Leveraging the People Factor

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Presentation transcript:

Leveraging the People Factor

Service Employees and Their Behavior Why Are Employees So Important? Are All Service Employees Equally Important? Which Are More Important: Technical Skills or Social Skills? Ensuring Employee Excellence Copyright © Houghton Mifflin Company. All rights reserved.

Boundary Spanners Boundary spanners (contact personnel) Frontstage employees who link an organization with its customers. Represent the service in the customers’ eyes. Technical skills Proficiency with which service employees perform their tasks. Social skills Manner in which service employees interact with customers and fellow workers. Copyright © Houghton Mifflin Company. All rights reserved.

Boundary Spanning: A Representation Drama Aspects: 1. Operate the “frontstage” 2. Must attend to “personal front” 3. Success depends on “performance” Boundary Spanner Functions: 1. Information processing 2. External representation Bowen and Schneider (1985) Copyright © Houghton Mifflin Company. All rights reserved.

Functions of Service Personnel/Actors Add tangibility to the service. Act as source of information in the commonly ambiguous service situation and help the customer to cognitively frame the service encounter. Often perceived as the service itself. Customer satisfaction is influenced by the quality of the interpersonal interaction between the customer and the contact employee. Copyright © Houghton Mifflin Company. All rights reserved.

How to Ensure Satisfying Service Encounters Through Employees Must possess both "technical" and "social" skills (Davidow and Uttal 1989; Grönroos 1985, 1990). Willing and capable of performing the tasks required of them. (Berry and Parasuraman 1991; Schneider and Bowen 1995). Amount of effort the customer perceives the service employee expending (Mohr and Bitner 1994). Getting them to engage in extra-role performance (Bettencourt and Brown 1993; Organ 1990). Copyright © Houghton Mifflin Company. All rights reserved.

How to Ensure Satisfying Service Encounters Through Employees (cont’d) Requires a worker who is empathetic, flexible, and inventive (Henkoff 1994). Employees must appear to enjoy their jobs and the customers (Price, Arnould and Tierney 1995), i.e. impression management. Copyright © Houghton Mifflin Company. All rights reserved.

What Should Be Done to Ensure Employee Excellence? Hire intelligently Train intensively & continuously Monitor incessantly Reward inspirationally Copyright © Houghton Mifflin Company. All rights reserved.

responding to employees' needs or wants, and Internal Marketing Policy of treating employees as internal customers of the organization, responding to employees' needs or wants, and promoting the organization and its policies to the employee. Copyright © Houghton Mifflin Company. All rights reserved.

The management practice of sharing with frontline employees: Empowerment The management practice of sharing with frontline employees: information, rewards, knowledge, and Power Allows them to better respond to customers’ needs and expectations. Copyright © Houghton Mifflin Company. All rights reserved.

Benefits of Empowerment Quicker responses to customer needs during service delivery. Quicker responses to dissatisfied customers during service recovery. Greater employee satisfaction with jobs and themselves. Employees will act more warmly and enthusiastically with customers. Empowered employees are a great source of ideas. Great word-of-mouth communication and retention. Copyright © Houghton Mifflin Company. All rights reserved.

Greater monetary investment in selection and training. Costs of Empowerment Greater monetary investment in selection and training. Higher labor costs. Slower or less consistent service delivery. Possible violations of fair play. Giveaways and bad decisions. Copyright © Houghton Mifflin Company. All rights reserved.

Definition of Discretionary Effort The difference between the maximum effort one can bring to a task and the minimum effort needed simply to get by. Copyright © Houghton Mifflin Company. All rights reserved.

Fig. 2.4 Copyright © Houghton Mifflin Company. All rights reserved.

Fig. 2.4 Copyright © Houghton Mifflin Company. All rights reserved.