chap 07 encounter

8/9/2019 Chap 07 Encounter

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Chapter 7Chapter 7

The Service EncounterThe Service Encounter


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1.1. Use the service encounter triad to describe a serviceUse the service encounter triad to describe a servicefirms delivery process.firms delivery process.

2.2. Discuss the role of organizational control systems forDiscuss the role of organizational control systems for

employee empowerment.employee empowerment.3.3. Prepare abstract questions and write situationalPrepare abstract questions and write situational

vignettes.vignettes.

4.4. Discuss the role of customer as coproducer.Discuss the role of customer as coproducer.

5.5. Describe how elements of the service profit chainDescribe how elements of the service profit chainlead to revenue growth and profitability.lead to revenue growth and profitability.

Learning ObjectivesLearning Objectives


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Service

Organization

Efficiencyversus

satisfaction

Efficiencyversus

autonomy

CustomerContact

Personnel Perceived

control

The Service Encounter TriadThe Service Encounter Triad


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The Organizational ChartThe Organizational Chart


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The Organizational ChartThe Organizational Chart

Customers

Customers

CEO

CEOContact Personnel

Middle Management

Upper Management

Upper Management

Middle Management

Contact PersonnelSAS


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CultureCulture

ValuesValues ServiceMaster (Service to the Master)ServiceMaster (Service to the Master)

BehaviorsBehaviorsDisney (Choice of language)Disney (Choice of language)

EmpowermentEmpowerment

Invest in peopleInvest in people like investing in equipmentlike investing in equipment

Use IT to enable personnelUse IT to enable personnel customer historycustomer history

Recruitment and trainingRecruitment and training match to firms CSFmatch to firms CSF

Anchor performanceAnchor performance recognition and rewardrecognition and reward

The Service OrganizationThe Service Organization


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Culture is a pattern of beliefs andCulture is a pattern of beliefs andexpectations shared by the organizationsexpectations shared by the organizations

members.members. Schwartz and DavisSchwartz and Davis (1981)(1981)

Culture is the traditions and beliefs of anCulture is the traditions and beliefs of anorganization that distinguish it from others.organization that distinguish it from others.

MintzbergMintzberg (1989)(1989)

Culture is shared orientations that hold theCulture is shared orientations that hold theunit together and give a distinctive identity.unit together and give a distinctive identity.

Hoy andHoy and MiskelMiskel (1991)(1991)

Definitions of CultureDefinitions of Culture


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CultureCulture

The shared beliefs and values of anThe shared beliefs and values of an

organization that guide employeeorganization that guide employee

decisiondecision--making and behavior in themaking and behavior in thefirm.firm.


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Corporate CultureCorporate Culture

Behavior

Behavior

Behavior

Behavior Behavior

Behavior

Behavior

BehaviorBehavior

Behavior

Behavior

Behavior

Behavior

Behavior


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Values and beliefsValues and beliefs Strong systemsStrong systems

Weak systemsWeak systems

HistoryHistory RitualsRituals

SymbolsSymbols

CommunicationsCommunications

StorytellingStorytelling

Rewards and recognitionRewards and recognition


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Rewards That EncourageRewards That Encourage

BehaviorBehavior PayPay PromotionPromotion

RecognitionRecognition

A Piece of the Action (Ownership)A Piece of the Action (Ownership) Company InformationCompany Information

Freedom (Being Your Own Boss)Freedom (Being Your Own Boss)

Personal GrowthPersonal Growth FunFun

CelebrationsCelebrations

"Thank You""Thank You"


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Service

Organization

Efficiencyversus

satisfaction

Efficiencyversus

autonomy

CustomerContact

Personnel Perceived

control


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EmpowermentEmpowerment

Providing contact personnel with theProviding contact personnel with the

training and information to maketraining and information to make

decisions for the firm without closedecisions for the firm without closesupervision.supervision.


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Organizational ControlOrganizational Control

for Employee Empowermentfor Employee Empowerment

Beliefs

Systems

To

contribute

Core values

& mission

Identify core

values

Boundary

Systems

To do right Specify and

enforcerules

Risks to be

avoided

Diagnostic

Control

Systems

To achieve Build clear

targets

Critical

performance

variables

Interactive

Control

Systems

To create Encourage

learning

Strategic

Uncertainties


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Contact Personnel AttributesContact Personnel Attributes

FlexibilityFlexibility

Tolerance for AmbiguityTolerance for Ambiguity

Ability to Monitor and Change BehaviorAbility to Monitor and Change Behavioron the Basis ofSituation Cueson the Basis ofSituation Cues

Empathy for CustomersEmpathy for Customers


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SelectionSelection

1. Abstract Questioning1. Abstract Questioning From your past experience, From your past experience,

2. Situational Vignette2. Situational Vignette ability to think on their feet in substance and deliveryability to think on their feet in substance and delivery

3. Role Playing3. Role Playing requires careful scripting and customer actor rehearsalrequires careful scripting and customer actor rehearsal

TrainingTraining

1.1.TechnicalSkillsTechnical

Skills

2. Unrealistic customer expectations2. Unrealistic customer expectations

3. Unexpected service failure3. Unexpected service failure

Contact PersonnelContact Personnel


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1.1. Unreasonable demandsUnreasonable demands I want to take all my luggage on boardI want to take all my luggage on board

