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Cover page
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Table of Contents

1.0 INTRODUCTION 3

2.0 SERVICE QUALITY 4

2.1 RELIABILITY 4
2.2 RESPONSIVENESS 5
2.3 ASSURANCE 5
2.4 EMPATHY 6
2.5 TANGIBLES 7

3.0 MANAGEMENT STRATEGIES 8

3.1 LOW MOTIVATION LEVELS 8
3.2 LACK OF ON-JOB TRAINING AND JOB DESCRIPTION 8
3.3 TEAMWORK AND LEADERSHIP 8

4.0 RECOMMENDATIONS 9

5.0 CONCLUSION 10

6.0 REFERENCES 10
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1.0 Introduction
Customer satisfaction especially in the service industry is a key component driving success or

failure of an organization. For instance, the hotel industry physical product, service

experience and quality of beverage and food form fundamental factors influencing a

customer’s perspective. In this connection, customers will evaluate a service depending on

various metric from the above mentioned key factors. For example, customers will want to

evaluate product attributes by assessing every feature of a product may it be tangible or

intangible. Prior to booking to a hotel for instance, a customer will be concerned about search

attributes and this is features of a product or service before the actual action of buying.

Mihajlović (2017) observes customers will also evaluate experience attributes mainly

informed during their stay at a hotel. Interesting some features customers may not be able to

evaluate even after leaving a hotel. After a brief board meeting it was important to review the

present state of service operations as well as management strategies at Obsidian Hill Hotel.

Noteworthy, the hotel is staring at possible business failure due to imminent deterioration of

service quality according to negative feedback given by customers. It is crucial the

management undertakes major changes at the hotel especially work on pertinent issues

relating to employees. Stakeholder theory posits employees are primary and key stakeholders

in an organization. Therefore, even before catering for the interests of customers and other

interested stakeholders an organization more so, the management should focus on meeting

the interest of workers to ensure business success. Some of these interests include, decent

pay, safety and favorable working conditions at a workplace as well as job security

(Mihajlović, 2017). Consequently, this report will evaluate various service quality

dimensions linking to Obsidian Hill Hotel, seek an understanding of present management

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strategies and how the situation can be improved via numerous recommendations at the end

of the report.

2.0 Service quality

(Amin et al, 2013) argue customer satisfaction will be a result of comparing of customer

expectations and perceptions. It is the difference between a customer’s expected quality of

service and experience gained by the customer upon receiving a service (Lo, Wu & Tsai,

2015). In order to measure service in a hotel industry SERVQUAL dimensions including

reliability, assurance, responsiveness, empathy and tangibles.

2.1 Reliability
Reliability means dependability, accuracy and consistency apparent from performing of

service by a provider (Lo, Wu & Tsai, 2015). An organization demonstrates reliability in its

service provision to customers if it delivers on its promises, pricing and problem resolution.

In the case of Obsidian Hill Hotel there are numerous cases which are evidence of lack of

reliability thus deteriorating levels of customer’s satisfaction (Amin et al, 2013). One of the

customers gave a negative feedback on the hotel’s reliability. They had been promised the

hotel room would be ready by 3:00PM and had been given guarantee for this once they will

be checking-in. it is an unfavourable incidence at the hotel because they did not keep their

promise of ensuring the room is ready by the time customer’s arrived. Additionally, they

were kept waiting for hours with attendants at the front desk giving all manner of excuses

without their room being prepared. An initial guarantee to the cited customer in the feedback

is an illustration of how clients count on their service providers. In fact, a service provider

being reliable is more times important to a customer than providers having all manner of

shiny and flashy equipment in a hotel or workers wearing flashy uniform (Yilmaz, 2009).

