Employees' Roles in Service I. Service Culture ● The behaviour of the employees in the organisation influences the culture or pervasive norms (of that organisation) and values that shape individual and group behaviour. ● Corporate culture is the pattern of shared values and beliefs that give the members of an organisation meaning, and provide them with the rules for behaviour in the organisation. ● Culture has been defined more informally as “the way we do things around here.” ● Ex: church,school,... ● You can know culture by talking/pbsering people. ● Service culture: a culture where an appreciation for good service exists, and where giving goodservice to internal as well as ultimate, external customers is considered a natural way of life and one of the most important norms by everyone. ● Behaviour is influenced by the underlying values, norms, and culture of the organisation ● Customer oriented and service orientated organisations will have a heart of service culture. ● Service culture exists when there is: 1. Appreciation for good service = people know that good service is appreciated and valued 2. Good service is given to internal and external customers = all people in the organisation deserve the same kind of service 3. Service culture good service "A Way of Life'' and comes naturally because it is a norm of the organisation. Service culture is critical to the creation of a customer-focused organisation and has been identified as a source of competitive advantage in companie II. Exhibiting Service Leadership ● Strong service culture begins with leaders who demonstrate a passion for service excellence. In strong firms, leaders have similar values, ie. integrity, joy, respects and they "infuse these values into the organisation" ● Employees are more likely to embrace a service culture when they see management living out these values ● Espoused values—what managers say the values are—tend to have less impact on employees than enacted values—what employees believe the values to be because of what they observe management actually doing ● Culture is driven by what employees perceive that management really believes, believes, and employees gain an understanding of what is important in the organisation through the daily experiences they have with those people in key roles throughout the organisation III. Developing a Service Culture ● Service culture is not developed overnight. Many little factor are required to build and sustain a service culture. ● Sustaining service culture takes a lot of consistent effort IV. Transporting a Service Culture ● Transporting a service culture through international business expansion is also very challenging. 1. Organisations service culture may clash with national culture 2. Clash may be with actual values or how they are enacted 3. It is possible that they firm isn't successful in that setting or they firm needs to be modified for the new setting ● Although tremendous opportunities exist in the global marketplace, the many legal, cultural,and language barriers become particularly evident for services that depend on human interaction V. The Critical Role of Service Employees ● People—frontline employees and those supporting them from behind the scenes—are critical to the success of any service organisation. ● The people element of Marketing Mix is important. People are all the human actors who play a part in service delivery and thus influence thebuyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment. ● The key focus in this chapter is on customer-contact service employees because: 1. They are the service. 2. They are the organisation in the customer’s eyes. 3. They are the brand. ● In many services, such as hairstyling, the offering is the employee. Or the employee will personify the firm in the customer's eyes Service employees are the brand. ● The brand image is not just built and maintained by the products sold and the advertisement: it is a function of the people who work for them. Branded Customer Service - Strategies that recognize the power of employees to create the brand have been referred to as Contact employees perform the role of marketers because contact employees represent the organisation and can directly influence customer satisfaction VI. The Service Triangle ● The service triangle visually reinforces the importance of people in the ability of firms to keep their promises and succeed in building customer relationships ● There are three interlinked groups that work to develop, promote, and deliver services: 1. The company 2. The customer's 3. The providers - employee, subcontractors, or outside entities who deliver the company's services ● Between these three points on the triangle, three types of marketing must be successfully carried out for a service to succeed: 1. External marketing 2. Interactive marketing 3. Internal marketing External Marketing efforts that the firm engages in to develop its customers’ expectations and make promises to customers regarding what is to be delivered. Anyone or anything that communicates to the customer before service delivery can be viewed as part of this external marketing function. Interactive marketing or real-time marketing. Here is where promises are kept or broken by the firm’s employees, subcontractors, or agents. Internal marketing - Management engages in these activities to help the providers deliver on the service promise: recruiting, training, motivating, rewarding, and providing equipment and technology. Unless service employees are able and willing to deliver on the promises made, the firm will not be successful. VII. Employee Satisfaction, Customer Satisfaction, and Profit Satisfied employees make for satisfied customers (and satisfied customers can, in turn, reinforce employees' sense of satisfaction in their jobs). ● A climate for service and a climate for employee wellbeing are correlated with perceptions of service quality. ● Both service climate and human resource management experiences that employees have within their organisations are reflected in how customers experience the service. ● The connect between employee satisfaction to customer satisfaction and loyalty is shown in the service profit chain ● The service profit chain suggests that there are critical linkages among internal service quality,employee satisfaction/ productivity, the value of services provided to the customer, and ultimately customer satisfaction, retention, and profits. ● This does NOT suggest causality; one