Description
The PPT describes about Human Resource Management in Service Industry.
Managing People for Service Advantage
Learnings
? Why is the frontline so crucially important to the success of a service firm? ? Why is the work of service staff so demanding and often difficult? ? What are the cycles of failure, mediocrity and success in HR? ? How do we attract, train, motivate and retain outstanding frontline staff? ? What is the role of a service culture?
Service Personnel as a source of Customer Loyalty
? Service Staff are important because the front line:
?Is a core part of the product ?Is the service firm ?Is the brand
? Service staff are a key determinant of customer loyalty as they play a big role in
?Anticipating customer needs ?Customizing service delivery ?Building personalized relationships
The Frontline in low contact services
?There is an increase trend towards low contact delivery channels ?Many people may not have called a service hotline more than once or twice ?But these service encounters are critical as they are the moments of truth ?A service firms differentiation rests on these moments of truth
Frontline Work is Difficult and Stressful
?Boundary Spanning ?Sources of Conflict
?Person/Role Conflict ?Organization/Client Conflict ?Interclient Conflict
?Emotional Labour
The Employee Cycle of Failure
? Narrow Design of Jobs to accommodate low skill level, emphasis on rules rather than service, use of technology to control quality ? Low wages, minimum selection and training efforts ? Consequences are : bored employees, poor service attitude, high employee turnover, low profit margins ? Service Sabotage rather than service excellence
The Customer Cycle of Failure
?Repeated emphasis on attracting new customers ?Customer dissatisfaction ?No continuity in relationship with customers ?Failure to develop customer loyalty ?High customer turnover
The Employee Cycle of Mediocrity
? Mostly found in large bureaucratic organizations ? Service delivery standards tend to be prescribed by rulebooks ? Employees are often expected to spend their entire lives with the firm ? Narrow design of jobs further rigidified by union rules ? Salary and promotion based on longevity
The Employee Cycle of Mediocrity
? Successful performance measured by absence of mistakes ? Training focuses on learning the rules and not on improving human interactions ? Jobs tend to be boring and repetitive ? Most positions provide adequate pay and high job security ? Lack of mobility compounded by absence of marketable skills
Cycles of Failure/Mediocrity
The Customer Cycle of Mediocrity
? Such organizations are frustrating to deal with ? Users become resentful as they are faced with bureaucratic hassles, lack of service flexibility and unwillingness of employees to serve them well ? Dissatisfied Customers may display hostility towards employees ? Customer trade horror stories
The Employee Cycle of Success
? Attractive Compensation Packages used to attract good-quality staff ? Broadened Job Designs ? Intensified Selection ? Training and Empowerment of Frontline Personnel to control quality ? Employees are happier and tend to provide high quality, pleasing customer service
The Customer Cycle of Success
?Higher Customer Satisfaction ?Continuity in relationships ?Customer Loyalty ?Low Customer Turnover ?Repeat emphasis on customer loyalty and retention
Nine Rules for Success as implemented by Cora
? Treat customers like family ? Listen first ? Anticipate customers’ wants ? Simple things make the difference ? Work smart ? Keep learning ? Success is where you find it ? All for one and one for all ? Take pride in your work
Human Resources Management in Services
How to Get it Right
Hiring and Interviewing
?Hire the right people
?Be the preferred employer ?Select the right people
?Identify the best candidates
?Observe behaviour ?Conduct personality tests ?Conduct multiple structured interviews ?Give applicants a realistic profile of the job
Hiring
Training
?Train service employees actively
?The organizational culture, purpose, strategy ?Interpersonal and technical skills ?Product/Service knowledge
Empowerment
?Empower the front line. Most appropriate when:
?Firms business strategy is based on offering personalized service ?Approach based on extended relationships ?Business environment is unpredictable ?Managers are comfortable ?Employees have a strong need to grow and deepen their skills
Control v/s Involvement
? Empowerment isn’t just the act of setting the front line free or throwing away the policy manuals ? Requires systematically redistributing the four key ingredients top down
?Power to make decisions about work procedures ?Information about organizational performance ?Rewards based on organizational performance ?Knowledge that enables employees to contribute to performance
Control v/s Involvement
? Levels of Employee Involvement
?Suggestion involvement ?Job Involvement ?High Involvement
? Build High Performance Service Teams
?Each team has an owner ?Each team has a leader who monitors progress ?Each team has a quality facilitator
Motivation
? Job Content ? Feedback and Recognition ? Goal Accomplishment
?Achieving goals is a reward in itself when goals are seen as important ?Goal accomplishment can be used as a basis for giving rewards ?Service employee goals that are specific and difficult must be set publicly to be accepted ?Progress reports about goal accomplishment must be public events ?It is unnecessary to specify the means to achieve goals
Motivation
Service Leadership and Culture
? Service Culture can be defined as
? Shared perceptions of what is important in an organization ? Shared values and beliefs about why these things are important
?In a strong service culture the organization focuses on the front line ?Top management shows by its actions that what happens at the front line is crucially important ?Many spend significant time at the front line
Service Leadership and Culture
?Service leaders are not only interested in the big picture but also in the details of service ?They take strong communication efforts to shape culture
Wheel of HR
Leadership
Motivate and Energize your Hire the Right People People Be the preferred Use the Full Range of Rewards employer ??Pay Intensify the selection ??Bonus Process ??Job Content ??Feedback ??Goal Service AccompExcellence and Lishment
Productivity
Enable your people ??Build High Performance Service Delivery Teams ??Empower the Front Line ??Extensive Training on Culture, Purpose and Strategy, Interpersonal and Technical Skills ??Product/Service Knowledge
doc_998082739.ppt
The PPT describes about Human Resource Management in Service Industry.
