Running Head: HIGHER-QUALITY SERVICE How to achieve the higher-quality service product customers demand. by Lisa L. Sherman In partial fulfillment of The requirements for PCM 486: Communication Theory and Research Alverno College December 6, 2013 HIGHER-QUALITY SERVICE 2 Abstract In today’s competitive business market, and economic hardship, it is imperative for businesses to think of higher-quality service as a product. Organizations need to realize customer service is not just a department, but a way to treat customers, listen to the needs and be able to meet them. It is less expensive for an organization to keep a current customer than to gain a new one (Schneider, White, & Paul, Linking service climate and customer perceptions of service quality: Test of a casual model, 1998) When management implements a total quality management (TQM) program and provides proper effective listening training to customer service personnel, the organization will have the ability to provide a higher-quality service product customers are demanding. The focus of this research study is to explore how management can make customer service a priority and become committed to providing higher-quality service to their customers. The objective of the research will be to collect data about what customers want in higherquality service and how management can facilitate meeting those needs. The impact this research will have is the ability to show organizations that customer service is not just a position or being nice over the phone, but rather a product customers are demanding. It is determining what customers are demanding in service that will give focus to management where changes are needed for improving this product. It will also be important for management to show their commitment to both customers and employees by making the necessary changes for improving the product of higher-service quality. And continuing the process for as long as it takes to retain customers and stay profitable. HIGHER-QUALITY SERVICE 3 Table of Contents Abstract ........................................................................................................................................... 2 Chapter 1 - Introduction .................................................................................................................. 4 Chapter 2 - Review Of The Literature ............................................................................................ 9 Chapter 3 - Theoretical Framework .............................................................................................. 18 Chapter 4 - Methods Design ......................................................................................................... 25 Chapter 5 - Other Considerations ................................................................................................. 29 Chapter 6 - References .................................................................................................................. 31 Chapter 7 - Appendix .................................................................................................................... 35 HIGHER-QUALITY SERVICE 4 Chapter 1 - Introduction HIGHER-QUALITY SERVICE 5 Introduction Context In today’s competitive economic market, customers are demanding a higher-quality service product, and one aspect of this product is the ability to listen effectively to customer’s needs. In order to meet the customer’s needs, management must understand how to provide this product, and one way to facilitate meeting these needs is the implementation of a Total Quality Management (TQM) program. No matter what type of interaction, you are communicating whether listening or not listening, verbally or non-verbally. Most organizational personnel, especially customer service personnel, are expected to be adequate in all facets of communication. This may not always be the case, and sometimes the quality of service provided is inadequate. These inadequacies in communication can be attributed to the communication behaviors of both the individuals and the organization. These behaviors can affect the customer’s perception about the type of quality service provided, which may lead to customers taking their business elsewhere. In today’s global competitive market and economy where higher-quality service is demanded, it is imperative for organizations and individuals to provide the highest quality service in order to maintain customers and remain profitable. My interest in customer service is based on my current employment as Assistant to the Direct of Lifecycle Services, eGATE Administrator, and SPAC Coordinator for Krones Incorporated. I work with many types of customers from executive levels both domestically and internationally, outside sales, to internal and external customers. I through my experiences working with these various groups, I have experienced the impacts both good and bad communication can have on an organization. I have a strong value in respect, and I am a firm HIGHER-QUALITY SERVICE 6 believe that you treat people as you would to be treated. This value carries over into my communication skills over the phone and in person. The way I have chosen to propose studying how management can become committed to providing higher-quality service will be to send out questionnaires to the top twenty-five percent of current customer base, who make up eighty percent of the revenue and analyzing the information to determine where the deficiencies are, and to better understand where changes may need to be implemented. In order to continue repeat business from these customers, it is imperative to the bottom line of the organization to continue meeting the customers’ needs by providing higher-quality service. The information in upcoming chapters will cover what the literature review indicates; the theoretical frameworks I used to help create my own framework for gathering and implementing policy changes; and my method for gathering information from a customer base to gauge their assessment of the quality of service received. Statement of the Problem How can Management make customer service a priority and become committed to providing higher-quality service to their customers? The least lacking skill in today’s customer service role is their ability to listen effectively to customers. This lack of skillset has the potential of impacting organizations financially and in the retention of customers. The issue for management is how to correct these issues. The literature I reviewed to help answer my research question focused on three major areas; customer service, effective listening behaviors of customer service personnel, and Total Quality Management (TQM) programs. I chose to show how these three issues go hand in hand HIGHER-QUALITY SERVICE 7 within my research by addressing how effective listening skillsets of the customer service personnel can help meet customer demands for higher-quality service, and how by implementing of a Total Quality Management (TQM) program, top management will be able to show personnel their commitment in making customer service a priority, and make necessary policy changes to meet the needs of the customers. Some gaps within the literature pertained to the financial impacts of listening behaviors; what type of training is needed to improve listening behaviors in staff, and what type of areas management would need to focus on when implementing a Total Quality Management (TQM) program. The goal of this research would be to focus on the top twenty-five percent of