Why Is Correct Management of Service Encounters So Important - Assignment Example

Service encounters involve transactions in which people provide goods and services to other people. Services of vendors, travel agents and product suppliers are all part of service encounters. Communication services such as offers, requests and greetings are all part of service encounters. In order for these services to be provided effectively, it is important for dealers to understand them. Employers, employees and customers interact through service encounters, which could have positive or negative impact on their relationship. The service may fail, compelling the customer to find remedial measures. The role of the employer in that case is to ensure that the customer is satisfied in order to maintain a good relationship with him/her. On the other hand, when the services are offered to the customers’ satisfaction, the employer earns a good name amongst them. However, when dissatisfied customers choose to retaliate, the employer is face with the task of establishing ways of providing a remedy. Lack of customer satisfaction is detrimental to the existence of the service provider (Antonio G. 1993 pp.23-27). In order to ensure that their customers are satisfied, service providers emphasize on receiving complaints from customers in order for then to be capable of gathering essential information that can assist in service provision. However, research has established that few of them make use of the information acquired from the complaints. Providing high quality services is the target for almost every service provider. However, it is usually difficult to provide efficient services without failures. In a normal situation, many people have experienced situations whereby they are dissatisfied with the services provided to them. The worst occasions arise when the failures in service encounters recur. Companies may end up suffering undesirable consequences and therefore they need to manage service encounters carefully to prevent problems from recurring. Traditionally, most of the complaints by customers to companies have been neglected and regarded as invaluable. However, due to the competitiveness of the modern market, service providers are careful in handling the complaints due to the understanding that they can be detrimental to their operations. Customer complaints not carefully responded to can lead to loss of valuable customers hence a decline in profits. In order to remain competitive in the market, managers have to ensure that these complaints are addressed and chances for their re-occurrence minimized (Armstrong, M. 2002: 71-74). In most of the industries such as the banking sector, it is usually difficult to understand the expectations of the customers. However, the management has to ensure that complaints are minimal through provision of the best quality services in the first instance. This is because the intensity of the complaint depends on the importance and the intricacy of the service provided. In the services concerning money, consumers are usually keen not to lose their money and therefore they tend to be highly selective on the service providers, whereby they choose the once whom they feel very confident in. the service industry is vulnerable to attack by external forces who may create huge losses to the company as well as the customers. Banks are the most vulnerable in the service encounters. They are faced with problems of money being stolen while on transit. The huge losses are usually felt by the sender, the bank as well as the intended receiver. It therefore becomes necessary to ensure that these services are managed properly to prevent the occurrence of such undesirable losses. Banks usually rely on the customers’ feed back to assess their efficiency concerning such services. Service recovery is usually a very costly exercise which may even end up consuming more funds than the value of the service that was offered. At times it becomes necessary to let go the undelivered service without compensation due to the costs, time and the procedures involved. It therefore becomes prudent to ensure that the service encounters are managed effectively to avoid such embarrassing situations. Even with the existence of companies that claim to offer service recovery, it is usually difficult for customers to acquire the real utility for the service. It might be recovered when it has become obsolete and therefore its usefulness becomes minimal. Unless the recovery process comes up with ways of protecting companies and organizations from any future losses, it might not be useful. In most cases, losses in service encounters are unique and different each time they occur. This makes the recovery process less useful. The feedback from customers usually depends on the significance of the service encounter. In cases where the customers need the service only once in a while, the feedback may not be useful or may even lack at all. The consequences of such a situation to the company are normally injurious to its reputation since one customer who does not give it a chance to mend up the errors may influence the decision of other customers from seeking its services. Information flow among customers who seek similar services exhibits a tendency of spreading fast amongst them, thereby damaging the reputation of a particular service provider. This necessitates careful management of service encounters in order to safeguard the reputation of a company. The ability to attract and maintain customers rests in the company’s reputation. Its loss is normally accompanied by a loss of customers who are the key to its profitability. Before engaging in service provision, the management should be aware of the information that customers should access concerning the company. Negligence in releasing information can cause undesirable misconceptions by the customers regarding the company operations. Information flow in service encounters should therefore be managed appropriately to ensure that unnecessary information does not get access to the customers. This is because it can be used to hamper efforts to attract customers (Arne L. K. 2001 pp. 56-58). The customers should be known by the service provider in order to understand their desires and requirements. This is because satisfying the needs of customers is the most important point that a company should focus. Flexibility is needed in order for the company to adjust itself to meet the needs of its clients. It is usually meant to motivate the customers in order to convince them that the services offered by the company correspond to their needs. This can be beneficial to the managers as much as it is to the customers. It can be practiced in service encounters whereby companies provide the customers with flexible services which allow processes and equipment within the firm to be changed to fit their needs. Goods are produced to meet the market demand. Services are delivered according to the customers’ desires. Companies also allow the customers to make their own choice regarding the services that they need. The time and place of delivery is usually