Implications for Customer Relationship Management - Assignment Example

When frontline employees face ethical dilemmas: Implications for customer relationship management Introduction Customer Relationship Management (CRM) is a strategic process dealing with customer-focused business to develop competitive advantage in an entrepreneurial endeavor. The process involves integration of concepts about people, processes, and technology in a sustained endeavor to understand customer needs (Bull, 2003). It is balanced with ethical standards. This assignment aims to (a) develop knowledge and understanding about customer relationship management theory; (b) learn experiential accounts how customer relationship is strategized when fronted with ethical dilemma; (c) to analyze issues from several perspectives, and (d) draw the relevance communication in building relations. Nurturing Customer Relations Customer relation is imperative in business management. Experts posit that its effectiveness depends on top management’s commitment to exemplify leadership, strategic direction, and entrepreneurial goals (Cap Gemini and International Data Corporation, 1999). Business managers conjectured that customer-focused model demand management to train and improve workers’ skills and knowledge on customer relations. It is essential to motivate them and to become more responsive and sensitive to customer needs and behaviors (Chen & Popvich, 2003). It improves performance management skills and reduces some unnecessary protestation or disagreements. Reward and incentive program and team-building can also increase workers’ commitment to perform their tasks well (Chen & Popvich, 2003). The management must also use the driver for changes to be adaptive with trends, like the use of information technology to reach home-based customers and to develop database on purchases made and products or services consumed (Chen & Popvich, 2003). The latter could help understand customers’ needs, wants and what products they like (Chen & Popvich, 2003) so that management can re-engineer the values of customer service and re-strategize to earn customer loyalty. Modern businesses nowadays adapt Data Warehouse Technology and Enterprise Resource Planning (ERP) Technology to analyze customer purchases (Chen, 2001). This database provides an innovative dimension to understand customer behavior and to deliver their needs effectively and timely (Chen, 2001). Such innovations, radically changed the approaches in managing customers as business intelligence applications (Chen, 2001) allow interactive communication through heterogeneous sources. IT reduced traditional marketing research processes e.g. customer surveys and group-based discussion (Chen, 2001) and proved accuracy of information in profit analysis (Chen, 2001). Ethical Dilemma & Some Empirical Examples Despite modernization aiding customer representatives, there remain many ethical dilemmas which executives must manage by setting procedures as support mechanisms. Ethical dilemma put a person in a situational reflection on moral imperatives. This oftentimes happen while workers are in a social interaction with customers or co-workers, especially when workplace is serving a multicultural and multiethnic setting. A person is faced with a question: right or wrong? good or evil? Which to choose? However, business ethics vary depending on the vision, mission, vision and the ethical policies adopted by the company and of the management. In hospitals for instance, medical practitioners adhere to Code of Medical Ethics which mandated them to consider foremost the welfare of their patients by adhering to honorable behavior and by providing the competent medical care to patients (American Medical Association, 2011). To cite Case 2, the surgeon was confronted with the dilemma about instituting euthanasia or not to a patient in a vegetative state following an accident. Family members of the patient requested the institution of euthanasia after learning the impossibility of patients’ survival. Though the situation emotionally devastated them, but they are likewise aware of increasing hospital bills. However, as medical practitioners must decide with caution and lawfulness, the surgeon conferred the matter to the management and altogether conducted conference to discuss the implications of euthanasia to uphold the rights of the patient, including the inherent accountability to of the hospital to undertake “mercy killing”. ” Laws prohibited us to provide medicines to patient that can cause death. But considering the impossibility of patient’s survival and the financial difficulties faced by the family, they were made to sign documents to discharge the patient death. But hospital management insists that while all medical gadgets, are removed proper care should be accorded by the family to the patient with until his death.” Business ethics should likewise be upheld in all daily affairs of the company, especially in managing customers. Principle-centered business leadership is primordial to maintain the integrity of the company. The contravention of these principles will tarnish the reputation of the company. Customer’s trust will be eroded and could eventually affect its operational credence. This is much depicted in Case 1, Case 3 and Case 4. While it is unfair for the businessman in Case 1 to extend ‘financial gift’ to a company employee to leverage in the prioritization of transactions, but the businessman opted to decide for what is expedient at the moment. Businessman recognized that he was actually dealing with bureaucratic corruption by bribery but he could have likewise shared his experience with such worker to the management for the executives to sanction administrative punishment for erring employees who are abusing the circumstance to gain favors. Red tapes are certainly contrary to public ethics and to company’s policy. Moreover, business ethics mandates that moral principles must govern worker’ behaviors. Workers should be aware that company policies are founded on ethical theories whose frameworks are structured to make human behaviors valuable to the society; that it will not cause harm to another; that it will not trample the rights, dignity and its deontological meanings. This is illustrative in Case 3 and 4. In Case 3, the masseur refused to be tempted of financial gains when refused more fees in exchange for sexual gratification. The masseur stood on moral ground when she refused to trade her flesh as her profession, as a matter of policy, is not a sexual den that is promoting prostitution. Such moral dilemma is also depicted in Case 4 where worker maintained honesty albeit fear of possible termination from work if she’d profess the corruption of a manager. The opted to adhere on protected values knowing that financial mismanagement can affect company’s operation and performance management. Business Ethics Decisions are crucial in business management and in keeping the integrity of an institution. Experts asserted that ethical reinvigoration in business operations should be imposing upon itself as standard or corporate behavior (Micewski & Troy, 2007). Moral principles, policies, and laws should regulate the business realm and directs behavioral responses in case moral dilemma arises. Business ethics will guide executives’, managers’ and workers’ decision-makings specially when tempted to act beyond codified