CHAPTER ONE1.1 Background.Employees'attitudes and opinions about their colleagues and the work environment may makeall the difference between workers'merely doing a good job and delivering exceptional guestservice. (Arnett et al., !!".#wingtothe increasing transit traffic at Entebbe $nternational Airport, Entebbe %andling&ervices(E'%A&"administratorsdevotedthemselvestoimprovingtherelationshipbetweenAirlines, passengers and their staff, and to considering methods of improving service (uality tosatisfy passenger demands and enhance airline loyalty.A number of strategies are available for improving service (uality. $t is important to understandpassengerneedsandprovideservicesthat meet theirdemands. )henfocusingonpassengerhandling, E'%A&must adopt marketingtactics as amethodof customer*orientedbusinessmanagement (+sai, !!,".-ately marketing researchers have very much focused on external customers to business firmsand reach for methods of retaining external customers. %owever, for service providing firms likeE'%A&, services provision is from internal customers to external customers with intangible ortangible services. +he company.s service (uality is therefore influenced by the service packagefrom internal customers and their service attitude. /ollowing the unpredicted occurrence of events at E'%A&, characteri0ed by a high resignationrateof staff, airlines servicedissatisfaction, pooremployeeattitudes, apeakinfraudcases,threats of strikes fromemployees andpassenger complaints, E'%A&shouldpayincreasedattention to internal marketing (1aily 2onitor, April 3, !!4". $nternal marketing practices aim5to attract and retain the most (ualified and committed employees for the organi0ation (6ayne etal., !!!". $naservice*providingorgani0ation, this translates intoelicitingservice*orientedbehaviors designed to achieve high customer satisfaction and loyalty (7arnes 8 2orris, !!!".E'%A& will be able to create service values for passengers by interacting with employees anddelivering service value.(7ansal et al., !!5" posited that internal marketing can improve employee organi0ational loyaltyandjobsatisfaction. $nternal marketingalsoattractsandorgani0estalent, andhelpsbusinessorgani0ations improve employee service capabilities (7ansal, !!5". 2ost previous studies only focused on one or two variables. /or example, regarding research onthe relationship between internal marketing and organi0ational commitment (2ohammad, !!,"and that between internal marketing and job satisfaction (2at, !!9", few of the studies havefocused on the airline industry to study the relationship between internal marketing and othervariables. %owever the main goal of internal marketing is to enhance service (uality for externalcustomers. A study has shown the positive relationship between internal marketing and service(uality (+sai, !!,". /ew previous studies have focused on the variables that mediate internalmarketing and service (uality. :onse(uently, this study attempted to extend the past researchingscopeandexplorewhether or not employeejobsatisfaction* ;anemployees.general affectiveevaluationofhisorherjob2etters, Fing*2etters, 8 6ullman, !!A> &chmenner, 5449> &chroeder, 5439". +herefore, all thesteps in the customer buying experience must be understood from both the organi0ational andcustomer perspective ($acobucci 8 'ordhielm, !!!".:urrently, modern technology allows the customer to gain significant background information onindustries, companies, and products. +herefore, customer conversations are amongst e(uals, andthe burden is placed on organi0ations to keep dialogue alive.Also, throughthis technologycustomers maysharetheir experiences withlarger groupsofpeople (6rahalad 8 Iamaswamy, !!!". +echnology has also placed pressure on organi0ations to(uickly change to customer needs and the ability to accomplish this rests in the culture of theorgani0ation (&tuart, 5443".5!+he service provided by the organi0ation affects the experience of the customer. 6erception isreality and what really matters is how the customer perceives the experience. :ustomers basetheir own opinions on a few moments of the entire experience, often high or low points and theend(:hase81asu, !!5". +herefore, theexperiencemust endonapositivenoteandtheorgani0ation must attempt to alter a neutral experience into a positive experience (2organ 8Iao, !!A". :ompanies must discover what the customer.s value and how they obtain outcomes(=lwick, !!", but service (ualitymeasurement is difficult because twocustomers rarelyperceive similar outcomes (2c:lain et al., 544> 2etters et al., !!A> &chmenner, 5449>&chroeder, 5439".