The Effect of Customer Satisfaction on Employee Job Performance and Loyalty at Telecom

Sector of Oman: A Case Study at Omantel

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 Chapter 1

Introduction

The developed countries have emphasis more on employee’s productivity that is regarded as the
backbone of an organization. Hence, satisfaction of employees is only possible when there is
satisfaction and retention from the side of customers. There are several strategies used in
organizations that are intended to retain the best talents and also the companies or small-sized
firms have applied the right marketing strategy in order to achieve success. The emphasis of
customer satisfaction is probably the priority of every organization which eventually makes
employees feel motivated and they perform better in organizations. Koys (2001), states that the
best talent retention strategy is to ensure that both employees and customers are satisfied and this
is one of the vital elements to be successful. Organizations tend to attract new customers and also
bring change in market share that is the business strategy to motivate and manage the
competitive forcing policy that changes the business. Babin et al (1996), indicates that the
improved organizational strategies have significant effect on the way business is done and
customers achieve satisfaction in order to value the product/service that is an essential feature for
customers.

Customer satisfaction is very essential because it directly has effect on the performance of
employees and loyalty of staff towards particular brand or the company working policies. Chi et
al (2009), highlights that customer satisfaction is a challenge for majority of organizations
especially firms which are beyond the operating boundaries. The effect of customer satisfaction
is a permanent source to address the employees regarding the level of good will or work with the
company. The fact is evident that customers ask about the product and service and feedback is
the source that helps employees know about product or service and they try to understand
whether they have met or not the expectations of the company. There are certain general
questions ask regarding satisfaction and also to ensure there is lack of disappointment whether to
rate the experience to be less satisfactory and set an example to manage the service and facility
that should be deemed easily.

The growing globalized and competitive environment as far as 21 st century is concerned has
emphasis more on delivering the right and quality service that has set sustainable advantage for

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business in order to get competitiveness for setting profit-based organization. Harter et al (2002),
states that customers are one of the essential stakeholders for ensuring that there is effective
business activities and also to review the research that investigate the factors which has direct
effect on customer satisfaction on the successful business management. Customer satisfaction
also has positive effect on profit level in organization and because the satisfied customers have
successful effect on the positivity and purchases as well as brand loyalty that is key success
factor for organizations. Customer satisfaction is a component that has direct effect on the
profitability of an organization and also to achieve employee effective performance by following
repeat purchases and review positive effect to achieve brand loyalty and brand image that is the
reason behind success for every organization.

This project highlights the effect of customer satisfaction on employee job performance and
loyalty. There are several factors that have effect on service quality delivered to customers
especially in telecom industry. These factors can include performance of employees, experience
and level of hiring. Employee performance is one of the highlighted elements in order to achieve
success and also to evaluate in efficient manner. Employee performance and customer
satisfaction is the way to study the behavior in specific manner and also to achieve it during the
same period. The employee behavior is a major factor that has effect on customer satisfaction
and staff performance that will be evaluated on the case study of Omantel.

1.1. Aim(s) of the Research

This project aims to study the effect of customer satisfaction on employee performance and
loyalty in Omantel.

1.2. Objectives

The objectives of this project are as follows:

1.2.1. To study the effect of customer satisfaction on employee performance and loyalty in
Omantel
1.2.2. To study the factors that have impact on employee performance in order to achieve
customer satisfaction in Omantel

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1.2.3. To identify strategies adopted by Omantel to improve employee performance to achieve
better customer satisfaction
1.2.4. To evaluate the impact of performance of employees and loyalty on customer satisfaction
in Omantel
1.2.5. To provide recommendations for Omantel to improve their existing practices for better
customer satisfaction and employee performance at work and loyalty
1.3. Research Questions
1.3.1. What is the effect of customer satisfaction on employee performance and loyalty in
Omantel?
1.3.2. What are the factors that have impact on employee performance in order to achieve
customer satisfaction in Omantel?
1.3.3. What are the strategies adopted by Omantel to improve employee performance to achieve
better customer satisfaction?
1.3.4. What is the impact of performance of employees and loyalty on customer satisfaction in
Omantel?
1.3.5. What are the recommendations for Omantel to improve their existing practices for better
customer satisfaction and employee performance at work and loyalty?
1.4. Rationale

The importance of this project can be reviewed by knowing about the fact that higher the
customer satisfaction will eventually be a source to get higher revenues and this will be a source
to achieve higher profit for company. Customer satisfaction also has positive effect on customer
retention and customer loyalty. The aspect of customer satisfaction can easily be achieved by
providing superior class product and service and offering extraordinary customer services to the
employees. Particularly, in the telecom business, the way the employees interact with customers
has direct effect on customer satisfaction Ahearne et al (2005). If the internet service and call
packages are of excellent quality with no interruption then customers will be more inclined to the
telecom company while if there is poor connectivity and disruption then customers are less likely
to be a part of the telecom company and also this can be a chance to lose customers and be
advantage for competitors. Despite of the evident association between customer satisfaction and
employees there are no previous studies that have empirically reviewed the effect of customer
satisfaction on employee performance in the context of telecommunication companies.

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1.5. Significance of the Study

This study is beneficial especially for telecom business sectors because the findings of this
research indicate the essential implications for all stakeholders of telecom industry especially for
the management, customers and employees. The managers at telecom companies can benefit
from the findings and recommendation for this research and make use of this study to serve as a
better guide to improve employee’s performance and enhance the satisfaction level of customers.
Employees can take benefit from the study and achieve an understanding regarding the way
performance has direct connection with customer satisfaction and the way it acts as a vital
element to achieve success in organization by influencing satisfaction of customers. Moreover,
customers can get a deep insight on the different behavioral effects on telecom company
employees and also the way it contributes towards achievement of success. This study is also
essential for researchers since they can formulate research questions and further investigate the
highlighted factors in order to review the way it affects employee performance and satisfaction
of customers and use methodology of this study in order to conduct further research.

