“Impact of Employees Performance Recognition

Techniques on Customer Satisfaction: A Research on

the Restaurant Business of Sylhet, Bangladesh”

Department of Business Administration

Shahjalal University of Science & Technology, Sylhet
 A Seminar Paper
on
“Impact of Employees Performance Recognition Techniques
on Customer Satisfaction: A Research on the Restaurant
Business of Sylhet, Bangladesh”

Course Title: Seminar Paper & Viva Voce

Course Code: BUS 300

Submitted To:
Sobhana Tanzima Atiq
Chairman
3rd Year 2nd Semester Examination Committee
Department of Business Administration
Shahjalal University of Science &Technology, Sylhet

Supervised by:
Sayma Sadia Shawon
Assistant Professor
Department of Business Administration
Shahjalal University of Science and Technology, Sylhet

Submitted By:
SL No. Name Registration No.
1 Monish Harendra Roy 2017731030
2 Amin Husen Hasan 2017731050

3rd year, 2nd semester

Shahjalal University of Science & Technology, Sylhet
Date of Submission: 8th November 2021
 Letter of Submission

27th September 2021

To
Sayma Sadia Shawon
Assistant Professor
Department of Business Administration
Shahjalal University of Science & Technology,
Sylhet, Bangladesh.

Subject: Submission of the seminar paper.

Respected Madam,

We were assigned to prepare a seminar paper under your direct supervision on “Impact of
Employees Performance Recognition Techniques on Customer Satisfaction: A Research on
the Restaurant Business of Sylhet, Bangladesh” As the study part of the 2-credit course BUS
300.

We have tried to collect all possible information and make this paper acceptable, but still, there
can be some mistakes. We assure you that we did not take any unfair means to prepare the
report. Finally, we would like to request you to observe and accept our paper and forward us
to present it before the chairman of the examination committee.

Thank you very much for your time and consideration.

Sincerely yours,

Name Reg. No Signature

Monish Harendra Roy 2017731030

Amin Husen Hasan 2017731050

3rd Year 2nd Semester

Shahjalal University of Science & Technology
Sylhet.

i
 Letter of Certificate

27th September 2021,

I am delighted to declare that the group of students from the Department of Business
Administration, Shahjalal University of Science & Technology, Session 2017-18, Reg.no.
2017731030 and 2017731050 were given this topic “Impact of Employees Performance
Recognition Techniques on Customer Satisfaction: A Research on the Restaurant
Business of Sylhet, Bangladesh” for conducting a seminar paper as part of their BBA
program. They have reviewed all the literature and sources to collect primary and secondary
data have done their assigned task. I have supervised them throughout the preparation of the
paper.

I also certify that the paper is original and has not been submitted elsewhere previously for
publication in any form.

I wish them all the best.

Sayma Sadia Shawon

Assistant Professor
Department of Business Administration
Shahjalal University of Science & Technology, Sylhet.

ii
 Acknowledgment

By the grace of Almighty, we have completed the research on “Impact of Employees

Performance Recognition Techniques on Customer Satisfaction: A Research on the
Restaurant Business of Sylhet, Bangladesh.”

During our research, we interviewed some Managers of the Sylhet city restaurants who helped
us complete this research work. To name only a few of them would not be justified. Instead,
we express our sincere gratefulness to all of them.

We want to express special gratitude from our heart to our research supervisor Miss Sayma
Sadia Shawon (Assistant Professor, Department of Business Administration, Shahjalal
University of Science and Technology, Sylhet), for her valuable suggestions and supports,
which gave us the spirit to work. The help of our supervisor was an essential contribution in
preparing our seminar paper.

Our special thanks to all of them who helped us and inspired us.

Name Reg. No Signature

Monish Harendra Roy 2017731030
Amin Husen Hasan 2017731050

iii
 Abstract

Employee performance recognition techniques are used broadly by every organization to

recognize employees, motivating employees to attain more customer satisfaction to achieve
organizational growth. Restaurants of a contemporary epoch are putting more time, money,
and step into satisfying their employees. Restaurant owners and managers know that their
external customers will not be happy until their internal employees are satisfied. In this paper,
various employee performance recognition techniques, including awards, bonus/cash,
certificates of appreciation, nominations for training, praise in meetings, and job redesign, are
interrogated and assessed to evaluate their possible impacts on customer satisfaction.

A sample of 100 restaurant managers and 600 customers is taken for the study from various
restaurants situated in the Sylhet City of Bangladesh. The unique survey method will be used
to acquire data and the CSAT process to collect customer surveys. Moreover, the Likert scale,
ANOVA & Hypothesis testing will interrogate the relationship between employee performance
recognition techniques and customer satisfaction. Results show that all outlined performance
recognition techniques have a positive relationship with customer satisfaction. It reflects that
the employee performance recognition techniques have a pivot and essential role in making
customers satisfied.

iv
 Table of Contents

Letter of Submission ................................................................................................................. i

Letter of Certificate ................................................................................................................. ii

Acknowledgment .....................................................................................................................iii

Abstract.................................................................................................................................... iv

1. Introduction ................................................................................................................... 1

2. Literature Review .......................................................................................................... 3

2.1. Restaurant Industry.................................................................................................... 3