does not cause the other. ● Companies that exhibit high levels of success on the elements of the model will be more successful and profitable than those that do not. VIII. The Effect of Employee Behaviours on Service Quality Dimensions Reliability | Delivering the service as promised—reliability—is often totally within the control of frontline employees. When services fail or errors are made, employees are essential for setting things right and using their judgement to determine the best course of action for service recovery. Responsiveness | Frontline employees directly influence customer perceptions of responsiveness through their personal willingness to help and their promptness in serving customers Assurance I the dimension of service quality is highly dependent on employees’ ability to communicate their credibility and to inspire the customer’s trust and confidence in the firm. The reputation of the organisation will help, but in the end, individual employees with whom the customer interacts confirm and build trust in the organisation or detract from its reputation and ultimately destroy trust. Empathy | that employees will pay attention, listen, adapt, and be flexible in delivering the individual customer's need IX. Boundary-Spanning Roles ● Frontline service employees are referred to as boundary spanners because they operate at the organisation's boundary. ● Boundary spanners provide a link between the external customer and environment and the internal operations of the organisation. They serve a critical function in understanding, filtering,and interpreting information and resources to and from the organisation and its external constituencies. ● No matter the pay, boundary spanning is often a high stress job. ● These stresses and trade-offs can result in failure to deliver services as specified, which widens the service performance gap X. Emotional Labour Emotional Labour is the labour that goes beyond the physical or mental skills needed to deliver quality service. In general, boundary-spanning service employees are expected to align their displayed emotions with organizationally desired emotions via their use of emotional labour. This includes: - Smiling - Eye contact - Showing sincere interest - Engaging in friendly conversation with people XI. Sources of Conflict ● Frontline employees often face interpersonal and interorganizational conflicts on the job. Their frustration and confusion can, if left unattended, lead to stress, job dissatisfaction, diminished ability to serve customers, and burnout. ● Frontline employees inevitably have to deal with conflicts, including person/role conflicts,organisation/client conflicts, and inter-client conflicts, as discussed in the next sections 1. Person/Role Conflict Sometimes there is conflict between what you are asked to do and personal morals and values. ● Arises in different cultures ● Arises in wearing specific clothing or appearance requirements 2. Organization/Client Conflict ● Most common conflict is between the organisation and the customers. ● The conflict is greatest when the employee believes the organisation is wrong in its policies and must decide whether to accommodate the client and risk losing a job or to follow the policies. Even greater for employees who rely on tip or commission 3. Organization/Client Conflict ● Most common conflict is between the organisation and the customers. ● The conflict is greatest when the employee believes the organisation is wrong in its policies and must decide whether to accommodate the client and risk losing a job or to follow the policies. Even greater for employees who rely on tip or commission 4. Inter-client Conflict ● Sometimes conflict occurs for boundary spanners when incompatible expectations and requirements arise from two or more customers. ● Occurs most often when the service provider is serving customers in turn or is serving many customers at once ● When serving customers in turn, the provider may satisfy one customer by spending additional time, customising the service, and being very flexible in meeting the customer’s needs.Meanwhile, waiting customers may become dissatisfied because their needs are not being met in a timely way. Beyond the timing issue, different clients may prefer different modes of service delivery; one client may prefer personal recognition and a degree of familiarity while another client may be “all business” and prefer little interpersonal interaction. ● When serving many customers at the same time, employees often find it difficult or impossible to serve the full range of needs of a group of heterogeneous customers. This type of conflict is readily apparent in any college classroom in which the instructor must meet a multitude of student expectations and different preferences for formats and style. It is also apparent in an entertainment venue or any type of group training service XII. Quality/Productivity Trade-Offs ● Frontline service workers are expected to be effective and efficient: Expected to deliver satisfying service to customers and at the same time to be cost-effective and productive in what they do. ● These essential tradeoffs between quality and quantity and between maximum effectiveness and efficiency place real-time demands and pressures on service employees. ❖ Technology is being used to an even greater degrees to free them to provide higher-quality service for the customer XIII. Strategies for Delivering Service Quality Through People ● Strategies are needed to ensure service employees are willing and able to deliver quality services and stay motivated to perform in customeroriented, service-minded ways. ● These strategies are referred to as internal marketing people. ● The strategies presented here are organised around four basic themes. To build a customer-oriented, service-minded workforce, an organisation must (1) hire the right people,(2) develop people to deliver service quality, (3) provide the needed support systems, and (4)retain the best people XIV. Hire the Right People The most important recruiting criteria are typically technical training, certifications, and expertise. However, successful service organisations generally look beyond the technical qualifications of applicants to assess their customer and service orientation as well. Figure 11.4 shows a number of ways to go about hiring the right people 1. Compete for the Best People ● To get the best people, an organisation needs to identify them and compete with other