Results have indicated that employee training and employee incentive have had not a significant effect on customer satisfaction. Trainings no doubt provide opportunities to employees to enhance their competencies but many times it has been found that the companies have imparted adequate training to their employees but because of low job satisfaction and lack of motivation they do not engage with their customers and not able to satisfy them. There is no doubt that training is vital input for better customers service but as we have seen it is not the only variable for customer’s satisfaction. Financial incentives to employees did not lead to customer satisfaction. If the employee is not sufficiently qualified & competent enough in both technically as well as emotionally to respond and meet customers' requirements easily as a result, it leads poor customer satisfaction.

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Impact Of Employee Training And Monetary Rewards On Customer Satisfaction
Krishna Nand Tripathi
kntrip76@gmail.com
Research Scholar
Shree JJT University-Rajasthan
ABSTRACT
Results have indicated that employee training and employee incentive have had not a significant
effect on customer satisfaction. Trainings no doubt provide opportunities to employees to enhance
their competencies but many times it has been found that the companies have imparted adequate
training to their employees but because of low job satisfaction and lack of motivation they do not
engage with their customers and not able to satisfy them. There is no doubt that training is vital
input for better customers service but as we have seen it is not the only variable for customer’s
satisfaction. Financial incentives to employees did not lead to customer satisfaction. If the
employee is not sufficiently qualified & competent enough in both technically as well as emotionally
to respond and meet customers' requirements easily as a result, it leads poor customer satisfaction.
Key Words: Employees satisfaction, Customer Satisfaction, Training, Motivation, Incentives
1. INTRODUCTION
Customer satisfaction is necessary for any successful organization. There should be value of
employee satisfaction to achieve the vision and mission (Banker et al., 2000).The banker also
stressed that non-financial measures play the game of your goodwill and produce long-term benefits
for organizations. The textiles sector must specifically take care of employees' satisfaction. In
textiles industry, customers interact directly with employees and employee behaviour, the attitude
turns the customer into retention or exit and research proves that a satisfied employee can satisfy
the client.
The feelings derived from the fulfillment of desires, expectations and needs are called satisfaction.
The business also has a concept of satisfaction. By receiving greater than or equal to the
expectation, individual feels good and motivated, that is your satisfaction (Allen and American
Society for, 2004). The customer when paying for the product purchased makes a standard
expectation about the performance of this product. The product that performs better than the
expectation generates loyal customers
The study focused on the relationship between employee satisfaction and customer satisfaction.
Business success is the end result of employee satisfaction, but this is reflected in customer
satisfaction (Xu and Goedegeburre, 2005)The Goedegeburre has expressed the idea of satisfaction
mirror which express level of satisfaction in two-dimensional factor. Successful organizations can
save its benefits solely by satisfying the employees and promoting improved efficiency. Internal
customers are available inside the company and they need to satisfy internal customers if external
ones need to be maintained and satisfied.
2. OBJECTIVES OF STUDY
This study has following main objectives:
I. To study the impact of employees training on the customer satisfaction level.
II. To study the monetary incentives/rewards to employees and it’s impact on customer
satisfaction level.
3. HYPOTHESES
Based on the study aim and objectives, the following hypotheses can be formulated:
H01: There is no significant impact of employee’s training on customer satisfaction level

