development and validation of an instrument for measuring total quality service

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Development and validation of aninstrument for measuring Total QualityServiceR. Saravanan a & K.S.P. Rao aa Industrial Engineering Department , Anna University , Chennai,IndiaPublished online: 24 Jan 2007.

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Development and Validation of anInstrument for MeasuringTotal Quality Service

R. SARAVANAN & K.S.P. RAO

Industrial Engineering Department, Anna University, Chennai, India.

ABSTRACT Total Quality Service (TQS) is a comprehensive approach in which the various criticalfactors of total quality management are integrated and implemented in a service organization toachieve customer satisfaction. In the current industrial scenario, more studies have beenconducted on the quality management practices in the manufacturing industries than the serviceindustries. The critical dimensions of quality management from the management’s perspectivehave not yet been addressed completely in the service organizations. Hence, to fill the void,the present research work has been conducted in the service industries with specific reference tothe automobile service stations. After an extensive literature survey, this research work hasidentified 12 dimensions as critical for implementation of Total Quality Management (TQM) inservice industries. The importance of each of these dimensions is discussed in detail. Aninstrument for measuring TQS with specific reference to automobile service stations has beendeveloped. Data have been collected from executives of automobile service stations in adeveloping economy. The instrument has been empirically tested for unidimensionality, reliabilityand convergent validity using the confirmatory factor analysis approach. The research work hasfound that all 12 critical dimensions in the instrument are independent and highly correlatedamong themselves. The present research work explains the critical dimensions of TQS and theirimplementation in a service industry effectively.

KEY WORDS: Instrument, total quality service, service sector, validation

Introduction

In the current era of globalization, liberalization and customer awareness, quality has to be

given prime importance to survive in the international market. In the early stages of quality

evolution, gurus like Deming, Juran, Crosby, Ishikawa, Taguchi and others propounded

principles for quality management. These principles were developed later by various

academicians, researchers and practitioners throughout the world.

Total Quality Management

Vol. 17, No. 6, 733–749, July 2006

Correspondence Address: R. Saravanan, Industrial Engineering Department, Anna University, Chennai - 600025,

Tamil Nadu, India. Email: [email protected]

1478-3363 Print=1478-3371 Online=06=060733–17 # 2006 Taylor & FrancisDOI: 10.1080=14783360600594487

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Several researchers conducted studies on quality management in manufacturing industries

and identified various critical dimensions such as top management commitment and leader-

ship, quality policy, training, product/service design, supplier quality management, process

management, quality data and reporting, employee relations, workforce management,

customer focus, customer involvement, benchmarking, employee involvement, employee

empowerment, etc. (Saraph et al., 1989; Flynn et al., 1994; Powell, 1995; Ahire et al.,

1996; Black & Porter, 1996; Madhu et al., 1996). But the service industry differs from

the manufacturing industry in a number of ways, such as service intangibility, simultaneity

of production, delivery and consumption, perishability, variability of expectations of the

customers and the participatory role of customers in the service delivery.

Even though many researchers conducted studies on various TQM dimensions indepen-

dently, it seems that no research work, still, has collectively taken all these dimensions into

consideration in the service sector. Some dimensions of TQM can be applied both in

manufacturing and the service sector. But the findings of the studies conducted in the man-

ufacturing set-up cannot be applied directly into the service domain due to certain inherent

discrepancies and contradictions between manufacturing and service organizations.

Hence, there is an immediate need to identify and validate the critical dimensions of

TQM in service industries. Against this background the following objectives are set for

this research work:

(1) to review the literature on TQM and TQS;

(2) to identify and explain the critical dimensions required for a TQS set-up;

(3) to develop an instrument to measure TQS from the management’s perspective with

specific reference to automobile service stations; and

(4) to empirically test the developed instrument for unidimensionality, reliability, conver-

gent validity and criterion-related validity.

Literature Survey on Critical Dimensions of TQS

Based on an extensive literature survey on quality management, the critical dimensions of

TQS can be broadly classified into five groups as follows:

(1) Management oriented dimensions: Top management commitment and leadership &

Benchmarking.

(2) Customer oriented dimensions: Customer focus and satisfaction, Service marketing &

Social responsibility.

(3) Employee oriented dimensions: Human resource management & Employee satisfaction.

(4) Organization oriented dimensions: Service culture, Servicescape & Continuous

improvement.

