A Systems Approach to Service Quality - Assignment Example

Management of Service Quality By Department Professor’s Name Name of the University 14th May, 2012 Case 1: A Systems Approach to Service Quality Q.1. Sainsbury in an firms that uses systematic thinking that aids them to comprehend various relations and parts or segments of a system. Key systematic thinkers in the firm need to identify key patterns and interrelationships and outlining some eventuality of those acts to the organization. The managers of Sainsbury need to apply those particular framework in solving a number of problems or implementing a number of changes in a broad range of problems which should be used in addressing a number of customer view points and targeting changes in customers and making appreciations (Juran, 1969 pp.40). Sainsbury an organization that deals with supply of groceries as achieved its quality management systems by applying a system approach in satisfying its customer’s product needs. The aim of Sainsbury is to provide products that make a customer not to complain, this is only achieved by making sure that the employees are fully integrated in the product provision system. The firm also values the need of having a quality established feedback process that allows customers to make any complains or feedbacks, suggestions boxes and website complain inbox sections have been created so as to enable customers to outline their suggestions and complains freely, which later will be answered after a period of time by the management team (Bass, 1990 pp.46). The results from the customers feedbacks and complains are then communicated in the company website on current news, if any adjustments have to be done involving improving of resources or training the employees is then communicated. This will enable the organization to improve its quality management programs and embrace the culture of continuous improvements by involving the employees. This is a system approach which looks at the employees as part of the quality provision service and not only the top management of the organization. Q.2. If an organization or firm is not addressing a customer problem then a number of visible cues at the event level may occur, this occurs when an employee does not or is not following a laid down procedure in resolving a customer problem or issue. In a number of cases the top management is given the responsibility to tackle any problem related to employee complains or suggestions. It is expected of them to fix the particular issue on the spot or fix any customer emerging issues that they confront. But in majority of cases managers and other organizational personnel are not quick enough to know that any strength, power and inputs that are utilised in service recovery originally do with a bit or everything at all to fix the results of the problems that counter for the surface. The outcome of such attempts is a waste of resources in trying to treat the symptoms of the occurs into the business activities. The emerging aspect is that it will be a cyclical process that will continue to emerge regardless of how often the management will try to address them. It may then lead to a number of negative events and financial implications for example waste of resources, lose of revenues due to loss of loyal customers to the business. In that case a system thinking approach is the best suggestion for curing such problems and coming up with the best interventions that address the root causes of the problems (Mc Donnel, 1992 pp.56). In any organization or firm when establishing a system approach model, it is very useful for any top manager to review the proponents of Edward Deming’s which are the fourteen points of TQM. From both perspectives it is necessary for supervisors and managers to understand what they need to do in the organization to improve quality, this is done by identifying the needs and problems existing in a particular system and trying to eliminate the old unprofitable procedures by creating a enviroment that needs to focus to long term quality management improvement. This is referred to as the main cause evaluation and service type of mapping in TQM and service counter quality model respectively. The second relationship between the two approaches is that both methods do enable managers and supervisors to question or ask what is going on within their institution, how is it being done? And why it is done in a particular way? Both approaches also share the feature where it engages the individuals or persons who are involved in carrying out the tasks or activities this is done by either training them on quality issues or empowering them by making them leaders in their respective fields of specializations. Apart from empowering them in a number of ways both approaches try to drive away any kind of fear among the employees when they are carrying out their respective tasks this is by making sure that there is a conducive environment where the employees can work freely without any fear of victimization from the seniors. Both methods also help in breaking down any barriers existing among departments so as employees are able to integrate and share resources and ideas fully. In both approaches the employee are empowered to apply rational quality decisions for the betterment of the organization. Case 2: The effect of service-regarding quality in service analysis: evidence from a business-to-business sections. Q.1. there are a number of reasons that create complexity in focusing on service encounter satisfaction and service quality this only results from a service oriented global economy where there is an intensive climate that makes organizations to strategically understand how consumers evaluate services that they want to purchase, some of the reasons that create this complexity include: Loyalty- in this respect there is no one concrete or universal definition in a number of ways loyalties can refer to any attitude that leads to a consumer to have a relationship with a particular brand expressed with the number of purchases made. The complexity that has resulted recently is that majority of customers who