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DELIVERING AND PERFORMING SERVICE Chapter 11. Donna J. Hill, Ph.D. Services Marketing Fall 2000. Provider GAP 3. CUSTOMER. Service Delivery. COMPANY. GAP 3. Customer-Driven Service Designs and Standards. Part 4 Opener. Service Employees.

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delivering and performing service chapter 11

DELIVERING AND PERFORMING SERVICEChapter 11

Donna J. Hill, Ph.D.

Services Marketing

Fall 2000

slide2

Provider GAP 3

CUSTOMER

Service Delivery

COMPANY

GAP 3

Customer-Driven

Service Designs and Standards

Part 4 Opener

service employees
Service Employees
  • They are the service offering ---(limousine driver, architect, hairstylist, massage therapist)
  • They are the firm in the customer’s eyes
  • They are marketers (customizing services, accommodating customers, developing sales opportunities)
  • Importance is evident in
    • The Services Marketing Mix (People)
    • The Service-Profit Chain (companies that exhibit high levels of employee satisfaction will be more successful than companies that have low levels of employee satisfaction)
    • The Services Triangle
service quality dimensions heavily influenced by people
Service Quality Dimensions Heavily Influenced by People
  • Responsiveness
  • Assurance
  • Empathy
  • Reliability
  • Tangibles
service employees5
Service Employees
  • Who are they?
    • “boundary spanners”
  • What are these jobs like?
    • emotional labor( delivering smiles, making eye contact, showing sincere interest, and engaging in friendly conversations with customers who are essentially strangers)
    • many sources of potential conflict
      • person/role
      • organization/client
      • interclient
      • quality/productivity
customer contact personnel a boundary spanning role
Customer Contact Personnel: A Boundary Spanning Role
  • Links an organization or business with its environment through interaction between the two
figure 11 3 boundary spanners interact with both internal and external constituents
Figure 11-3 Boundary Spanners Interact with Both Internal and External Constituents

External Environment

Internal Environment

figure 11 4 sources of conflict for boundary spanning workers
Figure 11-4 Sources of Conflict for Boundary-Spanning Workers
  • Person vs. Role
  • Organization vs. Client
  • Client vs. Client
  • Quality vs. Productivity
person role conflict
Person-RoleConflict

1. Inequality dilemma

2. Dress codes

3. Inability to control

Relationship

1. Screen applicants

2. Provide instructions

and training

3. Develop procedure

for employees to

complain

organization client conflict
Organization-Client Conflict

Two-boss dilemma

1. Instruct employees in

policies and goals of

firm.

2. Empower employees.

3. Support employees’

decisions.

customers conflicts
Customers Conflicts

1. Serving customers

in turn.

2. Serving many

customers at

the same time

1. Provide instruction.

2. Analyze policies.

3. Negotiate.

4. Instruct in roles.

5. Educate new

customers.

6. Teach people skills

to employees.

quality productivity tradeoffs
Quality-Productivity Tradeoffs

1.Quantity versus

quality tradeoff.

2. Serving many

customers at

the same time

1. Where on the

continuum.

2. Use of technology.

dealing with conflict
Dealing with Conflict
  • Avoidance of contact.
  • Psychological withdrawal.
  • Direct confrontation.
  • Retaliation.
figure 11 5 human resource strategies for closing gap 3
Figure 11-5 Human Resource Strategies for Closing GAP 3

Hire for Service Competencies and Service Inclination

Be the Preferred Employer

Compete for

the Best

People

Train for Technical and Interactive Skills

Measure andReward Strong Service Providers

Hire the

Right People

Customer-

oriented Service Delivery

Develop

People to

Deliver

Service

Quality

Treat Employees as Customers

Retain the

Best

People

Empower Employees

Include Employees in the Company’s Vision

Promote Teamwork

Provide

Needed Support

Systems

Develop Service-

oriented Internal Processes

Measure Internal Service Quality

Provide Supportive Technology and Equipment

service competency and inclination
Service Competency and Inclination
  • Inclination (social sensitivity, helpfulness, courtesy, trustworthiness)
    • Role Playing
    • Simulation
    • Problem solving
    • Group interviews
    • Personality tests
  • Competency (skill in doing job)
    • certification, tests, degrees, etc.
empowerment means having
Empowerment means having:
  • Authority to make decisions
  • Willingness to use it
  • Organizational support
  • Allows for Divergence
empowerment is not
Empowerment is not:
  • Workforce reduction
  • free reign to do whatever you want
  • a substitute for quality design problems
contingencies
Contingencies
  • Basic business strategy
    • differentiation and customization vs. standardization
  • ties to customers
    • long term relationship
  • technology
    • nonroutine or complex
  • business environment
    • unpredictable
  • types of people in the organization
    • high growth, social, strong interpersonal skills
why controversial
Why Controversial?
  • Poorly understood
  • Poorly designed
  • Threatening to middle managers
  • There are real benefits, costs, and tradeoffs
  • It is not always appropriate
definitions of empowerment
Definitions of Empowerment
  • Bowen and Lawler
  • Sharing 4 commodities with front-line employees
    • information about organization’s performance
    • rewards, linked to organization’s performance
    • knowledge that allows workers to understand and contribute to organization’s performance
    • power to make decisions that influence organization’s performance
empowerment
Benefits:

-quicker responses

-employees feel more responsible

-employees tend to interact with warmth/enthusiasm

-empowered employees are a great source of ideas

-positive word-of-mouth from customers

Drawbacks:

greater investments in selection and training

higher labor costs

slower and/or inconsistent delivery

may violate customer perceptions of fair play

“giving away the store” (making bad decisions)

Empowerment
service culture
Service Culture

“A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”