Module 1 introduction


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  • The Reservation Nightmare H. James Harrington, a noted quality consultant, related the following story in Quality Digest magazine: I called to make a flight reservation just an hour ago. The telephone rang five minutes before a recorded voice answered. ‘’Thank you for calling ABC Travel services,’’ it said. ‘’To ensure the highest level of customer service, this call may be recorded for future analysis.’’ Next I was asked to select from one of the following choices: ‘’ If the trip is related to company business, press 1.Personal business, press 2. Group travel, press 3.” I pressed 1. I was then asked to select from the following choices: “If this is a trip within the United States, press 1.International, press 2.Scheduled training, press 3. Related to conference, press 4.” Because I was going to Canada I pressed 2. Now two minutes into my telephone call, I was instructed to be sure that I had my customer identification card available. A few seconds passed and a very sweet voice came on, saying, “All international operators are busy, but please hold because you are a very important customer.’’ The voice was then replaced by music. About two minutes later, another recorded message said, “Our operators are still busy, but please hold and the first available operator will take care of you.’’ more music. Then yet another message: ‘’ Our operators are still busy, but please hold. Your business is important to us.’’ more bad music. Finally the sweet voice returned, stating, ‘’to speed up your service, enter your 19-digit costumer service number.’’ I frantically searched for their card, hoping that I could find it before I was cut off. I was lucky; I found it and entered the number in time. The same sweet voice came back to me, saying, ‘’ to confirm your service number, enter the last four digits of your customer service number, enter the last four digits of your social security number.” I pushed the four numbers on the keypad. The voice said: ‘’ Thank you. An operator will be with you shortly. If your call is emergency, you can call 1-800-CAL-HELP, or push all of the buttons on the telephone at the same time. Otherwise, please hold, as you are a very important customer.” This time, in place of music, I heard a commercial about the service that the company provides. At last, a real person answered the telephone and asked,’’ Can I help you? ‘’ I replied, ‘’ Yes, oh yes.’’ He answered, “Please give me your 19-digit customer service number, followed by the last digit of your social security number so I can verify who you are.’’ (I thought that I gave these numbers in the first place to speed up service. Why do I have to rattle them off again? I was now convinced that he would call me Mr. 5523-3675-0714-1313-040. But, to my surprise, he said: “Yes, Mr. Harrington. Where do you want to go and when?” I explained that I wanted to go to Montreal the following Monday morning. He replied: ‘’ Ionly handle domestic reservations. Our international desk has a new number: 1-800-1WE-GOTU. I’ll transfer you.’’ A few clicks later a message came on, saying. ‘’All of our international operators are busy. Please hold and your call will be answered in the order it was received. Do not hang up or redial, as it will only delay our response to your call. Please continue to hold, as your business is important to us.”  DISCUSSION QUESTIONSSummarize the service failures associated with this experience.What might the travel agency have done to guarantee a better service experience for Mr. Harrington? How do your suggestions relate to the TQ principles?  Case 1.3A Tale of Two Restaurants Kelly’s Seafood Restaurant was founded about 15 years ago by Tim Kelley, who has run it from the start. The restaurant is very profitable because of its excellent food quality, but lately has been having problems with consistency because of numerous suppliers. The restaurant operations are divided into front-end (servers) and back-end (kitchen). The kitchen has notes to boost employee morale, employees are cross-trained in all areas, and the kitchen staff continually seeks improvements in cooking. Servers, however, have minimal wages and few perks, and turnover is a bit of a problem. Tim’s primary criterion for selecting servers is their ability to show up on time. There is little communication between and front-end and back-end operations, other than fulfilling orders. Tim makes sure that any complaints are referred to him immediately by the servers. The restaurant has no automation, as Tim believes that it would get in the way of customers’ special requests. “this is the way we’ve done it for past 15 years and how we will continue to do it,’’ was his response to a suggestion of using a computerized system to speed up orders and eliminate delays. Tim used to hold staff meetings regularly, but recently they have dropped from each week to one every five or six months. Most of the time is spent focusing on negative behavior, and Tim has often said “You can’t find good people anymore.’’ Jim’s Steakhouse is a family-owned restaurant in the same state. Jim uses only the freshest meats and ingredients from the best suppliers and gives extra large portions of food to customers, who feel they are getting their money’s worth. Jim pays his cooks high wages to attract quality employees. Servers get 70 percent of tips, bussers 20 percent, and the kitchen staff 10 percent to foster team work. Many new hires come from referrals from current employees. Jim interviews all potential employees and ask them many pointed questions relating to courtesy, responsibility, and creativity. The restaurant sponsors bowling nights, golf outings, picnics, and holiday parties for its employees. At Jim’s, birthday customer receive a free dinner, children are welcomed with balloons, candy, and crayons, and big screen TV’s caters to sports fans. Jim walks around and constantly solicits customer feedback. Jim visits many restaurants to study their operations and learn new techniques. As a result of these visit, Jim installed computers to schedule reservations and enter orders to the kitchen. DISCUSSION QUESTIONS 1. Contrast these two restaurants from the perspective of TQ. What conclusions can you make and what advice would you give to the owners?2. What type of management model (mechanistic, organismic, or cultural) do you think each organization represents? 
