Transcript
13087351831340003366135183134000130873518313400037090351374140005423535-226060005423535-22606000473773523114000-177165345440Arrangement of roles and reporting relationships that govern worker behaviour.
1) Divides up work in the organization (centralization and decentralization) and 2) provision of coordination and control
00Arrangement of roles and reporting relationships that govern worker behaviour.
1) Divides up work in the organization (centralization and decentralization) and 2) provision of coordination and control
2800352540Organizational Structure
00Organizational Structure
2566035345440This is what the company looks like. It has to do with the arrangement of the organization (under departmentalization - different designs) but also includes division of labour, and allocation of authority
00This is what the company looks like. It has to do with the arrangement of the organization (under departmentalization - different designs) but also includes division of labour, and allocation of authority
30232352540Organizational Design
00Organizational Design
11138535-2260600010109835-454660Departmentalization
Span of control
00Departmentalization
Span of control
1657352288540Mehanistic Design
Organistic Design
High division of labour
Low delegation of authority
Departments with great uniformity of work activity
Narrow spans of control
Mechanistic because it is like a machine very proceduralized (Do and Do Nots). It is contained.
Less job specialization
High delegation of authority
Low uniformity amongst work unit employees
Wide spans of control for mgrs
In addition:
Few work rules
Interpersonal/informal coordination
Empowered for planning and work schedules
Organistic because it is not contained. Employees in such units are expected to grow.
Similar to system 1 vs system 4 control in Module 5
2
00Mehanistic Design
Organistic Design
High division of labour
Low delegation of authority
Departments with great uniformity of work activity
Narrow spans of control
Mechanistic because it is like a machine very proceduralized (Do and Do Nots). It is contained.
Less job specialization
High delegation of authority
Low uniformity amongst work unit employees
Wide spans of control for mgrs
In addition:
Few work rules
Interpersonal/informal coordination
Empowered for planning and work schedules
Organistic because it is not contained. Employees in such units are expected to grow.
Similar to system 1 vs system 4 control in Module 5
2
2404110-1117601
001
98812352540007252335-4546603 Four Key Design Issues
003 Four Key Design Issues
69094352540008509635-111760005537835116840Delegation of Authority
Management decision pertaining to transfer of work activities/goals to employees (giving a piece of the job)
Necessary aspect of superior /subordinate relations, it is the process by which authority is distributed downwards in the org
When done broadly across org, transfers into employee empowerment
Simple structures with high delegation make up many of the most effectively managed companies
4 Five Principles of Delegation
Benefits:
Development of competitive work climates
Increased employee creativity
Lowered costs through smaller staffs
Employee role in DM
Rapid employee skill /mgmt development
Intrinsic reward for employees
Authority must accompany responsibility
All decisions should be delegated to lowest possible level
Practice management by exception (fire & forget unless necessary)
ensure employee understanding is complete (they know what and how)
00Delegation of Authority
Management decision pertaining to transfer of work activities/goals to employees (giving a piece of the job)
Necessary aspect of superior /subordinate relations, it is the process by which authority is distributed downwards in the org
When done broadly across org, transfers into employee empowerment
Simple structures with high delegation make up many of the most effectively managed companies
4 Five Principles of Delegation
Benefits:
Development of competitive work climates
Increased employee creativity
Lowered costs through smaller staffs
Employee role in DM
Rapid employee skill /mgmt development
Intrinsic reward for employees
Authority must accompany responsibility
All decisions should be delegated to lowest possible level
Practice management by exception (fire & forget unless necessary)
ensure employee understanding is complete (they know what and how)
8623935116840Division of Labour
Management decision pertaining to subdivision of work (degree of job specialization in terms of tasks and methods)
Can create economies of scale through task specialization. Employees develop expertise through repetition.
Above is primary source of increasing marginal productivity of task units
Technological advances (comm. & control) overcome coordination problems as work unit size increases
Two Aspects:
Type of work performed (research scientist, computer programmer)
Work method or process (accounting, production, marketing)
00Division of Labour
Management decision pertaining to subdivision of work (degree of job specialization in terms of tasks and methods)
Can create economies of scale through task specialization. Employees develop expertise through repetition.
Above is primary source of increasing marginal productivity of task units
Technological advances (comm. & control) overcome coordination problems as work unit size increases
Two Aspects:
Type of work performed (research scientist, computer programmer)
Work method or process (accounting, production, marketing)
99669602540006947535254000
4737735345440Note: Very large firms may blend all forms in their design.
00Note: Very large firms may blend all forms in their design.
11252835254000-86296525400086239354460240Disadvantages
Confusing design, no clear chain of command. The project manager is concerned over project while functional manager is concerned with dept details. Can lead to politics/loss of focus
Requires excellent planning, resource allocation
Project managers must be very good. May require extensive training
May lead to cost overruns (overhire of technical and support staff
00Disadvantages
Confusing design, no clear chain of command. The project manager is concerned over project while functional manager is concerned with dept details. Can lead to politics/loss of focus
Requires excellent planning, resource allocation
Project managers must be very good. May require extensive training
May lead to cost overruns (overhire of technical and support staff
86239351031240Complex Projects: Creates a need for a specialized mgmt position - project manager. Employees selected from functional departments to work on a project team. May have one or more project managers, and functional managers. Therefore violates the unity of command principle
00Complex Projects: Creates a need for a specialized mgmt position - project manager. Employees selected from functional departments to work on a project team. May have one or more project managers, and functional managers. Therefore violates the unity of command principle
100907859169400086239352288540Advantages
Combines strength of divisional and product designs
Blends marketing, mgmt, and technical expertise in project areas
Mgr PD in technical and product knowledge who can comm effectively with marketing, production, personnel from other areas
Self contained department can attend to product, project, & customer needs
Focus on specific products and their development without creating permanent units
00Advantages
Combines strength of divisional and product designs
Blends marketing, mgmt, and technical expertise in project areas
Mgr PD in technical and product knowledge who can comm effectively with marketing, production, personnel from other areas
Self contained department can attend to product, project, & customer needs
Focus on specific products and their development without creating permanent units
9538335574040Matrix
00Matrix
1009078545974000782383545974000896683545974000553783514884400059950354803140Disadvantages
Duplication of effort at divisions
Finding/trg division heads difficult
Division 'joint ventures' difficult due to disagreement (mindset like independent companies)
When product divisions multiple in the firm, severe coordination and communications problems can arise
00Disadvantages
Duplication of effort at divisions
Finding/trg division heads difficult
Division 'joint ventures' difficult due to disagreement (mindset like independent companies)
When product divisions multiple in the firm, severe coordination and communications problems can arise
59950352974340Advantages
Better able to meet customer needs and manage a set of products
Management tailored to product
Quicker response to product issues
Deep understanding of product/mkts
Friendly competition to maximize profit
Performance measurement easier
More DM at division vs HQ level
00Advantages
Better able to meet customer needs and manage a set of products
Management tailored to product
Quicker response to product issues
Deep understanding of product/mkts
Friendly competition to maximize profit
Performance measurement easier
More DM at division vs HQ level
59950352059940What we make (product or service).