their choice and therefore there are minimal chances of dissatisfaction. In such cases, it is usually difficult for customers to lay the blame on the company when failure occurs. Flexibility is an aspect of managing a company in order to produce the best for its customers. It minimizes the risk of losses that may arise due to externalities, such as changes in the production system. The customers may also make unexpected changes in their demands. A company that is unable to manage service encounters may incur losses under such circumstances. This is because customers will always expect their needs to be met even when they make changes that are completely different from their original demands. They also tend to make different requirements without making considerations about the time factor (Bach, S. 2005 pp. 45-47). Managers who know their customers well usually understand the possible changes that the customers can make. They are therefore capable of making the necessary changes within the desired time period in order to satisfy their customers. It is important to manage communication between the company and the customer. This is important in ensuring that any changes that may occur on the customers’ demands are known within the most appropriate time. Failure to acquire information on such changes within the required time period may cause the management to make uninformed decisions which may lead to offering undesirable services to customers. It may also lead to losses in case the communication is received when it is too late, requiring changes to be made in the type of product. In many instances, the service provider adjusts the price in order to cover the extra cost caused by the sudden changes. This makes the services to be costly, making a company to lose potential customers. It is therefore necessary to ensure that before engaging in any service encounter, the managers are equipped with the necessary information about it and have assessed the possibility of changes that may arise in the process. Being informed will help the company managers to understand the specific needs of the customers in order to set the appropriate standards that will satisfy customers’ needs. It also helps to know the value of the resources that will form the inputs (Beardwell, J. and Claydon, T. 2007 pp. 89-91). With proper management of service encounters, products are evaluated in a subjective manner, which makes it possible to organize them differently in order to fit to whoever requires the service. In this process, there is usually a contact between the company and the customer, in which case the two interact, giving the company a chance to assess the level at which there is a possibility to satisfy the customer. This becomes a significant avenue for developing the most appropriate means of satisfying similar customers. The management should hold all these encounters in high regard since they are the ones that give it experience that is significant in dealing with future encounters. It helps the managers to understand the perceptions of the customers and therefore is an avenue for initiating improvement in service delivery. Such an opportunity should be taken seriously since losing an opportunity is easier than coming across one. Many providers tend to make the wrong conclusion that improvement of the quality of service is the main point of concern regardless of the value of the service to the customer. They fail to evaluate the quality of the service from the customers’ point of view. This is a great failure because the end product is used by the customer and not the producer. The provider should focus on the time and money which form the main focus for consumers (Bratton, J. and Gold, J. 2007 pp.71-74). This is because each consumer gives up using the money for other purposes in order to buy a service from a producer. Utility will be achieved when the consumer gets the service that is worth the money given out at the appropriate time. Management of quality is usually vital in satisfying the needs of customers. Management of service encounters should start at the beginning of the production process. Many managers make the mistake of assessing the quality of the end product rather than monitoring each stage of production progressively. It may be costly to realize in the end of the production process that there was a problem in the designing stage. The customer is usually not present in such cases and will want to have the final product to be according to specifications. It therefore becomes the task of the management to correct the mistakes that could be avoided if the process could be monitored from the beginning. On the other hand it is also important to let the customers know what to expect. With this knowledge, they will be able to present their view towards what may end up in their possession. It is also possible for them to offer guidance on their desires. This is important in avoiding losses that are associated with offering services that are not in line with their needs (Charlie C. 2007 pp. 68-71). Management of service encounters ensures consistency in service provision. Some providers do not keep records of their customers’ supplies especially if they are required to supply a variety of services. Service encounters are money making ventures like any other business venture. It is therefore necessary to keep records in order to keep track of the customers who are supplied with particular services. Their complaints should also be recorded in order for the provider to be in a capacity to understand the customers’ reactions towards particular issues. Lack of proper recording may also cause a mix up of the services provided amongst different customers. This may cause unnecessary dissatisfaction amongst the customers. Recording promotes efficiency since the time for every customer is to receive the services is known. The best way to satisfy a customer is to be punctual. At certain times, the customers may tolerate a small deficiency in the quality of service provided. However, management that involves continuous monitoring is capable of identifying a small defect in the quality of service that the customer can tolerate and make the necessary corrections. Since customers mainly evaluate the quality of products from past experience, a repeat of the same mistake may cause dissatisfaction. On the other hand, improvement on a past mistake may build confidence in the customer. This is a significant way of filling the gap that may have existed in the quality of services (Edwards J. 2006 pp.96-99). All service providers endeavor to offer the best services to customers. However there are usually errors that are associated with humans as well as external factors these can hamper the provision of services. Nevertheless, their impact can be reduced through the necessary management practices. Management of service encounters is significant in the early identification of the human errors that may hamper progress. Through this management, the service provider is able to engage in service recovery, which is a significant strategy for dealing with errors. It is one way that can