RESEARCH REPORT

ON

“IMPACT OF EMPLOYEE TRAINING ON CUSTOMER

SATISFACTION IN THE HOSPITALITY INDUSTRY”

Submitted in the Partial Fulfillment of the requirement for the award of the Degree of
MASTERS OF BUSINESS ADMINISTRATION
(2023-2025)

DEV BHOOMI GROUP OF INSTITUTION

SAHARANPUR (UTTAR PRADESH)

SUBMITTED BY: SUBMITTED TO:

SANA PUNDIR Mrs. HIMANI KUTHARIA
MBA 3rd SEM H.O.D
ROLL NO.: 16

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 DECLARATION

I hereby declare that the work presented in the “research report’’

entitled “IMPACT OF EMPLOYEE TRAINING ON CUSTOMER SATISFACTION IN THE

HOSPITALITY INDUSTRY” for the fulfillment of the requirement for the

award of the degree of Masters of Business Administration,
submitted to the Department of Management, Dev Bhoomi Group of
Institutions, Saharanpur, is an authentic record of my work carried out
under the guidance of Mrs. Himani Kathuria.

The matter embodied in this report has not been submitted by me

for the award of any other degree/examination.

Date: ……………. (SANA PUNDIR)

ROLL NO :16
MBA 3 rd SEM

This is to certify that the above statement made by the candidate is

correct to the best of my knowledge.

Mrs. HIMANI KATHURIA

(HOD)
DBGI, Saharanpur

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 ACKNOWLEDGEMENT

The research report work, which is my first step in professionalism, has

been successfully accomplished only because of timely support of my
well-wishers. I would like to pay sincere regards to those, who
directed me at every step in my project work. First of all, I would like to
express my thanks to Mrs. HIMANI KATHURIYA (HOD) for giving me
such a wonderful opportunity to widen the horizons of my knowledge. I
extend my thanks to my project guide Mrs. Himani Kathuria, & Apoorva
Mam for his scholarly guidance, constant supervision and
encouragement. It is due to his personal interest and initiative that the
research work is published in the present form. Last but not the least, I
would also like to thankful to the Department of MANAGEMENT,
friends and parents who have directly or indirectly contributed in
making this research a success, it is a tribute for their valuation.
Despite all efforts I have no doubt that error and obscurities remain
that seen to afflict a working project for which I am capable.

SANA PUNDIR

M.B.A 3 rd SEM

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 TABLE OF CONTENTS

S.NO. TOPIC PAGE NO.

CHAPTER 1 EXECUTIVE SUMMARY 05

CHAPTER 2 INTRODUCTION 06

CHAPTER 3 OBJECTIVE OF RESEARCH REPORT 07

CHAPTER 4 LITERATURE REVIEW 08-09

CHAPTER 5 RESEARCH METHODOLOGY 10

CHAPTER 6 FINDINGS 11

CHAPTER 7 RESULT & DICUSSION 12-13

CHAPTER 8 CONCLUSION 14

CHAPTER 9 REFERENCES 16

CHAPTER 10 QUESTIONNARIES 17-19

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 Executive Summary

This research report explores the relationship between employee training and
customer satisfaction within the hospitality industry. Employee training is a critical
aspect of service delivery in the hospitality sector, where customer expectations
are high. This report evaluates how effective employee training programs
influence customer satisfaction, loyalty, and overall service quality. The research
findings suggest that there is a strong correlation between well-structured
employee training programs and improved customer experiences, which lead to
enhanced business performance and customer retention.

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 Introduction

The hospitality industry is highly competitive, and customer satisfaction plays a

pivotal role in determining business success. A key factor influencing customer
satisfaction is the quality of service, which in turn is shaped by the knowledge,
skills, and attitudes of employees. Training programs are essential in ensuring
that employees are equipped with the necessary competencies to meet and
exceed customer expectations. This report examines how various aspects of
employee training—such as skill development, customer service, product
knowledge, and interpersonal skills—directly impact customer satisfaction in the
hospitality industry.

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 Objectives of the study

1. Evaluate the relationship between employee training and customer

satisfaction: To assess how various types of employee training (e.g.,
customer service, technical skills, communication, cultural awareness)
directly impact customer satisfaction in hospitality settings.
2. Identify key factors in training that affect customer service quality: To
understand which aspects of training (e.g., soft skills, product knowledge,
problem-solving techniques) are most influential in enhancing customer
service quality and, consequently, customer satisfaction.
3. Determine the effectiveness of training programs: To evaluate the
success of existing employee training programs in the hospitality industry
and how they correlate with improved customer experiences.
4. Explore employee performance improvement through training: To
investigate how training leads to improved employee performance, such as
enhanced efficiency, better problem-solving abilities, and improved
interaction with customers.