Computer production & field service. Adopted by companies with diverse product lines
00What we make (product or service).
Computer production & field service. Adopted by companies with diverse product lines
723328514884400066808351602740Product
00Product
724281019456400012325352174240005537835137414000370903511455400043948359169405 Four Forms of Departmentalism
(organizational Design)
005 Four Forms of Departmentalism
(organizational Design)
31375355260340Disadvantages
Duplication of effort in departments serving different regions
Managers must be cross functional, able to deal with production, marketing, etc
00Disadvantages
Duplication of effort in departments serving different regions
Managers must be cross functional, able to deal with production, marketing, etc
31375352860040Where we are. Single manager control activities within region
00Where we are. Single manager control activities within region
431863526314400038233352288540Territorial
00Territorial
-1771652860040What we do.
(sales, prod, PR, Q&A)
00What we do.
(sales, prod, PR, Q&A)
4232910217424000-1771655031740Disadvantages
Overspecialization leads to narrow view within departments
Limited Manager Development (functional area)
Reliant on good coord between departs
Employees ID with departments > firm
Managers lack strategic view
CEO may be overburdened
00Disadvantages
Overspecialization leads to narrow view within departments
Limited Manager Development (functional area)
Reliant on good coord between departs
Employees ID with departments > firm
Managers lack strategic view
CEO may be overburdened
-1771653545840Advantages
Logical reflection of firms functions
Based on specialization which is efficient
Common language within divisions
Minimal duplication of effort
Training simplified
Tight control & Chain of Command reinforced
00Advantages
Logical reflection of firms functions
Based on specialization which is efficient
Common language within divisions
Minimal duplication of effort
Training simplified
Tight control & Chain of Command reinforced
123253521742400012325352631440007372352288540Functional
00Functional
31375353660140Advantages
Work tailored to region and customs
Good training for managers as assigned to new areas
Good career development (field ops to HQ)
Work units that are highly responsive to customer needs
00Advantages
Work tailored to region and customs
Good training for managers as assigned to new areas
Good career development (field ops to HQ)
Work units that are highly responsive to customer needs
1594485254000158496057404000280035916940Defn: How work activities are grouped together
Logical grouping of work activities to create divisions, branches, units etc within company
Different from Division of Labour in that this determines how the company is "chunked", whereas Division of Labour determines how specialized jobs are within those chunks.
00Defn: How work activities are grouped together
Logical grouping of work activities to create divisions, branches, units etc within company
Different from Division of Labour in that this determines how the company is "chunked", whereas Division of Labour determines how specialized jobs are within those chunks.
737235231140Departmentalization
00Departmentalization
9538335-226060Span of Control
00Span of Control
7023735-911860004394835254000-862965254000-4057651145540Example Matrix Organization
CEO
Medical Products Division
Defence Products Division
Industrial Products Division
Production Manager
Production Employees
Marketing Employees
Engineering Employees
Engineering Manager
Marketing Manager
Production Employees
Marketing Employees
Engineering Employees
NDT Project Manager
BMI Project Manager
Project mgr must be familiar with production, mkting and engineering
Employees may be confused due to more than one boss
Advantage of functional and product type designs
00Example Matrix Organization
CEO
Medical Products Division
Defence Products Division
Industrial Products Division
Production Manager
Production Employees
Marketing Employees
Engineering Employees
Engineering Manager
Marketing Manager
Production Employees
Marketing Employees
Engineering Employees
NDT Project Manager
BMI Project Manager
Project mgr must be familiar with production, mkting and engineering
Employees may be confused due to more than one boss
Advantage of functional and product type designs
976693546888400079381353888740 Shareholder demands for higher returns
Increasing global true low cost competition
Repeat buyers demanding high quality products/service
Technological advances allowing it to take place
00 Shareholder demands for higher returns
Increasing global true low cost competition
Repeat buyers demanding high quality products/service
Technological advances allowing it to take place
-6248401259840Note:
Employees begin to experience confusion about work expectations and performance if span too wide
00Note:
Employees begin to experience confusion about work expectations and performance if span too wide
48520355260340 Accommodates change/rapid growth
High project, product awareness
High task focus & control over time, money and human resources
Customers know who does what and personnel have higher response to customer needs
Con-current tasks can be coordinated across functional departments
00 Accommodates change/rapid growth
High project, product awareness
High task focus & control over time, money and human resources
Customers know who does what and personnel have higher response to customer needs
Con-current tasks can be coordinated across functional departments
79381355260340 Innovation often restricted to projects
Difficult to allocate pooled resources (computer analysis)
Coord problems in joint functions such as purchasing
Deterioration of broad mgr skills /potential for loss of technically skilled employees
Jurisdiction/priority disputes
Possible neglect of high level coordination to ensure organizational effectiveness
00 Innovation often restricted to projects
Difficult to allocate pooled resources (computer analysis)
Coord problems in joint functions such as purchasing
Deterioration of broad mgr skills /potential for loss of technically skilled employees
Jurisdiction/priority disputes
Possible neglect of high level coordination to ensure organizational effectiveness
47377355060315
00
1079563553746400072523355260340+
00+
473773548031407 Strength/Weakness of Decentralization
007 Strength/Weakness of Decentralization
976693536601400080524353660140Why?
00Why?
87382352174240 Process of pushing authority down the hierarchy
Decisions made as close to problem as poss.
Contemporary thought favours this approach
Outsourcing is ultimate end point of process (OS like a strategic alliance when supplier has comp advantage firm cannot match)
Goes against mgr instincts seeking more control, but benefits often outweigh costs
00 Process of pushing authority down the hierarchy
Decisions made as close to problem as poss.
Contemporary thought favours this approach
Outsourcing is ultimate end point of process (OS like a strategic alliance when supplier has comp advantage firm cannot match)
Goes against mgr instincts seeking more control, but benefits often outweigh costs
73666352174240Some companies combine the two: Decentralize - products, services, markets. Centralize - HR, finance, IS, purchasing etc.
00Some companies combine the two: Decentralize - products, services, markets. Centralize - HR, finance, IS, purchasing etc.