an organization customer base, which makes up eighty percent of revenue. Gather information from these customers to see if their needs are being met. Review the data gather and determine where the focus should be for management to make any policy changes. Significance of the Problem Why would this research be important? This research is important because it will help all organizations become more aware of communications skillsets in employees, and how the lack of good communications behaviors, especially effective listening, can affect the ability to provide higher-quality service to customers. The research will also provide information regarding the type of quality service needs customers are looking for, and how management can better serve these needs. Why would this be a significant communication topic? This is a significant topic because this pertains to all organizations and shows how customer service quality is becoming an important business product. It is also significant because it addresses how effectiveness HIGHER-QUALITY SERVICE 8 listening, as a communication behavior, is becoming the most important communication skillset in business. Incoming personnel who do not have the skillset to provide the product customers want, the bottom line can be impacted, by how much is still unknown. The impact this research will have is the ability to show organizations that customer service is not just a position or being nice over the phone, but rather a product customers are demanding. It is determining what customers are demanding in service that will give focus to management where changes are needed for improving this product. It will also be important for management to show their commitment to both customers and employees by making the necessary changes for improving the product of higher-service quality. And continuing the process for as long as it takes to retain customers and stay profitable. HIGHER-QUALITY SERVICE Chapter 2 - Review of the Literature 9 HIGHER-QUALITY SERVICE 10 Literature Review Introduction No matter what type of interaction, you are communicating verbally or non-verbally, whether listening or not listening. Most organizational personnel, especially customer service personnel, are expected to be adequate in all facets of communication. This may not always be the case, and sometimes the quality of service provided is inadequate. These inadequacies in communication can be attributed to the communication behaviors of both the individuals and the organization. These behaviors can affect the customer’s perception about the type of quality service provided, which may lead to customers taking their business elsewhere. In today’s global competitive market and economy where higher-quality service is demanded, it is imperative for organizations and individuals to provide the highest quality service in order to maintain customers and remain profitable. But what exactly is quality customer service? Is it simply being polite over the phone? Is it treating others as you would want to be treated? Yes to all of the above, and more. Customer service has evolved into what is now being labeled as a product that many organizations are striving to provide, and customers are demanding to receive. This evolution can be compared to the teaching of the “Golden Rule” taught in Sunday school, which is to treat others as you would like to be treated. One would consider this to be the original customer service mantra. So, why would it be difficult to apply this rule in business, and provide quality service to your customers? There is a relationship between customer service personnel and their abilities as effective listeners. They go hand in hand. If the effective listening skillset of customer service personnel HIGHER-QUALITY SERVICE 11 is inadequate, the ability to provide a higher-quality service product is deficient. One way these deficiencies can be improved is the implementation of a total quality program (TQM). The areas of higher-service quality will be briefly explained in this review and will cover the following: history of customer service quality, how effective listening can impact quality service, and management’s need to implement a total quality management program (TQM). Thesis When management implements a total quality management (TQM) program and provide proper effective listening training to customer service personnel, the organization will have the ability to provide a higher-quality service product customers are demanding. History of Customer Service Quality The history of quality service in the United States emerged back in the 20th century during the Industrial Revolution when production and manufacturing produced over half of the world’s manufactured goods controlling all of the global market (Milakovich, 1995). Today, services are producing two-thirds of the U.S. GNP (gross national product), where 80 percent of the American population is now employed (Milakovich, 1995). It was not until the late 1970’s when the global market began affecting American manufacturing by the higher-quality produced products being provided. This caused concern in the industry, and in order to face these challenges to provide consumers better quality service, managements began exploring quality programs to implement. It was in the 1980’s that organizations began to review their customer service quality, which started various initiatives for quality programs. But what types of quality is being reviewed? Some ways quality service is being reviewed is the way customer service personnel are communicating with customers. HIGHER-QUALITY SERVICE 12 How Effective Listening can Impact Quality Service When we think of communicating to customers, it is often thought of as how well one can verbally communicate over the phone. And in today’s service industry, the majority of customer contact is through the phone, and one very important element of communicating, which is often the least understood and most used, is how to listen effectively (Ramsey & Sohi, 1997). Several studies (Hunt & Cusella, 1983; Wolvin & Coakley, 1991) identify listening as the most important communication skill, which is lacking in personnel and considered the most important in career competence. Ineffective listening has the ability to impact the bottom line, which is reported to cost American business billions (Ramsey & Sohi, 1997). Other studies (Ramsey & Sohi, 1997; Schneider, White, & Paul, 1998) have shown a customer’s perception can be influenced by ineffective listening, which may cause them to take their business elsewhere. “It is less expensive for an organization to keep a current customer than to gain a new.” (Schneider, White, & Paul 1998) In an article from the Journal of the Academy of Marketing Science, a study was done on the listening behaviors of car sales people. Three components of listening were identified in order to construct a higher-order of listening. They are as follows: sensing, evaluating, and responding (Ramsey & Sohi, 1997). Sensing was the initial response of hearing the customer; evaluating was the listening component in which the salesman would assign a meaning to what was being heard; and responding was the response to further the communication process with customers (Ramsey & Sohi, 1997). These three components are similar in nature to the HURIER model which is: to HIGHER-QUALITY SERVICE 13 hear, understand, remember, interpret, evaluate and respond (Brownell, The HURIER model: A behavioral approach, 2013). This study identified how showing good listening behavior