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 Chapter 2

Literature Review

This section presents a brief overview of the research topic along with its conceptual significance
and reviews the theoretical knowledge regarding the research subject. It highlights the previous
studies on the research topic and it comprises of an amalgamation of several ideas and past
researches regarding effect of customer satisfaction on employee performance at work and
loyalty. Furthermore, this chapter also provides a sound background and detailed combination of
scholarly views and ideas regarding the effect of customer satisfaction and the way it can be
improved to achieve better employee performance and loyalty.

Employee performance as mentioned by Loveman (1998), is the combination of quality, quantity

and timeliness associated with the employee output along with the efficiency and effectiveness
done at work. According to Nishii et al (2008), employee performance is easily mentioned by
successful tasks completion and also by the employees by setting the pre-set targets and
standards in organization and to have effective and efficient utilization of resources in the
dynamic environment of organization. In contrast, Salanova et al (2005) argues that employee
performance has close connection with behavior and with the outcome of employee performance
and the way productivity has effect on performance on long run. Employee performance act as
significant factors that influences the performance of employees in organization and also have
emphasis more on the success factor in workplace.

Because of the previous assumptions set that the employees who are satisfied will eventually
generate loyal and satisfied customers and this will result in to achieve a higher degree of sales
and higher financial returns and manage the service companies allocating the significant
resources to achieve customer satisfaction and retention. However, Mittal et al (2001), states that
there are serious concerns placed on employee behavior and customer satisfaction that have close
association in telecom industry. Employee’s ability at work to efficiently respond to customer
query results in better degree of customer satisfaction and this is an essential characteristic to
achieve better customer satisfaction and also is a frequent example set to review the way telecom
industry achieves satisfaction.

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2.1. Key Performance Indicators

Key Performance Indicators (KPI) as mentioned by De Ruyter et al (2001), are the tools that are
used for performance assessment since it identifies the level of achieving the pre-defined
parameters and set the targets or standards. Yi et al (2011), states that the KPI act as a
quantifiable measurement tool that follows pre-defined parameters and standards which helps
organizations. These indicators are effective to set the way and define the organizations
evaluation based on observation of progress level in order to achieve the common goals at
workplace and also to set the organizations analysis based on mission and identifiable
stakeholder goals in workplace.

Since organizations tend to exist for different purposes and objectives that makes performance
indicators to vary across several organizations. Gustaffson et al (2005), indicates that there are
six indicators that measures employee performance such as productivity, competency,
commitment, communication skills, professionalism and cooperation. Cronin et al (2000),
presented different factors that help to measure performance of employees in industrial sector
such as number of complaints, damaged products delivered and also the average working hours
worked by each employee, time saved by the innovative processes along with the detailed
number of public awards or related appreciation needed to infuse innovation.

Karatepe et al (2006), presents employee’s job performance as a complex factor basically that is
divided into complex, multidimensional construct and divides job behavior into categories such
as contextual performance, task performance and systematic reviews which are adaptive to the
performance. Sadikoglu et al (2010), evaluated a systematic review in management, medical
databases and psychological in order to develop conceptual framework to study the different
dimensions in order to measure individual work performance.

Snipes et al (2005) identified task performance as a source of proficiency or competency which

comprises of employees in order to carry main job tasks. The basic job performance also has
association with job-specific tasks and manages the technical, proficiency level as far as role and
behavior along with quality of work is reviewed and job knowledge. Task performance behavior
as mentioned by Scotti et al (2007), studied the task performance behaviors and reviewed the

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core business activities such as goods and services production and also to sell merchandise and
have acquisition of inventory and administration etc.

2.2. The Satisfaction

The level of satisfaction has strong connection with fulfillment of individual expectation that is
termed as satisfaction. The concept of business also has satisfaction level which either receives
one or more than the equal expectation level in order to stay motivated and feel good about the
satisfaction. The moment when customer makes payment for specific product or its performance
then there is greater degree of expectations rather than the expectation where one feels motivated
and good about the situation and since the customer makes payment for product and sets
standard regarding performance of the product (Gomez et al, 2004). The product performance
can be better in comparison for customer satisfaction in in order to achieve loyalty from
customers.

The satisfaction from the side of customers is quite essential in order to be successful and
achieve the right value for staff with right vision and mission. Babakus et al (2003), emphasized
more on non-financial measures that play the strong connection with goodwill and produces long
term benefit in order to achieve a standard for employee satisfaction. In such situation the
customers in industry interact directly with employees and other staff members who make their
attitude to turn negative and make them leave customer behavior or attitude to achieve higher
degree of satisfaction.

The balanced score card in current situation is very effective and widely used in organizations.
Besides the traditional financial measures and analyzing non-financial factors the managers have
responsibility to build and improve efficiency as well as resource which are used sincerely and
set true direction in order to avoid ambiguity to achieve long term success. The new basic idea
introduces the business and takes necessary steps as financial measures in multinational
companies with the objective to work together in an effective manner.

The intense competition due to globalization have made organizations to realize the factors such
as employee satisfaction, product quality and customer satisfaction to be considered and
reviewed as essential part of the system. Social welfare programs are essential and have long
term effect on the business growth and have effect on customer and employee performance.

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2.3. Satisfaction Mirror

There are several researches that focus more on the connection between employee satisfaction
and customer satisfaction. The basic success in business and the ultimate result to achieve
employee satisfaction is indicated by the customer satisfaction levels that are present at both
ends. Hallowell (1996), said that the notion of satisfaction mirror tend to reflect the satisfaction
level present at both levels. The organizations that are successful can maintain this by the
advantage and satisfaction of employees and motivate by consistent improvement. The internal
customers and employees in certain organization definitely need ways to satisfy the internal
customer and retain satisfaction.

Many studies focus on service industry and their working that are documented as evidence for
employee behavior to have effect on customer satisfaction. The studies contributed that
impossibility of loyal customer is only due to the fact that employee behavior is not as per the
standard expected. The possibility to achieve customer satisfaction is to ensure that their demand
is satisfied by providing them with their desired services.

