OUTLINE - Bilkent University



MODULE 2: WORKPLACE BASICS

CHAPTER SEVEN: QUALITY ORGANIZATIONS AND SERVICE

OBJECTIVES

• Define productivity and its impact on organizational success

• Identify and define directional statements

• Know the various types of plans used in an organization

• Define the primary business functions and their purpose in an organization

• Define quality and its importance in business

• State the difference between a product, a good, and a service

• Define creativity and innovation

• Identify and describe the importance of customers and customer service

• Describe how to handle a difficult customer

OUTLINE

1. PRODUCTIVITY IN THE WORKPLACE

a) Perform a function that adds value to the company

b) Whatever you produce (output) should add value to the company

c) Productivity at work starts with:

i) Ethics

ii) Attitude

iii) Goals

d) Mission—a statement of purpose (what and why)

e) Vision—viable view of the future (where)

f) Values—standard of behavior (how)

g) Directional statements create a foundation for why a company exists and how it will operate (mission, vision, and values)

h) Company strategy

i) Strategy—outlines major goals and objectives and serves as a company roadmap

ii) Strategic plan—a formal document that identifies how the company will secure, organize, utilize, and monitor its resources

iii) Company resources

1) Human

2) Fiscal (financial)

3) Capital

iv) Goal— a broad statement or aim

v) Objective—short-term goals (activities) that support a goal. Objectives have timelines and are measurable

2. LINES OF AUTHORITY

a) Organizational structure

i) The way a company is organized

b) Organization chart (see figure 7-1)

i) Identifies key functions within the company

ii) Shows the formal lines of authority for employees

c) Company Structure with key titles (see figure 7-2)

d) Major organizational functions

i) Divisions—major functions within a business

ii) Departments—carry out specific functions within divisions

iii) Key business functions

1) Finance and accounting

2) Human resource management

3) Operations

4) Information systems

5) Marketing

6) Legal counsel

e) Finance and Accounting—distribution and growth of a company’s financial assets

i) Capital budget—long-term investments

ii) Operational budget—short-term items

f) Human Resource—recruiting, hiring, training, evaluation, compensating, promotion, and terminating (deals with the employee side of business)

g) Operations—production and distribution of the company’s product

h) Information Systems—electronic management of information

i) Back up of files

ii) Empty electronic trash bin

iii) Conduct routine virus checks

iv) Responsible for reported computer viruses and systematic problems

i) Marketing—creating, pricing, selling, distributing, and promoting the company’s product

j) Legal—legal matters relating to the business

3. QUALITY AND THE COMPANY

a) A building, its employees, and the product produced are major elements that define a company, but a company needs customers to succeed

b) Each job in the company has a purpose

c) Do your best at all times

d) Important company elements—quality, customer loyalty, employee loyalty, profit

e) Quality-A predetermined standard that defines how a product is to be provided

i) Customers demand quality in the product and from the company’s employees

ii) If customers do not perceive that they have received a quality product they will not make a repeat purchase

f) Customer loyalty

i) If customers perceive that they have received value and quality products, they will display loyalty to your company by making repeat purchases

ii) Companies want to build brand loyalty with customers

iii) Customers will be loyal to a company and its products when quality products and customer service are consistently provided

g) Employee loyalty-An employee’s obligation to consistently support a company and its mission

i) Do your job, and do it well

ii) Show respect for company policies, your coworkers, and the company’s customers

iii) Promote the company and its products

iv) Do not speak poorly of your company, coworkers, or the company’s product

h) Profits

i) The success of a company depends on profit

ii) Revenue (money coming in from sales) minus expenses (the costs involved in running the business)

iii) As profits increase, the company can grow

i) Product, good, service

i) Product—what is produced by a company, this can be a good, a service, or both

ii) Good—a tangible item, or something that you can physically see or touch

1) Appliances, toys, or equipment

iii) Service—an intangible product, in other words, you cannot always touch or see the product

1) Haircuts, banking, golf courses, and medical services

TALK IT OUT: Identify common money wasters in the workplace.

1. WHO IS THE CUSTOMER?

a) A customer is one who buys a service or product

b) A company cannot survive without customers

c) Internal customers are fellow employees and departments that exist within a company

i) Coworkers and other departments

d) External customers are individuals whom the company serves outside

i) Customers, vendors, and investors

e) To create a satisfied customer you need a high-quality product or service and excellent customer service

Quality Employees + Quality Inputs

= Quality Products = Satisfied, Loyal Customers = Profits

2. QUALITY

a) When it comes to quality, customers’ expectations are high

b) Customers expect that a product will last

c) Value— when customers believe they are getting a good deal for the price they paid

i) Customers expect value

ii) Customers measure product quality by comparing your product to similar products

3. CREATIVITY AND INNOVATION

a) Creativity is coming up with a new and unique good, service, or system

i) Creative people ask “what if”

b) Innovation is the process of turning a creative idea into reality

7. EXCELLENT CUSTOMER SERVICE DEFINED

a) The treatment an employee provides the customer

i) Respect and kindness

b) Expectations

i) Competent employees—know the product(s) your company offers

ii) Dependable employees—are reliable and take responsibility to assist a customer

iii) Responsive employees—provide customers with personal attention

c) Impressions

i) As soon as a customer comes in contact with a business, an opinion is formed about that business

ii) There is only one first impression, so it must be good

i) The appearance of the building and/or employees can be the reason a customer comes to your company in the first place

TALK IT OUT: As an employee, what customer body language would indicate that the customer needs help and what body language would indicate that the customer wants to be left alone?

8. THE IMPACT OF CUSTOMER SERVICE

a) Get to know your customers

b) Excellent customer service is the biggest reason customers return

c) Build a relationship with the customer that will make him or her loyal to you and your business

d) A business needs satisfied customers to not only make repeat purchases, but also to tell others about their favorable experiences

TALK IT OUT: Discuss the difference between a service and customer service?

This is a good time to clarify that a service is a product, but customer service is needed for a service product and a goods product.

9. THE DIFFICULT CUSTOMER

a) “The customer is always right”

i) The customer may not be right

ii) Although the customer may be wrong, you need to adopt the attitude that the customer is unhappy and do all you can to help the customer solve his or her problem

iii) Have patience and sympathize with the customer

b) Tips for handling the customer

i) Stay calm, let the customer talk, and listen for facts—let the customer vent for a few minutes, do not interrupt or say “please calm down”; you should not take his or her harsh words personally

ii) Watch body language—tone of voice, eye contact, and arm movement; if you feel a difficult customer has the potential to become violent or physically abusive, immediately seek assistance

iii) Acknowledge the customer’s frustration—say, “I can understand why you are upset”

iv) Make sure the problem gets solved—take care of the problem yourself

v) Know company policy—if a customer challenges a policy, calmly and politely explain the purpose of the policy

vi) Expect conflict, but do not accept abuse—if a customer shows aggressiveness or is cursing, politely tell him or her that you cannot help until he or she is able to treat you in a respectful manner; if the customer continues the inappropriate behavior, immediately call a supervisor

TALK IT OUT: If a customer is angry and using a raised voice, what would you say to that customer?

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