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H1: There is significant impact of employee’s training on customer satisfaction level
H02: There is no significance of employee’s monetary rewards on customer satisfaction level.
H2: There is significance of employee’s monetary rewards on customer satisfaction level.
2. LITERATURE REVIEW
Brooks (2000) examined the relationship between financial success and the variables of customers
and employees (e.g. customer satisfaction, employee satisfaction, etc.) and found it depending on
the market segment and industry, 40 to 80 percent of customer satisfaction and customer loyalty
were due to the relationship between employee attitudes and customer-related variables. Similarly,
Vilares and Cohelo (2000) found that employee satisfaction was observed the loyalty of the
employees and the commitment of the employees had a considerable impact. The quality of the
products and the quality of the service noted.
Berhardt, Donthu, and Kennett (2000) Measuring the relationship between employee satisfaction,
customer satisfaction and longitudinal profit shows that although the impact of employee
satisfaction and customer satisfaction on commercial profit at a given time is not clear, they become
visible and prominent during the year. In particular, they found a positive relationship between
change in customer satisfaction and change in profits / sales, the positive relationship between
changes in employee satisfaction and changes in business profits, and a strong relationship between
employee satisfaction and customer satisfaction at all times. Lawzi (1995), financial incentives are
convinced with the basic needs of the people, staff work for promoting how best to work, writing
their strengths and level of competitiveness such as wages, bonuses, allowances, profit sharing and
rewards.
Jadallah (1997) defined monetary rewards as all means of payment on the basis of increase and
improvement productivity where all will earn more. While the case is in the quantitative or quality
production, the employee withdraws the acquisition of partial or total incentives.
Bailey, Brown & Cocco (1998) study the effects of contingency incentives per coin and target in
relation to fixed pay, initial performance and subsequent rate of improvement in a mounting task.
They found that overall performance and initial, but not improved rate, are higher in incentive
compensation groups. Two factors may explain the lack of differential improvement rates. The
distribution of effort, since the improvement of the initial performance may be simpler than the
improvement of the additional performance; and the nature of these typical incentive plans that do
not directly reward improvement.
Al-Aydi (2000) examines the impact of incentives on the performance of the textile industry in Iraq.
It turned out that there was a weak relationship between the incentive system and the performance
level and between the wage system and the performance level. So there is a strong correlation
between rewards and the level of financial performance and the level of performance.
Robinson et al. (2004) suggests that the commitment or behavior of organizational citizenship
adequately reflects two aspects of participation - both in their bi-directional nature and to what
extent staff members are expected to have an element of commercial awareness, although
participation appears to overlap with two concepts. Rafferty et al. (2005) also identify the
participation of staff and the two former concepts - the commitment and behavior of organizational
citizenship on the basis that participation clearly indicates that it is a bi-directional reciprocal
process between the staff member and the organization.

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3. METHODOLOGY
3.1 DATA COLLECTION:
We have collected the primary data by help of structured questionnaires. This questionnaire
contains 22 questions and the responses are designed on likert scale i.e. strongly agree, agree,
neutral, disagree and strongly agree. The survey questionnaires were distributed among 200
employees working in textiles companies in Mumbai.
3.2 DATA ANALYSIS
Table 1: Descriptive Statistics
Question Frequency
N
Min. Max. Mean Std.
Deviation
Skewness
Static Std.
Error
Q.1 180 1 5 2.43 0.935 0.516 0.181
Q.2 180 1 34 2.73 2.552 10.401 0.181
Q.3 180 1 5 2.01 0.846 0.483 0.181
Q.4 180 1 5 2.57 0.865 0.428 0.181
Q.5 180 1 5 2.64 1.051 0.530 0.181
Q.6 180 1 22 2.55 1.725 8.138 0.181
Q.7 180 1 5 2.30 0.845 0.396 0.181
Q.8 180 1 5 2.13 0.789` 1.112 0.181
Q.9 180 1 8 2.47 1.409 2.691 0.181
Q.10 180 1 5 2.28 0.887 0.557 0.181
Q.11 180 1 5 2.48 0.880 0.448 0.181
Q.12 180 1 5 2.47 0.930 0.440 0.181
Q.13 180 1 5 2.60 0.952 0.554 0.181
Q.14 180 1 32 2.88 2.759 8.227 0.181
Q.15 180 1 5 2.19 0.934 0.517 0.181
Q.16 180 1 5 2.67 0.897 0.663 0.181
Q.17 180 1 5 2.72 0.942 0.392 0.181
Q.18 180 1 5 2.64 0.889 0.247 0.181
Q.19 180 1 5 2.30 0.865 0.635 0.181
Q.20 180 1 5 2.73 1.0181 0.468 0.181
Q.21 180 1 5 2.60 0.968 0.493 0.181
Q.22 180 1 5 2.30 0.957 0.450 0.181