(5) Technology oriented dimensions: Technical system & Information and Analysis.

The criticality of each of the above mentioned dimensions is discussed below:

Top Management Commitment and Leadership (TMCL)

Top management commitment is essential for effective implementation of quality man-

agement practices in an organization. Leaders should apply the Plan-Do-Check-Action

734 R. Saravanan & K.S.P. Rao

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cycle while implementing vision and mission statements to achieve the goals of the

organization. Rust & Oliver (1994) noted that a clear understanding of the concepts of

satisfaction, quality and values are essential to manage service quality.

Further, Milakovich (1995) suggested the top management to be familiar with the TQS

programme thoroughly since it will help them during various stages of implementation.

Leaders in the service organizations have to be competent enough to handle the highly

competitive global market (Zeithaml et al., 1990). Edvardsson et al. (1994) observed

that the leaders in service sector have to ensure proper conformance to the quality

systems by molding the minds of the employees in the organization.

Benchmarking (BM)

Benchmarking is a continuous systematic process of measuring the products, services and

practices against those of industry leaders. It is achieved by four stages, namely planning,

analysis, integration and action. Ahire et al. (1996) observed that the organizations can

achieve global standards when the critical business processes are benchmarked. Prasnikar

et al. (2005) suggested integration of benchmarking of competitive advantage, strategies,

process and performance to improve the quality of strategic management decision-

making.

Customer Focus and Satisfaction (CFS)

Customer focus and satisfaction refers to understanding the expectations of the customers

and satisfying them beyond their expectations. In the manufacturing sector, this can be

achieved by producing those products confirming to requirements and specifications.

But in the service sector, this has to be achieved by focusing on the customer expectations

and satisfying their needs. Milakovich (1995) proposed that the service organizations

should work to achieve customer satisfaction since it is the yardstick for measuring

service quality. Schneider & Bowen (1995) advised that the customer’s basic needs

should be satisfied by the service firm for survival in the long run. Further the authors

suggested the service firms to treat customers as valuable assets and consultants to the

organization. Stebbing (1993) suggested the service firms ask customers directly about

their perspective, their satisfaction level through surveys and focus groups, and use

these data to improve service quality and customer service.

Service Marketing (SM)

Service Marketing refers to the marketing strategies and techniques adopted by the service

organization to attract and retain customers. Service providers have to introduce new

schemes, advertise through audio and visual media and keep close contact with customers

in order to increase their market base. Terri Feldman Barr & McNeilly (2003) conducted

research in USA accounting firms and observed that professional service organizations are

finding themselves increasingly involved with marketing in order to develop and maintain

relationships with their clients. Nwankwo et al. (2004) analyzed UK facilities manage-

ment industries and found that market-oriented organizations perform better than

organizations that are not market oriented.

An Instrument for Measuring Total Quality Service 735

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Social Responsibility (SR)

Social responsibility refers to the responsibility of the organization to perform with social

considerations for the improvement of the society. It has been referred in the Malcolm

Baldrige Model (Malcolm Baldrige National Quality Award, Guidelines, 1997, 1998,

1999, 2000). Zemke & Schaaf (1990) quoted in a study that all customers should be given

equal importance irrespective of their status in the society. Suresh Chandar et al. (2001)

stated that if an organization functions with social responsibility then its image and goodwill

will improve in the long run, ultimately leading to increased customer satisfaction and loyalty

to the organization.

Human Resource Management (HRM)

Human resource management is a management system that utilizes the available man-

power in the organization effectively to improve the organizational systems. The person

who does the work is in the best position to improve the work. Therefore, Schneider &

Bowen (1992) suggested that if the employees are treated as valuable resources then

they in turn will treat their customers as valuable.

Recruitment and selection

Recruitment and selection procedures have to be evolved in such a way that the right

person for the right job is selected. Schneider & Bowen (1993) stated that by recruiting

and selecting appropriate people, training them to work in the market segment allocated

to them, rewarding them according to the target achieved by them will fetch benefits to

the organization. Schneider et al. (1994) suggested that the employees recruited have to

be given orientation in various departments of the organization.

Training and Education

Employees of the organization have to be educated and trained mainly in two fronts,

namely (1) personal development such as developing leadership skills, communication

skills, interpersonal skills etc; and (2) job-related advanced training. Bowen & Schneider

(1988) suggested that the service firms have to train their employees in human related

issues for improving customer relations. Schneider et al. (1994) suggested training the

employees to hone their skills, thereby motivating them to achieve the organization goals.