2.2. Employee Performance Recognition Techniques ..................................................... 3
2.3. Customer Satisfaction................................................................................................ 5
3. Overview of the study.................................................................................................... 7

3.1. Objectives of the study .............................................................................................. 7

3.1.1. Primary Objective: .................................................................................................... 7

3.1.2. Secondary Objective: ................................................................................................ 7

3.2. Scope of the Study ..................................................................................................... 7

3.3. Limitation of the Study.............................................................................................. 8
3.4. The rationale of the Study ......................................................................................... 8
3.5. Employee Performance Recognition Techniques: .................................................... 8
4. Methods of the Study .................................................................................................. 10

4.1. Conceptual Framework ........................................................................................... 10

4.2. Hypothesis Formulation .......................................................................................... 10
4.3. Study Design ........................................................................................................... 10
4.4. Sample Design ......................................................................................................... 10
4.5. Questionnaire Design .............................................................................................. 11
4.6. Respondents’ selection ............................................................................................ 11
5. Data Collection & Analysis ......................................................................................... 12

5.1. Data Analytical Framework .................................................................................... 12

5.1.1. Acceptance or Rejection Level of The Employee Performance Recognition
Techniques from Managers Perspective (1 To 5) (Mean, Standard Deviation):..... 12

5.1.2. Acceptance or Rejection level variable: .................................................................. 13

5.1.3. Customer Satisfaction Level on Acceptance or Rejection: ..................................... 13

v
 5.1.4. Overall Customer Satisfaction Level: ..................................................................... 14

5.1.5. Findings from Data Analytical Framework: ........................................................... 14

5.2. Hypothesis Testing .................................................................................................. 14

5.3. Summary Results of Hypothesis Testing ................................................................ 16
6. Findings & Recommendations ................................................................................... 17

6.1. Findings ................................................................................................................... 17

6.2. Recommendation ..................................................................................................... 19
Conclusion .............................................................................................................................. 20

References ............................................................................................................................... 21

Appendix I .............................................................................................................................. 22

Appendix II ............................................................................................................................. 24

vi
 Page |1

1. Introduction

The restaurant and food business has been one of the most profitable businesses in the past few
years in Bangladesh. Since then, this business sector has been a topic of analysis and finding a
pattern of business and public sentiment on food trends. The restaurant and food business sector
depends on the quality of food, price comparison, and quality of service offered to the
customers, so it is difficult to find the pattern of this business sector.

Nowadays, the service industry is dominating the business world. In developing countries, the
largest growing area of business is service industries. The restaurant business is one of the
service-oriented businesses, and it is popular in Bangladesh. Chain of restaurants is the primary
source of favorite food in most of the cities of Bangladesh. Still, many local chain restaurants
with a unique taste and at a low cost are competing with the international chains of the
restaurant. In Bangladesh, the restaurant industry is highly competitive in terms of quality of
service as it has a significant effect on the profitability and success of the restaurants.

It has been observed that a person visits a restaurant for the first time on another’s
recommendations. They are satisfied with the services; then, it is likely to revisit the restaurant
and make recommendations to others in the future. In attracting and retaining customers, the
restaurant industry is one of the highly competitive industries. For this restaurant, managers
and operators have a clear picture of the customer’s needs, wants, and perception of customers
that will finally decide about the success and failure of the restaurant. Understanding
customers’ needs and wants and factors that influence them will provide a clear idea to the
restaurant managers and operators to design, develop and deliver suitable offerings to satisfy
customers (Syed, & Conway, 2006). It is noticed that if loyal customers increase by 5% to
10%, it will increase the profit by nearly 100%. This is why many restaurants make themselves
customer-oriented and make their objective “customer first.” For this reason, they are getting
success and increasing profits.

A restaurant is a setup where people eat, drink, and have related relaxing and entertaining
moments, which is the sole purpose of restaurant owners to satisfy their customers. The groups
of people dealing with the customers are known as the internal customers (employees). These
internal customers should be happy to delight the external customers, ultimately increasing the
restaurant’s profit. Many restaurants are spending much of their earnings to satisfy their
internal employees by providing different rewards, like a Thank-you Letter or formal award in
the annual function of the organization. Internal customers’ ideas are most suitable for front-
 Page |2

line staff in the restaurant business because customer satisfaction mainly depends on employees
dealing with them.

Hence, this study aims to determine how employees are recognized in the restaurant industry
and how these employee performance recognition techniques affect customer satisfaction in
the restaurant industry of Sylhet city, Bangladesh.
 Page |3

2. Literature Review

2.1. Restaurant Industry

The market size for the restaurant industry in Bangladesh has been growing for quite a few
years now. It was not too long ago when there were minimal options, and people would have
difficulty finding a decent budget-friendly place to socialize with others over some quality
food. The days of despair are now over, and there is ever-growing love for the dining out
culture.

The restaurant industry of Bangladesh has become highly competitive due to the quality of
services it provides. The service quality of the restaurant industry directly relates to profitability
and success; this is why local fast-food chains are competing with international fast-food chains
restaurants in Bangladesh that provide good quality of services and unique regional tastes at
low cost. The restaurant industry is growing in Bangladesh rapidly, which relies heavily on
population growth, increase in employment, and changing lifestyle patterns. In today’s
changing lifestyle, the demand for time-saving products increases, and the top of the food is
fast food.