Managing People for Service Advantage
Learnings
? Why is the frontline so crucially important to the success of a service firm? ? Why is the work of service staff so demanding and often difficult? ? What are the cycles of failure, mediocrity and success in HR? ? How do we attract, train, motivate and retain outstanding frontline staff? ? What is the role of a service culture?
Service Personnel as a source of Customer Loyalty
? Service Staff are important because the front line:
?Is a core part of the product ?Is the service firm ?Is the brand
? Service staff are a key determinant of customer loyalty as they play a big role in
?Anticipating customer needs ?Customizing service delivery ?Building personalized relationships
The Frontline in low contact services
?There is an increase trend towards low contact delivery channels ?Many people may not have called a service hotline more than once or twice ?But these service encounters are critical as they are the moments of truth ?A service firms differentiation rests on these moments of truth
Frontline Work is Difficult and Stressful
?Boundary Spanning ?Sources of Conflict
?Person/Role Conflict ?Organization/Client Conflict ?Interclient Conflict
?Emotional Labour
The Employee Cycle of Failure
? Narrow Design of Jobs to accommodate low skill level, emphasis on rules rather than service, use of technology to control quality ? Low wages, minimum selection and training efforts ? Consequences are : bored employees, poor service attitude, high employee turnover, low profit margins ? Service Sabotage rather than service excellence
The Customer Cycle of Failure
?Repeated emphasis on attracting new customers ?Customer dissatisfaction ?No continuity in relationship with customers ?Failure to develop customer loyalty ?High customer turnover
The Employee Cycle of Mediocrity
? Mostly found in large bureaucratic organizations ? Service delivery standards tend to be prescribed by rulebooks ? Employees are often expected to spend their entire lives with the firm ? Narrow design of jobs further rigidified by union rules ? Salary and promotion based on longevity
The Employee Cycle of Mediocrity
? Successful performance measured by absence of mistakes ? Training focuses on learning the rules and not on improving human interactions ? Jobs tend to be boring and repetitive ? Most positions provide adequate pay and high job security ? Lack of mobility compounded by absence of marketable skills
Cycles of Failure/Mediocrity
The Customer Cycle of Mediocrity
? Such organizations are frustrating to deal with ? Users become resentful as they are faced with bureaucratic hassles, lack of service flexibility and unwillingness of employees to serve them well ? Dissatisfied Customers may display hostility towards employees ? Customer trade horror stories
The Employee Cycle of Success
? Attractive Compensation Packages used to attract good-quality staff ? Broadened Job Designs ? Intensified Selection ? Training and Empowerment of Frontline Personnel to control quality ? Employees are happier and tend to provide high quality, pleasing customer service
The Customer Cycle of Success
?Higher Customer Satisfaction ?Continuity in relationships ?Customer Loyalty ?Low Customer Turnover ?Repeat emphasis on customer loyalty and retention
Nine Rules for Success as implemented by Cora
? Treat customers like family ? Listen first ? Anticipate customers’ wants ? Simple things make the difference ? Work smart ? Keep learning ? Success is where you find it ? All for one and one for all ? Take pride in your work
Human Resources Management in Services
How to Get it Right
Hiring and Interviewing
?Hire the right people
?Be the preferred employer ?Select the right people
?Identify the best candidates
?Observe behaviour ?Conduct personality tests ?Conduct multiple structured interviews ?Give applicants a realistic profile of the job
Hiring
Training
?Train service employees actively
?The organizational culture, purpose, strategy ?Interpersonal and technical skills ?Product/Service knowledge
Empowerment
?Empower the front line. Most appropriate when:
?Firms business strategy is based on offering personalized service ?Approach based on extended relationships ?Business environment is unpredictable ?Managers are comfortable ?Employees have a strong need to grow and deepen their skills
Control v/s Involvement
? Empowerment isn’t just the act of setting the front line free or throwing away the policy manuals ? Requires systematically redistributing the four key ingredients top down
?Power to make decisions about work procedures ?Information about organizational performance ?Rewards based on organizational performance ?Knowledge that enables employees to contribute to performance
Control v/s Involvement
? Levels of Employee Involvement
?Suggestion involvement ?Job Involvement ?High Involvement
? Build High Performance Service Teams
?Each team has an owner ?Each team has a leader who monitors progress ?Each team has a quality facilitator
Motivation
? Job Content ? Feedback and Recognition ? Goal Accomplishment
?Achieving goals is a reward in itself when goals are seen as important ?Goal accomplishment can be used as a basis for giving rewards ?Service employee goals that are specific and difficult must be set publicly to be accepted ?Progress reports about goal accomplishment must be public events ?It is unnecessary to specify the means to achieve goals
Motivation
Service Leadership and Culture
? Service Culture can be defined as
? Shared perceptions of what is important in an organization ? Shared values and beliefs about why these things are important
?In a strong service culture the organization focuses on the front line ?Top management shows by its actions that what happens at the front line is crucially important ?Many spend significant time at the front line
Service Leadership and Culture
?Service leaders are not only interested in the big picture but also in the details of service ?They take strong communication efforts to shape culture
Wheel of HR
Leadership
Motivate and Energize your Hire the Right People People Be the preferred Use the Full Range of Rewards employer ??Pay Intensify the selection ??Bonus Process ??Job Content ??Feedback ??Goal Service AccompExcellence and Lishment
Productivity
Enable your people ??Build High Performance Service Delivery Teams ??Empower the Front Line ??Extensive Training on Culture, Purpose and Strategy, Interpersonal and Technical Skills ??Product/Service Knowledge
doc_998082739.ppt