$nternal (ualitymanagement is drivenbytechnology, organi0ational structure, systems andinternal goals and values. 1ifferent si0ed firms may show variations in the scale and complexityof their internal operations. As the structures of various firms differ, the strategies will also vary.+he (uality perceived by customers is likely to differ depending on what strategy the firm ispursuing (7arnes 8 2orris, !!!".2.2 The &m!act of &nternal market&ng on em!lo#ee %ob "at&"fact&on An individual.s general attitude toward his or her job, or the difference between the amount ofreward workers receive and the amount they believe they should receive. (&tephen 6. Iobbins,!!".?ob1escription$ndex(?1$" (&mithet al., 54,4" is themost fre(uently(uotedscalewhenmeasuring job satisfaction. +he scale includes areas like type of job, remuneration, promotion,superior management, and job associates. %owever, (&pector, 5439" has identified someproblems with?1$ whenit is appliedtoemployees fromtheservicesector. +hus &pector55developed the ?ob &atisfaction &urvey (?&&" that essentially brings more to the forefront aspectsof satisfaction of remuneration, promotion, management styles and relations, welfare, incentive,operation procedures, associate relationships, job description, and communication which are theprimary objectives of internal marketing.7asing on this research, ?ob satisfaction refers to an employee's general affective evaluation ofhis or her job. ?ob satisfaction is fundamental in the service industry as it helps to ensure thatemployees will treat customers with the most effective respect. 7ecause of the important role thatservice employees play in developing relationships with customers, employees' satisfaction is amajor concern for organi0ations that are interested in increasing customer loyalty. +his calls formanagement to fully communicate and train employees on its vision goals and planning for itsemployees through a well planned internal marketing initiative.Employees' jobsatisfactionhas beenlinkedtoanincreaseincustomer orientationbytheemployee, an increase in customer satisfaction, and an increase in perceived service (uality.Iesearch suggests that through internal marketing satisfied employees believe that appropriatebehavior will be rewarded by the organi0ation. $n general, job satisfaction leads to employees'intentions to keep performing well their re(uired job tasks, which, in turn affects their actualbehavior. +herefore, employee job satisfaction is a crucial prere(uisite to service excellence. $posit that employees who are satisfied with their jobs will also be those most likely to engage inpositive employee behavior.+he emergence of the internal marketing concept can be attributed to the following forces oftoday.s business (&amms, 5443"D5i. 2anyenterprises arecontinuallyinsome formof transformation*mergers, alliances,downsi0ing and rightsi0ing generates the need for constant communication.ii. &ome enterprises may rename themselves and this re*branding re(uires communication toall stakeholders including employees.iii. 2ore companies areempoweringstaffto increase thefocusoncustomer relationship.+his needs full involvement, immersion and training in brand values.iv. +here is more contract and less full*time employment. 6roject staff also needs tounderstand the brand vision as they are working. +his force of change is accentuated withthe increasing trend to outsourcing.v. +hereis less reciprocalloyalty betweenemployer and employee>the employee.s timebecomes transactional. +he Jinternal. brand can be a way to bind the two parties togetherwith shared goals and values.vi. 'ew ways of working re(uire organi0ations and staff to constantly learn new skills andsometimes these are ac(uired through alliances. 7uilding a learning company will be animportant future consideration. $nternal brand values can be an umbrella for this effort.+o motivate staff, it is necessary for communication to flow hori0ontally and vertically to all stafflevels. +his process of communication should include the brand mission, philosophy and corevalues. 2any organi0ations are unable to harmoni0e these communications flows to reach allstaff levels> some do not achieve even one of these flows (&amms, 5443".5AAs noted earlier in .5, $nternal marketing involves creating an organi0ational climate in general,and job*products in particular, which lead to the right service personnel performing the service intheright way. $nconsumption, wheretheperformanceofpeopleiswhat isbeingsold, themarketing task is not only that of encouraging external customers to buy but also that of internalcustomers to perform.)hen internal customers perform,the likelihood of external customerscontinuing to buy is increased (6ayne et al., !!!".Employees of an organi0ation comprise the first market of a company. +he main objective of theinternal marketing function is to obtain motivated and customer*conscious personnel at all levels.