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3.3 TEST TO DETERMINE IF TRAINING HAS A ROLE TO PLAY IN CUSTOMER
SATISFACTION
H01: There is no significant impact of employee training on customer satisfaction
H1: There is significant impact of employee training on customer satisfaction
Table 2: Pearson Correlation
3.4 ANALYSIS OF VARIANCE (ANOVA) IN BETWEEN EMPLOYEES TRAINING AND
CUSTOMER’S SATISFACTION
Table 3: ANOVA Test
Model Sum of
Square
Degree of
Free
Mean
Square
F Significance
1 Regression 2.943 1 2.943 3.499 0.063a
Residual 149.703 178 0.841
Total 152.644 179
a. Predictors: (Constant), Employee satisfaction is necessary to enhance customer satisfaction
b. Dependent Variable: When employees are trained, the speed and efficiency at which employees
respond to customers requests is quick and satisfactory.
3.5 COEFFICIENTS: EMPLOYEES TRAINING & CUSTOMER SATISFACTION
Q.1 (Employee
Training)
Q.11
(Customer
Satisfaction)
Q.1
(Employee
Training)
Pearson Correlation 1 0.139
Significance (Two –Tailed) 0.063
Frequency (N) 180 130
Q.11
(Customer
Satisfaction)
Pearson Correlation 0.139 1
Significance (Two –Tailed) 0.63
Frequency (N) 180 180

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Table 4: Coefficients Analysis
Model Unstandardized
Coefficients
Standardized
Coefficients
B Standard
Error
Beta t Significance
H1 Constant 2.098 0.208 10.298 0.000
Employeesatisfactionis
necessarytoenhance
customersatisfaction
0.145 0.078 0.138 1.873 0.063
Dependent Variables: When employees are trained, the speed and efficiency at which employees
respond to customers requests is quick and satisfactory.
3.6 RESULTS INTERPRETATION
Unstandardized coefficients indicated how much the dependent variable varies with an independent
variable, when all other independent variables are held constant. The beta coefficients indicated that
how and to what extent employee training influence customer’s satisfaction. It has been found that,
responsiveness (beta =.145, t=1.873, p<0.05)
The tables that the significance level is 0.063 which is greater than 0.05 so the null hypothesis
(Ho1) does not reject which indicates that it is not necessary that trained staff only increase
customer satisfaction much of the other inputs also required to increase customer satisfaction. Many
times it has been found that the companies have imparted adequate training to their employees but
because of low job satisfaction and lack of motivation they do not engage with their customers and
not able to satisfy them. There is no doubt that training is vital input for better customers service
but as we have seen it is not the only variable for customer’s satisfaction.
3.7 TEST TO DETERMINE IF MONETARY REWARDS TO EMPLOYEES HAS A ROLE
TO PLAY IN CUSTOMER SATISFACTION
H02: There is no significance of monetary rewards to employees on customer satisfaction level.
H2: There is significance of monetary rewards to employees on customer satisfaction level.
Table 5: Pearson Correlation
Q.3 Q.15
Q.3 Pearson
Correlation
1 0.026
Significance (Two –Tailed) 0.734
Frequency (N) 180 180
Q.15 Pearson Correlation 0.026 1
Significance (Two –Tailed) 0.734
Frequency (N) 180 180

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3.8 ANALYSIS OF VARIANCE ( ANOVA) IN BETWEEN MONETARY REWARDSTO
EMPLOYEES & CUSTOMER SATISFACTION
Table 6: ANOVA Test
Model Sum of Square Degree of
Free
Mean
Square
F Significance
1 Regression 0.083 1 0.083 0.116 0.734a
Residual 127.978 178 0.719
Total 127.978 179
a. Predictors : (Constant),Employee rewards give them direction to perform effectively and
higher customer satisfaction
b. Dependent Variable: The company provides services as it promises to do so, increases
customers satisfaction
3.9 COEFFICIENTS: MONETARY REWARDS TO EMPLOYEES & CUSTOMER
SATISFACTION
Table 7: Coefficients Analysis
Model Unstandardized
Coefficients
Standardized
Coefficients
B Std.
Error
Beta t Significance
H1 Constant 1.960 0.162 12.124 0.000
Employeerewards
givethemdirectionto
performeffectively
andhighercustomer
satisfaction
0.023 0.068 0.026 0.341 0.734
a. The company provides services as it promises to do so, increase customer satisfaction
3.10 RESULT INTERPRETATION
In reference to the tables, the level of significance is 0.734 which is greater than 0.05 and therefore
the null hypothesis (H02) fails to reject which indicates that the financial incentives to employees
did not lead to customer satisfaction. If the organizations motivate their employees through
financial or other non financial incentives but if the employee is not sufficiently qualified &
competent enough in both technical as well as emotionally to respond and meet customers'
requirements easily as a result, it leads poor customer satisfaction. The financial incentives are not
enough recognition to enhance staff morale and satisfaction, and therefore organizations may
increase morale staff, by providing promotions, long-term non financial benefits that enhance
employee satisfaction leading to high customer satisfaction. Only employee motivation is not
enough for higher customer satisfaction also employee on job training, Competency assessments,
coaching and mentoring is also play essential task to enhance customer satisfaction.
(Aldubekhi,1991) Financial incentives alone are not granted, unless they are supported by other
incentives. Their impact is limited to meeting the biological needs of individuals and has little

