DELIVERING AND DELIVERING AND PERFORMING SERVICEPERFORMING SERVICEChapter 11Chapter 11

Donna J. Hill, Ph.D.

Services Marketing

Fall 2000

CUSTOMER

COMPANY

Provider GAP 3Provider GAP 3

Service DeliveryGAP 3

Customer-Driven Service Designs and

Standards

Part 4 Opener

Service EmployeesService 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 Service Quality Dimensions Heavily Influenced by PeopleHeavily Influenced by People

Responsiveness Assurance Empathy Reliability Tangibles

Service EmployeesService 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: Customer Contact Personnel: A Boundary Spanning Role A Boundary Spanning Role

Links an organization or business with its environment through interaction between the two

Figure 11-3Figure 11-3

Boundary Spanners Interact Boundary Spanners Interact with Both Internal with Both Internal and External Constituentsand External Constituents

Internal Environment

External Environment

Figure 11-4Figure 11-4

Sources of Conflict for Sources of Conflict for Boundary-Spanning WorkersBoundary-Spanning Workers

• Person vs. Role

• Organization vs. Client

• Client vs. Client

• Quality vs. Productivity

Person-RolePerson-RoleConflictConflict

1. Inequality dilemma2. Dress codes3. Inability to control Relationship 1. Screen applicants

2. Provide instructions and training3. Develop procedure for employees to complain

Organization-Client Organization-Client ConflictConflict

Two-boss dilemma

1. Instruct employees in policies and goals of firm.2. Empower employees.3. Support employees’ decisions.

Customers ConflictsCustomers 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 Quality-Productivity TradeoffsTradeoffs

1.Quantity versus quality tradeoff.2. Serving many customers at the same time

1. Where on the continuum.2. Use of technology.

Dealing with ConflictDealing with Conflict Avoidance of

contact. Psychological

withdrawal. Direct

confrontation. Retaliation.

Figure 11-5 Figure 11-5

Human Resource Strategies for Closing GAP 3Human Resource Strategies for Closing GAP 3

Customer-oriented Service Delivery

Hire theRight People

ProvideNeeded Support

Systems

Retain theBest

People

DevelopPeople to

DeliverServiceQuality

Compete

for

the B

est

People

Hire for Service

Competencies and Service Inclination

Provide Supportive Technology

and Equipment

Tre

at

Em

plo

ye

es

a

s

Cu

sto

me

rs

Em

po

we

r E

mp

loy

ee

s

Be the Preferred

Employer Train for

Technical and

Interactive

Skills

Prom

ote

Team

wor

k

Measure

Internal

Service

Quality

Develop Service-

oriented Internal

Processes

Mea

sure

and

R

ewar

d S

tron

g S

ervi

ce

Pro

vide

rs

Include

Em

ployees in

the

Com

pany’s

Vision

Service Competency and Service Competency and InclinationInclination

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

ContingenciesContingencies 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 EmpowermentDefinitions 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

EmpowermentEmpowerment

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)

Service CultureService 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.”