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SHAHRUL NIZA BIN SAMSUDIN
A thesis submitted
in fulfillment of the requirements for the degree of
Master in Business Administration (Technology and Innovation Management)
Institute of Technology Management and Entrepreneurship
UNIVERSITI TEKNIKAL MALAYSIA MELAKA
Electricity Breakdown Management in Malaysia: A Case Study on Tenaga Nasional Bemad
SHAHRUL NlZA BIN SAMSUDIN MARCH 2009
Dato' Professor Dr. Abu Bakar bin Mood. Yusof Institute of Technology Management and Entrepreneurship
Managing electricity utility company has become a critical issue as all utility company all around the world faces many of the same challenges. On 1st September 1990, Prime Minister Dato' Seri Dr. Mahathir bin Mohamad officially proclaimed TNB as the heir and successor to NEB. Public-listed TNB is the largest electricity utility company in Malaysia with more than RM65 billion in assets and a customer base of about 6.8 million throughout Peninsular Malaysia and Sabah. This case study will see if TNB has improved their services, especially in electricity breakdown management. It will look deep in service quality, electricity breakdown management and communication performance. This case study indicates 50.9% of the respondents agree TNB provided most ot their electricity needs and 59.3% disagree that other utility company in other country possess higher service quality than TNB. 61.5% of the respondents believe TNB need to improve their power quality in the power system
CHAPTER 1 INTRODUCTION
1.1 Background of Study
Current research on service quality has shown that customers think in terms of adequate and desired expectation and develop a "zone of tolerance" when evaluating service quality. This is the extent to which customers recognize and are willing to accept a variation in the service. So, the objective of the service provider would be to remain as close to the desired level and as far as possible (on the positive side with cost consideration) from the adequate level. In a way, we can say that this objective emulates the philosophy of any multi-criteria decision making method, where we need to minimize the distance from the positive ideal solution (PIS) and maximize the distance from the negative ideal solution (NIS).
In the services marketing literature, this approach of optimizing the distance between the desired and the adequate service levels has not been discussed. Moreover, services marketing literature talks about arranging the zone of tolerance levels by
attributes according to their levels of importance (Zeithaml and Bitner, 2003), but does not attempt to find out an overall value of the service. Further, the performance of a service organization on all the attributes and dimensions of service quality may not always move in the same direction. To improve on the responsiveness to electricity breakdown management, Tenaga Nasional Berhad (TNB) designed various ways and methods to solve and eliminate any barriers with the customers, but may not be in a position to sit with each customer and explain to the customers all the management barriers in detail.
Traditional SERVQUAL-based gap model approach cannot handle such a compromising situation, where improvement in one attribute may be at the cost of deterioration in the other. The company has at least to become the best performer in providing quality service to its customers. The objective of the study is to assess and compare the effectiveness of measuring the effectiveness of electricity breakdown management handled by TNB by using gaps approaches, viz., modified Gap Model (parasuraman et ai., 1985, 1991). In this study, we also attempt to develop a framework for measuring electricity breakdown management service quality using these methods. Research on measurement of service quality has been considered important by both practitioners and academicians over more than a decade. Gap model based on the SERVQUAL instrument is a well-known and widely-used measurement approach.
The empirical evidence for this paper is provided by data on the service quality for Tenaga Nasional Berhad (TNB). The service quality evaluations obtained from these three unit namely TNB's management staff, TNB's technical staff and TNB's
customers are compared and tested for their effectiveness, thereby placing the gap model amongst a set of appropriate methods in measuring this tangible construct.
It has been held TNB is valuable which project an image of quality and reliability. However, there is evidence that this relationship may not hold which have not been found to be reliable indicators of service quality or customer behavior relating to perceive quality. Customer must satisfy or they will go somewhere else. However, since TNB is the one and only electricity utility company in Malaysia, the customer has no choice but to trust TNB as their source of needs.
Electricity first made its appearance in this country at the turn of the century, and the earliest record of power generation can be traced back to a small mining town in Rawang, Selangor. Here, two enterprising individuals Loke Yew and Thamboosamy Pillai installed an electric generator in 1894 to operate their mines; they were the first to use electric pumps for mining in Malaya, and marked the great beginning of the story of electricity in Malaysia. In the same year, private supply for street lighting purpose was extended to Rawang town, and in 1895 the railway stations in Kuala Lumpur received its first electricity supply. In 1900, the Sempam Hydroelectric Power Station in Raub, built by Raub Australian Gold Mining Company became the first power station in Malaysia.
