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SUSTAINABLE EMPLOYEE EMPOWERMENT AND CUSTOMER SATISFACTION IN HOTELS

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Product Code: 00009565

No of Pages: 83

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ABSTRACTS


The study examined the sustainable employee empowerment and customer satisfaction in hotels in Umuahia. The objectives of the study are; To examine the application of employee empowerment on the hotels in the study area, ascertain the role of the applied employee empowerment status on customer satisfaction in the study area, examine the factors affecting employee empowerment in an organization in the study area, determine the way forward to employee empowerment in the study area. To achieve the objective of the study, survey research design was adopted. The researcher adopted primary data in getting the required information through the use of structured questionnaire. The population of the study is 38 registered hotels in Umuahia, Abia State with 520 staff strength. The sample size of the study is 226 after adopting Taro Yamane formula. In analyzing the data, simple descriptive statistics was used. The findings revealed that there is high level of application of employee empowerment in hotel establishments. The findings also revealed that applied employee empowerment plays a significant role on customer satisfaction in the study area. The findings further revealed that there are many factors affecting employee empowerment in the hotel establishments which includes lack of skills, lack of trust, lack of clear policies, job insecurity, failure to identify empowerment, lack of top management example and lack of training. The study recommends that employees need to be trained and updated to be knowledgeable and resource full to give full-fledged service to the customers they are rendering service. Training for technical and interactive skills: for employees to deliver service quality they need an on-going training in the necessary technical skills and knowledge and in- process or interactive skills.







TABLE OF CONTENTS


Title page                                                                                      i

Approval                                                                                                 ii

Certification                                                                                         iii

Dedication                                                                                         iv

Acknowledgement                                                                                v

Table of contents                                                                         vi

List of table                                                                           xi

Abstract                                                                                                 xii

CHAPTER ONE: INTRODUCTION 

1.1    Background of the study                                                      1

1.2     Statement of Problem                                                            5

1.3      Objectives of the Study                                                  6

1.4       Research Questions                                                                                  7

1.5       Significance of the Study                                                     7

1.7       Scope of the Study                                                                                                                                                                   

CHAPTER TWO: LITERATURE REVIEW 

2.1        Conceptual framework                                            9

2.1.1     The Hospitality Industry                                   9

2.1.2      Basis and Definition of Empowerment                             11

2.1.3       Concept of Customer Satisfaction                                     16

2.1.4        Services Sector and Satisfaction                                            18

2.1.5        Service Quality                                                                      21

2.1.6        Employee Empowerment on Hotel Business Performance                  23

2.1.7        Employee Empowerment and its Benefits in Customer Retention               24

2.1.8        Employee Empowerment and Customer Satisfaction                     26

2.1.9        Who is a Customer                                                                          27

2.1.9.1      Customer Service                                                                     28

2.1.9.2       Customer Loyalty                                                                28

2.1.9.3        Effects of Customer Satisfaction on Customer Loyalty and Retention        29

2.2               Theoretical Framework                                                          30

2.2.1             Theory of Structural Empowerment                                     30

2.2.2             Theory of Motivation                                                                  31

2.3                 Empirical Literatures                                                              32

2.4                 Summary of Related Literature                                                 37


CHAPTER THREE: RESEARCH METHODOLOGY 

3.1              Research Design                                                                           39

3.2             Area of the Study                                                                    39

3.3             Population for the Study                                                      39

3.4             Sample and Sampling Technique                                                  40

3.4.2          Sampling Technique                                                                     41

3.5            Instrument for Data Collection                                             41

3.6            Validation of the Instrument                                                       41

3.7            Reliability of the Instrument                                                                      42

3.8            Method of Data Collection                                                                42

3.9            Statistical Techniques for Data Analysis                                     42 


CHAPTER FOUR: RESULTS AND DISCUSSION

4.1           Results                                                                                       43

4.1.1        Socio-economic Characteristics                                               43

4.2            Analysis of Research Questions                                               44

4.3            Major Findings                                                       51

4.4            Discussion of Findings                                 


CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 

5.1      Summary                                                                                              53

5.1.1       Restatement of the Problem                                                      54

5.1.2       Description of Methods used                                                        55

5.2           Conclusion                          56

5.3        Recommendation                                                                                 57

5.4         Contribution to Knowledge                                                  57

5.5        Suggestion for Further Studies                                                   

REFERENCE 

APPENDIX 1

 

 


 

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Hospitality industry all over the world has been increasingly getting worried about employee empowerment. As we know that employee is the backbone of the organization because he/she is the only person who is directly in touch with the customer on the time of service delivery. Oloko & Ogutu (2012) defined employee empowerment as the ways in which hotel establishments provide their employees with a certain degree of autonomy and control in their day-to-day activities. This can include having a voice in process improvement, helping to create and manage new systems and tactics, and running smaller departments with less oversight from higher-level management (Yeh-Yun-Lin 2012). A key principle of employee empowerment is providing employees the means for making important decisions and helping ensure those decisions are correct. When deployed properly, this should result in heightened productivity and a better quality of employee work and work life.