towards customers can positively impact the customer’s feelings of trust and respect, giving them a sense their needs are being fulfilled. Although this study was explored using car sales people, the theory of showing good listening behaviors towards customers can be used in all levels of an organization. One problem for organizations regarding effective communication is that not all employees are armed with the skillset to provide the quality of service required by customers, which can negatively impact the profitability and retention of customers. The question is how to train the employees who lack the skillset? Several studies (Hunt & Cusella, 1983; Wolvin & Coakley, 1991; Cooper, 1997) have identified there is concern in organizations about how to properly train employees to be effective listeners. There are also factors affecting the ability to listen effectively. Some employees may have a physical defect, which can affect their hearing, causing some of the elements of the HURIER model to be missed. Other employees could be experiencing listening distractions or have listening barriers that need addressing. All of these negative listening behaviors can be addressed through training programs that bring awareness of how effective listening can impact the company, and how to change. But how can organizations change the quality of listening provided to customers? Management Needs to Implement Total Quality Management (TQM) Programs In order to better answer how organizations can change the quality of service provided to customers, understanding that service has become a tangible product is the key. And providing a higher-quality service product to customers has become one of the most critical issues facing HIGHER-QUALITY SERVICE 14 executives. All companies are competing on their ability to provide quality service (Zeithaml, Parasuraman, & Berry, 1990). Several studies have identified customers are now demanding higher-quality service, and organizations are continually making revisions to their policies in order to meet these demands (Lash, 1989; Zeithaml, Parasuraman, & Berry, 1990; Milakovich, 1995; Schaaf, 1995). Management continues to be mindful of providing quality service to existing customers and how their business can impact profits. Because today’s customers are demanding quality in products and service, the implementation of total quality programs (TQM) into business has become a challenge for management. Business practices to focus on implementing continue to be a struggle (Sureshchandar, Rajendran, & Anantharaman, 2001). Total quality management (TQM) programs have been part of U.S. companies who share in the global market. TQM programs have been around since the 1980’s. Due to the competitive onslaught of Japanese companies, they first began in the manufacturing setting (Beer, 2003). It wasn’t long after that service oriented companies began adopting TQM programs to try improving higher-quality service being provided and maintain profitability (Beer, 2003). The success and failure of a total quality management (TQM) program is solely dependent on the commitment level of top- management (Sureshchandar, Rajendran, & Anantharaman, 2001; Beer, 2003). They have the ability to be the driving force behind whether or not a program takes hold in an organization. In a study by Michael Beer, he indicates there are many reasons TQM program can fail. One way is in the culture of the organization, and the views of TQM philosophies in how responsibilities of authority can be switched between levels of management. Beer identifies four deficiencies in sustaining a TQM program are as follows: HIGHER-QUALITY SERVICE 15 The capacity of senior teams at corporate level to develop commitment through dialogue and what to implement The capacity of senior team to follow up with initial commitment The capacity of senior team to create an honest organization wide conversion about the effectiveness of TQM The managerial capabilities must exist in all subunits of the corporation If any one of these is deficit, the ability to effectively implement any type of TQM program in an organization will cease. Any future change will be more difficult to implement, and will lack the support from employees, which could ultimately result in an organization losing customers and potential profits. Beer also identifies that TQM programs can become successful over time starting at top management and their ability to instill a clear and concise strategy and have the ability to communicate this strategy and commitment throughout the organization. In order to effectively implement quality management programs, educating the frontline customer service employees on how to listen effectively is imperative. The least lacking communication skill identified for incoming employees was their ability to listen. The challenges that faced trainers, was how to train employees to become competent listeners. “Listening training programs, however, are often based upon faulty assumptions about effective listening rather than appropriate research data (Cooper, 1997). Another challenge that faced trainers was that training budgets did not always allow for listening training. For organizations that did not budget for any training, they identified listening as a “low priority” (Wolvin & Coakley, 1991). HIGHER-QUALITY SERVICE 16 Total Quality Management (TQM) Programs and Customer Service Several studies indicate the need for management to implement a TQM program, and how these programs would either succeed or fail (Waldman, 1984; Sitkin, Sutcliffe, & Schroeder, 1994; Sureshchandar, Rajendran, & Anantharaman, 2001; Beer, 2003). These two topics, customer service and TQM, are related by how they interact with each other. One is dependent on the other in the success and/or failure of providing higher-quality service to customers. Customer Service The literature identifies customer service as the nerve center of any organization (Blanding, 1991). The customer service role is identified as the frontline of any company and it must be multi-faceted in the communication skillset to deal with various types of customers. There is a constant need in business to keep evaluating their philosophies and methods to keep current with the demands of customers (Schaaf, 1995). Today’s customers’ are demanding the highest quality of service and are willing to pay more for better service, as long as they feel their needs are being met. Effective listening was identified as the most critical skill lacking in today’s workforce (Hunt & Cusella, 1983). The cause of this was the lack of education on how to listen effectively. There seems to be a gap between what is being taught in academia and what is being expected in business. There is a need for further research on effective listening. The question is where to begin. Some areas of suggestion would be: What types of training are needed to offer employees opportunities to become more effective listeners? What types of effective listening should be taught? How can effective listening play a vital role in a total quality management HIGHER-QUALITY SERVICE 17 program? And how can training employees on the importance of organizational listening impact the bottom line? Total Quality Management (TQM) Programs To remain competitive in today’s global market, U.S. Companies need to implement some form of total quality management (TQM) programs. The issue facing management remains, how to begin? The literature offers many models to help guide the start of total quality service (TQS) programs, which