The problem is this which you are accessing inside populateTable function is not this which you have there in your controller function.
Better do keep this variable inside some variable, so that by having it you will make sure you are referring to correct object.
Controller
app.controller('employeeController', function ($scope, employeeService) {
var vm = this;
vm.employees = {};
vm.populateTable = function (data) {
vm.employees = data;
};
var error = function (err) {
console.log("Error: " + err);
};
// Call Service to List all Employees
console.log("Service called to populate table.");
employeeService.output().then(vm.populateTable, error);
vm.populateTable();
});
For more detail, I'd highly recommend you to readup on this article
If you are confused with this vs scope then do read up on this answer