Yangon University of Economics

Department of Commerce
M.Com & M.Act Programme

The Impact of CRM Practices on the Satisfaction of the

Employees in Hospitality Industry

This proposal submitted in partial fulfilment of the requirements for the degree of Master
of Commerce

Supervised By: Submitted By:

Daw Khin New Ohn Ma Hnin Si Myat Tun
Associate Professor M.com II (33)
Department of Commerce

July, 2020

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 Contents

Titles
 Introduction
 Rationale of the Study
 Objectives of the Study
 Scope and Method of the Study
 Organization of the Study
 Conceptual Framework of Previous Study
 Conceptual Framework of the study
 References

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 Chapter (1)
Introduction
Hospitality industry is the one which is the front end of the service industry sector and
from which the customers request for the better service. This shows that the hospitality
industry is ahead of any other business in understanding the customer relationship
management. As the hotels, their hospitality backbone is composed of customer service. The
standards of services and facilities offered from the hotel combine with the use of the
technology, environmental services, prices, market segments, regional preferences, and so on.
Most of the top hotels become to have their own websites and it proves that they use
technological advances for the customer relationship management.
Customer relationship management (CRM) is composed of the information technology
with marketing and it is a management strategy accepted in most of the companies
worldwide. It is a broadly recognized strategy for the activities of management and nurturing
the company’s interactions with their customers and prospects in sales. The general goals of
using the CRM practices are to find, attract and gain new clients, nurture and retain them and
to reduce the costs of marketing and client service. The CRM practices can denote the
business strategy of the company. If the practices are effective, the people, the processes, and
the technology all work together to develop profitability, and reduce the costs of operation.
Organizations become aware that customers are the basic for their existence. For that
reason, they are willing to maintain them, and they seek to build the relationship with their
customers since CRM is very important to gain their long-term goals, and the success of the
organizations to achieve their goals depends mainly on the efficiency of the management of
their relation with their customers (Nguyen, 2007).
This study shows the survey on the three resorts with different rates by focusing on
their customer relationship management and their rates. The impact of those practices on the
satisfaction of the employees working in those resorts are asked. Since most of the businesses
pay attention to the customer relationship management based on the concept of building good
relationship with their customers, there have little attention to their employees. The main aim
of this study is to compare the results of the impact of CRM practices on the employees’ job
satisfaction since employees play an important role in the whole process of the business to
get success in long term.

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1.1. Rationale of the Study
Customer relationship management activities are widely used in the hotel industry
because customers are regarded as the basic of the success of the business. However, the
employees’ job satisfaction and retention can be greatly influenced because of those
practices. Since employees are the key sources of the organizational processes and they play
an important role in performing those practices, their satisfaction on those practices are
explored in this study. Whether there is the retention rate increased because of those practices
has been the main theme of this research.
In these days, the hotel industry has been popular among the business people. According
to the increase in world population and the travellers, hotels have to be used for different
purposes. Although there are a lot of hotels in a local country, their reputations and ranks are
different. Since the customer relationship is the very important matter not only to welcome
the customers but also to retain the regular customers, it has been necessary for the hotel
owners and management teams to improve the customer relationship of their hotel staff.
There can also be different other factors which make the customers feel like not going to
those hotels again or be as the loyal customers. Those factors can include the facilities of the
hotel, the limitations of the allowance, the durations and rates of the room, terms and policies
of the hotel and so on.

The effective CRM systems give the benefits to the organizations such as helping them to
determine their most profitable customers and establish the long-term relationship with them
by increasing the sales revenue of the organization, enabling the firms to customize and
personalize the products and services based on the needs, preferences and buying habits of
the customers, and providing the better customer service and support through the touch
points. There are three main types of CRM; namely: operational CRM, analytical CRM, and
collaborative CRM (Kukreja, 2020). Whether the selected resorts use those types of CRM
and the employees’ satisfaction on those practices and the retention on that are pointed out in
this research.

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 According to Morgan (2014), there are top ten factors for the employee job satisfaction as
the appreciation for the work, good relationships with the colleagues, good work-life balance,
good relationships with supervisors, company’s financial stability, learning and career
development, job security, attractive fixed salary, interesting job content, and company
values. In this research, whether those factors are influenced by the CRM practices and the
retention of the customers are measured based on it.

1.2. Objectives of the Study

The objectives of this study are
- To identify CRM practices of the selected hotels of this study, and
- To examine the impact of CRM practices on the satisfaction of the employees.

