7 Quality Organizations and Service Copyright © 2016, 2013, 2011 Pearson Education, Inc PERFORMANCE PROFITS CUSTOMERS Copyright © 2016, 2013, 2011 Pearson Education, Inc After studying these topics, you will benefit by: • Knowing how organizational structures and functions influence quality and customer satisfaction • Naming the key elements and purpose of a company strategy • Illustrating and interpreting an organizational chart • Defining quality and its importance in business Copyright © 2016, 2013, 2011 Pearson Education, Inc After studying these topics, you will benefit by: • Researching methods of increasing one’s creativity and innovation • Explaining how customer service affects performance and profits • Describing how best to handle a difficult customer Copyright © 2016, 2013, 2011 Pearson Education, Inc PRODUCTIVITY IN A QUALITY-FOCUSED WORKPLACE • 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: – Ethics – Attitude – Goals Copyright © 2016, 2013, 2011 Pearson Education, Inc PRODUCTIVITY IN THE WORKPLACE • 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) Copyright © 2016, 2013, 2011 Pearson Education, Inc PRODUCTIVITY IN THE WORKPLACE Company Strategy • Strategy: outlines major goals and objectives and serves as a company road map • Strategic plan: a formal document that identifies how the company will secure, organize, use, and monitor its resources • Company resources – Human (employees) – Fiscal (financial) – Capital (long-term investments) Copyright © 2016, 2013, 2011 Pearson Education, Inc PRODUCTIVITY IN THE WORKPLACE Company Strategy • Goal: a target Describes what needs to be achieved • Objectives: short-term goals (specific activities) that support a goal; objectives have timelines and are measurable Copyright © 2016, 2013, 2011 Pearson Education, Inc TOPIC SITUATION Juan Joins a Committee What additional advantages will Juan gain if he joins the committee? How can Juan prepare for this experience? Copyright © 2016, 2013, 2011 Pearson Education, Inc LINES OF AUTHORITY President • 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 Copyright © 2016, 2013, 2011 Pearson Education, Inc 10 QUALITY • 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 Copyright © 2016, 2013, 2011 Pearson Education, Inc 28 CREATIVITY AND INNOVATION • 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 Copyright © 2016, 2013, 2011 Pearson Education, Inc 29 TALK IT OUT Discuss the difference between a service and customer service Copyright © 2016, 2013, 2011 Pearson Education, Inc 30 EXCELLENT CUSTOMER SERVICE DEFINED • 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 whom the company serves outside – Customers, vendors, and investors Copyright © 2016, 2013, 2011 Pearson Education, Inc 31 EXCELLENT CUSTOMER SERVICE DEFINED • Customer Service: the treatment an employee provides a customer – Respect and kindness – Competent: an employee who knows the product his or her company offers – Dependable: an employee who is reliable and takes responsibility to assist a customer – Responsive: an employee who provides a customer personal attention Copyright © 2016, 2013, 2011 Pearson Education, Inc 32 EXCELLENT CUSTOMER SERVICE Impressions • 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 Copyright © 2016, 2013, 2011 Pearson Education, Inc 33 TALK IT OUT How does personal appearance influence a customer’s trust and perception of you? Copyright © 2016, 2013, 2011 Pearson Education, Inc 34 THE IMPACT OF CUSTOMER SERVICE • 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 Copyright © 2016, 2013, 2011 Pearson Education, Inc 35 TALK IT OUT How should you handle a situation when you observe a verbal conflict between two employees that is taking place in front of a customer? Copyright © 2016, 2013, 2011 Pearson Education, Inc 36 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 all you can to help the customer solve the problem • Have patience and sympathize with the customer Copyright © 2016, 2013, 2011 Pearson Education, Inc 37 THINK ABOUT IT How you normally respond to conflict? Does your response hinder or help you provide appropriate service to a difficult customer? Copyright © 2016, 2013, 2011 Pearson Education, Inc 38 TOPIC SITUATION Kiana and Customer Service What specific actions did the pizza shop take to display excellent customer service to Kiana? Copyright © 2016, 2013, 2011 Pearson Education, Inc 39 THE DIFFICULT CUSTOMER Tips for Handling the Customer • Stay calm, let the customer talk, and listen for facts—let the customer vent for a few minutes, not interrupt or say “please calm down,” 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 Copyright © 2016, 2013, 2011 Pearson Education, Inc 40 THE DIFFICULT CUSTOMER Tips for Handling the Customer (cont.) • 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 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 Copyright © 2016, 2013, 2011 Pearson Education, Inc 41 TALK IT OUT If a customer is angry, with a raised voice, how should you respond to that customer? Copyright © 2016, 2013, 2011 Pearson Education, Inc 42 ...PERFORMANCE PROFITS CUSTOMERS Copyright © 2016, 2013, 2011 Pearson Education, Inc After studying these topics, you will benefit by: • Knowing how organizational... studying these topics, you will benefit by: • Researching methods of increasing one’s creativity and innovation • Explaining how customer service affects performance and profits • Describing how... Copyright © 2016, 2013, 2011 Pearson Education, Inc PRODUCTIVITY IN A QUALITY-FOCUSED WORKPLACE • Productivity: to perform a function that adds value to the company • Whatever you produce (output) should