Increasing Service Quality at a Nationwide Restaurant Chain - Coursework Example

Module & Number & Report Increasing Service Quality at a Nationwide Restaurant Chain Word count: Table of Contents No. Topic Page 1 Executive Summary 2 2 Introduction 3 3 What is Service Quality? 4 4 Elements of Service Quality 4 5 Measurement of Service Quality 5 6 Analysis of the Present Situation 7 7 An HR Program to Improve Service Quality 9 8 Measurement of Results 11 9 Conclusion 11 10 References 12 Executive Summary The report at hand presents a look into the elements of service quality, how to measure them and how to implement a plan at the HR level to being about a change and improvement in service quality at a restaurant chain. Recommendations have been made both in the light of personal experience and the available literature on the subject of quality improvement and customer satisfaction. Although the specific elements of the program have been directed at the waiting staff of a nation-wide restaurant, it has wider implications for the good of any organization and can be implemented by using similar measures and those improvised to meet particular customer needs or pointed out deficiencies that need to be addressed. Increasing Service Quality at a Nationwide Restaurant Chain Introduction No organization worth its name could continue to exist indefinitely without some kind of commitment to quality, consistency and reliability of product or service. It is one thing to meet customer needs and another thing altogether to meet these needs in a quality and service conscious manner. This could very well spell the difference between success and failure in the long run for the organization. The five pillars of total quality management as defined by Bill Creech in his book are Product, Process, Organization, Leadership and Commitment. There could be any number of reasons why customers prefer one service provider over another, but it usually all boils down to the level of service quality which leads to customer satisfaction. Anderson and others (2008, 365-381) found that it is not only the service value concept but also the characterization and consideration of the customer as a participant in the process (co-creator of value) that makes the service effort unique and commendable. This paper will look at the elements of service quality from an HR perspective and also address the problems of service quality as perceived among the waiting staff of a national restaurant chain. What is Service Quality? Simply put, quality of service is the customers’ expectation and evaluation of the level of ease and comfort he is supposed to have while enjoying or operating the products or services of the providing organization. For example, if a restaurant chain is classified as having a four or five star rating, not only would it have a there would be a certain level of proficiency expected in the provision of these services as well. In fact, when we enter a five star restaurant we expect a certain ambience and care and support that emanates from the reception area and goes right through the whole establishment. Empathy, reliability, responsiveness and assurance of the expected level of service are what gives the restaurant its rating and the customer’s perception of the actual services provided gives the satisfaction level of these benefits. Elements of Service Quality There can be many elements of service quality, but they all boil down to the five most important ones which are as under: a. Reliability: This is the ability of the service provider to provide what was promised, in an accurate and dependable manner. b. Assurance: This is the ability of the service provider to convey trust and confidence that what is desired will be carried out. It also reflects the knowledge and courtesy of the service provider while dealing with customer requests or complaints. c. Tangibility: This refers to the physical facilities and equipment at the hotel. Everything from the working style to the dress of the employees should send the message of a caring and responsive attitude to customer needs and comfort. d. Empathy: This refers to the caring attitude and degree of individual attention provided to each customer. Customers can have varying needs and also communicate them in different ways. It is up to the hotel staff to dissipate their dissatisfaction and reassure them that the desired level of service will be provided. e. Responsiveness: This is the most important and is shown by the willingness of the service provider to help the customers by providing not only the standard services but also looking towards their specific and individual needs. Sometimes it also involves anticipating the customer’s unspoken needs by virtue of experience in the profession. Measurement of Service Quality Before service quality is to be improved, the efficiency and efficacy of the present level of service must be measured. It is important for the service provider to not only do what is required, but also to do it in the right manner and at the right time. This is what will be recalled by the customer when he considers the level of satisfaction that he has experienced. Sometimes the service provider also goes out of his way to give the customer a good experience such as a complimentary meal or free