Managerial Implications in Service Organizations Article Summary Research has shown time and time again the positive relationship between customer satisfaction and customer loyalty (Reichheld & Teal, 2001). The good news is that if an organization manages to provide the desired services, the customers will probably reward that organization with their repeat visits and loyalty. The bad news is that it is not enough just to provide satisfactory service to obtain loyalty. Loyalty is a result of a superior satisfaction (See Figure 1). Satisfied customers are just as likely to wander off and fall for a competitor’s offer as they are to be loyal to the company they were just satisfied with. Although nothing may have been wrong with the service received,
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To do so, a manager needs to be able to predict what customers need and where and when they will need it, as well as foreseeing possible changes in their behaviour. On top of that, the manager also needs to leverage the human resources at his or her disposable. This means that the right number of people are working at the right time at each location; are properly trained; are skilled and knowledgeable; and show the right attitude to do the job at the moment of truth when facing the customer (Davidson, Beaujean & Madge, 2006). Sounds easy? Far from it! With the increase in customers’ choices and changing needs, this leveraging act is only going to become more important and more challenging for overall organizational …show more content…
Now, employees are expected to actively listen, watch, and act on the judgement they make from the service interaction. Managerial roles have changed as a result of this. Instead of controlling and taking disciplinary actions, managers now use role modeling, motivation, inspiration and team-building activities. In fact, greater emphasis has been placed on developing the leadership behaviours of managers over the last few years not only in the service industry, but across other industries as well (Graham & Karst, 2014). What would happen if everyone in the organization engaged in acts of leadership and shared a common interest in protecting and preserving the organization? What would be cumulative effect of collective leadership effort on the part of every organizational member serving on both the front and second front
To do so, a manager needs to be able to predict what customers need and where and when they will need it, as well as foreseeing possible changes in their behaviour. On top of that, the manager also needs to leverage the human resources at his or her disposable. This means that the right number of people are working at the right time at each location; are properly trained; are skilled and knowledgeable; and show the right attitude to do the job at the moment of truth when facing the customer (Davidson, Beaujean & Madge, 2006). Sounds easy? Far from it! With the increase in customers’ choices and changing needs, this leveraging act is only going to become more important and more challenging for overall organizational …show more content…
Now, employees are expected to actively listen, watch, and act on the judgement they make from the service interaction. Managerial roles have changed as a result of this. Instead of controlling and taking disciplinary actions, managers now use role modeling, motivation, inspiration and team-building activities. In fact, greater emphasis has been placed on developing the leadership behaviours of managers over the last few years not only in the service industry, but across other industries as well (Graham & Karst, 2014). What would happen if everyone in the organization engaged in acts of leadership and shared a common interest in protecting and preserving the organization? What would be cumulative effect of collective leadership effort on the part of every organizational member serving on both the front and second front