2.4. Service Sector and Satisfaction

Service industries are growing rapidly in the world especially telecom sectors and there are
different managers and academics to apply best practices in functional areas such as human
resource management and production. This is the root cause of services where there are
specializations in academic careers. Brown et al (1993), the marketing sector comprises of direct
interaction with general public and the satisfaction of employees has direct effect on the
performance of service sectors.

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The idea is quite crucial to understand the way behavior of employees can be a way towards
better employee performance and due to intangibility the services lead towards better customer
dependency and behavior to bring change in workplace. Selnes (1993), conducted a study in US
Canadian firms where there were more than 250 firms while the results presented that customer
satisfaction achieved 93% support that surely is of high important value. The degree of loyalty

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and customer satisfaction reveal that work level reduces the operating costs and production in
company that makes way toward profitability. Similarly, the extent customers achieve
satisfaction is by employee behavior and advertisement that leads to increase in number of
customers and achieve a higher degree of profit. In this way this process takes shape of profit
chain and this chain is utilized by majority of firms.

Majority of corporate sectors in the current global situation depend on empirical evidences that
help to know about the knowledge based resources. Another study indicated that environmental
condition and technology use are also factor to get better customer satisfaction in the competitive
global market. Customer satisfaction comprises of a psychological state that reflects well-being
of an individual and focuses on to get the desired product or service. It evaluates the total
performance of individual especially with reflection of measurement of service performance of
an individual. Gelade et al (2003), states that customer satisfaction has gained immense
popularity in business and marketing field. The current situation states that there is need to focus
more on the challenges faced by customers and use social media channels and online reviews to
handle purchase power. Satisfied customers eventually are a source of better organizational
performance and eventually it act as a vital source to derive better and effective results in near
future.

Meanwhile, Gruca et al (2005), found that there should be presence of mutual influence among
customer satisfaction and employee performance. The employees who feel satisfied and
connected with work will focus on customer satisfaction. The results also indicated that service
sector like telecom needs to strengthen employee satisfaction aspect in order to have better

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growth and review the policies and practices that show increased customer appreciation for their
efforts in respective services. Apart from this, feedback either positive or negative acts as an
eminent source for employees to fight against issues and strengthen the employee satisfaction
level.

Macky et al (2007), mentioned that the most complex areas for managers in modern situation are
to handle the employees. Several studies unusually have reviewed the effect of customer
satisfaction on performance of employees which triggers motivation among workers. This factor
eventually has effect on productivity level in an organization and also it is a pleasurable positive
emotional state to emerge from customer satisfaction and individual attitudinal level that values
individual on their job and different aspects of job.

2.5. Empirical Evidences on Customer Satisfaction Effects on Employee Performance and

Loyalty

According to Kim et al (2005), employees have been an eminent source and imperative aspect to
achieve the goals of organization as the study examine the impact of employee’s motivation level
on organization by studying the degree of customer satisfaction especially for correlation and
regression analysis. A study by SPSS analysis tested questionnaires data for regression analysis
and Pearson correlation analysis in order to study the connection between motivation level
among employees and customer satisfaction. The results reveal that there is positive connection
between customer satisfactions of airline industry since customers assess services of airline by
staff behavior.

Another study by Brown et al (2002), evaluated the individual performance and review
relationship between motivation of employees and organizational effectiveness as factors to
study the relationship in telecommunication companies. The study identifies the factors which
affect motivation of employees especially when the study reviewed banking sectors. Hoffman et
al (1992), states that motivation for employees basically considers effectiveness to be a major
factor in order to study the positive association of employees for accomplishment of tasks and
achieve a higher degree of organizational growth by evaluation of 103 respondents sample by
Pearson correlation. The results supported that there is a strong positive correlation for
organization competence and employee motivation towards better growth and progress.

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The satisfaction level of customers actually has direct possession with business and in order to
achieve a better degree and era of customer satisfaction there is need to explore the dimensions
which affect the service sectors. Davis et al (2004), studied the effect of employee satisfaction by
customer satisfaction in service sectors and indicated by analyzing 50 respondents in field
analysis and the results indicate that employer can offer superior degree of satisfaction by
motivation of employees. The analysis also hypothesized that when employer offers superior
motivation them employees have complete emphasis on the job and manage the customers return
so that the study act as a source to achieve a higher degree of positive effect on customer
satisfaction level for better performance.

Van Birgelen et al (2006), states employee motivation to play crucial role in order to achieve
better degree of satisfaction especially from the side of customers. The analysis of business
sector makes use of structured questionnaire and primary data was already collected. The
researcher used Correlation and Regression technique along with Chi-Square Test that supported
results while the findings indicate that customer level of contentment is equally important as far
as motivation level is analyzed in business sectors that are intended to be a source of high
customer satisfaction. Brady et al (2001), studied employee satisfaction level to be an essential
part to elaborate the business processes and success level and have better degree of employee
contentment in the telecom sector and evaluate the researcher concepts as qualitative
examination of method that studies by questionnaire and analysis method from 20 employees by
distribution of questionnaires among 132 customers and are recorded with the tool of SPSS
analysis. The findings indicate that researcher presented an optimistic view and achieve the
business success and employee satisfaction to be an essential component to start programs that
help in higher degree of customer satisfaction.

Gelade et al (2003), the study has emphasis on covering the service sector that identifies the
effect of employee retention and customer satisfaction by the pragmatic study associated with
different hotels in Nigeria. The results indicate that there is an imperative association between
customer satisfaction and employee preservation in the twenty hotels and review the sample size
which has around 400 employees and also adapt a random sampling approach with z-test study
of population proportion. The findings indicate that there is weak connection between level of
customer and employee satisfaction and achieve retention in hospitality industry. This has been

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an intended program and sets the employees service knowledge by encouraging the employees to
emerge quite often towards customer’s loyalty and satisfaction.

