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Issue In Handling Customer Complaint in Rural Areas Electricity Company - Case Study Example

Summary
The paper “Issue In Handling Customer Complaint in Rural Areas Electricity Company” is an exciting variant of a case study on marketing. Soft systems methodology (SSM) is a problem-solving methodology developed and adopted by Peter Checkland in the late 1960s. Checkland was a lecturer at the University of Lancaster in the United Kingdom…
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Extract of sample "Issue In Handling Customer Complaint in Rural Areas Electricity Company"

Issue in Handling Customer in RAECO Name: Date: Affiliation: Table of Components Introduction to SSM (Soft systems methodology)……………………………………………pg3 Statement of issue ……………………………………………………………………………pg4 Analysis of the factors contributing to the issue………………………………………………pg5 Recommendations……………………………………………………………………………pg11 Conclusion……………………………………………………………………………………pg12 References……………………………………………………………………………………pg13 Issue in Handling Customer in RAECO Introduction to SSM (Soft systems methodology) Soft systems methodology (SSM) is a problem-solving methodology developed and adopted by Peter Checkland in the late 1960s. Checkland was a lecturer at the University of Lancaster in United Kingdom and problems in management prompted him to come up with the methodology since he would use it to solve immediate problems. In initially it was a tool for modeling but as time passes by, it has turned out to be crucial in problem solving especially in learning and meaning development. The methodology uses models, but they are not supposed to represent the real world. However, by using system rules and principles, it allows an individual to structure “thinking” about the real world (Boomer 2012, p.45). Moreover, it is worth noting that the models are not normative or descriptive though, in some cases, they carry both elements. The most interesting thing about SSM (soft systems methodology) is that it constrains ones thinking in an attempt to expand thinking capacity and ability. The endeavor blows away the idea that system thinking is expansive in nature. The most fascinating about SSM is comparing the world as it appears with other models of the world that depict it, as it ought to be. The comparison gives better understanding of the world and recommends some ideas that can improve the world, to make it a better place for living. Classic scholars and researchers of SSM normally start with real world problem and study it in unstructured way. Following this, they normally develop the models that fit that particular situation (Boomer 2012, p.45). The particular strengths of SSM for the evaluators are that it can apply the untangled evaluative lessons from programs that have multiple goals and various perspectives on the particular goals. It achieves the goal through developing specific perspectives on that particular program. Moreover, it rigorously various models based on the perspectives and compares it to real life. The classical Soft systems methodology has seven main stages that include: (a) The situation considered problematic (b) Expression of problem situation (c) The root definition of the relevant and purposeful activity systems (d) The conceptual listed in the root definitions (e) Comparison of such models with real world (f) The changes that are culturally, desirable systematically feasible (g) The actions to improve the situation The above steps are applicable in Soft systems methodology, and effective application of these strategies leads to the development of efficient spelled procedure in problem solving (). Statement of issue Having worked in the Rural Areas Electricity Company (RAECO), it is evident that customers do not get appropriate services from the company the fact that creates a room for dissatisfaction. The unsatisfied clients feel neglected, and most of them will opt to use another electricity company if an opportunity arises. The main concern involves the public relation department that receives the complaints from the clients and the other parties that process the grievances to produce long lasting solution. The inefficient and unable worker force in the company depicts an amateur human resource team that does not fulfill the stipulated tasks. Analysis of the factors contributing to the issue The analysis of the problem will follow the stages of SSM whereby each stage will play a specific role in analyzing the problem of the situation. In the first and second stage, the analyst tries to develop the richest picture as possible for the problematic situation. The main role of the two stages is displaying the situation so that various and relevant choices ( in various relevant systems to have a description in the following stages).The Checkland does not provide descriptions or any examples of the rich pictures (Gilmore 2009, p.78). The rich pictures are the informational drawings with concrete information concerning the stage. It is recommendable that the focus in the first and second stage to have relatively stable structures on the continuously changing process and the relationship between the process and the structure. In the case of RAECO (Rural Areas Electricity Company), the company must know what it entails handling complaints from customers and rectify areas where the