are said to be loyal only focus only on products and brands instead of services, which means that the relationship between loyalty and a service of a firm remains under explored. This has made it more difficult to improve service quality delivery to the customers who are only embedded on the products or loyalty to a particular brand (Juran, 1969 pp.40). Perceived service quality and perceived value- it refers to particular assessments in which customers perceive to be right, fair, or desired for the perceived cost of sharing thus referring to perceived rate, while perceived costs are not only on monetary projects but on non monetary sacrifices such as time consumption. This means consumers perceptions of value depend on tradeoff between product qualities in comparison with the sacrifices they perceive in monetary terms. It has become a requirement to measure the customers service quality provision because the customer often measure a service provider rate of outcome to inputs by thus making a proper comparisons with a computer offerings. It is also understood that perceived rate has become a consistent and strong predictor of a given loyalty and high value as become a primary motivation for customer patronage Customer satisfaction- this is due to subject of discussion and alterations because of the potential influence that a consumer behavior intentions and retractions. It is believed that customer satisfaction is a result of individuals focussing on value and there are aspect which are checked with identified value, quality and customer kind of expectations for example when buying a product or service of the product it is not costly and looked upon as quality in respect to the customer who may not like to purchase a particular product or service due to pre-purchase identify the value. Service encounter quality- this are non performances in which both consumer and service providers have the roles to enact the existence on interaction between the customer and service provider, it is a place where the customer will try to evaluate the overall perception of a given service provider based on a number of perceptions formulated during the service encounters. If the perception is positive then it leads to a positive quality of the service and vice versa. Q. Perceived value is based on equity theory which considers the ration of a particular income and output with that of the service provider’s outcome inputs. In wider perceptions it does refer to the customers view or evaluators of what is expected to be right, fairly done or is expected to bring out many returns to the individual or organization. In recent times perceived value only does it affect the customer choice of behavior at pre-purchase stage but also influences the relationships and intentions to recommend at any post use stage. This has made the buyers to only trade-off the products qualities they perceive with a comparison to the sacrifice the customers perceive in monetary terms. In a competitive market the customers have become keen in that they are able to measure providers of a service with the ratio of outcome to inputs by doing so they are able to make conclusions on their service solution. Many of the studies have established that for existence of perceived quality there must be perceived values which are positively correlated. In any depended market a customer’s evaluation of perceived service value quality and the interaction between perceived value and the perceived quality does remain positive. In the long run it is established if the customers does perceive a product positively then it is more likely that the customer will establish a positive a long-term relationship with the firms or organization (Fitsimmons, & Fitsimmons, 2008 pp.279). One of the best outcome that can result due to perceived value is that it can lead to a customer confidence where is able positively and confidently advice the company products and services to other people, this is on the existence and use of a particular product due to positive perceived quality. Studies in a number of business and firms in the world business have shown that perceived value has led to many customers to change their intentions to repeat purchasing products or services in a wider perceptions. Value is referred to good, best quality of the products that the customers can only perceive it has having satisfied its needs fully without any complains or negative feedbacks towards the use of the product. The long term gains that the organization or business gain is that the service quality will lead to loyalty to a particular firm; they will be able for a long period of time establish and buy products. This is because perceived value is seen as a strong production of loyalty because it is one of the motivated factors that is used by customers. The customer’s behaviors have intentional loyalty towards a particular service provider as long as such relational exchanges are provided in a superior value. In general context if an organization offers a continuous and reliable value to its customers then the resulting outcome is that the customers will build up a brand of loyalty towards the particular firm more than on the product, creating a long term relationship which is beneficial to the company. PART B Q.1. In service firm upon applying the elements of the new service development cycle, and managing and measuring the quality each service encounter, in order to achieve consistently high levels of customer satisfaction and loyalty. The main concepts in addressing, managing quality include a focused network, a clustered service and a diversified network. It is not expected for an organization to do an outstanding job at pursuing its TQM process and still experience great difficulty in meeting the needs of the customer. Therefore there is need to continuously check or evaluate what the organization has done and act to improve it by re-planning and re-doing. The measuring of quality in service firm helps to determine the level of customer, whether the quality management system conforms to the set standards required internationally or whether the required