Impact of Employee Motivation and Satisfaction on Customer Satisfaction and Organizational Performance: A Theoretical Framework

Abstract

The purpose of this research is to establish whether there exists a relationship between employees' satisfaction and customers' satisfaction and how customer satisfaction does then impact the organizational performance of Banks and other organizations. We have started with emphasis on customer satisfaction and then light has been thrown on whom the customer interacts with for its satisfaction- the employees. Problem statement describes as to why we have undertaken this study. Then extensive literature review has been carried out to ascertain what exactly has already been established and proved in this respect and to refrain from inventing the wheel again (because it has already been invented). Variables have been identified, defined and integrated with references for the purpose of hypothesis generation and model development. Our model suggests that employee motivation yields employee satisfaction and customer satisfaction, employee satisfaction also results in customer satisfaction and then customer satisfaction causes organizational performance to increase. The model and hypothetical framework have been proved from the results of previous studies and the conclusion drawn is that employee motivation and employee satisfaction are the necessary prerequisites for customer satisfaction, which in turn furthers organizational performance.