are components of the TQM programs (Sureshchandar, Rajendran, & Anantharaman, 2001). The literature also identifies some of the failures which cause a TQM program to fail (Sureshchandar, Rajendran, & Anantharaman, 2001; Beer, 2003). The lack of commitment from management, and the inability to communicate their vision to the company are the main causes for failure. The literature also identifies how TQM programs can become successful by the commitment level of management to see it through. Conclusion If organizations want to meet the demands of customers wanting higher-quality service, changes need to take place. Changes such as: providing proper training programs on becoming effective listeners; understanding the demands of customers and how to provide a higher-quality product; developing a total quality management (TQM) program tailored to the needs of the company, and being committed to implementing and supporting personnel through the whole process. HIGHER-QUALITY SERVICE Chapter 3 - Theoretical Framework 18 HIGHER-QUALITY SERVICE 19 Theoretical Framework Introduction When people have a belief about how something works, they usually define it as a theory. By definition, theory is an abstract system of concepts and their relationships that help us to understand a phenomenon (West & Turner, 2010). When we think about organizations and how they operate, not much thought is given to what theoretical framework is being used. What people may not realize is that theoretical frameworks are being used daily by both individuals and organizations. I will identify three Theoretical Frameworks and how their concepts help to explain my research question of “How can Management make customer service a priority and become committed to providing higher-quality service to their customers?” The frameworks I used to show how they related with my study were: Structuration Theory, Organizational Culture Theory, and Organizational Information Theory. All three of these theories share a common theme relating to organizational culture. Social structures, shared symbols and communication processes are all elements of these theories. If one theory should incur any type of change the ripple effect felt within the organization disrupts the overall culture, which can be either viewed as positive or negative depending on personnel. I will briefly explain the relationship these theories have to my own theory, which helped me create my own theoretical framework called Interlocking Theory, which is based on common themes from each theory. Some of the questions I will be answering throughout the paper will be: How do the theories relate? How does my framework work? What does it explain? What does it leave unanswered? HIGHER-QUALITY SERVICE 20 Structuration Theory This Structuration Theory deals mostly with the social system or culture within an organization and how each person understands their pattern of behavior within that social structure. When organizations create new structures, or rules, these structures have the ability to impact, good or bad, the way of life for employees within these social systems. Another structure that is created with this theory is the power structure. The power structure is what guides the decision making within organizations. One downfall with this theory would be the lack of communication when decisions have been made. The reason I chose to use this theory is how it relates to creating structure or rules. Structures within an organization are usually created from the top level, and one way I discuss organizations achieving high-quality service is to implement a Total Quality Program (TQM), which begins with management. TQM programs have the ability to establish rules and guidance of communication that can help an organization achieve great quality. Total Quality Management (TQM) programs can help provide employees with communication structures and guidelines. With these structures and guidelines, employees can cultivate a culture of communication to provide higher-quality service customers are demanding. With new communication structures in place, over time they can help people understand their behavioral patterns and point out any deficiencies that can be addressed and corrected through organizational training programs. Organizational Culture Theory This Organization Theory deals with shared symbols within an organization that provide meaning, which affects all employees. There are three forms of symbols which have a unique meaning. They are: physical, behavioral, and verbal. Physical symbols identify the logo and HIGHER-QUALITY SERVICE 21 décor of an organization. They are usually the material objects, which can also be visual. Behavioral symbols are those which are usually internal in nature, such as ceremonies, traditions, or rewards. Verbal symbols are described as company jargon, stories, or anecdotes. All of these symbols help to create organizational culture. If one is changed, it can impact the company values and social systems. The reason I chose to use this theory with my theory is how closely it relates to the culture of the company that can be influential to all employees, and how employees adapt to the culture to form a communication. This can be relevant to all employees by demonstrating how employees adapt into the culture of a Total Quality Management (TQM) program by learning better listening behaviors, wanting to provide higher-quality service, and learning the shared meaning behind new values to maintain the sense of community within their social structure. Organizational Information Theory The Organizational Information Theory is how organizations gather information and make sense of any ambiguous meanings. The main focus of this theory is the process of communication. A key point with this theory is how the information gathered can sometimes have more than one meaning, which is called equivocality. Organizations must filter through the equivocality of these meanings in order to find the importance. This theory has four guidelines in place when reviewing the information: duration, personnel, success, and effort. Duration refers to the least amount of time used to make a decision. Personnel identifies the most knowledgeable people should resolve the equivocality of the information. Success is the process of using past information in reducing equivocality. Effort identifies coming to a decision about the equivocality with the least amount of work. HIGHER-QUALITY SERVICE 22 There are also five types of cycles, or communications behaviors, used to reduce the equivocality. They are: act, response, adjustment, feed-back, double interact loops. These behaviors allow organizations to react accordingly to all equivocality of information being received before making any judgments that could impact the organization. The reason I chose to use this theory with my theory is how it is related to the process management would use in deciding whether or not to implement a Total Quality Management program (TQM) to help provide higher-quality service. The guidelines established in this theory outline the process for gathering information from outside sources, and then applying that information obtained to help build a TQM program tailored to the needs of the organization. Interlocking Theory The Interlocking Theory (Appendix A) consists of incorporating concepts from each of the three theories: Structuration Theory, Organizational Culture Theory, and Organizational Information Theory. I used components from each of the three to help create a model