THE CHALLENGES OF SERVICE DELIVERY AND CUSTOMER SATISFACTION IN THE PUBLIC SECTOR (THE CASE OF ADAMA TRANSPORT AUTHORITY).

Customer satisfaction is considered a prerequisite for customer retention and loyalty, and can help to boost profitability, market share and return on investment.Thus, to be successful in the current competitive environment, service organizations must streamline their service delivery systems and respond to everdiscerning customers? demands for efficient and quality services. Adama transport Authority is one of the public institutions which facilitates, coordinates and promotes private investment in the city administration. This term paper assessed service delivery and customer satisfaction in the transport authority in relation to location, facilities, requirements and forms, transparency and participation, employees? effect on service delivery and satisfaction on their job (salary, benefit and trainings),timeliness, customer satisfaction and complaint handling, which are the best measure of customer Satisfaction.The result of the term paper indicated that manpower and offices with the necessary, inaccessiblity of photo copy service, the existence of problems related to location, reception area, meeting standard time,low salary scale, low provision of skilled based training ,low incentives and compliant handling system are the major problems that dissatifies customer satisfaction.