50806352174240 The retention of authority to make decisions by top mgmt
Employees follow uniform procedures and policies formulated/enforced by higher mgmt
Requires higher number of managers/ administrators due to admin and policing (control comes at a price - higher costs)
High formalization exhibited - this tends to decrease job satisfaction (Especially for those employees dealing with customers/suppliers who would like more control)
Proceduralization - Standardization exhibited
00 The retention of authority to make decisions by top mgmt
Employees follow uniform procedures and policies formulated/enforced by higher mgmt
Requires higher number of managers/ administrators due to admin and policing (control comes at a price - higher costs)
High formalization exhibited - this tends to decrease job satisfaction (Especially for those employees dealing with customers/suppliers who would like more control)
Proceduralization - Standardization exhibited
1010983519456400095383351602740De-centralization
00De-centralization
928433517805400050806351602740Centralization
00Centralization
56521351945640006299835178054000790003513741400082048351145540007886700137414000652843516027406 Centralization/Decentralization
006 Centralization/Decentralization
5652135231140 Structure results from decisions regarding Division of labour, Delegation, Departmentalism & Span of control.
Has a significant effect on company performance, employee behaviour, and job satisfaction
Two basic components (centralization/decentralization & Coordination)
00 Structure results from decisions regarding Division of labour, Delegation, Departmentalism & Span of control.
Has a significant effect on company performance, employee behaviour, and job satisfaction
Two basic components (centralization/decentralization & Coordination)
5194935-111760Decisions regarding these 4 Components lead to this.
00Decisions regarding these 4 Components lead to this.
7201535-340360Organizational Structure
00Organizational Structure
81921352540005080635-226060005080635-226060004852035688340004166235-45466000
-567690-111760Span of control
3 (cont'd)
Number of employees who report to a single manager
Influenced by the number and intensity of interpersonal relationships between superior and subordinate. Legal firm vs production line for example.
Communications and computer technology has allowed spans to become bigger (ex. email)
Three Factors Affecting:
2 Degree of Specialization
Managers lower in the chain may have wider span if oversee many doing similar tasks. Higher managers oversee people doing highly specialized jobs. Therefore span of control tends to narrow further up the hierarchy.
1 Required Contact
Self directed teams need flexible coordination and face to face contact. Some work will require more contact than others.
3 Ability to Communicate
Managers who can communicate clearly and concisely can manage a wider span. Increased by technology. Geography no longer a barrier.
00Span of control
3 (cont'd)
Number of employees who report to a single manager
Influenced by the number and intensity of interpersonal relationships between superior and subordinate. Legal firm vs production line for example.
Communications and computer technology has allowed spans to become bigger (ex. email)
Three Factors Affecting:
2 Degree of Specialization
Managers lower in the chain may have wider span if oversee many doing similar tasks. Higher managers oversee people doing highly specialized jobs. Therefore span of control tends to narrow further up the hierarchy.
1 Required Contact
Self directed teams need flexible coordination and face to face contact. Some work will require more contact than others.
3 Ability to Communicate
Managers who can communicate clearly and concisely can manage a wider span. Increased by technology. Geography no longer a barrier.
-862965254000
61264805669280Control
00Control
5486400603504000548640029260800043891202926080004572003566160Control. Moves process towards goal. Work stds (plans), evaluates progress to plans, interventions.
H
V
Coordination between units and management
Work Unit
Work Unit
Work Unit
Mgmt Unit
Mgmt
Unit
Work Unit
Work Unit
00Control. Moves process towards goal. Work stds (plans), evaluates progress to plans, interventions.
H
V
Coordination between units and management
Work Unit
Work Unit
Work Unit
Mgmt Unit
Mgmt
Unit
Work Unit
Work Unit
64008003291840Strengthens the link between work units to decrease uncertainty. If this is working well, fewer problems sent up the chain.
Direct Contact. Simple, least costly method. Basically managers of work units talking to each other. DM is down to level of workflow integration reducing pressure on the hierarchy. Use is a direct function of amount of interdepartmental work experience of mgrs. Decay over time due to mgrs leaving px. (like us with SETS)
Liaison Roles. Formally establish a px for someone to ‘coordiante’. This boundary spanning manager would require good political skills.
Cross Functional Teams. If twoabove do not work, dedicate team, made up of people from affected departments, to deal with issues.
Permanent Teams. Idea of service line managers that meet to discuss issues.
00Strengthens the link between work units to decrease uncertainty. If this is working well, fewer problems sent up the chain.
Direct Contact. Simple, least costly method. Basically managers of work units talking to each other. DM is down to level of workflow integration reducing pressure on the hierarchy. Use is a direct function of amount of interdepartmental work experience of mgrs. Decay over time due to mgrs leaving px. (like us with SETS)
Liaison Roles. Formally establish a px for someone to ‘coordiante’. This boundary spanning manager would require good political skills.
Cross Functional Teams. If twoabove do not work, dedicate team, made up of people from affected departments, to deal with issues.
Permanent Teams. Idea of service line managers that meet to discuss issues.
48463201828800Coordination
00Coordination
60350403017520008961120-36576000896112031089600081381602834640Horizontal Coordination
00Horizontal Coordination
60350402103120006035040-548640006035040-5486400051206401005840006400800-182880Strengthens the link between levels to decrease uncertainty.
Teams/Task forces. More group DM thru Task Forces composed of people from different subunits attack problems that span hierarchical levels.
Variation of above is Collateral Org – parallel org dedicated to performance improvement and not burdened with normal admin stuff. Can focus on leadership in change rather than mgmt and status quo.
Direct Supervision. Costly, not ver effective. Basically rules and regs.
Work process standardization. Work is so routine little direct supervision necessary. Workers do not have to interact. Harder to implement self directed teams since hard to think outside the box when your nailed in it.
Standardization of outputs. Direct supervision is minimal and process not standardized, this can do the job instead. Results determine process.
Performance Appraisal. Not often recognized as a vertical coord tool. Goal setting, feedback, communications assist in coord (PDR)
MIS. Knowledge is power. Mgmt knowledge is Mgmt power.
00Strengthens the link between levels to decrease uncertainty.
Teams/Task forces. More group DM thru Task Forces composed of people from different subunits attack problems that span hierarchical levels.
Variation of above is Collateral Org – parallel org dedicated to performance improvement and not burdened with normal admin stuff. Can focus on leadership in change rather than mgmt and status quo.
Direct Supervision. Costly, not ver effective. Basically rules and regs.
Work process standardization. Work is so routine little direct supervision necessary. Workers do not have to interact. Harder to implement self directed teams since hard to think outside the box when your nailed in it.
Standardization of outputs. Direct supervision is minimal and process not standardized, this can do the job instead. Results determine process.