Gagić et al. (2013) introduced four dimensions of restaurant quality: Food quality, service
quality, physical environment, and price fairness. Canny (2014) used three dimensions to
measure dining experience: Food quality, service quality, and physical surroundings. Saraiva
et al. (2011) developed a study to evaluate customer satisfaction victimization in the subsequent
dimensions: Menu, price, waiting time, employee service, hygiene quality, and therefore the
internal and external surroundings. Surapranata and Iskandar (2013) evaluated the service
quality of a family edifice in state victimization the SERVQUAL dimensions, i.e., tangibles,
dependability, responsiveness, assurance, and sympathy.

2.2. Employee Performance Recognition Techniques

No business in the world is not striving for a good and healthy state. The only contribution of
successful performance of employees can make the organization successful (Economic and
Social Research Council, 2006; MacDonald, 2005). It has been noticed that firms sustaining
competitiveness in the market constantly focus on improving service quality (Stevens, Khutson
& Patoon, 1995; Parasuraman, Berry & Zeithaml, 1991). Human resource processes are
 Page |4

directly associated with employee attitude, producing job satisfaction or dissatisfaction

(Rainey, 1991). At the same time, job satisfaction creates motivation, affecting employee work
efforts and productivity, ultimately affecting customer satisfaction (Lawler, 1994).

Every organization focuses on measuring and evaluating the performance of employees by

using different tools like balanced scorecards to motivate employees according to employees’
accounts (Kaplan & Norton, 1996). Nelson (2005) gives plenty of examples of using multiple
awards in companies in his book “001 Ways to Reward Employees”. An employee considers
awards as the incentives and recognitions which act as the motivational source for them.

All employees have specific responsibilities, and they also have moral obligations, and they
are supposed to act in a certain directed way (Fisscher, Nijhof, and H. Steensma, 2002). It is
somehow subjective morality, which is more concerned about common sense, but actual
responsibility may be beyond role morality. Pointing out demands and duties of one’s role to
be filled is role morality (Werhane and Freeman, 1999).

Sometimes rewards are treated as psychological management that believes that when
employees know that their customers are satisfied, they will work hard more effectively
because they will be satisfied. Sometimes the rewards also act as implicit. It is the belief of
management that a long-run happy customer is more profitable for the organization. Leadership
motivates employees by communicating that employees will remain employees and earn more
wages if the firm is more beneficial. In some organizations, employee wages/salaries directly
stick with customer satisfaction or quality measures (Hauser, Simester, & Wernerfelt, 1994).
Clive Mettrick, an executive of the company, once said that rewarding and recognizing
employees’ positive results is essential in employee retention. To retain qualified employees to
engage them in customer satisfaction, resource management, and performance improvement,
they should maintain reward and recognition programs (Freed, 1999).

Restaurant owners and managers should have a clear understanding of the needs, perceptions,
and wants of customers if they want to attract and retain customers because customers are the
ones who choose their existence, and this makes the restaurant industry more competitive
(Gregoire, Shanklin, Greathouse & Tripp,1995). Extreme competition was observed in
restaurants regarding differentiated services (Koo, Tao, and Yeung, 1999; Sundaram, Jurowski,
and Webster, 1997).
 Page |5

Compared to past years, an increase in people’s spending on fast food, other food sectors are
taken away from the home market. To bring in the full potential of employees’ value,
restaurants should change the current philosophy; this can be done by understanding the
relationship between competitive advantage and high-performance work practice (Murphy &
Olsen, 2008).

2.3. Customer Satisfaction

For many years, service quality and customer satisfaction have become a significant area of
attention to researchers because it was found that both have impacts on organization
performance and customer behavior. Service quality gives higher profitability, while service
quality also provides customer satisfaction, spreading positive word of mouth (Söderlund,
1998). Various authors have confirmed and concluded that the profitability of an organization
is directly affected by the satisfaction of their customers (Anderson, Fornell & Lehmann, 1994;
Yeung, Ging & Ennew, 2002; Luo & Homburg, 2007). Yeung, Ging, and Ennew (2002)
confirmed that customer satisfaction produces customer loyalty that increases repurchase
intentions, spreading positive word of mouth. Knutson (1988) found the various significant
factors that matter to customer satisfaction: the convenience of location, safety and security,
prompt service, and friendliness of employees. Barsky and Labagh (1992) believe that location
and employee attitude are the factors that can easily influence customers’ satisfaction. At the
same time, Bolton and Drew (1991) are convinced that customer satisfaction represents a sign
of service quality offered by the organization.

Service quality is considered very complex. Its meaning is different from customer to customer,
but the most common definition could be comparing customer expectations and customer
perceptions of the service received by customers (Parasuraman, Zeithaml & Berry, 1988;
Grönroos, 1982). Some authors believe that customer satisfaction represents a sign of service
quality (Carman, 1990; Bolton and Drew, 1991). Other authors argue that service quality is a
sign of customer satisfaction (Churchill and Suprenant, 1982; Anderson et al., 1994; Oliver,
1997; Oh, 1999; Zeithaml and Bitner, 2003; Jamali, 2007).

