Rommae Reyes BSBA4

Jennifer Salazar MKTG. 29

Vladimir Medina Mr. Abelito Quiwa

Objectives

To know the importance of Human Resources as an investment to service businesses.

To know the strategic importance of recruitment, selection, training, motivation and retention of employees.

To understand meant by the control and involvement models of management.

To know when strategy of empowering employees appropriate, benefits and implications.

To understand the different approaches to human resources management affect customer satisfaction and retention.

Human Resources: An Asset Worth Investing In

Behind most of today’s successful service organizations stands a commitment to effective management of human resources, including the recruitment, selection, training and retention of the employees.

Role of Frontstage Personnel

A single employee may play many roles.

They may be part of the product,

part of the delivery system

adviser and teacher and even.

Emotional Labor

“This is the work done with feelings, as part of paid employment.” - Arlie Hochschild (The Managed Heart,

1983)

Job Design and Recruitment

The Goal of job design is to study the requirements of the operation, the nature of the customer needs, the capabilities

of the employees and the characteristics of operational equipment.

Recruiting the Right People for the Job

Several special characteristics may be important in recruiting and training employees. These include interpersonal skills, personal appearance and grooming, voice, knowledge of the product and the operation, selling capabilities and skills.

Employee Retention: Service Jobs as Relationships

The Concept of Exchange Applied to Employment

payhealth

insurance pension

funding

Other job benefits:

learning

companionship

meeting new people

Other job benefits:

travel

social contribution

Employee Retention and Customer

Retention

Employee Retention

is an effort by a business to maintain a working environment which supports current staff in remaining with the company.

http://www.businessdictionary.com/definition/employee-retention.html#ixzz2KD8AG2XT

Customer Retention

is an assessment of the product or service quality provided by a business that measures how loyal its customers are.

http://www.businessdictionary.com/definition/customer-retention.html#ixzz2KKGG66DQ

Cycles of Failure, Mediocrity and Success

cycle of failure

businesses with high employee turnover cycle of mediocrity

organizations which offer job security but little scope for personal initiative

cycle of success

if managed well, there is potential for a virtuous cycle in service employment

The Cycle of Failure

The Cycle of Mediocrity

The Cycle of Success

Some firms take long-term view of financial performance, seeking to prosper by investing in their people in order to create “cycle of success”.

The Cycle of Success

• With more focused recruitment, more intensive training and better wages, employees are likely to be happier in their work and to provide higher quality, customer-pleasing service.

• Regular customers also appreciates the continuity in service relationships resulting from lower turnover and so are more likely to remain loyal.

• In many countries, once-mediocre public corporations have undergone radical culture change in the wake of privatization and exposure to a more competitive environment.

How to Manage People for Service Advantage?

Staff performance is a function of both ability and motivation. How can we get able service employees who are motivated to productively deliver service excellence?

The role of Unions• For innovations in the way a firm’s employees are organized

and managed to realize their full potential, employee cooperation is often essential.

• Many managers seem to be rather antagonistic toward unions.

• Many of the world’s most successful service businesses are, in fact, highly unionized. The presence of unions in a service company is not an automatic barrier to high performance and innovation unless there is a long history of mistrust, acrimonious relationships and confrontation. However, management consultations and negotiations with union representatives are essential if employees are to accept new ideas (conditions that are equally valid in non-unionized firms, too). The challenge is to work jointly with unions, to create a climate for service.

EMPOWERMENT OF EMPLOYEES

• How important is the much advocated practice of empowering employees to use their own discretion to serve customers better?

• From a humanistic standpoint, the notion of encouraging employees to exercise initiative and discretion is an appealing one.

• Empowerment looks to frontline staff to find solutions to

service problems and to make appropriate decisions about customizing service delivery.

• It depends for its success on what is sometimes called enablement-giving service workers the training, tools and resources they need to take on these new responsibilities.

Is Empowerment Always Appropriate?

• Advocates claim that the empowerment approach is more likely to yield motivated employees and satisfied customers than the “production-line” alternative, where management designs a relatively standardized system and he expects workers to execute tasks within narrow guidelines.

• Different situations may require different solutions, declaring that “both the empowerment and production-line approaches have their advantages...and... each fits certain situations. The key is to choose the management approach that best meets the needs of both employees and customers”.

Control versus Involvement

•The production-line approach to managing people is based upon the well established “control” model of organization design and management.

•Empowerment, by contrast, is based upon the “involvement” (or “commitment”) model, which assumes that most employees can make good decisions and produce good ideas for operating the business, if they are properly socialized, trained and informed.

Control versus Involvement

In the control model, four key features are concentrated at the top of the organization, while in the involvement model these features are pushed down through the organization. The four features are:

1. Information about organizational performance (e.g., operating results and measures of competitive performance).

2. Rewards based on organizational performance (e.g., bonuses, profit sharing and stock options).

3. Knowledge that enables employees to understand and contribute to organizational performance (e.g., problem-solving skills)

4. Power to make decisions that influence work procedures and organizational direction (e.g., through quality circles and self-managing teams).

Levels of Employee Involvement

• The empowerment and production-line approaches are at opposite ends of a spectrum that reflects increasing levels of employee involvement as additional knowledge, information, power and rewards are pushed down to front line. Empowerment can take place at several levels:

1. Suggestion Involvement2. Job Involvement 3. High Involvement

Levels of Employee Involvement

• The empowerment and production-line approaches are at opposite ends of a spectrum that reflects increasing levels of employee involvement as additional knowledge, information, power and rewards are pushed down to front line. Empowerment can take place at several levels:

1. Suggestion Involvement2. Job Involvement 3. High Involvement

1. Suggestion Involvement •Employee recommendation

Levels of Employee Involvement

• The empowerment and production-line approaches are at opposite ends of a spectrum that reflects increasing levels of employee involvement as additional knowledge, information, power and rewards are pushed down to front line. Empowerment can take place at several levels:

1. Suggestion Involvement2. Job Involvement 3. High Involvement 2. Job Involvement -Jobs redesigned

-Employees retrained

-Supervisors facilitate

Levels of Employee Involvement

• The empowerment and production-line approaches are at opposite ends of a spectrum that reflects increasing levels of employee involvement as additional knowledge, information, power and rewards are pushed down to front line. Empowerment can take place at several levels:

1. Suggestion Involvement2. Job Involvement 3. High Involvement 3. High Involvement

•Information is shared

•Employees skilled in teamwork, problem solving etc.

•Participate in decisions

•Profit sharing and stock ownership

HUMAN RESOURCE MANAGEMENT IN A MULTICULTURAL CONTEXT

•The trend toward a global economy means that more and more service firms are operating across national frontiers. Other important trends are increased tourism and business travel and substantial immigration of people from different cultural backgrounds into foreign countries. The net result is pressure on service organizations to serve a more diverse array of customers. These customers have different cultural expectations and speak a variety of languages. A more diverse workforce has also to be recruited.

•Striking a balance between diversity and conformity to common standards is not a simple task, since societal norms vary across cultures.

•Part of the HR challenge as it relates to culture is to determine which performance standards are crucial and which should be treated more flexibly.

CONCLUSION

Successful service organizations are those that are committed to effective management of human resources (HR), including recruitment, selection, training and retention of employees. They recognize that service personnel play an important role in creating customer satisfaction and competitive advantage.

CONCLUSION

It is probably harder to duplicate high-performance human assets than any other corporate resource. Winning service organizations have employees who understand and support the goals of an organization, have the skills needed to succeed in performing their jobs, work well in teams, recognize the importance of customer satisfaction and have the authority and self-confidence to use their own initiative to solve the problem. In the following chapter, we examine the leadership task of integrating marketing, operations and human resources in a strategic partnership.

Thank You