Performance Appraisal. Not often recognized as a vertical coord tool. Goal setting, feedback, communications assist in coord (PDR)
MIS. Knowledge is power. Mgmt knowledge is Mgmt power.
8229600-640080Vertical Coordination
00Vertical Coordination
44805602103120Information processing ability must be developed in both vertical and horizontal dimensions
00Information processing ability must be developed in both vertical and horizontal dimensions
566928010058409
009
43891201920240002286000155448000-548640-640080How much coordination? (Lawrence & Lorsch)
Dependent on amount of information that must be processed during task execution.
The firm’s environment determines information load. Direct correlation between environmental turbulence and need for coordination. If tasks clear then low information processing requirement, if uncertain tasks then higher need for coord.
Generally firms operating in ‘stable’ environments were more centralized, and had greater standardization and formalization.
Higher loads will require sophisticated means (computers, email,)
00How much coordination? (Lawrence & Lorsch)
Dependent on amount of information that must be processed during task execution.
The firm’s environment determines information load. Direct correlation between environmental turbulence and need for coordination. If tasks clear then low information processing requirement, if uncertain tasks then higher need for coord.
Generally firms operating in ‘stable’ environments were more centralized, and had greater standardization and formalization.
Higher loads will require sophisticated means (computers, email,)
914401645920Rules and regulations not enough to ensure coordination and goal accomplishment. Managers must exercise Coordination & Control.
Coordination: set of mechanisms used to link the actions of subunits to achieve a pattern of desired outcomes. Purpose is to reduce uncertainty for employees and subunits about what they are supposed to do.
Control: Control is the set of mechanisms used to keep action and outcomes within prescribed limits. (work standards, evaluation, interventions)
00Rules and regulations not enough to ensure coordination and goal accomplishment. Managers must exercise Coordination & Control.
Coordination: set of mechanisms used to link the actions of subunits to achieve a pattern of desired outcomes. Purpose is to reduce uncertainty for employees and subunits about what they are supposed to do.
Control: Control is the set of mechanisms used to keep action and outcomes within prescribed limits. (work standards, evaluation, interventions)
85153511931658 Coordination & Control
008 Coordination & Control
-914400137414000
5577840-960120MBO steps:
Members of work unit establish goals and plans for achieving them (analyze/plan)
Discussion of work unit goals to ensure everyone understands them
Employees in work unit establish their own action plans to achieve their goals. Mgr meets one on one to ensure goals are SMART
Boss/worker establish criteria for determining success
Superior conducts formal and informal feedback concerning individual and group goals
Note: The system is documented with all goals set down on paper. Goals are cascaded down the hierarchy, they become more specific and quantified at lower levels. MBO most common form of results oriented control. Captializes of impt motivational aspects of specifying outcomes.
00MBO steps:
Members of work unit establish goals and plans for achieving them (analyze/plan)
Discussion of work unit goals to ensure everyone understands them
Employees in work unit establish their own action plans to achieve their goals. Mgr meets one on one to ensure goals are SMART
Boss/worker establish criteria for determining success
Superior conducts formal and informal feedback concerning individual and group goals
Note: The system is documented with all goals set down on paper. Goals are cascaded down the hierarchy, they become more specific and quantified at lower levels. MBO most common form of results oriented control. Captializes of impt motivational aspects of specifying outcomes.
-182880324612010
0010
90525601783080006400802971800Process
00Process
1828802148840Results
00Results
9144021488400064008029718000053035203154680Organizational structure v.s organizational design
Mechanistic and organistic designs
Design issues of division of labour, delegation of authority, departmentalism, span of control
Effective delegation of authority
Four basic organizational designs
Rationale for centralizing/decentralizing
Cost benefit of decentralization
Organizational coordination vs control
Methods for improved horizontal/vertical coordination
Process oriented/results oriented control systems
Why elimination of manufacturing approach in customer service requires strengthened employee commitment
Why service quality improvements require building organizational structure and processes to support service delivery
Assess whether service quality is a major component of competitive advantage
Why service quality training is an investment
How excellent service needs trained empowered employees
How service driven competitive advantage is based on performance related intrinsic/extrinsic rewards
Shift of management role from control to support in service driven firms
How outsourcing can backfire if service deemed inadequate
Why raising quality service is more time consuming than downsizing but pays bigger competitive advantage dividends
00Organizational structure v.s organizational design
Mechanistic and organistic designs
Design issues of division of labour, delegation of authority, departmentalism, span of control
Effective delegation of authority
Four basic organizational designs
Rationale for centralizing/decentralizing
Cost benefit of decentralization
Organizational coordination vs control
Methods for improved horizontal/vertical coordination
Process oriented/results oriented control systems
Why elimination of manufacturing approach in customer service requires strengthened employee commitment
Why service quality improvements require building organizational structure and processes to support service delivery
Assess whether service quality is a major component of competitive advantage
Why service quality training is an investment
How excellent service needs trained empowered employees
How service driven competitive advantage is based on performance related intrinsic/extrinsic rewards
Shift of management role from control to support in service driven firms
How outsourcing can backfire if service deemed inadequate
Why raising quality service is more time consuming than downsizing but pays bigger competitive advantage dividends
9144000777240Over-emphasis on goal setting can produce problems (Negatives):
Tunnel vision about results may lead to inadequate attn to process
Could degenerate into a paper chase (red tape). More likely when connected to external process control
Superiors fall into a punishment or reward (do or die) mentality
Collaboration suffers if workers have too many goals or are worried about accomplishing specific ones
MBO can be more effective if connected with product/service quality standards
00Over-emphasis on goal setting can produce problems (Negatives):
Tunnel vision about results may lead to inadequate attn to process
Could degenerate into a paper chase (red tape). More likely when connected to external process control
Superiors fall into a punishment or reward (do or die) mentality
Collaboration suffers if workers have too many goals or are worried about accomplishing specific ones
MBO can be more effective if connected with product/service quality standards
7406640594360005577840777240Coordinating characteristics (MBO relies on):
Superior subordinate meetings to:
Establish goals
Periodically review activities and results
Resolve conflicts and take corrective action
Three critical properties
Knowledge of what is expected (the plan)
Knowledge of results (feedback)
Function of superior. This must clearly be to provide work (not personality) based feedback
Note: Besides focusing on output control, MBO shapes firm culture through emphasis on value of goal setting, maintenance of high standards, and long term results (and not taking shortcuts)
00Coordinating characteristics (MBO relies on):
Superior subordinate meetings to:
Establish goals
Periodically review activities and results
Resolve conflicts and take corrective action
Three critical properties
Knowledge of what is expected (the plan)
Knowledge of results (feedback)
Function of superior. This must clearly be to provide work (not personality) based feedback
Note: Besides focusing on output control, MBO shapes firm culture through emphasis on value of goal setting, maintenance of high standards, and long term results (and not taking shortcuts)
521208013716000321183013779505. Reach mutual agreement about program (goals, work methods, measurement)
005. Reach mutual agreement about program (goals, work methods, measurement)
36576007905754. Articulate Goal (SMART) (difficulty, clarity, number, feedback)
004. Articulate Goal (SMART) (difficulty, clarity, number, feedback)
31343602025653. Define the employees jobs (methods, content, authority, responsibility)
003. Define the employees jobs (methods, content, authority, responsibility)
15074902025652. Jointly plan goals, service outcomes, strategy, communications and training
002. Jointly plan goals, service outcomes, strategy, communications and training
-1193802025651. Information gathering & analysis by manager and worker/team
001. Information gathering & analysis by manager and worker/team
1197610163957000297942016395700045288201639570004683760131254500445135046355000468376046355000282448046355000119761046355000-11938013779507. Formal review of goals and rewards to be obtained
007. Formal review of goals and rewards to be obtained
143002013779506. Informal review (goal achievement, methods, probable rewards) Ammend goals and methods if nec
006. Informal review (goal achievement, methods, probable rewards) Ammend goals and methods if nec
-274320137160
00
-196850920750Analyze: Plan: Define: Articulate: Agree: Informal: Formal
00Analyze: Plan: Define: Articulate: Agree: Informal: Formal
1554480-137160MBO Cycle form Module 4
00MBO Cycle form Module 4
-640080288036000-4572002788920Control
00Control
-274320-960120Results Control
Example is MBO used to gain output control in firm.