quality management standards are not met to the latter. The following concepts need to be measured. Customer’s perceptions- it is important to realize that financial indicators will not reach levels in the levels in the long haul, unless customers are delighted, considering the fact that customers who are not satisfied are vulnerable to the competitors. There is need to monitor the number of customer base, which is related directly to how your customers are delighted with y0ur customers products and services. These are the consumers who have considered you as the supplier of choice and represent your most valuable assets. The number of customers per employee on the patrol or the dollar amount of sales related to payroll dollars is a useful indicator that helps us track efficiency. The number of complains in the service firm is a customer oriented indicator that shows the number of complaints and how effectively they are handled to the delight of the consumers, and how effective the resolution is to the customers opinion and finally whether the customers who complained with continue to be your customer (Bass, 1990 pp.46). Research has shown that a customer who complains and has his or her complaint adjusted fairly and quickly will remain a customer for the future and may even sell your firm by word of mouth and bring friends to your door. Even an unusual amount of time or money spent to satisfy a complaining customer can be regained and surpassed by the value of repeat and referral business in the future. This point therefore speaks out for the long term attitude we must adopt when it comes to relating to our customers (Gronroos, 1998 pp.34). Employee- because total quality includes total employee involvement there is need to track the number of people and the percent of the population involved in the quality process. This includes people on the teams and people involved in the unit level quality. And here too, the quantitatively and qualitative nature of involvement will be considered. Finally, through continuing surveys, employees being the key to organizational performance through their performance through their performance, we have to measure their perception on the TQM process and be able to find out the extent to which the quality efforts impact on the consumers (Jayawardhana, 2010 pp340) Continuous learning and training- training and re-training is essential in the TQM process. Quality teams are the guts or the backbone of total quality. The employees of the firm come together with the aim of achieving improvements and solving problems. But teams cannot be effectively unless the team members know how to identify improvement opportunities and investigate problems. Also, employees will develop a quality; customer first attitude without modifying their actions, actions won’t be altered without training. Therefore, if employee attitude must be changed then the behavior must be altered (Juran, 1969 pp.40). Top management involvement- total quality management will never be successful if top management does not fully involve itself in the system. No matter how enthusiastic the staff involvement is, it is not enough to sustain the TQM process for very long direct and active participation into the measurement of quality and its facets is relevant in clearly demonstrating top management commitment in the essential factors. It’s the fact the management behavior shapes the corporate attitude and defines what is important to the success of and survival of the company. It is not what the management says rather, what it does that is most influential on the company and its people (Fitsimmons et.al, 2008 pp.279). Q.2. The process of implementing new technology in the organization does follow a number of steps which occur in sequence. Different stages of designing, delivering and evaluating services. Designing stage in the organization must have a clear understanding as to why the technology is needed. There are many reasons for embracing the new technology a well known problem that no other management program could solve in management program, to use it as a new banner under which to launch a new scheme of IT program, to identify some potential of outsourcing new technologies to the organization on the basis of cost reductions. The organization needs to clarify and communicate broad strategic visions into which the design will fit for the new technology (Bass, 1990 pp.46). The second step is having leader’s commitment. This is a critical step because without which the process of new technology implementation cannot proceed further. The firm’s leader of the business must grasp the business vision and refine it by challenging the assumptions and principles on which the business currently run. The third stage requires that that business unit identify the new technology process implementation that need to be which attempts to identify all processes within the organization and prioritize them according to urgency or importance criteria, in order to define the business processes clearly one needs to collect supporting process data which may emanate from various sources such as customers interviews, competitor bench marking, and the analysis of best practices in other industries among others (Jayawardhana, 2010 pp.340). The fourth step of the process is vital to measure how well they perform and their current contribution to the entire process. It is necessary to develop appropriate measures of performance for the process, activities and tasks. Measurement will help serve as a means to understand the current processes and as a basis for future improvement. The managers then start to design new processes with the help of available information technology. Managers must learn to recognize and build upon the new and unfamiliar capabilities of the new technologies. Having implemented the process the top management must specify the technical and social solutions needed to implement the new processes. The management should plan for the new technology, standards, staffing and education and assess the training needs. At times existing technology will be absolute and may require fundamental