These authors agreed that service quality is a cognitive evaluation that may give satisfaction to
the customers. So, it may be concluded that service quality produces results of customer
satisfaction. Customer satisfaction should be measured based on the quality of service provided
to the customers by the services that are attaché to the product/ service (Vavra, 1997). Word of
 Page |6

mouth recommendations and repeat purchase behavior are the significant reasons customers’
satisfaction is thought to have great importance in all organizations (Berkman and Gilson,
1986).

Factors affecting service quality and customer satisfaction guide owners and restaurant
managers to develop and deliver suitable offerings. Only a part of an offering of a restaurant is
intangible and heterogeneous, and the success of all other features depends on the quality of
service provided to the customers (Syed, & Conway, 2006). It has been observed that a satisfied
customer from assistance offered by a restaurant is likely to visit again in the restaurant even
recommend to other friends and relatives (Kivela, Reece, and Inbakaran, 1999; Pettijohn,
Pettijohn and Luke, 1997). Restaurants’ net profits can be doubled if a restaurant’s loyal
customers increase from 76 to 81% (Mattila, 2001). Social contacts play an essential role in
selecting a restaurant; almost 44% of customers visit a restaurant the first time on the
recommendation of friends, whereas only 10% visit a restaurant first time with a former
customer (Smith, 1996; Stevens, Khutson, and Patoon, 1995).

“Satisfaction is generally viewed as a broader concept . . . service quality is a component of

satisfaction” (Zeithaml and Bitner, 2003, p. 85).

Customer satisfaction is essential because of its significant impacts on firms’ long-term

performance and customer purchasing behaviors. In academics, consistently providing high CS
is well acknowledged to be associated with higher customer loyalty and enhanced reputation
(Fornell, 1992; Anderson & Sullivan, 1993; Wangnheim & Bayon, 2004).
 Page |7

3. Overview of the study

The study’s primary purpose is to find out the impact of employee performance recognition
techniques on customer satisfaction and how effective these techniques are in motivating the
employees in the restaurant industry of Bangladesh.

3.1. Objectives of the study

3.1.1. Primary Objective:

• To identify critical factors of employee performance recognition techniques used in the
restaurant industry of Sylhet, Bangladesh
• To assess the effectiveness of the employee performance recognition techniques.
• To examine the impact of employee performance recognition techniques on customer
satisfaction

3.1.2. Secondary Objective:

• To assess the relationship between employee performance recognition techniques and
a restaurant’s sales goal.

3.2. Scope of the Study

The study will cover the impact of employee performance recognition techniques on customer
satisfaction. However, the research will be conducted on restaurants situated only in the Sylhet
city of Bangladesh. Moreover, the study will not provide any immediate decision about specific
techniques and assess the impact of using the methods and how the methods help motivate the
employees and affect customer satisfaction.

The samples are collected from 100 restaurants in Sylhet city. A different questionnaire will be
given for customer satisfaction. Six customers from each restaurant, 600 customers, depending
on the availability, will be requested to fill the form if they have no objection. Also, 100
employers’ data is collected for the study purpose.

Moreover, for the betterment of this sector, analyzed data will be given to restaurant owners to
improve their service if needed.
 Page |8

3.3. Limitation of the Study

• When we started our research, we faced some limitations. The first hurdle was to find data
as the restaurant employers did not want to provide any information. Also, in some cases,
they did not want us to give customers the survey copy. It was so difficult for us to get both
employers' and customers' questionnaires filled. We had to talk with the restaurant owner
first and take his consent before going to the restaurant. And in some cases, customers did
not want to complete the survey questionnaire.
• Another limitation of the study was data accuracy. Sometimes the customers did not answer
the questions accurately. Sometimes, they randomly answered the questions, and as a result,
we had to collect more from some restaurants; moreover, we had to ask them and questions,
and according to the answer, we had to fill the questionnaire. According to taste, the data
differed slightly, so it would have been best to collect more samples according to age,
gender, and other factors.

Despite having these limitations, we were able to collect the data and conduct the research. In
some restaurants, the owner was beneficial.

3.4. The rationale of the study

The restaurant industry is a fast-growing industry in Bangladesh, which is partially service-

oriented and in-service industry. If an employee is recognized against their performance,
customers will be more satisfied with that employee’s service. This study aims to assess how
employees are identified in restaurants of Sylhet and how these employee performance
recognition techniques are connected with customer satisfaction in the restaurant industry of
Bangladesh.

3.5. Employee Performance Recognition Techniques:

Most business organizations use one type or another of rewards to enhance employees’ work
performance. Unfortunately, it is not yet clear which type of rewards in particular has the most
effective impact on people's reactions and performance. Rewards are defined as positive
outcomes that are earned due to an employee's performance, and these rewards are aligned with
 Page |9

organizational goals. When an employee helps an organization achieve one of its goals, a
reward often follows.
• Promotions: Promotion is a common but effective type of reward for the employees to
recognize their work performance. For better performance in the job, employees are
promoted to motivate and inspire them to work harder to achieve the company’s desired
goals. Promoting is one of the best ways to reward employees in recognition of their
work performance. The promotion provides better facilities for the employees, presents
new challenges for them, and helps them in career development.

