Essay On Employee Empowerment In The Service Sector

722 Words3 Pages
Service sector is the fastest growing sector in India, which encapsulates many areas like IT, telecom, logistics, finance, education, tourism, professional services etc. It is contributing significantly to the Indian economy for the growth of GDP. Service firms are highly autonomous in nature and vary greatly in terms of products and services offered. Therefore a great deal of situational demand is thrust upon employees in the service industry as customer demands and job tasks vary greatly. Firms within the service industry depends heavily on an employee’s ability to deliver effective service even during chaotic and turbulent situations. For that reason, the study of employee empowerment within service oriented organizations is important to…show more content…
Poor interaction with guests invariably results in dissatisfied customers which can seriously damage a banks reputation in the long run, thus deteriorating sales turnover. It is therefore imperative that employees within service industries such as the banking industry be granted the freedom and discretion to solve problems “on the spot” using their own acumen and judgment.
In any service context, employee job satisfaction is crucial as it is closely linked to customer satisfaction. It is therefore in the best interest of an organization to devote a substantial amount of effort examining ways to improve as well as maximise the satisfaction an employee has in the workplace. Previous research has shown that employee job satisfaction is a relevant factor in service quality improvement because employees who feel satisfied with their jobs provide higher levels of customer
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As the relationship between customer satisfaction and employee satisfaction becomes increasingly interrelated. There is substantial evidence in terms of the relationship between customer loyalty, profitability and job satisfaction. The value of the service provided determines the level of satisfaction finally; value is created and determined by satisfied and productive employees. However, it is the internal quality of a working environment that drives employees’ job satisfaction. In service organization, job satisfaction may have impact on customer satisfaction. Job satisfaction is positively related to employee perceptions of service quality. Therefore, job satisfaction in the workplace is a crucial element which deserves a substantial amount of attention for both the well being of the employee and organization. Employee job satisfaction is a worthwhile investment for organizations striving to reduce their employee turnover rate and retain their current
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