1.3. Scope and Method of the Study

This research is mainly focused on exploring the impact of the customer relationship
management practices on the retention of the employees according to their satisfaction on the
CRM practices in their hotels. The three selected resorts which are all in Inle: Aureum Palace
Resort which is a 5-star resort, Inle Resort with 4 stars, and the Serenity Inle Resort with 3
stars have become the interesting hotels to do research of their customer relationship
management systems. The research is to find out the different management systems on
customer relationship of the different resorts with different rates. Both the primary and
secondary data are used in this study and as the primary data, the data is collected from the
questionnaire to nearly 200 employees of the selected resorts. The sample size is based on the
80% of total employees in three selected hotels. The respondents who are the employees of
the selected three resorts are asked to rate each statement using Likert scales of 1 to 5. The
secondary data is obtained from the previous studies, research papers, and journals, and also
the profiles of the resorts are also reviewed. All the employees in those three resorts are
included in this study as the respondents.

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1.4. Organization of the Study

There are five chapters for the fully research of this study. Chapter one is the
introduction with the rationale of the study, objectives of the study, scope and method of the
study, organization of the study. Chapter two describes the theoretical background, and
conceptual framework. In chapter three, the profiles of the selected resorts and the research
methodology are presented. In chapter four, the findings of the research are included, and
chapter is for the discussion of the findings. Conclusion with the recommendations and
suggestions are followed as the final part. Then, questionnaire form is attached at the back of
the book and there is also the reference lists and the links of the websites referred in studying
the previous studies and theories of the related researches.

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1.5 Conceptual Framework of Previous Study

The following theoretical framework shows the evidence of a previous study of

(Abdullateef et al., 2013) where the linkages between CRM Dimensions ( Customer
Orientation, CRM Organization, Knowledge Management, and Technological Based CRM),
Employee Job Satisfaction, Qualitative Overstretch and Intention to Quit in the call center
industry are shown. Successful CRM implementation requires the organization to effectively
synchronize people, processes and technology as they represent the extent to which
management and employees accept CRM and support the implementation.

Figure 1: The Linkages between CRM Dimensions and Employee Job Satisfaction

Source: [ CITATION Ali13 \l 1033 ]

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1.6 Conceptual Framework of the Study
Based on the objectives of the research, and the theories of the relationship of the
CRM practices and the employees’ job satisfaction, the conceptual framework for the
research is built as follows;

Figure 2: Conceptual Framework of the Study

Independent Dependent Variable

Variable

Employee Satisfaction Factors

-appreciation for work

-good relationships with the

colleagues

-good work-life balance

-good relationship with supervisors

CRM practices -company’s financial stability

-Operational CRM -learning and career development

-Analytical CRM -job security

-Collaborative CRM -attractive fixed salary

-interesting job content

-company values

Source: based on Kukreja (2020) and Morgan(2014)

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References

 Ahmad Zamil, A. (2011). Customer Relationship Management: a strategy to sustain

the organization's name and products in the customers' minds. [Online] Available
at: https://www.researchgate.net/publication/220007771_Customer_Relationship
Manag ement
a_strategy_to_sustain_the_organization's_name_and_products_in_the_custome
rs'_minds. [Accessed 13 July 2020].

 Aliyu Olayemi Abdullateef* Sany Sanuri Mohd Muktar, R. Z. (2013). Effects of

Customer Relationship Management Strategy on Call Centre’s Employee Intention to
Quit: Evidence from Malaysia Call. Malaysia: College of Business, University Utara
Malaysia.

https://cyberleninka.org/article/n/234045
 Kukreja. S. (2020). Customer Relationship Management. [Online] Available at:
https://www.managementstudyhq.com/types-and-benefits-of-crm.html.
[Accessed 13 July 2020].
 Morgan, J. (2014). The Top 10 Factors For On-The-Job Employee Happiness.
[Online] Available at:
https://www.forbes.com/sites/jacobmorgan/2014/12/15/the-top-10-factors-for-on-the-
job-employee-happiness/#46a645765afa
 Nugen, Tnayuen. Et al. (2007). Strategies for Successful CRM implementation,
Information Management and Computer security, Vol. 15 No. 2, 2007, PP. 102-
115.

https://pdfs.semanticscholar.org/4133/93305d34857567af72dfcf0c95828a308c28.pdf