Strategies in Improving Service Productivity

Strategies in Improving Service Productivity.

1. Improving Staff. One strategy is to improve existing and new staff's knowledge, skills, attitudes, and behavior in service delivery and performance through improved recruiting, training, development, and motivating systems Staff in direct touch with customers who handle the visible aspects of the service can be educated in addressing questions and complaints, product expertise, and internal system operations To create incentives for higher productivity, productivity bargaining schemes with appropriate output measurements and formulae for sharing gains might be used.

2. Introducing Systems and Technology. It tries to identify important processes to be performed, investigates alternative methods of conducting them, devises alternative methods, eliminates inefficient behaviors, and enhances overall system coordination A systems approach to physical handling of items, layout, job design, and merchandising, for example, has enabled efficiency increases in supermarket retailing The systems approach, like the marketing approach, is as much about attitude and outlook as it is about tools, techniques and hardware or engineering.

3. Reducing Service Levels. Productivity can also be increased by lowering the amount and/or quality of services provided These tactics can be risky, especially if a service business has previously pledged to provide a better quality of service Competitors can also differentiate their services by expanding and improving the number and quality of their offerings.

Light bulb on yellow background with sketched light beams and cord.

5. Introducing New Services. It is possible to establish an effective service that removes or decreases the need for the unproductive service Transatlantic air travel, for example, has essentially replaced transatlantic sea travel, and the credit card has largely replaced the previous mechanism for acquiring overdrafts.

6. Customer interaction. Ways have to be found to hardness consumers or to change the behaviour through education and persuasion for the benefit of service delivery To improve the useful, active role of the customer in service delivery may mean new managerial approaches, changed organizations or organizational structures, the employment of para professionals and perhaps a changed role for the professional service manager A significant feature of many service organizations is the mismatch that often exists between supply of the service and demand for it.

Electronic circuit board. Systems Service Quality and Productivity.

Service Quality. Service quality can be viewed form multiple perspectives Product based Based on measurable parameters Suitable for goods E.g. no. of times a telephone rings before being picked by a service provider? E.g.. Delivery of Domino’s Pizza.

Service Quality. User based From customer’s perspectives “quality is in the eyes of beholder .” E.g. excellent movie made by director but not found enjoyable by viewers Challenges Manufacturing based Controlled by service firm but does not take into consideration customer satisfaction Quality perceived high, if it conforms to design specification Quality is perceived as an outcomes of production process Based on conformance.

Service Quality. Value Based Equate quality with value Provider has to maintain balance between conformance and performance, evaluating benefits and price to customer satisfaction Transcendental Quality can be only experienced but cannot either be spoken or documented about, render it impractical for quality managers E.g. tourism Internal quality is all about entire service delivery process While external quality is all about the conformance and compliance to design standards, its about customer’s perception.

Definition of Service Quality. Outdoor warehouse.

Service Quality Dimensions. 1. TANGIBLES - Appearance of physical facilities, equipment, personnel, and communication materials. 1 2. RELIABILITY - Ability to perform the promised service dependably and accurately. 2 3. RESPONSIVENESS - Willingness to help customers and provide prompt service. 3 4. ASSURANCE - Knowledge and courtesy of employees and their ability to convey trust and confidence. 4 5. EMPATHY - Caring, individualized attention the firm provides its customers. 5.

Service LeadersHip. 1. Declare service a top priority 2. Be a great role model (walk the talk) 3. Promote a common service language 4. Measure what really matters 5. Enable and empower your team 6. Remove the roadblocks to service 7. Sustain focus and enthusiasm.