1

SM
Part 5
Employee role in service designing: Importance
of service employee, Boundary spanning roles, Emotional
labour, Source of conflict, Quality – Productivity trade off,
Strategies for closing GAP 3.

Customer’s role in service delivery- Importance

of customers role in service delivery, strategies for enhancing
– customer participation, Delivery through intermediaries –
Key intermediaries for service delivery , Intermediary
control strategies.

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SM Provider GAP 3

CUSTOMER

Service Delivery
COMPANY
GAP 3
Customer-Driven
Service Designs and
Standards

Part 4 Opener
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Objectives for Chapter 5 :
SM Employees’ Roles in
Service Delivery
• Illustrate the critical importance of service employees
in creating customer satisfaction and service quality
• Demonstrate the challenges inherent in boundary-
spanning roles
• Provide examples of strategies for creating customer-
oriented service delivery
• Show how the strategies can support a service culture
where providing excellent service is a way of life

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SM Service Culture

• Culture: “ The way we do thins around here”

• Corporate Culture : “ The pattern of shared values and
beliefs that give the members of an organization meaning,
and provide them the rules for behavior in the
organization”.
• Service Culture: “ A culture where an appreciation for
good service exists, and where giving good service to
internal as well as ultimate, external customers is
considered a natural way of life and one of the most
important norms by everyone”
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SM

• Exhibiting Service Leadership: A strong

service culture begins with leaders in the
organization who demonstrate a passion for
service excellence.
• Developing a Service Culture: A service
culture begins with leaders in the
organization who demonstrate a passion for
service excellence.

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SM

• Transporting a Service Culture: Transporting

a service culture through international business
expansion is also very challenging.

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The Critical role of Service
SM
Employees

In a service organization, if you’re not serving the customer, you do

better be serving someone who is”
• They are the service
• They are the firm in the customer’s eyes
• They are marketers
• Importance is evident in
– The Services Marketing Mix (People)
– The Service-Profit Chain
– The Services Triangle
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SM Service Employees

• Who are they?

– “boundary spanners”
• What are these jobs like?
– emotional labor
– many sources of potential conflict
• person/role
• organization/client
• interclient
• quality/productivity

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SM The Service Triangle

Services marketing is about promises- promises made

promises kept to customer.
A strategic framework known as the services triangle
visually reinforces the importance of people in the ability
of firms to keep their promises and succeed in building
customer relationships.
The triangle shows the three interlinked groups that work
together to develop, promote , and deliver services.

McGraw-Hill © 2000 The McGraw-Hill Companies

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SM Service Triangle
Company
(Management)

Internal Marketing External Marketing

“ Enabling the promise” “ Making the promise”

Providers Interactive marketing Customers

“ Delivering the promise
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Employee satisfaction, customer
SM
satisfaction, and Profits

• Satisfied employees make for satisfied

customer / Satisfied customer can , in turn,
reinforce employees’ sense of satisfaction
in their jobs.
• Some researchers have suggests that unless
Service employees are happy in their jobs,
customer satisfaction will be difficult to
achieve.

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SM Service Profit Chain

Employee
Retention

Internal Employee External

service Satisfaction service
Quality value

Employee
productivity

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SM

Revenue
Growth

Customer Customer
satisfaction Loyalty

Profitability

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 Figure 11-3 14
Boundary Spanners Interact
SM with Both Internal
and External Constituents
External Environment

Internal Environment
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Figure 11-4
SM Sources of Conflict for
Boundary-Spanning Workers

• Person vs. Role

• Organization vs. Client

• Client vs. Client

• Quality vs. Productivity

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Strategies for Delivering service
SM
Quality through people

A strategies is needed to ensure that service employees are willing

And able to deliver quality service and that they stay motivated to
perform in customer –oriented , service-minded ways.
To build a customer –oriented, service –minded workforce, an
organization must..
1.Hire the right people
2. Develop people to deliver service quality,
3. Provide the needed support systems, and
4. Retain the best people .

McGraw-Hill © 2000 The McGraw-Hill Companies

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Human Resource Strategies for Closing GAP 3
SM
Hire for
r Service
fo Competencies B
Pr e t
e
t t
pe e s and Service E m e f e he
m B le pl rred
Co the op Inclination oy
Pe er