• Cash Bonus: A cash bonus is a broadly used reward system for recognizing their work
performance. Sometimes these are equal to the employee’s full salary or half of the
basic salary. When an employee gets a cash bonus, others feel motivated, and they work
harder and efficiently to get that.

• Certificate of Appreciation: A certificate of appreciation is a written statement for the

employees to recognize their hard work. A certificate of gratitude can be shown to
anywhere else while switching jobs. It’s proof that the employee is a hard-working,
energetic person for which they were rewarded previously.

• Salary or wage increment: Many employers motivate their top-performing employees

by increasing salaries every financial period, and this reward translates into a fixed cost
to the organization.

• Praise in the meetings: Praise in the meeting is an intangible reward for employees'
work performance. It is a non-financial extrinsic reward where an employee’s
performance is recognized and praised by other employees.

• Using Photo frame of Employee of the Month: In service-based stores photo frame
of an employee of the month plays a vital role in motivating the employees. It’s an
intangible performance recognition technique.

• Paid vacation (Time-off): Employees have to earn vacations or take unpaid vacation
leaves if not earned. But when an employee works hard for a company or organization,
they are given paid vacation leave as a reward for their work performance.
 P a g e | 10

4. Methods of the Study

4.1. Conceptual Framework

For the research, data will be collected from restaurants in Sylhet city and through separated
questionnaires from restaurant managers and customers. The main proposition is, there is a
positive relationship between employee performance recognition techniques and customer
satisfaction.

Two hypotheses are formed on the positive relationship between employee performance
recognition techniques and customer satisfaction regarding which data will be collected. These
will be the main research topics, and ANOVA statistical techniques & Hypothesis testing will
be used for the study.

If both null hypotheses are accepted, we will be sure that Employee performance recognition
techniques positively impact customer satisfaction.

4.2. Hypothesis Formulation

● Hypothesis-1: Employee performance recognition techniques have an impact on
employees work performance

● Hypothesis-2: Employee Performance recognition techniques have an impact on

customer satisfaction

4.3. Study Design

The research adopts a qualitative, interpretative, inductive design with a subjective quantitative
element. The Likert scale technique is used for the questionnaire. ANOVA statistical
techniques & Hypothesis testing will be used for the study, keeping in view the nature of the
data collected. 2 Hypothesis testing will be tested based on the data.

4.4. Sample Design

Primary data will be used to do our research. In the primary, research questionnaires will be
used to collect the data that can be qualitative or quantitative since every organization uses
different techniques to recognize their employees. Survey questionnaires will be used to
 P a g e | 11

manage the data from the customers. In some cases, descriptive data will be taken, and the
questionnaire questions will be asked to the restaurant manager to gain some more knowledge.
For the customer survey questionnaire, we would ask for their consent.

4.5. Questionnaire Design

A well-designed questionnaire will be used to conduct the research. Questionnaires are placed
in Appendix-1 & Appendix-2 to the end of this study. There are two questionnaires, and one
for the restaurant employers means restaurant manager’s form, and another one is for the
customers.

The questionnaire is prepared to consider the impact of employee performance recognition

techniques on customer satisfaction. The design and structure of the questionnaire have been
simple, study-specific, unambiguous, minimal, and capable of invoking objective types of
answers through making a tick only of the statement which employers & customers consider
fit as per their agreement and disagreement is concerned.

The questionnaire first consists of measuring the respondents’ personal information, including
age, gender, occupation, to get the overall background of the customers for reaching a
conclusion based on many important things.

The customer questionnaire contains a Customer Satisfaction (CSAT) score, which will help
to determine their satisfaction level, and the employer copy to determine the employer’s
acceptance or rejection level of the recognition techniques

4.6. Respondents’ selection

Primary data is collected from divisional city restaurants. There was a questionnaire for
restaurant managers for employee performance recognition techniques and a different
questionnaire to assess customer satisfaction. The customer questionnaire was provided to
random customers but with an age variation. Analyzing the samples, the hypothesis will be
evaluated. We collected data only from the restaurants which use employer performance
recognition techniques in Sylhet, Bangladesh. Total 100 employers’ data and 600 customers'
information is collected.
 P a g e | 12

5. Data Collection & Analysis

5.1. Data Analytical Framework

5.1.1. Acceptance or Rejection Level of The Employee Performance Recognition

Techniques from Managers Perspective (1 To 5) (Mean, Standard Deviation):

Overall Overall
Standard
Questions Mean Sample Standard
Deviation
Mean Deviation
1. Employee performance recognition 4.27 3.81
technique is essential for the employees?
2. By using these techniques restaurant 4.32 3.83
business sector of Bangladesh will prosper?
3. It affects the customer satisfaction level? 4.22 3.75

4. Employees feel motivated? 4.37 3.88

5. Employees are doing their works more

professionally for using these recognition 4.46 3.97
techniques?
6. Employees have become more punctual for
work time for using these recognition 4.5 4.00
4.43 3.94
techniques?
7. Employees are performing well
individually or as a team for using these 4.33 3.84
techniques?
8. Employees work hard for the rewards 4.58 4.08

9. These techniques are purposeful 4.43 3.93

10. Employees are achieving/trying hard to

achieve their monthly or weekly milestones 4.69 4.19
for using these techniques?
4.56 4.07
11. Enhancing your service quality?
Source: Output based on the survey data calculation
 P a g e | 13

5.1.2. Acceptance or Rejection level variable:

Average mean & average sample standard deviation will be calculated for determining the
manager’s perspective on employee performance recognition techniques. Whether these
techniques impact or not and should these techniques be accepted or rejected can be selected
here. If these techniques get obtained through hypothesis testing, the next step is finding out
customer satisfaction.