legislation or are prompted to act under judicial-free circumstances (Ritter, 2006). Regular performance appraisal should also be done to maintain open communication between management and workers for check and balance as part of CRM. Appendix: Case 1 Mr X, 48 years old, is a businessman and had a business transaction with a company which relates to “buy-and sell” venture. He felt a bit uneasy when confronted the needs to deal bureaucratic corruption as a manager told him that he has to wait his turn because there are many entrepreneurs on queue in the list of priority. He was told further that if he wanted to be truly prioritized, he can pay for direct servicing. Mr. X knew that red tapes or outright bribery is present in the market and in governmental institutions nowadays. He felt he was made a choice whether to pay for prioritization or be kept at bay until his time comes. But he also knew that he needs to cope with time in this transaction, otherwise, he’d be late to rush back in his store. He professed that instead of giving payments, he considered of presenting a gift just to gain a nod to pursue his transaction. However, such still interpose a moral question whether efficiency of company’s service needs to be traded with a gift or a payment? Mr. X said that giving a gift to hasten his transaction would not make him feel bad for red tape or corruption. At least, he said, its best to think it that way as a ‘gift’ instead of payment. Mr. X did not bother relating to the company’s executive about the corrupt practices of his employees when he was able to get ahead of others. What mattered to him was that he was prioritized and was able to get back to his store in an expected time. Case 2. Ms. Y is a surgeon. She faced a dilemma when members of the family of the patient recommended to her to institute euthanasia or ‘mercy killing’ to her patient who was in a vegetative state after his car met an accidental collision with a truck. Ms. Y explained to her clients that indeed the patient, in medical terms, has poor chance of survival and can die anytime. Patient’s life is prolonged only with the medical technology’s intervention. Without those gadgets attached to him, he’d instantly terminate his dear life. But Ms. Y knew that instituting euthanasia is contrary to Hypocratic oath of medical practitioners. Ms. Y explained to patient’s family that under moral obligations and professional policies, medial practitioners’ job is to get all the measures to save life. Laws also prohibited them to provide medicines to patient that can cause death. The family were however concern about the increasing hospital bills that they’ve got to pay albeit absence of chance for patient’s survival. Physician conferred the case to hospital management and in turn has a conference with family members of the patient who deemed it better to let their patient rest peacefully. The hospital management and the surgeon refused institution of euthanasia but have agreed that gadgets can be removed from the patient and necessary monitoring be done until the termination of patient’s life. Patient’s family members also signed some documents relating to this decision. Case 3. Ms. B, 29 years old, is a masseur, with 4 children. She worked in a company providing massage services to hotels’ clients. The masseurs have extensive knowledge about reflexology and massage therapy for many health related purposes, including relaxation. She said that her profession relates about the expertise in relieving pain, physical rehabilitation, reduction of stress and relaxation from anxiety and depression. She said she serves for general wellness. She related an experience when a customer offered to give additional pay in exchange for sexual gratification. This case raises a moral question if the professional mandates of a masseur can perform sexual act in exchange for a sum of money as a consideration. The act is prohibited to professional masseur as a matter of policy. Ms. B further related that she had undergone an education on massage therapy and that there are policies regulating their profession. She said she is a licensed massage practitioner. Ms. B related that the offer for additional fees was never tempting and that it insulted her very person. She felt revulsion against the customer. She said that her job is really vulnerable to sexual assaults and advances especially that they’d be doing massage therapy within the confines of hotel rooms. However, as this is her chosen profession, she strongly adheres to policies and moral duties of each person. She professed that whenever she’d confront a case like that she’d immediately leave the customer and reports the case to her manager. The latter, she said, is responsible to relate to the hotel management about the sexual advancement of a client and would explain the company’s policy that it is against prostitution. Case 4. Ms. H is a cashier of a company. She works eight hours a day. One day, at work, her manager sought for an amount of money which he said be used for business meeting. While worker was about to go home worker saw her manager in a restaurant actually dating his girlfriend. Cashier had a dilemma whether to relate the case to top executives or just hide the case to evade conflicts and possible dismissal from work. Ms. H related that for three days she reflected about letting go of the incident but professed that she realized too the relevance nurturing financial proficiency for the company. Ms. H said that the operational cost and salaries of the workers are dependent on company’s income. If cases like that be tolerated, it can happen again and again and such will sacrifice company in the long run. Ms. H related that at a slated performance appraisal of the company, she related the importance of financial transparency and proficiency to ensure that the company will be able to bounce back in case of turmoil in the market. Ms. H said that she need not mention the name of the manager so as not to embarrass him but she said that its primordial to correct that bad practice by correlating performance management system to effective leadership to sustain the company’s life. Ms. H said that she explained that the manner on performance management system is of primary significance and such must be practice by valuing fairness and understanding the consequences of performance management practices. She also emphasized that principle centered leadership is very important to keep the company going. References Aleksandar, Donev (2011). Euthanasia- An Ethical Dilemma for A Caring Society. Princeton University. New Jersey, United States. Accessed: October 25, 2011. American Medical Association, 2011. Principles of Medical Ethics. AMA Code of Medical Ethics, Chicago, Illinois. Chenting Su and Littlefield, James E. (2001). Entering Guanxi: A Business Ethical Dilemma in Mainland China? Journal of Business Ethics. Kulwer Academic Publishers, Netherlands. Vol. 33: 199-210. Bull, C. (2003). Strategic issues in customer relationship management (CRM) implementation. Business Process Management (9: 5), pp. 592. Cap Gemini and International Data Corporation. (1999). Customer Relationship Management: the Changing Economics of Customer Relationship. White Paper prepared by Cap Gemini and International Data Corporation. Chen, I. (2001). Planning for ERP systems: analysis and future trend. 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