of how organizations create a cycle of change in order to achieve higher-quality service. The first step in my model is the information gathering process. This is a component from the Organizational Information Theory that involves gathering information from various sources such as: customer feedback, surveys, internally, or from market competitors. The second step in the model is management reviewing information. This is also a component from the Organizational Information Theory that identifies guidelines which can help management review information received from outside sources for clarity and understanding. The third step in the model is creates new policies. This is a component from Structuration Theory which incorporates the concept of creating structures. The policies that are HIGHER-QUALITY SERVICE 23 chosen to implement can have the ability to impact the social systems or cultures within any organization. The final step in the model is implements new policies/rules. This step incorporates components from both the Structuration Theory and Organizational Culture Theory. The process of implementing new policies/rules is a component taken from the Structuration Theory. The concept from the Organization Culture Theory is an end result of the effect the new policies/rules have on the landscape of the organization. These new policies/rules implemented can affect shared symbols of the organization affecting the culture and social systems of the organization. There are blocking filters which can prevent this theory from working. Blocking filters such as: breakdown in communication, lack of commitment from management, not doing anything with the information received from outside sources, not being able to gain clarity on the information being reviewed, lack of commitment by the employees. But when all of the steps within the Interlocking Theory are applied, organizations have the ability to make changes. The Interlocking Model, for the purpose of my theory will help in the process of implementing a Total Quality Management program (TQM). I’ve identified four strong components from three Theoretical Frameworks. When used together, a course of action for any organization wanting to make a change can be defined. HIGHER-QUALITY SERVICE Interlocking Method Framework 24 HIGHER-QUALITY SERVICE 25 Chapter 4 - Methods Design HIGHER-QUALITY SERVICE 26 Method Structure Context In today’s competitive business market, and economic hardship, it is imperative for businesses to think of higher-quality service as a product. Organizations need to realize customer service is not just a department, but a way to treat customers, listen to the needs and be able to meet them. It is less expensive for an organization to keep a current customer than to gain a new one (Schneider, White, & Paul, Linking service climate and customer perceptions of service quality: Test of a casual model, 1998). The focus of this research study is to explore how management can make customer service a priority and become committed to providing higher-quality service to their customers. The objective of the research will be to collect data about what customers want in higher-quality service and how management can facilitate meeting those needs. Sample The sampling of data will be from the top 25% of current customer base, who make up 80% of revenue. To continue repeat business from these customers, it is imperative to the bottom line of the organization to have the ability to continue meeting the customers’ needs by providing higher-quality service. Measurement & Data Collection Methods There will be multiple methods of measurement used for collecting data. The first method will be to send out customer questionnaires, in both mailing and email formats, to the current top 25% of customer base. The customer questionnaire will consist of the following questions: How is our quality of service? How would you rate our quality of customer service? Do you feel your needs are being met? Do you feel satisfied with our ability to listen to you HIGHER-QUALITY SERVICE 27 needs? Are you satisfied with our product and anticipate future interactions with our organization? Are there areas we can improve? The second method of measurement will be to send out an employee questionnaire to gauge their perceptions of their quality service skills. The questionnaire will consist of the following questions: Do you feel your effective listening skills are adequate? What area of communication would you like further training in? What is the most frequent complaint heard from customers? The third method for collecting data will be to use two members of the customer service department to conduct telephone interviews with the current 25% of customer base. A standard list of interview questions will be created allowing the interviewees to conduct a consistent phone interview with each customer. Schedule The Interlocking Model (Appendix A) will be used as a guideline to help management determine a course of action from the information gathered from the customer and employee questionnaires and phone interviews. The timeline for each area of the model will be as follows: Information gathered: three months for collection of data Management review information: three months for data analysis Creates new policies: three months to create new policies to better serve the customer’s needs Implements new policies/rules: three months to implement these policies. One year after any new implemented policies, the same questionnaire with the addition of questions on performance, will be sent to the same customer base to gauge how effective the new HIGHER-QUALITY SERVICE 28 policies are working, and to see if any new changes are needed in continuing meeting the customers’ needs. Budget Considerations The budget considerations for the proposed research would be estimated at $12,800.00. Breakouts are as follows: 2 Customer Service reps to conduct phone interviews for two weeks: Printing and mailing $2,400.00 $200.00 Organization of data gathered $1,200.00 Management review data $8,000.00 HIGHER-QUALITY SERVICE Chapter 5 - Other Considerations 29 HIGHER-QUALITY SERVICE 30 Other Considerations Assumptions Assumptions with this proposal would be: the poor skillset customer service personnel have in effective listening, and that training needs to be given to improve communication skillsets. The assumption with training is that there would be money budgeted for training. An assumption about customers would be that they are not happy with the quality of service being provided. The last assumption would be that changes need to be made and that there is a commitment level by management to implement necessary changes. Limitations of the Study Limitation of the study could be on the population of the customer base of the organization being to a small, which could prohibit the amount of sufficient data gathered in order to make any assessments for changes in policies. Budgetary issues could be another limitation on the study. Biases Some biases to the study could be the preferential treatment given to certain customers based on their level of business given to the organization. Other biases could be the relationships built over the years between customers and customer service personnel, and providing these customers with better service than others where the relationship may not be as good. Ethical Implications Some ethical implications could be the values of employees compared to those of the organization, and how they may not buy into the program implemented by