Research Framework

Figure 1: Research Framework

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 Chapter 3

Methodology

The chapter presents details about the methodology used in this research and analyzes the data
with help of right strategies. The researcher presents detail of aim of research and presents the
detailed statistics for the study. The current study depends on positivist philosophy as mentioned
by researchers and aim to review the effect of customer satisfaction on employee performance
and this will be based on positivist philosophy since it acknowledges various unobserved
realities. The researchers realize the fact that customer satisfaction improves the motivation level
at workplace and also the factors cannot show accuracy since participants can be influenced by
different personal and situational factors.

Keeping this idea in mind this study explores the basic concepts associated with studying the
effect of customer satisfaction on the motivation level of employees in workplace. In order to
gather the data there will be questionnaires used to collect data in the form of survey and find
answer with ease. The type of investigation in this study is explanatory and it aims to find the
relationship between the customer satisfaction (dependent variable) and employee performance
(independent variable) in Omantel. Moreover, this research adapts deductive approach in order to
study the effect of customer satisfaction on employee performance at work and loyalty and
intends to test relationship among variables. On the basis of this research, the researcher aims to
develop a general idea regarding adding or enhancing the theoretical base while deductive
approach plays essential role to gather unbiased results by verification of the factors and
relationship with specific criterion.

3.1. Research Environment

This research is conducted in Omantel Telecommunication Company and it intends to study the
effect of customer satisfaction on employee job performance and loyalty. Oman
Telecommunications Company (Omantel) is among the pioneer to set the standard of being the
first telecommunication company that offers the best internet services which are quite effective
and provides excellent quality of internet services in Oman. The estimated shares have reported
that Omantel has 65% of shares in WorldCall Pakistan and also in government of Pakistan that
has major share in international hub of 10 submarine cables that are landed in region like Oman

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such as TWA, EIG, EPEG, SMW-3, POI, GBI, Mena and BBG. Omantel is successfully focused
more on implementation of project plan and effective technology that helps to get the right
quality standard services for customers (Omantel.om, 2017)

3.2. Research Design

In this study, the objective to collect data is to prepare a suitable research design. There are
several types of research design that are selected for research orientation and also different
methods implemented during the process. The basic selection of research design that is equally
suitable is known as to have a major element that should be regarded as an essential source to
complete the research work. The overall emphasis is on completion of the research activities.

Keeping the entire above situation in mind, there are several approaches used by researchers
such as descriptive research design, experimental research design and exploratory research
design. The research design selected in this study is very adaptable for descriptive research
design. The basic objective of the descriptive research design is to gather data, analyze and
tabulate the information that reflects several prevailing conditions, practices, beliefs and
processes along with cause and effect relationship in order to handle research data. The
management of Omantel ensures that employees behave in a very excellent manner with
customers in order to have a higher degree of customer satisfaction. This research focuses more
on in depth and critical explanation of data in order to add variety of information that is needed
to collect respective details.

3.3. Research Approach

Research approach is a way that has more emphasis on researches and is of importance in
modern time since it helps to know about the association between flow and success associated
with research work. The designed research approach is to overview the researcher’s idea
regarding the details of activities that identify the performance at work keeping in account the
inductive and deductive approaches used in study (Liao et al, 2004).

The researcher in this study highlights the details associated with inductive research approach
that is quite stable and effective. The inductive research has presented the information that
moves from specific to general. In simple words, this research work has direct impact on

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empirical findings that are monitored by the use of observation. The research span requires
Omantel to study the integration and improve employee performance at work in Omantel by
careful evaluation and exploration of the concepts of customer satisfaction.

3.4. Research Respondents

Sampling is regarded to be one of the complicated phases that require participants to make use of
their intellectual capability to find answer of all research questions. Sampling process is designed
to collect responses from a random population and ensure that all necessary features are present.
The method used in research is quite effective and there are different sources that are required for
collection of sample. The sampling technique for this study is known as random sampling
approach.

The population of sample in this study to collect data includes customers and employees working
in Omantel. This study includes questions related with the way employees should behave and
show loyalty that is due to the effects of customer satisfaction. The data will be collected by
distribution of questionnaire in Omantel and the research will have 25 participants selected from
Omantel.

3.5. Research Instrument

The basic tool for data collection in this study makes use of primary and secondary data sources
to collect information on topic of research.

3.5.1. The Primary Data

The primary data for this study is collected by questionnaire among employees and customers of
Omantel. Their responses were analyzed and reviewed in order to study effects of customer
satisfaction on employee performance and loyalty at Omantel. The questionnaire was distributed
among 50 participants out of whom 25 were employees and 25 customers of Omantel.

3.5.2. The Secondary Data

The secondary data collected in this study makes use of books, websites, articles, journals and
complete the literature review section. The data collected from secondary sources makes up the

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literature section in order to provide information regarding the research topic and highlighting
the information based on the research topic.

3.6. Research Procedure

3.6.1. Gathering of Data

This research makes use of two procedures that are applied to gather the data and review it in
analysis. The data analysis procedure depends mainly on the nature of work and purpose to
collect the data and select the framework for analyzing the collected data. The procedure for data
collection in this study makes use of qualitative and quantitative data in order to complete the
research. There is mixed-method approach used for completion of this study and this means
research has implemented qualitative and quantitative approaches to complete this study.

Qualitative data analysis completes the literature review section and implements diverse sources
that are required to complete the study. The sources are questionnaire that form a major part of
analysis section and ensure there is applicable approach used to get qualitative data (Bakker et al,
2008).

Quantitative data analysis in this study basically is to classify the responses and present their
views in numerical format. This can be done by the use of charts such as graphs or pie charts that
represent the collected information from Omantel and this approach is beneficial due to ease of
understanding and evaluation.

3.6.2. Treatment of Data

The data that is collected from surveys is represented in form of pie chart or graph that reflects
the collected data. The presentation of data is more comprehensible for readers and also should
be in numerical format.