5.1.3. Customer Satisfaction Level on Acceptance or Rejection:

Overall Overall
Standard
Questions Mean Sample Standard
Deviation
Mean Deviation
1. Employees are welcoming & friendly 4.47 4.00
2. Employees’ behavior is good 4.64 4.15
3. Restaurant floor, tables, and chairs were
4.41 3.94
clean and clear from debris?
4. Employee response is fast 4.00 3.57
5. Employees are professional 4.25 3.81
6. Employees have explicit knowledge
4.03 3.59
about their menu
7. Employees try to give their best
4.38 3.92
recommendations
8. Employees take customer
4.16 3.75
recommendations seriously 4.28 3.84
9. This restaurant serves food at a
4.23 3.83
reasonable price
10. Food was served hot and fresh 4.21 3.79
11. The availability of condiments, napkins,
4.51 4.06
and utensils were sufficient?
12. Server dresses appropriately and neat
4.21 3.79
and clean in appearance?
13 This restaurant provides the best
4.29 3.85
customer service
14. Their overall service was satisfied 4.06 3.60
15. Would you refer this restaurant to
4.41 3.96
others?
Source: Output based on the survey data calculation
 P a g e | 14

5.1.4. Overall Customer Satisfaction Level:

The customer satisfaction level will be calculated, and then the overall average mean and
overall standard deviation will be calculated. From that, it can be stated whether the customers
are satisfied or not by doing the hypothesis testing, where it will be a T-test hypothesis testing
with the level of significance, 𝛼𝛼 = 0.1, critical value, degree of freedom 15 − 1 or 14 for
which critical value, Critical from t distribution table will be 1.345. It will be a left-side one-
tail test so that the critical value will be negative.

5.1.5. Findings from Data Analytical Framework:

From the manager & customer satisfaction perspective evaluation, we got,

Hypothesis 1 Hypothesis 2
Findings Symbol (HE1) (HC1)
(Employer Table) (Customer Table)
Sample Mean X̅ 4.43 4.28
Sample Standard Deviation S 3.94 3.84
Hypothesis Mean μ 3 3
Number of Observation n 11* 15*
Level of Significance α 0.10 0.10
Degree of Freedom df 11 − 1 = 10 15 − 1 = 14
Critical Value −1.372* −1.345*
Source: Output based on the survey data calculation

* N is 11 and 15 because the overall is counted through mean calculation of table 5.1.1 & 5.1.3
* For H1, 𝑑𝑑𝑑𝑑 = 10 and 𝛼𝛼 = 0.10 so we get 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 = 1.372 from T-distribution table
* For H2, 𝑑𝑑𝑑𝑑 = 14 and 𝛼𝛼 = 0.10 so we get 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 = 1.345 from T-distribution table
* Both Critical Values are negative because both tests are left tail T-test

5.2. Hypothesis Testing

Collected primary data will be tabulated quantitively and transferred to a Microsoft Excel file.
SPSS software like Minitab is used for further analysis and calculations, i.e., mean, standard
deviation, one-way ANOVA (analysis of variance), T-Test, and other statistical tests to get the
outcome.

A T-Test is an inferential statistic to determine the significant difference between the means of
two groups, which may be related to certain features. When reporting the independent T-Test
 P a g e | 15

result, it is necessary to include the t-statistic value, the degrees of freedom (df), and the test’s
significance value (P-value). These values are clearly stated in Findings from Data Analytical
Framework (5.1.5).

The T-Test is limited to situations in which there are only two levels of the independent
variables. Instead, a technique called Analysis of Variance (ANOVA) is used. Also, a T-Test
can be used when only one independent variable has been measured. However, analysis of
variance has the advantage of analyzing things within which there are many freelance variables.
ANOVA explains how these independent variables interact and what these interactions affect
the dependent variable in these situations.

Our hypothesis testing is a T-test with one tail hypothesis testing because the condition of the
hypothesis population mean (μ) is less or greater than the stated value. In both hypothesis, the
coefficient value is about less than or more significant and equal to 3. If the T-test result is
greater than 3, we reject the null hypothesis and accept the alternative hypothesis.

HEO HE1
Employee performance recognition Employee performance recognition
techniques have a positive impact on techniques have no impact on employees
employees work performance work performance
HEO: 𝝁𝝁 > 𝟑𝟑
Hypothesis Formulation:
HE1: 𝝁𝝁 ≤ 𝟑𝟑

HCO HC1
Employee Performance recognition Employee Performance recognition
techniques have a positive impact on techniques have no impact on customer
customer satisfaction satisfaction
HCO: 𝝁𝝁 > 𝟑𝟑
Hypothesis Formulation:
HC1: 𝝁𝝁 ≤ 𝟑𝟑
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5.3. Summary Results of Hypothesis Testing

It is said that satisfaction cannot be driven from one source, and it always is driven by many
sources. Hence, this paper interrogates a few eulogizing pieces of evidence in this connection,
as explained in table 1. This paper confirms that employee performance recognition techniques
that go to employees significantly impact the satisfaction of the customers visiting restaurants
(i.e., t stats of the null hypothesis of all these constructs are > 3).

