Customer Satisfaction at The Plaza Crowne Hotel

Customer Satisfaction at The Plaza Crowne Hotel Chapter I Introduction 1.1 Introduction Tourism is frequently and justifiably described as a major phenomenon of modern times. Since 1950 the number of international tourist arrivals worldwide has increased spectacularly, from just 25 million to over 924 million in 2008. Representing an average annual growth of 7 % a year (Sharpley, R., 2004; and WTO – World Tourism Organisation, 2009). International tourism generated US$ 856 billion in 2007, representing 30% of the world’s exports of services for the related year. Under the influence of the recent global economic recession, tourism demand has significantly slowed down in the past few months. Notably in the second half of 2008 growth came to stagnation with the number of international arrivals declining slightly – a trend which is expected to continue in 2009 and probably beyond, if the economy does not show signal of reaction (WTO – World Tourism Organisation, 2009). Regardless of the current actual global recession, it is undeniable the importance of the tourism activity for the world economy, mutual understanding of nations, personal growth and development, just to mention a few benefits that tourism brings in. The hospitality industry, as a segment of the tourism industry, plays a major role in this economic activity (King, 1995). Being accommodation the biggest percentage in tourism expenditure, in average of 34% of the total expenditure per trip (Sharpley, R., 2004). The success of the hospitality industry, relies massively on the quality of the service delivered and customer satisfaction. The index of the measurement of both, quality service and customer satisfaction, will widely influence on occupancy rates, hence, on the profitability of the company (Holloway, JC, 1998; Solomon et al, 2006). Therefore, justifying the need for a reliable model of assessment of customer satisfaction and service quality that would better adapt to the hospitality field, which at present still have a lack of agreement. 1.2 Research Title The measurement of service quality and customer satisfaction in the hospitality industry: a case study of the Plaza Crowne Hotel. 1.3 Research Background For Cardozo (1965), cited by Williams and Uysal (2003), marketing researches in the consumer satisfaction field started in the early 60’s. The subject had a relevant increase in popularity by organisations and researchers only in the 80’s, when organisations, in an attempt to try to keep itselves in the marketplace, started paying substantial attention on customer’s expectations demands. 1.4 Research Aims The aim of this project is to analyse customer satisfaction and service quality measurement, using the SERVQUAL model, within The Plaza Crowne Hotel – Kansas City (USA), based upon the hotel’s own data against the highlighted gaps within the model. 1.5 Research Objectives In order to achieve the specified aim it will be necessary to: Conduct a review of service quality and customer satisfaction; Illustrate The Plaza Crowne Hotel’s current customer satisfaction and service quality measurement model to identify its positive and negative aspects; Conduct an initial diagnosis of the key issues presented in the Crown Plaza data, examining the hotel’s past assessments in order to identify areas of failure; Analyse the SERVQUAL model focusing on the hospitality industry; Identify and critically recommend suitable quality measurement practices to apply within The Plaza Crowne Hotel, if necessary; Chapter II Literature Review 2.1 Introduction To Kotler et al (1996), nowadays companies need to change their view and attitude in the marketplace and adopt a more customer centred philosophy, in order to keep competitive and profitable. Customers are changing their behaviour towards consumption, becoming more challenging to companies to attend their expectations, as they are increasingly aware of their rights, expect more than they used to, and know exactly what they want when purchasing a product or service. This increase in consumers expectation naturally leads to the need of a higher quality in costumer services delivery. Customer satisfaction and quality service became priority for companies worldwide. They are believed to generate repeated business, therefore increased profit margin. The hospitality industry is paying close attention to it. Hampton’s Inn, a well know resort in Florida, has developed a 100% satisfaction guarantee program that promises its customers no charge unless they are completely satisfied. Other companies such as Sheraton Hotels has implemented a employees’ reward system for superior services to guests, the Sheraton Guests Satisfaction System (SGSS). Hilton International has adopted as a primary goal its customers satisfaction with global diversity. Moreover, organisations are increasingly becoming adept of rewarding its employees with bonuses, incentives and salary rise, just to mention a few actions to improve service. (Oh, 1997). Therefore, marketing researchers are constantly developing and improving models of measuring customers satisfaction and quality service. Among many measurement models and theories, this dissertation will focus on the analysis of the 5 Gaps Model developed by Parasuraman, Berry and Zeithaml also called The Servqual Model. 2.2 Defining Service Service is any act or performance that one firm can offer to a costumer, its nature is essentially intangible and does not result in the ownership of anything. The service production may or may not be tied to a physical product (Kotler, P, 2003). Addittionaly, Gronroos (1990) cited by Hsu et al (2001, p.18) defines service as â€Å"an activity or series of activities of more or less intangible nature that normally, but not necessarily, takes place in interactions between the costumer and services employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer’s problems†. From the consumer’s optic, service is nothing else than the experience lived in the whole process of this transaction (Hsu et al, 2001). Moreover, it was noted that services have four major characteristics that greatly affect the way it is delivered and its marketing programme. Which are: intangibility, inseparability, variability, and perishability (Kotler, 2003). Bellow the four charactecristics are briefly explained in the light of Kotler (2003) and Hsu et al (2001): Intangibility