ACKNOWLEDGEMENT

I take this opportunity to thank all the people who helped me with valuable inputs,
guidance and suggestions during my tenure of dissertation, without which this report
would not have taken its final shape. I would like to express gratitude to Asst. General
Manager Ms. RITU CHAUDHARY (MAHANAGAR TELEPHONE LIMITED,
ROHINI, and NEW DELHI) for giving me this opportunity to do my dissertation with
MTNL.
This acknowledgement would be incomplete without thanking the institute Director Dr
S.N MAHESHWARI and my project guide MS.RITIKA MAHESHWARI whose
timely guidance and support at needed time made the undertaking of this project an
enriching learning experience.
OBJECTIVES

• To ascertain customer preferences of landline and mobile services.

• To analyze costumer satisfaction and opinion with reference to mtnl.

• To ascertain customer satisfaction level for mobile services and landline

services.

• To learn about the brand attributes and their preferences in mtnl.

• To suggest some important guidelines to mtnl in order to provide better

focused services.

• To study the effect of employee satisfaction on customer retention.

2.1 STATEMENT OF PROBLEM
A study has been conducted in order to understand the Customers opinion and
Satisfaction level
Of various Landlines and Mobile Service through the research entitled:

“A STUDY ON CUSTOMER SATISFACTION FOR MTNL PRODUCTS AND SERVICES

AND IMPACT OF EMPLOYEE SATISFACTION ON CUSTOMER RETENTION”

2.2 PURPOSE OF THE STUDY

Basically conducted to measure Customer Satisfaction but besides this it was also
important to understand the following crucial aspects related to:

Customer

• Customer’s recommendations
• Their experience
• Feedback on maintenance charge.

Employees

• Handling of complaint calls.

• Response time.
• Knowledge of the employees (Personal bankers and tellers).
• Repeat calls encounter.
CHAPTER2

COMPANY PROFILE
1986
- On 28th February Mahanagar Telephone Nigam Ltd. was incorporated as a Public
Limited Company under the Companies Act, 1956. The company has been set up to
take over the management, control and operation of Delhi Telephone District
(Excluding public telegraph service) and Mumbai Telephone District of the
Department of Telecommunications and to plan, establish, develop, provide, operate
and maintain all types of telecommunication services including Telephone, telex,
wireless, data communication, telemetric and other like forms of communication.
- One of the important objectives of the company is to raise the necessary finance to
meet its own developmental needs and also that of the telecommunications board of
the Department of Telecommunication.
- The Main objectives and aims of Nigam are as follows:
(1) To upgrade the quality of telecom services
(2) To expand telecom
(3) To raise necessary financial resources
(4) To provide new telecommunication services, particularly needed by the business
community and public administration such as Cellular Mobile Radio Telephone, Radio
Paging, Facsimile Videotext, Teletext, Electronic Mail etc.
(5) To invest in Human Resource Development

1995
- The entire junction network in the system was fiber based on a step to provide self
healing mechanisms to be built in the System through induction of SDH technology.

1996
- The Company floated on private placement basis 11th `A' part and 12th Series of
bonds aggregating Rs 359.26 crores for the developmental programmers of the
department of telecommunications.

1997
- The Company took various steps to provide a host of value added services like
datacom, inet, DIDPABX, Voice Mail, Radio Paging and ISDN.
- In addition to phone plus facilities like dynamic locking, call waiting/call transfer,
hot line etc. were extended to valued customers. Apart from this IVRS (Interactive
Voice Response System) like local assistance changed number information, and fault
booking system ensuring round the clock service, a CD-ROM version of the telephone
directory and an on-line directory enquiry through PC was introduced during the year.
- The Company undertook to provide, wireless in the local loop in Mumbai and Delhi,
GSM Mobile Telephone in Delhi and Mumbai, B.CDMA pilot project, Induction of
Smart Payphone and introduction of DLC optical fiber borne system.
- Payment of bills was made Hassel free with the introduction of electronic clearing
system and customer service management system for on-line payment and adjustment
of telephone bills.

1998
- As on 31st March, the waiting list of the MTNL has 1047 in Delhi and Nil in
Mumbai due to its sustained efforts and timely implementation of various projects.
- Mahanagar Telephone Nigam Ltd is considering a proposal to reduce the security; a
Wireless in Local Loop (Will) subscriber has to pay to Rs 15,000 from Rs 25,000.
- MTNL has proposed that a WiLL subscriber's bank can stand guarantee for this
security, effectively ensuring that there is no real outflow from the subscriber's
pockets.
- The Mahanagar Telephone Nigam Ltd (MTNL) board has approved a proposal for
setting up a joint venture company with the Telecom Consultants India Ltd (TCIL) for
operating basic and cellular services.
- The Mahanagar Telephone Nigam Ltd (MTNL) is developing software to protect
customers from telephone tapping and reading by external sources.
- Mahanagar Telephone Nigam Ltd (MTNL) launched the country's first toll-free
service in Delhi.
- MTNL will set up an integrated commercial accounting system with help from Tata
Consultancy, Services.
- The state-owned Mahanagar Telephone Nigam Ltd (MTNL) is all set to give a run to
private cellular operators for their money by launching a "low-tariff" mobile telephone
service to cater to the salaried middle-class and students.
- In the polls, MTNL secured the awards of the 10th best international equity issue of
1997; fourth best Asian equity issue of 1997; and second best Indian equity issue of
1997.
- Mahanagar Telephone Nigam Ltd., is undertaking a restructuring plan to ward off
competition and streamline costs.
- Mahanagar Telephone Nigam Ltd (MTNL) is holding parleys with banks, FIs and
mutual funds for making a private placement of bonds worth Rs.450 crore.

2002
-Announces its launch of Wireless in Local Loop (WLL) service in Mumbai
-Launches its pre-paid cellular card "Trump" with tariffs 50 per cent lower than that of
the private players in Delhi and Mumbai
-MTNL launches new schemes for ISDN subscribers
-MTNL unveils SMS facilities on its landlines for its customers
-MTNL bags license to offer telecom services in Mauritius, Kenya
- MTNL and BSNL have entered into a strategic alliance, under which the two public-
sector telecom companies will jointly offer their voice and data services
-MTNL Ltd. has informed that Sh. A. K. Girotra, and Sh. R.L. Dubey, Executive
Director, Delhi and Mumbai respectively have been appointed as ex-officio directors
on the Board of MTNL w.e.f. December 19, 2003.
-Mahanagar Telephone Nigam Ltd (MTNL) on January 09, 2004, announced a special
tariff plan for basic service users with Rs 160 monthly rental aiming at low end users.
Under this special plan, there would be no free calls as available under other tariff
packages.
-MTNL unveils value added services (VAS) for landline customers in Mumbai

2008
-Mumbai: Mahanagar Telephone Nigam Ltd has joined hands with Contakt Tech
Solutions India for Express alert, a new value added service for MTNL subscribers
- MTNL ha launched the next generation 3G technology-based telecom services in
Delhi. The service was inaugurated by Prime Minister Manmohan Singh by receiving
a video call from Telecom Minister A Raja, who was also present at the function.
- Mahanagar Telephone Nigam Ltd has joined hands with Contakt Tech Solutions
India for Express alert, a new value added service for MTNL subscribers. MTNL's
customers will get astrology, news, stock, etc alerts by subscribing to these services.

2009
-MTNL to launch 3G Services in Mumbai

EXECUTIVE SUMMARY

MTNL was set up on 1st April, 1986 by the Government of India to upgrade the
quality of telecom services, expand the telecom network, and introduce new services
and to raise revenue for telecom development needs of India’s key metros. Delhi, the
political capital and Mumbai, the business capital of India. In the past 20 years, the
company has taken rapid strides to emerge as India’s leading and one of Asia’s largest
telecom operating companies. Besides having a strong financial base, MTNL has
achieved a customer base of 5.92 million as on 31st March 2006.

MTNL has good brand awareness among the people. This could be attributed to its
long history in the market and continued support from the Government. In today’s
competitive world, MTNL has to provide excellent services to attain a major market
Share and keep their Customers satisfied in all aspects.
This research study is useful for MTNL to understand the expectations and
requirements of
Customers and can serve them in a better way.

CHAPTER3

SERVICES OFFERED BY MTNL:

1) INTELLIGENT NETWORK
FREE PHONE SERVICE:

This service is commonly known as toll free service and provides an ideal opportunity
for business promotion.
By subscribing to this service Business, Commerce, Industry and Trade can advertise
and sell their products and services on telephone - telemarketing is the fastest means of
improving revenues. Those who subscribe to this service are called FPH subscribers
and are allotted FPH numbers. One FPH number can have multiple telephone numbers
with hunting facility. The service can be provided on existing telephone connections.

FEATURE AND FACILITIES:

REVERSE CHARGING: The service provides for called party charging (reverse
charging) i.e. caller can call the FPH number free of charge.

CALL FORWARDING: The service has the facility of re-routing of incoming calls
to an alternate number if FPH subscriber's line is busy or there is no answer.

TIME DEPENDENT ROUTING: The service also provides time dependent routing
which enables the FPH subscriber with one FPH number to have several telephone
installations in the network and specify flexible routing or different call treatments
depending upon time, day, date and holiday.

