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Assignment 3 - Presentation
- 1. CUSTOMER SERVICE IMPROVEMENT NATALIA POPLAWSKA ENG315: PROFESSIONAL COMMUNICATIONS DR. LAUREN PHILIP SEPTEMBER 3, 2015
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- 3. WHAT IS THEPROBLEM? Guests did not experience an excellent service Complaints to the management Negative feedback Lack of staff availability Lack of empathy Inability to solve issues Company is losing profits Lack of returning guests Bad reputation Customers’ loss Profit loss
- 4. WHAT ARE THEPOSSIBLE SOLUTIONS? Training front desk clerks Providing tips and guidelines Training methods: Inspiring speech Simulations Cross-functional training Replacing front desk clerks Hiring trained and experienced employees: Candidates looking for such position Employees from other hotels Employees from different departments
- 5. WHAT ARE THECRITERIA? Knowledge – how much does each of the possible groups know about the quality service and the organization? Experience – how much experience does each of the possible groups have in the field? Customer satisfaction – what would the guests want the most out of their hospitality experience? Profit generation – how will the customer satisfaction reflect in revenues? Cost – how much will the application of the changes cost?
- 6. WHAT ARE THERESEARCH METHODS? Studying other organizations Reviewing hospitality literature Surveying the guests Constructing a cost-benefit analysis Performing interviews and observations Reviewing resumes and contacting supervisors Estimating the amount of training
- 7. WHAT SOLUTION ISMORE EFFICIENT? Training front desk clerks Know company’s structure and mission Demonstrated good work ethics Established relationships with customers Ensure guests’ loyalty and good reputation Costs are investments Replacing front desk clerks Add intellectual capital, new ideas and skills Have experience in the field More sensitivity and a fresh eye on the problem Improve productivity and motivation High costs of turnover
- 8. Figure 1: AlternativesAnalyzed by Criteria Graphic depiction of the finding and analysis Criterion Training Option Replacing Option Knowledge High High Experience High Moderate Customer satisfaction High Low Profit generation High Low Costs Low (Investment) High TOTAL Feasibility High Moderate
- 9. WHAT WOULD BENEFIT THECOMPANY THE MOST? Training is recommended: Specific and company-oriented skills and abilities Satisfying performance Loyalty and commitment Relationships with customers Part of the hotel standards Profit generators Lower cost
- 10. The Employee Promise,Ritz-Carlton
- 11. REFERENCES Ahammad, S.(2013). Importance of training in hotel industry: A case study of Hilton Hotel. Sodertons University, School of Business, Tourism Studies. 1-36. Ford, R. C., Sturnman, M. C., & Heaton, C. P. (2012). Managing quality service in hospitality. Clifton Park, NY: Cengage Learning. Gioia, J. (2015). “Welcome to our Hotel” front desk tactics that engage guests and employees and reduce complaints. Hotel Business Review. Retrieved from: http://hotelexecutive.com/business_review/2736/welcome-to-our-hotel-front- desk-tactics-that-engage-guests-and-employees-and-reduce-complaints Hinkin, T. R., & Tracey, J. B. (2000). The cost of turnover: Putting a price on the learning curve. The Cornell Hotel and Restaurant Administration Quarterly, 41(3), 14-21. Kennedy, D. (2009). Front-desk hospitality training can generate future business. Hotel Management Magazine. Retrieved from: http://www.hotelmanagement.net/front-desk-hospitality-training-can-generate-future-business Society for Human Resource Management (SHRM). (2006). Training cost per employee. Retrieved from: http://www.shrm.org/research/articles/articles/pages/metricofthemonthtrainingcostperemployee.aspx
Editor's Notes
- #3 "Ritz Carlton Hotel has a policy that any employee can spend up to $2000 a day (without requiring any authorization from management) to solve the need or concern of any of their customers. On his way to Hawaii to deliver an important presentation, a businessman realized he had accidentally left his portable computer at a Ritz Carlton in Atlanta. His presentation was stored on the computer. He placed a frantic call to the hotel and was routed to housekeeping. They had found his computer. Please send by Federal Express, he requested. I absolutely need it tomorrow morning for my presentation. Imagine his surprise when Mary from housekeeping showed up in Hawaii early the next morning to hand deliver his computer. Mary was quoted as saying This was too important to trust FedX with, so I decided to deliver it myself!" Ritz Carlton Company Policy Story from http://www.helpscout.net/customer-service-quotes/inspirational/ Picture from http://brandchannel.com/2010/06/21/putting-on-the-ritz/
- #4 Multiple guests who stayed at the hotel reported that they did not have an excellent experience. Some of them complained to the manager about poor customer service received from the front desk clerks. In addition, an on-line survey and feedback forms have confirmed that the guests’ needs have not been fully satisfied in several cases. The common complaints were: the lack of staff availability to assist the guest, a lack of empathy with regard to their frustrations, and inability to solve issues. This problem clearly needs to be fixed or the hotel will lose its customers as unhappy guests are less likely to return. Moreover, they will not recommend the hotel to their friends and relatives. This could lead the hotel to receive a bad reputation in the field. Consequently, the company will acquire profit losses.