relates to the extent that services cannot be tried in anyway before they are actually purchased and delivered. The only thing that can be done to reduce uncertainty is to look for evidences of service quality; Inseparability is the relation that services are typically produced and consumed simultaneously. The person who provides the service, is actually part of the service purchased, therefore the importance of the interaction of providers and customers; Variability occurs because services depend on who provides, when and where, one experience is never exactly equal the other. As people are the means through service production, personal problems, mood, knowledge of the job and many other factors can interfer and widely vary the service; Perishability means that services cannot be stored as we can do with manufactured products, because services are produced and consumed simultaneously. As an example, in a hotel, a room that was not occupied yesterday, cannot be sold anymore as time does not goes backwards. For Cook (2002) the increased global competition has made many organisations realised that they cannot compete only in price. Therefore companies are developing their own strategy in providing superior customer care to differentiate their products and services. â€Å"Surveys suggest that service-driven companies can charge up to 9 per cent more for the products and services they provide. They grow twice as fast as the average company and have the potential to gain up to 6 per cent market share† (Cook, 2002, p.1). 2.3 Defining customer satisfaction and quality service Peter Drucker cited by Cook (2002, p.1), once said: â€Å"There is only one valid definition of business purpose: to create a customer () an organisation’s ability to remain in business is a function of its competitiveness and its ability to win customers from the competition. The customer is the foundation of the business and keeps it in existence†. Customer satisfaction relates to the personal opinion and result of customers’ assessment of a service based on a comparison of their expectations and actual perceptions of the service delivered (Clark, G.; and Johnston, R., 2005). According to Lancaster et al (2002) from the customer’s point of view, service is judged by the mix of customers’ previous experiences and their perception of the outcome of the service. The service experience is the customer’s direct experience of the service process and concerns the way the customer is dealt with by the service provider. The result for the customer of the service delivered is described by the term service outcome. (Lancaster, G. et al, 2002). â€Å"Service quality is more often used to mean different things. Some managers use the term to mean how the customer is treated. This is perhaps more accurately called quality of service, as opposed to service quality, which can mean the entirety of outcome and experience† (Clark, G.; and Johnston, R., 2005, p.108). Van Looy (et al, 2003) differentiates service quality and customer satisfaction stating that â€Å"service quality is a form of attitude representing a long-run, overall evaluation, whereas satisfaction represents a more short-term, transaction-specific judgement. The level of customer satisfaction is the result of a customer’s comparison of the service quality expected in a given service encounter with perceived service quality. This also means that satisfaction assessments require customer experience while quality does not â€Å"(p.124). 2.4 Benefits of service quality Kotler (1996) has listed many benefits that an organisation enjoys as a prize for delivering service quality. As listed bellow: Retaining customers – high quality builds loyal customers and creates positive word of mouth. Avoidance of price competition – â€Å"the PIMS data show that firms in the top third in quality could charge 5% to 6% higher than those in the bottom third. High quality can help to avoid price competition and help to maximise potential revenue† (p.363). Retention of good employees – employees appreciate working in operations that are well managed and produce quality services and products. When an organisation operates in high quality, it decreases turn over rates, hence, retaining good employees. Additionally, recruiting is easier and training costs are reduced. Reduction of costs – which are divided in three categories of costs: Internal costs are those associated with correcting problems discovered by the firm before the product reaches the costumers; External costs – are associated with errors that the costumers experience; Quality system costs – are costs viewed as investments in the future of the company to ensure that customers return. (Kotler, 1996) 2.5 Benefits of a customer-centred organisation An excellent service provides many benefits to an organisation, Cook (2002) has listed what some of the best-practice organisations have gain on focusing on the customer. â€Å"Differentiate itself from the competition; improve its image in the eyes of the customer; minimise price sensitivity; improve profitability; increase customer satisfaction and retention; achieve a maximum number of advocates for the company; enhance its reputation; ensure products and services are delivered ‘right first time’; improve staff morale; increase employee satisfaction and retention; increase productivity; reduce costs; encourage employee participation; create a reputation for being a caring, customer-oriented company; foster internal customer/supplier relationships; bring about continuous improvements to the operation of the company† ( p.24). 