Management Styles New

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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 therespondents who helped us to complete this project.

Dated:



TABLE OF CONTENTS

Certificate

Preface

Acknowledgement

(i)

(ii)

(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:

http://www.buzzle.com/articles/leadership/

http://www.buzzle.com/articles/leadership/



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: “What do you think?”

Underlying emotional

intelligence competencies:

Collaboration, team leadership,

communication

When the style works best: To build buy-in or consensus, or to get input

from valuable employees

Overall impact on climate: 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: “Do what I tell you”



Drive to achieve, initiate, self-control

When the style works best: In a crisis, to kick start a turnaround, or with

problem employees

Overall impact on climate: 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: “Come with me”



Self-confidence, empathy, change catalyst

When the style works best: When changes require a new vision or a clear

direction is needed

Overall impact on climate: 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.

Theindirect 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.





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 improvedsignificantly 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.

http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=941394










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.









CHAPTER-3

NEEDS, SCOPEAND 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]


2010]


2010]

5. [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=975832, 6 February2010]


2010]


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

http://www.emeraldinsight.com/10.1108/08876040010340937




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

http://www.libsci.sc.edu/bob/class/clis748/Studentwebguides/ss02/Bivens2.html



http://www.amazon.com/exec/obidos/ASIN/0061319759/qid=1045514938/sr=2-2/ref=sr_2_2/instituteform-20

http://www.qualityamerica.com/knowledgecente/articles/CQMStyle2.html






http://www.amazon.com/exec/obidos/ASIN/0061319759/qid=1045514938/sr=2-2/ref=sr_2_2/instituteform-20

http://www.qualityamerica.com/knowledgecente/articles/CQMStyle2.html









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 thatwhether 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. OFRESPONDENTS

PERCENTAGE OFRESPONDENTS

GENDER Male respondents 25 50%

Female

respondents

25 50%

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

INCOME

<1Lakh 9 18%

1-5 Lakh 29 58%

5-10 Lakh 10 20%

>10 Lakh 2 4%

Total 50 100%

EDUCATIONAL

QUALIFICATION

Graduate 26 52%

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

respondents

Percentage of

respondentsYes 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


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 ToCustomer 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 ManagementStyle And Employee Behavior.


Agree

Disagree


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

( 5 )

Preferred

( 4 )

Neutral

( 3 )

Less

preferred

( 2 )

Least

preferred

( 1 )

Summated

score

Politeness 35 9 4 2 0 157

Activeness



in

providing

service

37 7 3 2 1 227

Attitude 8 38 4 0 0 204

Etiquettes

andrespect

2 36 9 1 2 185

Knowledge 3 4 5 29 9 113

Maximum score =250

Average score =150

Minimum score =50


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

Preferred Not preferred

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


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.


Yes

No


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


Table 5.7 Factors In Measuring Customer Satisfaction.

Factors Rank

1

Rank

2

Rank

3

Rank

4

Rank

5

Summated

score

Rank



Purchase

situation

0 3 7 24 16 203 4

Decision

uncertainity

0 2 8 15 25 213 5

Quality of

product

28 10 6 2 4 94 1

Service 16 26 5 1 2 97 2

Price of the product

6 9 24 8 3 143 3


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.


Strongly agree

Agree

Neutral

Disagree

Strongly

Disagree


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


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 CustomerSatisfaction.

Respondents Suggestions Number of respondents Percentage of respondents

Focus on employee

behavior 9 18

Focus on change in

management style10 20



Focus on both 27 54

Can’t say 4 8

Figure 5.7: Respondents’ Suggestion For The Management To Increase CustomerSatisfaction.

Percentage of respondentsFocus on

employee

behavior

Focus on

change in

management

styleFocus on both

Can’t say


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

promised time

Number of respondents Percentage of respondents


Agree 21 42

Neutral 5 10



Disagree 0 0



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

system



Agree 21 42

Neutral 13 26



Disagree 5 10



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

terms and conditions




Strongly agree 9 18

Agree 19 38

Neutral 14 28

Disagree 5 10



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

employees



Agree 13 26

Neutral 7 14

Disagree 3 6




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

understood by

concerned employees

Number of respondents Percentage of

respondents


Agree 13 26



Neutral 17 34

Disagree 9 18


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

respondents

Percentage of

respondentsOnly 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


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 theorganisations’ climate brings about a change in the attitude and behaviour of employees

and dissatisfaction of employees with management will adversely affect the level of




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.

Documents

Management Styles New