- #5 Alternative A – training the front desk clerks. Current employees could receive tips and guidelines on how to deal with guests in order to fully accommodate their needs. Several training methods could be used to achieve the goal of customer service improvement. First, a general manager and an experienced hospitality specialist could give an inspiring speech about the importance of the customer service and guests satisfaction. This could outline different strategies of dealing with guests. Second, simulations could be designed to help employees learn creative problem solving in a safe environment. This scenario would allow the front desk clerks to apply newly learned strategies and practice solving potential problems under the careful supervision of the manager. Lastly, the front desk clerks could receive a cross-functional training to gain understanding of other tasks in the hotel business. That would assure more personnel are ready and prepared when the respective departments are unavailable. For example, the front desk clerks could learn where the extra bedding accessories are located for the time when a guest needs a change of sheets late at night and the housekeeping employees are gone. Alternative B – replacing the front door clerks. Since it is very hard to change the organizational culture and employees’ habits, hiring a new team would be another option to solve this problem. The hotel could employ already trained and experienced front desk clerks. Such candidates could be selected from people who are currently looking for a position like that. Moreover, the human resources department could look at front desk clerks from other hotels and offer them a better salary, benefits or career advancement opportunity if they switch institutions. In addition, employees from different departments could be offered a position as a front desk clerk. They could be selected from employees who deal with guests and know their needs so they can accommodate them more efficiently. New employees would come in with a fresh mind setting and they would also bring new ideas. That could improve the customer service quality and enhance the overall guest experience. In addition, the new employees with experience in this field would demonstrate the proper way of satisfying the customers. They would see most of the situations as easy and familiar and they would help the guests in a short time.
- #6 Knowledge – how much does each of the possible groups know about the quality service and the organization? Interviews and observations will be conducted to determine the outcome in this category. Experience – how much experience does each of the possible groups have in the field? The resumes will be reviewed and former supervisors will be contacted to provide background information. Customer satisfaction – what would the guests want the most out of their hospitality experience? The surveys and suggestions from guests would be reviewed. Then the quality control manager would decide which option would satisfy the most of the guests’ needs. Profit generation – how will the customer satisfaction reflect in revenues? The sales forecasting would determine how each change would influence the reservation booking. Cost – how much will the application of the changes cost? The general manger and the finance department would have to compare the costs of each option with the available budget. Additionally, a cost-benefit analysis would have to be constructed to see when it is worth it to make the change.
- #7 Research methods could include studying other organizations that implemented similar changes. An example of that would be visiting their websites. In addition, scholarly hospitality literature could be reviewed to see advantages and disadvantages of each option. Moreover, guests should be asked in surveys what would they prefer. Furthermore, a cost-benefit analysis should be constructed. An estimate could be calculated to predict the costs of implementing each option. A sales forecast could be constructed to predict future sales after implementing each option. Interviews and observations could be performed in order to determine the knowledge of potential front desk clerks. Additionally, resumes could be reviewed and supervisors could be contacted in order to determine work experience. Lastly, the amount of training in each case could be estimated.