Until the mid twenties, most generating plants were small and used a variety of fuel including low grade coal, local wood, charcoal and important oil as well as water power. As the rapid increase in electricity demands continued to manifest; large scale
planning, huge sums of capital from overseas and hiring of foreign technical experts became essential.
Hence, the Central Electricity Board (CEB) was established and came into operation on 1 September 1949. The Board was to become heir to three major projects considered by the Electricity Department following its re-establishment in April 1946. The major projects were Connaught Bridge Power Station, Cameron Highlands Hydroelectric Project and development of a National Grid.
CEB became owner to 34 power stations with a generation capacity of 39.88 MW, including a steam power station in Bangsar with a capacity of 26.5 MW, a hydroelectric power station at Ulu Langat with a capacity of 2.28 MW as well as various diesel affairs with a total capacity of 11.1 MW.
CEB also became owner to both transmission and distribution systems above and below ground valued at close to thirty million dollars, as well as the impressive list of 45,495 consumers and staff of 2,466.
The age of private generators has come to an end, and all walks of life continue to enjoy fair share of electricity. For this, we sincerely thank the government for recognizing the central role of the power industry in developing the nation's economy and social growth.
On the glorious day of 31 August 1957, Almarhum Tunku Abdul Rahman declared the Independence of Malaya (now known as Malaysia); the word "Merdeka"
was proudly pronounced seven times at the Merdeka Station, and the nation rejoiced. This significant day was also the beginning of Malayan is at ion.
In order to materialize the success of Malayanisation, more local engineers and technocrats were needed in this demanding field to replace expatriates in the Board. Hence, in 1951, three local Shift Engineers - Abu Zarim bin Haji Omar, Tengku Daud bin Tengku Besar Burhanuddin and Tengku Yaacob Shah left for training in the British Electrical Authority, United Kingdom. From 1954 to 1957, more Malaysians were sent overseas to acquire professional qualifications relevant to the Board's needs.
In 1964, the second expatriate General Manager ofCEB, 1. Sharples retired, and Raja Zainal bin Raja Sulaiman became the first Malaysian appointed to the post.
Soon, the Connaught Bridge Power Station became fully operational and the first phase of the Cameron Highland Hydroelectric Project was close to completion. In Selangor, the precursor of the National Grid was slowly taking shape, and the Bangsar Power Station was connected to the Connaught Bridge Power Station, with the line subsequently extended to Malacca.
On 22 June 1965, CEB of the Federation of Malaya was renamed as the National Electricity Board of the States of Malaya (NEB). Committed to long term programme of growth and expansion backed by plans carefully crafted and laid down in the period ofCEB, NEB is now firmly led by a Malaysians as the CEO.
The National Grid was one of the plans in full motion. The National Grid or Grid Nasional in Malay is the primary electricity transmission network linking the
electricity generation, transmission, distribution and consumption in Malaysia. Electricity generating plants are strategically located at Paka in Terengganu, Temengor, Kenering, Bersia and Batang Padang in Perak, Connaught Bridge, Kapar and Serdang in Selangor, Cameron Highlands in Pahang, Prai in Penang, Port Dickson in Negeri Sembilan, Pergau in Kelantan, Pasir Gudang in Johor and in Malacca.
The central area network with Connaught Bridge Power Station in Klang was the precursor of the energy grid; it also tapped into the Cameron Highlands Hydro scheme from the Sultan Yussuf Power Station, and was extended into a western network.
Later in the 1980s, the loop was finally complete; it prevailed over some of the most formidable terrain in the northern Peninsula, and Kota Bahru was successfully placed within the grid.
The National Grid is also interconnected to the transmission network of the Electricity Generating Authority of Thailand (EGAT) through a 117 MY A, 132 kV Single Circuit Line, which has since been upgraded to a HVCD line. The Grid is connected to Singapore Power Limited (SP) through a capacity of 250 MY A - 230 kV transmission lines and submarine cables. These significant connections provided us the first evidence of rudimentary ASEAN grid on the map.
Plants within the Grid form a power bloc governed by technological alliances and careful arrangements to further the common good for all. The National Load
Despatch Centre made active communications possible in order to identify the needs of t he community we serve.
By the 80s, the Board was supplying the whole Peninsular with electricity, strategically replacing the Perak River Hydro Electric Power company (PRHEP) and its subsidiary Kinta Electrical Distribution Co. Ltd (KED) in 1982, Penang Municipality in 1976, and areas supplied by Huttenbach Ltd in 1964, which included Alor Setar, Sungai Petani, Kulim, Lunas, Padang Serai, Telok Anson, Langkap, Tampin and Kuala Pilah. Its transmission lines now stretched over 6,300 kilometres, a great achievement from its previous 1,560 kilometres just a decade ago.