MBO has mgrs set SMART goals, monitor progress towards them, and receive rewaqrds based on results.
Focus is on results in that mgrs can pick their own methods for reaching defined targets
00Results Control
Example is MBO used to gain output control in firm.
MBO has mgrs set SMART goals, monitor progress towards them, and receive rewaqrds based on results.
Focus is on results in that mgrs can pick their own methods for reaching defined targets
11887202148840Process control
“Standardization of task performance”
Mgrs see it as means of achieving efficiency, workers view it is unnecessary formalization
Can be internal (self imposed by self directed teams) or external (imposed by management)
Benefits of internal:
Meaningful work standards
Effective performance measurement
Specification of worker T & D needs
Clear team basis for performance/merit based reward distribution
Linking of workers to customers
Sound basis for corrective action
External can be very counter productive (only useable in stable environments. Problems with external:
Lack of patience. Most solutions found at worker level, if mgr imposed, workers become impatient
Across board cuts. EPC may lead to poor cost containment
Ambiguity. Reports generated become focus rather than results. Reports do not mean anything.
Vague expectations. May be so focused on the process that the goal is ignored
Panic. Happens when these controls seem to come out of nowhere, worker react accordingly
Escalating Standards. Managers may raise process standards without providing support
00Process control
“Standardization of task performance”
Mgrs see it as means of achieving efficiency, workers view it is unnecessary formalization
Can be internal (self imposed by self directed teams) or external (imposed by management)
Benefits of internal:
Meaningful work standards
Effective performance measurement
Specification of worker T & D needs
Clear team basis for performance/merit based reward distribution
Linking of workers to customers
Sound basis for corrective action
External can be very counter productive (only useable in stable environments. Problems with external:
Lack of patience. Most solutions found at worker level, if mgr imposed, workers become impatient
Across board cuts. EPC may lead to poor cost containment
Ambiguity. Reports generated become focus rather than results. Reports do not mean anything.
Vague expectations. May be so focused on the process that the goal is ignored
Panic. Happens when these controls seem to come out of nowhere, worker react accordingly
Escalating Standards. Managers may raise process standards without providing support
-640080-96012000
7709535-777240Boundaryless Organization
Rigid hierarchies with strong vertical division lines creates walls between departments. Worse when coupled with product division (if they do need to talk to each other)
00Boundaryless Organization
Rigid hierarchies with strong vertical division lines creates walls between departments. Worse when coupled with product division (if they do need to talk to each other)
43948354460240Responsive orgs are customer driven and delayered. Coord achieved through tech-based communications. Emphasis on revenue growth, cost containment secondary.
00Responsive orgs are customer driven and delayered. Coord achieved through tech-based communications. Emphasis on revenue growth, cost containment secondary.
-5486402788920***Note: Emergent designs for highly competitive firms is no longer functional, product, territorial or matrix. But rather delayered, technologically sophisticated, and highly customer oriented.
00***Note: Emergent designs for highly competitive firms is no longer functional, product, territorial or matrix. But rather delayered, technologically sophisticated, and highly customer oriented.
420624050749200042976805166360Firms that adapt this way put more emphasis on functions of business (new product development, sales/warranty fulfillment, product quality, customer service) as oopposed to the functions of an organization (payroll, marketing, production, finance, HR,). New way reflects more our end objectives and allows us the keep our eye on the ball.
00Firms that adapt this way put more emphasis on functions of business (new product development, sales/warranty fulfillment, product quality, customer service) as oopposed to the functions of an organization (payroll, marketing, production, finance, HR,). New way reflects more our end objectives and allows us the keep our eye on the ball.
43891201325880Simplify and Delayer:
Get lean: reassign supporting staff, put them where the rubber meets the road, at work units not at HQ (Walmart 358 000 but 450 in HQ)
Widen spans of control: spans of 100-200 employee are common
Stop micro managing: empower the work force, let them deal with customers and if necessary adapt co policy ‘on the spot’.
Team based work systems: due to smaller HQ teams will be self governing:
Recruiting, hiring, performance evaluation, termination
Budgeting
Capital acquisition projects
Quality control, problem solving
Developing numerical stds for productivity and quality
Suggesting new products and prototype dev
Working with other teams from sales, marketing, prod development
00Simplify and Delayer:
Get lean: reassign supporting staff, put them where the rubber meets the road, at work units not at HQ (Walmart 358 000 but 450 in HQ)
Widen spans of control: spans of 100-200 employee are common
Stop micro managing: empower the work force, let them deal with customers and if necessary adapt co policy ‘on the spot’.
Team based work systems: due to smaller HQ teams will be self governing:
Recruiting, hiring, performance evaluation, termination
Budgeting
Capital acquisition projects
Quality control, problem solving
Developing numerical stds for productivity and quality
Suggesting new products and prototype dev
Working with other teams from sales, marketing, prod development
6035040-320040004663440594360Product division structures, matrix designs, vertical/horizontal coordination mechanisms are some tools to help. In addition companies can:
00Product division structures, matrix designs, vertical/horizontal coordination mechanisms are some tools to help. In addition companies can:
4663440-228600Tom Peters – success is directly proportional to the knowledge a corporation can bring to bear, how fast it can bring it to bear, and the rate at which it accumulates knowledge.
