Showing posts with label Industry. Show all posts
Showing posts with label Industry. Show all posts

Monday, April 18, 2016

Monitoring and Researching Service Success and Failure

Monitoring and evaluating service performance is important because it allows for improvement throughout the service profit chain. Measurement and analysis allows businesses to make decisions based on data, lowering their exposure to risk and providing more predictable results (Gale 1992). Small businesses such as Canary Jane’s Flowers have less need and means to monitor performance, due to smaller sample sizes and more intimate existing knowledge of the business and customers, but such research still holds substantial value for service improvement.

It is common and natural for business operators to self-assess their performance against their past performance and objectives, but it is generally unreliable when done without structure, analysis and impartiality (Parker 2012). Canary Jane’s currently has unstructured performance measurement without formal metrics, consisting of a personal awareness of repeating customers, and reviews on external websites. The business is incidentally reviewed extremely well, with an average 4.9 star rating from 35 reviews on Facebook, Yelp, Yellow Pages, and Etsy. Reviews and ratings are currently the only impartial measurement of Canary Jane’s performance.


Measurement of returning customers is important as it is much cheaper and easier to retain customers than it is to attract new ones (Hennig-Thurau & Klee 1997). As such, customer retention rates are a very important metric to measure. Measuring retention rate is a simple calculation comparing a quantity of new customers to existing customers, but requires those two points of data. Returning and new customers can be counted simply by asking all customers if they have shopped at Canary Jane’s before, with figures stored and compared and monthly intervals to assess retention and attrition rates. A services success or failure will also be impacted by the organisations ability to manage capacity and demand.


References: 

Parker, D 2012, Service Operations Management, Edward Elgar, Cheltenham: UK, pp. 285-287.
Hennig-Thurau, T & Klee, A 1997, 'The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development', Psychology and Marketing, vol. 14, no. 8, pp. 737-764.
Gale, B 1992, Monitoring customer satisfaction and market-perceived quality, American Marketing Association, Chicago.


Service Quality and Service Guarantee

Service quality defines the level a customer is satisfied because it is the critical element customers use to evaluate service (Zeithaml, Bitner & Gremler 2013, p. 87). Therefore in a consumer service experience within a store, service providers must reach out to customers and listen to their desired fulfilments while also assisting their journey from enquiries, selection process, purchase process through to the possible post purchase issues. Ensuring service quality and eliminating the need for service recovery is “doing it right the first time”, this shows the business is reliable (Zeithaml, Bitner & Gremler 2013, p. 201). Canary Jane’s Flowers is a floral service combined with highly priced yet small sized gift goods, for example candles, rosedale hankies and hand creams. The higher costs of the small gift products would naturally create an implied higher service quality. “The intangibility and unpredictability of services generally cause consumers to perceive a higher risk associated with a service” (Sharma & Varghese 2013). Customers can have uncertainty and be unconfident of the service quality for particularly high priced stores, like Canary Jane’s (Sharma & Varghese 2013).
A method to reduce consumer’s uncertainty with the quality of a product is guarantees, which ensure the customer is 100% satisfied (Hart 1988). “A service guarantee is a promise by a company to compensate the customer in some way if the defined level of service delivered is not met.” (Sharma & Varghese 2013). There are several characteristics of effective guarantees that will be explained relating to Canary Jane’s Flowers and the benefits of having an effective guarantee will be illustrated. Effective guarantees should be unconditional, meaningful, easy to understand and easy to invoke (Zeithaml, Bitner & Gremler 2013, p. 202). Canary Jane’s guarantees that the flowers will last at least 4 days after buying them, this is unconditional because it “promises customer satisfaction unconditionally, without exceptions” (Hart 1988). This guarantee is meaningful because it covers the aspects of the service that is important to the customer, which is the freshness and quality of the flowers. It is also meaningful financially; a full refund or replacement is given. The guarantee is easy to understand as it is simple and pinpoints the promise (Hart 1988). A guarantee must be easy to invoke, as explained by Hart (1988) “A customer who is already dissatisfied should not have to jump through hoops to invoke a guarantee.”
“Service guarantees have been advocated as a potentially powerful weapon today in trying to differentiate between services and gain the competitive edge” (Sharma & Varghese 2013). Another benefit of service guarantees is maintaining quality (Zeithaml, Bitner & Gremler 2013, p. 204).The organisation can maintain quality as the guarantee is an indicator of what the service should provide, for instance at Canary Jane’s Flowers they guarantee same day delivery if you order before 2pm. By having this benchmark an employee knows the minimum needs that need to be met for the customer, which in this case is getting the flowers delivered to the customer on the same day. Canary Jane’s Flowers uses Murphy Alan Johns for the delivery of their orders and if for any reason there is a disruption with the process, then the staff will assist with the delivery to ensure that the guarantee is met. Small to medium enterprises often bestow less service guarantees due to less workers to help achieve promises, avoiding over promising is considered safe in the employer's eyes. The low number of apparent written and verbal guarantees from Canary Jane’s will ultimately impact the “willingness of the customer to make frequent visits” (Sharma & Varghese 2013). Ensuring the guarantees are used effectively, they will benefit the business. Canary Jane’s will increase loyal customers through the use of guarantees, which equates to profitability in the long run. Guarantees are irrelevant if the organisation does not monitor whether they are successfully delivering a quality service.



