Academy of Management Executive, 2002, Vol. 16, No. 4
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Driving service effectiveness through employee-customer linkages
S. Douglas Pugh, Joerg Dietz, Jack W. Wiley, and Scott M. Brooks Executive Overview
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The management team at a national retailer of consumer healthcare products came under pressure from the parent company to improve profitability. In the past, they had focused on progressive human
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Linkage research integrates functional areas in a company: the customer-focused processes and measures of the marketing and operations areas, and the employee-focused measures of human resource management (HRM). It provides managers in different areas with a common language and framework for a holistic, strategic measurement system focusing on the shared objective of serving the customer. Second, the employee survey, dubbed the Service Excellence Index, helped to establish an agenda of the HRM issues that mattered most for customer satisfaction and financial success. The Service Excellence Index measured employee attitudes toward and perceptions of several workplace practices, including working conditions, workplace obstacles, technology, training, pay, benefits, and quality focus. The specific practices showing the strongest relationships to customer satisfaction were training, teamwork, and a consistent managerial emphasis on the delivery of quality products and services. On the basis of these relationships, a business case was built for increasing the amount of training for low performing stores, adjusting the store design to facilitate teamwork, and evaluating store managers on their service-quality focus. Linkage research helps managers identify, measure, and manage the intraorganizational drivers
changes in the nature of running a healthcare business. Lastly, they were able to realize the
This results in companies complying to their employee's desires, simply to ensure their own success. GuideStar, one of the largest sources of information on nonprofit organizations, organized a research paper that gathered information from multiple studies about the correlation between employee satisfaction and customer satisfaction. It was concluded that there is a strong positive relationship between the two. To support the claim, the author of the document gave the example of “...a study at Sears Roebuck & Co. showed that a five-point improvement in employee attitudes led to a 1.3 rise in customer satisfaction which, in turn, generated a 0.5 increase in revenues” (2). These connections encourage the urgency of ensuring both satisfactions inside and outside the office
The company’s people-driven values and assumptions about employees are that productivity and employee performance are the means the means to achieve customer satisfaction. It is
The immediate purpose that Armstrong has set for the linkage analysis is to measure the impact that specific enhancements for reductions of key-customer satisfaction drivers would have on branches’ financial performance. From a technical point of view, the regression model is well developed with the data provided. Each factor’s weighed impact to the final gross contribution is indicated in the results.
The memorandum from Salvador Monella to the Board of Directors addresses the rising costs of employee healthcare benefits at Penn-Mart. His communication includes an explanation of his purpose in addressing the healthcare costs, findings regarding Penn-Mart’s benefits costs, a recommended program to implement for cost reduction, and a discussion containing support for their recommendation. While some business people may be tempted to simply accept the information presented in Mr. Monella’s memorandum, it is my opinion, after reading Browne and Keeley’s Asking the Right Questions (2012), that adopting a critical thinking approach is the most effective way to evaluate the document.
This Harvard Business Review case is about the company Vitality Health Enterprise. The new CEO, Beth Williams brought in new ideas to revitalize the company and launch it into a new era of growth. The company switched over to relative performance grading from an absolute one. The case give clear insights of the pros and cons of both the systems. The satisfaction for some employees were a reason of discontent for others.
In the healthcare field, there are forces that drive practice and develop change within an organization. There are both internal and external forces in which not one organization is immune to (Kotter, 1996). By establishing a vision of the company, a sense of purpose and direction is created, working towards change within the forces (Huyer, 2014). When people participate in a vision, they work towards a common goal and identify what needs to be changed in order to reach that vision. In this paper, a presentation of Banner Health will be discussed, along with its mission and stakeholders, driving forces, viability, as well as an analysis of forces, a response to change, a vision for change, and an evaluation of change.
The following paper will use a set of 10 critical thinking steps recommended by Browne & Keeley to objectively analyze the memorandum sent by Salvador Monella who is the Senior Vice President of Human Resources to the Board of Directors at Penn-Mart. Mr. Monella has conducted a review of Penn-Mart’s healthcare strategy involving a number of issues including cost to the company and employee involvement, to name a few. The purpose of the review, findings, discussion and recommendations will all be analyzed using critical thinking skills in an objective manner.
Johanna Bellon, MS, CFA is a PhD student working at the University of Pittsburgh Health Policy Institute with Everette James. Prior to beginning the PhD program, Johanna worked as a financial consultant in the Healthcare Industry Group at Alvarez and Marsal. She consulted on a variety of projects, involving qualitative and quantitative analysis to achieve acquisitions, restructurings, and strategic realignments within large health systems. From this work she developed an interest in how healthcare organizations innovate and effectively achieve sustainable changes within a challenging and turbulent environment. She is currently working on four research projects within the National Center on Interprofessional Practice and Education that explore
This is consistent with Winan and Kasubski (2011) vision of the global shifting towards consumerism and Cohen, Grote, Pietrazek, and Laflamme (2010) end of managed care era. Nevertheless, since patients are not familiar with the process yet, accepting the change will be slow and benefits might not be directly seen at the soon future (Cohen, Grote, Pietrazek, & Laflamme, 2010), In this regards, Thompson and Culter (2010) recommend integrating health initiatives into business strategy, offer attractive incentives, introduce group decision-making models, facilitate new technology usage, and development of new strategies that consider short and long term goals.
Today’s customers are more aware and empowered, and have more bargaining power due to the exponential increase in competition – direct, indirect or substitute. In retailing, they want hassle-free shopping, have less time at their disposal to locate the shop and the merchandise and are reluctant to keep waiting. The modern format retail stores are doing their best to anticipate the customer’s demands and are going all out to redesign their store interiors, offer more choices in varieties and assortments, and are giving as many services as feasible.
To successfully achieve her goal of a more profitable company Helen must rely on the support of the workforce. As resistance to change is common human behavior the
Traditionally, Service quality can be portrayed as the result from client comparison between their assumptions about the service they will use and their insight about the service company. That implies that if the insight recognitions would be higher than the desired the service will be considered as fabulous, if the desires rise to the insight observations the service is viewed as great and if the desires are not met the service will be viewed as awful. For a service to be considered as good the organisation is required for making customers satisfied and service quality should be associated with customer perceptions and expectations. (Carlsson, 2010)
The HR development has to ensure every organization has the skills of development, knowleage and experience in order to keep the long-term and short-term ambitions of learning and developing by themselves.
In response to reorganization, Walgreens the brand has adapted to undercurrents by increasing staffing, staffing patterns and relevance of staff members to their communities. For instance, in high density, urban areas Walgreens have made provisions for more culturally diverse staffing patterns, to accommodate the requirements of their customers. With the ever changing influx of cultural diversity, there was never such need for language; bridging the gap the organization allotted for multi- lingual staffing patterns to ensure a wider variety of customer would benefit from services. Additional adaptations to organizational structure allowed for structural changes to free up the leaders’ time and better support them. Second, we had to change decision rights so that the right approvals were happening in the right places. Next came incentives; we had to change the way that we motivated and rewarded people, to emphasize employee engagement and customer satisfaction (Wagner & Orvis, 2010).