2. Demands against policies2. Demands against policies I have to smokeI have to smoke

3. Unacceptable treatment of3. Unacceptable treatment of

employeesemployees Youre an idiotYoure an idiot

4. Drunkenness4. Drunkenness Hey, wheres my drink?Hey, wheres my drink?

5. Breaking of societal norms5. Breaking of societal norms I like to sunbath nudeI like to sunbath nude

6. Special6. Special--needs customersneeds customers Why dont you understand English?Why dont you understand English?

Unrealistic customer expectationsUnrealistic customer expectations


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Unexpected Service FailureUnexpected Service Failure

1. Unavailable service1. Unavailable service Why isnt the ATM working?Why isnt the ATM working?

2. Slow performance2. Slow performance Why hasnt our plane arrived?Why hasnt our plane arrived?

3. Unacceptable service3. Unacceptable serviceTheres a fly in my soup.Theres a fly in my soup.


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Training on Unrealistic CustomerTraining on Unrealistic Customer

Expectations and UnexpectedExpectations and Unexpected

Service FailureService Failure

A prescribed response to a any given situationA prescribed response to a any given situation

I am very sorry, but federal safety regulations permit a passengerI am very sorry, but federal safety regulations permit a passenger

only two carryonly two carry--on pieces small enough to be stored under the seaton pieces small enough to be stored under the seat

or overhead. May I check your larger pieces all the way to youror overhead. May I check your larger pieces all the way to your

final destination?final destination?

Anticipate the types of exchange they might encounterAnticipate the types of exchange they might encounter

through role playingthrough role playing


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Shopping attitudesShopping attitudes

1. Economizing customer1. Economizing customer compares value with competitioncompares value with competition

2. Ethical customer2. Ethical customer moral obligation (Ronald McDonald House)moral obligation (Ronald McDonald House)

3. Personalizing customer3. Personalizing customer know your nameknow your name4. Convenience customer4. Convenience customer pay extra for hassle free servicepay extra for hassle free service

Customer as CoCustomer as Co--ProducerProducer

1.1. What is their role?What is their role?2. How to train?2. How to train?

3. When to retrain?3. When to retrain?

The CustomerThe Customer


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Service Encounter SuccessService Encounter Success

FactorsFactorsCustomer Service Provider

Human Machin

Human

Employee selectionInterpersonal skills

Support technology

Engender trust

User friendlyVerification

Security

Easy to access

Machine

Easy to access

Fast response

Verification

Remote monitoring

Compatibility

Tracking

Verification

Security


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1

2

4

5

6

1 2 4 5 6

Employee

Customer

Terrible

Terrible

Outstanding

Outstanding

Employee Perceptions of CustomerEmployee Perceptions of Customer

Service at a Branch BankService at a Branch Bank


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Higher Customer

Satisfaction

More Familiarity with

Customer Needs

and Ways of

Meeting Them

Greater Opportunity

for Recovery

from Errors

Higher Employee

Satisfaction

Higher

Productivity

Improved Quality

of Service

More

Repeat

Purchases

Stronger

Tendency to

Complain about

Service Errors

Lower

Costs

Better

Results

Satisfaction MirrorSatisfaction MirrorSatisfaction MirrorSatisfaction Mirror


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Internal

Operating strategy and

service delivery system

Service

concept Target market

Service

value

Customers

Loyalty

Productivity&

Output

quality

Service

quality

Capability

Satisfaction

Employees Satisfaction Loyalty

Revenue

growth

External

Profitability

Customer orientation/quality emphasis

Allow decision-making latitude

Selection and development

Rewards and recognition

Information and communication

Provide support systems

Foster teamwork

Quality & productivity

improvements yield

higher service quality

and lower cost

Attractive Value

Service designed

& delivered to

meet targeted

customers needs

Solicit customer

feedback

Lifetime value

Retention

Repeat

Business

Referrals

Service Profit ChainService Profit ChainService Profit ChainService Profit Chain


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Is attitude emphasized?

Are job previews utilized?

Are customers screened?

Are employees

encouraged torefer friends?

Are referrals from

the best

employees given

priority?

Is satisfaction

measuredperiodically?

Are measurements

linked to other

functions on

the cycle?

Careful Employee

and Customer

Selection

(and Self-selection))

High-

Quality

Training

Well-Designed

Support

Systems

Information

Facilities

Greater Latitudeto Meet

Customers

Needs

Clear Limits

on, and

Expectations

of, Employees

Appropriate

Rewards

and Frequent

Recognition

Satisfied

Employees

Employee

Referrals of

Potential

Job

Candidates

Is training for job and

life?

Is it an important

element of quality of

work life?

Do they reflectneeds of the

service encounter?

Are they designed

to foster

relationships?

Does it reflect top

management

talk?

Is it enough to

allow delivery of

results to

customers?

Do they limit the right risks?Are they logical to employees?

Cycle

of

Capability

Are they linked to

service objectives?

Are they balanced

between monetary

and non-monetary?


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Empowerment Control ExerciseEmpowerment Control Exercise

Comes up with an example from each of the fourComes up with an example from each of the fourorganizational control systems (i.e., belief,organizational control systems (i.e., belief,

boundary, diagnostic, and interactive) for:boundary, diagnostic, and interactive) for:

1. Bank Teller

2. Bartender

3. Ski Lift Operator

4. UniversityAdvisor

5. Company Receptionist

6. Automotive Repairperson

7. Restaurant Waitperson

8. Financial Planner

9. Hotel DeskClerk

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