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Competition, deregulation rising customer expectation and technological change has led companies to be more customer focused!
Two ways: 1. Assessing and knowing customer needs * Surveys, customer circles etc * Monitoring existing customer service quality against standard performance measures and procedures 2. Improving customer service delivery through staff * Educating and importance of the consumer * Information about the current state of business or future plans * Commitment to organization goals * Initiatives such as team building videos and house journals for staff info *Convince the staff about the logic of their actions
However, evidence that such schemes tends to be not so useful Numbers of writers have argued that exhortation and communication are weak vehicles of change
BUT:
Hill: Writers understate the difficulties in getting the staff to buy into the ideals of quality and to make such ideals and changes stick Schuler and Harris : Appraisals contribute to customer satisfaction by ensuring that employees are aware of the behaviours which contribute to quality + contribute the use of financial incentive as a part of quality enhancement strategy
Snape : Organizations should avoid attaching a price tag to customer improvement ; There may be a role in increasing financial incentives in raising awareness and highlighting key areas for improvement
Management need to use the border range of reward to and punishment policies to implement this
Established in the year 1978 by self made entrepreneur Biggest Hi Fi separates retailer in the UK with branches a warehouse and a head office employing over 100 staff Not listed on the stock exchange
Success comes from a high stock turnover combined with low overheads
Its made its name selling discounted often discontinued end of the line products in small in cheap locations
Has overcome the unwillingness of some major companies to work with them with its financial performance in the year 1991-92 - Profit :1.8 $ Million - Turnover :18 $ Million
In the Guinness book of world record for having the highest sales per square foot of any retailer in the world also holds the record for the Highest sales per employees!
No confusion between excellent customer service and sell Help the customers buy rather than go for a hard sell
Basic Principles:
Fun for customers Invited to bring in pets to help them choose their purchase Scratch cards with free gifts
Management
styles been described as fun but caring. Influences on the management include management gurus peters and waterman , and the uk retailer marks and Spencer , the latter influence derives from the chairmans parents . Staff are known as colleagues and the organization chart in the inverted form with the customers at the top followed by sales colleagues and middle management and ending with the top management.
Fun but caring! Influences on the management: management gurus Peters and Waterman Marks & Spencer Chairmans parents Staff are known as colleagues; Organization chart in the inverted form
Paternalistic approach!
20 percent of profits directed either to profit share ( 15%) to charity ( 4%) or to a staff hardship fund ( 1%) Life insurance , and subsidized medical scheme
Maintain a sense of involvement and fun Customer service index for each member of staff, where individuals are assessed monthly on a range of indicators with results related to payment
Staffs wear individual badges in order to encourage greater accountability to the customers.
Staff who perform above and beyond the duty ( ABCD) receive gold aeroplanes as a recognition of their high achievement
Sophisticated range of personnel policies that is reflected in their induction booklet Staff turnover is low Promoting internally as a way of rewarding loyalty Pay is above average for industry + Profit share Communications and feedback from employees is vital (weekly video) Highly successful suggestion scheme and distinction of having the highest number of suggestions per staff (1500 from 70 staff in 1991)
The employees receive monetary and non monetary for their suggestions Many suggestions received are hard to quantify in terms of bottom line impact
Daniel Tulsi
Fernandes 135
Anuth