Chapter1 Managing Service Enterprises

Managing Service EnterprisesChapter 1

Pio G. Castillo/BA100: Dana Tesone

Service Jobs and Managers

Service jobs require technical skills to perform job functions.

Managers are responsible for other people who perform these functions.

Service

Service consists of interactions and transactions that result in relationships among customers and staff members, which is called customer relationships.

Hospitality service enterprises are organizations that regularly engage in customer relationships.

Customer Relationships

Customer relationships may be measured by two factors.• Intimacy – the intensity of the interactions• Duration – time spent with the customers

Customer Service Relationship Model

High

Low HighDuration

Inti

macy

QSRs Airline Limited Service Lodging

Event Planner

Full Service Restaurant

Physician

Retail

Full Service Hotel

Cruise Luxury Hotel

The Hospitality Industry

It includes services in the areas of lodging, food service, travel, tourism, recreation, entertainment, personal health and fitness, attractions, social events, meetings and conventions – to which the complexity of both intimacy and duration are very high.

*Internal vs. External Customers

Service vs. Servitude

Stewardship describes the intrinsic duty of leaders to provide services to their followers everyday without being asked for assistance. They do this because they are concerned with the welfare of those individuals with whom they interact.

A path of service is a choice we make, while one of servitude is forced upon us.

Management

Management is the accomplishment of an organization’s objectives through the activities of others.

An organization is a collection of individuals brought together to achieve a common set of goals/objectives. It is made up of people who provide goods and services to customers.

Organizational Culture and Climate

The organizational culture consists of the shared values, attitudes and beliefs of workers within a specific organization. These would cause workers to engage in behaviors that are consistent with the expectations or “norms” of that organization.

The organizational climate is composed of opinions of individuals concerning the organizational culture.

“We are ladies and gentlemenserving ladies and gentlemen.”

- Ritz-Carlton

2 Broad Categories of Employees

Line workers – produce products and/or services and/or directly generate revenues for the organization.

Staff workers – perform tasks, duties and responsibilities intended to support the line workers.

Mismanagement

Mismanagement occurs when managers prove to be negligent in managing the enterprise to a reasonable standard.

*Autocratic Management

^Employee Turnover vs. Employee Retention and Sound Leadership

Management Functions

• Planning• Organizing• Influencing (Leading)• Controlling

3 Basic Levels of Management

• Supervisory Level•Middle Level Management• Senior Level Management

Management Hierarchy

Senior

Middle

Supervisory

Management Skills

Management Functions

Conceptual

Influencing

Technical

Planning

Organizing

Controlling

Management Responsibility and Risk

Management responsibility involves assuming responsibility for an area of authority.

Management risk occurs when managers engage in behaviors (ex. decision-making)

that may be detrimental to a manager’s standing in the organization.

Becoming a Manger

•Management TrainingProblem solving activitiesIntervention planningSolution optimization

Trial-and-error practiceModelingMentoring

*Training Reinforcement

Role of Supervisors

Supervision is the first level of management that oversees the work being performed by line and staff workers. As a person moves up the ladder, he spends less time supervising the performance of others and more time engaged in planning and organizing activities.

Achieving Objectives

Managers and supervisors are responsible for achieving objectives through the activities of others.