The effects of Employee satisfaction on Productivity, Performance, Research Paper

The effects of Employee satisfaction on Productivity, Performance, Customer satisfaction and the organization financial performance - Research Paper Example Any changes caused to any one of the above parameters may have strong impacts upon other parameters. Even though an organization may have lot of resources, human resources or the employees seem to be the most vital one because of the necessity of employees in mobilizing all the other organizational resources. In other words, employee performance and productivity is linked with the mission, vision, objectives and goals of the organization. Only the satisfied employee may deliver his maximum productivity for the betterment of the organization. Dissatisfied employees may not perform well and their reluctance in delivering the goods, may affect the customers of the organization. Dissatisfied employees may not treat the customers well which may result in dissatisfaction of the customers and the subsequent drop out of customers. The loss of customers may cause heavy financial damages to the organization. In short, employee performance can make or break an organization. This paper analyses the importance of employee satisfaction and its impacts on Productivity, Performance, Customer satisfaction and the organization financial performance.... re are direct and quantifiable links between customer service variables (such as satisfaction and loyalty), employee variables (such as satisfaction, enthusiasm, loyalty, commitment, capability, and internal service quality), and financial results (Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction, 2003, p.1) Employees are the only active element in an organization. All the other organizational resources are passive and need the support of human element to deliver the goods. In other words employees are the drivers who drive the organizational resources in a particular direction to meet the organizational goals. If the drivers or the employees are incapable of driving the vehicle properly, it is difficult for the organization in reaching the target or meeting the goals. Only the satisfied drivers will keep the vehicle in good condition by driving the vehicle safely and effectively. Dissatisfied drivers will never bother much about the conditions of the vehicle or the negative impacts of crazy driving habits. Proper driving will help the vehicle owner to reduce maintenance cost of the vehicle which will increase his profits. â€Å"The Watson Wyatt Worldwide Human Capital Index study suggests that effective human resources practices lead to positive financial outcomes more often than positive financial outcomes lead to good practices† (Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction, 2003, p.2). Many people often raise the question - which one evolved first; hen or egg? The same question is asked in the organizational world also – whether good human management practices lead to better organizational performances or better organizational performances lead to good human management practices? The