Management of Service Quality Issue - Essay Example

Management of Service Quality Issue Name Institution Date Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Discussion 4 Overall approach 8 Analysis 14 Conclusion 16 References 17 Executive Summary The quality of service in the service industry is a significant aspect of successful business. Service quality entails a comparison of anticipations with performance. It is a measure of how excellently a delivered service matches the expectations of customers. Generally, customers request services at a service interface where service encounter is realized and then the service is offered by the provider and at the same time consumed by or delivered to the consumer. The major reason why service organizations should focus of quality is to meet the needs and expectations of customers whilst staying economically competitive. Managers of service organizations are on the demand to increase the profitability of organizations under increasing competition and limited resources. Customer service has been identified as a key area in which services of a certain organization can be differentiated from those of its competitors. Delivery of quality service is a key issue facing modern day managers. Because delivery of services usually involves people, management of quality services focuses on management of people, especially the interactions between the staff and customers. In order to ensure service quality, organizations are required to met or exceed customer expectations and achieve customer satisfaction. However, it is not easy to determine customer needs and expectations because tastes and preferences keep changing in the modern technological world. Introduction Quality management is very significant in the service industry. Within the modern day competitive market, the significance of delivering quality service cannot be overlooked. In order to offer services in accord to customer’s expectations, Taj palace hotel is supposed to ensure effective management of service quality. However, delivering and maintaining quality services isn’t an easy managerial task because the needs and expectations of consumers are ever changing and diverse. In addition, it is difficult to gauge parameters of quality in service organizations. Service quality is a means of managing processes so as to ensure complete gratification to the consumer at every level. It is a model that results to an increase in flexibility, competitiveness and effectiveness of an entire organization. Delivery of service quality is based on customers and employees, commitment of management and constant collaboration and improvement of all individuals involved in service delivery. This paper looks at quality service management issues at Taj Palace hotel and how service organizations are dealing with service quality management issues. Discussion Taj palace hotel managers are on the demand to increased profitability under increasing competition and limited resource. Customer service has being identified as a major region in which the products of the hotel can be distinguished from its competitors. Delivery of quality service is a major problem facing Taj palace hotel managers. It is a fundamental condition for the success of the hotel in the competitive international hospitality markets. Because delivery of hospitality services usually involves people, management of service quality center on management of individuals, particularly the interactions between staff and guests or service encounters. According to Kandampully and Sparks (2004), the success of the hospitality business of depends upon the cumulative effect of service encounters in which the hotel participates. In order to ensure delivery of quality services, Taj palace hotel must focus on its consumers. Quality is described as exceeding or meeting customer expectations and the initial goal of the company is to recognize then achieve customer needs. Therefore, quality is customer-centered and customer driven. Nevertheless, it isn’t usually simple to determine the wants of the customers because preference and tastes keep changing. In addition, the expectations of customers differ from one consumer to another. Taj palace hotel management is thus required to regularly collect information on the needs of customers through market surveys, customer interviews and questionnaires and focus groups so as to stay in line with the wants of customers (Kandampully, & Sparks, 2004). The efficiency of service quality management in Taj palace hotel is possible when managers are able to analyze and monitor customer’s demands and control, define and implement consistent improvements. This is challenging because quality is an intricate phrase, composed of numerous criteria and elements. All quality criteria or elements are equally significance so as to attain 100 percent quality and if a single aspect of quality is missed, the entire quality of service becomes impossible to attain. In modern days, quality is the outcome of the increasingly different needs of customers in the hospitality industry, as well as the greatly increasingly competition in the hospitality industry, market globalization and development of contemporary technology. Problems in measurement of service quality in Taj palace hotel emerges from the absence of measurable and clear parameters for determination of quality. Measurement of service quality is different from product service because products have measurable and specific indicators such as durability and number of faulty products, which make it comparatively simple to establish the degree of quality (Anderson & Widener, 2008). The most significant characteristics of service in the Taj palace hotel that separates them from products is the impracticability to separate consumption from production; the impracticability to store services and their non transience, material quality and heterogeneity. The impracticability to separate consumption from production along with the unfeasibility to store hospitality services at Taj palace hotel entails a concurrent consumption and production. Cronin and Taylor, (2000) note that because these services are concepts, performances or ideas other than objects, they can’t be viewed in a similar way as products and are thus described as being immaterial. In addition, it is not possible to conserve services, which brings up the issue of harmonization of offer and demand for services at the hotel. A similar form of service at the hotel is offered by diverse employees and every person offers it in his or her own manner so that heterogeneity is incorporated into the attributes of services that distinguish them from products. The quality system of service organizations is based on standards like focus