By 1984, installed capacity had more than doubled to 1,379.2 MW exceeding peak demand by a healthy margin. Its consumer base now numbered 1,965,162 with revenue of approximately RM2.2 billion and fixed assets close to RM5.5 billion, as well as 24,882 staff.
The Board was producing handsome profits through leadership of the highest caliber, and for the first time in history, a significant reduction in tariffs was offered. The Board even received accolade from the World Bank, recognizing it as a well-run and financially sound entity with an appropriate pricing policy, investment planning and with adequate autonomy.
However, the Board's loans became heavier as more funds were needed to fuel its expansion plans. Loans from foreign sources and the government soon stood at approximately RM1 Billion each with internal borrowings added to another 1 billion.
Concurrently, staff wage had also risen significantly. Plus, the new power of International Capital and the emerging trend of Globalization made the challenge even more demanding.
Subsequently, Prime Minister Dato' Seri Dr. Mahathir Mohamad announced the government's decision on a policy of privatization. He stressed the danger of the government becoming a burden to the people it serve. Thus, privatization is set in motion.
The new policy of privatization had four main objectives - to relieve the administrative and financial burden of the government, improve the effectiveness and quality of the public services, encourage the spread of private entrepreneurship in the public sector and last but not least, contribute to the attainment of the goals set for the New Economic Policy (NEP). The NEP is the new social-economic restructuring affirmative action program aimed to strengthen political unity and stability through equal distribution of the nation's wealth.
On 4 May 1988, the government announced its final decision to privatize. This triggered anxiety and fear among all staff Their concerns include the fear that public good would be sacrificed due to greed, the passing of foreign ownership through share purchases in the open market, and that NEB was profitable and therefore not suitable for privatization as only sick and ailing were the common perception suitable for privatization.
Keeping the nation's interest in mind, the government relentlessly pursued its ultimate objective and two pieces of legislation were passed to replace the existing Electricity Act, and to provide for the establishment of a new corporation - Tenaga Nasional Berhad, purposefully replacing the NEB (Successor Company Act). Datuk Hj. Ibak bin Abu Hussein became the last Deputy Chairman and General Manager of the NEB and the first Managing Director ofTNB.
On 1 September 1990, Prime Minister Dato' Seri Dr. Mahathir bin Mohamad officially proclaimed TNB as the heir and successor to NEB. TNB became a private company wholly-owned by the government; on the same day, Tan Sri Dato' Haji (Dr) Ani bin Arope was appointed Chairman.
Public-listed TNB is the largest electricity utility company in Malaysia with more than RM65 billion in assets and a customer base of about 6.8 million throughout Peninsular Malaysia and Sabah (TNB, www.tnb.com.my). Globally and regionally, TNB enjoys a reputation of outstanding performance. TNB is the only Malaysian energy company to rank among the top 50 energy companies in Asia in 2006 (platt's survey, 2007).
TNB controls Malaysia's largest generation capacity of about 11,000 megawatts (MW). TNB also manages and operates a complete transmission network, spanning the whole of Peninsular Malaysia forming a loop known as the National Grid, linking the electricity power producers, made up of TNB power stations and Independent Power Producers (IPP), to the TNB Distribution networks and some Large Power Customers
TNB's business is complemented by a complete Distribution System, Customer Service Centre, Call Management Centre and Administration throughout Peninsular Malaysia and Sabah. Their integrity, customer-focus driven, business excellence and caring makes them committed to developing energy for the national and regional power
TNB is also involved in several diversified businesses linked to the power industry. Some of the diversified business include undertake the manufacturing of transformers, high voltage switchgears and cables; the provision of professional consultancy services, architectural, civil and electrical engineering works and services, repair and maintenance services and fuel; as well as research and development and project management services.
There are few reasons why the service is important nowadays. Firstly, where the customer as already seen is getting more and more critical of the service they receive. Many customers are not only wanting, but also expecting better services. Second, there are many service industries with narrow previous market e.g. electricity utility companies are now competing in geographically wider markets. When this is combined with the deregulation, it is easy to see another reason for the focus on services: competition.