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 Chapter 4

Data Analysis

4.1. Introduction

This chapter presents the information regarding Omantel and also the procedure that collects data
from 50 respondents and discuss about the selected information collected. The random sampling
approach is used to gather data from Omantel and the following information provides detailed
information regarding the demographic information of respondents at Omantel participants.

4.2. Profile of Respondents

1. Gender Information

The table below presents information regarding the gender of respondents selected at Omantel:

Gender Number Percentage

Male 40 80%
Female 10 20%
Total Respondents 50 100%
Table 1: Gender Information of Respondents

Gender Information of Respondents

20%
Male
Female

80%

Chart 1

The data presented in chart (1) indicate the demographic information based on gender
classification of respondents. There are 80% male respondents (40 out of 50) in this study and
20% (10 out of 50) female respondents selected in this study for analysis.

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2. Age Details of Respondents

Age Number Percentage

Below 25 years 5 10%
25 years -35 years 10 20%
35 years- 55 years 30 60%
More than 55 years 5 10%
Total Respondents 50 100%
Table 2: Age of Respondents

Age of Respondents
10% 10%
20% Below 25 years
25 years -35 years
35 years- 55 years
More than 55 years

60%

Chart 2

The results as mentioned in chart (2) state that 10% respondents are below 25 years, 20%
respondents belong from the age group between 25 years to 35 years. There were 60%
respondents to belong from 35 years to 55 years. There are 10% respondents to be more than 55
years of age. The researcher has emphasis more on observation of the responses that belong from
different age groups and also to analyze in the research section.

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4.3. Analysis of Questionnaire

1. What is the best thing among the employees at Omantel?

Sources of Selection No. of Responses Percentage of Responses

They always smile 20 40%
Answer Queries 20 40%
Are cooperative 10 20%
Total 50 100%

20%

40%

They always smile

Answer Queries
Are cooperative

40%

Chart 1

The responses mentioned in chart (1) indicate that there were 40% respondents to mention that
the staff at Omantel always smile and customers find it to be their best trait, there were 40%
employees to consider that employees at Omantel always answer their queries while 20%
respondents indicate that Omantel staff are very much cooperative. The results show that
majority of respondents consider that the staff at Omantel always smiles and answers their
queries which is the best trait of staff at Omantel.

2. How would you like to rate the services provided by Omantel to

the customers?

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 Options No. of Responses Percentage of Responses
Excellent 15 30%
Good 20 40%
Satisfactory 5 10%
Poor 10 20%
Total 50 100%

20%
30%

a) Excellent
10%
b) Good
c) Satisfactory
d) Poor

40%

Chart 2

The responses collected in Chart (2) indicate that 30% respondents rate the services of Omantel
to their customers as ‘Excellent’, there were 40% respondents to consider ‘Good’ as the services
of Omantel for customers and 10% respondents indicated ‘Satisfactory’ services to be for
Omantel and 20% respondents mentioned ‘Poor’ as the services of Omantel for their customers.
The results indicate that majority of respondents rate the services of Omantel ‘Good’ as far as
respondents views are analyzed.

3. What is the effect of customer satisfaction on employee

performance in Omantel?

Options No. of Responses Percentage of Responses

Employees are Motivated 7.5 15%
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Better Training is Provided 10 20%
Employees get Efficient 30 60%
Quick and better service 2.5 5%
from employees
Total 50 100%

5% 15%

Employees are Motivated

20% Better Training is Provided
Employees get Efficient
Quick and better service from
employees
60%

Chart 3

The results in chart (3) indicate that there are 15% respondents to consider that employees are
motivated to be the effect of customer satisfaction on employee performance in
Omantel, 20% respondents consider that better training is provided to
employees as the effect of customer satisfaction on employee performance
in Omantel. There are 60% respondents to mention employees to get
efficient as the effect of customer satisfaction on employee performance in
Omantel while 5% respondents indicate that there is quick and better service
provided to employees that is the effect of customer satisfaction on
employee performance in Omantel. The results show majority of respondents
to consider that customer satisfaction results in employees to get efficient at
work.

4. What is the impact of customer satisfaction on management of

Omantel for their employees work and loyalty?

Options No. of Responses Percentage of Responses

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Staff are trained ethically 10 20%
Service sector is made 30 60%
tolerant
Employee behaviour is 5 10%
expected to be improved
Employee assistance 5 10%
programs introduced
Total 50 100%

10% 10% 20%

Staff are trained ethically

Service sector is made
tolerant
Employee behaviour is
expected to be improved
Employee assistance
programs introduced
60%

Chart 4

The details in chart (4) indicate that 20% respondents consider that the staffs are trained ethically
to be the impact of customer satisfaction on management of Omantel for their
employees work and loyalty. There are 60% respondents to indicate that the
Omantel service sector is made tolerant while 10% respondents state that
employee behavior is improved and 10% respondents mention that
employee assistance program is introduced. The results indicate that
majority of respondents think that the service sector is made more tolerant
at Omantel that is the impact of customer satisfaction on management of
Omantel for their employees work and loyalty.

5. Managers and employees listen to customers suggestions

actively. Is this the effect of customer satisfaction on Omantel
team?

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 Options No. of Responses Percentage of Responses
Strongly Agree 20 40%
Agree 10 20%
Neutral 15 30%
Disagree 2.5 5%
Strongly Disagree 2.5 5%
Total 50 100%

5% 5%

40%

30% a) Strongly Agree

b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
20%

Chart 5

The results collected in chart (5) indicate that 40% respondents strongly agree that managers and
employees listen actively to customer suggestions and this is the effect of customer satisfaction
at Omantel. There are 20% respondents to agree with the statement while 30% respondents are
neutral and 5% respondents disagree and 5% respondents strongly disagree that managers and
employees listen actively to customer suggestions and this is the effect of customer satisfaction
at Omantel. The results show that majority of respondents strongly agree that managers and
employees listen actively to customer suggestions and this is the effect of customer satisfaction
at Omantel.