2.6 Importance of customer relationship management (CRM) Customers perceive service quality through everyday aspect of their contact with the company. In improving the quality of its service therefore an organisation needs to develop a strategy bearing in mind all aspects of the relationship with its clients. (Cook, 2002) Customers often do not perceive the service they receive from an organisation as a complete entity. Attention to detail is a key tool of the organisation’s relationship with the customer â€Å"such as an incorrectly addressed letter, a lengthy delay in receiving an e-mail response, a service which turns out to be different to how it was originally advertised, which forms customers’ impressions† (Cook, 2002, p.24). CRM involves managing the customer relationship across all its interfaces with the company as one entire process. A CRM system can help identify sales prospects from existing or potential customer databases. It also can assist with all aspects of the sale and service being provided, eg offering online access to order status and a single view of the customer status when the sale is complete. It can collect information about the customer and the queries that he or she made. It can also monitor customer-usage patterns, so abnormal patterns or a reduction in use can be identified. Hotels systems can store any peculiarity or requests made by guests, such as preferences for smoking or non-smoking rooms, higher or lower floors etc. (Cook, 2002 and Lancaster et al, 2002). Ernst and Young found elements that are essentially important for organisations to build a CRM framework. First basic step is to accumulate systematic knowledge of its markets and costumers. This could be made by complex IT systems, that are designed to store, manager and analyse informations about customer’s value. With this tool organisations can access business informations regard theier costumers, and also predict consumer’s behaviour. Enabling organisations to share informations across departments, and automatically update this informations by tracking loyalty cards costumers, any time they make a purchase or request the company’s service,for example (Cook, 2002). CRM systems helps companies to target theier segments, and also to analyse the information flow throughout the company. Making easier to identify its costumers needs, and more importantly, shows the best way to approach its most profitable clients. The more information a company holds about its costumer’s the best is the knowledge built, as it helps refines consumer segmentation and individual needs. In this particular case, data about costumers life-style is very helpful (Cook, 2002). Selling involves taking a proactive approach towards costumers, rather than a reactive. For instance, hotels can treat their most profitable business guests with special offers on their holidays. To finish the CRM framework, is essential to hold a service, providing an after-sales which should be measured to individual needs (Cook, 2002). 2.7 Importance of performance measurement and a programme development â€Å"You cannot manage what you can not measure† (Kelvin Anon, www.dti.gov.uk/quality/performance). According to Cook (2002) and Williams (2002) managers braves the way through customer satisfaction measurement. A measurement programme starts with a clear definition of objectives, budget and timeline. Moreover, for this task to be performed and achieve its highest level of success, it is necessary the full commitment and willingness of top management to act on the results founded. A starting point should be to decide which part of customer satisfaction the company is most concerned to measure. Is also important to be aware that expectations and satisfaction levels can widely vary between the costumers of a company, therefore, the need to identify market segments. For example, the different needs of a businesses and tourists guest of a hotel. (Cook, 2002; Laws, 2004; Williams, 2002) According to Clark and Johnston (2005) performance measurement is costly. Few organisations have calculated just how much time and energy they spend on measuring their performance and its value for money relation. Two useful tests of a performance measure are, first, what is its purpose and, second, what systems are in place to support or achieve that purpose. There are four main purposes or reasons to take measurement: communication, motivation, control and improvement within the company. In the endless improvement process, measuring performance is an important task in order to identify and track progress in harmony with the organisations’ goals; identify areas and opportunities for improvement; and compare performance with internal and external standards (www.dti.gov.uk/quality/performance). According to the Department of Trade and Industry (DTI) the main reasons of measuring performance is: †¢ â€Å"To ensure customer requirements have been met †¢ To be able to set sensible objectives and comply with them †¢ To provide standards for establishing comparisons †¢ To provide visibility and a â€Å"scoreboard† for people to monitor their own performance level †¢ To highlight quality problems and determine areas for priority attention †¢ To provide feedback for driving the improvement effort† (retrieved from ). 2.8 The SERVQUAL model The Servqual model was developed by Parasuraman, Zeithaml and Berry, and has been one of the most popular service quality measurement instrument since then. The model was designed to measure those components of service that generate satisfaction within five dimensions (Ryan and Saleh,1991; Lee et al, 2004; Johns et al, 2004). Originally the researchers conducted a focus group studies with service providers and costumers, and as a result they came up with a list of ten determinants or dimensions of service quality which are: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer and tangibles, (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) which will be briefly explained bellow: Tangibles – the appearance of physical facilities, the personnel, the tools or equipment used to provide the service and communication material. Guests of a hotel look for details of the building, web sites and reservation systems for instance. Reliability – consistency of performance and dependability. This means that the firm performs the service correctly the first time and that the firm honours its promises. Responsiveness – the willingness to help the customers and to provide prompt service. Competence – knowledge, ability and possession of the right skills to perform the job. Access – degree of approachability of service providers. Courtesy – use of good manners, politeness, friendliness, smiling during the service. Communication – ability to successfully communicate with costumers, keep them informed. Understanding – degree of interest of employees to know the costumers needs and wants. Assurance – knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy – caring, individualized attention to customers. (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) Later on, in another attempt of improving their models they found a high degree of correlation between communication, competence, courtesy, credibility and security. They therefore, merged them into one dimension, which