+hethinkingbehindtheinternal marketingconcept isthat employeesareviewedasinternalcustomers and their jobs as internal products.+he corporate image of a company begins with each and every employee and is reflected in hisorherattitudeabout thecompany. 2anytimes, companiesmayhaveaclearideaabout thecorporateidentityandlookoutwardtoestablishor changeanimagebymeans of astrongidentity, but image begins with the employees. $nternal marketing is a concept that has emergedover the past decades. +oday, it is considered a prere(uisite for external marketing (6ayne et al.,!!!". 6romotingthecorporateidentityinternallyaloneisnotenough.)ithout efficient andeffective operations supporting the departments of an organi0ation with which the customer dealsdirectly with, internal marketing will only provide a surface*skimming support for a company.sbrand position (7rewis -evie, 5444".?obs must attract, develop and motivate people thereby satisfying the needs and wants of theseinternal customers while addressing the overall objective of the organi0ation (Ewing et al., 5443"5C$nternal marketing, on the other hand, ensures that all employees provide the best representationof the company and successfully handle all interactions with the final customer.2. The relat&on"h&! bet.een em!lo#ee %ob "at&"fact&on and "er'&ce 3ual&t#&ervice (uality is one of the dominant themes of service oriented research (/isk et al., 544A".1uring its infancy, service (uality research based its foresight on consumer behaviors and theconfirmationGdisconfirmation paradigm(Eronroos, 544". 7ased on this paradigm, whencustomers consume a product, they compare the (uality they have experienced to that of theirprevious expectations, leading to an emotional reaction manifested in satisfaction ordissatisfaction with the products or services purchased. &ervice is different fromphysicalproducts. &EIK@=A- measures five basic dimensions of service (uality considered salient byconsumers of service businesses, includingD tangibles, reliability, responsiveness, assurance, andempathy (6arasuraman et al., 5433". All these dimensions are reliant on the service encounterbetweenaconsumer andanemployee. Adissatisfiedemployee is more likelytooffer anencounter less desirable to both the employer and the consumer. %ence a service belowexpectations.4&men"&on" of "er'&ce 3ual&t#$t would be impossible to ensure service (uality without first determining the salient aspects thatare incorporated under this term. Again, this poses some difficulty and many possible attributeshave been put forward to capture the meaning of service (uality. &asser et al. 54H3 list sevenservice attributes which they believe ade(uately embrace the concept of service (uality.59+hese include> security* confidence as well as physical safety, consistency* receiving the sameeach time,attitude* politenessand socialmanners, completeness*ancillaryservices available,condition* of facilities or e(uipment, availability* access, location and fre(uency, and training.An organi0ation cannot achieve these attributes with dissatisfied employees, proper measuresand considerations have to be put in place to build a satisfied team of employees.#ntheotherhand, Eronroos, 5433, 5445, believesthat service(ualityismadeupofthreedimensions, that is the ;technical (uality of the outcome(iii" +he outcome (i.e. technical (uality".Em!lo#ee 5ob 6ot&'at&on$t is important for the top management to develop strong relationship between the organi0ationandemployeestofulfill thecontinuouschangingneedsofbothparties. #rgani0ationsexpectemployees to follow the rules and regulations, work according to the standards set for them, andthe employees expect good working conditions, fair pay, fair treatment, secure career, power andinvolvement in decisions. +hese expectations of both parties vary fromorgani0ation toorgani0ation. /ororgani0ationstoaddresstheseexpectationsanunderstandingofemployees.motivation is re(uired, 7eer, (543C".According to 1eeprose (544C", an effective reward system enhances employee motivation andincreases employee productivity all of which contribute to improved organi0ational performance.7aron (543A" argues that there is a close relationship between motivation and job performance.