grievances fail proper handling (Quek, 2009, p.67). The examination of the structure needs examination in terms of the physical layout, hierarchy of power, the reporting structure, and the pattern of communication at formal and informal levels. The process may frequently go through examination in terms of the basic activities when deciding something and monitoring the effectiveness and the external effects and taking the appropriate action. In this stage, the analysis should involve the structures, monitoring which is not functioning accordingly. This will ultimately identify the weak points and eventually come up with ways of eliminating such problems (Martin 2009, p.56). The third stage involves moving from the real world to the systems of thinking to ensure that solution holds water in the end. Development of rich pictures of the problem situation prompts the analyst to choose one or more short descriptions of real world in the succeeding stage and these are the root definitions of the relevant systems (Heinrichs 2013, p.34). The guidance for formulating root definitions falls under Check land’s mnemonic CATWOE that describes the six elements that hold the root definition as a relevant system of problem solving. The first group is the customers or the immediate beneficiaries affected by the system. In the case of RAECO, the clients are the immediate customers who suffer in the hands of inefficient workers. The actors within the system are people who ought to carry out activities in the system. These people may contribute to the effectiveness of an organization or create problems depending on the methods that they use (Schermerhorn 2005, p.79). In RAECO, the employees are the actors who castigate mediocrity and inefficiency in the place of work. These actors create an unfavorable environment for the customer’s hence prompting them to complain and feel unsatisfied by the services provided by the company. Weltanschauung is the third level and refers to the perspective that the root definition appears. RAECO case appears lucid taking into account that electricity companies provide services to civilians and, therefore, failure to deliver quality services prompts the clients to migrate to other service providers. The customer must feel at ease and considered, and when that does not take place, the customer must look for services elsewhere. Therefore, it is important for actors to create the good perception that will retain and satisfy the customers (Sharma 2008, p.90). The owners of the system have the ultimate power to retain or dissolve the company. Dissolution of the company may emanate from inefficient workforce that provides substandard goods and services causing clients to complain and eventually move away. Finally, environmental constraints on the system normally influence change and that make it possible for changes to take place in the system. In relation to RAECO, the internal environment may be a contributing factor that prompts people in the company to provide inefficient and substandard services. The problems in RAECO (Rural Areas Electricity Company) fall under two categories namely: poor organization culture, structure, and poor human resource policies. Under poor organizational culture and structure, there is poor structure of the customer services and lack spelled out protocol that helps in solving the impending customer challenges. For instance, when a challenge reaches to the clerk, the existing protocol does not allow the major problem to proceed to the people in the upper hierarchy (Sharma 2008, p.65). Therefore, the junior staff will try to solve the problem at that level, which at times does not favor or meet the expectations of the customer. For instance, in case of reconnection, the client may wait for a month before; boss who ascertains the tasks gets the papers. Under normal circumstances, the problems that are beyond the junior officers should proceed to the superior officers because they have an upper hand in terms of decision-making. Public relation is a crucial skill for employees dealing with customers. They must have patience among other virtues that are necessary for any individual working with people. On the contrary, most of the employees who handle customers lack these essential skills hence customer dissatisfaction. Good communication and etiquette encourage the customer to an extent that he feels satisfied even if he never gets it right (Stanford 2010,p.55). Every department must have spelled out tasks and responsibilities to act as the guiding principles during practice. For the accounting department handles the accounting tasks such as salaries and other payments. The department cannot handle public relations and customer service because there is a department that must handle the cases. For instance, in RAECO, there must be accounting department and the public relations department. The accounting department must not handle the public relations tasks, because the tasks are clear in the department (Williams & Hummelbrunner 2011, p.44). However, In RAECO, there is stark pandemonium because the department does not know the exact responsibilities. One may find a client taking accounting problem to the rescue department or the public relations department. This makes it difficult for the customer and the worker because there is a mixture of responsibilities. In such case, the