The biggest challenge for TNB in the service industry is to deliver satisfactory outcomes to its customers. If the customers dissatisfied with the quality of a service, they will tum to the alternatives that they have at that moments. Although it is clearly that the biggest electricity utility company in Malaysia is unlikely to receive any
competitor soon, it does not mean that the customer will be loyal to them forever, especially when the alternatives came. Therefore TNB needs to develop a better understanding of their customer needs. TNB has to continue to exaggerate and modernize to Improve the quality of service. TNB has been established before independence and has been in upgraded its facilities from time to time. The core service provided by TNB is electricity utility. Apart from the above, there are several other services provided by TNB such as manufacturing of transformers, high voltage switchgears and cables; the provision of professional consultancy services, architectural, civil and electrical engineering works and services, repair and maintenance services and fuel; as well as research development and project management services.
In the past few decades, most of the electricity utility company was focused on renewable and sustainable energy, keep the levels of competition as high as possible and to keep the price as low as possible while keeping the customer satisfaction as high as possible. They also have to create a good mapping to explain their key functional stages, resources and resources ownership.
1.2 Problem Statement
The monthly average of power interruption in Peninsular Malaysia is reduced from 6,040 to 6,575 cases in 2004 (Energy Commission, 2005). However, the average is still high. TNB has developed a few programs to enhance the power distribution reliability in Peninsular Malaysia. The programs include transmission enhancement through Voltage system (MSVR) and High-Voltage System (MSVT), prevention maintenance work by monitoring the electric feeder filer and continuous scheduling maintenance and manual operation revision and asset maintenance to enhance the quality of work.
There are two types of power interruption; scheduled power interruption and unscheduled power interruption. Scheduled power interruption usually planned by TNB staff for maintenance purposes. Unscheduled power interruption is usually happen because of unforeseen circumstances.
Most of the unscheduled power interruption in Peninsular Malaysia happens because of natural disaster, power overload, loose connection and others. Table 1 below shows the cause of the unscheduled power interruption in Peninsular Malaysia from 2003 to 2005.
Table 1.1: Causes of Unscheduled Power Interruption in Peninsular Malaysia from Year 2003 to 2005
NO. OF INTERRUPTION
CAUSE 2003 2004 2005
Natural Disaster 8,575 (32.9%) 18,192 (34.6%) 21,418 (30.1%)
Overload 4,429 (17.0%) 4,706 (9.0%) 9,644 (13.6%)
Damaged on Equipment 617 (2.4%) 716 (1.4%) 1,918 (2.7%)
Damaged by Third Party 3,199 (12.3%) 4,536 (8.6%) 5,380 (7.6%)
Loose Connection 2,009 (7.7%) 10,226 (19.5%) 14,581 (20.5%)
Work Quality 1,739 (6.7%) 2,386 (4.5%) 2,786 (3.90/0)
Others 5,507 (21.1%) 11,752 (22.4%) 15,374 (21.6%)
Total 26,075 52,514 71,101 Source: Report On the Performance of the Electricity Supply Services in Malaysia Year 2006 Edition
Based on Table 1.1, natural disaster considered as the mam factor for unscheduled power interruption in Peninsular Malaysia. The cause, followed by power overload, loose connection and other problems represents 85.8% of total interruption in 2005. This is a big number, considering that TNB tries to become a respectable company by delivering quality services in Peninsular Malaysia.
Based on the factor itself, there are improvement can be made, especially on overload, loose connection and other factors. TNB has considered all the factors above
as a threat to their business in a long term. While the globalization is now rising and recession is likely to be anywhere nears this or next year, financial risk is consider a major problem.
Managing electricity utility company has become a critical issue as all utility company all around the world faces many of the same challenges. Service quality improvement must reach certain level of customer expectation. To improve to quality of TNB services, they must understand how their customers judge their service is performed.
There are many complaints directly and indirectly to some branches by the unsatisfied customers. There are differences between products offered and service provided by other electricity utility company but TNB may provide better service than the other.
The Energy Commission was established under the Energy Commission Act 2001 to regulate the electricity supply and piped gas supply industries in Peninsular Malaysia and Sabah. While in Sarawak, the state Chief Electrical Inspectorate is the regulator of the electricity supply industry under the Electricity Ordinance of Sarawak.
The Small Renewable Energy Programme (SREP) which was launched in the year 2001 to encourage private sector to undertake small power generation project using renewable resources has not been progressing well due to a number of factors such as uncertainty in long term fuel supply and challenges in securing loans for financing the projects. In order to promote and increase the use of renewable energy in Malaysia, better incentives and more conducive environment need to be established.