- #8 Evaluation of Alternatives Knowledge Alternative A: Training the front desk clerks – current employees know the company’s structure, its mission and vision. The front desk clerks are already familiar with the political structure, corporate goals, and the real way things get done. Moreover, they have already received an initial training on the quality service, guest satisfaction and the overall guestology (the study of guests). Alternative B: Replacing the front desk clerks – new employees add intellectual capital, they bring new ideas, skills, and perspectives. This adds value to the company. Some companies have come to rely on hiring from the benchmark organizations as a way to obtain the talent they need to be competitive. In other words, they have new ideas of how other companies are doing the same things, and in particular how others handle certain problems in a better way. (Ford, Sturman & Heaton, 2012, p. 166). Experience Alternative A: Training the front desk clerks – current employees have shown the ability to satisfy guests, they are familiar with the hotel lay out and policies. Additionally, they demonstrated good work ethics and the commitment to guest service to the management over the years of cooperation. Furthermore, the front desk clerks have developed relationships and connections with some regular guests of the hotel hence they are now familiar with their specific needs and are able to accommodate them. Alternative B: Replacing the front desk clerks – candidates have work experience at similar hotels. New front desk clerks have worked previously in their positions and they demonstrated specific skills during their careers. They can thus apply their previous work experience in order to fully satisfy the guests of the hotel. Customer satisfaction Alternative A: Training the front desk clerks – current employees have built relationships with the guests. Research has shown that if guests have a good experience at the front desk, they will be much more forgiving later when a room service tray is delivered late, when the air conditioning breaks, or when a housekeeping request is overlooked. (Kennedy, 2009). Therefore, established positive relationships with guests improve customer satisfaction. Alternative B: Replacing the front desk clerks – new employees will be sensitive to guests’ suggestions for improvement. They will have more energy and a fresh eye on the existing problem that might have been overlooked and thus ignored by the current employees. The new ways of solving problems will positively surprise the guests and thus improve the customer satisfaction. Profit generation Alternative A: Training the front desk clerks – current employees ensure the loyal guests to come back and to spread a good reputation and thus increase profits. The research done by the Hotel Management Magazine illustrates how front-desk hospitality training can generate future business. It says that an unhappy guest will tell 9-10 people about their bad experience and that due to social media the word of mouth spreads fast and wide. (Kennedy, 2009). Therefore, maintaining a good reputation in the business world is crucial to profit generation. Additionally, a case study on the Hilton Hotel illustrates that training improves sales, revenues and overall profitability. (Ahammad, 2013, p.6). This study clearly shows how training is financially beneficial. Alternative B: Replacing the front desk clerks – new employees improve productivity and thus generate profits. They will become a healthy internal competition that will lead to a more efficient output from all of the employees in the organization. Moreover, the new front desk clerks will have more motivation to impress the management and the guests since they will feel the need to prove themselves as the new hires. Costs Alternative A: Training the front desk clerks – training costs are a form of investment. They will pay back as future revenues from sales to satisfied guests. Costs per employee vary and can be calculated by dividing the total training costs by the headcount. These costs include development costs, direct implementation costs, indirect implementation costs, compensation for participants, loss-productivity costs. (SHRM, 2006). Alternative B: Replacing the front desk clerks – turnover costs are high. According to Cornell University School of Hotel Administration research based on front office employees in New York City these costs equal $11,609. They include separation costs, recruiting costs, selection costs, hiring costs, and loss-productivity costs. (Hinkin & Tracey, 200).
- #10 Findings and Analysis While both alternatives A and B illustrate deep knowledge and experience in the field, training current front desk clerks reflects the specific and company-oriented skills and abilities. Current employees already know the organization’s procedures and policies, they are familiar with the hotel and they have worked with other departments as well as with regular guests. They have also shown a satisfying performance over the years of working with the hotel. They demonstrated loyalty to the organization and commitment to guest service. Moreover, current employees are more likely to increase customer satisfaction after their training than new employees. The first group has already built connections and relationships with regular guests. They are also a part of the hotel standards expected from new guests visiting the hotel. Consequently, current employees after their training will generate more profits for the hotel. Since they will be instructed on how to address guests’ problems they will contribute to an increased guests’ satisfaction. That will ensure the customers’ return. In addition, it will become an advertisement among guests’ friends and family. Good reputation will also spread across the media and bring new customers. Lastly, the costs of training are lower comparing to the costs of replacing the employees. A research on companies that have implemented the above changes has shown that training is an investment for the future of a hotel. Well-trained front desk clerks will satisfy more guests, attract more customers for the future and consequently they will increase hotel’s profits. For example, Disney Company teaches that when employees have the knowledge and skills they need, they are more able to “put smile in their voices.” As a result, more enthusiasm and confidence leads to a better customer satisfaction. Another example is Marriott Hotel that says: “invest in your people and they will take very good care of your guests”. (Gioia, 2015). Furthermore, the studies have shown high turnover costs associated with replacing employees of hotels. In conclusion, a cost-benefit analysis have illustrated that there is more benefits at lower costs from training the current front desk clerks. At the same time, the high costs of turnover out weighted the benefits in case of replacing the front desk clerks. Recommendation It is recommended that Mrs. Krakowska trains her current front desk clerks at the Home Away from Home Hotel. She should begin by giving an inspiring speech about the importance of customer service; this should be followed by simulations to apply theory into practice, and cross-functional training to give the employees a better understanding of the hotel’s tasks.
- #11 "Our Ladies and Gentlemen are the most important resource," says the beige card, which Mr. Tan still carries in his wallet. "By applying the principles of trust, honesty, respect, integrity and commitment, we nurture and maximize talent to the benefit of each individual and the company.“ Story from http://www.wsj.com/articles/SB99971951680170137 Picture from https://www.linkedin.com/pulse/20140726164857-13996180-ritz-carlton-meeting-the-unexpressed-needs-of-guests
- #12 For further reading, please see the sources listed.