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Quality Systems

PG Diploma in Hospitality Management

Customer Service and Quality Systems – Session 5

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Objectives

• Use Five Gap Model to identify ways to improve customer service

• Understand the concepts behind TQM and how they can be used to improve quality and efficiency

• Understand the application of SERVQUAL to improve customer service

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Review

• Explain the terms ‘Theory X’ and ‘Theory Y’• Briefly explain the motivational theories of:-

– Abraham Maslow– Frederick Herzberg– Victor Vroom

• Explain why, in the light of the theories of Geert Hofstede, you would design work groups differently for groups of Americans and groups of Chinese. What would be different about how you would go about motivating these employees?

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Importance of Efficiency

• Maximum profit that can be realistically expected as % of gross receipts:

• Hotel – 20%

• Restaurant – 15%Source: “Hotel Operations Management”, Hayes & Ninemeier,

Pearson, 2004

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Quality and Productivity

Market Gains– Improved customer

service– Improved reputation

Reduced Costs– Reduced compensation

and refunds– Increased efficiency

Increased Profits

Improved Quality

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Customer Expectations

• Essential Services - meet fundamental requirementseg. Reasonable business hours, admit or check-in guests, inform about service details, acknowledge complaints

• Expected Services – guests think service provider should offereg. Convenient operating hours, payment options, reservations, reasonable information about services, facilities, locale

• Optional Services – guests consider these an added bonuseg. Ambience, convenience, unobtrusive service

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Five Gap Model

Personal Needs

Expected Service

Service Delivery

Service QualitySpecifications

Management Perceptions of Consumer Expectations

Past ExperienceWord-of-Mouth

Communications

External Communications

Perceived Service

CUSTOMER

ORGANISATION

GAP 5

GAP 1

GAP 2

GAP 3

GAP 4

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Closing the GapsGAP 1: Consumer Expectations vs.

Management PerceptionClose Gap1. Talking to customers2. Talking to customer contact

employees3. Marketing information systems –

customer surveys – analysis by segment

4. Reducing levels of management

GAP 3: Service Quality Specification vs Service Delivery

Close Gap1. Training2. Internal Marketing – pride3. Teamwork4. Reward Systems5. Service Quality Audits

GAP 2: Management Perception vs Service Quality Specification

Close Gap1. Management Commitment –

resources2. Use of hard and soft technology3. Shift Demand4. Is meeting customer

expectations financially feasible?

GAP 4: Service Delivery vs. External Communications

Close Gap1. Know capabilities of firm2. Good communications within

the firm3. Internal Marketing - teamwork

GAP 5: Expected Service vs. Perceived Service

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Gaps Exercise

• Working in groups of two or three identify gaps of each of the 5 types in organisations where you have worked.

• How could these gaps be closed?

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TQM

Total Quality Management: -

• Encompasses entire organization and all its activities from supplier to customer

• Stresses a commitment by management to have a continuing company-wide drive toward excellence in all aspects of products and services that are important to the customer

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Achieving TQM

EmployeeFulfilment

QualityPrinciples

Organisational Practices What to do

How to do it

Attitudes and Motivation

CustomerSatisfaction

Flo

w o

f A

ctiv

itie

s

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Organizational Practices

• Leadership

• Mission statement

• Effective operating procedure

• Staff support

• Training

What is important and what is to be accomplished

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Quality Principles

• Customer focus• Continuous improvement• Employee empowerment• Benchmarking• Just-in-time• Tools of TQM

How to do what is important and to be accomplished

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Continuous Improvement

• Represents continual improvement of processes and customer satisfaction

• Involves all operations and work teams

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• Getting employees involved in service improvements– 85% of quality problems are due to process &

material

• Techniques– Support workers– Let workers make decisions– Build teams & quality circles

Employee Empowerment

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• Group of 6-12 – employees from same work area

• Meet regularly– 4 hours/month to solve work-related problems

• Facilitator – helps ensure the discussion is effective

• Needs: – support and recognition from

management– training in problem solving

techniques

Quality Circles

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Benchmarking

Selecting best practices to use as a standard for performance

• Determine what to benchmark

• Form a benchmark team

• Identify benchmarking partners

• Collect and analyze benchmarking information

• Take action to match or exceed the benchmark

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Just-in-Time

Technique of continuous improvement applied to processes that drives out waste and improves quality eg. McDonald’s– Suppliers – goods should be delivered as close as

possible to the time they are used– Layouts – layout designed carefully keeping things

apart that need to be kept apart but facilitating smooth flow of a process

– Inventory – to be kept to a minimum– Scheduling – personnel scheduled to precisely meet

demand and production in small batches

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• Service quality perceptions depend on comparison of expectations with reality

• Perception of service quality derived from process as well as outcome

• Types of service quality– Normal: routine service delivery– Exceptional: how problems are handled

TQM In Services

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SERVQUAL

• Service quality is measurable

• Service is of high quality when customers’ expectations are confirmed by actual delivery of service

Parasuraman, Zeithaml and Berry

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Dimensions of SERVQUAL

1. Reliability – ability to perform the promised service dependably and accurately

2. Assurance – knowledge and courtesy of employees and their ability to inspire trust and confidence

3. Tangibles – physical facilities, equipment and appearance of personnel

4. Empathy – caring, individualised attention and attitude of personnel

5. Responsiveness – willingness to help customers and provide prompt service

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SERVQUAL Exercise

• Chose one of the SEVRQUAL dimensions

• Using the SERVQUAL instrument that you have been given, write four questions which might be part of a SERVQUAL questionnaire designed to measure expectations and experience of users of the college canteen