management in how to provide higher-quality service to customers. Other ethical implications could be that employees don’t want to change and will continue to think they are providing adequate service. HIGHER-QUALITY SERVICE 31 Chapter 6 - References HIGHER-QUALITY SERVICE 32 References Beer, M. (2003). Why total quality management programs do no persist: The role of management quality and implications for leading a TQM transformation. Decision Sciences, 34(4), 623-642. Blanding, W. (1991). The critical communications role of the customer service department. New York, NY: AMACOM. Brownell, J. (1990). Perceptions of effective listeners: A management study. The Journal of Business Communications, 401-415. Brownell, J. (2013). The HURIER model: A behavioral approach. In J. Brownell, Listening, attitudes, principles, and skills (pp. 52-53). Upper Saddle River, NJ: Pearson. Cooper, L. O. (1997). Listening competency in the workplace: A model for training. Business Communication Quaterly, 60(4), 75-84. Czepiel, J. A., Solomon, M. R., & Surprenant, C. F. (1985). The service encounter: Managing employee/customer interaction in service business. Lexington, MA/Toronto, Canada: D.C. Heath and Company. Hunt, G. T., & Cusella, L. P. (1983). A field study of listening needs in organizations. Communication Education, 32, 393 - 401. Lash, L. M. (1989). The complete guide to customer service. New York, NY: John Wiley & Sons, Inc. Milakovich, M. E. (1995). Improving quality service: Achieving high performance in the public and private sector. Delray Beach, FL: St. Lucie Press. Powell, T. C. (1995). Total quality management as competitive advantage: A review and empirical study. Strategic Management Journal, 16(1), 15-37. HIGHER-QUALITY SERVICE 33 Ramsey, R. R., & Sohi, R. S. (1997). Listening to your customers: The impact of perceived salesperson listening behavior on relationship outcomes. Journal of the Academy of Marketing Science, 25(2), 127-137. Rust, R. T., & Zahorik, A. J. (1993). Customer satisfaction, customer retention, and market share. Journal of Retailing, 69(2), 193-215. Schaaf, D. (1995). Keeping the edge: Giving customers the service they demand. New York, NY: Penguin Books USA Inc. Schneider, B., White, S. S., & Paul, M. C. (1998). Linking service climate and customer perceptions of service quality: Test of a casual model. Journal of Applied Psychology, 8(2), 150-163. Schneider, B., White, S. S., & Paul, M. C. (1998). Linking service climate and customer perceptions of service quality: Test of a casual model. Journal of Applied Psychology, 8(2), 150-163. Sitkin, S. B., Sutcliffe, K. M., & Schroeder, R. (1994). Distinguishing control from learning in total quality management: A contingency perspective. Academy of Management Review, 19(3), 537-564. Sureshchandar, G. S., Rajendran, C., & Anantharaman, R. N. (2001). A conceptual model for total quality management in service organizations. Total Quality Management, 12(3), 343-363. Tax, S. S., & Brown, S. W. (1998, October 15). Recovering and learning service failure. Retrieved September 9, 2013, from MITSloan Management Review: http://sloanreview.mit.edu/article/recovering-and-learning-from-service-failure/ HIGHER-QUALITY SERVICE 34 Waldman, D. A. (1984). The contributions of total quality management to a theory of work performance. Academy of Management Review, 19(3), 510-536. West, R., & Turner, L. H. (2010). Intoducing Communication Theory - Analysis and Application. New York: McGraw-Hill. Wolvin, A. D., & Coakley, C. G. (1991). A survey of the status of listening training in some fortune 500 corporations. Communication Education, 40, 152-164. Zeithaml, V. A. (2000). Service quality, profitability, and the economic worth of customers: What we know and what we need to learn. Journal of Academy of Marketing Science, 28(1), 67-85. Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1990). Delivering quality service: Balancing customer perceptions and expectations. New York, NY: The Free Press. Zemke, R. (1989). Operating principle #1: Listen, understand, and respond to customers. In The Service Edge: 101 Companies That Profit from Customer Care (pp. 29-36). Canada: Penguin Books Canada Limited. HIGHER-QUALITY SERVICE 35 Chapter 7 - Appendix HIGHER-QUALITY SERVICE 36 Article Summary Zemke, R. (1989). Operating Principle #1: Listen, understand, and respond to customers. In the service edge: 101 companies that profit from customer care (pp. 29-36). Canada: Penguin Books Canada Limited. DESCRIPTION The author of this article identifies that careful listening to customers is the top priority in business. He indicates four reasons to listen to customers: to understand, keep tabs on the market, hear unexpected ideas customers may have, and to involve the customer in the business. The article also identifies ways to listen: face to face, formal research, frontline contact, customer hotlines, comment and complaint analysis, consumer advisory panels, and mutual education. All of these areas will be great components to further elaborate on when dissecting the art of effective listening to customers. CONNECTIONS One of the areas of communication that was part of my focus was the effective or ineffective impact customer service communication may have on a business. This area of listening fits in perfectly with my focus as it identifies another facet of communication all Customer Service representatives need to be cognizant of, but may not be aware of how not listening can impact business. EVALUATION This information will be useful to my research because it identifies another area of communication I think a lot of people forget about, effective listening. This will also be useful as it targets the impact it has on business through customer service. HIGHER-QUALITY SERVICE 37 Article Summary Blanding, W. (1991). The critical communications role of the customer service department. In Customer Service Operations: The Complete Guide (pp. 193 - 223). New York, NY: AMACOM. DESCRIPTION The author of this article identifies how critical a role customer service plays in the communication process with customers. Customer service in this chapter is identified as the “nerve center” of a company. The author then goes onto to explain two critical areas of communication, quality and efficiency/effectiveness, are measured within a customer service department. CONNECTIONS I’m not sure how useful this article will be after reading some of the context. The majority of the information in this chapter dealt with some of the different facets of media communication used to communicate with outside customers through the customer service department. Media such as hard copy, business cards, mass mailing, advertisements, forms and form letters, and making public announcements. Although when I reviewed my theory, there may be some useful information within this chapter to support how effective these forms of communication can or cannot be when sent through the customer service department. EVALUATION Although at first I’m not sure how useful this chapter’s information will be within my research, after thinking about it, I may find some use for the various forms of communication through media can affect customers if not created properly the first time. The first impression is the most important and if it’s not communicated correctly this could negatively affect a business. HIGHER-QUALITY SERVICE 38 Article Summary Schaaf, D. (1995). Keeping the edge: Giving customers the service they demand. New York: Penguin Books USA Inc. DESCRIPTION The author of this