While employee nomination for training, employee job redesign, and employee autonomy in
their job also impact customer satisfaction positively and significantly (i.e., t stats of the null
hypothesis of the stated constructs are also > 3). Thus, we fail to reject our all-outlined null
hypothesis, as also shown in table 1, and has to reject our alternative hypothesis

Table 1: Result of Hypothesis testing

Critical T-Test Remark

Hypothesis P-Value
Value Value

HEO: Employee performance

Alternative
recognition techniques have a positive Hypothesis, HE1
impact on employees work performance is Rejected
−1.372 0.1283 1.204
HE1: Employee performance recognition
techniques have no impact on P value> α
employees work performance (0.1283 > 0.10)

HCO: Employee Performance

Alternative
recognition techniques have a positive Hypothesis, HC1
impact on customer satisfaction is Rejected
−1.345 0.1130 1.290
HC1: Employee Performance
recognition techniques have no impact P value > α
on customer satisfaction (0.1130 > 0.10)
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6. Findings & Recommendations

6.1. Findings

● The hypothesis testing of the employer’s acceptance level rejected the alternative
hypothesis as the t value 1.204 was more significant than the critical value -1.372.

The null hypothesis that employee performance recognition techniques positively impact
employees’ work performance is accepted because the t value 1.204 lies outside of -1.372,
which is in the area of acceptance, so the alternative hypothesis is rejected.

The P-value is 0.1283, which is greater than the level of significance (α) (0.1283 > 0.10)

So, we can say that the employee performance recognition techniques positively impact
the employees’ work performance.
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● From the hypothesis testing of customer satisfaction, we could not reject the null hypothesis
as the t value, 1.290. It is greater than the critical value, -1.345, and the t value lies outside
the rejection area. So, we rejected the alternative hypothesis.

The P-value is 0.113, which is greater than the level of significance α (0.113 > 0.10)

Finally, we can say that the employee performance recognition techniques positively
impact the customer satisfaction level.

● From the employer’s perspective, the employee performance recognition techniques

positively impact the employee’s work performance. From the consumers’ satisfaction
hypothesis testing, we found that the consumers’ satisfaction level is high. We can conclude
that employee performance recognition techniques positively impact employees’ work
performance and affect customer satisfaction.
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6.2. Recommendation

Nowadays, restaurants are so prevalent in Bangladesh, and it has significant impacts on our
nation’s GDP. Many people go to a restaurant every day to eat food and spend a pleasant leisure
time with friends and family. If they are not pleased, then they will not come back again to that
restaurant.

The employee performance recognition techniques encourage the employees working in the
restaurant, and as a result, they try their heart and soul to satisfy the customer they serve. As a
result, the popularity of the restaurant increases, and the restaurant’s profit also increases.
When customers become satisfied, they again come to the restaurant.

So, we suggest implying employee performance recognition techniques in every restaurant in

Sylhet city of Bangladesh. Because this motivates the employees, and as a result, the employees
try to satisfy the customer more.
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Conclusion
Employee performance recognition techniques play a vital role in the restaurant business in
satisfying the customer. Satisfying the internal employees is a crucial task for the restaurant
employees. From the study, we found different employee performance recognition techniques
and their positive impact on improving the employee’s work performance and customer
satisfaction. The employer needs to recognize hard-working employees, reward them for their
hard work and thus motivate others to work hard. Employees directly communicate with the
customers, and their behavior affects the customers. Restaurant employees help to gain the
target sales of the restaurant management by satisfying the customers. When customers are
satisfied, they provide a good review on social media, and others feel attracted. Also, it is an
indirect way of marketing, which costs just a little bit in return gains a lot.
Many studies have been carried out on making employees recognized and how recognition of
employees improves customer satisfaction. It has to be remembered that employee recognition
is essential for every restaurant in this competitive world to retain customer satisfaction. Still,
the biggest problem that restaurants face is finding techniques in this context that can satisfy
customers. This paper concludes and confirms that there are various effective employee
performance recognition techniques which include awards on week/month/year, cash/bonds,
certificates of appreciation and praise in meetings which go to employees, employee
nomination for training, employee job redesign, and employee autonomy in their job which
bring more satisfaction among the customers and hence increase revenue. In short, this study
explained that employee performance recognition techniques positively impact making
customers satisfied. Therefore, it is essential to motivate own employees, which ultimately
plays a vital role in making customers happy.
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References