transformations. People need to be equipped with requisite skills and knowledge to assess and support the key processes that contribute to customer satisfaction and organizational goals. Having planned for resource which is necessary to transform existing processes management may start implementing their plans. The style of management required for implementation has been a subject of debate (Fitsimmons, & Fitsimmons, 2008 pp.279). The evaluation stage of the new technology involves a continuous redesign and improvement. However, appropriate the new processes may be, they have to be continuously improved. Continuous improvement does not require fundamental shifts but gradual, incremental changes brought about constantly in order to keep the process of implementation. Q.3. The development of the service sector is becoming more important as the world economy evolves, major breakthrough in information technology and the increased use of the computers are propelling the growth of such enterprises. The developed countries have already shifted their economic focus to the service industry. The coming up with development measure makes the creation aspect of economy in all service business industry. The increasing interest in the service sector has caused considerable disagreement and debate on what constitutes a service. Service is a performance that transacts an experience. It has to be experienced at the same time as it is rendered. In some cases the person becomes an active participant in the process of delivery of a service, either by extending physical co-operations or by communicating. The employees of an organization play a key role in the service delivery process because they act as a catalyst in the delivery process. Similarly, time plays a more vital role in the delivery of service than in maintaining products because the service rendered cannot be stored for future consumptions (Fitsimmons & Fitsimmons, 2008 pp.279). The customer satisfaction lies in the experience during the service delivery process. Quality service emanates from the role played by the employee in the service delivery, the systems used to deliver service, and time taken during the service delivery. Services firms are very different than other kind of business because the service sector, the processes are difficult to benchmark. The service sector involves the participation of customers, a good example is the case of bank customers making withdrawals from ATM. Machines and equipments exist to a minimal scale in the service sector. The customers may not need to prepare any formal specifications of the kind of service required. Quality in the service sector is less tangible and usually more difficult to measure than any manufacturing sector. The customer is often directly involved in the service delivery process and also service sector places more emphasis on human factors. The lack of tangibility in a service makes it difficult for the producer to describe the service and for the consumer to ascertain exactly what they need. As consumers cannot see, hear, feel, smell or touch a service before it is purchased, they look for other dimensions of quality such as reputations, accessibility, among others. The influences on reputational aspects of an organization as a quality dimension places greater responsibility on the organization to deliver right time and deliver on their promises. Similarly, customers view staff physical facilities as signs of quality (Knowle, 1999 pp 60). The perception of the consumer and the behavior of the service provider, the behavior of the service provider influence the consumer’s perceptions of quality. It is normally difficult to ensure consistency and uniformity of behavior, hence what the firms intends to deliver may be entirely different from what the consumers eventually receives. Service delivery depends largely on the customer’s ability to articulate his needs or furnish information on what he expects. The accuracy of this information and the ability of the service provider to interpret it have a significant influence on the customer of quality. The customers’ expectations of service may vary each time they receive the service. The variability of the service from one period to another and fro customer to customer makes quality assurance difficult in the service sector. Hence, service providers have to rely on the competence and ability of their staff to understand the requirements of the customer (Testa & Sipe, 2006 pp35). Organizations and firms always strive to avoid failure to deliver services as promised. Once the organization has successfully assessed customer’s needs, translated them into ervice systems and recruited and trained employees, it must then manage its promises. The organization needs appropriate advertising and promotional programs so that the services offered matches the promises, realistic communications are essential so as not to increase expectations unnecessarily and decreases perception of quality. Reference lists Bass, B. (1990) Handbook of leaderships: theories, research and managerials application. New York, U.S, Free press.pp.45-87. Fitsimmons, J., & Fitsimmons, M. (2008) Services managements operations strategy informations Technologies, London, UK, Cengage publication pp.15-275. Jayawardhana, C. (2010) The impacts of services encounters quality in services evaluation: evidence from a business to business context, journal of business and industrial Marketing, Vol. 25, NO. 5, pp. 338-348. Juran, M. (1969) Quality controls handbooks, New York, US, Mc Graw Hill. pp.34-78. Gronroos, C. (1998) Services managements and services marketing: customers Relationships approach, USA: John Wiley & Sons. pp.12-57. Knowle, P. (1999) Moods versus services quality effects on consumers responses to service encounters: journal of service research, Vol.2, No.2, pp.34. Mc Donnel, F. (1992) Three years of total quality management: Journal for quality and participation, Vol. 15, No. 3, pp.134-678. Testa, M., & Sipe, L. (2006) A systems approaches to services quality: tools for hospitalities leaders, Cornell University, Vol.47, No.1, pp.36-8. Read More