&trategicsuccessfortheorgani0ationliesinfocusingattentionat all levelsonkeybusinessactivities, which can be achieved through effective performance management, 'el, (!!5"5HCHAPTER THREE.1 6ETHO4O2O78.1 Re"earch 4e"&gn+he research was (uantitative, while also descriptive and cross*sectional. @uantitative methodswere used for subjective assessment of respondents. attitudes and opinions. +he research was(uantitative because it involved generation of data in (uantitative form for analysis. 1escriptivebecause it enabled the researcher get information about the current situation. A cross*sectionalstudy was carried out at Entebbe %andling &ervices -imited, among its employees and clientswho included airlines, and the :ivil Aviation authority. .2 Stud# !o!ulat&on+he study population comprised of 54! E'%A& employees, , airline staff and 3! :ivil AviationAuthority employees. :ivil Aviation employees are included because the airport is managed bythe :ivil Aviation Authority which is responsible for setting the minimum service standards atthe airport.. Sam!l&ng 4e"&gn9Strateg#6robability sampling procedure was applied. Every staff had an e(ual chance of being includedinthesamplesoastominimi0ebias(+ull and%awkins, 544A". +heresearcher appliedthestratified random sampling method to select respondents for interviews and filling(uestionnaires. +he study utili0ed a stratified random sampling approach based uponinvolvement withintheorgani0ation. E'%A&had45respondents, 9respondedfromcivil53aviation authority while CC respondents were reali0ed from airline representatives making a totalof 53H respondents. +his sampling approach allowed the researcher to examine varioussubgroups, the use of this method recommends e(ual sample si0es but, ;when the population tobesampledis not homogenous andconsists of several subgroups, stratifiedsimplerandomsamplingmaygiveamorerepresentativesamplethansimplerandomsamplingIespondents&tudy 6opulation&tudy sample 'umberIespondentsIesponse rateE'%A& Employees 54! 59 45 C4Airline &taff , 9A CC A:ivil Aviation &taff 3! 93 9 3+otal 2 2* 1,+ 111&ourceD 6rimary data.54Adapted from> Frejcie, I.K., 8 2organ, 1.), 54H!..$ Source" of 4ata.$.1 Pr&mar# 4ata6rimary data was obtained directly fromthe airport premises by use of interviews, and(uestionnaires. /urtherinformationwasaccessedthroughdiscussion with E'%A&as well as:ivil aviation Authority management..$.2 Secondar# 4ata&econdary data was sourced from a review of related literature from journals, aviation journals,airlines news letters, surveys from the :ivil aviation Authority, the internet and passenger servicerecords..( ;n"trument"/+he researcher individually handed out (uestionnaires to respondents. +hree sets of(uestionnaires were used, that is one for E'%A& staff, one for E'%A& managers and the otherfor civil aviation and airline staff..(.1 6ea"urement of 'ar&able";nternal 6arket&ng/+he researcher measured internal marketing by replicating the 59 items, seven* point -ikert*typescaleinternal marketingmeasuringinstrument developedbyforemanandmoney,(5449".+othese, 5! more items were replicated from an instrument developed by ?erome 6aul, (!!9" to!makea9iteminstrument. +heinstrument was createdthroughareviewof literatureandconsistsoffivedimensionsD employees, organi0ation, external customersatisfaction, externalmarketing techni(ues and knowledge transfer. +he five dimensions which appear in &ection A of the survey instrument were created throughtheir repeatedappearanceindefinitions providedinthereviewof literature. +heeffects ofemployeesmust existbecausethefocusofinternal marketingistoaltertheirperceptionsofservice(uality(items 5, A, 5, , A, C". +heorgani0ationanticipates improvedsuccessthroughinternal marketing(itemsC, 9, 53, 54, !, 9". External customer satisfactionisanoutcome variable developed because if the internal marketing efforts fail to effect the primarycustomer theinternal marketingprogramis deemedineffective(items , ,, H, 3". Externalmarketing techni(ues attempt to sell the product internally (items 5!, 55, 5, 5A, 5C". Fnowledgetransfer is a method to improve communication and removes departmental barriers (items 59, 5,,5H".+heinstrument formanagersdoesnotinclude theextra ten itemsadapted from ?erome,(!!9".Em!lo#ee %ob "at&"fact&on/Employee ?obsatisfactionwas measuredwiththe2innesota&atisfaction@uestionnaire by)eiss, (54,H". After anexaminationof theliteratureandtheempiricallytestedinstrumentsavailablee.g., ?ob&atisfaction&urvey> &pector,(544H", the2&@waschosenforuseinthisresearchbecauseof its provenreliabilityandvalidity. 