References: 

Zeithaml, V, Bitner, M & Gremler, D 2013, Services marketing, McGraw-Hill Irwin, New York.
Sharma, K & Varghese, M 2013, 'Influence of Service Guarantee on Consumer Behavior in organized retail stores', Romanian Journal of Marketing, vol. 1, pp. 10-17.
Hart, C 1988, 'The Power of Unconditional Service Guarantees', Harvard Business Review, vol. 66, no. 4, pp. 54-63.

Friday, May 30, 2014

Car Park Innovation - By Mitchell Formica & Alana Cuce

The Car Parking industry is a relatively old one, however, there is room for innovation through the use of mobile technology we have create a way for people to find parking spots easily. Whilst the demand for car spots is increasing we are hoping to get in early on a slowly developing industry so we can build up our company before others enter the market. (Parking Association of Australia Inc, History of the Parking Association, 2012).
The car parking industry involves the implication of technology to easily access and obtain information on car parking facilities so that you can locate and acquire a car parking spot. This innovation uses the subscription based business model which allows people to enter in their details so that they can be later used to further help develop our business. This vital information people are giving us is ultimately used for car parking purposes but has other useful uses.

The cost for innovation is small in the car parking industry as there isn’t a lot of technological implementations, this is good as there won’t be much spending or investments needed but also bad because there are little barriers to entry and any company could take us over.  The innovation is unlike any on the market and will fill a gap or a niche that people can utilise. The use of E-business today is a vital part of communication within and between business, as it allows more information and knowledge to pass through on to others that might be interested in the given industry. This enhances investments and ultimately allows for collaboration and more ideas. (Berthon, et al, 2008).

With this we hopefully aim to increase the company’s market share and long term think of other cities that we distribute our product to, Australia is our oyster and we need to branch out into new areas and try to get our product into more people’s pockets and phones. Through the use of E-business by using the technology to communicate with others around us it will help our product get out there onto the market, while also open up the idea of collaboration with business partners and geographically distribute our product. (Journal of Electronic Commerce in Organizations, January-March 2011).

Reference list:


Parking Association of Australia Inc, 2012, History of the Parking Association, viewed 29 August 2013

Communications of the ACM. Jul2012, Vol. 55 Issue 7, p22-24. 3p. 1 Color Photograph.

Journal of Electronic Commerce in Organizations; Jan-Mar2011, Vol. 9 Issue 1, p17-37, 21p, 1 Diagram, 1 Graph


Thursday, May 29, 2014

Managing bullying and harassment in the workplace - By Mitchell Formica

Our early days as a child on the playground may unearth memories of bullying and harassment by our peers; those memories are now being re-lived by a new bullying and harassment phenomenon that is making its way into the workplace. Nowadays it is estimated that “as many as 53 per cent of UK employees have been bullied at work at some point during their working life”, (Anas Khan, Riad Khan, 2012), and others have estimated more. On top of this, “some studies have revealed that nearly 95% of employees have had some exposure to general bullying behaviours in the workplace over a 5 year period” (A.-K. Samnani, P. Singh, 2012). This profound evidence demonstrates the seriousness for action and a growing problem that is emerging in the work environment for all employees. The issue needs to be recognised in the workplace as a serious problem and one that needs to be dealt with in a number of ways. This will help to ultimately stop bullying and harassment in all forms of working life. 