improve the customers’ confidence since they are assured that whatever the mistake that may occur, there will always be a solution. On the other hand, proper management of service recovery helps to prevent the situation where dissatisfied customers destroy the name of the company once they fail to recover what they have lost. A bad name can affect the acceptability of a company’s service in the market. This is usually common with the customers who have dealt with a particular company for a long time. They usually tend to expect the best from the company owing to their long term dealings. They also tend to have considerable influence over customers. Once their desires are not met, they can be the most damaging in terms of spreading unfavorable information to potential customers. Proper management can help in planning ahead on ways to deal with such issues (Feldman A. 2008 pp.16-21). Generally, it is important to note that dissatisfied customers will talk more concerning the dissatisfaction than they would talk of satisfaction. Proper management is able to instill a positive attitude within the customers in order for them to talk positively about the company and learn to be slow when things go wrong as the company tries to establish a solution. Otherwise, the rumor that dissatisfied customers may spread can be damaging. Learning from mistakes is very important for prudent managers. This enables them to prevent future occurrence of similar mistakes. An organization that learns from past mistakes usually develops in to a strong service provider in the service encounters. Classification and analysis of information is important in management so that they can provide a point of reference while developing future plans. In a company where management is keen on customer satisfaction, it is easy for management to identify the employees who usually do not pay attention to the complaints from customers. This is an intricate issue that can lead to the downfall of a company. However, with proper management of service encounters, it can be avoided. There is usually another phenomenon whereby some employees tend to shun from responsibility once a problem arises. Without proper management, it is usually difficult to identify such cases. Management of service encounters should not only be focused on customers where the managers engage in service recovery only for the purpose of satisfying the customer. They should also try to identify the source of the problem in order to determine whether the problem is as a result of negligence on the part of employees. Management of service encounters that include training and empowering employees in the best methods of service delivery is significant in a company’s productivity. They are taught on rapid response in order to always be ready to solve problems before they escalate. The policies that are set by proper management are inclusive of the customers. They are informed especially on the procedures of service recovery. The management ensures that these procedures are known by all the employees. With this understanding, employees are capable of understanding what to do when confronted with problems. In this service recovery process, the management ensures that the customer feels that he/she has been treated fairly. This is because failure to do so may fail to produce the desired satisfaction. Examination of whether the customer is satisfied is significant in assessing the specific needs of customers. The management should ensure that once the employee identifies dissatisfaction in a customer, he/she follows the service recovery to the end. The management should provide guidelines which should direct the employees on how to carry out the service recovery. This includes ensuring that the person who receives a complaint from the customer is the best suited for him/her. The management should allow customers to have control over their desires. This allows them to feel that they have the authority over their money and feelings. It promotes satisfaction amongst the customers since they make a choice of their own. It is generally understood that human beings are generally satisfied with what they have chosen for themselves. In such a case, there is a ten1dency to react less vigorously than when the managers chose what fits the customers. A choice made on behalf of the customers makes them expect failures even before the exercise begins. This pessimism may create dissatisfaction under the least errors. Allowing the customers to enjoy their independence in choosing the services that they desire are an essential factor in the success of a service encounter. This indepen1dence should be allowed in all the service encounters including those that involve medical services. It becomes less stressful for the patients whom doctors perform operations according to their desires. It even promotes optimism in the patients especially when the doctor reassures them that their choice is acceptable and that it has worked for other people with similar problems (Geoffrey A. 2004 pp.43-45). Conclusion Proper management of service encounters is important in reducing the unnecessary incidences that may arise due to negligence in the process of service delivery. These incidences may be attributed to lack of proper knowledge of the desires of customers. These should be the main focus of managers when they develop techniques of service encounters since it is for customers that the service encounters exist. This is what makes it necessary for developing the service encounters from a customers perspective, since the profitability of the service providers depends on customer satisfaction. It is important for service providers to understand their customers in order for them to offer the best services. The quality of services is the determinant of customer satisfaction and therefore the providers should strive to ensure that the customers’ desires are met. Bibliography 1. Antonio G. 1993. Radical Return to the Material Process, 2nd edition: Florence, McColl Publisher 2. Armstrong, M. 2002. Employee Reward. 3rd ed., London: Chartered Institute of Personnel and Development. 3. Arne L. K. 2001. Organizing Flexibility: The Flexible Firm in a New Century, British Journal of Industrial Relations, 39:4, pp. 479-504. 4. Bach, S. 2005. Managing Human Resources: personnel management in transition. 4th ed., Oxford: Blackwell. 5. Beardwell, J. and Claydon, T. 2007. Human resource management: a contemporary approach. 5th ed., Harlow: Financial Times Prentice Hall. 6. Bratton, J. and Gold, J. 2007. Human Resource Management: Theory and Practice. 4th ed., Basingstoke: Palgrave MacMillan. 7. Charlie C. 2007. Leadership in Today’s Society: an Overview of Development, 2nd edition, London: Century Business. 8. Edwards J. 2006. Leadership in the Labor Market: Journal of Leadership Behavior & Research. Vol.11 No. 1, July. 9. Feldman A. 2008. Management and Leadership: Impact of Bad Leadership in Business, California University Press. 10. Geoffrey A. 2004. Human Resources Development: Difficulties Encountered in Leadership, Business Development Journal, vol. 3, no. 2, August. Read More