[1] Akerlof, G. A., & Rachel E. K. (2005). Identity and the Economics of Organizations.
Journal of Economic Perspectives, 19, 9–32.
[2] Barsky, J.D., & Labagh, R. (1992). A strategy for customer satisfaction. The Cornell
Hotel and Restaurant Administration Quarterly, 35(3), 32-40.
[3] Bolton, R.N., & Drew, J.H. (1991). A multi-stage model of customers’ assessments of
service quality and value. Journal of Consumer Research, 17, 375-384.
[4] Evans, J. R., & Lindsay, W. M. (2003). The Management and Control of Quality, 5th
edition, Thomson, US.
[5] Knutson, B. (1988). Frequent travelers: making them happy and bringing them back. The
Cornell Hotel and Restaurant Administration Quarterly, 29(1), 83-87.
[6] Lawler, E.E. (1994). Motivation in Work Organisations, Jossey-Bass, San Francisco, CA.
[7] Murphy, K., & Olsen, M. (2008). Dimensions of a high-performance management system
an exploratory study of the US casual restaurant segment. International Journal of
Contemporary Hospitality Management, 21(7), 836-853.
[8] Nelson, B. (2005). 1001 Ways to Reward Employees, 2nd Ed. New York: Workman
Publishing Company.
[9] Söderlund, M. (1998). Customer satisfaction and its consequences on customer behavior
revisited: The impact of different levels of satisfaction on word-of-mouth, feedback to
the supplier, and loyalty. International Journal of Service Industry Management, 9(2),
169-188.
[10] Stevens, P., Khutson, B., & Patoon, M. (1995). Dinesery: a tool for measuring service
quality in restaurants. The Cornell, Hotel and Restaurant Administration Quarterly, 36,
56-60.
[11] https://www.thestrategywatch.com/restaurant-industry-bangladesh/
[12] https://thefinancialexpress.com.bd/public/index.php/economy/bangladesh/hotel-and-
restaurant-sector-set-to-post-higher-growth-1523184592
[13] https://businessdaily24.com/bangladeshi-young-entrepreneurs-should-invest-food-
industry/
[14] https://www.thestrategywatch.com/restaurant-industry-bangladesh/
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Appendix I

Questionnaire on Impact of Employees Performance Recognition

Techniques on Customer Satisfaction: Restaurant Manager
Perspective

Divisional City Name:

Restaurant Name: No. of employee:
Address:

Strongly Strongly
Agree Neutral Disagree
Agree Disagree
1. Employee performance recognition technique
is essential for the employees?

2. By using these techniques, restaurant business

sector of Bangladesh will prosper?

3. Does it affect the customer satisfaction level?

4. Employees feel motivated?

5. Are employees doing their works more
professionally for using these recognition
techniques?
6. Have employees become more punctual for
work time for using these recognition
techniques?
7. Are employees performing well individually
or as a team for using these techniques?

8. Employees work hard for the rewards

9. These techniques are purposeful

10. Employees are achieving/trying hard to

achieve their monthly or weekly milestones
for using these techniques?

11. Enhancing your service quality?

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12. Did your restaurant business grow by using these techniques? Yes No
13. Which one do you prefer? Reward Recognition
14. What type of recognition do you value most? (Specify Q. 12)
Ans:

15. Choose any three from the recognition techniques-

Employee of the Using Photo frame Certificate of Praise in the

Week/Year/Month as appreciation Appreciation meetings
Paid vacation
Cash Job redesign Promotions
(Time-off)

16. How frequently do employees hear about recognition in your restaurant?

Quarter Half
Weekly Monthly Yearly
Monthly Yearly

17. How can employees earn recognition in your restaurant or on which benchmark?
Ans:

18. How do you want to be recognized if you were a regular employee in this restaurant?
Ans:

19. Do you have any recommendations on how the restaurant business can recognize hard-
working employees more effectively?
Ans:
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Appendix II
Questionnaire on Employees Performance Recognition Techniques on
Customer Satisfaction: Customer’s perspective
Restaurant Name:

Dear Sir/Madam,

We are researching customer satisfaction for academic purposes. It would be helpful for us if
you could kindly fill in these survey questions. These survey questions will not be shared with
anyone else.
1. Age: 2. Gender: 3. Occupation:
4. How often do you come to this restaurant? Ans:

Strongly Strongly
Agree Neutral Disagree
Agree Disagree
5. Employees are welcoming & friendly
6. Employees’ behavior is good
7. The restaurant floor, tables, and
chairs were clean and clear from
debris?
8. Employee response is fast
9. Employees are professional
10. Employees have explicit knowledge
about their menu
11. Employees try to give their best
recommendations
12. Employees take customer
recommendations seriously
13. This restaurant serves food at a
reasonable price
14. Food was served hot and fresh
15. The availability of condiments,
napkins, and utensils was sufficient?
16. Server dresses appropriately and neat
and clean in appearance?
17. This restaurant provides the best
customer service
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18. Their overall service was satisfied

19. Would you refer this restaurant to
others?

20. Are you satisfied with the restaurant environment? Ans:

21. Please rate your satisfaction level on a scale of 1 to 5. Ans:
22. Your worst experience in this restaurant (If any)
Ans:
23. Did you face any issues with any service of this restaurant? (If so, describe your complaint)
Ans:
24. How was your overall experience with your server today? (Rate your experience.)

Not satisfied at all Somewhat satisfied Very satisfied

25. Would you recommend this restaurant to a friend or family member? Ans:
26. What could they have improved on/done better?
Ans:

27. Any recommendation?

Ans: