Service

Exellence and
Leadership
 Members

Robert dei Frinaly

Justine Tumbado
Llaneta Rabang
Mariel San Buenaventura Elle Lou
Juego
Introduction
This chapter discusses the relationship between service quality,
productivity, and profitability. Also, this chapter explains the tools
and approaches that would assist organizations on how to reach
and/or maintain service quality and profitability. A classification of
organizat
Learning Objectives:
At the end of this chapter, the students should be able to:
Explain the relationships between service quality, productivity,
and profitability.
Know the different dimensions of service quality.
Understand the importance of customer feedback;
Familiarize with the tools used to analyze service quality
problems;
Learn the different system approaches to service quality and
productivity.
Know and differentiate the kinds of organizations based on
service leaders.
 Relationship Between Service Quality, Productivity, and
Profitability

Business thrives because thy earn profit. Profitability is realized if

companies learn to provide quality service and to become productive.
Customer satisfaction is an evaluation of a single consumptions
experience.
If a firm is able to provide high service quality, then it would lead to
greater customer satisfaction. Satisfied customers would most likely lead
to repeat purchase, higher spendings, and referrals.
There are instances where productivity and service quality are in conflict
with each other. It means that despite the company’s efforts to be
productive, if the process is not acceptable to the expectation of the
customers, then it would lead to lower customer satisfaction.
 Measuring Service Quality

Service quality(SQ) is one of the key factors and result-oriented strategies

to satisfy customers and to convince them to become loyal customers by
delivering quality-based products and services to reach their needs and
desires(Othman,Harun,Rashid,&Ali,2019).
There are two suggested criteria on how to measure service quality. Soft
standards are usually described and collected through discussions with
customers and the Hard standards is collected or processed based on
activities and outcomes that can be calculated, timed, or computed.
Measures are done in relation to set a target. Companies measure service
quality in order to understand their current status and learn to set
directions for improvement.
 Understanding the Dimensions of Service
Quality

Service quality can be highly affected by the perceptions of customers,

and service is more difficult to compare and distinguish. It is important
that service organizations must be consistent in their outputs and be
sensitive to the needs of their clients.
The following discussions provide an idea on the different dimensions of
service quality and share information on the different attributes of each
dimension:

1. ASSURANCE
- This dimension is about the ability of organizations to communicate
guaranteed quality service to customers.
1. ASSURANCE
This dimension is about the ability of organizations to communicate
guaranteed quality service to customers.
The ability to convince the customer to put their trust and confidence to
an organization is difficult to achieve but it is important aspect to
accomplish.
2. EMPATHY
This dimension speaks about the ability of service organizations to be
compassionate and responsive to the clients’ needs and wants.
This embodies the ability of organizations to look through the perspective of
customers when rendering services.
Personnel are trained to be friendly, approachable, considerate, respectful, and
courteous not only to the customers, but also to guests’ belongings and
properties.
3. RELIABILITY
The consistency and dependability of a service organization to deliver
service based on the expectations of clients. Service organizations are able
to deliver the same results and satisfaction at different periods or
transactions among customers.
4. RESPONSIVENESS
This dimension is about the manner on how the service organizations
react to customers’ needs.
Customers expect nothing less from what they think is due to them. It is
expected that organizations are ready, willing, and adaptive to the
requirements emanating from guests.
5. TANGIBILITY
Although services are basically intangible since these are experienced
rather than held physically, the delivery is often done utilizing tangible
materials. Physical facilities often influence customer satisfaction if
properly communicated to clients.
Customer feedback
Collecting and analyzing customer feedback
is an essential key to success since it allows
organizations to learn continuously and
adapt their offerings to customer
preferences and needs.
The key to being such is to be aware and sensitive to customer
feedback. The following are some of the general objectives of
customer feedback:

1. Performance Appraisal

Customer feedback are often studied in order to learn the

performance of the organization in comparison to its previous
accomplishments or in comparison to its competitors. The
result could be a factor to consider as to the directions on
where the organization plans to proceed.
2. Customer-focused Organization

A customer-focused organization relies on feedback in order to

understand the needs and wants of the clients and to provide
customer satisfaction. Also, through the inputs from customer
feedback, the organization can define a service quality culture
that would be dedicated to the delight of the clients.

3. Customer-driven Growth

Understanding the customer feedback would guide the

organizations on what to offer customers to be loyal to them.
Feedback would guide the organization on how to further improve
the service and to develop products that customers would want.
Tools
The following are some of the tools that
can be used to determine the problem in

Used to
order to avoid such from happening
again:

Analyze Fishbone Diagram

Service
Quality
Pareto Analysis

Problems
Blueprinting
1. The This tool tries to determine the root

Fishbone
cause of the problem. This technique
uses cause and effect analysis in
understanding the problem.

Diagram
Stakeholders identify and list down all
the possible reasons that might be
causing the problem.
2. Pareto
Pareto Analysis identifies the main
reasons why such issues happen. This

Analysis
tool differentiates the major issues from
the minor in order for organizations to
prioritize which issues should be
addressed immediately or more
importantly.
3.
Blueprints often show the different
stages in the process of service delivery.