Employee Empowerment

Employee empowerment means authorization of employees to identify and solve the

problems hindering quality efforts. Schneider & Bowen (1995) found that empowerment

consists of systematic redistribution of four key aspects, namely power, knowledge, infor-

mation and rewards from top to bottom in the organization. Zemke & Schaaf (1989)

concluded that employee empowerment is essential for successful implementation of

quality management programmes in the organizations. Empowerment should be given

in such a way that employees exhibit courteous and problem solving ability while

dealing with customers (Schneider & Bowen, 1992).

Employee involvement

Employee involvement refers to the participation of the employees in the quality manage-

ment practices of the organization voluntarily. Smith (1995) suggested that several


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techniques like ‘quality circles’, ‘quality improvement teams’, ‘problem hit squads’ and

‘suggestion teams’ can be used to encourage employee participation. Schneider & Bowen

(1995) stated that the employees interacting with the customers must be able to control

the quality of service delivered. Hence, employees who deliver the service must be able

to market the service also.

Employee Satisfaction (ES)

Employee satisfaction is the extent to which the employees of a firm feel that their interests

are continuously satisfied by the management. Schneider & Bowen (1995) found that

the employees join the organization with psychological contracts, in the same way as

customers do business with the organization with psychological contracts. Hence, when

employees are satisfied with the organization they in turn will satisfy the needs of

customers effectively. Schneider et al. (1994) suggested that facilities like cars, housing

etc., should be given to the employees in addition to pay and promotion by the manage-

ment. Hence, by satisfying the employees in all means, management make them exhibit

innovation-oriented behavior towards customers.

Folger & Greenberg (1985) recommended distributive justice in the form of cash

rewards, incentives, etc. and the procedural justice by way of promotions, job assignments

in foreign countries, etc. for the employees. Therefore, from the above discussions it has

been inferred that employee satisfaction and customer satisfaction are strongly interlinked.

Service Culture (SC)

Service culture implies the behavior and working culture of the employees in the organiz-

ation. Proper service culture will make the employees of the organization share a common

vision and achieve the goals of the organization (Schneider & Bowen, 1995). Good service

culture ensures reliable, responsive, empathetic service to customers and assures them of

trust and confidence in the business (Parasuraman et al., 1988). Zemke & Schaaf (1990)

observed that the customers form an opinion about the service culture of employees

during service encounters. Bitner et al. (1990) explained service encounters and customer

loyalty through a tool called “Critical Incident Technique (CIT)” and suggested the firms to

train the employees in service interactions and organizational behaviour. Service providers

have to train all the employees in the working culture of the organization and explain them

about the company history with customer relations. The orientation program should play a

critical role in the ultimate success of the customer service efforts of the organization. The

employees have to realize that customer service is the responsibility of everyone in the

organization, not just the ‘customer service department’. Chandon et al. (1997) examined

the service encounters from the perspective of both employees and customers and

concluded that management has to create a culture of interdependency and teamwork

for maximizing employee potential and organization performance.

Servicescape (SCP)

Servicescape is the physical environment comprising the non-human elements in and

around the organization, like the effects of machinery, employee dress, building layout,

ventilation, lighting, etc. Bitner (1992) concluded that the Servicescape could create an


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impression on the customers about the organization. Berry & Clark (1986) observed that cus-

tomers form an opinion about the organization’s ability to deliver quality service based on

Servicescape. Baker et al. (1988) found that Servicescape will affect both the customers

of the firm and the employees of the firm.

Continuous Improvement (CI)

Continuous improvement refers to continuously improving the quality of products and

services to achieve customer satisfaction and to reduce costs. Milakovich (1995) noted

that the overall performance of the organization will increase through effective implemen-

tation of quality management programmes in a continuously improving environment. The

continuous improvement in all activities of the organization will lead to achieve global

standards in reality (Schneider et al., 1996).

Technical System (TS)

Technical system refers to the management of the processes, systems and techniques that

are required to standardize the service delivery. Upgrading of available technology in the

organization (e.g. computerization) improves the service delivery. The technical system of

the organization should be able to provide quick service to the customers than the

competitors (Milakovich, 1995). Zemke & Schaaf (1990) quoted in a study that service

operations should be made easy and simple in a way such that the customers can easily

understand and quickly access them.

