Final answer:
Managers need to understand the link between employee satisfaction and customer satisfaction as it impacts organizational performance, employee behaviors that advance company goals, and can reduce costly withdrawal behaviors. Job satisfaction influences workforce stability and productivity, making it a critical aspect for managers to consider for organizational success.
Step-by-step explanation:
Managers must understand how employee satisfaction relates to an external customer because employee satisfaction significantly impacts organizational performance and, in turn, customer satisfaction. Job satisfaction is correlated with organizational citizenship, which includes behaviors that support the company's goals. Satisfied employees are more likely to engage in discretionary behaviors that enhance customer experiences and further the organization's success.
Furthermore, a manager's understanding of employee satisfaction can directly influence the manager's ability to foster a positive working relationship, thus enhancing job satisfaction, career growth opportunities, and potentially leading to more effective organizational changes. This is pivotal in a business environment where traditional hierarchies are shifting toward a more equal partnership between managers and employees.
Lastly, managers who are in tune with their employees' satisfaction levels can take proactive steps to mitigate withdrawal behaviors like absenteeism and attrition, which can be costly both financially and in terms of team morale and productivity. This, in turn, can result in improved organizational performance and a more attractive work environment for both current and potential employees.