ice cream if he has been dissatisfied on some other account. It is hoped that by this action he will forget the bad incident or forgive the management or staff and not record his customer dissatisfaction. The hospitality and food industry very largely depends on customer satisfaction to fuel their business as there is a direct link between the quality of service provided, degree of customer satisfaction and revisit rates leading to revenues and profitability. It was found that bad service has ripple effects throughout an organization, reducing worker morale and being counterproductive to management’s goal of profitability (Yang, 2008, 29-46). While the field of marketing research has relied upon techniques such as customer satisfaction surveys, focus groups, specialized computer packages and engaging quality improvement experts to evaluate and increase the levels of customer satisfaction and service quality along various dimensions as outlined above, the focus in these studies has usually been along one of three pathways. Customer satisfaction and the need for improving the level of service can either be an organizational or cultural issue, or a behavioral issue needing training and practice, or an analytical issue concerning specific aspects that must be corrected to ensure higher or more acceptable levels of customer satisfaction. Borucki and Burke (1999, 943-962) found that there is a direct link between management support of the service employees in a retail environment and this has a direct impact on the morale of the workers as well as the sales and satisfaction level experienced by both customers and employees. Analysis of the Present Situation In the given scenario, I have been recently appointed as the HR director of a nation-wide restaurant chain. There is a perception in the chain that the level of service quality of the waiting staff is less than what is desired and one of my first tasks would be to improve their level of service. Quite understandably this is one of management’s key concerns as the level of service quality displayed by the waiters directly impacts on the level of customer satisfaction (or dissatisfaction) and their perceptions can make or break the reputation of the restaurant chain and determine its chances for survival or closedown. As outlined above, this could either be due to lack of proper training, or low morale caused by employee-management difficulties and low pay or overwork. Scarlicki and others (2008, 1035-47) found that employee sabotage was directly related to employee dissatisfaction of management mistreatment and resulted in negative job performance. It could even be due to lack of proper organizational procedures and commitment to service quality as a way of life at the hotel chain. Deitz and others (2004, 81-92) found that the more important and frequent the communication and interaction between employees and customers, the more it impacted on customer satisfaction. Walsh and others (2009, 187-203) found that customer satisfaction is directly impacted by trust on staff, their expertise and the reputation of the organization. My first action was to call in various members of the waiting staff and interview them informally and in confidence, as I wanted to find out the root cause of the problem. While the waiting staff were concerned about their job stability, it was clear that management was supportive of their efforts and treated the staff well. In other words, there was no communication gap or cause of concern regarding staff treatment. The staff was not overworked either- however there was cause for concern because customer traffic had not been all that good in the last three months. McKay and others (2008, 249-274) have suggested that an organizational commitment to universal principles of quality management and fair work attitudes does much to defeat perceived differences due to diversity. The results of my analysis following these interviews were that it was simply a lack of training and the lack of a proper service quality orientation program that was the root cause of the problem. While the majority of the waiting staff had previous experience in this capacity within the restaurant chain, a few of these personnel did not have the requisite experience and training. They had been hired rather in a hurry during a boom period when customer traffic was good and experienced staff was in short supply. Some of them had just worked in a local burger or pizza joint out of high school before being employed at the restaurant chain. It was wrongly assumed that they would simply pick up the skills from the more experienced staff. It was the service mistakes of these staff that was contributing to low levels of customer satisfaction and this was what was needed to be corrected. An HR Program to Improve Service Quality In order to improve the service quality levels of the waiting staff, I immediately set up drawing a plan for service improvement along the following lines: Grooming: Each of the waiting staff was trained through a formal meeting with a stylist regarding the supreme importance of grooming. They were told they were responsible for how they looked from top to bottom- including personal hygiene and clean and ironed uniforms. Looking good is the first step to feeling good on the