1.3 Research Questions
Successful companies target the right market segments with the right offerings at the right time, and they also know which ones to avoid.
To achieve growth and superior returns on invested capital, the powerful onetwo combination that drives shareholder returns, companies must successfully move beyond fulfilling existing customer needs. In TNB case, they have existing and potential customers and the most important thing is that their market segment is big and hardly to compete by other power producer.
In this case study, we will see if TNB has improved their services, especially in electricity breakdown management. A set of research questions will be divided to four sections:
1.3.1 Respondent details
Every respondent have to give some details about their gender, age, monthly income and education background.
1.3.2 Service quality
In this section, respondent will be asked about the quality of service provided by TNB according to respondent's needs.
1.3.3 Electricity breakdown management
Respondent needs to respond basically on TNB facilities, breakdown team management, and expertise, scheduling maintenance and waiting time needed to settle down any electricity breakdown management.
1.3.4 Communication performance
In this section, respondent will be asked about TNB communication capabilities and upgrading any communication channel, if needed.
1.4 Objectives of the Study
TNB has been Government Linked Companies (GLC) for 27 years now.
Although the improvement of electricity supply is in a reasonable stage, the electricity breakdown still occurs and high. Most of the customers complained their dissatisfaction about the action taken by TNB. For the customers, TNB has a lot of improvements for the electricity breakdown management.
The objectives of this case study are:
1.4.1 To acknowledge action should be taken if there IS an electricity breakdown in a certain area.
1.4.2 To acknowledge time taken by TNB staff to repair the electricity supply during electricity breakdown.
1. 4.3 To look at the action to be taken to reduce electricity breakdown in Malaysia.
1.5 Hypothesis of the study
The purpose of this study is to identify and conduct a testing on the relationship hetween dependent and independent variables by using below hypothesis:
There is a significant influence between tangibles factors and electricity breakdown management by TNB
Hypothesis 2 -
There is a significant influence between reliability and
assurance factors and electricity breakdown management by TNB
Hypothesis 3 -
There is a significant influence between responsiveness and empathy factors and electricity breakdown management by TNB
1.6 Scope of the Study
The scope of this study was to seek the improvement for electricity breakdown management for Tenaga Nasional Berhad. This study examined factors of the quality service, including tangibles, reliability and assurance together with the responsiveness and empathy.
1.7 Definition of Terms 1.7.1 Quality
Quality is a complex concept but Fred Smith CEO of the Federal Express defines as performances to the standard expected by the customers.
Another defines as providing the customer with the product and services that consistently meet their needs and expectation. There are many relating the quality theory for example E.Edward Deming, Joseph Juran and Kaora Ishikawa.
1.7.2 Service Quality
Service quality differs from material goods quality. Bateson and Hoffman (1999) defined services as deeds, efforts or performance. Regan (1963) saw services as activities, benefits or satisfactions offered for sale or provided in connection with the sale of goods.
David F.R. (2001) stated that, revolutionary technological and discoveries such as superconductivity, computer engineering, thinking computers, robotics, unstaffed factories, miracle drugs, space communications, space manufacturing, lasers, cloning, satellite networks, fiber optics, biometrics, and electronic funds transfer are having a dramatic impact on organizations.
1.8 Organization of the Project Paper
This project paper consists of six chapters, and each chapter will elaborate more on Electricity Breakdown Management in Malaysia: A Case Study on Tenaga Nasional Berhad. It will focus mainly on service quality provided by Tenaga Nasional Berhad as a main power distributer in Peninsular Malaysia and Sabah and also to look for improvements that can be made to make power and breakdown management successful.
Chapter 1 describes the history of electricity management in Malaysia before and after merdeka. Theories, exploratory research and analysis from previous research will be deeply discussed and highlighted in Chapter 2. A proposed theoretical framework in Chapter 3 will try to prove that there are rooms for improvements in Tenaga Nasional Berhad. Description of proposed research methodology and design in Chapter 4 will explains the necessary of the study. Chapter 5 presents the results and findings of this study, and Chapter 6 draws a few recommendations and suggestions to Tenaga Nasional Berhad.
CHAPTER 2 LITERATURE REVIEW
This exploratory research was refined with their subsequent scale named SERVQUAL (services quality) for measuring customers' perceptions of service quality (Parasuraman et al., 1985) At this point the original ten dimensions of service quality collapsed in to five dimensions which are reliability, responsiveness, tangibles, assurance (communication, competence, credibility, courtesy, and security) and empathy which capture access and understanding/knowing the customers.
