Toward A Core Typology of Service Organizations By: Peter Mills and Newton Margulies Presented by Joelle Do

Objective Develop a core typology by describing three types of service organizations using seven dimensions of interaction between client and organization Typologies are an instrument used to reduce data and stimulate thinking Seeks to provide more precision in the classification of organizations

Researchers Say… Barnard, 1938, defines organization as a cooperation among people Weick, 1976, says organizations are clusters of events in changing states of coupling Blaus and Scott, 1962, recognizes the beneficiary typology which classifies all organizations to the prime beneficiary -allows for predictions, but limited - cannot determine short term or long term beneficiary

Research Continued Jurkovich, 1974, classified organizations based on environment -Underlying reason is organization are problem-solving entities -Reactive to environment Pugh, Hickson, Hinings, 1969 tried to move away from the technological approach -Structuring of activities -Concentration of authority -Lined control of work flow

Research Continued Etzioni’s, 1961, has the control and power approach which is based on three control systems -Coercive (punishment) -Utilitarian (compensation) -Normative (social values) Woodward, Harvey, Parrow, , have a typology based on technology -Long-linked technology (interdependence between production units by assembly line) -Mediating technology (entails joining of clients and independent units) -Intensive technology (varied set of techniques to deal with specific problems)

Methodology Research efforts directed to examine relationship between client and service organization Study of previous research Analysis of organizations Measurement of seven Interface variables

Three Basic Types of Service Organizations Maintenance – Interactive Task – Interactive Personal – Interactive

Maintenance Interactive *continuous interaction between customer and employee *focused on trust to sustain the relationship for an indefinite time period *success based on organization’s ability to portray an image of stability *examples would be financial institutions, insurance companies *amount of information in transaction is limited *employee interchangeability is allowed

Task Interactive *relatively concentrated interaction between client and employee *focus is on varied techniques for problem solving *focus is on how to accomplish tasks, not so much on what customer wants *interaction is more complex because of the transfer of information *clients do not now what techniques are used to create the demand for the product *example is engineering firm and client *duration of relationship is long because flow of information is extensive *tasks demand judgmental independent decisions

Personal Interactive *personal nature of the problem brought to the employee decision unit by the client *focuses on the improvement of the clients intrinsic and intimate well-being *examples would be counseling and medical organizations *considered professional service *employees provide personal service to clients but are unsure what and how to best serve *extensive information must be given by client *client is dependent on employee and client is viewed in the subservient state.

Seven Classification Variables Information - quantity, quality, and confidentiality Decision - Employee decisions, importance, feedback Time - Interface duration, total time in direct contact Problem Awareness - Client knowledge about problem, client ability to evaluate services, expectations versus capabilities Transferability - Substitutability of employee Power - Perceived power of employee, employee status, employee authority Attachment - Conflict potential, employee identification

Lessons Learned Degree of interaction between clients and employees varies This interaction can help organizations predict future behavior and prepare for problems which arise

Summary This typology has classified three types of service organizations – maintenance, task, and personal Based on the crossing point between client and organization Assist in prediction of future behaviors of organizations that fall into particular categories