they called assurance. Similarly they found a high correlation between access and understanding which they merged into empathy. Thus compacting the dimensions of service quality in five which are: tangibles, reliability, responsiveness, assurance and empathy (Van Looy, B et al, 2003; Dabholkar et al 2000). The diagram bellow was originally made to suit the quality service measurement and customer satisfaction of a car repair garage. Which can be easily adapted to any other service organisation, surely including any hotels to be more precise. Source: http://www.emeraldinsight.com/fig/0240221006003.png The SERVQUAL identified gaps between clients and organisations perceptions of attributes of service perceived, and also between customers expectations and perceptions of the service actually delivered (Ryan and Saleh,1991; Landrigan, 1999). This has led to the well known and widely used 5 gaps of service quality: Gap 1: Consumer expectations versus management perception CEO’s and managers often fail to realise what consumers expect of a service and which features needs to be pursued to deliver a high-quality service. When management does not understand what their customers want, a gap 1 exists. Very often, organisations research to find out what are their markets needs and wants, but later can occur a divergence. When customer needs change but the product remains the same, gap 1 increases, as the service becomes less attractive (Parasuraman etal, 1991). Gap 2: Management perception versus service quality specifications A gap 2 situation occurs when managers know their customers needs, but do not deliver it, either for unwillingness or incapability. Reasons for gap 2 to happen could be inadequate commitment to service quality, absence of goal setting, lack of perception of feasibility, and lack of standardization. The pursuit to achieve short-term profits refrain companies to invest in equipments and people, causing service quality issues (Parasuraman etal, 1991). Gap3: Service quality specifications versus service delivery Gap 3 occurs when employees are unwilling or unable to deliver the appropriate service that was specified by management. In this case managers understand their customers needs, develop strategies and tasks to fulfil these needs, but in the moment of employee and costumer interaction it does not occur (Parasuraman etal, 1991). Gap 3 could be minimised through training and development, rewarding and internal marketing campaigns. Human resources department plays a major role in this task. Gap 4: Service delivery versus external communications A company creates gap 4 when it promises more than it can deliver, creating disappointments to its customers. Good sense and ethic when advertising should be primordial in any circumstances (Parasuraman etal, 1991). The image of a company that cheats or lies to its costumers leads to an extremely bad reputation and negative word of mouth. Gap 5: Expected service versus perceived service Last but not least, gap 5 is a function of the other gaps. It pictures the difference among expected quality and perceived quality. If any of the other 4 gaps increases or decreases, gap 5 will follow it (Parasuraman etal, 1991). The diagram below represents the 5 gaps model of quality service. Source: http://www.kmfadvance.com/mind_the_gap_files/image004.jpg 2.9 Criticisms and limitations of the SERVQUAL According to Oh (1997) the use of the difference of the scores contributes to discrepancies and errors, affecting the reliability and valididyt of the model. Such finding suggests that caution has to be taken when using the scores, and that additional work is essential to the development of measures of assessing the quality of services. In addition it is also noticeable that the SERVQUAL lacks in ties with statistics, economics and even psychology theories, therefore many arguments has formed a doubtful opinion regards its relaibility. 2.10 Other service quality and costumer satisfaction measurement models Obviously, the SERVQUAL is not the only model available to measure service quality and costumer satisfaction. Indeed, there is a range of variety of models out there. Some of them will be quickly explained in this study. 2.10.1 The expectancy-disconfirmation model (EDM) The principle of expectancy theory was early stated by Lewin (1938) who hypothesized that individuals make decisions on the most appropriate action to take based on their expectations of the outcomes of that action. After being reviewed by many researchers, the model developed to two processes: the formation of expectations and the disconfirmation/ confirmation of the expectations through performance evaluations (Oh, 1997; available at http://proquest.umi.com.newdc.oum.edu.my/pqdweb). Chapter III Research Methodology 3.1 Research Process This research will include several components of different character, promoting the approach to new problems, providing bibliographic survey, offering a selection of methodologies, as well as providing a critical analysis of results (Saunders, et al, 2003). In order for the aims of this research to be met it is necessary to gain an understanding of the practices of the service quality and customer satisfaction assessments applied within The Crowne Plaza Hotel (please see appendix II). This data will be given by one manager of the company, and will be adapted for a experimental application of the SERVQUAL model. The research and development will comprise creative work undertaken on a systematic basis in order to build knowledge accumulation, including not only the practices of the service quality and customer satisfaction assessments model researched but how would be applied within The Crowne Plaza Hotel in order to achieve competitive advantage and business success. The purpose of the literature review is theoretically discussing ideas that exist about the given topic. Data sources, such as library catalogues and indexes will be scanned for secondary data. This will produce a list of journals and newspaper articles, published books and internet sources (Saunders, et al, 2003). The secondary research will be complemented by primary research, through questionnaires and interviews with stakeholders of the organization in question. In case of interviews and questionnaires, the manager cooperating with this research will be fully informed about the, methods and intended possible uses of the research, what their