00Tom Peters – success is directly proportional to the knowledge a corporation can bring to bear, how fast it can bring it to bear, and the rate at which it accumulates knowledge.
-5486403246120Horizontal firm relies less on traditional departments with functional expertise. Instead functional experts are dispersed amongst work teams that perform core processes. Benefits:
Reduced cycle time. Documents pass through less layers.
Downsizing only temporary (cost reduction), this is better since it represents an productivity increase.
00Horizontal firm relies less on traditional departments with functional expertise. Instead functional experts are dispersed amongst work teams that perform core processes. Benefits:
Reduced cycle time. Documents pass through less layers.
Downsizing only temporary (cost reduction), this is better since it represents an productivity increase.
1828802697480001828804434840
ID Strategic Objectives
Analyze benefits
Eliminate unnec tasks
Organize on processes
Define nec processes
Determine ‘ownership’
Create teams
Set POs fo each process
Cut unnec staff
Empower employees
Trg, PER, pay etc to support
Creating a Horizontal Design
00
ID Strategic Objectives
Analyze benefits
Eliminate unnec tasks
Organize on processes
Define nec processes
Determine ‘ownership’
Create teams
Set POs fo each process
Cut unnec staff
Empower employees
Trg, PER, pay etc to support
Creating a Horizontal Design
044348400078638401234440Boundaryless org: use of self directed teams (lean corporate staff), wide management spans, comms, customer responsiveness, outsourcing, strategic alliances to make boundaries more flexible.
Hirschorn & Gilmore argue that altering authority, task, political and identity boundaries will accomplish this.
Authority Boundary. Even in self managed team environment the boss/ subordiante relationship exists (issuance of orders). Mgrs must knock down the walls, be open to criticism (even from subordiantes), take workers advice. It is assumed that problem solving ability is dispersed throughout the firm (mgmt does not have a monopoly on brains). Getting rid of this boundary is hard as sometimes a chain of command is necessary.
Task boundary. Idea is to take ownership for tasks despite what department may traditionally own it. All for one and one for all approach. Threat is in cost containment. Strategy OK when pursuing long term gains, think of T & D as investment vice expense. Otherwise that department is assisting others needs will be cut back.
Political boundary. Inter-department conflict inherent . Use accommodation and conflict resolution to assist. Use performance measurement systems that looks at both internal and external customer satisfaction. (indicators of increase) Use incentives to encourage collaboration. Link rewards to improved customer satisfaction.
Identity Boundary. (fighter guys) shared experiences set them apart form everyone else (so they think) – we are different, trust insiders more than outsiders. Us against them. Human nature, just make sure that good comms, common goals etc are in place to deal with it.
00Boundaryless org: use of self directed teams (lean corporate staff), wide management spans, comms, customer responsiveness, outsourcing, strategic alliances to make boundaries more flexible.
Hirschorn & Gilmore argue that altering authority, task, political and identity boundaries will accomplish this.
Authority Boundary. Even in self managed team environment the boss/ subordiante relationship exists (issuance of orders). Mgrs must knock down the walls, be open to criticism (even from subordiantes), take workers advice. It is assumed that problem solving ability is dispersed throughout the firm (mgmt does not have a monopoly on brains). Getting rid of this boundary is hard as sometimes a chain of command is necessary.
Task boundary. Idea is to take ownership for tasks despite what department may traditionally own it. All for one and one for all approach. Threat is in cost containment. Strategy OK when pursuing long term gains, think of T & D as investment vice expense. Otherwise that department is assisting others needs will be cut back.
Political boundary. Inter-department conflict inherent . Use accommodation and conflict resolution to assist. Use performance measurement systems that looks at both internal and external customer satisfaction. (indicators of increase) Use incentives to encourage collaboration. Link rewards to improved customer satisfaction.
Identity Boundary. (fighter guys) shared experiences set them apart form everyone else (so they think) – we are different, trust insiders more than outsiders. Us against them. Human nature, just make sure that good comms, common goals etc are in place to deal with it.
9509760777240005212080-594360Responsive Organization
00Responsive Organization
-640080-777240Inter-organizational Designs
Conglomerates
Strategic Alliances
Holding company
Companies have entirely different strategies/operate in diverse industry
(unrelated diversification)
Japan called Keiretsu and dominate economy (led to problems when cheaper better products avail, but kept buying off each other)
Companies:
Not related
Own each other
Do business with each other
Very powerful
Interest coord issues
American and Japanese doing this with European companies to penetrate EU
Done to:
Economies of scale in production or marketing
Fill gaps in technical/mechanical expertise
Drawbacks:
Require exhaustive coord
Deciding what is shared, what is propriety
Cultural/language barriers
Rising above suspicion/distrust
Becoming dependant on another company
00Inter-organizational Designs
Conglomerates
Strategic Alliances
Holding company
Companies have entirely different strategies/operate in diverse industry
(unrelated diversification)
Japan called Keiretsu and dominate economy (led to problems when cheaper better products avail, but kept buying off each other)
Companies:
Not related
Own each other
Do business with each other
Very powerful
Interest coord issues
American and Japanese doing this with European companies to penetrate EU
Done to:
Economies of scale in production or marketing
Fill gaps in technical/mechanical expertise
Drawbacks:
Require exhaustive coord
Deciding what is shared, what is propriety
Cultural/language barriers
Rising above suspicion/distrust
Becoming dependant on another company
2451735-683260Organizational Designs and Service Driven Firms
00Organizational Designs and Service Driven Firms
2800353202940Recognize these differences. Idea is to have "one stop programme" where trained personnel can make decisions that are backed up (right or wrong), eliminating need for transferring customers to different people in the company. Why? Because when the customer encounters any aspect of the firm and forms an opinion about that company's quality of service and/or product it is what Albrecht calls a Moment of Truth.
00Recognize these differences. Idea is to have "one stop programme" where trained personnel can make decisions that are backed up (right or wrong), eliminating need for transferring customers to different people in the company. Why? Because when the customer encounters any aspect of the firm and forms an opinion about that company's quality of service and/or product it is what Albrecht calls a Moment of Truth.
-291465343154000-291465297434000188023537744400024517355488940Mgrs must support employees who support the customer.
00Mgrs must support employees who support the customer.
