Professional Documents
Culture Documents
Learning Objectives
Use the service encounter triad to describe a service firms delivery process. Discuss the role of organizational control systems for employee empowerment. Prepare abstract questions and write situational vignettes. Discuss the role of customer as coproducer. Describe how elements of the service profit chain lead to revenue growth and profitability.
Contact Personnel
Perceived control
Customer
Definitions of Culture
Schwartz and Davis (1981) - Culture is a pattern of beliefs and expectations shared by the organizations members. Mintzberg (1989) - Culture is the traditions and beliefs of an organization that distinguish it from others. Hoy and Miskel (1991) - Culture is shared orientations that hold the unit together and give a distinctive identity.
Organizational Control
Beliefs Systems Boundary Systems Diagnostic Control Systems Interactive Control Systems To contribute Core values Identify core & mission values Risks to be avoided Critical performance variables Strategic Uncertainties To do right Specify and enforce rules To achieve Build clear targets
To create
Encourage learning
Contact Personnel
Selection 1. Abstract Questioning 2. Situational Vignette 3. Role Playing Training Unrealistic customer expectations Unexpected service failure
The Customer
Expectations and Attitudes Economizing customer Ethical customer Personalizing customer Convenience customer Customer as Co-Producer
Human
Machine
6 5
Custom er
Terrible
4 3 2 1 1
Terrible
6
Outstanding
Employee
Satisfaction Mirror
More Familiarity with Customer Needs and Ways of Meeting Them Greater Opportunity for Recovery from Errors
Better Results
Are employees encouraged to refer friends? Are referrals from the best employees given priority?
Careful Employee and Customer Selection (and Self-selection)) Employee Referrals of Potential Job Candidates High-Quality Training
Is training for job and life? Is it an important element of quality of work life?
Is satisfaction measured periodically? Are measurements linked to other functions on the cycle? Satisfied Employees
Cycle of Capability
Do they reflect needs of the service encounter? Are they designed to foster relationships?
Are they linked to service objectives? Are they balanced between monetary and non-monetary?
Appropriate Rewards and Frequent Recognition Clear Limits on, and Expectations of, Employees Do they limit the right risks? Are they logical to employees?
Does it reflect top management talk? Is it enough to allow delivery of results to customers?
External
Target market
Customers
Satisfaction
Employees
Capability Service quality
Revenue growth
Service value
Satisfaction
Loyalty
Profitability
Customer orientation/quality emphasis Allow decision-making latitude Selection and development Rewards and recognition Information and communication Provide support systems Foster teamwork
Quality & productivity improvements yield higher service quality and lower cost
Attractive Value Service designed & delivered to meet targeted customers needs Solicit customer feedback
Interactive Exercise
The class breaks into small groups and each group comes up with an example from each of the four organizational control systems (i.e., belief, boundary, diagnostic, and interactive)
Enterprise Rent-A-Car
1. How has Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company? 2. What features of its business concept allow ERAC to complete effectively with the existing national rental care companies? 3. Use the service profit chain to explain the success of ERAC.