participation in the project entails, the strict confidentiality, and academic purpose only (Bell, 1999). The project proposes to use analytical and theoretical framework, which extends descriptive research, making suggestions of why and how practices of the service quality and customer satisfaction assessments plays an important role in the competitive advantage, profitability and success of the firm (Yin, 2003). A method of both, quantitative and qualitative approach will be applied in order to examine values, attitudes and perceptions aspects of the research subject. (Flick, 2003) The departure point will be deductive, with the observation of the SERVQUAL model, fed by the organisation information’s collected where conclusions will be critically evaluated against facts. Moreover, a phenomenological philosophy will be implemented, applying a case study approach, since this kind of research methodology is ideally suited to investigate the insights into the service quality and customer satisfaction in theory and practice (Yin, 2003). The data collected for this research was taken between the months of January, February and March 2009, it consists of 380 customer satisfaction surveys, applied by the hotel. This surveys were answered by guests, either on the check-out or on the hotel web site, after their stay in the hotel. At the time of the data collection, was common practice of the hotel’s front desk manager to put the weekly result together and send to all hotel departments, so they could have a picture of the guest’s feedback. 3.2 Research Theories In order to achieve this reaserch objectives it will be necessary to apply many reaserch theories that reinforces the reliability of it. The theories used in this research will be briefly explained one by one. 3.2.1 Case study According to Robson (2002:178) cited by Saunders et al, 2003, p.93), a case study is â€Å"a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evedence†. A case study approach is recommended to those reasearchs that essentially aims to explain ‘why’, ‘how’ such phenomenon occurs, as well as in research that includes surveys (Saunders, 2003; Yin,2003). A case study is also a scientific way of explore an existing theory, which is one of the main objectives of this research, as is analysing the use of SERVQUAL (Saunders, 2003). 3.2.2 Descriptive studies In order to have a clear picture of the scenario studied is essentially important to describe with accuration every data collected. As cited by Saunders et al (2003, p.97), Robson, 2002:59 describes the objective of descriptive research as ‘ to portray an accurate profile of persons, events or situations’. 3.2.3 Deductive method Complementing the case study approach, a deductive method could be simply described as way of what we would think of a scientific research or theory, moving from theory to practice (Bailey, 2006; Cottrell, 2005; Saunders, 2003). â€Å"It involves the development of a theory that is subjected to a rigorous test† (Saunders, 2003, p. 86). The deductive method has many characteristics. â€Å"First, there is the search to explain casual relationships between variables† (Saunders, 2003, p. 86). Then, hypothesis development, followed by hypothesis testing, normally using quantitative data, but could also being backed up by qualitative data. 3.2.4 Quantitative data On the other hand quantitative research apply measurements and normally considered as better than qualitative research. Ghauri and Gronhaug (2005; p. 109) explains that â€Å"the difference between quantitative and qualitative methods and approach is not just a question of quantification, but also a reflection of different perspectives on knowledge and research objectives†. A method of qualitative approach will be applied in order to examine values, attitudes, and perceptions aspects of the research subject. 3.2.5 Qualitative data A narrative analysis process was implemented to interpret the data that were collected from the research portion of this project. Thomas (2003; p.1) argues that â€Å"Qualitative methods involves a researcher describing kinds of characteristics of people and events without comparing events in terms of measurements or amounts† 3.3 Research Design The survey consists of a questionnaire of 44 questions (picked by the hotel’s own customer satisfaction survey) related to the quality of the service provided by the hotel. The guests (sample = 380) will answer the questions according to their perception of the service received, whilst the managers (sample = 4) will answer the questions according to what they expect the overall of the guests to answer. The answers will range between score 1 to score 5. Being 1 the best degree of satisfaction and 5 the worst degree of dissatisfaction, (Saleh and Ryan, 1991) having some variations as follows: Score 1: very satisfied / definitely would / much more than you paid / much better / excellent / yes Score 2: somewhat satisfied / probably would / somewhat more than you paid / somewhat better / very good Score 3: neither / might or might not / about what you paid / about the same / good Score 4: somewhat dissatisfied / probably would not / somewhat lees than you Customer Satisfaction at The Plaza Crowne Hotel Customer Satisfaction at The Plaza Crowne Hotel Chapter I Introduction 1.1 Introduction Tourism is frequently and justifiably described as a major phenomenon of modern times. Since 1950 the number of international tourist arrivals worldwide has increased spectacularly, from just 25 million to over 924 million in 2008. Representing an average annual growth of 7 % a year (Sharpley, R., 2004; and WTO – World Tourism Organisation, 2009). International tourism generated US$ 856 billion in 2007, representing 30% of the world’s exports of services for the related year. Under the influence of the recent global economic recession, tourism demand has significantly slowed down in the past few months. Notably in the second half of 2008 growth came to stagnation with the number of international arrivals declining slightly – a trend which is expected to continue in 2009 and probably beyond, if the economy does not show signal of reaction (WTO – World Tourism Organisation, 2009). Regardless of the current actual global recession, it is undeniable the importance of the tourism activity for the world economy, mutual understanding of nations, personal growth and development, just to mention a few benefits that tourism brings in. The hospitality industry, as a segment of the tourism industry, plays a major role in this economic activity (King, 1995). Being accommodation the biggest percentage in tourism expenditure, in average of 34% of the total expenditure per trip (Sharpley, R., 2004). The success of the hospitality industry, relies massively on the quality of the service delivered and customer satisfaction. The index of the measurement of both, quality service and customer satisfaction, will widely influence on occupancy rates, hence, on the profitability of the company (Holloway, JC, 1998; Solomon et al, 2006). Therefore, justifying the need for a reliable model of assessment of customer satisfaction and service quality that would better adapt to the hospitality field, which at present still have a lack of agreement. 