ORIGIN DEPENDENT ROUTING: It also provides location dependent routing

whereby FPH subscribers can have several installations (or several directory numbers)
and can specify flexible routing depending upon the area of origination of incoming
calls.

ORIGINATING CALL SCREENING: The facility is available nationwide where

IN C-Dot is available. In case the subscriber wishes to have calls from other stations to
Delhi or vice-versa, the subscriber has to pay STD charges for such calls. This facility
can be provided on a written request from the subscriber.

2) INTERNET SERVICES:
MTNL is presently offering a wide spectrum of Internet related services from Dial up
Internet access to broadband Internet access services in Delhi and Mumbai.

PREPAID INTERNET ACCESS SERVICE

PSTN Dial up provides internet access using local telephone line. Access number for
this service is 172230.Two types of tariff plans are available one being the Dialup
hourly usage plan and other is unlimited usage plan.

ISDN Dial up provides internet access using ISDN line. Two types of tariff plans are
available for this service, Dialup hourly usage plan and Flat usage plan.
Email facility and Free web space of 2MB is provided with prepaid dialup internet
connections.
POST PAID INTERNET EXPRESS CLIENT SERVICE:
PSTN Dial up -MTNL is providing CLI based Internet Express Service for PSTN
users in Delhi & Mumbai. Access number for this service is 172231, Username is the 8
digit Telephone No of the connected telephone line and password is any
character/word.
ISDN Dial up- MTNL is providing CLI based Internet Express Service for ISDN users
in Delhi & Mumbai. Access number for this service is 172232, Username is the 8 digit
Telephone No of the connected telephone line and password is any
character/word.

Free web to mobile for MTNL GSM Mobile subscribers

MTNL has launched free Web to Mobile service for all its Mobile users. User can
just register and start availing the service. The URL of the service is
Internet Telephony Service
IP based Internet telephony Boll An mol service is provided by MTNL for making
International Telephone calls. MTNL is offering this service at lowest rate of Rs 3.00
per minute for calls to USA, UK, Canada, Singapore and Australia. This service is
based on two types of dialers as below
Downloadable dialer for green card prepaid cards.
Browser based dialer for Blue card prepaid cards.

3) BILL PAYMENT SERVICES:

Payment portal provides on line bill payment facility to its basic, Garuda and GSM
subscribers. One time registration and validation is required for secured transaction
from saving bank account. Facility is available for account holders of all the banks
having transaction facility with RBI
Bill alert service provides MTNL Delhi basic service subscribers with an electronic
version of their paper bills in their E-Mailbox

MTNL is providing web server hosting at its Internet premises which provides faster
access of web sites hosted on the server. Various options based on Data Transfer are
available.

INTERNET SERVICE VIA LEASED LINES:

Leased Line Internet access service provides high speed Internet access. The Leased
Line runs between subscriber premises and Internet Unit.

PHONE CONNECTION FOR INTERNET USE:

MTNL is providing Internet telephone which is available under two schemes.

4) WHAT IS ISDN?

Integrated Services Digital Network (ISDN) is a state-of-the-art Public Switched

Digital Network for provisioning of different service voice, data & image transmission
over the telephone line through the telephone network.

5) I net:

Inet is India's X.25 based Packet Switched Public Data Network. It provides high
speed connectivity between computers/terminals.

Inet is based on Packet Switching technology with error free transmission (BER better
than 1 in 109) with dynamic re-routing of calls (in case of route failures and
congestion) and inter-connection of computers/terminals at different speeds and
protocols.

Inet is covering more than 100 cities of the country in a phased manner. These cities
have been categorized into three groups on the basis of business activity and demand
for different type of Inet connections and facilities. The cities covered under these
Groups are listed below:

ADVANTAGES:

• The advantages of the service to the organization subscribing are:

Its users in different cities need not be Inet customers since the organization
always pays for their calls.

• The interface equipment and telephone are in DOT/Inet exchange premises and
hence it saves on operation/maintenance costs of equipment, spares and power
supply etc. for the organization.

• The users in a city are not constrained by congestion of common Inet dialup
ports. The grade of service on such network dialup ports is depended on the
subscribing organization only.

• The full redundancy and alternate routing facilities of the public network are
available on all these connections.

• Telephone connections to be terminated on the PAD are to be obtained by the

organization from the telephone exchange serving the Inet exchange area of the
city as per exiting norms and tariff.

6) TYPES OF CONNECTIONS
X.25 Connections ,X.32 Connections
X.28 Leased Connections ,X.28 Dialup Connections ,Frame Relay Service

X.25 CONNECTIONS:

An X.25 customer with the help of a computer/terminal with CCITT X.25 compatible
software and hardware can receive and originate several simultaneous calls. An X.25
link is similar to telephone junctions extended to PABX. X.25 connection is provided
on leased line (2 wires or 4 wires) from the Inet exchange. The speed of connection
can be 2400, 4800, 9600, 19200 or 64000bps. The modems used will be V.22 bis,
V.29, V.32 bis, Data-Over-Voice, V.35 or 64 Kbps line drivers.

X.32 CONNECTIONS:

X.32 access enables X.25 customers to have a backup access to Inet using PSTN. It
provides all the functionalities of X.25 but on dialup mode. The speed of connection
can be 2400, 4800 or 9600 bps.

X.28 LEASED CONNECTIONS:

An X.28 lease customer can receive or originate only one call at a time. This is similar
to a normal telephone connection. This customer can use computer/terminal with
appropriate communication software (like ProComm, Xtalk etc.). The speed of
connection can be 1200, 2400, 4800 or 9600 bps. This connection is also provided on
leased line from the Inet exchange to the customer's premises. The modems used will
be V22 bis, V32 bis or Data-Over-Voice.

X.28 DIALUP CONNECTIONS:

An X.28 Dialup customer can use any computer/terminal with appropriate

communication software (like ProComm, Xtalk etc.) to originate or receive calls at
300, 1200, 2400, 4800 or 9600 bps using a TEC approved, PSTN dialup modem
connected to his telephone. In a two step dialing procedure the customer first dials a
local telephone number of the Inet exchange to get connected to Inet after which he
can establish a call to any other customer of Inet or overseas data networks. This does
not require a leased line from the Inet exchange to the customer's premises. The
modems used will be V.21, V.22 bis or V.32 bis.

FRAME RELAY SERVICE:

Frame Relay service is available only from Group A and Group B cities. Frame Relay
customers can have PVCs (Permanent Virtual Circuits). It can be used for providing
high speed connectivity between LANs in different cities.
Frame relay is a modified form of packet switching service. It provides error free data
circuits with capability of band-width on demand.
Some of the above facilities and their typical applications are described below:

REVERSE CHARGING:

It is an optional user facility which may be requested by a calling DTE (Date Terminal
Equipment) for a given call. If reverse charging is accepted by the called DTE during
call setup then the called DTE pays for the call; normally the calling DTE pays for the
call. Reverse charging acceptance facility is also available. This will allow a called
DTE to accept or reject a reverse charge DTE to accept or reject charge call, possibly
by checking the source host against a list of host/terminals. The facility is useful for E-
Mail and Database service providers.

FAST SELECT:
In fast select small messages can be transmitted instantly in the call set up packet and
the response in the clear packet at a fixed cost. This is useful in applications like Credit
Card Verification System etc. Fast select acceptance facility authorizes the DCE (Date
Communication Equipment) to transmit to the DTE incoming calls which request the
fast select facility.

PAYMENT AT MTNL COUNTERS

There are more than 150 payment counters operated by MTNL at its various offices.
These counters are usually located at the Area GM offices or in the QCSCs (Quick
Care Customer Service Center). At QCSCs payment can be made in cash as well as in
cheque. Most of the MTNL counters are online i.e. the payment made at these counters
is instantaneously updated in the billing system of MTNL Payment at Nationalized
Banks
MTNL customers can pay their telephone bills at the branches of 6 nationalized
banks and 2 scheduled private banks. The nationalized banks are
State Bank of India - 14 Branches
Punjab national Bank - 17 branches
Union Bank of India - 27 Branches
Dena Bank - 9 Branches
Central Bank of India - 17 Branches

PAYMENT AT POST OFFICES:

The scheme for accepting MTNL telephone bill payment at Post Offices was
launched in February 2003. Now 305 post offices covering Mumbai and Navi-
Mumbai accept Cash Payment of telephone bills.

ELECTRONIC CLEARING SYSTEM (ECS):

In this era where the place of life is ever escalating and energy level of individual is
plunging, one cannot afford to waste hours waiting in a queue to pay telephone bills.
That's why MTNL has brought you Electronic Clearing Scheme (ECS) RBI operates
ECS scheme to promote efficiency and transparency in the banking operations.
Through ECS a customer allows MTNL to debit his telephone bill amount directly to
his bank account. In order to subscribe to ECS a customer has to fill in a mandate
form, which can be obtained at any of the QCSCs or the area GM offices. A customer
can get and deposit his mandate form at any of the area QCSCs or the area GM office.
Customers who subscribe for ECS receive their bill as usual. However, the bill is sent
only for intimation. A customer can also specify the upper limit for ECS debit. If the
bill amount is higher than this upper limit then customer account is debited.