Information and Analysis (IA)

Information and analysis is the analysis of data to understand the impact of quality

management practices on organizational performance and cost implications for deciding

the corrective actions. Berkeley & Gupta (1995) suggested that the employees have to

be provided with the information regarding the processes and customers so that they

can tackle the peak hour rush of customers effectively. Management must measure the

service quality delivered with the help of questionnaires distributed to the customers

and receive feedback from them. Customer feedback information must be passed on to

all the employees irrespective of their level and the concerned workmen have to take

responsibility for their work content and improve their performance if there is any

deficiency in service (Schneider & Bowen, 1995).

Empirical Validation of TQS Constructs

Methodology

In order to assess the opinion of practitioners in the field, the survey has been conducted

using questionnaires. A survey instrument consisting of 139 items was developed to

empirically validate the TQS dimensions. The instrument has been developed based on

an extensive literature survey. Further, the survey instrument developed by Suresh

Chandar et al. (2001) was also considered and modified according to the field chosen

for this study – the automobile service sector. A pilot study was conducted and comments


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and suggestions from various academicians, researchers and practitioners were incorpor-

ated into the questionnaire and the instrument was refined. The instrument was finalized

with 118 items since the meaning of some items was repetitive and some items were

not relevant to the field chosen for this research work. Even though the instrument was

general in nature it has been designed specifically to address the issues of automobile

service stations in a developing economy, India. The automobile service stations have

been chosen because of the high business transactions between the customers and

service provider. Hence, the results and findings of this research work may be used as a

reference for other service firms also. The complete instrument, consisting of 118

items, is presented in the appendix. Data have been collected from the practitioners of

various automobile service stations in India. The respondents have been asked to rate

the level of TQS practices in their organization with respect to each item on a seven-

point Likert scale (from 1 indicating very low to 7 indicating very high). 1000 executives

were approached to respond to the questionnaire, and 500 executives from 90 different

automobile service stations expressed willingness to participate in this study. Finally,

306 usable questionnaires were received from 54 automobile service stations resulting

around 60% response rate.

Scale Refinement and Validation

The items that are developed have to measure what they intend to measure. Hence,

reliability and validity have to be established for them. The first step in scale refinement

and validation is to identify the critical dimensions through an extensive literature survey.

The second step is to develop items/operating elements for measuring each dimension.

The third step is to pretest the instrument by experts in the field. The fourth step is the

modification and refinement of the instrument. The next step is the collection of data

through field survey and the collected data are factor analyzed. Then the operationalization

and standardization of the instrument are ensured by reliability and validity tests. The tech-

nique used for factor analysis is the Confirmatory Factor Analysis (CFA) approach instead

of the Exploratory Factor Analysis (EFA) approach.

Confirmatory factor analysis uses a multivariate technique to test whether a pre-

specified relationship exists between the observed and latent variable whereas the explora-

tory factor analysis does not confirm any relationships specified prior to the analysis but

instead lets the method and the data to define the nature of relationships. In CFA the

researcher specifies the variables that are indicators of each construct and they only

have factor loadings whereas in EFA the researcher specifies only the number of factors

and hence all the variables have factor loadings and act as indicators for each factor. In

CFA the model formulations are supported by theory whereas in EFA the model respeci-

fications are made without any theoretical backup (Hair, et al., 2005). Keeping the above

aspects in mind the CFA approach has been used in this research work.

After the finalization of the scale, its construct validity must be ensured so that the

results and findings from the scale are reliable. Construct validity is defined as

the extent to which the items measure the desired concept. To check the goodness of

the overall model fit, the following hypothesis has been formulated.

H1: Instrument for measuring TQS comprises Top-management commitment, Bench-

marking, Human resource management, Employee satisfaction, Technical system,


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Information and analysis, Customer focus and satisfaction, Service marketing, Social

responsibility, Service culture, Servicescape and Continuous improvement.

Results and Discussions

Unidimensionality

Unidimensionality refers to the characteristic of a set of indicators that has only one under-

lying trait or concept in common. In unidimensionality, a structural model and measure-

ment model was developed for each construct and structural equations modelling is used to

assess its statistical significance (Hair et al., 2005). A comparative fit index (CFI) of 0.90

or above implies strong scale unidimensionality (Byrne, 1994). The CFI values for all the

12 dimensions of the developed instrument are shown in Table 1. Since the CFI values for

all the 12 dimensions are above 0.90, they testify strong scale unidimensionality.