1.2 Research Title The measurement of service quality and customer satisfaction in the hospitality industry: a case study of the Plaza Crowne Hotel. 1.3 Research Background For Cardozo (1965), cited by Williams and Uysal (2003), marketing researches in the consumer satisfaction field started in the early 60’s. The subject had a relevant increase in popularity by organisations and researchers only in the 80’s, when organisations, in an attempt to try to keep itselves in the marketplace, started paying substantial attention on customer’s expectations demands. 1.4 Research Aims The aim of this project is to analyse customer satisfaction and service quality measurement, using the SERVQUAL model, within The Plaza Crowne Hotel – Kansas City (USA), based upon the hotel’s own data against the highlighted gaps within the model. 1.5 Research Objectives In order to achieve the specified aim it will be necessary to: Conduct a review of service quality and customer satisfaction; Illustrate The Plaza Crowne Hotel’s current customer satisfaction and service quality measurement model to identify its positive and negative aspects; Conduct an initial diagnosis of the key issues presented in the Crown Plaza data, examining the hotel’s past assessments in order to identify areas of failure; Analyse the SERVQUAL model focusing on the hospitality industry; Identify and critically recommend suitable quality measurement practices to apply within The Plaza Crowne Hotel, if necessary; Chapter II Literature Review 2.1 Introduction To Kotler et al (1996), nowadays companies need to change their view and attitude in the marketplace and adopt a more customer centred philosophy, in order to keep competitive and profitable. Customers are changing their behaviour towards consumption, becoming more challenging to companies to attend their expectations, as they are increasingly aware of their rights, expect more than they used to, and know exactly what they want when purchasing a product or service. This increase in consumers expectation naturally leads to the need of a higher quality in costumer services delivery. Customer satisfaction and quality service became priority for companies worldwide. They are believed to generate repeated business, therefore increased profit margin. The hospitality industry is paying close attention to it. Hampton’s Inn, a well know resort in Florida, has developed a 100% satisfaction guarantee program that promises its customers no charge unless they are completely satisfied. Other companies such as Sheraton Hotels has implemented a employees’ reward system for superior services to guests, the Sheraton Guests Satisfaction System (SGSS). Hilton International has adopted as a primary goal its customers satisfaction with global diversity. Moreover, organisations are increasingly becoming adept of rewarding its employees with bonuses, incentives and salary rise, just to mention a few actions to improve service. (Oh, 1997). Therefore, marketing researchers are constantly developing and improving models of measuring customers satisfaction and quality service. Among many measurement models and theories, this dissertation will focus on the analysis of the 5 Gaps Model developed by Parasuraman, Berry and Zeithaml also called The Servqual Model. 2.2 Defining Service Service is any act or performance that one firm can offer to a costumer, its nature is essentially intangible and does not result in the ownership of anything. The service production may or may not be tied to a physical product (Kotler, P, 2003). Addittionaly, Gronroos (1990) cited by Hsu et al (2001, p.18) defines service as â€Å"an activity or series of activities of more or less intangible nature that normally, but not necessarily, takes place in interactions between the costumer and services employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer’s problems†. From the consumer’s optic, service is nothing else than the experience lived in the whole process of this transaction (Hsu et al, 2001). Moreover, it was noted that services have four major characteristics that greatly affect the way it is delivered and its marketing programme. Which are: intangibility, inseparability, variability, and perishability (Kotler, 2003). Bellow the four charactecristics are briefly explained in the light of Kotler (2003) and Hsu et al (2001): Intangibility relates to the extent that services cannot be tried in anyway before they are actually purchased and delivered. The only thing that can be done to reduce uncertainty is to look for evidences of service quality; Inseparability is the relation that services are typically produced and consumed simultaneously. The person who provides the service, is actually part of the service purchased, therefore the importance of the interaction of providers and customers; Variability occurs because services depend on who provides, when and where, one experience is never exactly equal the other. As people are the means through service production, personal problems, mood, knowledge of the job and many other factors can interfer and widely vary the service; Perishability means that services cannot be stored as we can do with manufactured products, because services are produced and consumed simultaneously. As an example, in a hotel, a room that was not occupied yesterday, cannot be sold anymore as time does not goes backwards. For Cook (2002) the increased global competition has made many organisations realised that they cannot compete only in price. Therefore companies are developing their own strategy in providing superior customer care to differentiate their products and services. â€Å"Surveys suggest that service-driven companies can charge up to 9 per cent more for the products and services they provide. They grow twice as fast as the average company and have the potential to gain up to 6 per cent market share† (Cook, 2002, p.1). 