This scheme has been introduced in association with reserve bank of India. It offers
you an option to pay your telephones bills through your bank account. It avoids the
inconvenience of standing in queues at collection counters. You only have to authorize
your bank to debit your account by giving a "Mandate" through the mandate form.
You can fix your upper limit. Bills will be sent to you stamped “Not For Payment "and
after a period of 21 days (from the date of the bill). The bill amount will be debited
from your bank account. This gives you time to check your bill and bank balance and
you can payment if you are not satisfied with the bill.

VOLUNTARY DEPOSIT SCHEME (VDS):

Why go through the taxing procedure of queuing up in a line to pay your telephone
bills? Join the voluntary deposit scheme (VDS) which assures you hassle free payment
of bills and also a rich 5.5% interest. For more details contact the area service centers.

EASY PAYMENT KIOSK:

MTNL has provided Easy payment Kiosks for its customers. These Kiosks are
essentially ATMs with added facilities. These kiosks accept only cash payment. The
operation of the Kiosks is very similar to the ATM. A customer is prompted to scan his
bill under the bar-code reader. A pictorial demonstration appears on the screen of the
kiosk. The bar code details are captured by the machine and displayed on the screen.
The customer is again prompted to insert his cheque into the MICR reader slot.
Cheque particulars like Cheque number, Bank Branch details are captured. The
customer fills the payment amount. If the transaction goes through, then the kiosk
issues a printed receipt to the customer.

BILL PAYMENT THROUGH ATMS OF BANKS:

Bill Payment through ATM is a new service. Bill Payment through ATM is a very
customer friendly Payment Facility and avoids valuable time waiting in long queues.
At present we are accepting bill payment through ATMs of State Bank of India, UTI,
HDFC, ABN-AMRO, and IDBI

MTNL has tied with up with the above banks for Telephone Bill Payment. MTNL
Customers holding ATM cards of one of the above banks can visit their nearest bank.
On the ATM machine there is an option for viewing and paying the latest Telephone
Bill. If a customer wishes to pay his bill then he/she can authorize the payment. On
payment, a receipt will also be issued by the ATM.

PAYMENT ON THE INTERNET:

This payment mode involves bill presentment and customer's instruction to bank for
payment of MTNL bills on the Internet. At present Payment Gateway facility is
available with SBI, PNB, UBI, HDFC, IDBI, UTI, KOTAK, and ICICI Bank.

Bill payment facility is also available on Internet through the following agencies.
MTNL has agreement with ICICI Infinity, BillJunction.Com and BillDesk.Com for
this scheme. BillJunction.Com and BillDesk.Com are online bill payment agencies that
help their registered customers in making bill payments besides other value added
services. A customer can visit the website of these agencies and get himself registered
for a nominal fee. Like ECS, customer authorizes these agencies to debit his agencies.

MTNL has agreement with ICICI Infinity, BillJunction.Com and BillDesk.Com for
this scheme. BillJunction.Com and BillDesk.Com are online bill payment agencies that
help their registered customers in making bill payments besides other value added
services. A customer can visit the website of these agencies and get himself registered
for a nominal fee. Like ECS, customer authorizes these agencies to debit his account
for amount equal to his telephone bill amount.
ON-LINE Directory Information Service

Simply dial 24316197 from your PC via a modem, when prompted give Login =
pstndq and get connected to the Computerized Directory information System of
MTNL and, at the cost of only a local call. MTNL Mumbai's Telephone Directory
enquiry service is now available through data communication on PSTN on telephone
number 24316197.
Procedure to use Directory Service
The entries appearing in the printed telephone directory are classified into following
different categories and may be enquired by different enquiry types as given below.

GROUP ENQUIRY (GR)

Is meant queries regarding large commercial organizations, government department,
etc (PABX Entries).

TELEPHONE ENQUIRY (TE)

Is used to display the name and address details of subscribers by giving the telephone
number as input.

OLD TELEPHONE ENQUIRY (OT)

Is used for displaying the new telephone number of subscribers along with name and
address, if the telephone number is changed for any reason. Input required is old
telephone number.

STD ENQUIRY (ST)

Is meant for finding STD/ISD codes.

CUSTOMER SERVICE (CSC)

MTNL has Customer Service centers at all exchanges and other prime locations for the
convenience of customers. Services offered at customer service centers are:-
Working Hours of Customer centers in MTNL Mumbai
 • Distribution of application forms.
• Booking of Landline, Tri band, and IPTV new connection.
• Booking of PCO connections.
• Booking/Sale of Dolphin, Trump, Garuda Mobile/FW new connections.
• Booking of Garuda PCO.
• Other post connection services like plan change, shifting of line etc
• Customer query and complaint handling.
• Sale of Trump and Garuda recharge/Top up coupons.
• Sale of Garuda PCO recharge/Top up coupons.
• Bill collection Cheque and cash.
• Duplicate bills.
• Reconnection of disconnected Landline,Dolphin,Garuda connections
• STD/ISD provisioning/barring for Landline, Dolphin and Garuda connections.
• Provisioning of phone plus facility (free) for landline.

AUTO COM FACILITY '1661'

With this facility, MTNL can now fax a form at the customer's request. With autocom,
any subscriber wishing to receive the following forms can do so by sending the request
through their fax machine. The relevant form will then be faxed to them.

The list of application forms made available by faxing 1661 are:

• Shifting of telephone/telex connection within the city.

 • Shifting of telephone to other cities.
• Transfer of telephone/change of name.
• Safe custody of telephone.
• Resetting of STD/ISD dynamic lock
• Provision of Phone Plus facilities.

INTERNET
Its origin dates back to 1969 when it was called Arpanet (Advanced Research Project
Agency network) and was exclusively for military purposes. It soon merged with non-
governmental and parallel academic networks which grew and eventually came to be
called Internet in the year 1979. Today, it is simply a network of worldwide network of
computer networks connected to each other by devices called Internetworking devices.

These computers contain information on history, politics and medicine, science and
technology, sports, current events and many more topics. It consists over 32000
networks in over 100 countries is a window to the globular information super highway.
The network is growing exponentially and being used by about 100 million people
worldwide. It is estimated to grow over 200 million people by the year 2000.
The Internet is popular because it is:
• Ubiquitous
• Open
• Fast
• Proven
• Easy
• Inexpensive
• Versatile
WHY USE INTERNET?
In the present age of information technology, the Internet is a medium foe accessing
information on any topic you can imagine, for buying products and services, i.e., for
business purposes and for pleasure at the click of a mouse or a key, all of it and more,
ON-LINE. Besides, individuals, business, trade, commerce and industry, the Internet
also provides tremendous opportunities to students, researchers and professionals for
getting information on matters related to academic and professional topics.

MTNL's Internet Service is a path breaking achievement bringing the world closer
with the state-of-the-art technology and that too without any congestion. Through
MTNL's Internet you can enter the world of technological marvel at affordable rates.
Avail of the extensive Internet facilities with high-band width on a first-come-first-
serve basis.

LEASED CIRCUITS
A leased circuit is a dedicated link provided between two fixed locations for exclusive
use by the customer. A leased circuit may be a speech circuit, a data circuit or a
telegraph circuit. Leased line charges are uniform for all cases and are same as
applicable for point to point leased circuits. In addition to above, installation charges
are also levied. Minimum hiring period for all regular leased circuits in one year
Leased line charges depend on Distance, Type of Circuit, Bandwidth.
GARUDA
MTNL brings to its esteemed customers New Garuda 1x WLL Mobile/Fixed Wireless
Service, with excellent coverage and voice quality. Garuda is the most affordable
Mobile/Fixed Wireless Service in Delhi, working on the latest CDMA 1x technology
with features of superior voice clarity, data connectivity unto 144 Kbps and various
phone plus facilities. You can choose a tariff package that fits your usage and budget
and access a range of value added services.

Garuda comes in following three connection types: -

1) Garuda Mobile
2) Garuda Fixed Wireless (FWP/FWT)
3) Garuda RUIM (also known as SIM)

Added Benefits to Garuda Subscribers

• Saving on monthly bills

• Roam at home (Free roaming in whole Delhi)

• Retain your number even when you change home or office

• Get a quick connection

• Don't suffer because of dead phones

 • Transparency in Billing

• No hidden charges

• Latest technology instrument

• Receive call when on internet

• Pay internet chargers as per usage.

DOLPHIN
Dolphin’s GSM cellular mobile network supports a number of features and
supplementary services. Before using the mobile phone for the efficient and safe
operations, please ensure the design of your phone satisfies the following standards
when used normally. Your mobile phone is a power radio transmitter and receiver.

When it is ON, it sends out Radio Frequency (RF) signals. European and International
agencies have set standards and recommendations for the protection of the public from
exposure to RF electromagnetic energy. These standards are based on an extensive
scientific view of over 120 countries, engineers and physicians from various
universities and government health agencies.