2.2 Responsiveness
This measure in service quality is defined as willingness shown by service attendant during

provision of service request as per requirements by a client (Amin et al, 2013). It includes
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undertaking tasks in a timely manner while remaining efficient. Some of the notable activities

illustrative of responsiveness include, friendliness, helpfulness as well as warmth of service

staff during performance of a service (Hung-Che, Ching-Chan & Chi-Han, 2016). For

instance, at the hotel a customer complains that by the time they were arriving at 3:00pm

their room was not yet ready. Such lack of preparedness when the customer who had booked

hotel rooms earlier and finds it not ready illustrates lack of responsiveness. It is a negative

service quality dimension in the case of Obsidian Hill hotel. Furthermore, the particular client

had paid fee in advance for the room which illustrates lack of timeliness in staff duties as well

as inefficiency (Hung-Che, Ching-Chan & Chi-Han, 2016). This is because an efficient staff

would have allocated an alternative room to the guests as compensation for the

inconveniences caused upon arrival.

2.3 Assurance
assurance in service quality means the degree in which service staff show and illuminate

sense of confidence and trust among clients of an organization (Amin et al, 2013). More so,

assurance includes employees in a firm demonstrating knowledge of courtesy. At the hotel

employees lack courtesy, while some do not inspire any sense of trust or confidence in their

daily routines (Rao & Chandra, 2013). One of the customer complains of staff at the lobby

being uneventful always engaged in their conversation without welcoming guests who are

checking-in to the hotel. Another case of mistrust and lack of confidence apparent at the hotel

involves lack of greeting customers upon their arrival. Additionally, the same client

complains of bell cart being grabbed from them by a service attendant who didn’t know the

name of this particular client. Ability to discern what to do upon entry into a hotel is

something customers find as difficult to handle and depend on front desk or staff at the lobby

to provide guidance. Workers at the lobby are the image of any organization as they are most

probably the first person of contact with guests (Garga & Bambale, 2016). Therefore, this

initial experience should be outstanding for customers to know if workers are confident in
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their actions (Garga & Bambale, 2016). On the contrary, the action of grabbing bell cart from

customers shows panic among affected staff and may injure the reputation of the hotel due to

such unfortunate event (Martin, 2009). Such an incidence is evidence of negative service

dimension at Obsidian Hill Hotel.

2.4 Empathy
Empathy refers to the act of showing care while demonstrating a personal attention to

customer needs. This particular dimension depicts staff within the service industry have an

understanding of client’s feeling either positive or negative (Amin et al, 2013). Three

particular situation illustrate lack of empathy among hotel staff at Obsidian towards their

clients. Firstly, a client complains the experience at the hotel as horrible especially informed

by the hotel cancelling their reservation due to travel problems (Lima & Vicente, 2017).

Nevertheless, the hotel staff do not give an explanation or inform the clients of the hotel’s

intended cancellation or give an apology when the customers showed up. In addition, the

same customer who was in company of family had put a sign indicating “do not disturb”

however, no staff member respected their wish and kept checking-in to this particular client

room (Shergill & Sun, 2004). Secondly, the hotel staff does not show concern to couple

celebrating their honeymoon in a bid to show the kind gesture of showing concern of this

eventful to the customer. Finally, the last feedback the customer complains even after raising

concern with one of the employees that their room was not thoroughly cleaned the worker

does not take action of helping them (Noe, Magnini & Uysal, 2010). On the contrary, she

shows lack of an understanding of client’s plight by saying they should complain about the

bad service knowing not every cleaner at the hotel was qualified or even trained. All these

incidences are evidence of deteriorating service at the hotel due to negative service

dimension.
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2.5 Tangibles
As a component of service quality dimension it entails nature of physical facilities in relation

to their appearance, how customers perceive equipment, personnel and materials used by

service providers (Amin et al, 2013). Several customers perceive negatively tangibles at the

hotel including facilities, materials used and workers. For example, one customer describing

the experience as horrible intimate most of the staff had a bad attitude and would engage in

arguing with customers without any show of assurance (Esmaeilpour, Sayadi & Mirzaei,

2017). An additional customer laments the room was not impressive apparent from the odd

shape, cramped and rundown. In the same room the bathroom shower and toilet were in poor

state prompting the client to spend as less time as possible in the room. This is evidence of

negative service tangible due to the bad state of rooms, poor attitude shown by workers and

materials used in cleaning are not helpful as some clients complain of bad hotel feng shui.