2.3 Defining customer satisfaction and quality service Peter Drucker cited by Cook (2002, p.1), once said: â€Å"There is only one valid definition of business purpose: to create a customer () an organisation’s ability to remain in business is a function of its competitiveness and its ability to win customers from the competition. The customer is the foundation of the business and keeps it in existence†. Customer satisfaction relates to the personal opinion and result of customers’ assessment of a service based on a comparison of their expectations and actual perceptions of the service delivered (Clark, G.; and Johnston, R., 2005). According to Lancaster et al (2002) from the customer’s point of view, service is judged by the mix of customers’ previous experiences and their perception of the outcome of the service. The service experience is the customer’s direct experience of the service process and concerns the way the customer is dealt with by the service provider. The result for the customer of the service delivered is described by the term service outcome. (Lancaster, G. et al, 2002). â€Å"Service quality is more often used to mean different things. Some managers use the term to mean how the customer is treated. This is perhaps more accurately called quality of service, as opposed to service quality, which can mean the entirety of outcome and experience† (Clark, G.; and Johnston, R., 2005, p.108). Van Looy (et al, 2003) differentiates service quality and customer satisfaction stating that â€Å"service quality is a form of attitude representing a long-run, overall evaluation, whereas satisfaction represents a more short-term, transaction-specific judgement. The level of customer satisfaction is the result of a customer’s comparison of the service quality expected in a given service encounter with perceived service quality. This also means that satisfaction assessments require customer experience while quality does not â€Å"(p.124). 2.4 Benefits of service quality Kotler (1996) has listed many benefits that an organisation enjoys as a prize for delivering service quality. As listed bellow: Retaining customers – high quality builds loyal customers and creates positive word of mouth. Avoidance of price competition – â€Å"the PIMS data show that firms in the top third in quality could charge 5% to 6% higher than those in the bottom third. High quality can help to avoid price competition and help to maximise potential revenue† (p.363). Retention of good employees – employees appreciate working in operations that are well managed and produce quality services and products. When an organisation operates in high quality, it decreases turn over rates, hence, retaining good employees. Additionally, recruiting is easier and training costs are reduced. Reduction of costs – which are divided in three categories of costs: Internal costs are those associated with correcting problems discovered by the firm before the product reaches the costumers; External costs – are associated with errors that the costumers experience; Quality system costs – are costs viewed as investments in the future of the company to ensure that customers return. (Kotler, 1996) 2.5 Benefits of a customer-centred organisation An excellent service provides many benefits to an organisation, Cook (2002) has listed what some of the best-practice organisations have gain on focusing on the customer. â€Å"Differentiate itself from the competition; improve its image in the eyes of the customer; minimise price sensitivity; improve profitability; increase customer satisfaction and retention; achieve a maximum number of advocates for the company; enhance its reputation; ensure products and services are delivered ‘right first time’; improve staff morale; increase employee satisfaction and retention; increase productivity; reduce costs; encourage employee participation; create a reputation for being a caring, customer-oriented company; foster internal customer/supplier relationships; bring about continuous improvements to the operation of the company† ( p.24). 2.6 Importance of customer relationship management (CRM) Customers perceive service quality through everyday aspect of their contact with the company. In improving the quality of its service therefore an organisation needs to develop a strategy bearing in mind all aspects of the relationship with its clients. (Cook, 2002) Customers often do not perceive the service they receive from an organisation as a complete entity. Attention to detail is a key tool of the organisation’s relationship with the customer â€Å"such as an incorrectly addressed letter, a lengthy delay in receiving an e-mail response, a service which turns out to be different to how it was originally advertised, which forms customers’ impressions† (Cook, 2002, p.24). CRM involves managing the customer relationship across all its interfaces with the company as one entire process. A CRM system can help identify sales prospects from existing or potential customer databases. It also can assist with all aspects of the sale and service being provided, eg offering online access to order status and a single view of the customer status when the sale is complete. It can collect information about the customer and the queries that he or she made. It can also monitor customer-usage patterns, so abnormal patterns or a reduction in use can be identified. Hotels systems can store any peculiarity or requests made by guests, such as preferences for smoking or non-smoking rooms, higher or lower floors etc. (Cook, 2002 and Lancaster et al, 2002). Ernst and Young found elements that are essentially important for organisations to build a CRM framework. First basic step is to accumulate systematic knowledge of its markets and costumers. This could be made by complex IT systems, that are designed to store, manager and analyse informations about customer’s value. With this tool organisations can access business informations regard theier costumers, and also predict consumer’s behaviour. Enabling organisations to share informations across departments, and automatically update this informations by tracking loyalty cards costumers, any time they make a purchase or request the company’s service,for example (Cook, 2002). CRM systems helps companies to target theier segments, and also to analyse the information flow throughout the company. Making easier to identify its costumers needs, and more importantly, shows the best way to approach its most profitable clients. The more information a company holds about its costumer’s the best is the knowledge built, as it helps refines consumer segmentation and individual needs. In this particular case, data about costumers life-style is very helpful (Cook, 2002). Selling involves taking a proactive approach towards costumers, rather than a reactive. For instance, hotels can treat their most profitable business guests with special offers on their holidays. To finish the CRM framework, is essential to hold a service, providing an after-sales which should be measured to individual needs (Cook, 2002). 