The health industry manufacturer recommendation is that a minimum separation of 6

(six inches) be maintained between the mobile phone and a pacemaker to avoid
potential interference with the pacemaker. Hence ALWAYS keep it at more than 6 (six
inches) away from the pacemaker when it is turned ON, and do not carry it in a breast
pocket.

INTERNATIONAL ROAMING

MTNL is providing International Roaming on its GSM cellular Mobile services in

more than 193 countries world-wide covering all the major countries of the World?

VALUE ADDED SERVICES

VOICE MAIL SERVICES:
Time to break free!
At MTNL, we believe that you should get the best out of everything. That’s why we
strive to make your life real cool and easy. No matter where you whisk, you are still
contactable from anywhere. Even if you don’t take your call. That’s right Dolphin
offers you Voice Mail, a private secretary who listens to your incoming calls and
stores the messages left by the caller so that you can call them back later

Calling Line Identification Presentation (CLIP) Know your caller!

Dolphin gives you the freedom to choose between accepting and

rejecting an incoming call. The CLIP service shows the caller’s number on the LCD
screen before you take the call. This service is available free of cost. No activity is
required to be done on your cell-phone, as this service is provided by the Network.

To activate these features, you just need to be within the coverage area and activate the
call divert settings from your phone. After selecting any of the call diverts options
there will be a short delay, while the phone asks the network for the current settings.
Also refer to your Mobile Phone User Guide for activating this facility on your phone.

Call Forwarding on Mobile Subscriber Busy take two calls at the same time!

When you are busy talking on your mobile and you get another call, you can route it to
another MSISDN mobile. The other mobile MSISDN subscriber will be notified.
CHAPTER 3

CONCEPTUAL BACKGROUND

When we talk about customer service and/or satisfaction, we talk about creativity.
Creativity allows us to handle or diffuse problems at hand or later on
in the process of conducting the everyday business. We talk about how, or
rather what, does the organization have to do to gain not only the sale but
also the loyalty of the customer. We want to know the payoff of the transaction
both in the short and long term. We want to know what our customers
want. we want to know if our customers are satisfied. Satisfaction,
of course, means that what we delivered to a customer met the customer’s
approval. We want to know if customers are delighted and willing to come
back, and so on. As important as delightfulness is, some of us minimize it, or even
totally
disregard it.

Some of the issues that will guarantee failure in sales, satisfaction, and
loyalty are:

First, we must identify how we define the customer and Customer Service and
Satisfaction

Second, we must understand customer expectation levels concerning quality.

Third, we must understand the strategy for customer service quality,

Fourth, we must understand the measurement and feedback cycles of customer
satisfaction.
The customer is the person or unit receiving the output of a process on
the system. Customer satisfaction, however, is when the customer is satisfied with a
product/service that meets the customer’s needs, wants, and expectations.

CUSTOMER EXPECTATIONS

1. ACCURACY:

At the lowest level, customers expect accuracy. You expect to get what you ordered
without errors or missed shipments. You want your credit card bill to correctly list all
your purchases and payments. Your customers must get what they paid for and are
expecting. Deliver on what you promise. Accuracy is an assumed standard in doing
business. When present, accuracy is taken for granted. Its absence swiftly leads to
customer dissatisfaction.

2. AVAILABILTIY:

Any company that makes itself more accessible will obviously increase the number of
customers who are willing to give it a try. You can reach more potential customers
when the barriers to entry are lower; you’ve got a better shot of earning first-time
customers. Availability is important but should not stand by itself or be relied on as a
single benefit to the customer. Since availability is easy to mimic, your rivals can
reduce this “competitive advantage to a commodity.”

3. PARTNERSHIP:

Customers want you to listen to them, to be responsive to them, to make them feel they
are on the same side of the fence as you.

Partnerships can be built only when you:

 • Only when you understand the needs of the customers.

• Solicit and act upon customer feedback.

4. ADVICE:
Customers feel the closest bond to organizations that have helped them learn. Think of
the free seminars, telecasts, tutorials, workshops, and classes you see advertised
everyday. Remember your alma mater where you earned that degree? These are all
instances where you have learned or can learn something. As a result, you are much
more likely to reciprocate the favor. You’ve probably donated to an alumni-sponsored
scholarship or even bought that paint you learned to use at a Home Depot workshop.

LEVELS OF CUSTOMER SATISFACTION

LEVEL1

Expectations are very simple and take the form of Assumptions must have and take it
for granted. For example, a passenger expect the airline to be able to take off, fly to my
destination,
And land safely. a patient expect to get the correct blood for blood transfusion, and a
client expect the bank to deposit his money to his bank account and to keep a correct
tally for him.

LEVEL2

Expectations are a step higher than that of level 1 and they require some form of
satisfaction through meeting the requirements and specifications. For example, I
expect to be treated. I expect the bank teller to be friendly, informative and helpful
with my transactions.

LEVEL3

Expectations are much higher than for levels 1 and 2.

Expectations are much higher than that of level 1 and 2. Level 3 requires some kind of
delightfulness and a service that attracts the customers to it. For example, an airline
give passengers of traveling coach the same superior food service that other airlines
provides only to the first class passengers.

NEED FOR CUSTOMER SATISFACTION

The need to determine customer satisfaction will vary somewhat by the competitive
circumstances of a given industry. In intense consumer-focused activities, measuring
customer
satisfaction is critical. But every company in every industry can benefit by examining
the needs
of their customers. Some of the areas where improvement may be expected include:

• Better determination of customer uses and needs.

• Identification of problems with customer services.

• A sharper focus on areas having the greatest need for improvement.

• Gaining insight for new products and/or service offerings.

CUSTOMER SATISFACTION:
If the customer's expectations of product quality, service quality, and price are
exceeded, a firm will achieve high levels of customer satisfaction and will create
"customer delight." If the customer's expectations are not met, customer dissatisfaction
will result. And the lower the satisfaction level, the more likely the customer is to stop
buying from the firm
up their minds as they go along. You are serving as the guinea pig
for their decision. As such, accommodating them may make the difference

“It's a well known fact that no business can exist without customers. In the
business of Website design, it's important to work closely with your customers to
make sure the site or system you create for them is as close to their requirements
as you can manage. Because it's critical that you form a close working
relationship with your client, customer service is of vital importance. What
follows are a selection of tips that will make your clients feel valued, wanted and
loved.”

1.ENCOURAGE FACE TO FACE DEALINGS:

This is the most daunting and downright scary part of interacting with a customer. If
you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest
assured, though, it does get easier over time. It's important to meet your customers face
to face at least once or even twice during the course of a project.

A client finds it easier to relate to and work with someone they've actually met in
person, rather than a voice on the phone or someone typing into an email or messenger
program. When you do meet them, be calm, confident and above all, take time to ask
them what they need. I believe that if a potential client spends over half the meeting
doing the talking, you're well on your way to a sale.

2. RESPOND TO A MESSAGE PROMPTLY AND KEEP YOUR

CLIENT INFORMED:

This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customers' queries within the space of a few hours, but at least email or call them back
and let them know you've received their message and you'll contact them about it as
soon as possible. Even if you're not able to solve a problem right away, let the
customer know you're working on it.

3. BE FRIENDLY AND APPROACHABLE:

This is very true. It's very important to be friendly, courteous and to make your clients
feel like you're their friend and you're there to help them out. There will be times when
you want to beat your clients over the head repeatedly with a blunt object - it happens
to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best
you can, and at all times remain polite and courteous.

4. HAVE A CLEARLY DEFINED CUSTOMER SERVICE

POLICY:

This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If
a customer has a problem, what should they do? If the first option doesn't work, then
what? Should they contact different people for billing and technical enquiries? If
they're not satisfied with any aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person to person, or
not knowing who to turn to. Making sure they know exactly what to do at each stage
of their enquiry should be of utmost importance. So make sure your customer service
policy is present on your site -- and anywhere else it may be useful.

5. ATTENTION TO DETAIL:

Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalized sign-up confirmation email for a service
that you could tell was typed from scratch? These little niceties can be time consuming
and aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on the other end of that
screen or telephone; and most importantly, it makes the customer feel welcomed,
wanted and valued.

6. ANTICIPATE YOUR CLIENT’S NEEDS:

Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship. Take
this as an example: you're working on the front-end for your client's exciting new
ecommerce Endeavour. You have all the images, originals and files backed up on your
desktop computer and the site is going really well. During a meeting with your client
he/she happens to mention a hard-copy brochure their internal marketing people are
developing. As if by magic, a couple of weeks later a CD-ROM arrives on their
doorstep complete with high resolution versions of all the images you've used on the
site. A note accompanies it which reads:

"Hi, you mentioned a hard-copy brochure you were working on and I wanted to
provide you with large-scale copies of the graphics I've used on the site. Hopefully
you'll be able to make use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues and friends how very
helpful and considerate his Web designers are. Meanwhile, in your office, you lay
back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge
this happy customer will send several referrals your way.

7. HONOUR YOUR PROMISES:

It's possible this is the most important point in this article. The simple message: when
you promise something, deliver. The most common example here is project delivery
dates. Clients don't like to be disappointed. Sometimes, something may not get done,
or you might miss a deadline through no fault of your own. Projects can be late,
technology can fail and sub-contractors don't always deliver on time. In this case a
quick apology and assurance it'll be ready ASAP wouldn't go amiss.

