Quality Organizations and Service - myCSU · • Knowing how organizational structures and ... is organized • Organization ... getting a good deal for the price they paid

Copyright © 2016, 2013, 2011 Pearson Education, Inc. 1

7Quality

Organizations and

Service


PERFORMANCE

PROFITS

CUSTOMERS


After studying these topics, you will benefit by:

• Knowing how organizational structures and

functions influence quality and customer

satisfaction

• Naming the key elements and purpose of a

company strategy

• Illustrating and interpreting an organizational

chart

• Defining quality and its importance in business


After studying these topics, you will benefit by:

• Researching methods of increasing one’s

creativity and innovation

• Explaining how customer service affects

performance and profits

• Describing how best to handle a difficult

customer


PRODUCTIVITY IN A

QUALITY-FOCUSED 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


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)



Company Strategy

• Strategy: outlines major goals and objectives and serves as a company road map

• Strategic plan: a formal document that identifies how the company will secure, organize, use, and monitor its resources

• Company resources

– Human (employees)

– Fiscal (financial)

– Capital (long-term investments)



Company Strategy

• Goal: a target. Describes what needs to be

achieved

• Objectives: short-term goals (specific

activities) that support a goal; objectives

have timelines and are measurable


TOPIC SITUATION

Juan Joins a Committee

What additional advantages will Juan gain if

he joins the committee? How can Juan

prepare for this experience?


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

Sales Advertising Production DistributionAccounting

DirectorComputer

Accounts

Receivable

Supervisor

Accounts

Payable

Supervisor

Figure 7-1


TOPIC SITUATION

Lucia Meets the CEO

Why should you know a company’s

organizational structure and identities of key

executives?


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


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


LINES OF AUTHORITY

• Finance and Accounting: area responsible

for securing the distribution and growth of a

company’s financial assets

– Capital budget: long-term investments

– Operational budget: short-term items


• Human Resources: area responsible for

recruiting, hiring, training, evaluating,

compensating, promoting, and terminating

employees

– Deals with the employee (people) side of

business

LINES OF AUTHORITY


• Operations: area that 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


• Marketing: area 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


TOPIC SITUATION

Max Orders Supplies

What should Max do? Justify your response.


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


THINK ABOUT IT

Why do some employees not care about quality?



Important Company Elements

Quality

Customer loyalty

Employee loyalty

Profit



• 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



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

• Value: customers believe they received a good deal for the price they paid



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



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



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


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 Employees + Quality Inputs


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


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


TALK IT OUT

Discuss the difference between a service and

customer service.


EXCELLENT CUSTOMER SERVICE

DEFINED

• 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 whom the

company serves outside

– Customers, vendors, and investors



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 who provides a

customer personal attention



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


TALK IT OUT

How does personal appearance influence a

customer’s trust and perception of you?


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


TALK IT OUT

How should you handle a situation when you

observe a verbal conflict between two

employees that is taking place in front of a

customer?


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


THINK ABOUT IT

How do you normally respond to conflict?

Does your response hinder or help you provide

appropriate service to a difficult customer?


TOPIC SITUATION

Kiana and Customer Service

What specific actions did the pizza shop take

to display excellent customer service to

Kiana?



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



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


TALK IT OUT

If a customer is angry, with a raised voice,

how should you respond to that customer?

Quality Organizations and Service - myCSU · • Knowing how organizational structures and ... is organized • Organization ... getting a good deal for the price they paid

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