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Managing People - M3

Managing people

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Kurian Alex
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28 views

Managing People - M3

Managing people

Uploaded by

Kurian Alex
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Managing People for

Service Advantage
MBA Elective Sem 3

Dr. Aby Abraham


Simulation Submission- After 4th round
• Folders available in the Teams- Under Files
• Make submissions
Luby’s Inn, Texas
https://admin.brain-sharper.com/social/waitress-grumpy-veteran-fb/

Melina Salazar Walter


$50,000
Service Employees Are
Crucially Important
Service Personnel(staff): Source of
Customer Loyalty & Competitive Advantage

• Customer’s perspective: encounter with service staff is most


important aspect of a service
• Firm’s perspective: frontline is an important source of
differentiation and competitive advantage
• Frontline is an important driver of customer loyalty
• Anticipating(do in advance) customer needs
• Customizing(modifying) service delivery
• building personalized relationships
Frontline in Low-Contact Services
• Many routine transactions are now conducted
without involving frontline staff, e.g.,
• ATMs (Automated Teller Machines)
• IVR (Interactive Voice Response)
systems
• Websites for reservations/ordering,
payment, etc.
• However, frontline employees remain crucially
important
Factors Contributing to the
Difficulty of Frontline Work
Role Stress in Frontline Employees

• Organization vs. Client : whether to follow company rules or to


satisfy customer demands
• This conflict is especially serious in organizations that are not
customer- oriented
• Person vs. Role: Conflicts between what jobs require and what
employee’s own personality and beliefs
• Client vs. Client: Conflicts between customers that demand
service staff interference i.e (service staff needs to be there if
there is any conflict between clients.
Cycles of Failure, Mediocrity,
and Success
Cycle of Failure
• The employee cycle of failure
• Narrow job design for low skill levels.
(complicated job for non skilled worker)
• Emphasis(focus) on rules rather than service
• Use of technology to control quality
• Bored employees who lack ability to respond
to customer problems
• Customers are dissatisfied with poor service
attitude
• Low service quality
• High employee turnover ( more than the
employee skills)
Cycle of Failure

• The customer cycle of failure


• Repeated emphasis(focusing)
on attracting new customers
• Customers dissatisfied with
employee performance
• Customers always served by
new faces
• Ongoing search for new
customers to maintain sales
volume
Cycle of Failure

• Costs of short-sighted policies are ignored:


• Constant expense of recruiting, hiring, and training
• Lower productivity of inexperienced new workers
• Higher costs of winning new customers to replace those lost—more
need for advertising and promotional discounts
• It’s a big loss of revenue from dissatisfied customers who turn to
alternatives
• It's a loss of potential customers who are turned off by negative word-
of-mouth
Cycle of mediocrity
Cycle of Success
• Longer-term view of financial
performance; firm seeks to prosper by
investing in people
• Attractive pay and benefits attract better
job applicants
• More focused recruitment, intensive
training, and higher wages make it more
likely that employees are:
• Happier in their work
• Provide higher quality, customer-pleasing
service
Cycle of Success

• Broadened job descriptions with empowerment practices enable


frontline staff to control quality, facilitate service recovery
• Regular customers more likely to remain loyal because they:
• Appreciate continuity in service relationships
• Have higher satisfaction due to higher quality
Human Resources
Management –
How to Get it Right?
Hire the Right People

The old saying ‘People are your most important asset’ is wrong.

The RIGHT people are your most important asset.

Jim Collins
Be the Preferred Employer
• Create a large pool: “Compete for Talent Market Share”
• Select the right people:
• Different jobs are best filled by people with different skills, styles, or
personalities
• Hire candidates that fit firm’s core values and culture
• Focus on recruiting naturally warm personalities for customer-contact
jobs
Tools to Identify Best Candidates
• Employ multiple, structured interviews
• Use structured interviews built around job requirements
• Use more than one interviewer to reduce “similar to me” biases
• Observe behavior
• Hire based on observed behavior, not words you hear
• Best predictor of future behavior is past behavior
• Consider group hiring sessions where candidates are given group
tasks
Tools to Identify Best Candidates
• Conduct personality tests
• Willingness to treat co-workers and customers with courtesy,
consideration, and tact
• Perceptiveness) feeling of understanding( regarding customer needs
• Ability to communicate accurately and pleasantly
• Give applicants a realistic preview of the job
• Chance for candidates to “try on the job”
• Assess how candidates respond to job realities
• Allow candidates to self select themselves out of the job
Train Service Employees
Service employees need to learn:
• Organizational culture, purpose, and strategy
• Promote core values, get emotional commitment to strategy
• Get managers to teach “why,” “what,” and “how” of job
• Interpersonal and technical skills
• Product/service knowledge
• Staff’s product knowledge is a key aspect of service quality
• Staff must explain product features and position products correctly
Motivate and Energize the Frontline

• Use full range of available rewards effectively, including:


• Job content
• People are motivated knowing they are doing a good job
• Feedback and recognition
• People derive a sense of identity and belonging to an organization from
feedback and recognition
• Goal accomplishment
• Specific, difficult but attainable, and accepted goals are strong
motivators
Service Leadership
and Culture
Service Leadership and Culture
• Charismatic/transformational leadership:
• Change frontline personnel’s values and goals to be consistent with the
firm
• Motivate staff to perform at their best
• Service culture can be defined as:
• Shared perceptions of what is important , shared values , beliefs of
why they are important.
A strong service culture focuses the entire organization on the
frontline, with the top management informed and actively
involved
Internal Marketing
• Necessary in large service businesses that operate in widely
dispersed sites
• Effective internal marketing helps to:
• Ensure efficient and satisfactory service delivery
• Achieve harmonious and productive working relationships
• Build employee trust, respect, and loyalty
Summary
• Service employees are crucially
important to firm’s success
• Source of customer loyalty and
competitive advantage
• Frontline work is difficult and
stressful; employees are
boundary spanners, undergo
emotional labor, face a variety of
conflicts
• Understand cycles of failure,
mediocrity, and success
Summary

• Know how to get HRM aspect right


• Hire the right people
• Identify the best candidate
• Train service employees actively
• Empower the frontline
• Build high-performance service delivery teams
• Motivate and energize people
• Unions have a role to play
• Understand role of service culture and service leadership in
sustaining service excellence

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