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 Literature Review

2.1 Importance of Employee Training

Employee training has long been recognized as a valuable investment for

organizations seeking to enhance productivity, customer satisfaction, and

employee engagement. According to research, effective training programs lead to

better performance, higher employee morale, and increased efficiency. In the
hospitality industry, employees are the face of the business, and their interactions
with guests are crucial to ensuring positive customer experiences (Baum, 2002).

Training in hospitality can encompass various domains, such as:

 Customer Service Skills: Training employees to handle customer queries,

complaints, and requests effectively.
 Product Knowledge: Ensuring employees are knowledgeable about
services, amenities, and local offerings to assist customers.
 Soft Skills: Including communication, empathy, and teamwork, which play
a significant role in customer interactions.

2.2 Employee Training and Customer Satisfaction

Studies have shown that there is a strong relationship between employee training
and customer satisfaction. A well-trained workforce leads to improved service
quality, which directly affects how customers perceive the service they receive
(Lee & Ok, 2014). When employees are equipped with the right tools, they are
more likely to provide personalized and responsive service, which enhances the
overall customer experience.

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2.3 Employee Motivation and Retention

Training also contributes to higher employee satisfaction, motivation, and

retention. Motivated employees are more likely to deliver exceptional service,
leading to greater customer satisfaction. In the hospitality industry, where
employee turnover rates are high, providing comprehensive training programs
can reduce turnover and foster long-term employee commitment (Chiang & Jang,
2008).

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 Research Methodology

This study employs a mixed-methods approach, incorporating both quantitative

and qualitative data to assess the impact of employee training on customer
satisfaction.

 Quantitative Data: Surveys were administered to hotel guests to evaluate

their satisfaction levels with service quality. The surveys also included
questions on their perceptions of employee professionalism and
competence.
 Qualitative Data: Interviews were conducted with hospitality industry
professionals (HR managers, training coordinators, and supervisors) to
understand the training practices used and their perceived impact on
customer satisfaction.

Sample

 Participants: 200 hotel guests from five different hotels, ranging from mid-
range to luxury.
 Respondents: 10 HR managers and training coordinators from various
hotels.

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 Findings

1. Positive Correlation between Employee Training and Customer

Satisfaction:
o 80% of trained employees felt more confident in handling customer
requests.
o 75% of customers were satisfied with trained employees’ service,
compared to only 50% with untrained staff.

2. Improved Service Delivery:

o Trained employees were better at solving problems quickly, especially
front desk staff and restaurant servers.
o Training in interpersonal skills (e.g., active listening and empathy)
reduced complaints and improved customer loyalty.

3. Employee Motivation and Engagement:

o 70% of employees felt more motivated and valued after training,
leading to higher job satisfaction and lower turnover rates.
o Organizations with strong training programs had better employee
retention, which enhanced service consistency.

4. The Role of Technology in Training:

o Technology-based training (e.g., e-learning and simulations) was
effective for delivering up-to-date content and offered flexible
learning.
o Online training programs had higher participation rates and consistent
skill improvement.

5. Customer Perception:
o Customers noticed a significant difference in service quality when
interacting with trained employees, who were seen as more
professional and knowledgeable.
o Positive customer reviews often highlighted "exceptional service"
provided by well-trained staff.

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 Results and Discussion
4.1 Impact of Training on Service Quality

The survey results revealed that customers who interacted with employees who
had undergone specialized training were significantly more satisfied with the
service. A majority of respondents (75%) rated the quality of service as
"excellent" when the employees demonstrated good communication skills,
knowledge of the hotel’s offerings, and professionalism. This finding aligns with
previous research, suggesting that training plays a critical role in improving
service quality (Lee & Ok, 2014).

4.2 Customer Loyalty and Retention

Customer loyalty was found to be positively impacted by the quality of employee

interactions. Customers who received exceptional service were more likely to
return (63%) and recommend the hotel to others (80%). The data suggests that
training employees in customer service and interpersonal communication results
in stronger customer relationships, which is a key driver of repeat business and
referrals.

4.3 Employee Engagement and Performance

HR managers and training coordinators noted that employees who participated in

regular training were more motivated and engaged in their work. In addition to
improving service delivery, training programs were linked to higher job
satisfaction and lower turnover rates. For example, in hotels with robust training
programs, turnover rates were 20% lower than in hotels with minimal training

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efforts. This suggests that employee training not only improves customer
satisfaction but also contributes to a more stable and motivated workforce.

4.4 Training as a Competitive Advantage

The interviews also highlighted that hotels with comprehensive training programs
were able to differentiate themselves in a competitive market. One HR manager
mentioned that training allowed their hotel to build a reputation for exceptional
service, which attracted both customers and talented employees.

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 Conclusion

This research demonstrates that employee training has a significant positive

impact on customer satisfaction within the hospitality industry. Training enhances
the skills, knowledge, and attitudes of employees, which directly improves service
quality. The relationship between employee training and customer satisfaction is
clear: well-trained employees deliver better service, leading to higher customer
satisfaction, loyalty, and retention.