on customers and employees, commitment of management and constant coo-operation and improvement of all people involved in service delivery. Managers usually listen to the variable expectations, needs and wishes of customer and are ready to effectively respond to them and have a solidly defined servicing strategy inspired by customers and transferred to employees. Managers also create and sustain a consumer friendly scheme of offering service and search for, then motivate and develop employees who are in direct contact with the customers. There are two major approaches to management of service quality. The initial approach is product oriented and technical while the other approach is customer related; approaches that have been identified as outcomes of managerial attempts to consider the element of quality when offering services. The management tends to adhere to the established standards whilst aspiring to gratify the customer (Bateson & Hoffman, 2002). The product oriented approach is inclined to constancy of service through minimizing or impeding the effect of the staff directly connected in offering the service. The process of providing service is described as an average performance and the function of the employee offering services is minimized to the insight of defined performance as well as the discretion of the staff. In this way, maximum efficiency is achieved. According to Cronin, (2003), this product based approach in the service provision process is as a result of managerial outlook of this procedure as a set of aspects that need a trained control and coordination, whilst the service is sternly standardized. However, this approach is contravenes the wishes of customers to be treated and viewed as individual persons with their own expectations and tendencies. In the consumer based approach, anticipations are the center for satisfaction. After consumption of a service, customers compare earlier anticipations with experience and results might range from dissatisfaction to satisfaction. The customer anticipates the standards of the service in his anticipations. Service quality is usually associated with perceived value, loyalty, satisfaction and trust. Perceived service quality results to satisfaction, which subsequently results to positive influence on purchase aim. Moreover, if a service firm has the goal of outperforming it competitors and gaining competitive advantages, it is vital to provide relatively superior perceived qualities especially those significant to consumers. Customer satisfaction is connected to affective responses in service encounter and consumers’ discernment of the accomplishment of the result. Hsu (2008) notes that customer gratification mediates the interrelation amid customer loyalty and perceived quality. Consumer satisfaction emerges from consumers’ superior experience and therefore, if individuals don’t get their anticipations, they will be dissatisfied. Within this context, it’s significant for managers to keep the level of service higher than the deserved expectations of the customers in order to prevent dissatisfaction. Dissatisfied consumers damage the long term profits and success of service firms as a result of the failure of consumer to go back for future transactions, decline in the consumer’s regularity of visit and pessimistic word of mouth advertisement. Thus, managers should consider improving customer satisfaction and service quality and also perceived consumer value in their service provisions. Ignorance of consumer value might result to reduced consumer satisfaction and lowered repeat business. Generally, service firms’ endeavors for improving customer satisfaction and service quality must be performed holistically, entailing value enhancement (Blomberg, 2008). Overall approach Recent advancements in technology have developed a heave in technology based self service. These developments are transforming the manner in which service organizations and customers interact. The knowledge based economy, differentiated by focus on people, virtual networks and people, along with changes of services determines shifts in the manner service firms are organized. In addition, service quality acts as a core matter for service firm’s managers. Czepiel, (2004) states that within the present knowledge based economy, management of service quality is knowledge driven and relies on the continuous development of people, sharing knowledge and ideas as well as value co-creation to achieve sustainable competitive advantage. Management of service quality, as a core part of management of services has become more significant in the knowledge based economy. Offering quality services is a hard long term strategies for the establishment of a business. In modern days, leading organizations operate on an international basis collaborating with partners, suppliers and several stakeholders so as to deliver service packages. Service providers who identify the interests and needs of their customers well are able of integrating customer knowledge into operations of the firm when promoting service intensity. This is useful for the incorporation of input of resources and relationship and also possesses a positive impact on improvement of consumer satisfaction. Thus, service quality management might be a major element for the victory of service forms in the knowledge based economy. According to Lusch et al, (2007), transformations in service quality management in the knowledge based economy have emerged from the service dominant logic in which service is viewed as a procedure. This novel approach is fuelled by the inherent rationale of doing something with and for another party, thus it is customer responsive and customer centered. The service dominant approach has several impacts on management of service quality. It involves relationships amid the service firm and its potential customers as well as joint talks with them and other associates, which results to value co-creation. In the service dominant logic, skills and knowledge are major assets for competitive advantage obtained from joint competence which enhances organizations to adapt to complex and dynamic environments. All partakers in value co-creation are dynamic and process resources, which evolve and devolve in effectiveness and scope. Ultimate value isn’t added or created by the service provider but it is co-created with the consumer and established by the consumer’s evaluation of value in utilization. Therefore, an organization can solely formulate a value proposition which is a proffer of value formation and then if its accepted by the consumer, value is co-formed. The shifts in the manner of thinking on value formation have inference s on service firms, their customers and the whole society in the logic