Bullying and harassment comes in many forms. It may be through the use of emails, social networking, day to day communication with peers, and may even arise from autocratic management styles, all of which can be seen as an issue in today’s business world. Simple interactions with other co-workers can cause bullying and harassment issues. But what is bullying and harassment and how can we stop it? These are the un-answered questions that need to be identified before we can start to solve the issues. Bullying “involves negative acts that occur repeatedly, regularly (systematically) and over a period of time, and the person targeted has difficulties in defending him/herself. In some definitions, the aim of harming the target or intentionality of the behaviour is included”. (Maarit Vartia-Väänänen, 2013). Bullying and harassment are much the same in many ways, although harassment differs from bullying in some instances. Bullying mainly refers to the negative acts by co-workers, supervisors or managers or subordinates, while harassment arises when one or more worker or manager are repeatedly and deliberately abused, threatened or humiliated in circumstances relating to work. So how do we manage workplace bullying and harassment and what are the rules that clearly define where they are taking place?  These are the underlining factors that need addressing in every workplace today.

The role of the Human Resource Manager is to undertake the management of the employees that make up the organisation. “Soft HRM places an emphasis on managing employees as humans instead of resources, suggesting that employees need to be treated with “consideration and a personal touch” in order to attain favourable outcomes” (Carson, 2005; Truss et al., 1997).
“It emphasizes the ability of HRM to satisfy employees’ needs, which is hypothesized to generate favorable HRM outcomes (e.g. commitment) and subsequently improved organizational performance" (Elise Marescaux, Sophie De Winne, Luc Sels, 2013). Employees can use this human resource as a way of speaking out about an issue in the workplace.

In the case of John McPhilbin who appeared in the article “A Slow Poison” by Jane Faure-Brac, workplace bullying is an everyday activity. (Jane Faure-Brac, 2012) John spends his day talking to people like him that are victims of workplace bullying and harassment, he tries to get an understanding of their situation and help them in any way he can. McPhilbin was bullied at work and knows how these people feel, he can associate himself with them and tries to get an understanding of their issues and helps them in any way he can. Although John’s efforts seem admirable, the reality is that “Roughly one in three employees in the workplace has experienced some form of bullying or poor behaviour and one in two has witnessed it” (Jane Faure-Brac, 2012). As a result, more and more people are becoming increasingly aware of the issue in the workplace and are implementing strategies to combat it.

In today’s global economy, managers are gathering employees from all parts of the world, with different cultures and characteristics. While this may seem like a bad thing, in reality, diversity has impacted the workplace in a positive manner. Diversity allows for a change in the vibe of the workplace, it exposes people to new cultures and beliefs for people to understand and accept. It also encourages a fair working environment where all employees can work together towards a common goal. On the negative side, sometimes different characteristics can make people stand out and thereby create a target for others to perpetrate their bullying tendencies towards.

An “employee experiencing the status inconsistency can become either a perpetrator or a target”; “researchers have found that the feeling of uncertainty resulting from status inconsistency can produce aggression in employees” (A.-K. Samnani, P. Singh (2012). This leads to workplace bullying or harassment and for the targets this means that they are consequently bullied because of a difference in characteristic or personality. For effective diversity workplace practices to be successful there needs to be policies and practices in place for the employees so that rules can be follow accordingly. This will help to prevent people from becoming the perpetrator or the target in any given situation. These policies and practices will shape the culture of an organisation and provide employees with the guidelines for proper etiquette in the workplace.

While the business world today may have a greater understanding of the effects on people that are bullied or harassed, there is still a lot of work to be done on the issue. The overall awareness of the problem has not filtered into every industry, with some HR departments not even bothering to look into and follow up on employee’s complaints. Larger organisations are taking on board this issue as a serious matter as they see the value of cultural differences and how they can help with the survival of their business. These organisations are generally watched more closely by the public and therefore would suffer negatively if unsafe environments were provided. Smaller business are more likely to be able to ignore disgruntled employees and may choose to ignore bullying or harassment complaints as they are less exposed to public opinion. If there is going to be a change for the future, it will require all employers and employees to gain knowledge of the detrimental effects of bullying and harassment in the workplace and to see how they can work together to solve this important issue.


Reference list:





Maarit Vartia-Väänänen, 2013, Workplace Bullying and Harassment in the EU and Finland http://www.jil.go.jp/english/reports/documents/jilpt-reports/no.12.pdf

Elise Marescaux, Sophie De Winne, Luc Sels, (2013) "HR practices and HRM outcomes: the role of basic need satisfaction", Personnel Review, Vol. 42 Iss: 1, pp.4 – 27 http://www.emeraldinsight.com.ezproxy.lib.swin.edu.au/journals.htm?issn=0048-3486&volume=42&issue=1&articleid=17068391&show=html


Truss, C., Gratton, L., Hope-Hailey, V., McGovern, P., Stiles, P. (1997), "Soft and hard models of human resource management: a reappraisal", Journal of Management Studies, Vol. 34 No.1,.
pp.53-73