Str ard nd

Te Inte kills
Tr nica tive
Re ure a

ch rac
Hire the

ai n l
Pr ervic g

fo and
ide e
Right People
n

rs
w
as

S
o

r
Me

ov
S

Develop
Customer-

Employees
Empower
Employees

Customers

Retain the People to

oriented
Treat

Deliver
Best
as

Service Service
People Delivery Quality
Em th any’

wo e
rk
Inc ee

am ot
Provide
plo e

Te rom
Co Visio

lud s in
y

Needed Support
mp n

P
e

De Systems
Se v el o
s

re
or rvic p a su al
i
Int ente -
e
Provide Me tern e
Pr ern d In rvic y
oc Supportive Se alit
es al
se
s Technology Qu
and
Equipment
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SM
• Hire the right people
• Compete for the best people
• Hire for service competences and service
inclination Be the preferred employer
• Develop people to deliver service quality
• Train for technical and interactive skills
• Empower employees
• Promote teamwork
• Provide needed support systems
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SM

• Measure Internal service quality

• Provide supportive technology and equipment
• Develop service – oriented internal processes
• Retain the best peoples
• Include employees in the company’s vision
• Treat employees as customers
• Measure and reward strong service
performance.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SM Service Culture

“A culture where an appreciation for good service

exists, and where giving good service to internal
as well as ultimate, external customers, is
considered a natural way of life and one of the
most important norms by everyone in the
organization.”

McGraw-Hill © 2000 The McGraw-Hill Companies

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SM

Customer’s role in service

delivery- Importance of customers role
in service delivery, strategies for enhancing
– customer participation, Delivery through
intermediaries – Key intermediaries for
service delivery , Intermediary control
strategies.

McGraw-Hill © 2000 The McGraw-Hill Companies

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Importance of Other
SM Customers in Service
Delivery

• 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

McGraw-Hill © 2000 The McGraw-Hill Companies

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SM 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 market segments

McGraw-Hill © 2000 The McGraw-Hill Companies

 Figure 12-2 25

SM Customer Roles in Service

Delivery

Productive Resources

Contributors to
Quality and
Satisfaction

Competitors

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SM Customers as Productive
Resources

Service customer have been referred to as “partial

employee” of the organization- human resources who
contribute to the organization's productive capacity.
• “partial employees”
– contributing effort, time, or other resources to the production
process
• customer inputs can affect organization’s productivity
• key issue:
– should customers’ roles be expanded? reduced?

McGraw-Hill © 2000 The McGraw-Hill Companies

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Customers as Contributors
SM to Service Quality and
Satisfaction
Customer can play in service cocreation and delivery is that of
contributor to their own satisfaction and the ultimate quality
of the service they receive.
• Customers can contribute to
– their own satisfaction with the service
• by performing their role effectively
• by working with the service provider
– the quality of the service they receive
• by asking questions
• by taking responsibility for their own satisfaction
• by complaining when there is a service failure
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SM Customers as Competitors

If self –service customer can be viewed as resource of the firm, or as “ partial

employees,” they could in some cases partially perform the service or perform
the entire service for themselves and not need the provider at all.
• customers may “compete” with the service provider at all.
• “internal exchange” vs. “external exchange”
• internal/external decision often based on:
– expertise
– resources
– time
– economic rewards
– psychic rewards
– trust
– control
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Self –Service Technologies – The
SM ultimate in customer participation .

Self-Service Technologies (SSTs) are service entirely by the

customer by the customer without any direct involvement
or interaction with the firm’s employees. It represent the
ultimate form of customer participation along a continuum
from services that are produced entirely by the firm to
those that are produced entirely by the customer.

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A Proliferation of New SSTs-
SM Technology Spotlight:
Services Production Continuum

• A Proliferation of New SSTs:

Customer Production Joint Production Firm Production

1 2 3 4 5 6
Gas Station Illustration
1. Customer pumps gas and pays at the pump with automation
2. Customer pumps gas and goes inside to pay attendant
3. Customer pumps gas and attendant takes payment at the pump
4. Attendant pumps gas and customer pays at the pump with automation
5. Attendant pumps gas and customer goes inside to pay attendant
6. Attendant pumps gas and attendant takes payment at the pump

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SM

• Customer Usage of SSTs:

Some of the SSTs listed earlier –ATMs, online ordering,
Internet information search have been very successful, embraced
by customer for the benefits they provide in terms of convenience,
Accessibility and ease of use.
• Success with SSTs:

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Strategies for Enhancing
SM Customer Participation

Effective
Define Customer
Customer Recruit, Educate,
Participation and Reward
Jobs
Customers

Manage the
Customer
Mix

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Strategies for Enhancing
SM
Customer Participation
1. Define customers’ jobs/ Roles
-Clarify level of participation
-Identify specific jobs and tasks
- Understand implication for productivity and quality
2.Recruit, Educate, and Reward customers
• Identify and recruit appropriate segments
• Educate customer for their roles
• Reward customer performance
3.Manage the customer Mix
• Assess compatibility of segments
• Isolate incompatible segments
• Enhance segment compatibility
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SM

Prof. McGraw-Hill
Salim G Sonekhan – SDMCET , Dharwad. © 2000 The McGraw-Hill Companies