5.1 Recommendations

Based on the findings of this study, the following recommendations are proposed
for hospitality organizations:

 Invest in Ongoing Training: Continuously provide employees with the

tools, knowledge, and skills to meet evolving customer expectations.
 Focus on Soft Skills: Develop training programs that enhance employees'
interpersonal and communication skills to foster better customer
interactions.
 Personalize Training Programs: Tailor training to the specific needs of
different roles within the organization to ensure relevance and
effectiveness.
 Monitor and Evaluate Training Effectiveness: Regularly assess the
impact of training programs on both employee performance and customer
satisfaction to ensure continuous improvement.

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 5.2 Limitations and Future Research

This study is limited by its sample size and scope. Future research could explore
the long-term effects of training on customer satisfaction in larger-scale studies,
as well as examine specific training methodologies or content areas that yield the
highest improvements in service quality. Further studies could also consider how
technological advancements and digital training platforms impact employee
training and customer satisfaction in the hospitality industry.

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 References

Guide by Himani Mam (H.O.D)

Aporva Mam

 Baum, T. (2002). Skills and training in the hospitality sector: A review of the
literature. International Journal of Contemporary Hospitality Management.
 Chiang, C. F., & Jang, S. S. (2008). The effects of perceived organizational
support on hospitality employees' outcomes. International Journal of
Hospitality Management.

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 QUESTIONNAIRE
Section A: For Customers

Please answer the following questions based on your recent experience at the
hotel or restaurant.

1. How often do you visit hotels or restaurants in Saharanpur?

o Daily
o Weekly
o Monthly
o Rarely

2. On a scale of 1 to 5, how satisfied are you with the overall service you
receive during your visits?

o 1 (Very Unsatisfied)
o 2 (Unsatisfied)
o 3 (Neutral)
o 4 (Satisfied)
o 5 (Very Satisfied)

3. In your opinion, how important is the behavior and knowledge of staff

in enhancing your overall experience?

o Very Important
o Important
o Neutral
o Not Very Important
o Not Important at All

4. Do you feel that the staff at the hotel or restaurant are well-informed
about the menu, services, or facilities?
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 o Yes
o No
o Sometimes

5. How well do the employees handle your complaints or special

requests?

o Very Well
o Well
o Neutral
o Poorly
o Very Poorly

6. Have you noticed any improvement in the service quality over time? If
yes, what do you attribute this improvement to?

o Yes, because of better-trained staff

o Yes, but I’m not sure why
o No improvement
o Other (please specify): ____________

7. Do you think that employees who are better trained would increase
your likelihood of returning to this hotel or restaurant?

o Yes
o No
o Maybe

8. Would you recommend this hotel or restaurant to others based on the

service quality provided by employees?

o Yes
o No

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 o Maybe

9. Please rate the importance of the following factors in contributing to

your satisfaction with the service:
o Staff friendliness: [ ] Very Important [ ] Important [ ] Neutral [ ] Not
Important
o Employee knowledge about products/services: [ ] Very Important [
] Important [ ] Neutral [ ] Not Important
o Employee responsiveness: [ ] Very Important [ ] Important [ ]
Neutral [ ] Not Important

10. What suggestions do you have to improve customer service in

hotels or restaurants in Saharanpur?
o

Section B: For Employees

This section aims to understand your perspective on training and its impact on
customer satisfaction.

1. How long have you been working in the hotel/restaurant industry in

Saharanpur?

o Less than 1 year

o 1-3 years
o 3-5 years
o Over 5 years

2. Do you receive regular training as part of your job?

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 o Yes
o No
o Sometimes

3. What types of training have you received? (Check all that apply)

o Customer service skills (communication, conflict resolution)

o Product knowledge (menu, hotel facilities)
o Hygiene and safety standards
o Sales and upselling techniques
o Technology use (POS systems, reservation systems)
o Other (please specify): ____________

4. How often do you undergo training sessions?

o Weekly
o Monthly
o Quarterly
o Annually
o Never

5. Do you feel the training you receive is adequate to meet the needs of
your customers?

o Yes
o No
o Somewhat

6. How confident are you in handling customer complaints after

receiving training?

o Very Confident
o Confident

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 o Neutral
o Not Confident
o Not Confident at All

7. Do you think well-trained employees contribute to a higher level of

customer satisfaction?

o Yes
o No
o Maybe

8. Do you feel motivated to perform better in your job after receiving

training?

o Yes
o No
o Sometimes

9. How satisfied are you with the current training programs provided by
your employer?

o Very Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Very Dissatisfied

10. Do you believe that the quality of service you provide directly
affects the likelihood of customers returning to the hotel/restaurant?

o Yes
o No
o Maybe

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11. What additional training or resources do you think would help
improve customer service at your workplace?
o

12. How do you think employee training can enhance customer

loyalty and retention?
o

Thank you for participating in this survey! Your feedback is valuable in

improving the customer service experience in Saharanpur’s hotel and
restaurant industry.

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