6. Does customer satisfaction results in employee retention at

Omantel?

Options No. of Responses Percentage of Responses

Likely 30 60%
Neutral 15 30%
25
Not likely 5 10%
Total 50 100%

10%

Likely
30% Neutral
Not likely
60%

Chart 6

The results in chart (6) state that 60% respondents consider that customer satisfaction is likely to
result in employee retention at Omantel, there were 30% respondents to show neutral response
regarding the statement and 10% respondents to state that customer satisfaction results in
employee retention at Omantel and this is not likely to happen as their views. Thus, majority
states that there are likely chances that customer satisfaction results in employee retention at
Omantel.

7. What are the major indicator of effective employee performance

and loyalty at Omantel?

Options No. of Responses Percentage of Responses

Highly satisfied customers 30 60%
lead to employee loyalty

26
Highly satisfied customers 10 20%
lead to attracting new
customers
Employee dissatisfaction 5 10%
results loss of customers
All of the above 5 10%
Total 50 100%

10% 10% Highly satisfied customers Highly satisfied customers

lead to employee loyalty lead to attracting new
customers
20% 60% Employee dissatisfaction All of the above
results loss of customers

Chart 7

The results as mentioned in chart (7) state that 60% respondents state that highly satisfied
customers lead to employee loyalty at Omantel. There were 20% respondents to mention that
highly satisfied customers lead to attract new customers at Omantel and 10% respondents
mentioned that employee dissatisfaction results to loss of customers and 10% respondents
mentioned all of the above factors to be the major indicator of effective employee
performance and loyalty at Omantel. The results show majority of
respondents to consider high satisfaction of customers to lead towards
better employee loyalty at Omantel.

8. Why is customer satisfaction impactful on employee performance

in Omantel? What factors make it essential?

Options No. of Responses Percentage of Responses

Good service is essential 25 50%
Admirable customers are 10 20%
priority

27
Motivates the employees 5 10%
Drives the performance 10 20%
Total 50 100%

20%

Good service is essential

10% 50% Admirable customers are
priority
Motivates the employees
Drives the performance

20%

Chart 8

The results in chart (8) indicate that 50% respondents consider that good service is essentially
required and is reason for customer satisfaction to be impactful on employee
performance in Omantel. There are 20% respondents to state that admirable
customers are always set priority and 10% respondents indicate that it
motivates the employees and is the cause for customer satisfaction to be
impactful on employee performance in Omantel. There are 20% respondents
to mention that it drives the performance which is the reason for customer
satisfaction to be impactful on employee performance in Omantel. The
results show that majority of respondents consider that good service is
required and this is the reason for customer satisfaction to be impactful on
employee performance in Omantel.

9. How Omantel improves the employee performance due to the

effect of customer satisfaction in order to retain employee loyalty?

Options No. of Responses Percentage of Responses

Training 30 60%
Incentives and Rewards 5 10%

28
Promotion of Employees 10 20%
Motivate Employees 5 10%
Total 50 100%

10%
20%
Training
Incentives and Rewards
Promotion of Employees
60% Motivate Employees

10%

Chart 9

The results in chart (9) indicate that by 60% respondent’s state that by training Omantel
improves the employee performance due to the effect of customer
satisfaction in order to retain employee loyalty. There were 10% respondents
to support incentives and rewards to be used by Omantel and 20% consider
promotion of employees as a source indicated by Omantel that improves the
employee performance due to the effect of customer satisfaction in order to
retain employee loyalty. There are 10% respondents to state that motivation
of employees is something that Omantel considers to improve for the
employee performance due to the effect of customer satisfaction in order to
retain employee loyalty. The results indicate that majority of respondents
state Omantel to improve the employee performance due to the effect of
customer satisfaction in order to retain employee loyalty by training.

10. Do you think that customer satisfaction is necessary for better

employee performance and loyalty at Omantel?

Options No. of Responses Percentage of Responses

Yes 45 90%

29
No 5 10%
Total 50 100%

10%

Yes
No
Difficulty in implementation

90%

Chart 10

The results indicate that 90% respondents agree and think that customer satisfaction is
necessary for better employee performance and loyalty at Omantel while
10% respondents disagree that customer satisfaction is necessary for better
employee performance and loyalty at Omantel. The results show majority of
respondents to strongly agree that customer satisfaction are necessary for
better employee performance and loyalty at Omantel.

Chapter 4

Findings

30
This chapter presents a detailed review of the findings of the research and
presents it in descriptive format in order to clearly understand and review
the research topic. First, the researchers found a strong connection between
the degree of customer satisfaction and employee performance in Omantel.
The study confirmed that there is a strong productive connection between
customer satisfactions because Omantel keeps note of this and tries to make
efforts to improve employee performance and loyalty towards the company
and these variables are strongly interconnected as mentioned by Hee et al
(2001). They also mentioned that customer satisfaction is the reason behind
employee retention. The first objective of this study was to study the effect
of customer satisfaction on employee performance in Omantel. The study
indicates that the service sector is improved considerably and also made
tolerant as far as customer satisfaction and its impact on employees at
Omantel is observed. Moreover, the satisfaction of customers in Omantel
also brings immense change in the behavior of employees in order to retain
loyalty and have effective employee performance.

The second objective of this study was to study the factors that have impact
on employee performance in Omantel to achieve customer satisfaction. The
results of the study mentioned the factors such as good service is necessary
and admirable customers are regarded as priority and motivation are listed
as key factors that have effect on employee performance level in Omantel as
far as customer satisfaction and its impact is evaluated. The third objective
of this study was to review the strategies adopted by Omantel in order to
improve employee performance and achieve better degree of customer
satisfaction. The results for this objective indicated that training, incentives
or rewards, employee promotion and motivating employees by managers in
Omantel are the key factors to improve employee performance.