customer will lose because of insufficient services (Williams & Hummelbrunner 2011, p.44). Every action that an individual does must have implications. A good action goes hand in hand with praise and therefore it is praiseworthy. On the other hand, an action that does not meet the threshold of a good must be bad. Such an action accompanies ridicule, blame and criticism. Some companies have adopted “no blame culture” to avoid demoralizing employees in the company. Taking into account that people have different abilities, blame culture may demoralize some workers to an extent they may give up working (Wise 2010, p.90). Therefore, “no blame culture” helps in maintaining the morale of the workers within a company. However, in some cases, it leads to laxity because the results will not shift the blame to an individual. For instance, in RAECO, “no blame culture” has contributed to most of the challenges because the employees feel that even if the customer complains, the blame is immune to him or her. Therefore, many customers will get substandard services because the employee is not liable. The culture is dangerous and should only operate in hospitals where surviving or dying of a patient does not necessarily depend on the life of a patient. The culture has contributed the massive complains from the customer, and the situation can change through abolishing the culture (Gilmore 2009, p.77). Motivation is the act of inducing people to work harder for the greater. Motivation falls into two groups; intrinsic and extrinsic motivation. Intrinsic motivation comes from within an individual while extrinsic motivation relies on external rewards. Motivation is crucial in every working environment for it leads to better results by the end of the day. Employment without motivation creates boredom because the employees lack the ability and urge to work hard. Instead, when employees have good motivation, it becomes easy to realize good grades and goals because they a guiding principle (Heinrichs 2013, p.67). In the case of RAECO, the employees lack effective motivation and that is why most them will not produce good results. The human resource department has not given stipulations that governing rewarding of the exemplary employees. Therefore, the available work wills lender substandard services because they lack motivation. According to Herzberg’s two-factor theory, two factors affect motivation in the work place, and the first factor is the hygiene factor. The factor includes; job security, the working conditions, salaries and finally the technical supervision. In real sense, these factors do not motivate employees but when they miss, a feeling of dissatisfaction appears. Therefore, the worker must work with gusto and motivation to achieve the hygiene factors. The second factor according to Herzberg refers to the motivators or the satisfiers (Heinrichs 2013, p.67). These factors include growth opportunities, achievement, and feelings of recognition. RAECO lacks these factors hence making it impossible for the workers to produce good results by the end of the day (Martin 2009, p.154). Leadership is paramount in every company or organization. There various types of leadership styles and they have different impacts on the people. Various types of leadership include autocratic leadership, Laisez-Faire, Participative Leadership, Transformational leadership and Transactional. In the case of RAECO, the management uses autocratic leadership that is not appropriate for this particular situation. The employees in the company are specialists and therefore, autocratic leadership does not fit. Transactional and participative leadership would fit the organization (Quek 2009, p.58). Autocratic leadership fits only in those areas that require close supervision especially in processing and manufacturing industries. RAECO has creative and trained workers, and the leadership frustrates the skills, which is inappropriate. In the same breath, the autocratic leadership does not allow the junior staff to make decisions, and that furthers the mystery of customer dissatisfaction (Gilmore 2009, p.97). KPI (Key Performance Indicators) are crucial in ensuring that employees do the right thing and have the drive to work. When employees know that performance indicators must determine appraisal, they will work towards increasing them. Through increasing the performance indicators, they will improve the level of services to the company. Considering the case of RAECO, it is evident that KPI are considerably low indicating that the managers are not when supervising the employees and during appraisal. Increasing the KPI will ultimately increase productivity and eliminate the massive complaints (Stanford 2010, p.67). Poor human resource policy is the second problem under the root definitions, and it encapsulates poor communication skills, lack of seriousness among employees among other vices. Communication skills are paramount for every individual because they establish good rapport between employees and the workers. When there is good communication, the clients feel appreciated and accepted hence minimizing complains. On the other when there is communication breakdown, the clients will be at the mercy of the unwilling workers hence creating a greater problem. Moreover, communication skills help in maintaining Intra and inter personal relationship among the