  • Module 1 introduction

    1. 1. Aireen Ybañez - Clores June 10, 2013 Concept and Development of Hospitality Quality Service Ch 1 Quality Services for Hospitality
    2. 2. 22 Objectives: At the end of the class, students will:  Understand important differences between products and service;  Learn the importance of meeting the hospitality guest's expectations and serving guests;  define service quality and service value in the hospitality field;  And lists components of the guest experience.  Lastly, define service quality and service value and its importance in the hospitality field
    3. 3. 33 Nearby is the front desk and guests are being checked in, and from his vantage point the Manager can hear what is being said. The front desk clerk is confirming the arrangements of the booking with the guest and the following discussion occurs: "Sir, you will be charging your accommodation to the company and paying your other expenses." "No, all expenses will be paid by the company." "I am sorry sir, but according to this we have only authorized charge of the accommodation." "Last time I stayed here I had the same problem and last week I personally rang to sort this out. All expenses are to be charged." Visualize the lobby of a hotel that is renowned for its quality service. The General Manager is discretely observing the activity in the foyer.
    4. 4. The clerk goes to get authorization on the account and the now disgruntled guest turns to his companion and says in exasperation: ". . . you see it's exactly as I said it would happen. I stay here every month and yet every time I have this same problem." The General Manager considers the exchange with concern. That guest had not received the quality service the hotel was aiming to provide and if the guest continually had this experience it would simply be a matter of time before he decided to try one of the competitors. Not only could that one guest's custom be lost, but he could be the manager of a company who frequently stay at the hotel and hold functions there. The difficulty for the Hotel Manager is to determine how to react to this situation. Is it a problem that only this particular guest faces or is it a common problem experienced by many? Whose fault is it that the problem arises initially? What is the appropriate action to be taken?
    5. 5. Concept and Developing Quality Service in Hospitality What is hospitality The outer primary interacting element is that of the social relationship fostered by warm, friendly, welcoming, courteous, open, gen erous behavior of the host creating the hospitable, social, environment.
    6. 6. How do you define Service?Product? Service can be defined as “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).” In this context, a physical product is simply the medium used to facilitate the other services and a service rather than product orientation becomes the focus.
    7. 7. Concept and Developing Quality Service in Hospitality • This promote positive feeling of security & comfort, created by physical structure, design, décor and location of the facility. The provision of accommodation e.g. facility to sleep, relax, together with supply of food & beverage service and entertainment
    8. 8. The Key Elements of Hospitality There are two key Elements in Hospitality. Guest. Product and service.
    9. 9. The Key Elements of Hospitality The First key Element- Guest The hospitality to be delivered to guest under service provider. These stresses the central role of the guest in Hospitality operation and without guest hospitality can not be delivered.
    10. 10. The Key Elements of Hospitality The Second Key Element- Product & Service Hospitality consist of complex blend of both product- food, drink, entertainment & accommodation-and- Service along with the atmosphere that surround them.
    11. 11. 1111 Question:  How do you define guest?  What do guest expects from the hotel service staff?  Why do we need to serve them?  How can I meet guest expectations?
    12. 12. GUEST? CUSTOMER?
    13. 13. 13 Guestology: What is it? It is a term originated by Bruce Laval of the Walt Disney Company. It means in essence treat customers like guests and manage the organization from the guests point of view. Their demographic characteristics and their wants, needs and expectations regarding the hospitality guests experience are determined. In addition, their actual behavior within the hospitality organizations are carefully observed. The organization's strategy, staff and systems are aligned to meet or exceed the customer’s expectations regarding the aspects of the guests experience: service product, service setting or environment & service delivery. It forces organization to look systematically at the guest experience from the customer’s or guests' point of view.
    14. 14. SERVICE PERSON: Job requires them to provide service for the guests since they interact directly with guests. Have to be well-trained and well- skilled for them to provide the guests excellent service. Responsible to ensure that each moment of truth has been prepared for – as well as humanly possible to yield a satisfying, even outstanding, outcome for the guest.
    15. 15. SERVICE PERSON: SERVICE ENCOUNTER • Refers to moment of truth, is a point in “service delivery where customer interact with service employees” or self-service equipment and the outcome may affect perceptions of service quality Fig. 1 Cascade in service encounter in a hotel visit
    16. 16. SERVICE ENCOUNTER: TYPES Remote encounters Phone encounters Face to face encounters
    17. 17. Product? Service What is the difference?