job and helps job performance and positive customer perceptions. Exercise: A formal program for physical exercise was arranged with a nearby instructor who would pop in each morning for an hour to see that the waiting staff was kept in good shape. Following this they would shower and dress in their work clothes. Morale: Giving the waiting staff a motivational story and pressing upon them the need for good service ability was a task personally undertaken by me. I reviewed all instances of customer complaints during the day or the week gone by and thought about how to address them in the best possible manner. In some instances I even had to take help from senior staff who knew the policies and conventions and how to address customer concerns. Schneider and others (2005, 1017-32) found that there is often a direct relationship between service climate and customer focused behavior, customer satisfaction and revenues. Liao and Chuang (2007, 1006-19) found that there is a direct and positive relationship between transformational leadership efforts at the managerial level, employee attitudes, work performance and service climate leading to customer satisfaction in the long run. Training: I hired the services of a good restaurant manager in order to groom the waiting staff that required training. I also made sure that they knew everything from how to address the customer properly to placement of knives, forks and spoons and how to properly pronounce items on the menu by checking upon these staff. Different aspects of hospitality management were addressed and staff was also encouraged to bring forth their problems and areas of difficulty so that everyone could benefit. Judge and others (2009, 57-88) found that employees could be trained to look at the brighter side of things and engage in ‘deep acting’ even when confronted with irate customers in order to handle the situation in a calm and controlled manner. Measurement of Results As regards the measurement of results, I gave each of the waiting staff points for their grooming, body shaping, work attitude, number of compliments received from customers and speed of learning from the different aspects of the training program. I have even instituted the Waiter of the Month reward program for this staff, and management was so impressed that it has instituted this program at different levels within the organization. It is appreciable that service levels have improved within a month of instituting these changes- as is visible not only by increase in customers but comments of appreciation on quality evaluation cards. At the ground level, a suggestion box with rewards for the best idea to improve service every month, reflection of performance on appraisal sheets and employee and customer satisfaction surveys are also being implemented. This will go a long way in improving the service quality standards at the restaurant. Conclusion The studies referred to and my own personal experiences have contributed to the elements of a workable service quality improvement program at the restaurant chain. In this way I have managed to tackle and remove service deficiencies within the restaurant chain and it is only a matter of time before service quality levels and customer satisfaction improves which will aid in revenues and profitability. References Anderson, S., Klein, P.L and Widener, K.S. (2008): Drivers of Service Satisfaction: Linking Customer Satisfaction to the Service Concept and Consumer Characteristics. Journal of Service Research, Volume 10, Issue 4, pp 365-381. Borucki and Burke (1999): An examination of service-related antecedents to retail store performance. Journal of Organizational Behavior, Volume 20, pp 943-962. Deitz, J., Pugh, S.D and Wiley, J.W. (2004). Service climate effects on customer attitudes: an examination of boundary conditions. Academy of Management Journal, Volume 41, Issue 1, pp 81-92. Judge, T.A, Fluegge Woolf, E. and Hurst, C. (2009). Is emotional labor more difficult for some than for others? A multilevel, experience-sampling study. Personnel Psychology, No.62, pp 57-88. Liao, H. and Chuang, A. (2004). A multilevel investigation of factors influencing service performance. Academy of Management Journal, Volume 47, Issue 1, pp 41-58. McKay, P., Avery, D. and Morris, M. (2008). Mean racial-ethnic differences in employee sales performance. Personnel Psychology, No. 61, pp 349-374. Schneider, B., Ehrhart, M., Mayer, J., Saltz, D. & Niles-Jolly, K.(2005). Understanding organization-customer links in customer settings. Academy of Management Journal, Volume 48, Issue 6, pp 1017-1032. Skarlicki, D., van Jaarsweld, D. & Walker, D. (2008). Getting even for customer mistreatment: the role of moral identity in the relationship between customer interpersonal injustice and customer sabotage. Journal of Applied Psychology, Volume 93, Issue 6, pp 1035-47. Walsh, G., Mitchell, V., Jackson, P. & Beatty, S. (2009).Examining the antecedents and consequences of corporate reputation: a customer perspective. British Journal of Management, Volume 20, pp 187-203. Yang (2008). Can’t Serve Customers Right? An indirect effect of co-workers counterproductive behaviour in the service environment. Journal of Occupational and Organizational Psychology, Volume 81, Issue 1, March 2008, pp 29-46. Read More