24517355031740Directs the attn of people toward priorities of the customer. Reflected in personnel priorities. Becomes a rallying cry like Kehler (Service.People,Profits)
00Directs the attn of people toward priorities of the customer. Reflected in personnel priorities. Becomes a rallying cry like Kehler (Service.People,Profits)
24517354574540Convenience of customer vice convenience of company. Physical facilities, policies, methods, and comm. Process all say "this apparatus is here to meet your needs".
00Convenience of customer vice convenience of company. Physical facilities, policies, methods, and comm. Process all say "this apparatus is here to meet your needs".
51435423164000514355660390005143552127150051435475551500514354231640002800354117340Three factors for CA through service enhancement
00Three factors for CA through service enhancement
3943354574540Customer Friendly Systems.
00Customer Friendly Systems.
3943355031740A Strategy For Service
00A Strategy For Service
3943355488940Customer Oriented Front Line
00Customer Oriented Front Line
82810353202940Inverse relationship between production efficiency ( in marketing) and sales opportunities. In following case only clerical skill required for mail contact, but also limited chance of sales. Other extreme Face-Face customization requires highly skilled diagnostic ability but allows for a relationship to be built.
00Inverse relationship between production efficiency ( in marketing) and sales opportunities. In following case only clerical skill required for mail contact, but also limited chance of sales. Other extreme Face-Face customization requires highly skilled diagnostic ability but allows for a relationship to be built.
9995535423164000850963546888400083191355031740Sales opportunities
00Sales opportunities
111385356384290High
00High
81667354345940High
00High
82810356403340Low
00Low
11138535617474000919543561747400096526356060440Employee Skill Requirements
00Employee Skill Requirements
107956354803140Face/face
customizatin
00Face/face
customizatin
95383355374640Phoning
00Phoning
87382355946140Mail
00Mail
828103545745400082810354574540
00
45091352517140Lowers/erases profits. Ability to resolve problems on the spot affects decision to repurchase. 95% will rebuy if complaint quickly handled. If takes even a little time -70%. Even a 5% increase in customer retention can raise profit 25-85%.
00Lowers/erases profits. Ability to resolve problems on the spot affects decision to repurchase. 95% will rebuy if complaint quickly handled. If takes even a little time -70%. Even a 5% increase in customer retention can raise profit 25-85%.
45091351717040Erect entry barriers. Good service sets you apart, customers will be reluctant to leave even if it makes sense to do so. Trick is to market this way, if you market cheapest price you're telling customers to pursue that (you may not always be lowest, you're telling em to go.
00Erect entry barriers. Good service sets you apart, customers will be reluctant to leave even if it makes sense to do so. Trick is to market this way, if you market cheapest price you're telling customers to pursue that (you may not always be lowest, you're telling em to go.
4509135916940Global competition means the easy days are over. TQM is no longer the discriminator (everyone is using it). It has become a rule of competition. Go after competitive advantage through more services.
00Global competition means the easy days are over. TQM is no longer the discriminator (everyone is using it). It has become a rule of competition. Go after competitive advantage through more services.
4509135345440Easier and quicker than differentiating products. Rivals copy products, hard and costly to set yourself apart. Search for competitive advantage (CA) by differing services.
00Easier and quicker than differentiating products. Rivals copy products, hard and costly to set yourself apart. Search for competitive advantage (CA) by differing services.
8395335231140Do consider:
Needs/expectations of customer as they see them.
Where/how customers interact with firm.
Do not consider:
Standardization of service outputs -goes against differences between product/service. Ie. How can you do this if customer may be co-producer (msg: "we want your business and for you to be involved, as long as we do it our way".)
Above assumes adoption of manufacturing paradigm. Fails because cost containment and not customer needs is really driving force. Goods service continuum tells us to consider whether we are pure goods, bundled goods & services or pure service and react accordingly.
00Do consider:
Needs/expectations of customer as they see them.
Where/how customers interact with firm.
Do not consider:
Standardization of service outputs -goes against differences between product/service. Ie. How can you do this if customer may be co-producer (msg: "we want your business and for you to be involved, as long as we do it our way".)
Above assumes adoption of manufacturing paradigm. Fails because cost containment and not customer needs is really driving force. Goods service continuum tells us to consider whether we are pure goods, bundled goods & services or pure service and react accordingly.
8852535-226060Avoid Manufacturing Efficiency
00Avoid Manufacturing Efficiency
21088351945640001651635194564000-520065574040 Only produced when demanded
Delivered unsupervised
Provided when/where customer chooses
Labour intensive
Intangible, harder to measure
Often provided in presence of customer who participates in the delivery process
Recognition that customers actively involved opens opportunities to cement relationship. Chances of proce war effect diminished in industries where service co-produced with customer. They do not want to establish another relationship either. Emotional aspect. Customer want to trust suppliers. If give them reason to they will come back.
00 Only produced when demanded
Delivered unsupervised
Provided when/where customer chooses
Labour intensive
Intangible, harder to measure
Often provided in presence of customer who participates in the delivery process
Recognition that customers actively involved opens opportunities to cement relationship. Chances of proce war effect diminished in industries where service co-produced with customer. They do not want to establish another relationship either. Emotional aspect. Customer want to trust suppliers. If give them reason to they will come back.
-7486652517140
00
31375352517140Customers hate poor service
00Customers hate poor service
3823335231140003137535-111760Why target service?
00Why target service?
31375351717040Strengthen Brand Loyalty
00Strengthen Brand Loyalty
3137535916940Customers demand better quality
00Customers demand better quality
3137535345440Easier and quicker
00Easier and quicker
108013545974000-1771652540Differences Between Service & Products
00Differences Between Service & Products
-177165-568960Customer Service
00Customer Service
88525354803140If customers are the starting point to revenue growth, then employees who create and deliver that excellent service must be valued as much as the customers! Train, support, and reward employees that are achieving the aim.
00If customers are the starting point to revenue growth, then employees who create and deliver that excellent service must be valued as much as the customers! Train, support, and reward employees that are achieving the aim.
394335468884014 15 16 17
0014 15 16 17
382333545974012
0012
18802355431790003943355260340Big Picture
00Big Picture
23374354574540
Select employees based on their value for quality service. What you think and believe (about service) is more important than who you are - may lead to diverse workforce.
Revise job descriptions to emphasize teamwork, then coach them to do so. Customer is center of effort.
Give teams real time data on unit quality, costs, and productivity performance. Decentralize & simplify IS.
Adjust incentive systems to pay for performance. Develop appraisal systems that stress service behaviours.
Bonus pay adjustment of mgrs pay based on unit performance. Teach team the relationship of service to market share and profit (cause and effect)
Move managers to where service is being delivered. Interact with customers and model good service work. Mangers are not 'checking work' they are checking service.
00
Select employees based on their value for quality service. What you think and believe (about service) is more important than who you are - may lead to diverse workforce.
