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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v C hapter 10 P EOPLE I SSUES: M ANAGING S ERVICE E MPLOYEES
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v IMPORTANCE OF CONTACT PERSONNEL People provide a sustainable competitive advantage Focus should be equally based on service quality, service delivery, and employee well-being People selection should be dependent upon the organization and the market it faces different types of firms have different needs Data needs to be tracked concerning what customers want and which HR practices helps deliver it to them
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v SERVICE PROVIDERS AS BOUNDARY SPANNERS Link the organization with the outside world Primary purpose information transfer (two-way) representation Service provider spectrum ranges from professionals to subordinate service roles
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v MAJOR CUSTOMER COMPLAINTS ABOUT SERVICE WORKERS Apathy--DILLIGAD Brush-off Coldness Condescension Robotism Rulebook Runaround
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v SERVICE PROVIDERS AS BOUNDARY SPANNERS Boundary spanners are prone to conflict person/role conflict Inequality dilemmas Feelings versus behavior Territorial conflict organization/client conflict interclient conflicts
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v SERVICE PROVIDERS AS BOUNDARY SPANNERS Leads to feelings of roles stress dissatisfaction frustration turnover intention
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v SERVICE PROVIDERS AS BOUNDARY SPANNERS Provider responses to reduce role stress avoid the customer move into a “people-processing” mode add symbols and furniture to increase control overact the role forces customer into subservient role side completely with the customer
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHAT, HOW AND WHEN OF EMPOWERMENT Empowerment turning the front-line loose encourages and rewards employees to exercise initiative and imaginations Enfranchisement Couples empowerment with a compensation method that pays people for their performance
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v REWARDS THAT ENCOURAGE SERVICE EXCELLENCE The seven tests of rewards Availability Flexibility Reversibility Contingent Visibility Timeliness Durability ** pay “alone” does not pass these effectiveness tests
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHAT, HOW AND WHEN OF EMPOWERMENT Empowerment benefits quicker response to customer needs quicker response to dissatisfied customers employees feel better about their jobs and themselves employees interact with customers with warmth and enthusiasm employees become a great source of service ideas great w-o-m advertising and customer retention
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHAT, HOW AND WHEN OF EMPOWERMENT Empowerment costs larger dollar investments in selection and training higher labor costs slow or inconsistent service delivery violations of fair play giveaways and bad decisions
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHAT, HOW AND WHEN OF EMPOWERMENT Empowerment continuum control-oriented vs. involvement oriented 1. Suggestion involvement empowered to recommend formal suggestion programs quality circles
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHAT, HOW AND WHEN OF EMPOWERMENT 2. Job Involvement “opening up” of job content use more skills, more freedom, and get more feedback extensive use of teams higher level decisions and reward allocation remain the responsibility of senior management
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHAT, HOW AND WHEN OF EMPOWERMENT 3. High Involvement train people to manage themselves profit-sharing and employee ownership develop skills in teamwork, problem solving, and business operations
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHEN TO EMPOWER: A CONTINGENCY APPROACH Contingencies: basic business strategy standardized vs. customized tie to the customer transaction vs. relationship Technology simple vs. complex
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHEN TO EMPOWER: A CONTINGENCY APPROACH Contingencies: business environment predictable vs. unpredictable types of people Managers theory X vs. theory Y Employees low vs. high growth and social needs low vs. high interpersonal skills
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v WHEN TO EMPOWER: A CONTINGENCY APPROACH Contingencies: Scoring: 5 to 10 Control-oriented, production-line approach 11 to 15 Suggestion involvement strategy 16 to 20 Job involvement approach 21 to 25 High-involvement empowerment approach
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v PULLING IT ALL TOGETHER: THE SERVICE-PROFIT CHAIN Internal Service Quality => workplace design job design employee selection and development employee rewards and recognition tools for serving the customer
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COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a trademark used herein under license. ALL RIGHTS RESERVED.v PULLING IT ALL TOGETHER: THE SERVICE-PROFIT CHAIN Employee satisfaction => Employee retention & productivity => External service value=> results for customers Customer satisfaction=> Customer loyalty=> retention, repeat business, referrals Revenue growth & productivity
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