Literature review:
Why measuring customer satisfaction?

Organizations need to retain existing customers while targeting non-customers.

Measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service.
The state of satisfaction depends on a number of both psychological and physical
variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other factors the customer,
such as other products against which the customer can compare the organization's
products.

The basis for the measurement of customer satisfaction with a service by using the gap
between the customer's expectation of performance and their perceived experience of
performance. This provides the researcher with a satisfaction "gap" which is semi-
quantitative in nature. Cronin and Taylor extended the disconfirmation theory by
combining the "gap" described by Parasuraman, Zenithal and Berry as two different
measures (perception and expectation) into a single measurement of performance
relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement in
terms of their perception and expectation of performance of the service being
measured.

Historical Development
.

Employee Satisfaction

The three main components of the service profit chain theory are employees,

customers, and profitability. This section focuses on the place and importance of

employees to the process that makes up the overall theory. The specific components of

“employee satisfaction” will be discussed. As most everyone in business is aware of,

employees are important to any organization, as they are the foundation for any

potential productivity. Employee satisfaction has been directly linked to employee

loyalty. Because employees can be considered the heart of an organization,

management should consider investments in employee satisfaction and subsequent

loyalty, to be a necessity. Most organizations fail to take into account the loss of

productivity and a decrease in customer satisfaction that results from poor employee

satisfaction.

The major component of customer retention is “loyalty”. However, it is important here

to point out the importance of customer loyalty to the theory of the service profit

chain. Within the concept of the service profit chain, the important point in regard to

customer loyalty is that customers should be looked upon as revenue generating assets.

That is, they should be accounted for, monitored, and proactively taken care of as any

valuable corporate asset. By adopting this viewpoint, a company is able to view

customers not only as one-time events but also as long-term, valuable assets that

require attention in order to bolster their retention and satisfaction.

The third main element of the service profit chain is profitability, which is a by-

product of employee satisfaction and customer retention/loyalty. While many

organizations still focus on trimming expenses and generating new business, there is

an abundance of evidence linking customer retention to positive financial performance.

This theory has been embraced and implemented by many successful titans of business

including Jack Welch, former CEO of General Electric and Herb Kelleher, founder of

Southwest Airlines. It is not enough anymore for a company to focus only on

improving profitability; it is necessary to examine the main components that lead to

profitability. It is now recognized that the best way to improve corporate profitability
is to focus on the effective management of human capital and customer capital.

The Elements of Employee Satisfaction

Employees can derive satisfaction from their jobs by meeting or exceeding the

emotional wants and needs they expect from their work. Therefore, Managers that can

recognize this and understand the many different aspects that are involved in employee

satisfaction will be successful at achieving the link between employee satisfaction,

customer retention and added profitability. As previously stated, the issue of employee

satisfaction has a major impact on customer retention and corporate profitability. This

section will comprehensively analyze the many important elements that are related to

employee satisfaction, and resultant employee loyalty.

Work Environment

The single most important factor contributing to employee satisfaction is the internal
quality of the work environment. The respect and appreciation employees derive from

their co-workers and employers helps to determine the internal work environment. The

term “work environment” encompasses many different aspects such as: physical work

environment, management’s attitude toward employees, relationship with colleagues,

and working conditions. Recent research has highlighted the hypothesis that an

employee’s work environment can have a dramatic effect on his/her performance and

attitude toward work. For example, one’s workspace has traditionally been

conceptualized as just a passive host to its user activities. However, it is now

recognized that the space workers occupy at work effects patterns of interaction, and

can have a noticeable impact on behavior and performance. In addition to the physical

attributes of a workplace, are the attitudes of management geared toward the well

being of the worker. Does management exhibit respect, empathy, and strive to provide

a hostile free work environment for its employees?

An environment is anything that supports employees to be or to perform a certain way.

There are many elements related to a working environment. Quite often, people are not

even aware of many of the elements that make up a work environment. It stands to

reason that everything around employees has some impact on them and how they do

what they do. If there are elements of an employee’s work environment that are having

a negative effect on them, steps should be taken to remove the elements so that only

positive environmental effects remain.

The first work environment issue that will be considered here is that of the physical

workspace. This issue has become so important in recent years that in 1997, the Center
for the Built Environment was created at the University of California at Berkeley. The

main mission of the foundation is to conduct research on innovative building

technologies that will improve the workplace productivity of commercial buildings.

An example of the work that is being done at the CBE can be found with their research

into the physical settings of workspaces geared toward teams and collaboration. Team

workspace design is done in order to specifically support the collaborative work of a

group of employees. Although the designs allow for private workspaces, there are

provisions made for open collaborative workspaces that are conducive to teamwork.

Many companies today are expending greater effort to ensure that productive,

conducive work environments exist for the productivity and satisfaction of their

employees.

Rather recently, organizations have come to the realization that an employee’s

physical work environment can have a tremendous effect on their productivity and

overall satisfaction. Aspects of this realization relate to issues such as space, lighting,

sound, and ergonomically correct design. People spend 90 percent of their time

indoors, and much of that time is spent at work. Studies have shown that up to 30

percent of U.S. office workers suffer from health problems caused by sick-building

syndrome. Organizations can create long-term value in not only the facilities

themselves, but also for the employees of the organization. Organizations can attempt

to understand the environmental implications for employee productivity and

satisfaction if they are considered essential elements of their business processes. In

addition to the aspect of employee satisfaction, the issue has become such an economic

factor that many insurance companies require organizations to have workplace surveys

and audits done on an annual basis.

An analysis of employee satisfaction in the workplace would be incomplete without a

discussion about the effects of hostile work environments. Hostile work environments

are like a cancer that can eat through the core of productivity and employee

satisfaction faster and more devastating than any other work associated instance.

Employers seek to prevent events that may lead to a hostile work environment, as they

can be extremely disruptive to the work force. In addition to the potentially devastating

financial ramifications of the existence of a hostile work environment, there is the

potentially lasting impact on employee morale and satisfaction. There are many

circumstances that may constitute what is considered to be a hostile work environment.

For the most part, they are predefined by law or organizational policy, but may have to

be examined on a case-by-case basis. Management must strive to always be aware of

toxic relationships, tense behavior between employees, and negative overtones in the

work environment.
Employee Training/Programs

A common mistake made by many organizations is the failure to adequately invest in

the continued training of their employees after they are hired. One of the biggest

factors in employee satisfaction/loyalty levels is the amount of training and

development companies provide.

Continued training and programs not only help to bolster employee satisfaction, but

also produce tangent benefits for the organization. Training initiatives should be well

planned, funded, and designed to meet organizational goals.

This section will consider the effects of well- designed, comprehensive training

programs. Included in this analysis will be the effects of training on employees,

benefits of employee training to the organization, types of training programs, and the

required commitment needed for a successful training and development program.

The first step an organization must take toward administering a worthwhile training

program is to assess the organizational objectives for the training to be done. In many

cases, the majority of ongoing training may be associated with reinforcing the

organization’s strategic goals and vision.

After assessing the organizational objectives in relation to training, the next step is to

establish the training objectives of the organization. There are several different ways to

go about establishing the training objectives of an organization, but the method should

take into consideration the three major human resource areas: the organization as a

whole, the job characteristics, and the needs of the individual. In order to begin this

process, a comprehensive assessment of what tasks are needed to be accomplished in

the organization, by whom, and what are the necessary skills for the tasks. This

process should result in an established foundation for which future training and

benchmarking can be done. There should be short term, medium range and long term

training goals established as part of the strategic plan. Training plans and objectives

should then be tailored to specific jobs that are then filled with the most qualified

candidates possessing the requisite traits that are best suited for a particular position.

Selecting the appropriate employees for training is a crucial step in the organizations

training process. Because of the time and financial commitments necessary for an

effective training program, being able to efficiently target the required training for the
appropriate individuals will allow the organization to work more effectively and

efficiently. Training programs should be designed to consider the ability of the

employee to learn the material and to use it effectively, and to make the most efficient

use of resources possible. Training can be a valuable source of motivation for an

organization’s employees, if administered correctly.

The next consideration is to plan the training administration. Training administration is

the coordination of programs, facilities, employees, equipment, supplies, and time

frame for the training to be conducted. For the training process to be effective,

employees must be satisfied with their training experience. This process entails

ensuring that employees have all of the time, supplies and comfort necessary to

understand and properly digest the information that they are presented with. Employee

satisfaction is not only a derivative of the information received, but also the training

process as a whole. A well-managed training administration program can ensure that

all of the elements necessary for an effective training program are present and

functioning as planned.

One of the final steps, but also one of the most important ones necessary for an

effective training program, is the ability to accurately assess and evaluate the training

conducted. Training evaluation should not be considered a one time, or static event

during the training process.

skills, working to their full potential and equipped to deal with the changing demands
of the workplace; employees with higher morale, career satisfaction, creativity,

motivation; increased productivity and responsiveness in meeting organizational goals.