Revise job descriptions to emphasize teamwork, then coach them to do so. Customer is center of effort.
Give teams real time data on unit quality, costs, and productivity performance. Decentralize & simplify IS.
Adjust incentive systems to pay for performance. Develop appraisal systems that stress service behaviours.
Bonus pay adjustment of mgrs pay based on unit performance. Teach team the relationship of service to market share and profit (cause and effect)
Move managers to where service is being delivered. Interact with customers and model good service work. Mangers are not 'checking work' they are checking service.
83191353202940Do not associate cost cutting moves (voice mail) with sound business practices under this model. Remember the question - what value does this bring to customer service. Maintenance of the aim -1st principle of war.
00Do not associate cost cutting moves (voice mail) with sound business practices under this model. Remember the question - what value does this bring to customer service. Maintenance of the aim -1st principle of war.
988123527838400097669358026400057664358026400057664352311400047377354597402. Organize to improve service.
002. Organize to improve service.
873823524409404. Abandon Manufacturing assumptions.
004. Abandon Manufacturing assumptions.
79381352631440007938135231140005156835-111760003423285-454660Four Organizing Principles of Service Quality
00Four Organizing Principles of Service Quality
97669352311400016516352311400016516352311400040519351031240Occurs in firms that are willing to subordinate control processes to service enhancement and seek employee empowerment.
Coordinated effort to support training, resources, and authority for total service quality
Customer needs ahead of production efficiency
Shift of IS, incentives, trg & dev, career planning, and management trg form bottom line to top line emphasis
Putting service first:
Service training for employees
Delayering
IS to measure customer satisfaction
Incentives to spur sales to repeat customers
Above become investments, big question-How much value in what we are doing will add to customer service?
Sustained customer loyalty to the service/product mix erects entry barrier (reduces attractiveness of competitors products and allows higher profit margin, i.e people will pay a premium for good service)
00Occurs in firms that are willing to subordinate control processes to service enhancement and seek employee empowerment.
Coordinated effort to support training, resources, and authority for total service quality
Customer needs ahead of production efficiency
Shift of IS, incentives, trg & dev, career planning, and management trg form bottom line to top line emphasis
Putting service first:
Service training for employees
Delayering
IS to measure customer satisfaction
Incentives to spur sales to repeat customers
Above become investments, big question-How much value in what we are doing will add to customer service?
Sustained customer loyalty to the service/product mix erects entry barrier (reduces attractiveness of competitors products and allows higher profit margin, i.e people will pay a premium for good service)
82810351145540Give all employees the authority to make on the spot decisions to meet (or exceed) customer needs. This requires training investment.
00Give all employees the authority to make on the spot decisions to meet (or exceed) customer needs. This requires training investment.
88525354597403. Empower employees
003. Empower employees
-4057654597401. Classify firm's services
Use the client-customer spectrum below. Idea is to match service strategy to offerings. Some firms find their offerings are actually routine when maybe they should not be. You must provide an adequate level of service and be willing to put $ into training if necessary.
Service Spectrum
Unique
Mixed
Routine
Types of server interactions
Face to face, customization or loose specifications
Face to face, tight specifications
On site technology
Mail contact
Client requirement
Unique solutions to technical or complex problems
Experience based solutions to more routine problems
Generic solutions to common problems
Example
Product liability class action suit
Routine driver speeding violation
Software completed tax calculation
High Extent of employee training in service quality Low
001. Classify firm's services
Use the client-customer spectrum below. Idea is to match service strategy to offerings. Some firms find their offerings are actually routine when maybe they should not be. You must provide an adequate level of service and be willing to put $ into training if necessary.
Service Spectrum
Unique
Mixed
Routine
Types of server interactions
Face to face, customization or loose specifications
Face to face, tight specifications
On site technology
Mail contact
Client requirement
Unique solutions to technical or complex problems
Experience based solutions to more routine problems
Generic solutions to common problems
Example
Product liability class action suit
Routine driver speeding violation
Software completed tax calculation
High Extent of employee training in service quality Low
6223635-9118600023374354917440Can take as long as five years. Cultural change through changing incentive programs, employee behaviour, firm values, training. Signs of success:
Employees understand desired behaviour
Employees trained as they are oriented
Measurement of service reaches all aspects of firm
Pay component based on measured service excellence
Recruiting and hiring reflect excellent service skills
Older employees reflect values to new employees
Rivals take notice
00Can take as long as five years. Cultural change through changing incentive programs, employee behaviour, firm values, training. Signs of success:
Employees understand desired behaviour
Employees trained as they are oriented
Measurement of service reaches all aspects of firm
Pay component based on measured service excellence
Recruiting and hiring reflect excellent service skills
Older employees reflect values to new employees
Rivals take notice
23374352517140"Wall to Wall" employees as valued as customers ( standardizing service mix frustrates employee efforts and may lead to higher turnover). There is a link btw customer satisfaction, employee morale, and service quality training. (At Ryder trucks, turnover and workman's comp claims dropped substantially after receiving trg in service quality)
00"Wall to Wall" employees as valued as customers ( standardizing service mix frustrates employee efforts and may lead to higher turnover). There is a link btw customer satisfaction, employee morale, and service quality training. (At Ryder trucks, turnover and workman's comp claims dropped substantially after receiving trg in service quality)
23374351717040Mission statement; Why should the customer choose us? All aspects of firm culture should support the answer.
00Mission statement; Why should the customer choose us? All aspects of firm culture should support the answer.
23374353774440By expanding the discretion of frontline employees. A project organization should temporarily be set up fo manage implementation. (lasts as long as it takes and headed by a steering committee). Service Labs - sessions to develop service mission and identify areas for improvement. Implementation includes measurements of success/improvements.
00By expanding the discretion of frontline employees. A project organization should temporarily be set up fo manage implementation. (lasts as long as it takes and headed by a steering committee). Service Labs - sessions to develop service mission and identify areas for improvement. Implementation includes measurements of success/improvements.
-628654117340Implement
4)
00Implement
4)
-628652974340Employee Training
3)
00Employee Training
3)
-628651831340Company Wide Strategy
2)
00Company Wide Strategy
2)
2337435459740How well are we doing?
What are we doing right?
What are we doing wrong?
What are the customers expectations?
How do we compare to our competition?
00How well are we doing?
What are we doing right?
What are we doing wrong?
What are the customers expectations?
How do we compare to our competition?
-628655260340Make Permanent
5)
00Make Permanent
5)
-62865688340Service Audit
1)
00Service Audit
1)
-177165345440Steps
00Steps
165735254000-177165-340360Creating A Service Driven Organization
00Creating A Service Driven Organization