    18. 18. How does service differ from manufacturing? From a manufacturing standpoint money is the most important capital, a means of expansion and growth. From a service standpoint, people are the most important capital. They represent not only a company’s major investment, but also its chief asset. People are the biggest competitive edge that a service company has.
    19. 19. GOODS AND PRODUCTION – CENTERED SERVICE OPERATIONS CUSTOMER – CENTERED SERVICE OPERATIONS Customer involved in very few production Production and delivery processes are separate Production is independent of consumption Product design is centered on the customer, and process design is centered on the employee Production results show less variability More amenable to standards, measurements, inspection, and control Employee-customer relationships are generally not complex Technically more complex Technical skills dominate operations Training is heavily physical Most producers do not deal directly with the customer Economies of scale are generally readily attainable Customer involved in many production Production and deliver processes overlap to varying degrees and might even be identical Production is frequently simultaneous with consumption Both product design and process design are centered on the customer Production results show more variability Less amenable to standards, measurements, inspection and control Employee-customer relationship are generally very complex Technically less complex Interpersonal skills dominate operation Training is heavily psychological Most producers deal directly with customer Economies of scale are less readily attainable. The difference of production- centered service operation and customer-centered service operation:
    20. 20. The Hospitality Operation Customer research The service concept Business Goals Service specificatio n –the Promise Service Planning Procedures ResourcesTraining & Support Service Delivery Service performance assessment Corrective Action Continual Improvement
    21. 21. 21 MEETING CUSTOMER EXPECTATIONS  Giving people a little more than they expect  The secret is to just exceed what your customer expects.
    22. 22. 22 The Guest Experience:  Guest experience is the sum total of the experience that the guest has with the service provider on a given set of occasions.  Service delivery system consists of an inanimate technology part (including organization and information systems and techniques) and the people part – most importantly, the front-line server who delivers, presents or produces the service to the guest.
    23. 23. Components of the Guest Experience:  The service product  sometimes called the service package or service/product mix, is why the customer, client, or guest comes to the organization in the first place. The basic products can be tangible, like hotel room, or relatively intangible, like a rock concert.  The service setting  is which the experience takes place that describe the physical aspects of the setting that contribute to the guests' over-all physical feeling of experience.  The service delivery system  including human components and the physical product process plus organizational and information systems and techniques that help deliver the service to the customer.
    24. 24. Nature of Services:  Services are partly or wholly intangible.  Impossible to asses the products' quality or value accurately or objectively, to inventory or to repair.  Services are consumed at the moment or during the period of production or delivery.  Even the guest purchase a new cellphone, a so veiner item, or a new personal computer, or the full stomach, or even if the luncheon was prepared an hour before the customer ate it, the service as a whole and from the customer’s perspective was consumed as delivered.  Services usually require interaction between the service provider and the customer, client or guest.  Refers to face to face interaction with guest and the service provider. These interactions can be over the telephone, or by e-mail, or fax.
    25. 25. QUALITY, VALUE AND COST: DEFINED  Quality is a state in which value entitlement is realized for the customer and provider in every aspect of the business relationship.  Business quality is highest when the costs are at the absolute lowest for both the producer & consumer and is most readily attained when the entirety of the organization’s human resource is engaged.
    26. 26. QUALITY, VALUE AND COST: DEFINED Value of the guest is equal to the quality of the experience by the cost of all kinds of guest by obtaiing the experience.
    27. 27. QUALITY, VALUE AND COST: DEFINED  Cost to guest or so-called opportunity cost.  When service providers neglect customers concerns, they will be tempted to make their exit. The cost of losing the customer are as follows:  Lose of current dollars that the business relationship created.  Lose of jobs that our client or clients provide.  Loss of reputation. Word travels fast in our information-based society.  Lost of future business.
    28. 28. MEM 650 Quality Control TQM’s Customer Approach “the customer defines quality.” “the customer is always right.” “the customer always comes first.” “the customer is king.” “quality begins and ends with the customer”
    29. 29. Broad Dimensions of Service Quality  Reliability – perform promised service dependably and accurately  Responsiveness - willingness/readiness to provide prompt service  Competence - possess knowledge and skill to perform the service  Access - approachability and ease of contact of service personnel  Courtesy - politeness, consideration, and friendliness of service personnel cont…
    30. 30. Broad Dimensions of Service Quality – cont.  Communication - keeping customers informed; listening to customers  Credibility - trustworthy, believable, honest  Security - freedom from danger, risk, or doubt  Understanding/knowing customer - knowing customer’s needs  Tangibles - physical evidence of service  Parasuraman, A. Zeithaml, V., and Berry, L. (1985).
    31. 31. The most important dimensions: service quality  Time  Timeliness  Completeness  Consistency  Accessibility  Accuracy  responsiveness
    32. 32. Chapter Exercise Case Exercise 1: Eastern States Air Environment  Case # 2 Reservation Nightmare Case # 3 A tale of two restaurants