The fourth objective of this study was to evaluate the impact of employee
performance and loyalty on customer satisfaction level in Omantel. The
results in this regard indicated that the situation when Omantel has highly

31
satisfied customers then there is better degree of employee loyalty.
Moreover, highly satisfied customers are regarded to be a source to attract
new customers and also Omantel is aware that employee dissatisfaction can
result in loss of majority of customers. The fifth objective was to suggest
suitable plan for Omantel to have better employee performance for which
the management offers training to the entire staff at Omantel in order to
achieve a better degree of employee performance and achieve customer
satisfaction. However, there is scope of improvement in this sector since
Omantel can make use of variety of policies and approaches in order to have
better degree of employee performance. The findings of this research can be
summarized as below:

 The results indicate that 40% respondents forming the majority indicate that the
employees at Omantel always smile and answer their queries. This is what makes the
employees best as far as customers view is observed.
 40% respondents are of view that the customer service offered at Omantel is ‘Good’ and
this has huge impact on the degree of customer satisfaction.
 60% respondents mention that employees get efficient to be the aspect that shows the
effect of customer satisfaction on employee performance in Omantel.
 There are 60% respondents to agree that service sector is made more tolerant and that is
the impact of customer satisfaction on management of Omantel for their employees work
and loyalty
 40% respondents strongly agree that managers and employees listen actively to customer
suggestions and this is the effect of customer satisfaction at Omantel.
 The results indicate that 60% respondents consider that it is likely to happen in Omantel
that customer satisfaction results in employee retention in Omantel.
 60% respondents forming majority state that highly satisfied customers eventually lead
towards better customer loyalty in Omantel and this is the major indicator of effective
employee performance and loyalty at Omantel
 50% respondents mention clearly that good services are needed in organization and this is
reason for customer satisfaction to be impactful on employee performance in Omantel.

32
  60% respondents state that training is something that is provided by Omantel to improve
the employee performance due to the effect of customer satisfaction in order to retain
employee loyalty.
 90% respondents agree that customer satisfaction is necessary for better employee
performance and loyalty at Omantel

Chapter 6

Discussion

The increasing value of customer satisfaction has made emphasis on several researchers to study
the aspect which has satisfaction on both sides i.e. employees and customers. This study reveals
that customer satisfaction has eventually strong connection with employee performance since
this satisfaction is the root cause behind employees to perform well in workplace. The
investigation in Omantel being a telecom sector reveals that the sector provides satisfaction to
the employees in Oman. The productive aspect is that the degree of satisfaction among
employees is strong attempt that is beneficial for employees since it indicates the essential
benefits that are available to the organization. Similarly, customer satisfaction brings motivation
among employees and they try to work even harder. The fact is evident from the collected data
and the results reported positive connection which is quite significant at professional level at
workplace.

Customer satisfaction is quite essential especially for organizations and successful business
performance in the competitive era. The scenario of globalization and factors has increased the
competition level and this has actually repeated the customer perception. This study emphasized
more on the factors that have eventually brought repeated customer satisfaction. The different
factors regarding customer satisfaction have made a valuable connection with organization and
are engaged to achieve satisfaction. In this study we hypothesize the idea that customers of an
organization will have impact on the performance of employee duties in an efficient manner and
the results will eventually be more satisfactory in return. So, the degrees of employee satisfaction
and customer satisfaction have connection as far as productive organizational results are
concerned. So the satisfaction level of employees is something that has direct connection
between customers and employees and the correlation is directly visible.

33
The employer like in case of Omantel needs to ensure that there is training provided to the entire
staff so that there is better performance and result needs to be supported by the productive
results in workplace. The satisfaction of customers depend on the way employees at Omantel
treat and behave with the other members and in this regard there is need to test variables and also
develop correlation coefficients that provide positive value from employer-employee variables
effect in order to achieve effective results. So this study can conclude that the level of
employee’s satisfaction has direct effect on customer satisfaction for better performance.

The telecom sector of Oman is an emerging sector and its current situation indicates that
customer satisfaction is actually the result of management of complexities. But generally, the
fact is visible that satisfaction of employee helps to better retain workers and also organization
should make use of policies and practices that ultimately is in favor of the workplace. The fact is
evident that ‘satisfied customers make employees satisfied’.

Customer satisfaction has close relationship with attitude of employees and also the staff
members who are involved in a greater degree of supervision and work environment. The results
of a study by Kaynak (2003), indicates that customer satisfaction is very much needed and also
the supervisor’s behavior and attitude is something that is required by peers and this satisfaction
level at workplace should be minimized. The business organization should focus on desires and
experiences where the representation should match the real individual and handle the closeness
and situation at workplace.

This study presents different reviews for employees and managers to work in telecom sector of
Oman and they can improve their existing services and have better customer interaction.
Satisfied customers are basically the source to bring change among employees as far as their
behavior and change is reviewed which eventually results in greater degree of profitability for
employees.

Finally, there are few limitations associated in this research. This study was conducted only in
Omantel of Oman. There are chances to have different results if any other telecom company was
consulted. The size of sample was very small and not large; increase in sample size can bring
different results. There are chances of different results by selecting any other sector than

34
Omantel. The results for the study could be more generalized if conducted in any other city other
than Oman or in a different sector, which is left for future research.

Chapter 7

Recommendations

The following recommendation plan should be followed by Omantel to improve employee

performance and loyalty in order to get better customer satisfaction:

1. Strengthen Customer Service Skills

Omantel needs to make sure that customer service team has the right training and skill so that
they can manage the customer’s needs. CRM software should be used in Omantel to keep a track
record of customers and it should ensure:

 Patience, empathy and consistency- Customers are of different variety and humor and
one should be aware to handle them all. This is the responsibility of Omantel to train the
staff for service 24/7.
 Adaptability- The customers change daily and on weekly basis for which they should be
able to handle the sense of customer’s mood and adapt to the changes accordingly by
providing effective customer services.
 Communication clarity- This is essential because clarity in communication helps to
actually bring change and have authentic language used at work.
 Work ethic- Customers tend to appreciate individual who have better resolution at work
and excellent management skills by not spending much time and also wait for customers
and have emphasis on achievement of goals at work
2. Review Every Aspect

35
Omantel needs to review every aspect regarding their employees and retain a customer lifecycle
which does not turn in bad relationship. In addition Omantel needs to make use of right skills and
handle the customer experience that has risk lapses and avoid hurting the business.

