitude and behaviour of
employees while remaining disagree to the fact.

• From the study, it is found that the quality of the product is the most important
factor followed by service provided by employees, then comes the price of the
product. Purchase situation is not so important. Decision uncertainity is least
important factor to determine customer satisfaction.
• From the study, it is found that only 8 percent of the respondents disagree to the
fact that dissatisfaction of employees with management will adversely affect the
 level of customer satisfaction. Out of the remaining 66 percent agree that
dissatisfaction among employees is bound to bring about an adverse change in the
attitude of employees towards customers.
• From the study, it is found that more than 50 percent of the respondents agree to
the fact that management needs to focus on both i.e. change in management style
as well as change in employee behaviour so as to increase the level of satisfaction
among its customers.
• From the study, it is found that almost all the respondents either strongly agree or
agree to the fact that due to poor service, improper organization system, improper
explanation of terms and conditions, rude behavior of employees and if problem
not understood by employees then the level of customer satisfaction is likely to
come down.
• From the study, it is found that employee behaviour and individual level variables
being the prominent ones to play their role in determining customer satisfaction.
 CONCLUSION

Advertising has been described as a mode of communication designed with the attempt to
convince people to begin or increase the use of a product or service. Advertising has gone
through five major stages of development: domestic, export, international, multi-national,
and global. For global advertisers, there are four, potentially competing, business
objectives that must be balanced when developing worldwide advertising: building a
brand while speaking with one voice, developing economies of scale in the creative
process, maximizing local effectiveness of ads, and increasing the company’s speed of
implementation.

A rich literature house has been developed over time, on the impact of various
management styles and employee behavior on customer satisfaction. A research gap was
identified. So a need was felt to conduct a study to reduce the research gap.

The study was descriptive and explorative in nature and had covered 50 respondents. The
sources of data collection used were both secondary and primary, secondary being the
journals, articles and web and primary being the questionnaires.

The study revealed that 90 percent respondents are aware about various management
styles. Almost all are in favour of participative management style. It is found that
politeness of employees towards customers is one of the highly preferred factors that are
used to determine employee behaviour in terms of customer satisfaction.Also the
organisations’ climate brings about a change in the attitude and behaviour of employees
and dissatisfaction of employees with management will adversely affect the level of
customer satisfaction.
 SUGGESTIONS AND
RECOMMENDATIONS

• Organizational climate perceptions contribute to individual and organizational

effectiveness. Management should work towards enhancing efficiency by creating
conditions to cultivate favorable climate perceptions. The management style, the
way the organizational work is directed and coordinated would play a critical role
in shaping climate perceptions.
• Organisations should prefer Democratic and Participative management styles to
increase customer satisfaction.
• The employees should be polite and active in providing service to the customers.
• To increase customer satisfaction, the management should give more emphasis on
quality of product and good service.