Employee Satisfaction and Recognition

Employees were once thought to be just a normal part of the production process of

creating goods and services. Today however, most organizations realize that

employees are much more than just “input” as part of the business generation process,

and require motivation and subsequent recognition in order to build and maintain

employee satisfaction. This section will consider the different methods associated with

motivating and recognizing employees, in order to achieve maximum employee

satisfaction. Much of the basis for employee motivation can be traced to the

Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932. The major

conclusion of this study was that employees are not solely motivated by money and

employer behavior and attitude have a great deal to do with an employee’s satisfaction.

After this initial research, understanding employee motivation was the focus of many

other researchers, the most notably being Maslow, who developed the need-hierarchy

theory. According to A.H. Maslow, people’s needs resemble a pyramid. As basic

needs are satisfied, higher levels of needs emerge and motivate the employee’s

behavior. Because of this, organizations need to provide a work environment that will

motivate employees above and beyond their physiological and safety needs. The

analysis in regard to this topic will be done using the analysis and research presented

in Maslow’s hierarchy of needs theory.

 Figure 1: Maslow’s Hierarchy of Needs

Motivation has been defined somewhat differently by many different researchers, but

is generally accepted as: the psychological process that gives behavior purpose and

direction; a predisposition to behave in a purposive manner to achieve specific, unmet

needs; an internal drive to satisfy an unsatisfied need; and the will to achieve. For this

paper, motivation is operationally defined as the inner force that drives individuals to

accomplish personal and organizational goals. Having established a working definition

for “motivation”, the next step is to assess the role of motivation in organizations. The

obvious question that must be asked before assessing the role of motivations in

organizations is, “why is it necessary or important to motivate employees?” The

answer is one of economics. Motivated employees are more productive, more engaged,

and are satisfied workers. Employees that are motivated have a sense of purpose and

belonging, and therefore tend to exhibit greater loyalty to their respective

organizations.

Recognizing and applauding employees’ achievements and contributions are critical to

reinforcing desired behaviors. The best way to encourage desired behavior and create
enthusiasm for continued future improvement is to formally recognize employees.

Recognition programs have proven to play an important role in a company’s employee

satisfaction and growth

Organizational Goals and Employee Expectations

Organizations are entities that have a life of their own. They are like a big machine

with many moving parts, diagrams, and purposes. Organizations are typically involved

with elaborate data collection, in-depth analysis, and making decisions based on the

results of that data collection. Essential elements of an organization are the employees

that control the environment. In order to be successful in the organizational

environment, employees must understand the goals, structure, and procedures that

management has laid out as the basis for organizational operations. In today’s

competitive and rapidly changing business environment, establishing and achieving

goals and objectives are common denominators of successful businesses. Goals are

essential tools that help employees and organizations alike, focus on the desired results

of the business strategy. Employees that are involved with goal setting tend to stay

longer and be more productive employees. The impetus is on management to set

attainable goals in accordance with the strategy of the organization, and then

effectively communicate these goals to employees. The focus of this section is to

understand the value and benefit of defining organizational goals, assessing employee

expectations in relation to those goals, and the effect of this discipline on employee

satisfaction.
 Figure 2: Organization Strategy Figure 3: Organization

Environment

“If you don’t know where you are going, any road will get you there.” This line from
Alice in Wonderland has been true in many organizations and companies. They often
don’t have-or maybe don’t articulate very well real business goals. If the leadership
has no plan, or does not effectively articulate a plan to the employees, how are
employees expected to know and understand what goal they are working toward? For
this reason, it is necessary for management to set the goals, define the goals, develop a
plan of action to achieve the goals, communicate the goals to employees, and to follow
up on expectations. Many issues that face management on a daily basis could be
diminished or eliminated by effectively communicating expectations to employees.
While the principles of setting expectations are well understood, it is worth review.
Without defining the organization’s goals, employees will lack the focus to stay
productive and will soon become distracted and misguided.

Employees today expect not only to fully understand the mission and goals of their

organizations, but to also be involved in many cases with creating the mission and

setting the goals. Goal setting is one of the most prominent and basic tools used by

both individuals and organizations to assist in guiding their direction and in

accomplishing it. There are several important goal related terms that will be addressed

here such as: mission, objectives, strategy, and action plans. Allowing employees to be

involved in the goal setting process, whether by participating in the actual concept, or
just participative delivery, creates an atmosphere of collaboration and helps to enhance

employee satisfaction. Many researchers define a “collaborative work environment” as

a group in which people work effectively together to achieve business results and

sustain a positive work environment that includes work/life balance. Organizations

wishing to promote collaborative work among their employees create structures and

practices that encourage the desired results. Teamwork will be addressed in greater

detail later in this paper. The important point is to recognize the strong correlation

between employee involvement in organizational goal setting and positive

organizational results, including increased employee satisfaction.

Those that are involved in the organization and are affected by organizational

outcomes are called “stakeholders.” In almost every organization, employees are the

largest group of stakeholders. As is the case with any organization, the different

stakeholders have different motivations and different ideas of what is important to

them and the organization. Employee owned change and involvement in the process is

practical and functions as a discipline to focus energy on specific tangible goals. While

most organizations begin purposefully, economic shifts, changes in the marketplace,

and alterations in leadership values and styles impact organization effectiveness. The

wants and needs of the individual are essential input to the overall goal-setting process

of the group. If each group member is provided the opportunity to contribute to the

goals of the group, then the individual energies of the group members will be

transformed into achieving the common goal as a team.

The next elements of goal setting that would benefit from employee involvement are

objectives and strategy. The objectives of an organization typically arise out of the

mission statement. The objective should be “what” the company will do to achieve its

goals.

Communicating with Employees

The art of communication is a vital component of employee satisfaction and

engagement. Without workplace communication, nothing would be accomplished.

Instructions could not be given; equipment and supplies could not be ordered; progress

could not be measured; and services could not be delivered to customers. The five

functions of management: planning, organizing, staffing, leading, and controlling, are

all dependent on communication. Surveys conducted with highly successful managers

consistently highlight the benefits of effective communication. There are many

different methods of communicating in the workplace that include: face-to-face

meetings, staff meetings, small group meetings, department meetings, management

forum meetings, walkabouts, telephone conversations, mission statements, newsletters,

bulletin boards, e-mail, and intranets, just to name a few. All other components of this

analysis would be impossible to implement without communication. For that reason,

this section will be concerned with employee communication in the workplace, and the

many considerations involved with effectively communicating at work.

Employees communicate with each other and management in many different ways, as
well as being communicated to by management in many different ways. Employee

communication is a very powerful factor in the level of employee satisfaction that

workers in an organization have. From the perspective of the employee,

communication from management is a reaffirmation of what the leadership believes

and stands for. For this reason, the effectiveness and efficiency of communication in

an organization is often used as a barometer to gauge the performance and overall

effectiveness of an organization.

• It is essential that all employees understand the business

• Communicating the rationale for, and details of, strategies, decisions, and
actions is vital.
• Immediate, general dissemination of critical information is needed
• Communicate on a Right-to-Know rather than a Need-to-Know basis
• The more important the information, the more people we tell
• Negative information is used to improve the organization, not to punish people
• Always say what you actually did and do what you say you will do
• If you cannot tell employees something, at least tell them why you cannot tell
them

Employee Satisfaction and Teamwork

Only motivated, committed workers can successfully compete in the global

marketplace. Working smarter can only be achieved with an involved workforce.

Teamwork has been proven to improve many of the factors related to employee

satisfaction that includes increased motivation and productivity. Teamwork is now

being used as a behavioral modification tool, used to increase employee satisfaction

and motivate groups of employees toward organizational goals and objectives. The

assumption behind teamwork is to upgrade autonomy that is realized in terms of

identifying the best way of practicing a job to achieve the highest performance through

continuous search of employees for alternative ways of work practices. Increased

autonomy is expected to foster self-fulfillment and make jobs significant. Teamwork is

often viewed as an efficient and motivating method of coordinating and condensing

the individual contributions of individuals into one cohesive outcome. In this regard,

teamwork is viewed as a motivational tool for the purpose of enhancing individual

input and involvement through a group of employees working together in team

environments.

In addition to the employee satisfaction benefits that an organization is able to reap as

a result of effective teamwork, there are other tangible benefits as well. These include

employee empowerment, trust in management, and an engendered feeling of

organizational involvement

Interaction in the Workplace

Trust and a positive work environment are important elements in developing

interpersonal relations at work. Employees gauge how they are regarded by

management in many ways, but the words that managers’ use and the way they are

delivered are critical to employees’ perceptions of whether they are respected or

disrespected. A multitude of job satisfaction surveys indicate that when employees are
treated with respect by the management of an organization, the organization reaps the

benefits of increased retention, increased productivity, and an overall increase in job

performance. However, when employees do not feel respected the results are

correspondingly negative. This section of the paper will focus on key elements of

interpersonal interaction with employees, such as: empathy, sensitivity, conflict

resolution, stress, sexual harassment, and creating a generally accepting and congenial

workplace, all of which are key elements in employee satisfaction.

People’s reactions to change are generally not logical from an outsider’s (i.e.