Reliability

After unidimensionality test, reliability analysis was conducted. Reliability is the extent to

which a variable or set of variables is consistent in what it is intended to measure (Hair

et al., 2005). Reliability can be measured by test-retest method, equivalent form, split-

halve method and internal consistency method. Out of these, internal consistency is

more reliable and requires single administration (Suresh Chandar et al., 2001). Therefore,

it is applied in this study. The internal consistency of each factor was determined by

examining each item inter-correlation and computing Cronbach’s alpha (Nunally,

1978). A Cronbach’s alpha value of 0.70 or above implies strong scale reliability

(Cronbach, 1951). The Cronbach alpha values for all the 12 dimensions are shown in

Table 1 and they are above 0.70. Hence, all 12 dimensions are internally consistent and

testify strong scale reliability.

Table 1. Unidimensionality, reliability and convergent validity values for TQS dimensions

Sl. No. Dimension

Comparative fit

index (CFI)

Cronbach

Alpha (a)

Bentler–Bonett

coefficient (O)

1. Top Management Commitmentand Leadership (TMCL)

0.978 0.966 0.958

2. Benchmarking (BM) 0.961 0.865 0.9563. Customer Focus and Satisfaction (CFS) 0.972 0.977 0.9404. Service Marketing (SM) 0.979 0.900 0.9695. Social Responsibility (SR) 0.912 0.800 0.9016. Human Resource Management (HRM) 0.939 0.963 0.9207. Employee Satisfaction (ES) 0.915 0.937 0.9038. Service Culture (SC) 0.970 0.906 0.9589. Servicescape (SCP) 0.974 0.857 0.960

10. Continuous Improvement (CI) 0.937 0.972 0.91211. Technical System (TS) 0.942 0.920 0.92512. Information and Analysis (IA) 0.928 0.937 0.908

CFI value of 0.90 and above testifies strong scale unidimensionality.

a value of 0.70 and above testifies strong scale reliability.

O value of 0.90 and above testifies strong scale convergent validity.


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Validity Analysis

Validity analysis is done by content validity, convergent validity and criterion-related

validity.

Face validity

Since the TQS dimensions are developed after an extensive literature survey, their selec-

tion is justified and hence the instrument has face validity. Kaplan & Sacuzzo (1993)

quoted that a measure is considered to have face validity if the items are reasonably

related to the perceived purpose of the measure.

Content validity

Content validity is the extent to which the instrument covers the concept to be measured.

Since the items spanning the various constructs in the instrument have been developed

after extensive literature survey and review by practitioners, quality/management consul-

tants and academia, content validity of the instrument has been ensured (Nunally, 1978).

Convergent validity

Convergent validity assesses the degree to which two measures of the same concept are

correlated. High correlations indicate that the scale is measuring its intended concept

(Hair et al., 2005). A scale with Bentler–Bonett coefficient values of 0.90 or above

implies strong scale convergent validity (Bentler & Bonett, 1980). Since the Bentler–

Bonett coefficient values for all 12 dimensions given in Table 1 are more than 0.90,

strong scale convergent validity is demonstrated.

Criterion-related Validity

The concept of criterion-related validity is to check the relationship between the outcome

dimensions of the TQS program and the other dimensions of the TQS program (Saraph

et al., 1989; Flynn et al., 1994; Suresh Chandar et al., 2001). In the present research

work, employee satisfaction and customer focus and satisfaction are the outcome dimen-

sions and their relationships with other dimensions are analyzed. The values are given in

Table 2. All the dimensions have significant positive correlations with ES and CFS,

thereby demonstrating strong criterion-related validity.

Inferences from the Research Work

. Tables 1 and 2 have indicated that all 12 dimensions exhibit strong scale unidimension-

ality, reliability, convergent validity and criterion-related validity. Hence, hypothesis

H1 is accepted as the TQS is a 12-dimension structure consisting of the above identified

12 dimensions.