book went to revisit the companies he wrote about in 1989, The Service Edge: 101 Companies That Profit from Customer Care, to see what strategies have changed or remained in providing quality service. The author indicates there are many variables to be accounted for when trying to provide quality service in an ever changing market, and revisions to policies and methods are needed to stay current with customers’ demands. CONNECTIONS This book will offer a lot of great resources for me to tap into to find out some of the various ways customers are demanding customer service and how companies educate the front line of customer service with how to properly handle issues that may arise to remain profitable. EVALUATION I believe this book will be beneficial for research in writing my paper. This book offers a timeline into how customer service functioned in the 80’s compared to the 90’s. This information will show the trend in businesses changing some of their strategies to fit the customer demands. Article Summary Lash, L. M. (1989). The complete guide to customer service. New York: John Wiley & Sons, Inc. HIGHER-QUALITY SERVICE 39 DESCRIPTION The author of this book had a lot of great insight on how to make customer service a priority and to become committed to providing exceptional service. She pointed out how many companies don’t realize they have a crisis until they break it down into dollars and realize the affect poor customer service can have on the profits. CONNECTIONS This was a great resource as it was able to break down the different levels within an organization and how each one of them can work on their customer service skillset and tools to help them become more effective in provide exceptional service. She also indicated how the importance of customer service has grown because now customers have realized they have choices to either continue to buy from poor service or try and shop around for good service. EVALUATION This book is going to a really great resource because it will help me to talk about the many ways a company can invest in providing good customer service and by doing so help the bottom line. Article Summary Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1990). Delivering quality service: Balancing customer perceptions and expectations. New York: The Free Press. DESCRIPTION The authors of this book address three specific questions in their research: What is Quality Service? What is causing service-quality problems? What can organizations do to solve these problems and improve their service? They go through what customers are expecting from quality service and how these expectations can change over time. They also touch on how businesses can anticipate these changes and put measures in place to accommodate. They also HIGHER-QUALITY SERVICE 40 introduce a groundbreaking model of five attributes of quality service – reliability, empathy, assurance, responsiveness, and tangibles – which companies sometimes over promise in these areas. CONNECTIONS All three questions these authors introduce pertain to my thesis question of “How does good/bad customer service communication affect external customers for a business?” The information they present in this book directly correlates to my question, and they offer some helpful insights to how to remedy this issue between the different layers of a business from frontline, managers to executives. EVALUATION This book will help provide different areas of focus on how I can demonstrate the importance of good quality service and how management and implements tools to help guide personnel to focus on providing great service to customers. Article Summary Tax, S. S., & Brown, S. W. (1998). Recovering and learning service failure. MITSLoan Management Review. DESCRIPTION This article was a quick read on how companies need to develop service-recovery strategies. By implementing these recovery strategies, customer relations and loyalty remain. The authors of this article point out that the vast majority of companies don’t take advantage of the learning opportunities service failures present. HIGHER-QUALITY SERVICE 41 CONNECTIONS I think the article will offer some key points on how the strategies will help businesses maintain customer loyalty by identifying where the failures are and examine recovery practices to implement. EVALUATION Some good key points on service recovery and if a business is committed to practicing the recovery processes they can maintain a customer loyalty base which will continue to help in the profitability of an organization. Article Summary Milakovich, M. E. (1995). Improving quality service: Achieving high performance in the public and private sector. Delray Beach, FL: St. Lucie Press. DESCRIPTION The author of this book, a Professor of Business Administration specializing in the area of quality, has identified the essential elements and design systems that will best fit one’s customer base. He wrote a chapter on theories that will help guide in Quality Improvement efforts. He’s also identified ways to increase quality in human resources through participating and training. There are additional chapters on how to encourage, increase, monitor, and manage quality improvements within an organization within the others areas. He concludes by talking about the lessons learned and the leadership skills needed to change internal organizational systems to sustain continuous process improvements. CONNECTIONS This book is going to quite helpful in helping me continue to identify the areas where quality improvement is essential for an organization, and the steps required to implement and develop HIGHER-QUALITY SERVICE 42 these systems. Specifically customer service and the impact effective listening can have towards customers. EVALUATION I was really impressed by the information in the preface of the book the author identified as areas he will be covering and the amount of information he is able to provide. The book’s main audience is from a managerial perspective, so they can learn how to implement these systems, theories and practices to help achieve higher-quality. He identifies that customers are looking for higher quality in business today especially now that we’ve become such a global market. Article Summary Cooper, L. O. (1997). Listening competency in the workplace: A model for training. Business Communication Quaterly, 60(4), pages 75-84. DESCRIPTION The author of this article identifies that listening is a desirable skill in organization setting. The challenges faced with trainers, is how to properly train employees to become competent listeners. The article also indicates that listening training programs are often based on faulty assumptions about effective listening rather than definitive research data. The article also indicates there is concern for the incoming working in the coming decades that the vast majority of individuals entering the American organizations will not have any formal training on listening. This article introduces a comprehensive model complied over a 10 year study and explores the implications of the research for staff training and organizational development. Research cited within this article (Witkin 1990), there are three biases regarding listening: that listening is a unitary concept, that listening is a cognitive rather than behavioral skill, and that listening is a linear act. HIGHER-QUALITY SERVICE 43 CONNECTIONS After changing my research question to, “How can Management make customer service a priority and become committed to providing exceptional