Employee’s Role in Service Delivery

Employee’s Role in Service Delivery

Employees’ Roles in Service Delivery

• The Critical Importance of Service Employees• Boundary Spanning Roles• Strategies for Closing Gap 3

CUSTOMER

COMPANYService Delivery

GAP 3

Customer-Driven Service Designs and

Standards

Part 4 Opener

Provider GAP 3

Importance of service Employees

• People – Frontline employees and those supporting them from

behind the scenes are critical to the success of any service

organizations

• They are the service. Ex : Doctors, trainers

• They are the organization in the customer’s eyes.

• They are the brand. Ex : Financial institutes

• They are marketers. They act as walking billboard from promotional

point of view. Ex : Bank tellers cross sell bank products

Service Employees

• Their importance is evident in:– The Services Marketing Mix (People)– The Service-Profit Chain– The Services Triangle

Boundary Spanning Roles• Focus is on the frontline service employees who interact

directly with customers

• Boundary Spanners: Front line employees are referred as

Boundary spanners as they operate in the boundary of

the organization

• They perform functions in understanding, filtering and

interpreting information and resources to and from the

organization and its external constituencies

Figure 11.4

Boundary Spanners Interact with Both Internal and External Constituents

Internal Environment

External Environment

Boundary Spanning RolesEmotional Labor

• All the boundary spanners are characterized by Emotional

Labor.

• Emotional Labor is the labor that Goes beyond the physical or

mental skills needed to deliver quality service. Ex : Giving

Smile, Having Eye Contact, showing interest, friendly

conversation

• It often requires to suppress their true feelings to deliver

service

Figure 11.5

Sources of Conflict for Boundary-Spanning Workers

• Person vs. Role

• Organization vs. Client

• Client vs. Client

• Quality vs. Productivity


person/role conflict

• Boundary spanners feel conflicts between what they are asked to do and their

own personalities, orientations or values are.

• Ex: wearing of dress as per the job requirement

organization/client conflict

• Front line employees face the conflicts when te rules, regulations of the

organization are not customer centric.

• They Get in conflict when customers have excessive demands whether to obey

customers or follow the riles of organization

• Following the customer, might risk the job

• Following the organization may dissatisfy customer and so no tips.


Interclient conflict

• Conflict occurs for boundary spanners when incompatible

expectations and requirements arise from two or more

customers

• This occur when servicing customers in turn(Doctor), or

serving simultaneously(Teachers)

• Time rendered for each customer, the degree of interpersonal

relationship expected by customers


Quality/productivity conflict

• Front line workers are asked to be both effective and efficient

• Frontline employees are asked to deliver courteous service to employees

and also reach their target on time.

• This trade off between quality and quantity, and effectiveness and

efficiency put pressures on service employees

• Internal support from understanding managers and control over job task

can help employees to handle the quality/ productivity tradeoffs.

• Technology is used extensively to handle the quality and productivity

tradeoffs.

Customer-Oriented Service Delivery

Hire theRight People

ProvideNeeded Support

Systems

Retain theBest

People

DevelopPeople to

DeliverServiceQuality

Compete

for

the B

est

People

Hire for Service

Competencies and Service Inclination

Provide Supportive Technology

and Equipment

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plo

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a

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rs

Em

po

we

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mp

loy

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Be the Preferred

Employer Train for

Technical and

Interactive

Skills

Prom

ote

Team

wor

k

Measure

Internal

Service

Quality

Develop Service-

oriented Internal

Processes

Mea

sure

and

R

ewar

d S

tron

g S

ervi

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Per

form

ers

Include

Em

ployees in

the

Com

pany’s

Vision

Figure 11.6 Human Resource Strategies for Closing GAP 3

Strategies for closing GAP 3

Hire the right people

• Compete for the best people

• Hire for service competencies and Service Inclination

• Be the preferred employer

Develop people to deliver Service Quality

• Train for Technical and Interactive Skills

• Empower Employees

• Promote team work

Strategies for closing GAP 3

Provide Needed Support Systems

• Measure Internal Service Quality

• Provide Supportive Technology and Equipment

• Develop Service – Oriented Internal processes

Retain the Best People

• Include Employees in the Company’s vision

• Treat Employees as customers

• Measure and Reward strong service performers

Customer’s Role in Service Delivery

How Customers Widen Gap 3

• Lack of understanding of their roles

• Not being willing or able to perform their roles

• No rewards for “good performance”

• Interfering with other customers

• Incompatible, heterogeneous market segments

Importance of Customer in Service Delivery

• Services are produced and consumed simultaneously.

• Customer play role in efficient service delivery.

• Customers influence the service delivery in two ways

• Customer receiving the service :

– Customers can influence the widening or narrowing of the GAP3

– Depending on the Level of Customer participation in service

delivery influences the efficiency

– Level of Customer participation can be Low, Medium or High

Importance of Customers in Service Delivery

Fellow Customers

• Other customers can detract from satisfaction:

– disruptive behaviors

– excessive crowding

– incompatible needs

• Other customers can enhance satisfaction:

– mere presence

– socialization/friendships

– roles: assistants, teachers, supporters

Figure 12.2

Customer Roles in Service Delivery

Productive Resources

Contributors to Quality and Satisfaction

Competitors

Customer’s role in Service Delivery

Customers as Productive Resources

• “partial employees”

– contributing effort, time, or other resources to the production process

– In B to B, the support of client ensures efficient service delivery

• customer inputs can affect organization’s productivity

• Customers avoid in cocreation of service if they don’t benefit from it

• key issue:

– should customers’ roles be expanded? reduced?