. The instrument thus standardized can be used to measure the level of TQS practices in

service organizations. A total quality service index (TQSI) with respect to each dimen-

sion can be calculated for every organization. The TQSI value for a specified dimension

indicates the level of TQS practice of that dimension in the concerned organization. It is

the average of the executives’ rating for the items in that specified dimension.


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. The concerned organization can try to improve the systems and procedures keeping the

TQSI values as a reference. Researchers can use these results and findings as a reference

while studying other organizations in the service sector.

Limitations of the Research Work

. Owing to practical difficulties and time constraints, the research work has been confined

to the automobile service sector alone.

. TQS is a integrated management philosophy that has to be implemented with all it’s

dimensions together. Hence, multicollinearity may be encountered while analyzing

the influence of TQS dimensions (treated as independent variables) on business per-

formance (treated as a dependant variable) owing to the high intercorrelations among

TQS items.

Scope for Future Work

. The suitability of the instrument can be tried out in other sectors of the service industry

in order to generalize the findings across the entire service industry.

. The research work can be carried out in other developing economies and developed

economies since the perceptions of the management may differ in different economies.

Summary

To summarize, this research work has identified 12 TQS dimensions as critical from the per-

spective of the management, covering all the aspects of TQM in service organizations such as

management support, comparison with other organizations, human element and non-human

element in service production and delivery, analysis of data, customer focus, marketing,

social development, working culture, aesthetics of the organization and improvement. The

developed instrument is also empirically validated by data collected through a field survey.

From the CFA analysis, it is inferred that level of practice of TQS can be measured

by 12 critical dimensions. Unidimensionality, reliability and convergent validity tests

Table 2. Bivariate correlations among the TQS dimensions

TMCL BM CFS SM SR HRM ES SC SCP CI TS IA

TMCL 1.00BM 0.40 1.00CFS 0.42 0.75 1.00SM 0.37 0.60 0.74 1.00SR 0.66 0.66 0.63 0.65 1.00HRM 0.68 0.68 0.40 0.59 0.78 1.00ES 0.60 0.50 0.24 0.31 0.67 0.73 1.00SC 0.78 0.50 0.41 0.27 0.73 0.59 0.51 1.00SCP 0.49 0.66 0.56 0.74 0.71 0.66 0.56 0.47 1.00CI 0.72 0.59 0.54 0.59 0.92 0.82 0.80 0.69 0.65 1.00TS 0.66 0.69 0.56 0.76 0.89 0.88 0.69 0.57 0.75 0.84 1.00IA 0.52 0.64 0.38 0.45 0.79 0.81 0.77 0.57 0.44 0.85 0.80 1.00

All correlations are statistically significant at a level of 0.01.


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conducted on the data prove that all the 12 dimensions are independent. Simultaneously,

through the bivariate correlation analysis, it has been found that there is a good degree of

correlation among the various TQS dimensions and the correlations are statistically sig-

nificant at a level of 0.01. Therefore, from the CFA analysis and correlation analysis

results, it is inferred that all 12 TQS dimensions are independent and highly correlated

among themselves.

Thus, business executives can utilize the results and findings of this research work to

improve their business performance and customer satisfaction.

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Appendix

An Instrument for Measuring Total Quality Service (TQS) from the Perspective of the

Management with Specific Reference to the Automobile Service Stations

The 12 critical dimensions of TQS and their operating measured are given below.

1 Top Management Commitment and Leadership

1. Level of practice of decentralized authority structure.

2. Extent to which business vision forms the basis for strategic quality planning and

decision-making.

3. Degree of importance given to quality rather than cost by the senior management.�

4. Degree of top management commitment to the philosophy of quality management.

5. Importance given by the top management for allocation of sufficient resources and

time for quality improvement initiatives.

6. Extent to which top management takes into account the competitor organizations and

the element of risk in its strategic planning and decision-making.

7. Attitude of the top management to consider employees as valuable assets to the

organization.

8. Extent to which the leaders properly guide their subordinates.�


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9. Self-introspection by the leaders towards their commitment to quality management

implementation.�

10. Attitude of the leaders to remove the root causes of the problems instead of firefighting

with them.

11. Building mutual trust and respect among the employees.

12. Encouragement of participative management among the employees.

13. Coordination skills of the supervisors with various department heads.

14. Ability of the supervisors to bring consensus approach while solving the problems.

2 Benchmarking

1. Emphasis on benchmarking the level of Servicescape (e.g. aesthetics, comforts and the

equipments), with those of other service stations.