3. Improve customer interactions

Omantel needs to focus on offering training to the employees and ensure the customers have the
right customer service and also have thorough feedback that is received in effective manner:

 Omantel can as the representative staff to have common ground and share the idea in
order to make conflicts simple and share information easily. This can be done by
effective customer relationship
 The staff at Omantel needs to listen to customers and be clear and rephrase the concern of
customers. The employees should reflect more feelings during conversation such as ‘That
must have disappointed you’, or ‘I can see why you seem to be sad’.
 The staff at Omantel should admit and accept their mistakes which will act as a source to
build trust among customers. There should also be follow-up plan implemented and
feedback survey that should be used consistently in Omantel to stay connected with
customers.
4. Enhance Customer Service Strategy

The customer service strategy should be improved in Omantel since it has major concern for the
way employees interact with customers. This is proactive strategy and customers need to be
happy and sort the problems by:

 Omantel can make customers feel more valued by providing access to real people and
avoid bots. The automated mail responses should be avoided and employees should have
live interaction which can be done by online social media forum like Yahoo, Facebook or
Twitter that will make customers to have ease and accessibility
 The employee performance can be improved on an extent when there is better customer
satisfaction. This can be done by being available and easily reachable to the customers by
use of video call that will help to build physical trust and makes sure it act as reminder on
internet

36
  Omantel should ensure that employee’s performance and loyalty level is able to meet the
expectation of customers. There can be communities made by employees and this will
make customers feel more valued by use of interactive websites and social media
channels.
5. Improve Employee Engagement

Customer satisfaction has effect on management at Omantel that it improves the focus of
management on their employees. There should be introduction of improved employee
engagement that offers a better customer experience and avoid dissatisfaction from side of
employees and avoid any anonymous suggestion or problem. The engagement of companies and
other customer service results in better understanding of employees and set benchmark standard
which should be more specific to the specified services.

6. Customers Feedback

Omantel should train staff to take feedback from customers who will help the telecom company
to keep a record of their experience regarding customers and ensure there is accessibility to the
customers. Phone survey at the end of service call or email survey have made direct CRM
connection and this act as a source to offer direct feedback as it eventually improve the learning
need and manage the unhappy customers.

Omantel should take necessary decisions and follow on importance of customer satisfaction and
ensure the strengths and weaknesses of customers are notified. This will eventually bring
improvement in employees and help to achieve a better degree of customer satisfaction at
Omantel.

37
 Chapter 8

Conclusion

The results of this study show that the employee performance and loyalty is improved towards a
greater extent when customers are satisfied. The two variables in this study are related and there
is greater dependency on the service quality that is provided by Omantel. The same situation
happens when employee performance and customer satisfaction are reviewed as interconnected
aspects. There are times when focus of customer satisfaction act as a driving force to bring better
quality of service. This study brought in two connected aspects and used the multidimensional
concepts where the assessment of work and satisfaction is achieved more by the variables of this
study. Customer satisfaction is the emphasis of every company and the employee performance
has direct connection with customer service especially in telecom industry in Oman. The service
standard and goals are equally essential along with reviewing the processes which are required
for rewarding employees on account of their quality service. The best performance of any
organization can be recognized when it follows the expectation and looks up for the results
which suits in well with customer service department and demands and probably gets
continuation with the proactive customer requirements.

Thus, workers need to be more careful about the current situation across the world and also
implement flexible ways to stay connected with employer. There is need to implement different
career expectations strategies and the findings provided evidence that Omantel structures the
work environment in order to focus on the changing situation and manage the expectation of
employees that should be connected more with workplace. Employees pay more attention in

38
Omantel to the ways that result in customer satisfaction and this is the reason for better
productive results currently and in near future.

Appendix

Questionnaire

Name: ____________________

Age:

a) Below 20 years

b) 20 years-30 years

c) 30 years to 50 years

d) Above 50 years

b) Gender: Male: _______ Female: ____________

Dear Respondents,

Kindly Answer the Questions Below for Survey.. Use Tick Mark or Circle Your Selected Option

Thank You !

1. What is the best thing among the employees at Omantel?

They always smile

Answer Queries
Are cooperative

39
2. How would you like to rate the services provided by Omantel to
the customers?

Excellent
Good
Satisfactory
Poor
4. What is the effect of customer satisfaction on employee
performance in Omantel?

Employees are Motivated

Better Training is Provided
Employees get Efficient
Quick and better service from employees

4. What is the impact of customer satisfaction on management of

Omantel for their employees work and loyalty?

a) Staff are trained ethically

b) Service sector is made
tolerant
c) Employee behaviour is
expected to be improved
d) Employee assistance
programs introduced

5. Managers and employees listen to customers suggestions

actively. Is this the effect of customer satisfaction on Omantel
team?

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

40
6. Does customer satisfaction results in employee retention at
Omantel?

a) Likely

b) Neutral

c) Not likely

7. What are the major indicator of effective employee performance

and loyalty at Omantel?

a) Highly satisfied
customers lead to
employee loyalty
b) Highly satisfied
customers lead to
attracting new
customers
c) Employee
dissatisfaction
results loss of
customers
d) All of the above

8. Why is customer satisfaction impactful on employee performance

in Omantel? What factors make it essential?

a) Good service is
essential
b) Admirable customers
are priority
c) Motivates the
employees
d) Drives the
performance

41
9. How Omantel improves the employee performance due to the
effect of customer satisfaction in order to retain employee loyalty?

Training
Incentives and Rewards
Promotion of Employees
Motivate Employees

10. Do you think that customer satisfaction is necessary for better

employee performance and loyalty at Omantel?

a) Yes

b) No

42
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47