Manager’s) perspective. People react according to their own needs at the time. People

differ in the value they place on satisfying different needs, so people’s reactions to any

change will differ from person to person. Empathy is generally considered the ability

to put one’s self in the position of another and try to understand the emotional impact

on them as a result of the situation. An important part of supervision and management

is the ability to react empathetically when necessary, in order to foster a perception of

understanding and be able to promote employee satisfaction. Research has shown that

empathy, to a certain degree, is an innate emotion that most humans are born with. For

example, babies seem to understand sadness and crying, or the laughter of others. The

research also shows that empathy can be coached, trained, taught

The following six behaviors are essential for leaders in establishing an organizational

atmosphere conducive to a high level of employee satisfaction:

 • Create an environment for empowerment

• Create an environment for innovation

• Create an environment for organizational agility

• Create an environment for organizational learning

• Create an environment for employee learning

• Create an environment that fosters and requires ethical and

honest behavior

These behaviors serve to instill a trust in management by employees that is necessary

to cultivate an atmosphere of mutual trust and commitment.

Employee Benefits

Due to escalating costs, family needs, retirement, flexibility and a myriad of other

personal desires, an employees’ benefits package has become an important part of their

job, as well as their level of commitment to and satisfaction with the organization they

work for. Because of the costs involved, many organizations today have to make a

choice: Offer an attractive benefits package and forgo profits, or cut back on employee

benefits and risk harming employee morale or even losing good employees. With the

ability to maintain qualified and satisfied workers at a premium today, providing

attractive benefits to employees is an important consideration for any organization

Most employees require, at a minimum, some sort of employer provided healthcare

plan. The realities of rising healthcare costs have resulted in employees being forced to

accept a greater financial burden in order to cover costs and still keep the expenses at a

reasonable level for the organizations that they work for. Although this negatively

impacts employee satisfaction, the situation is much the same at every organization

throughout the country.

A benefit that organizations are able to offer most days that can have a constant,

positive affect on employee morale is a flexible work schedule or liberal time-off

policy family, There is a growing dissatisfaction on the part of employees over the

number of hours they are being required to work, excessive overtime requirements,

and a sense of inflexible work hours. Organizations that are able to allow their

employees flex time schedules, often find a higher level of employee morale and

satisfaction as a result of being able to offer the benefit.

Another major benefit focus that can affect employee morale is having a viable

retirement benefit available to employees.

Employee Motivation

Motivational theories were briefly mentioned in the motivation and recognition

portion of this paper. This section will offer a more in-depth, analytical perspective of

motivational theories. Many of the topics covered thus far in this paper are elements

that serve to motivate employees such as: development, compensation, training, etc.

However, in addition to these elements that motivate employees are the theory and

practice of motivation that can be practiced actively in the workplace. This section will
examine several of these theories and practices, as they relate to employee motivation

and overall satisfaction in the workplace. This section of the paper is predicated on the

heavily researched hypothesis that motivated employees are satisfied employees. The

job of a manager in the workplace is to get things done through employees. To do this

the manager should be able to motivate employees.

In order to maximize productivity and efficiency in the workplace, employees must be

motivated. When employees feel motivated they are more creative, more efficient, and

most importantly, satisfied with their work

Motivation & Satisfaction Levels

chapter5

Increased Employee Satisfaction Leads to Increased Creativity and Innovation

One of the more beneficial results of increased employee satisfaction is the potential

for employees to exhibit more creativity and innovation. It has been found that

increased levels of creativity and innovation in employees have a positive effect on the

corporate profitability of an organization. It is important to note however, that

creativity and innovation are positive by-products of satisfied employees, therefore

making it important for management to focus on the previously discussed elements of

employee satisfaction. This section will consider the important elements and factors

typically associated with employee idea creation and innovation, as well as give

examples from one of the most innovative companies in the world, Apple Computer

Corporation.

The Customer-Centric Organization

The definition of a ‘customer-centric’ organization is: an organization that defines

markets and sells its products and services from the customers’ point of view. The

term itself has become overused, as many organizations say they are customer-centric,

but few really are. It is important for organizations that claim to be customer-centric to

deliver on the proclamation or risk alienating customers who rely on the statement. If

customers have a reasonable expectation that they will be the focus of the

organization, it is imperative that they are. Organizations that fail to deliver on the

promise of focusing on the customer, often suffer the consequences in the form of

economic loss. Becoming customer-centric involves many of the elements that this

paper will now consider such as: branding, marketing, service, measurement, and

customer service management (CSM) programs. Actually becoming a customer

focused and driven organization requires more than just deciding it is a good idea in

order to boost sales. As the analysis in this paper will show, becoming a real customer
focused organization requires dedication, time, commitment, and a great deal of effort.

Organization’s that become ‘customer-centric’ understand that their business is no

longer about the product or service that they once provided; it is now about the

customer that uses the product or service provided by the organization. Customers

don’t buy products or services; they buy results. Customer-centric organizations ask

questions differently. Their values, mission, and organizational structures exist for the

customer, not the organization or its owners.

Figure 13: Customer Loyalty Pyramid

For many years managers have believed that the key driver of profitability is share of

market. Based on the collection of factual experiences of a number of organizations,

they identified a factor more often associated with high profits and rapid growth –

customer loyalty Therefore, it is essential that organizations be able to identify loyal

customers in order to ascertain their contribution to profitability, and ultimately, their

value to the organization in terms of revenue. Whereas satisfied customers may

contribute to organizational profitability, this cannot be relied on and is most likely not

constant or stable. At the same time, the income stream from a loyal customer is

constant and can be relied on to continue to contribute to organizational profitability.

Calculations can be made to assess the value of each customer, especially today, with

access to more sophisticated customer tracking systems. Once you have an accurate

picture of the true value of a customer, you’re in a position to calculate what it would

be worth to increase your customer retention rate – which is the only realistic way of

evaluating investments in customer acquisition and customer loyalty. “Retention

economics lets companies make rational, dollars-and-cents decisions about the value

of increased customer loyalty and tells them accurately, which loyalty-enhancing

investments will meet their rates of return”. It is important for organizations to

understand that not all customers are profitable. Being able to calculate the

profitability of a customer keeps a customer-focused organization from becoming

customer obsessed. The customer profitability measure may reveal that certain targeted

customers are unprofitable. Because initial customer acquisition is expensive, newer

customers will usually prove to be unprofitable because they have not yet had the

opportunity to build a buying relationship with the organization.

The Effects of Employee Satisfaction- Customer Retention on Profitability

The service-profit chain theory establishes relationships between profitability,

customer retention/loyalty, and employee satisfaction. The links in the chain are as

follows:

1) Profit and growth are stimulated primarily by customer loyalty;

2) Loyalty is a direct result of customer satisfaction;

3) Value is created by satisfied, loyal and productive employees;

4) Employee satisfaction, in turn, results primarily from high-quality support services

and policies that enable employees to deliver results to customers.

The Effects of Customer Loyalty on Corporate Profitability

It is vital for an organization to concentrate on making customers satisfied, and more

importantly, create a sense of loyalty that will lead to a long-time customer. Customers

may be satisfied with a one-time sales experience, but yet not be loyal customers that

will lead to profit enhancement for the organization. Therefore, it is vital for

companies to focus on the elements that turn satisfied customers into loyal customers.

Understanding the key drivers involved in creating customer loyalty is to understand

the underlying facets of what makes an organization profitable. Loyal customers

maintain an emotional connection to the organizations that they consider themselves

loyal to. It is no longer enough to rely on customer satisfaction. In order to grow and

improve corporate profitability, organizations must now concentrate on turning

satisfied customers into loyal customers.

Customer Loyalty is a Direct Result of Customer Satisfaction

Creating loyal customers does not happen with a one-time transaction, but rather over

time. In order to turn customer satisfaction into customer loyalty, an organization must

focus on understanding the needs and requirements of the customer. As previously

stated, “A satisfied customer is a good customer, but may not be loyal at all. A

satisfied customer may feel that their needs were met, the product was satisfactory, and

the service was acceptable.” The key is that a previously satisfied customer may

choose a competitor the next time for a variety of reasons. A loyal customer that has

had many satisfactory experiences will come back because they are loyal and feel

some emotional connection with the organization. In addition, they will tell others of

their experiences and tout the organization to whoever will listen. Loyal customers

have their needs met continually by the organization and do not think of going to a

competitor for superficial reasons, such as a one-time savings.

Creating Value through Satisfied, Loyal & Productive Employees

The elements involved in creating satisfied, loyal and productive employees has been
thoroughly analyzed and discussed in earlier sections of this paper. What will be

considered in this section is how to leverage those employees for the purpose of

creating value in order to improve corporate profitability. This paper previously

analyzed the many elements that contribute to employee satisfaction comprehensively.

In order for organizations to capitalize on these elements that create employee

satisfaction, they must consider employees important and essential assets of the

organization, rather than just part of the operations process. Organizations that

concentrate on creating value in their employees are able to realize a positive

correlation in customer loyalty, and subsequently in added profitability, as seen by the

previously cited examples. As was previously stated, “Establishing an organizational

culture that promotes the elements necessary to enhance employee satisfaction would

prove to have a positive affect on both customer retention and corporate profitability.”