2. Emphasis on benchmarking the training and development programs, with those of other

service stations.�

3. Emphasis on benchmarking the employee satisfaction, with that of other service stations.�

4. Emphasis on benchmarking the employees’ commitment to achieve customer satisfac-

tion, with that of other service stations.

5. Emphasis on benchmarking the customer satisfaction, with that of other service stations.

6. Level of practice of benchmarking the business performance, with that of direct competitors.

3 Human Resource Management

A. Recruitment and Selection

1. Degree of importance given to quality consciousness of employees at the recruit-

ment stage.

2. Degree of importance given at the time of recruitment regarding experience related

to quality management.

B. Training and Education

3. Degree of importance given to develop communication skills in training

programs.

4. Level of employee awareness of business goals of the service station.

5. Training of employees in diagnostic and basic problem solving skills such as Cause

and Effect analysis, Pareto analysis, Brainstorming, Quality Circles and Quality

management systems such as ISO 9000.

6. Effectiveness of inculcating quality culture among the employees.

7. Extent of money budgeted each year for employee education, training and upgrad-

ing the use of technology.�

C. Employee Empowerment

8. Degree to which the employees are encouraged to enrich their problem solving

skills.

9. Degree to which the employees are allowed freely to express their views and

opinion about the service station.


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10. Extent to which the employees are given adequate authority to achieve the goals.

11. Self-inspection of the vehicles by the mechanics/service personnel themselves

without waiting for quality inspectors.�

D. Employee Involvement

12. Degree of importance given to employee suggestions and innovations.

13. Effectiveness of Quality Circles (QC) and Cross Functional Teams with respect to

evolution of quality improvement strategies and solutions to problems related to

quality.�

14. Extent to which employees are involved in quality management programs.

15. Degree of coordination among various departments’ personnel to achieve overall

improvement in service quality.

4 Technical System

1. Extent to which the service processes are simplified and standardized so that the results

are achieved without any delay.

2. Emphasis on systematic documentation of service processes for easy traceability of

mistakes and for taking corrective actions.

3. Identification of critical processes and monitoring them regularly.

4. Level of practice of fool-proofing the processes.�

5. Level of upgrading of available technology in the service station to compete in

market.

6. Redesigning the processes to reduce the cycle time of delivery of the vehicle by apply-

ing Business Process Reengineering concepts.

7. Extent of work measurement by conducting time studies and motion studies.�

8. Level of enforcement of safety precautions among the employees.

5 Information and Analysis

1. Periodic appraisal of the employees about the effectiveness of quality management

processes undergone in the service station.

2. Frequency of departmental meetings conducted to implement Plan-Do-Check-Action

cycle for quality improvement programs.

3. Usage of quality management tools like bar charts and control charts to monitor the

quality.

4. Integration of customer-feedback data with the service design processes to improve

the service quality parameters.�

5. Extent of evaluation of relationship between customer satisfaction and business per-

formance of the service station.�

6. Measurement of quality improvement efforts in terms of reduction of wastage.

7. Level of progress-report analysis of the various departments.

8. Amount of feedback provided to employees on their performance with respect to

quality.

9. Degree of importance given for market investigation with respect to the service station

position in the market.


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10. Degree to which analysis of various types of costs – namely prevention costs, appraisal

costs and failure costs – is done.

6 Service Marketing

1. Extent of providing extended warranty to vehicles.�

2. Extent of sending reminder letters to customers for routine service and maintenance of

the vehicles.

3. Level of informing the customers of next due-date of service by telephone or emails.

4. Degree to which indication of next due-date for service by means of coupons.

5. Extent of effectiveness of quick repair service in the service station.

6. Extent of providing free pollution control checkup/service to vehicles by conducting

service mela.�

7 Social Responsibility

1. Extent of providing good service at a reasonable price without comprising on quality.

2. Emphasis on disciplined behavior among the employees with a sense of social

responsibility.

3. Level of satisfying customers beyond their expectations (service transcendence).

4. Extent of treating all customers equally irrespective of their status in society.�

5. Extent of establishing service stations at all locations, namely urban, semi-urban and

rural areas.�

6. Level of practice of value-added services in the service station.

8 Service Culture

1. Level of teamwork and good human relationship among the employees.

2. Level of trust and openness among the employees.�

3. Level of practice of philosophy ‘Make it Right First Time’ in the service station by the

employees.

