1. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Chapter 7 QUALITY ORGANIZATIONS AND SERVICE

2. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved “There are only two qualities in the world: efficiency and inefficiency, and only two sorts of people: the efficient and the inefficient.” George Bernard Shaw

3. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved OBJECTIVES Define productivity and its impact on organizational success Identify and define directional statements Know the various types of plans used in an organization Define the primary business functions and their purpose in an organization Define quality and its importance in business State the difference between a product, a good, and a service Define creativity and innovation Identify and describe the importance of customers and customer service Describe how to handle a difficult customer

4. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved PRODUCTIVITY IN THE WORKPLACE Productivity: to perform a function that adds value to the company Whatever you produce (output) should add value to the company Productivity at work starts with: –Ethics –Attitude –Goals

5. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved PRODUCTIVITY IN THE WORKPLACE Mission Statement: a statement of purpose (what and why) Vision Statement: a company’s viable view of the future (where) Values Statement: standard of behavior (how) Directional Statements: foundation for why a company exists and how it will operate (mission, vision, and value)

6. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved PRODUCTIVITY IN THE WORKPLACE Company Strategy Strategy: outlines major goals and objectives and serves as a company roadmap Strategic plan: a formal document that identifies how the company will secure, organize, utilize, and monitor its resources Company resources –Human (employees) –Fiscal (financial) –Capital (long-term investments)

7. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved PRODUCTIVITY IN THE WORKPLACE Company Strategy Goal: broad statement or aim Objectives: short-term goals (activities) that support a goal; objectives have timelines and are measurable

8. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved LINES OF AUTHORITY Organizational structure: the way a company is organized Organization chart: a graphic display of the formal lines of authority. –Identifies key functions within the company President Marketing Vice President Operations Vice President Finance Vice President Mgmt. Info. Systems Vice President SalesAdvertisingProductionDistribution Accounting Director Computer Accounts Receivable Supervisor Accounts Payable Supervisor Figure 7-1

9. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Investors/ Owners Board of Directors President/C.E.O. Senior Management (Vice Presidents) Middle Management (Directors, Managers) Operation Managers (Supervisors, Assistant Managers) Employees Company Structure: Key Titles LINES OF AUTHORITY The Leader-reports to Board Responsible for overall strategy and policies Assists President/CEO in identifying and implement company strategy Work on tactical issues (link strategy into day-to-day operations Work on operational issues (daily issues) Figure 7-2

10. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved LINES OF AUTHORITY Major Organizational Functions Divisions: major functions within a business Departments: carry out specific functions within divisions Key business functions –Finance and accounting –Human resource management –Operations –Information systems –Marketing –Legal counsel

11. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved LINES OF AUTHORITY Finance and Accounting Department: department responsible for securing the distribution and growth of a company’s financial assets –Capital budget: long-term investments –Operational budget: short-term items

12. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Human Resources: responsible for recruiting, hiring, training, evaluating, compensating, promoting, and terminating employees –Deals with the employee (people) side of business LINES OF AUTHORITY

13. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Operations: deals with the production and distribution of the company’s product Information Systems (IS): deals with electronic management of information within an organization Routinely back-up files Empty electronic trash bin Conduct routine virus checks Responsible for reported computer viruses and system problems LINES OF AUTHORITY

14. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Marketing Department: responsible for creating, pricing, selling, distributing, and promoting the company’s product –Every employee is a walking billboard for the company Legal Counsel: handles all legal matters relating to the business –Check with company legal counsel prior to engaging in a contract on behalf of the company LINES OF AUTHORITY

15. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY AND THE COMPANY A building, its employees, and the product produced are major elements that define a company, but a company needs customers to succeed Each job in the company has a purpose Do your best at all times

16. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY AND THE COMPANY Important Company Elements Quality Customer loyalty Employee loyalty Profit

17. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY AND THE COMPANY Quality Quality: a predetermined standard that defines how a product is to be provided –Customers demand quality in the product and from the company’s employees –If customers don’t perceive that they have received a quality product, they will not make a repeat purchase

18. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY AND THE COMPANY Customer Loyalty Customers will repeat purchases when they receive value and a quality product Companies want to build brand loyalty with customers Customers will be loyal to a company and its products when quality products and customer service are consistently provided

19. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY AND THE COMPANY Employee Loyalty Employee loyalty: an employee’s obligation to consistently support a company and its mission –Do your job and do it well –Show respect for company policies, your coworkers, and the company’s customers –Promote the company and its products –Do not speak poorly of your company, coworkers, or the company’s product

20. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY AND THE COMPANY Profits The success of a company depends on profit Profit: revenue minus expenses –Revenue: money coming in from sales –Expenses: costs involved in running the business As profits increase, the company can grow

21. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved TALK IT OUT Identify common money wasters in the workplace

22. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY AND THE COMPANY Product vs. Good vs. Service Product: what is produced by a company; this can be a good, a service, or both Good: a tangible item, something that you can physically see or touch Service: an intangible product, in other words, you cannot touch or see the product

23. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved WHO IS THE CUSTOMER? Customer: an individual or business that buys or uses the company’s product A company cannot survive without customers Internal customers exist within a company –Coworkers and other departments External customers are individuals who the company serves outside –Customers, vendors, and investors

24. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved WHO IS THE CUSTOMER?  To create a satisfied customer, you need a high-quality product or service and excellent customer service = Quality Products = Satisfied, Loyal Customers = Profits = Quality Products = Satisfied, Loyal Customers = Profits Quality Employees + Quality Inputs

25. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved QUALITY When it comes to quality, the expectation of customers is high Customers expect that a product will last Value: when customers believe they are getting a good deal for the price they paid –Customers expect value –Customers measure product quality by comparing your product to similar products

26. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved CREATIVITY and INNOVATION Creativity: coming up with a new and unique good, service, or system. A creative person will ask, “what if” instead of being constrained by the barrier of an item’s or service’s original use Innovation: process of turning a creative idea into reality

27. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved EXCELLENT CUSTOMER SERVICE DEFINED Customer Service: the treatment an employee provides a customer –Respect and kindness –Competent: an employee who knows the product his or her company offers –Dependable : an employee who is reliable and takes responsibility to assist a customer –Responsive: an employee that provides a customer personal attention

28. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved EXCELLENT CUSTOMER SERVICE Impressions As soon as a customer comes in contact with a business, an opinion is formed about that business There is only one first impression, so it must be good The appearance of the building and/or employees can be the reason a customer comes to your company in the first place

29. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved TALK IT OUT What customer body language would indicate a customer needs help and what body language would indicate a customer wants to be left alone?

30. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved THE IMPACT OF CUSTOMER SERVICE Get to know your customers Excellent customer service is the biggest reason customers return Build a relationship with the customer that will make him or her loyal to you and your business A business needs satisfied customers to not only make repeat purchases, but also to tell others about their favorable experience

31. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved TALK IT OUT Discuss the difference between a service and customer service.

32. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved THE DIFFICULT CUSTOMER “The customer is always right”  The customer may not be right  Although the customer may be wrong, adopt an attitude that the customer is unhappy and do all you can to help the customer solve the problem  Have patience and sympathize with the customer

33. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved THE DIFFICULT CUSTOMER Tips for Handling the Customer Stay calm, let the customer talk, and listen for facts—let the customer vent for a few minutes, do not interrupt or say “please calm down:” do not take harsh words personally Watch body language—tone of voice, eye contact, and arm movement; if you feel a customer has the potential to become violent or physically abusive, immediately seek assistance Acknowledge the customer’s frustration—say, “I can understand why you are upset,” and summarize the concern to let him or her know you understand

34. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved THE DIFFICULT CUSTOMER Tips for Handling the Customer (cont.) Make sure the problem gets solved—try to take care of the problem yourself Know company policy—if a customer challenges a policy, calmly and politely explain the purpose of the policy Expect conflict, but do not accept abuse—if a customer shows aggressiveness or is cursing, politely tell that customer you cannot help until he or she is able to treat you in a respectful manner; if he or she continues the inappropriate behavior, immediately call a supervisor

35. Professionalism, 3 rd Edition Lydia E. Anderson & Sandra Bolt © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved TALK IT OUT If a customer is angry with a raised voice, what would you say to that customer?