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impact after reaching the limit of needs, thus cannot be financially motivated to contribute in
increasing production except for a certain amount based on their efforts
4. LIMITATIONS AND FUTURE DIRECTIONS
This study has limitations which are also open to thought for further work in this research stream.
This study limits its scope to quality-related training, leaving aside other forms of training which
are likely to have a positive effect on outcomes. This study is also fully aware of the commonly
used variables with different terms; but these are likely to refer to the similar coin, such as that of
employee engagement and employee participation. At this point, a closer look may provide new
insight into what may be fruitful for future research. This study also acknowledges that employee
satisfaction and customer satisfaction are an outcome of many variables, other than employee
training and employee participation. Future research may also test a refined theoretical framework
by taking into consideration other factors regarding employee satisfaction - such as reward systems,
job requirements, work schedules and the like.
5. RESEARCH SUMMARY
Employees have an essential role in strategizing the satisfaction of customers, particularly in service
organizations. They are people who are mutually interacting with customers; and, in most cases,
they are the first to understand their customers’ reactions.
The findings of research concluded that customer’s satisfaction cannot be achieved only by
providing training to employees or distributing financial incentives or over all motivation of
employees. There should be mix of all these vital inputs together for a sustainable customer’s
satisfaction. Companies should develop the hr policies such a way that every employee feel
connected and engaged with of the organanisational goals. Organizations may increases employee
morale, by providing promotions, inducement, long-term benefits that boost employee satisfaction
which lead elevated customer satisfaction.
6. REFERENCE
i. Allen, D. R. & American society for, Q. (2004) customer satisfaction research management: a
comprehensive guide to integrating customer loyalty and satisfaction metrics in the
management of complex organizations. Milwaukee, asq quality press.
ii. Al-Aydi, K. (2000). Impact of Incentives on Performance in Public Firms of Cotton Industry
in Iraq: a field Study. Master Thesis. Al al-Bayt University, Mafraq, Jordan
iii. Banker, R. D., Konstans, C. & Mashruwala, r. (2000) a contextual study of links between
employee satisfaction, employee turnover, customer satisfaction and financial performance.
Unpublished manuscript, university of texas at dallas.
iv. Bailey, C. D., Brown, L. D., & Cocco, A. F. (1998). The Effects of Monetary Incentives on
Worker Learning and Performance in an Assembly Task. Journal of Management Accounting
Research, 10, 119-131.
v. Haines, V. Y., Jalette, P., Larose, K., 2010. The influence of human resourcemanagement
practices on employee voluntary turnover rates in the Canadian nongovernmental sector.
Industrial and Labor Relations Review, 63(2), pp.228-246
vi. Huselid, M. A., 1995. The Impact of Human Resource Management Practices on Turnover,
Productivity and Corporate Financial Performance, Academy of Management Journal, 38,
pp.635–672
vii. Johnson, j. W. (1996) linking employee perceptions of service climate to customer
satisfaction. Personnel psychology, vol.49, pp.831-851
viii. Jadallah, M. (1997). The Impact of Incentives in Raising the Efficiency of Workers.
Management Development, 56 (51), 34-46.

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ix. Lawzi, M. (1995). Individuals' Attitudes Working in Public Institutions in Jordan towards Job
Incentives,Derasat, Humanities Studies, 22a (6), 759-785.
x. Robinson d., perryman s., and hayday s. (2004). The drivers of employee engagement report
408, institute for employment studies, uk
xi. Rafferty a. M., maben j., west e., and robinson d. (2005). What makes a good employer? Issue
paper 3 international council of nurses geneva
xii. Xu, y. & goedegeburre, r. (2005) employee satisfaction and customer satisfaction: testing the
service-profit chain in a Chinese securities firm. Innovative marketing journal