Quality Systems PG Diploma in Hospitality Management Customer Service and Quality Systems – Session 5

Objectives Use Five Gap Model to identify ways to improve customer service Understand the concepts behind TQM and how they can be used to improve quality and efficiency Understand the application of SERVQUAL to improve customer service

Review Explain the terms ‘Theory X’ and ‘Theory Y’ Briefly explain the motivational theories of:- Abraham Maslow Frederick Herzberg Victor Vroom Explain why, in the light of the theories of Geert Hofstede, you would design work groups differently for groups of Americans and groups of Chinese. What would be different about how you would go about motivating these employees?

Importance of Efficiency Maximum profit that can be realistically expected as % of gross receipts: Hotel – 20% Restaurant – 15% Source: “Hotel Operations Management”, Hayes & Ninemeier, Pearson, 2004

Quality and Productivity Market Gains Improved customer service Improved reputation Improved Quality Increased Profits Reduced Costs Reduced compensation and refunds Increased efficiency 6

Customer Expectations Essential Services - meet fundamental requirements eg. Reasonable business hours, admit or check-in guests, inform about service details, acknowledge complaints Expected Services – guests think service provider should offer eg. Convenient operating hours, payment options, reservations, reasonable information about services, facilities, locale Optional Services – guests consider these an added bonus eg. Ambience, convenience, unobtrusive service

Five Gap Model CUSTOMER Word-of-Mouth Communications Personal Needs Past Experience Expected Service GAP 5 Perceived Service ORGANISATION Service Delivery External Communications GAP 4 GAP 3 GAP 1 Service Quality Specifications GAP 2 Management Perceptions of Consumer Expectations

GAP 5: Expected Service vs. Perceived Service Closing the Gaps GAP 1: Consumer Expectations vs. Management Perception Close Gap Talking to customers Talking to customer contact employees Marketing information systems – customer surveys – analysis by segment Reducing levels of management GAP 2: Management Perception vs Service Quality Specification Close Gap Management Commitment – resources Use of hard and soft technology Shift Demand Is meeting customer expectations financially feasible? GAP 3: Service Quality Specification vs Service Delivery Close Gap Training Internal Marketing – pride Teamwork Reward Systems Service Quality Audits GAP 4: Service Delivery vs. External Communications Close Gap Know capabilities of firm Good communications within the firm Internal Marketing - teamwork GAP 5: Expected Service vs. Perceived Service

Gaps Exercise Working in groups of two or three identify gaps of each of the 5 types in organisations where you have worked. How could these gaps be closed?

TQM Total Quality Management: - Encompasses entire organization and all its activities from supplier to customer Stresses a commitment by management to have a continuing company-wide drive toward excellence in all aspects of products and services that are important to the customer 20

Achieving TQM Customer Satisfaction Flow of Activities Employee Fulfilment Quality Principles Organisational Practices What to do How to do it Attitudes and Motivation Customer Satisfaction Flow of Activities

Organizational Practices Leadership Mission statement Effective operating procedure Staff support Training What is important and what is to be accomplished 8

Quality Principles Customer focus Continuous improvement Employee empowerment Benchmarking Just-in-time Tools of TQM How to do what is important and to be accomplished 9

Continuous Improvement Represents continual improvement of processes and customer satisfaction Involves all operations and work teams 23

Employee Empowerment Getting employees involved in service improvements 85% of quality problems are due to process & material Techniques Support workers Let workers make decisions Build teams & quality circles 24

Quality Circles Group of 6-12 Meet regularly Facilitator Needs: employees from same work area Meet regularly 4 hours/month to solve work-related problems Facilitator helps ensure the discussion is effective Needs: support and recognition from management training in problem solving techniques 25

Benchmarking Selecting best practices to use as a standard for performance Determine what to benchmark Form a benchmark team Identify benchmarking partners Collect and analyze benchmarking information Take action to match or exceed the benchmark 28

Just-in-Time Technique of continuous improvement applied to processes that drives out waste and improves quality eg. McDonald’s Suppliers – goods should be delivered as close as possible to the time they are used Layouts – layout designed carefully keeping things apart that need to be kept apart but facilitating smooth flow of a process Inventory – to be kept to a minimum Scheduling – personnel scheduled to precisely meet demand and production in small batches

TQM In Services Service quality perceptions depend on comparison of expectations with reality Perception of service quality derived from process as well as outcome Types of service quality Normal: routine service delivery Exceptional: how problems are handled 67

SERVQUAL Service quality is measurable Service is of high quality when customers’ expectations are confirmed by actual delivery of service Parasuraman, Zeithaml and Berry

Dimensions of SERVQUAL Reliability – ability to perform the promised service dependably and accurately Assurance – knowledge and courtesy of employees and their ability to inspire trust and confidence Tangibles – physical facilities, equipment and appearance of personnel Empathy – caring, individualised attention and attitude of personnel Responsiveness – willingness to help customers and provide prompt service

SERVQUAL Exercise Chose one of the SEVRQUAL dimensions Using the SERVQUAL instrument that you have been given, write four questions which might be part of a SERVQUAL questionnaire designed to measure expectations and experience of users of the college canteen