4. Feelings such as ‘Our company’ and ‘We work together to achieve common goals’

among the employees.

5. Realization and practice of the motto ‘Service to customers’ in the service station by

employees.

6. Belief among the employees that quality management is essential for survival in the

highly competitive market.

7. Employees’ resistance to change their behavior towards implementation of quality

management concepts.�

9 Servicescape

1. Level of appearance of employees, who should have a neat and professional look.

2. Level of practice of Seiri (elimination), Seiton (orderliness), Seiso (cleanliness),

Seiketsu (standardization), and Shitsuke (self-discipline) in the service station.

3. Extent of suitability of environmental factors such as temperature, ventilation, noise

and odor to the employees.


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4. Degree of impact on customers by the boards displaying business vision and quality

policy.

5. Level of customer satisfaction with the existing service station layout and other

facilities.

6. Extent of display of product advertisement boards.�

7. Extent of display of service delivery status.�

8. Extent to which materials and colors used in the service operations are visually

appealing.�

10 Customer Focus and Satisfaction

1. Level of providing services as per the promised delivery schedule.

2. Extent to which analysis is done with respect to dissatisfaction in service quality.�

3. Level of goodness of employees who are consistently courteous and well behaved with

the customers.

4. Extent of adding new techniques in service activities; service innovation (e.g. payment

by Citicard, internet, registration for service of vehicles by e-mail, conducting service

mela).

5. Range of service period based on service charge (e.g. quicker delivery of vehicle by

paying higher service charge, normal delivery of vehicle by paying lower service charge).

6. Degree of importance given to customer satisfaction and service quality in day-to-day

operations.

7. Level of the employees to clarify customers’ doubts after servicing the vehicles thereby

instilling confidence in them.

8. Degree of doing services correctly at the first instance itself.

9. Extent to which the customer-feedback forms are provided to the customers for the

purpose of continuous improvement.�

10. Level of technical capability of the staff to diagnose the critical problems in the

vehicle and rectify them.

11. Level of effectiveness of the employees to understand the needs and expectations of

the customers and delivering prompt service.

12. Level of making customers feel safe and secure in their business transactions.

13. Extent to which service station’s working hours and working days are convenient to

the customers.

14. Extent of giving caring and best attention to the customer by keeping customer delight

in mind.

15. Level of reliability of the service station in handling customers’ grievances and

redressing them through customer day, etc.�

16. Extent to which customers are informed/apprised about safety precautions while

driving.

17. Degree of availability of all types of facilities in all service locations.

11 Employee Satisfaction

1. Effectiveness of employee-grievance redressal meetings conducted by the management.

2. Extent to which employee-appraisal system is implemented.


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3. Degree of implementation of indirect benefits such as selection for training programs,

giving certificates for quality improvements, etc.

4. Design of career-advancement programs for all levels of employees with requirements

and expectations clearly specified.

5. Giving monetary awards to employees for cost reduction and service innovation.

6. Degree of importance given to job enrichment rather than job enlargement and job

rotation.

7. Group incentives for motivating the employees to achieve the desired level of

performance.�

12 Continuous Improvement

1. Emphasis of continuous improvement in all the activities done at various levels.

2. Measurement/quantification of continuous improvement techniques on the basis of

factors such as cost and time.

3. Degree to which the service station believes that by implementing continuous

improvement strategies, it can survive and serve better in the highly competitive

environment.

4. Extent to which quality is given more importance than quantity (e.g. service quality

versus number of vehicles serviced per day).

5. Level of effectiveness of work instructions given in the process sheet.�

6. Extent of efforts taken to have quality management systems such as ISO 9001:2000.

7. Extent of emphasis on quality-awareness programs (such as Quality Day) for employees.

8. Extent of implementation of vision/mission statement.

9. Level of implementation of quality policy.

10. Extent to which quality goals are achieved.

11. Level of consideration of customer’s requirements and expectations in formulating

the service station’s objectives, plans, strategies and actions.

12. Extent to which inspection, review or checking of work is automated.�

13. Extent of using quality-department data to evaluate managerial and supervisory

performance.

14. Autonomy of the quality department in development and implementation of company-

wide quality process and management.

� Items dropped for improving reliability values.


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development and validation of an instrument for measuring total quality service

Documents