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

2. 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

3. 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?

4. 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

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

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

7. 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

8. 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

9. 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?

10. 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

11. 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

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

13. 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

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

15. 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

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. 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