Satisfied Employees’ Impact on Customer Loyalty and Corporate Profitability

In depth research on the topic of the service profit chain indicates that there are three

important elements that make up the chain; employee satisfaction, customer

retention/loyalty, and corporate profitability. Although each is reliant on each other to

form the “chain”, the process begins with employee satisfaction. In essence, the

employee is a conduit between customer loyalty and the resultant positive impact on

corporate profits. Employee satisfaction is a key attribute of the engaged employee

who embodies a high degree of motivation and sense of inspiration, personal

involvement and supportiveness. This employee satisfaction is in turn, translated into

the ability and willingness to provide the best customer service, and consequently
customer satisfaction, as possible. An organization that is able to constantly perpetuate

this synergistic relationship will benefit by realizing greater customer loyalty that will

be translated into increased corporate profitability.

When the service profit chain is implemented correctly and effectively, it operates as a

constant and consistently moving process with one element of the chain enhancing the

next. When a company consistently delivers superior value and wins customer loyalty,

market share and revenues go up. “The better economics mean the company can pay

workers better, which sets off a whole chain of events. Increased pay boosts employee

morale and commitment; as employees stay longer, their productivity rises and

training costs fall; employees’ overall job satisfaction, combined with their knowledge

and experience, leads to better service to customers”. When customers receive

repeated excellent customer service from motivated, knowledgeable, and loyal

employees, they too become loyal and contribute to the service profit chain of an

organization. Although the employees are reliant on the organization for a job, the

organization in turn, is reliant on the employee to create a loyal relationship with the

organization’s customer so that maximum profitability can be achieved and result in an

ever-larger investment in the employees of the organization. This investment helps to

ensure the ongoing inertia of the service profit chain within an organization.
 The Effects of Employee Satisfaction and Customer Retention on Corporate

Profitability

Customer Loyalty Effects on Corporate Profitability

Customer loyalty can have a positive impact on corporate profitability. Customer

loyalty relates to probable behaviors. To measure customer loyalty, an organization

must develop specific dimensions of customer loyalty to determine the description and

intensity of customer loyalty in aggregate and within each core segment of key

customer served.

The importance of creating and maintaining customer loyalty is not new. Most

corporate leaders understand that it costs more to find a new customer than to keep an

existing one. However, despite heavy investments in customer satisfaction efforts,

rewards programs, and CRM initiatives and infrastructure, loyalty remains an elusive

goal in almost every industry.

Recommendations & Where, When, How, and Why

Employees as Assets
Recommendation: Employees should be considered valuable assets that are integral

parts of an organization’s success and future.

Reasons: The literature and professional input is clear that without satisfied and

supportive employees, an organization cannot realize improvements in operations,

customer service, or any other profit generating initiative. The costs of neglecting

employees as valuable assets and an integral part of an organization’s core strategy

means losing talent and any competitive edge an organization may have.

Points of Caution: It is not enough for an organization to profess that they believe

their employees are invaluable assets; they must take actions to solidify this belief. Just

as they would with valuable machinery, an organization should invest in the

maintenance and upgrade of their employees as well.

Addressing Employee Satisfaction Comprehensively

Recommendation: All of the elements involved in employee satisfaction should be

analyzed and addressed in order to maximize the potential success and results of the

analysis.

Reasons: It is essential for organizations to comprehensively analyze all of the

potential elements that may have an effect on employee satisfaction. Every element is

important and some elements may affect some employees more than others. Only
when all of the factors involved in employee satisfaction have been analyzed, can an

organization implement an effective strategy designed to address them.

Points of Caution: Many organizations set out to improve employee satisfaction, only

to begin by targeting what are thought to be the “major” problems or issues. In fact, all

elements should be analyzed, whether or not an issue is believed to exist. No element

is more important than any other element, even though it may have a greater effect on

employee satisfaction.

Employee Involvement

Recommendation: Employees of the organization should be involved in the elements

related to their own satisfaction.

Reasons: Employee owned change is practical and functions as a discipline to focus

energy on specific tangible goals. The wants and needs of the individual are essential

input to the overall goal-setting process of the group. Employees that are empowered

to provide input into their own satisfaction strategies will take ownership of the new

process and work to make it successful.

Point of Caution: The leadership of an organization really needs to allow their

employees to have meaningful input into a service profit chain strategy

implementation. Making it only look as if the employees will have superficial input
will cause them to become disinterested in the strategy, or rebel against the results.

Employee Feedback

Recommendation: Organizations should constantly assess employee attitudes through

the encouragement of proactive feedback and the guarantee of no retribution.

Reasons: All employees should have frequent opportunities to receive and give

feedback to the management of the company in regard to the progress of their work on

a service profit chain initiative. This allows employees to have an empowering voice

that they know will be heard, but also allows management to assess the attitudes and

input of the workforce.

Points of Caution: Feedback is important to both the employee and management of

an organization. Employees must know that their feedback will be listened to and

considered without the fear of retribution. Organizations that selectively punish

employee feedback or do not respond in any way, quickly stifle the process and create

discontent among workers.

Customer Centricity
Recommendation: Organizations that are contemplating instituting a service profit

chain strategy should first become a truly customer-centric organization.

Reasons: Successful organizations must go beyond meeting customer expectations

and work to exceed them. This requires a new type of business strategy where the

customer is the center of the strategy. This is known as customer-centricity. Metrics

arise from the customer service strategy as reference points to keep the entire

organization focused, to measure progress against business goals, which are now all

focused on the customer and the most efficient delivery of products and services to

them.

Points of Caution: Organizations need to avoid just saying they are customer-centric

without actually changing their strategy and focus to become customer centric.

Literally all business processes must be retooled to work on behalf of or in the best

interests of the customers. Organizations that just pay lip service to being customer-

centric will not have the level of success as those organizations that actually adopt it as

a working strategy.

QUESTIONNAIRE:
1) Which of the operator’s service do you use for landline?
• MTNL

• Reliance

• Airtel

• Any other

2) Which of the operator’s service do you use for mobile?

• MTNL

• Vodafone

• Airtel

• Any other

4) If MTNL, since how long are you using it?

• One month

• Less than a year

• One year

• More than one year

5) Which of the following services do you use?

• Post paid

• Prepaid

6) Which service is more suitable to you?

• Call rates

• Sms rates

• VAS

• Network

7) Services offered by them justify their cost?

• Yes

• No
8) Are you satisfied with the service network of MTNL?
• Yes

• No

9) Do you call customer care?

• Yes

• No

10) If yes, then how often you call them?

• Daily

• Once in a week

• Occasionally

• Regularly

9) For what reasons you call customer care?

• VAS

• Information regarding current connection.

• New schemes

• Complaints

12) How do you find MTNL as compared with other service providers?
• Excellent.
• Good.
• Average.
• Poor.

13) Would you like to replace your current service?

• Yes

• No
 FINDINGS
1. Number of customers using

NETWORK-> MTNL RELAINCE AIRTEL OTHER

NO. OF 110 40 30 20
CUSTOMERS

120

100

80
NO. OF CUSTOMERS
60

40

20

0
MTNL RELAINCE AIRTEL OTHER

2. Number of customers using various subscribers in mobile phone networks.

NETWORK-> MTNL VODAFONE AIRTEL OTHER
NO. OF 30 70 40 60
CUSTOMERS
 70
60
50
40 NO. OF CUSTOMERS
30 3-D Column 2
20 3-D Column 3

10
0
MTNL VODA AIRTEL OTHER

3. More suitable service

SCHEME-> CALL RATE SMS RATE VAS NETWORK

NO. OF 29 31 18 22
CUSTOMERS

CALL RATES
SMS RATES
VAS
NETWORK

4. Network satisfaction in case of MTNL.

YES NO
PERCENTAGE OF 17% 83%
CONSUMERS
 PERCENTAGE OF CONSUMERS

YES
NO

5. Reasons for calling customer care

VAS Information New schemes Complaints

regarding
current
connection.

NO. OF 53 31 27 89
CUSTOMERS
 Reasons for callingcustomer care.

NO. OF CUSTOMERS

VAS 53

Information regarding
current connection. 31
New schemes 27

Complaints 89

Conclusions:
• A good majority of the respondents (110 out of 200) were using Mtnl landlines.
• while 40 were using reliance
• Aitel was used by 30
• While 20 respondents were using other service operators.

• The number of cellular phone operators for mtnl was less as only 30.

• Majority were using Vodafone services.

• Airtel found its place above mtnl and it was 40.

• While a large number of people were using other cellular operators.

• Some customers felt that when landline phone gets out of order, it is not checked
or corrected for even 1month; hence there was heavy business loss. Customers are
very much dissatisfied with Linemen, because of irresponsibility.

• Regarding Cell one respondents complained, Network is always busy with other.

• During the rainy season noise in the instrument is a problem.

• Respondents felt that there was no personalized service to customers.

• Log in for the customer care is to long because of which customers have to face
difficulty because customer’s mainly called them to make complaints for some
reason or the other.

Overall conclusion was that mtnl users were not very much satisfied with the mtnl
services and being a public enterprise it will have to make great efforts to understands
customers expectat