of emphasizing the function of cooperation amid people players participating in the procedure of receiving and offering services (Lusch et al, 2007). All these shifts in the manner of thinking on value creation, service and administration of services seem to affect the practice of service quality management in the knowledge based society. The objectives of the management, relationships and schemes utilizes are all transforming. In addition, business procedures are changing as a result of communication and information technology development along with their increasing recognition in modern day life. The employment of communication and information technology in the business processes results to e-business. Therefore, e-business currently signifies novel schemes of performing business, whereby electronic network of firms makes electronic business inter-organizational actions. The performance of inter-organizational coalition and the capability of partners to form value in these networks would thus rely on their relations competence. With excellent knowledge of the way to affect their business systems, service firms could raise their outcome as well as their influence of such correlations. Fuentelsaz, et al (2002) argues that within he virtual plane, the endeavor must be directed to the study of activities that are generators or conductors of value, searching to promote and support them with the aim of maintain their value formation. Nevertheless, the same endeavor is made although the organization offers services in a conventional way. This might be significant since traditional business isn’t eliminated by electronic business. The distinct elements of the knowledge based economy permit service form to create value electronically that is a substitute, and not a hindrance, to a conventional type business. In spite of the way of offering services, nevertheless, people, who are the clients, employees, competitors and partners are linked through open networks and the management has to consider this fact. The practice and concept of service quality management thus attains a particularly pertinent role in the knowledge based society. As competition increases within the service sector, the requirement for significant competitive delineation is increased and to a larger extent, this delineation emerges from the quality of services offered to consumers. In addition, the present worldwide financial crisis creates intense shifts of management of service quality. Consumers are being confront with decline of liquidity and thus are highly selective whey they are choosing services. They look for and select services with the superior correlation between quality and price. Therefore, service quality isn’t merely an aspect of differentiation in marketplace, but is an essential factor for continued existence of service providers. The propagation of and swift advancements in technology based schemes, particularly those connected to the internet have resulted to crucial transformations in the way service organizations interact with consumers. Zeithamal (2000) notes that this tendency is well and clearly established in service industry, where providers of services are increasingly advised to secure their future success within the electronic era. Modern day winners are those who are able to overcome customer cynicism through exceeding anticipations and surpassing service encounter. These organizations are successful since they have heavily endowed for long term via identifying that service fulfillment promotes growth of customers and also maintains customer loyalty. The challenging and ever changing business environment within the financial service market has lead to increased pressure on organizations to create and use alternative delivery conduits, with the view of attracting additional customers, improving perceptions of customers and encouraging customer loyalty (Zeithamal, 2000). According to Dabholkar (2006), the latest delivery channels that banking organizations have introduced in order to manage service quality is electronic banking. Electronic banking entails provision of information on the bank together with its products through a page over the internet. It offers the consumers with the chance to have access to their bank accounts, perform transactions or purchase products online. The installation of consumer friendly technology like telephone and e-retailing services as a way of delivering conventional banking services is a common undertaking aimed at increasing market share and retaining customer loyalty. Conventional bricks and mortar banking organizations are utilizing technology to overcome the competitive challenge being posed by online banking institutions and also as a scheme of minimizing cost of offering services that were previously delivered solely by bank staff. Managers in almost all industries have an understanding that offering quality consumer service is a major strategic element in the profitability of the firm. The significance of service delivery together with its influence on improving the retention and satisfaction of consumers, improving market share and sales and promoting corporate brand cant be overstated (Dabholkar, 2006). Service quality is different from material goods quality as services are performance, deeds or efforts. Electronic services are efforts, performances or deeds whose conveyance is interceded by information technology, entailing mobile devices and Web. Such e-service entails the service aspect of, service delivery, customer service and support and e-retailing. By definition, services are easily duplicated and intangible. Dabholkar (2006) notes that they are divided high-tech and high-touch services. High-tech services are mainly based upon the utilization information technology, automated systems and other forms of physical resources. On the contrary, high-touch services are mainly dependent on individuals in the service procedure producing the particular service. Nevertheless, high-touch services also entail technology based schemes and physical resources that require be managing and incorporating into service procedure in a consumer oriented manner. According to Dabholkar (2006) technology banking and travel services entail both high-touch and high-tech services. For instance, high-tech services entail telephone, internet, and SMS whilst high-touch services comprise of personnel assistance and instructions in utilizing the services. Quality of service is distinguishable and emerges from the anticipations of consumers. Therefore, it is essential to recognize and prioritize anticipations of service and integrate these anticipations into a procedure for promoting service quality. Evaluating and implementing banking service and other forms of