Blueprinting
A detailed and well-designed blueprint
provides easy detection on where the
problem occurred. Further, this tool
would allow planners to anticipate the
possible segments of fail points.
 Understanding productivity
Productivity is basically the quantity of goods, products and services
produced from the amount of materials, resources, and assets used. In
simpler terms, it is a measure of output based on the same amount of inputs
used. Discussion of increase in productivity would mean an increase of
quantity of output based on a given levels of inputs. In the context of service
industry, measure an improvement of productivity is difficult to measure
since the output cannot be easily quantified.

Measuring productivity in some areas of a service firm may be a challenge as

compared to others. Hotel occupancy can be derived from the number of
rooms occupied for a given period of time,but the excellence of service
rendered by a room butler would be more complicated to evaluate. The service
availed by spy customer could be determined per day or per week,but the
delight of customers may vary due to several factors, including customers
preference, attendants skills and customers experiences.
 As a final points, productivity refers to the
output based on a certain amount of inputs.
Efficiency is a measure of how well things are
done based on a given standard in a specific time
period. Effectiveness is the degree to which an
organisation meets it's objectives and desired
outcomes.
Refining
Service In the service industry, being

Productivity a successful business venture.

productive does not guarantee

Organisations continually
employ strategies in order to
provide the best services in the
most efficient ways.
Strategies in improving Service Productivity
The following are some of the suggested general strategies
that can be undertaken in order to improve service
productivity.
1. Ultilizing technology, innovations, and data analysis that would
help employees to work faster and provide a higher quality of
service.

2. Training, equipping, and motivating employee to be more

efficient and productive.
3. Deploying workers who are capable of multitasking to
eliminate bottleneck and downtime be deploying workers
wherever they are needed most.
Strategies in improving Service Productivity
4. Maintaining a lead and mean workforce.
5. Operationalizing customers - operated self -
service technology (SSTs).
6. Redesigning customer service process to be more
productive and effective.
7. Controlling and minimizing cost a different levels
of the service process.
8. Outsourcing some nonessentail tasks that can be done
by third parties more efficiently and cost - effective.
Improve Productivity through Costumer-driven Strategies
For organizations whose customers are part of the service production process, the
following are some suggested strategies that can be utilized to improve service
productivity:
1. Organizations may be encouraged to use more cost-effective and efficient
delivery channel such as the Internet, applications, or automated machines.

2.Broaden the participation of "partial employees" in the organization by giving

customers more active roles as co-creators of the service.

3.Third party service providers can undertake support functions. Further, these
service providers have the specialized skills to perform tasks in more efficient
and cost-effective method. This would allow the firms to focus on its core
expertise.

4. Companies must be good in managing demand and capacity to maximize use

of resources.
 Systems of Service Quality and Productivity
There are approaches often used for service organizations to develop customer-
focused, service quality-oriented, and productivity-inclined culture. Some of these
approaches and their short overview are presented as follows:
I. Total Quality Management (TQM) - It may be the most popular
approach when it comes to process improvement in service
organizations. TQM assists organizations related to service excellence,
productivity, and innovative process improvements.

2.International Organization for Standardization (ISO) 9000

Certification - It deals with assessment and certification of an
organization's quality management system. ISO is an international
organization that develops standards to guarantee quality and
efficiency of products and services.
3. Six Sigma - It deals with organizations that have high-volume processes which
aim to reduce defects and cycle times and to improve productivity.

4.The Malcom Baldridge National Quality Award (MBNQA)- It

alternative. to custome Managers turnover, N required. A is unsatisfa
I was developed with the goal of promoting best practices in quality The Malcolm
Baldrige National Quality Award (MBNQA) management and recognizing and
publicizing quality achievements among U.S. organizations.

Service-oriented organizations can choose from any of the above mentioned

approaches to analyze customers' needs and to improve service quality and
productivity. Each has its own specific characteristic and strengths that may be
able to match the needs and level of requirements of organizations. A combination
also be used to maximize the benefits to an organization. Improving service quality
and productivity is not an impossible task. The key point to remember is, once
service quality and productivity is realized, organizations must be committed to
maintain their level of success.
 Service Leadership
Firms that are successful in providing service quality and achieved a
level of productivity must sustain its level of performance to
maintain customer loyalty and profitability.

1. Fourth class Firms- Subservient firms. Often, this type of firms exists
under minimum compliance of the required criteria to conduct business.
Customers would only avail of their services if there is no other alternative.
2. Third Class Firms- Traditional firms. these firms adhere to the
standardized form of operating a firm. Basis of productivity is of how the
organization can strictly follow the defined operation procedures.
3. Second Class firms - Maven Firms. The firms display a no- nonsense
professionalism in operating an organization. These firms recognize the
importance of the customer's role in creating value of service; focus on
having a balance between productivity and service quality.
 4. First class firms - innovation Firms. These are firms
regarded for their innovativeness and excellence. They
provide seamless service to their identified markets
embark in the continuous innovation, improvement,
experimentation, and consultant to provide the best
service.

Most service-oriented organization seeks the highest class

of service firms by continually improving and developing to
achieve customer loyalty and satisfaction. To achieve this,
organization must be able to utilize their resources
efficiently and improve their functional areas conciously.
Thank You!