organisations to hire them. ● Firms should act as marketers in their pursuit of the best employees ● Firms that think of recruiting as a marketing activity will address issues of market (employee)segmentation, product (job) design, and promotion of job availability in ways that attract potential long-term employees 2. Hire for Service Competencies and Service Inclination ● Once potential employees have been identified, organisations need to be conscientious interviewing and screening to identify the best people from the pool of candidates. Service employees need two complementary capacities: service competencies and service inclination. Service Competencies are the skills and knowledge necessary to do the job. ● In many cases, employees demonstrate competencies by achieving particular degrees and certifications, such as obtaining a doctor of law (JD) degree and passing the relevant state bar examination for lawyers. ● In other cases, service competencies may not be degree-related but may instead relate to basic intelligence or physical requirements. ● Given the multidimensional nature of service quality, service employees should also be screened for service inclination ● Service Inclination—their interest in doing service-related work—which is reflected in their attitudes toward service and orientation toward serving customers and fellow employees. Some employees have greater service inclination than others. ● Research has shown that service effectiveness is correlated with serviceoriented personality characteristics such as helpfulness, thoughtfulness, and sociability and that the best service companies put a greater emphasis on hiring those with positive attitudes rather than a specific skill set 3. Be the Preferred Employer To this by: Including extensive training, career and advancement opportunities, excellent internal support, attractive incentives, and quality goods and services with which employees are proud to be associated. XV. Develop People to Deliver Service Quality To grow and maintain a workforce that is customer oriented and focused on delivering quality,an organisation must develop its employees to deliver service quality. That is, once it has hired the right employees, the organisation must train and work with these individuals to ensure service performance\ 1. Train for Technical and Interactive Skills ● To provide quality service, employees need ongoing training in the necessary technical and interactive skills. ● Examples of technical skills are working with accounting systems in hotels, cash machine procedures in a retail store, underwriting procedures in an insurance company, and any operational rules the company has for running its business. Service employees also need training in interactive skills that allow them to provide courteous,caring, responsive, and empathetic service 2. Empower Employees ● Many organisations have discovered that, to be truly responsive to customer needs, frontline providers need to be empowered to accommodate customer requests and to recover on the spot when things go wrong ● Empowerment means giving employees the authority, skills, tools, and desire to determine how to best serve the customer. Employees need the knowledge and tools to be able to make these decisions, and they need incentives that encourage them to make the right ones. ● The benefits of empowering frontline service workers include a reduction in job-related stress,improved job satisfaction, greater adaptability, more creative ideas, and better outcomes for customers 3. Promote Teamwork ● The nature of many service jobs suggests that customer satisfaction will be enhanced when employees work as teams. Employees who feel supported and feel that they have a team backing them up will be better able to maintain their enthusiasm and provide quality service. ● One way to promote teamwork is to encourage the attitude that “everyone has a customer.” That is, even when employees are not directly responsible for or do not directly interact with the final customer, they need to know whom they serve directly and how the role they play in the total service picture is essential to the final delivery of quality service ● By promoting teamwork, an organisation can enhance the employees’ abilities to deliver excellent service, while the camaraderie and support enhance their inclination to be excellent service providers XVI. Provide Needed Support Systems To be efficient and effective in their jobs, service workers require internal support systems that are aligned with their need to be customer focused. The following sections suggest strategies for ensuring customer-oriented internal support. 1. Measure Internal Service Quality ● Measure Internal Service Quality One way to encourage supportive internal service relationships is to measure and reward internal service. ● One risk of measuring and focusing on internal service quality and internal customers is that employees can sometimes get so wrapped up in meeting the needs of internal customers that they forget they are in business to serve the ultimate, external customers. 2. Provide Supportive Technology and Equipment ● To do their jobs effectively and efficiently, service employees need the right equipment and technology. 3. Develop Service-Oriented Internal Processes ● An organisation’s internal processes should be designed with customer value and customer satisfaction in mind. ● An organisation’s internal processes should be designed with customer value and customer satisfaction in mind.\ XVII. Retain the Best People ● An organisation that hires the right people, trains and develops them to deliver service quality,and provides the needed support must also work to retain them. ● Employee Turnover can be very detrimental to customer satisfaction, employee morale, and overall service quality. ● Include: 1. Employees in the Company's vision 2. Treat Employees as Customers 3. Measure and Reward Strong Service Performers XVIII. Customer-Oriented Service Delivery ● Specific approaches for hiring and energising frontline workers take on a different look and feel across companies, based on the organisation’s values, culture, history, and vision. ● This approach places management at the top of the structure and (implicitly) the customer at the bottom, with customer-contact employees just above them. If the organisation’s most important people are customers, they should be at the top of the chart, followed by those with whom they have contact