Empowerment is the degree of autonomy and self-determination in people and in job environment. This enables them to represent their interests in a responsible and self-determined way, acting on their own authority. It is the process of becoming stronger and more confident, especially in controlling one's life and claiming one's rights. Empowerment as action refers both to the process of self-empowerment and to professional support of people, which enables them to overcome their sense of powerlessness and lack of influence, and to recognize and use their resources. Empowerment of employee will guide the productivity improvement, job satisfaction, individual and organizational performance (Shazia, Azhar & Nadeem,  2010). Employee empowerment has been associated with the concept of power, implying that power in the organization should be re-shared by the top management to the lower management (Vogt 1997 in Wolf 2010). Without empowerment employee will not be confident, not be creative and will not have the technical knowledge, therefore, unable to provide better performance as per expectation. Employee will be successful if management provides them with some level of authority and systematic knowledge according to their work, which is known as the employee empowerment. The continuous development of employee empowerment directly affects the quality of service and satisfaction level of customer towards the service provider. Whereas at present scenario all the service industries are making themselves strong in order to increase the quality of service and customer satisfaction. Employee empowerment is one of the reflections of this modern approach to man management. It invariably leads to a positive change within the organization (Chatura, 2013). Empowered employees are more motivated as compared to those who just follow the given lines. Employee empowerment creates sense of belongingness and ownership towards the parent organization.

According to Bass, Avolio, Zhu, Koh and Bhatia (2004 in Boudrias, Gaudreau, Savoir and Morin 2013). satisfaction is a notion associated with the job. Furthermore, the satisfaction of a leader‘s action makes the employee more motivated and committed to attaining organizational and group goals. The important achievement from the point of view of the organization is its employee performance. The growth, achievement of the organisation is the effort of all employees in the organisation, not a few. The purpose of performance as a key multi-dimensional construct is to achieve goals, which are linked to organizational strategic goals Mwita (2004 in Gandhi & Kang 2012). Customer satisfaction in hospitality industry is posited to be a function of service quality i.e. customer service, corporate image, price, innovativeness and convenience, among others (Colwell, Scott, Jiang and Joshi 2016). Odindo and Delvin (2010) noted that increase customer satisfaction has the potential to enhance organizational performance and as a result managers should have customer satisfaction as a key target. Oloko & Ogutu (2012) stated that, in recent past, employee empowerment has been promoted as a general recipe for enhancing work performance. In support of the above, Manzoor (2013) claimed that, empowerment provides benefits to organizations and makes sense of belonging and pride in the workforce.  He further contended that, it builds a win-win connection among organizations and employees, which is considered an ideal environment in numerous organizations and their employees.  Empowered employees focus their job and work-life with additional importance and this leads to constant progress in coordination and work procedures.  In his contribution to empowerment literature, Ayinde (2012) provided a lucid definition: ‘empowerment means giving power or entitlement to people, helping them acquire capabilities or qualifications, establishing structures which enable them to have more control over decisions affecting them.

Customer satisfaction is a business philosophy which tends to the creation of value for customers, anticipating and managing their expectations, and demonstrating ability and responsibility to satisfy their needs (Peters and Mazdarani 2011). Quality of service and customer satisfaction are critical factors for success of any business Gronoos (1990), Parasuraman, Zeithaml and Berry (1988) in Garrison and Noreen (2015). As Valdani (2009) points out: enterprises exist because they have a customer to serve. The key to achieve sustainable advantage lies in delivering high quality service that results in satisfied customers Shemwell, Yavas and Bilgin (1998 in Nicholson and Broione 2012). Service quality and customer satisfaction are key factors in the battle to obtain competitive advantage and customer retention. Customer satisfaction is the outcome of customer’s perception of the value received in a transaction or relationship, where value equals perceived service quality, compared to the value expected from transactions or relationships with competing vendors. In order to achieve customer satisfaction, it is important to recognize and to anticipate customers' needs and to be able to satisfy them. Enterprises which are able to rapidly understand and satisfy customers' needs, make greater profits than those which fail to understand and satisfy them Barsky & Nash, (2003 in Peters and Mazdarani 2011). Since the cost of attracting new customers is higher than the cost of retaining the existing ones, in order to be successful managers must concentrate on retaining existing customers implementing effective policies of customer satisfaction and loyalty. This is especially true in the hotel industry.