workers hence producing a better working environment (Williams & Hummelbrunner 2011, P.67). The human resource department must always be ready to ensure that employees have the required dedication, as well as proper training. When employees have adequate training, it becomes possible for them to have the right dedication because they have the knowledge. However, RAECO human resource department do not ensure that employees have dedication and still does not offer in -job training to alleviate the skills of the employees. Moreover, the serious of the workers in the company is at stake because the company because supervision and qualification are faulty. Seriousness of employees calls for dedication, motivation and supervision that the company lacks. In attempt to deter, mediocrity and lack of seriousness, performance contract must take over so that every worker can show the results (Wise 2010, p.67). Recommendations In an attempt to deter, problems associated decision-making and leadership; the managers should adopt Laisez-Faire leadership style because it will promote creativity and effective decision making among the junior officers. This will not only promote good coexistent with the customers, but also the complaints will decrease will satisfaction increases. In the same breath, the leaders and managers should be on their toes to ensure that key performance indicates increase to ensure that customers get appropriate satisfaction. Key performance indicators will not only facilitate hard work, it but also will motivate people because it goes hand in hand with appraisals. However, failure to increase key performance indicators will not improve the situation hence dragging the company downwards (Stanford 2010, p.78). Motivation is crucial in maintaining good working relationships. Failure to motivate workers effectively reduces the ability of workers hence reducing the output. However, effective motivation of workers will not only motivate them but the services will improve hence reducing the complaints coming from the people (Martin 2009, p.89). In many companies, the Herzberg’s motivation theory has proved its efficiency and application of such theories will alleviate the level of services in the company. The organizational culture of the company must change if at all the company must alleviate the services and curb complains. The culture in the company does not allow blame, and this prompts many employees to work without considering the results. The uncouth working behavior leads to multiplication of errors and vices hence making it difficult for the company to thrive. Complains push clients away hence the need to advocate responsibility of any behavior and result (Gilmore 2009, p.87). The leaders and managers must warn and punish those employees who produce bad results that culminate in dissatisfaction amongst the clients. The conglomeration of departs in the company leads the company to abyss of pandemonium because the employees do not know what to do and to expect. For instance, the customer service department should have clearly spelled out tasks and responsibility to facilitate clarity and precision. When an individual knows all the responsibilities required of him, it becomes easy to carry out the task effectively. However, failure to streamline the tasks and responsibilities will cripple the roles departments (Gilmore 2009, p.87). The employees who handle public relation must have an exquisite knowledge in communication skills to ensure that customers get appropriate satisfaction. Good communication skills will establish and maintain a good rapport between the employees and the customers the fact will eliminate the loquacious complaints. Conclusion RAECO is a good company just like any other operating in the local areas. However, the menace of customer complaints can drain away the revenue from the company. Good management, leadership, efficient organization culture is among the practices that the company should adopt to eliminate the frequent complaints from the clients. Moreover, the KPIs should guide the entire working exercise and ultimately alleviate the ability of the company in rendering quality services. References Boomer, L. (2012, September 1). Leadership, Management and Administration: What's the Difference? Accounting Today. Gilmore, S. (2009). Human resource management. Oxford: Oxford University Press. Heinrichs, K. (2013). Handbook of moral motivation theories, models, applications. Rotterdam: Sense. Martin, J. (2009). Human resource management. Los Angeles: SAGE. Quek, G. (2009, April 1). HR professionals as internal coaches: If you are performing the human resource function in an organisation, your role is changing faster than you think. Human resources plays a major role in the development of competent leaders, coaching of internal staff. Today's Manager. Schermerhorn, J. (2005). Management (8th ed.). New York: J. Wiley. Sharma, S. (2008, January 1). Human resource management--a profession in dilemma.(COMMUNICATION). Indian Journal of Industrial Relations. Stanford, N. (2010). Organisation culture: Getting it right. London: Profile. Williams, B., & Hummelbrunner, R. (2011). Systems concepts in action a practitioner's toolkit. Stanford, Calif.: Stanford Business Books. Wise, P. (2010). Leadership. Philadelphia, PA: Saunders. Read More
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