Gap analysis model service quality models replacing "should" word by "would" and in 1994 by reducing the total number of items, but five dimensional structures are remaining the same. In addition to this empirical research, the authors characterized and further delineated the four gaps identified in their research of 1985.
Ziethmal, Barry and Parasuraman (1988) found a high degree of coloration between several of these variables that quality can be measured and so consolidate them 11110 five dimensions factors.
2.2 Tangibles Factor
First factor is the tangibles materials items. People are most important to services but that does not imply that is wise to ignore technology. Technology by itself is neither good nor bad. The computer should be used to help make jobs easier more productive, less redundant and repetitive (Parasuraman et al., 1985). Computers have played an important role in improving efficiency. The growing availability of broadhand telecommunication channel, cable of moving vast amount of data at great speed is playing a major role in improving a quality service.
In electricity utility company, gathering the customer needs and creating customer satisfaction is a major task. The service itself is complex, reflecting the diverse needs and aspirations of the community to which it seeks to respond. Continuing advances in information technology and engineering technology make the services well. As a result, certain supplementary elements or services can be delivered from a central location by using conventional communications. Others however localized delivery system including local personal and facilities.
Quality service providers make appropriate use the technology because they have a plan. Technology can be an important means of improving services, provided its
IISC tits within the goals of improving and becoming closer to the customer. (Gronroos, I ()H4). Quality service provider recognizes that while technology might be important, it I S I heir people who are critical to quality service. Major factors together determine the quality of provided or funded services; quality depends partly on the skill of trained human services professionals and support staff. It is guided by documented service standards and the efforts made to monitor measure and continuously improve service I icrformance.
Good quality service conforms not only to excellent technical standards, but is also responsive to individual needs and cultural norms. Efforts to protect clients and patients from error are vitally important to service quality.
2.3 Commitment to Service Quality
Customers remember missed deliveries and other unreliable service but sometimes it seems that management does not recognize the impact that such poor quality service has on their business (Parasuraman et al., 1985). Highly dependable service provider knows that their success from the beginning has guarantees available. Dependable for high quality service is based on several foundations. Most of the good companies take extra steps to satisfy customer, to make them feel a part of the family. Friendly service however does not ensure dependability or long term customer loyalty. Unlike product incompetent personnel of poor service providers, personnel in high service firm have personal knowledge of their services (J Regan 1963).
Managers of highly reliable firms have a strong sense of appreciation for people within their organizations. The amount and sophistication of their technology varies liom one high services organization to another. The primary goal in developing dependable service is to stand behind what is promised and give satisfaction guarantees.
Assurance where management must first decide what the customer wants and what the customer's need which they hope can satisfy them before an organization I mplement any technique to tackle it. Once these strategic decisions are made, then the management can identify, apply and evaluate technique for achieving quality services. Once their service target is identified, they make a point of effectively delivering results t hat were promised at a 99% plus satisfaction level. They make sure that the standards are set, people are trained, efforts are encouraged, and organizational systems are in place to promote their service.
The company's commitment to improve in service quality is reflected in each of the company's plan. Some of the factors that need to be considered are looking ways to improve how things are done, identifying and implementing actions to improve quality, establishing high standards and working to achieve them and encouraging others to find better ways to get things done.
Consistent service quality III a complex environment requires a concerted strategic effort to support this underlying value and the behaviors required of all the company's staff
1." Responsiveness and Empathy Factors
Third factor is the responsiveness. Customers who receive unresponsive and undependable service often complain because what they thought they would get and what they got were different (Parasuraman et al., 1985). Responsive know they will get "lid then back up their words with a satisfaction guarantee. In order to be responsive or delivery quality service, it is necessary to totally understand what the business is and is 111)1 capable. Management team and technical team have to understand both the capabilities of their system and what customers expect from it. While marketing and linancial knowledge is of obvious help, it is operational knowledge that delivers the services and spreads the word of mouth about the business dependability and I esponsrveness.
Empathy where the customer service provided by most electricity utility company can be assessed and improved. Displaying job performance and sharing results are ways to improve customer services and profit. As seen, once service measurements are introduced, there are often dramatic improvements in performance. Often assessing service, regardless of the methods helps focus attention on problem areas. When assessing service the organization need to make sure to analyzes the subjectively of I hose doing the evaluation. It is very important to validate each of the evaluations so that there is agreement on performance (J Regan 1963).
At the heart of this process is to specifically define the objective of the service measurement and assessment study. This process involves clearly defining an organization's standard for quality performance. Furthermore, those using measurement