quality to their customer?” I needed to incorporate areas potentially affecting customer service, and effective listening was an area of communication deficient within organizations. This article was helpful because it talks about the biases of listening by employees who feel they don’t have a listening problem. It also talks about challenges trainers face when implementing listening programs, as they are not always successful because of communication behaviors by some employees. The article also mentions for on-the-job training to become successful organizations need to promote a culture of learning. EVALUATION There’s good information within the article which will be useful when I’m addressing why additional research should be conducted on why management should be committed to implementing quality programs, and how training is a good beginning Article Summary Ramsey, R. R., & Sohi, R. S. (1997). Listening to your customers: The impact of perceived salesperson listening behavior on relationship outcomes. Journal of the Academy of Marketing Science, 2(2), pages 127-137. DESCRIPTION The article talked about a study performed on the listening behaviors of salespeople, and the impact of customers’ perceptions of the salespeople’s listening behavior on trust, satisfaction, and anticipates of future interactions. It also briefly identifies how poor listening is costing American business billions of dollars. It talks about a salesperson listening model, which is similar to that of the Interactive Listening Model introduced by Alverno. The article identifies HIGHER-QUALITY SERVICE 44 the perception by customers that feel if they are being listened to they are building a bond of trust with the sales person. The findings from this study identify a need for training for active listening. CONCLUSION Although the article was focused on the perspective of a salesperson’s communicative skillset, the theories and models associated with these skills can still be incorporated into any business. All customers are unique in the style of communication, having the tools listen effectively may help impact the customer’s perception of you and your organization. EVALUATION The information from this study is useful in any organizational setting. Although the focus of the article was on the listening behaviors of car salespeople, the theories and listening models identified can also be applied to all companies in order improve quality service to their customers. Article Summary Sureshchandar, G. S., Rajendran, C., & Anantharaman, R. N. (2001). A conceptual model for total quality management in service organizations. Total Quality Management, 12(3), pages 343-363. DESCRIPTION The authors of this article performed a study which identifed the dimensions of Total Quality Service (TQS) as being critical for effective implementation of quality management in service organizations. The article talks about how customers are now demanding quality in products, service and life. One approach to a solution is in change in philosphy with management is to implement Total Quality Management (TQM). The article also talks about how companies are HIGHER-QUALITY SERVICE 45 spreading into the global market and how TQM will provide potential solutions to businessrelated problems, but that there remains a problem with implementation of the program from management. CONCLUSION This study was very intense and long. I did find some interesting information with regards to no two TQM programs are identical. Each organization would need to implement one tailored to their needs of quality they want to provide. Top management would be the decision making factor in which ones to implement. This article also identified 12 dimensions of TQS which are critical to the TQM environment. It also indicates that TQM programs will only work if all are on board with the program. Top management is the catalyst in driving this program. EVALUATION Although the information of this research was extensive, there was a lot of great information on on TQS and TQM programs. Information such as the 12 dimensions and what each of these roles plays in the TQM environment. All of this information will be useful when writing my proposal to show how the forward trend in global markets is to implement a TQM program. Article Summary Hunt, G. T., & Cusella, L. P. (1983). A field study of listening needs in organizations. Communication Education, 32, 393 - 401. DESCRIPTION The authors of this article performed a field study on the listening needs in organizations. Their study conclusion indicated that training directors indicate there is inadequate listening skills and lack of listening training for employees. According to training managers, poor listening was identifed as one of the most important problems in organizations, and that ineffective listening HIGHER-QUALITY SERVICE 46 leads to ineffective performance and productivity. Hunt suggests listening is the most important of all communication skills. CONCLUSION Another great article to help support my research question in how management can becoem committed to improving the quality it gives to their customers. IF they are committed to improving the listening quality of their employees the financial impact will become decreased and customer satisfaction increased. It also identifies how there should be more research done on the importance of effective listening in organizations. EVAULATION There was a lot of great models of listening supplied within this article. Some of which I can compare to the ILM and theories within the text book. Article Summary Wolvin, A. D., & Coakley, C. G. (1991). A survey of the status of listening training in some fortune 500 corporations. Communication Education, 40, 152-164. DESCRIPTION The authors of this article performed a study surveying training directors of Fortune 500 coporations to gauge how many of them offer any type of listening training. The findings of the study our detailed in this article. However, it was pointed out that majority of the training is being centered on managers and supervisors, while less than 5% if being given to personnel. It was also mentioned while companies indicate listening is important, it was listed as a major oart of the training budget. Less than 5% of funds are budgetted for such training. The article concluded by indicating the findings of their survey support several suggestions for future HIGHER-QUALITY SERVICE 47 research, which will assist teachers, trainers and consultants in organizations to become more prepared to offer productive listening courses. CONCLUSION This article will help with supporting the importance of effective communication and how organizations are focusing training efforts on proving training to their employees. However, this article shows how companies may only be focusing on training their managers and superviors more so than the frontline personnel. This will help me raise questions within my proposal asking if management is truly committed to trianing all employees equally. EVALUATION: Although the article was written in 1991 the research is still valuable in providing key points to how management needs to be diligent in training their employees to be effective listeners. The article, and others similar, have identifed effective listening as one of the most important communication tools. This information will help me to support my proposal that in order to be committed to providing quality service, training employees to become effective listeners is vital to the success of the organization.