TOPIC 4

SERVICE QUALITY IN THE PUBLIC SECTOR

Service

Any primary or complementary activity that does not directly produce a physical product that is, the non-goods part of the transaction between buyer (customer) and seller (provider) (Evans and Lindsay, 2008). Since service is part and parcel of the organisational activities --- important to incorporate the concept of quality with services provided.
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Characteristic of Services

Typically intangible - Little / no tangible evidence to show once service has been performed - E.g. consultation with a doctor, investment advice, legal advice, etc

The production and consumption of many services are simultaneously - Service may not be separable from seller, and customer may be involved in service performance - Thus, service process becomes vital to service quality
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 Heterogeneity - Various services --- due to labour inputs and non-standardisation of delivery - Thus, the usage of conventional quality standards is difficult Unable to store - Many services cannot be stored to meet fluctuations in demand (e.g. hotel rooms, a doctors time, purchase of shares) - The organisations need to develop system to manage supply and demand

Key Service Dimensions

Customer contact and interaction

Labor intensity
Customization
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Service Quality

Basically --- meeting customer needs and requirements, and with how well the service level delivered matches customers expectations. Must translate expectations into performance standards and specifications.

Becomes a consumer judgment and results --comparing expectations of service with their perceptions of actual service delivered.
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Characteristics of Quality Service

1.

2.
3. 4. 5. 6.

Timeliness Avoidance of backlog of work Responsiveness to customers needs Readiness for use Reliability Any action taken should always be fair & just

Benefits of customer satisfaction and service quality

Encourage repeat patronage & loyalty Enhance/promotes positive WOM Customer satisfaction & service quality Lowers cost of attracting new customers Insulates customers from competition Can create sustainable advantage Reduces failure costs

Key Idea
The American Management Association estimates that the average company loses as many as 35 percent of its customers each year, and that about two-thirds of these are lost because of poor customer service.

Dimension of Service Quality

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According to Parasuraman et al. (1988)

Reliability ability to provide what was promised Assurance knowledge and courtesy of employees and ability to convey trust Tangibles physical facilities and appearance of personnel Empathy degree of caring and individual attention Responsiveness willingness to help customers and provide prompt service
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Identifying Gaps in Service Quality GAPS Model

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Development of Gaps Model

Developed by Zeithaml, Parasuraman and Berry (1990) Conceptual model of service quality (gaps) that identified gaps in service quality and suggested measures to close them

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GAPS Model

Gap Analysis --- formal means of identifying and correcting gaps The gaps refers to the differences between desired levels of performance and actual level of performance

Manufacturing --- difference between the desired conformance levels vs. the existing conformance level Services --- difference between the expected and the actual level of service provided

Gaps are importance --- once a gap has been identified it is a candidate for corrective action and process improvement
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GAP ANALYSIS

Definition --- Comparison of the current condition to the desired state It has 5 gaps: - GAP 1 Not knowing what customers expect - GAP 2 Not knowing the right service designs and standards - GAP 3 Not delivering to service standards - GAP 4 Not matching performance to promises - GAP 5 Customer gap --- Difference between expectations and perceptions!

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Quality in Service vs. Quality in Manufacturing

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Customer needs and performance standards are more difficult to identify and measure --each customer is different and define him/herself individually. Services requires customization. a higher degree of

Service output is intangible; manufacturing --tangible, visible products.

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Services --- produced and consumed simultaneously; manufactured goods --produce according to consumption. Services --- customers are often involved in actual process; manufacturing --- performed away from the customer. Services --- labor-intensive; manufacturing --capital intensive

Services --transactions

handle

large

numbers

of

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These differences make it difficult for many service organizations to apply total quality principles, and foster misguided perceptions that quality management cannot be effectively accomplished in services.

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Counter Services in Public Sector

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Refer to DAC no. 10/1991

Concept of counter services - Consists of 3 components: (i) Front line --- the customer (ii) The counter (iii) Back-up --- Support service
Front line
Customer

The counter
Counter Service

Back-up Support Service

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Refer to DAC no. 01/2008 (Attachment) pg. 20 21

Agencies that mostly deal with the customers are required to enhance their counter service delivery through: Preparing adequate number of counter based on the number of customers --- to avoid longer waiting time. Set up special and immediate counters --- for elderly, disabled, pregnant mothers and those with small children, and immediate cases.
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Set up multi-service counters. Centralised all counter services in one place --- to assist the customers. Establishing number system and information on waiting hours. Usage of announcement system --- to publicise necessary information Showing the queue number at appropriate places such as canteen, waiting lounge.
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Open up the counters during lunch time and ensuring that all counters are available during peak hours. Lengthen the operational hours (after working hours / open up the counters during weekends).

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Client Charter

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Refer to DAC no. 01/2008 (Attachment) pg. 10 15

Client Charter --- A written organisational commitment in delivering its services through open, comprehensible and transparent approach.
Scope --- Focus on organisational core services. Service quality standards depend on capacity and capability of the organisation, as well as customers and stakeholders needs. Also as a change driver --- to be responsive, customer centric, outcome, integrity, ethicality and customer-friendly.
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Characteristics --- emphasize on:

Clarity --- clear, understandable, short Reliability --- according to own capacity and capability; treated as a promise Practicality --- practical and inline with capacity and capability Specific --- accurate, measurable and understandable Able to be upgraded --- need to be improved from time to time.
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Implementation of Client Charter --- 5 steps:

Formulation --- identifying customers, core services in detail; setting the standard needed; preparing client charter Promotion --- publicising via mass media; brochures and pamphlets; stick in the department Service recovery --- as mechanism of effectiveness and efficiency; via recovery plans Supervision --- ensuring that the promise given is being fulfilled Evaluation and improvisation --- need to revised to ensure its relevancy and inline with customers expectations

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Q&A