Transcript CUSTOMER SERVICE/QUALITY

Chapter 7
QUALITY
ORGANIZATIONS
AND SERVICE
“There are only two qualities in
the world: efficiency and
inefficiency, and only two sorts
of people: the efficient and the
inefficient.”
George Bernard Shaw
OBJECTIVES
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Define productivity and its impact on organizational
success
Identify and define directional statements
Know the various types of plans used in an
organization
Define the primary business functions and their
purpose in an organization
Define quality and its importance in business
State the difference between a product, a good, and a
service
Define creativity and innovation
Identify and describe the importance of customers and
customer service
Describe how to handle a difficult customer
PRODUCTIVITY IN THE WORKPLACE
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Productivity: to perform a function
that adds value to the company
Whatever you produce (output) should
add value to the company
Productivity at work starts with:
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Ethics
Attitude
Goals
PRODUCTIVITY IN THE WORKPLACE
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Mission Statement: a statement
of purpose (what and why)
Vision Statement: a company’s
viable view of the future (where)
Values Statement: standard of
behavior (how)
Directional Statements:
foundation for why a company
exists and how it will operate
(mission, vision, and value)
PRODUCTIVITY IN THE WORKPLACE
Company Strategy
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Strategy: outlines major goals and
objectives and serves as a company
roadmap
Strategic plan: a formal document
that identifies how the company will
secure, organize, utilize, and monitor
its resources
Company resources
 Human (employees)
 Fiscal (financial)
 Capital (long-term investments)
PRODUCTIVITY IN THE WORKPLACE
Company Strategy
Goal: broad statement or
aim
 Objectives: short-term
goals (activities) that
support a goal; objectives
have timelines and are
measurable
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LINES OF AUTHORITY
President
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Organizational
structure: the
way a company
is organized
Organization
chart: a graphic
display of the
formal lines of
authority.
 Identifies key
functions
within the
company
Marketing
Vice President
Sales
Advertising
Operations
Vice President
Production
Distribution
Finance
Vice President
Mgmt. Info. Systems
Vice President
Accounting
Director
Computer
Accounts
Receivable
Supervisor
Accounts
Payable
Supervisor
Figure 7-1
LINES OF AUTHORITY
Company Structure: Key Titles
Board of
Directors
President/C.E.O.
The Leader-reports to Board
Responsible for
overall strategy
and policies
Investors/
Owners
Senior Management
(Vice Presidents)
Middle Management
(Directors, Managers)
Operation Managers
(Supervisors, Assistant Managers)
Assists President/CEO in identifying and
implement company strategy
Work on tactical issues (link strategy
into day-to-day operations
Work on operational issues
(daily issues)
Employees
Figure 7-2
LINES OF AUTHORITY
Major Organizational Functions
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Divisions: major functions within a
business
Departments: carry out specific functions
within divisions
Key business functions
 Finance and accounting
 Human resource management
 Operations
 Information systems
 Marketing
 Legal counsel
LINES OF AUTHORITY
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Finance and Accounting
Department: department
responsible for securing the
distribution and growth of a
company’s financial assets
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Capital budget: long-term
investments
Operational budget: short-term
items
LINES OF AUTHORITY
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Human Resources:
responsible for recruiting,
hiring, training, evaluating,
compensating, promoting, and
terminating employees
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Deals with the employee (people)
side of business
LINES OF AUTHORITY
• Operations: deals with the production and
distribution of the company’s product
• Information Systems (IS): deals with
electronic management of information within
an organization
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Routinely back-up files
Empty electronic trash bin
Conduct routine virus checks
Responsible for reported computer viruses and
system problems
LINES OF AUTHORITY
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Marketing Department: responsible for
creating, pricing, selling, distributing, and
promoting the company’s product
 Every employee is a walking billboard for
the company
Legal Counsel: handles all legal matters
relating to the business
 Check with company legal counsel prior to
engaging in a contract on behalf of the
company
QUALITY AND THE COMPANY
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A building, its employees, and the
product produced are major elements
that define a company, but a company
needs customers to succeed
Each job in the company has a purpose
Do your best at all times
QUALITY AND THE COMPANY
Important Company Elements
Quality
Customer loyalty
Employee loyalty
Profit
QUALITY AND THE COMPANY
Quality
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Quality: a predetermined standard
that defines how a product is to be
provided
 Customers demand quality in the
product and from the company’s
employees
 If customers don’t perceive that they
have received a quality product, they
will not make a repeat purchase
QUALITY AND THE COMPANY
Customer Loyalty
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Customers will repeat purchases
when they receive value and a
quality product
Companies want to build brand
loyalty with customers
Customers will be loyal to a
company and its products when
quality products and customer
service are consistently provided
QUALITY AND THE COMPANY
Employee Loyalty
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Employee loyalty: an
employee’s obligation to
consistently support a company
and its mission
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Do your job and do it well
Show respect for company policies,
your coworkers, and the company’s
customers
Promote the company and its
products
Do not speak poorly of your
company, coworkers, or the
company’s product
QUALITY AND THE COMPANY
Profits
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The success of a company
depends on profit
Profit: revenue minus
expenses
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Revenue: money coming in from
sales
Expenses: costs involved in
running the business
As profits increase, the
company can grow
TALK IT OUT
Identify common money
wasters in the workplace
QUALITY AND THE COMPANY
Product vs. Good vs. Service
 Product: what is produced by a
company; this can be a good, a service,
or both
 Good: a tangible item, something that
you can physically see or touch
 Service: an intangible product, in
other words, you cannot touch or see the
product
WHO IS THE CUSTOMER?