On the positive perspective the hotel has some positive service quality dimension within the

tangibility aspect especially on staff attitude (Garga & Bambale, 2016). Irrespective of the

hotel being aged there is a customer who compliments the location and service experience at

the hotel. Apparent from the experience of nice staff at the Front Desk with their check in

being facilitated early and checking out late without being hurried.

3.0 Management strategies

3.1 Low motivation levels
Obsidian Hill Hotel is deteriorating on service quality and management because of low

motivation levels among employees. Workers complain of long working hours without

consummate pay. Lack of participation in daily activities among employees especially

decision making as the management ceased holding daily departmental briefs (Garga &

Bambale, 2016). Moreover, the workplace is characterized by a busy schedules and high

levels of bureaucracy which limits potential of staff. A high performing organization

understands the needs of its employees by attending to their social and economic needs.
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(Garga & Bambale, 2016) As a result, improving the levels of motivation among workers

which translates to high levels of performance leading to better company results.

3.2 Lack of on-job training and job description

similar to revelation realized through customer complaints, it is evident staff working at the

hotel are untrained or unskilled. Consequently, some workers do not their daily job duties

especially in welcoming guests and cleaning their rooms as well as the level of customer

service at the organization is beyond reproach (Hoque, 2000).

3.3 Teamwork and Leadership

A successful organization has dynamic and cohesive teams working towards the common

goal of improved organizational value (Hoque, 2000). Obsidian Hill Hotel has a positive

management strategy evident from employee comment there are certain benefits of working

in teams. Further, manager at the hotel embodies good leadership skills by promoting

efficient communication apparent from constructive flow of feedback and has engaged team

leaders in training activity. However, seems a gap in leadership ability exists between team

leaders and junior staff members causing the dysfunction in service quality at the point of

interaction between service attendants and customers (Hoque, 2000).

4.0 Recommendations
improving service quality and experience at Obsidian Hill Hotel will require a change in

management strategies. Firstly, management need to hire competent and qualified staff

including team leaders and junior employees. Hiring new workers will be significant to

introducing culture change at the hotel as well as bring on board new talent trained and

skilled in service industry.

Secondly, even though the first recommendation entails hiring new employees the hotel

should not lay off everyone in the organization (Fitz-enz, 2009). Management should

consider introducing key performance metrics for every department and this is replicated and

undertook by each employee. For example, at the human resource department needs to
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introduce an evaluation scheme for all of its employees in terms of performance and maybe

have rewards based on performance. The Front Office needs to have metrics such as turn-

over time depending on time spent by customer at the lobby to the time of checking-in to

their rooms, number of customer complaints handled and resolved at the front desk.

Thirdly, the management needs to introduce a training program especially communication

and need for team leaders to embrace often unit meeting to iron issues faced by employees.

An additional training in respect to technology update for employees especially in service

industry is also important to aid service experience among staff.

Finally, disgruntled employees exhibit low motivation levels if they are working under-

inhumane conditions such as long standing hours and poor pay (Kirkpatrick, 2006).

Therefore, the hotel management need to consider revising its working hours maybe

introduce rotational shifts to enable workers to enjoy day break and this will create a happy

workforce leading to an improved organizational performance experience.

5.0 Conclusion
Service industry such as the hotel industry highly depends on customer satisfaction levels as a

way of measuring organizational performance as well as its business success. In order to

evaluate different performance in hotel industry such as with the case study of Obsidian Hill

Hotel it is crucial to apply the SERVQUAL model to analyze existing service quality. Some

of the dimensions evaluated in this case study report include assurance, tangibles,

responsiveness, reliability and empathy. The investigation and analysis establish areas of

service the hotel is poorly performing especially employee attitude and competence.