– Customers can bring in uncertain expectations

Customer’s role in Service DeliveryCustomers as Contributors to Service Quality and Satisfaction

• Customers can contribute to

– their own satisfaction with the service

• by performing their role effectively. Ex: Health Care, Fitness Programs

• by working with the service provider

– the quality of the service they receive

• by asking questions

• by taking responsibility for their own satisfaction

• IKEA wants its customers to understand that their role is not to consume value but

to create it.

• by complaining when there is a service failure

Customer’s role in Service Delivery

Customers as Competitors

• customers may “compete” with the service provider

• “internal exchange”(produce the service themselves) vs. “external exchange”(someone

else provide service for them)

• internal/external decision often based on:

– Expertise capacity

– Resources capacity

– Time capacity

– economic rewards

– psychic rewards

– trust

– control

Figure 12.4

Strategies for Enhancing Customer Participation

EffectiveCustomer

Participation

Recruit, Educate,and Reward Customers

Define CustomerJobs

Manage theCustomer

Mix

Strategies for EnhancingCustomer Participation

Define customers’ jobs

The level of Customer participation depends on the nature of the

service.

• helping himself Ex: Land Records Kiosk

• helping others

• promoting the company. Ex: word of mouth

• Individual differences:

– not everyone wants to participate

– Few have the need for human interaction and so avoid self services.


Strategies for Recruiting, Educating, and Rewarding Customers

• Recruit the right customers

– Attracting the right customers through advertising or personal selling.

– To this customer can “self select” into or out of service.

• Educate and train customers to perform effectively

– Need to educate skill and knowledge to interact with employees and other customers

– Orientation programs are Given for certain Services

– Orientations can be Place orientation or Function Orientation. Signage can help

educating customers.

– Customers learn through observing the other customers. Companies hire customers to

demonstrate the behavior.


• Reward customers for their contribution

– Rewards can be monetary savings, psychological and

physical benefits, control over delivery process and time

savings

– Not all customers are motivated by same type of rewards

• Avoid negative outcomes of inappropriate customer

participation


Manage the Customer Mix

• Customers frequently interact with each other in the process of service

delivery

• It is necessary to handle the mix of customers who can be incompatible.

• The process of managing multiple and sometimes conflicting segments is

known as Compatibility Management

• Need to attract homogeneous customers

• Attract heterogeneous customers differently or at different time

Delivering Service through Intermediaries and Electronic Channels

Service Provider Participants

• service principal (originator)– creates the service concept

• (like a manufacturer)

• service deliverer (intermediary)– entity that interacts with the customer in the

execution of the service• (like a distributor/wholesaler)

Services IntermediariesFranchisees

– e.g., Jiffy Lube, H&R Block, McDonald’s

Agents and Brokers

• Agent is an service intermediary who acts on behalf of a service principal

• Agents can be selling agents and purchase agents

– e.g., travel agents, independent insurance agents

• Principal pays in the form of commission and not as salaries

• Broker is an intermediary who brings buyers and sellers together while assisting in

negotiations

Electronic channels

– e.g., ATMs, university video courses, TaxCut software

Table 13.1

Benefits and Challenges for Franchisers of Service

• Leveraged business format for greater expansion and revenues

• Consistency in outlets• Knowledge of local

markets• Shared financial risk and

more working capital

• Difficulty in maintaining and motivating franchisees

• Highly publicized disputes and conflict

• Inconsistent quality• Control of customer

relationship by intermediary

Benefits Challenges

Table 13.1 (Continued)

Benefits and Challenges for Franchisees of Service

• An established business format

• National or regional brand marketing

• Minimized risk of starting a business

• Encroachment• Disappointing profits and

revenues• Lack of perceived control

over operations• High fees

Benefits Challenges

Table 13.2

Benefits and Challenges in Distributing Services through Agents and Brokers

• Reduced selling and distribution costs

• Intermediary’s possession of special skills and knowledge

• Wide representation• Knowledge of local

markets• Customer choice

• Loss of control over pricing and other aspects of marketing

• Representation of multiple service principals

Benefits Challenges

Table 13.3

Benefits and Challenges in Electronic Distribution of Services

• Consistent delivery for standardized services

• Low cost• Customer convenience• Wide distribution• Customer choice and

ability to customize• Quick customer feedback

• Customers are active, not passive• Lack of control of electronic environment• Price competition• Inability to customize with highly

standardized services• Lack of consistency with customer

involvement• Requires changes in consumer behavior• Security concerns• Competition from widening geographies• Computer literacy is essential

Benefits Challenges

Strategies for Effective Service Delivery through Intermediaries

• Measurement : Appropriate rewards are Given for top performers

• Review : Terminations, non renewals, quotas are done. Expansion and encroachment are used to control

Control Strategies

• Alignment of goals• Consultation and

cooperation

• Help the intermediary develop customer-oriented service processes

• Provide needed support systems

• Develop intermediaries to deliver service quality

• Change to a cooperative management structure

Empowerment Strategies

Partnering Strategies

Employee’s Role in Service Delivery

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