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Customer: an individual or business that
buys or uses the company’s product
A company cannot survive without
customers
Internal customers exist within a company
 Coworkers and other departments
External customers are individuals who the
company serves outside
 Customers, vendors, and investors
WHO IS THE CUSTOMER?
 To create a satisfied customer, you
need a high-quality product or service
and excellent customer service
Quality Employees + Quality Inputs
= Quality Products
= Satisfied, Loyal Customers
= Profits
QUALITY
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When it comes to quality, the expectation of
customers is high
Customers expect that a product will last
Value: when customers believe they are
getting a good deal for the price they paid
 Customers expect value
 Customers measure product quality by
comparing your product to similar
products
CREATIVITY and INNOVATION
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Creativity: coming up with a new and
unique good, service, or system. A
creative person will ask, “what if”
instead of being constrained by the
barrier of an item’s or service’s original
use
Innovation: process of turning a
creative idea into reality
EXCELLENT CUSTOMER SERVICE DEFINED
 Customer
Service: the treatment an
employee provides a customer
 Respect and kindness
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Competent: an employee who knows the
product his or her company offers
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Dependable: an employee who is reliable
and takes responsibility to assist a customer
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Responsive: an employee that provides a
customer personal attention
EXCELLENT CUSTOMER SERVICE
Impressions
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As soon as a customer comes in
contact with a business, an opinion is
formed about that business
There is only one first impression, so it
must be good
The appearance of the building and/or
employees can be the reason a
customer comes to your company in
the first place
TALK IT OUT
What customer body
language would indicate
a customer needs help
and what body language
would indicate a
customer wants to be left
alone?
THE IMPACT OF CUSTOMER SERVICE
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Get to know your customers
Excellent customer service is the biggest
reason customers return
Build a relationship with the customer that
will make him or her loyal to you and your
business
A business needs satisfied customers to not
only make repeat purchases, but also to tell
others about their favorable experience
TALK IT OUT
Discuss the difference
between a service and
customer service.
THE DIFFICULT CUSTOMER
“The customer is always right”
 The customer may not be right
 Although the customer may be wrong,
adopt an attitude that the customer is
unhappy and do all you can to help the
customer solve the problem
 Have patience and sympathize with the
customer
THE DIFFICULT CUSTOMER
Tips for Handling the Customer
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Stay calm, let the customer talk, and
listen for facts —let the customer vent for a
few minutes, do not interrupt or say “please
calm down:” do not take harsh words
personally
Watch body language —tone of voice, eye
contact, and arm movement; if you feel a
customer has the potential to become violent
or physically abusive, immediately seek
assistance
Acknowledge the customer’s frustration
—say, “I can understand why you are upset,”
and summarize the concern to let him or her
know you understand
THE DIFFICULT CUSTOMER
Tips for Handling the Customer (cont.)
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Make sure the problem gets solved —
try to take care of the problem yourself
Know company policy —if a customer
challenges a policy, calmly and politely
explain the purpose of the policy
Expect conflict, but do not accept
abuse —if a customer shows
aggressiveness or is cursing, politely tell
that customer you cannot help until he or
she is able to treat you in a respectful
manner; if he or she continues the
inappropriate behavior, immediately call a
supervisor
TALK IT OUT
If a customer is angry
with a raised voice, what
would you say to that
customer?