Therefore, the report recommends an overhaul of existing management strategies and focus

more engaging of employees including junior workers in day to day activities.

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6.0 References
Amin, M., Yahya, Z., Ismayatim, W. A., Nasharuddin, S. Z., & Kassim, E. (2013). Service

Quality Dimension And Customer Satisfaction: An Empirical Study In The Malaysian Hotel

Industry. Services Marketing Quarterly, 34(2), 115-125.

Http://Web.B.Ebscohost.Com/Ehost/Pdfviewer/Pdfviewer?Vid=1&Sid=4b011e59-529a-4fdf-

9314-448791b8ee2a%40sessionmgr103

Yilmaz, I. (2009). Measurement Of Service Quality In The Hotel Industry. Anatolia: An

International Journal Of Tourism & Hospitality Research, 20(2), 375-386.

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4226-8f7d-01a87c75fe0b%40sessionmgr104

Shergill, G. S., & Sun, W. (2004). Tourists' Perceptions Towards Hotel Services In New

Zealand. International Journal Of Hospitality & Tourism Administration, 5(4), 1-29.

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940c-C2a81dcbe791%40sessionmgr120

Esmaeilpour, M., Sayadi, A., & Mirzaei, M. (2017). Investigating The Impact Of Service

Quality Dimensions On Reputation And Brand Trust. International Journal Of Business &

Economic Sciences Applied Research, 10(3), 7-17.

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Lima, R., & Vicente, P. (2017). Exploring The Relationship Between Hostel Service Quality

And Guests' Satisfaction: A Comparison Between Younger And Older Guests. E-Review Of

Tourism Research, 14(5/6), 242-257.

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4c75-A9f8-2f4ccd44e14b%40pdc-V-Sessmgr01

Lo, A., Wu, C., & Tsai, H. (2015). The Impact Of Service Quality On Positive Consumption

Emotions In Resort And Hotel Spa Experiences. Journal Of Hospitality Marketing &

Management, 24(2), 155-179.

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Mihajlović, N. (2017). THE ANALYSIS OF SERBIAN CUSTOMERS SATISFACTION

WITH E-SERVICES QUALITY DIMENSIONS OF LODGING E-

INTERMEDIARIES. European Journal Of Applied Economics, 14(1), 48-62.

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Hung-Che, W., Ching-Chan, C., & Chi-Han, A. (2016). A Study Of Exhibition Service

Quality, Perceived Value, Emotion, Satisfaction, And Behavioral Intentions. Event

Management, 20(4), 565-591. Http://Web.B.Ebscohost.Com/Ehost/Pdfviewer/Pdfviewer?

Vid=1&Sid=F3f81d6d-0fb5-4740-85d6-78ac8506893a%40sessionmgr120

Garga, E., & Bambale, A. J. (2016). The Impact Of Service Quality On Customer Patronage:

Mediating Effects Of Switching Cost And Customer Satisfaction. International Journal Of

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Global Business, 9(1), 39-58. Http://Web.B.Ebscohost.Com/Ehost/Pdfviewer/Pdfviewer?

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Rao, A., & Chandra, S. (2013). The Little Book Of Big Customer Satisfaction Measurement.

New Delhi: Sage Publications Pvt. Ltd.

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Martin, W. B. (2009). Quality Customer Service: Satisfy Customers--It's Everybody's Job.

[Rochester, N.Y.]: Axzo Press.

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Noe, F. P., Magnini, V. P., & Uysal, M. (2010). Tourist Customer Service Satisfaction : An

Encounter Approach. London: Routledge.

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Hoque, K. (2000). Human Resource Management In The Hotel Industry : Strategy,

Innovation And Performance. London: Routledge.

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Kirkpatrick, D. L. (2006). Improving Employee Performance Through Appraisal And

Coaching. New York: AMACOM.

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Fitz-Enz, J. (2009). The ROI Of Human Capital : Measuring The Economic Value Of

Employee Performance. New York: AMACOM.

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