1uringthepast !years, numerousresearchers have provided support for the continued validity and reliability of the (uestionnaire(7i0ot 8Eoldman, 544A> %irschfeld, !!!>Fulik8#ldham, 5433". Ieliabilitycoefficients5(i.e., internal consistency" have ranged from .3H to .4 on general job satisfaction for the 2&@.$n the present study, an alpha coefficient of .3H was found for general job satisfaction. +heinstrument assesses thefollowing!dimensions of jobsatisfactionD abilityutili0ation,achievement, activity, independence, variety, compensation, security, working conditions,opportunityfor advancement, recognition, authority, social status, coworkers, moral values,social service, reactions tocompanypolicies andpractices, thehumanrelations aspects ofsupervision, the technical aspects of supervision, creativity, and responsibility. Each itemrepresents 5 of the ! dimensions and can be used to determine satisfaction in relation to eachdimension. Iespondents were asked to rate their satisfaction with various aspects of their workalong a 9*point -ikert*type scale, ranging from 5 M not satisfied to 9 M extremely satisfied. Ser'&ce 3ual&t#/+he service (uality items are a partial replication of the instrument created by Fo (!!!" and&erv(ualD a multiple*item scale for measuring consumer perceptions of service (uality created by6arasuraman, Neithaml and 7erry (5433". +he instrument items represent three differentdimensions> service information, interaction (uality, and valence. &ervice information examinesthe ease of various methods in obtaining information from the organi0ation (items 5, , A, C, 9".$nteraction(ualityinvolves howemployees interact, handleproblems, andassist customers(items,, H, 3, 4, 5!, 55, 5".Kalenceincludesthecustomerperceptionsoffeelingsafteranactivity managed by organi0ation (items 5A, 5C, 59, 5,". +he items for service (uality appear in&ection 7 (Appendix A" of the survey instrument.

Em!lo#ee 5ob 6ot&'at&on+he importance of employee job motivation in human resource management and organi0ationalbehavior research is proved due to its clear and significant linkages with outcomes such as jobperformance, job satisfaction, organi0ational citi0enship behavior, job stress turnover intentionand organi0ational commitment. As a moderating study variable, items within the job satisfaction(uestionnaire were tested against job satisfaction reliability coefficients of .3H to .4 using the:hronbach.s Alpha to establish the pattern of the moderating variable.s reliability. +he pattern of the interaction showed under what conditions the moderation occurs. /or exampleinthecaseofcontinuousmoderation, wesawthat themaineffect ofinternal marketingonservice (uality delivery is (ualified by the interactionD ;higher internal marketing is associatedwith higher satisfaction for by employees for their jobs under conditions of higher employee jobmotivation.< .(.2 it will haveconsistent results if repeatedovertime or if usedbytwodifferent investigators. IeliabilityAdemonstrates that theoperations of astudysuchas thedata collectionprocedures canberepeated, with the same results, Oin (544C".$norder toensure reliability, statistical analysis was implementedtoexamine the internalconsistency of the instruments utili0ed.Ieliability tests were conducted onD (a" the responsesfrom E'%A& employees, (b" the responses from airline staff and civil aviation staff, and (c" acombinedanalysis wereconductedontheservice(ualitysectionsof theinstrument. $nall,&tatistical 6ackaging for &ocial &cientists programme was used for the analysis.Table .2/ Rel&ab&l&t# Te"t Table 6rasad8&teffes,!!".(.2. The relat&on"h&! bet.een em!lo#ee %ob "at&"fact&on and "er'&ce 3ual&t#.Ievealed was a significant positive correlation between employee job satisfaction and service(uality.('albantianetal., !!C". 6ositedthatorgani0ationsthatselect, develop, manageandmotivate their workforce to produce outstanding business results have an extraordinarycompetitive advantage that others can not copy. Employee job satisfaction is important to thesuccessof aservice firm (Eremleretal.,544C". +his relatestotheabilityof organi0ations todevelop and gain a competitive advantage through an emphasis on service (uality. Accordingly,employee job satisfaction can have an elevated impact on the (uality of products and servicesC9deliveredbythefirm whileadissatisfiedemployeeismorelikelytoofferanencounterlessdesirable to both the employer and the consumer. %ence a service below expectations.)hile, (Eronroos, 5433, 5445" believes that service (uality is made up of three dimensions, thatis the;technical (ualityof theoutcome