services offered in the service industries is a greatly intricate process. Two major aspects require to be considered when assessing service quality, which are delivery and content. Consumers might be in a good position to assess quality of delivery whilst service providers are excellent evaluators of the content of the service (Cox, & Dale, 2001). Analysis According to Cox and Dale (2001), banking and other service organizations have greatly implemented technology in service delivery as a means of augmenting services that were conventionally offered by staff. The implementation of service delivery technology leads to the need to minimize the cost of service delivery mainly via personnel and the subsequent need to overcome the challenge presented by technologically innovative competitors. Transformations in the service organizations such as those emerging from swift global networking, deregulation and the increase in personal wealth have therefore made the execution of sophisticated service delivery systems. These technology based services have led to emergence of novel service delivery alternatives available to companies, making consumer participation more broadly possible. Consumers utilize touch screen kiosks so as to order food whilst banking institutions have broadly disseminated teller machines to transfer funds, withdraw, deposit money into accounts and enquire balance. Continuous advancements in information technology have enhanced service organizations to offer services in an increasingly direct way and to amend their products to meet the needs of their customers (Bitner, 2001). The move from automation to utilization of information has provided managers with opportunities to trail the behavior of customers and respond quickly. When consumers freely select to utilize technology as a way of service delivery, the impact is greater on basis of quality aspects. Some of quality factors highly significant to customers are speed and efficiency. Cox & Dale (2001) argues that consumers have an affirmative perception of technology on basis of service attributes because technology delivers a more efficient and faster than that offered by a staff. Service quality is the extent at which service meets expectations and needs of a customer. Service quality can therefore he described as the discrepancy amid consumer expectations of the service and the perceived service. When expectations exceed performance, perceived quality is smaller than satisfactory and thus consumer dissatisfaction occurs. Service quality has the potential of delivering strategic gains like improved rates of customer retention, while also improving profitability and operational efficiency. Electronic service quality is among an organization’s competitive potential that result to good business performance. Implementation of e-services and service technology is vital in service operations because service quality influences consumer satisfaction, which subsequently influences service organizations’ financial performance. According to Moon and Fre, (2005), although implementation and use of technology in service organizations enhances service quality, it has its own setbacks. The problem with use of technology in service delivery is that it is incline to transform the moment of truth into a mechanical experience, with lack of emotion. For consumers to stay gratified, every person in the firm has to take up the responsibility of assisting the consumer. Although technology assists people to fulfill their needs more efficiently, an organization is still solely as superior as its people. The problem comes in recognizing the motivating factors of individuals and exploiting them in an appropriate manner (Moon & Fre, 2005). In spite of which service delivery conduit is utilized, the service user and service provider relationship should be taken care of at every cost. The more consumers go online to accomplish their service wants and expectations themselves, the more cost effective and scalable the business model. This connection amid business performance and service quality has propelled interest in online service, internet retailing and e-service, a concern that has additionally being driven by proof of pitiable e-service in several contexts. Therefore, business managers have been required to focus upon e-service so as to recognize the significance of using e-service as a distinguishing strategy. Managers are also required to identify that web experience presents brand positioning to the online customersand might be a significant aspect in the development of relationships and trust with consumers (Iqbal, et al, 2003). Consumer satisfaction is more significant in electronic services, since networks permit sharing of knowledge amid consumers. Hsu (2008) argues that negative experience of a consumer with the service provider may be distributed amongst several potential customers. As a consequent, having an understanding of the factors that affect online consumer satisfaction is very vital for online providers of services. A key factor is trust, which possesses a positive effect on perceived value, customer satisfaction, and customer loyalty. When consumers are not able to physically observe service quality, they have a greater level of ambiguity on the purchase result and highly vacillation in purchasing and trust can reduce the perceived hazard of utilizing a service. The production, analysis and exchange of information enhances value co-creation through permitting clients and providers to more precisely assess, negotiate and view terms of their interrelation. So as to deliver good service quality, online service providers should understand the way consumers perceive and assess their service quality (Hsu, 2008). Conclusion Management of service quality a major challenge facing modern day service organizations. In order to provide services that meet the needs and expectations of customers, organizations are required to effectively manage service quality. Nevertheless, the establishment, delivery and management of service quality are a hard task since consumer’s expectations are diverse and ever changing. In addition, the process of service delivery in organizations focuses on customers and workers, commitment of management and consistent collaboration and improvement of all individuals involved in delivery of service. Therefore, managers are required to develop and maintain a consumer friendly system of providing services and motivate employees who are in direct contact with consumers. References Lusch, F., Vargo, L, & O’Brien, M. (2007). Competing through service: Insights from service- dominant logic, Journal of retailing, (83): 5-18. Kandampully, J., & Sparks, B., (2004). 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