Retention refers as a commitment to continue to do business or exchange with a particular company on an ongoing basis. Retention also can be defined as the customers’ liking, identification, commitment, trust, willingness to recommend, and repurchase intentions, with the first four being emotional-cognitive retention constructs, and the last two being behavioral intention (Stauss, Chojnacki, Decker and Hoffman 2011). According to Lockyer (2015), customer retention is deeply held commitment to rebuy or repatronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behaviour. Later, Chatura (2013) defines customer retention is the propensity of the customer to stay with their service provider. Many organization today having difficulty to attack new customer so the restructures their marketing department and appoint managers to give attention to their existing customer (Ahmad and Buttle, 2012). Customer retention is very important for the hotel in order to ensure hotel sustainability and growth for a long time; therefore, it is the hotel’s duty to ensure that they had been able to fulfil all the customer’s needs and wants from time to time. Whenever crises arise, they need to be alerted to the current situation and be able to respond to it quickly. Besides that, hotel’s management needs to ensure that individual customer is satisfied with the service standard. If management is serious about helping customers succeed, retention is a necessary but not sufficient component to their satisfaction. In fact, retention should be the minimal expectation for customer success that they simply return to the hotel after their first year (Kahrig, 2015). It is against this background the study tends to examine the employee empowerment and customer satisfaction; an approach to customers retention and sustainability of hotel establishment.


1.2  Statement of Problem

Globalization has opened up various opportunities and challenges for hotel operations to compete internationally. Besides technological advancement, a developed, competent and empowered workforce will give hotel operations an edge over its competitors. Studies on empowerment have shown that it has a strong correlation to employee performance in terms of higher productivity, job satisfaction and reduction in staff turnover in hotel operations (Ohuabunwa 2010). This, leads to the question of, is this correlation applicable to the hotel operations customers’ retention and sustainability. This question is prompted based on Lin (2012). Rating on hotel establishment in umuahia indicates operations of non-employee empowerment.

Empowerment is a well-studied subject in Nigeria, but little research has been conducted in hotel operations.  So far on employee empowerment in the abia state, have been found to focus on the institutions rather than hotel operations as a whole. Studies on the impact of empowerment on employee performance in umuahia hotel operations, however, is still lacking. As a result, this study puts forward a model to link between employee empowerment and customer satisfaction to impact customer’s retention and sustainability of hotel establishment. This model introduced constructs of training and development, engagement (inputting and control) and trust (employee access to information flow and serving others-feedback), as three employee empowerment and self determination factors.

Despite the enormous amount of research work carried out in the field of employee empowerment, throughout the developed and emerging economies of the world, In short, there is little or nothing known about the importance of employee empowerment influence on customers’ satisfaction in hotel industry in Nigeria. This study therefore posits that, employee empowerment can be the panacea to the public distrust and lack of customers’ satisfaction in the hotel industry in Nigeria (Parker and Price 1994 in Taylor and Baker 2015).  It is based on these identified problems that this study is set to provide a structured and investigation that will set to reveal the influence of sustainable employee empowerment and customer satisfaction in hotels in Umuahia.


1.3 Objective of the Study

The main objective of this study is to examine the sustainable employee empowerment and customer satisfaction in hotels in Umuahia. The specific objectives of the study are:

  1. To examine the application of employee empowerment practices on hotels in the study area.
  2. To ascertain the role of the applied employee empowerment practices on customer satisfaction in the study area.
  3. To examine the factors affecting the application of employee empowerment practices in hotels in the study area.
  4. To determine the way forward to employee empowerment in the study area

1.4 Research Questions

  1. What are the applications of employee empowerment practices on hotels in the study area?
  2. What are the roles of the applied employee empowerment practices on customer satisfaction in the study area?
  3. What are the factors affecting the application of employee empowerment practices in hotels in the study area?

4.     What are the ways forward to employee empowerment in the study area?


1.6 Significance of the Study

The study will be significant to hotel establishment, hotel manager, hotel staff and scholars.

The findings of this study will educate hotel operators as they will be able to understand the relationship between employee empowerment and customer satisfaction to customers’ retention and sustainability. With the knowledge from this study when published will enable hotel operators appreciate the application of employee empowerment on hotel operations productivity.

Customer’s retention and sustainability are paramount to hotel managers in ensuring the productivity of the operations. Hence, the study will be useful in application of employee empowerment status on customer satisfaction in the operations. The study will also enable hotel managers determine factors affecting employee empowerment and customer satisfaction in hotel operations

Empowered employees are more motivated as compared to those who just follow the given lines. The findings of the study will creates sense of belongingness and ownership towards the parent organization and also the findings of the study will enable empowered employee feel more confident and try to give their best to their employers, as a result, customer satisfaction is achieved. The study will contribute to the literature on employee empowerment and customer satisfaction which will form part of articles that will be useful to researchers who want to further in this study.

Finally, the study will educate students of these noble institutions and other institutions on the sustainable employee empowerment and customer satisfaction in hotels. The study will also serve as a reference material to researchers who would wish to research on a similar topic in future.


1.7    Scope of the Study 

The study focused on sustainable employee empowerment and customer satisfaction in hotels in Umuahia. The study was carried out in Hotels in Umuahia metropolis. Managers and staff of selected hotels constitute the population size of the study.

 

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