2.7 Importance of performance measurement and a programme development â€Å"You cannot manage what you can not measure† (Kelvin Anon, www.dti.gov.uk/quality/performance). According to Cook (2002) and Williams (2002) managers braves the way through customer satisfaction measurement. A measurement programme starts with a clear definition of objectives, budget and timeline. Moreover, for this task to be performed and achieve its highest level of success, it is necessary the full commitment and willingness of top management to act on the results founded. A starting point should be to decide which part of customer satisfaction the company is most concerned to measure. Is also important to be aware that expectations and satisfaction levels can widely vary between the costumers of a company, therefore, the need to identify market segments. For example, the different needs of a businesses and tourists guest of a hotel. (Cook, 2002; Laws, 2004; Williams, 2002) According to Clark and Johnston (2005) performance measurement is costly. Few organisations have calculated just how much time and energy they spend on measuring their performance and its value for money relation. Two useful tests of a performance measure are, first, what is its purpose and, second, what systems are in place to support or achieve that purpose. There are four main purposes or reasons to take measurement: communication, motivation, control and improvement within the company. In the endless improvement process, measuring performance is an important task in order to identify and track progress in harmony with the organisations’ goals; identify areas and opportunities for improvement; and compare performance with internal and external standards (www.dti.gov.uk/quality/performance). According to the Department of Trade and Industry (DTI) the main reasons of measuring performance is: †¢ â€Å"To ensure customer requirements have been met †¢ To be able to set sensible objectives and comply with them †¢ To provide standards for establishing comparisons †¢ To provide visibility and a â€Å"scoreboard† for people to monitor their own performance level †¢ To highlight quality problems and determine areas for priority attention †¢ To provide feedback for driving the improvement effort† (retrieved from ). 2.8 The SERVQUAL model The Servqual model was developed by Parasuraman, Zeithaml and Berry, and has been one of the most popular service quality measurement instrument since then. The model was designed to measure those components of service that generate satisfaction within five dimensions (Ryan and Saleh,1991; Lee et al, 2004; Johns et al, 2004). Originally the researchers conducted a focus group studies with service providers and costumers, and as a result they came up with a list of ten determinants or dimensions of service quality which are: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer and tangibles, (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) which will be briefly explained bellow: Tangibles – the appearance of physical facilities, the personnel, the tools or equipment used to provide the service and communication material. Guests of a hotel look for details of the building, web sites and reservation systems for instance. Reliability – consistency of performance and dependability. This means that the firm performs the service correctly the first time and that the firm honours its promises. Responsiveness – the willingness to help the customers and to provide prompt service. Competence – knowledge, ability and possession of the right skills to perform the job. Access – degree of approachability of service providers. Courtesy – use of good manners, politeness, friendliness, smiling during the service. Communication – ability to successfully communicate with costumers, keep them informed. Understanding – degree of interest of employees to know the costumers needs and wants. Assurance – knowledge and courtesy of employees and their ability to inspire trust and confidence. Empathy – caring, individualized attention to customers. (Van Looy, B et al, 2003; Parasuraman et al, 1990; Ryan and Saleh,1991) Later on, in another attempt of improving their models they found a high degree of correlation between communication, competence, courtesy, credibility and security. They therefore, merged them into one dimension, which they called assurance. Similarly they found a high correlation between access and understanding which they merged into empathy. Thus compacting the dimensions of service quality in five which are: tangibles, reliability, responsiveness, assurance and empathy (Van Looy, B et al, 2003; Dabholkar et al 2000). The diagram bellow was originally made to suit the quality service measurement and customer satisfaction of a car repair garage. Which can be easily adapted to any other service organisation, surely including any hotels to be more precise. Source: http://www.emeraldinsight.com/fig/0240221006003.png The SERVQUAL identified gaps between clients and organisations perceptions of attributes of service perceived, and also between customers expectations and perceptions of the service actually delivered (Ryan and Saleh,1991; Landrigan, 1999). This has led to the well known and widely used 5 gaps of service quality: Gap 1: Consumer expectations versus management perception CEO’s and managers often fail to realise what consumers expect of a service and which features needs to be pursued to deliver a high-quality service. When management does not understand what their customers want, a gap 1 exists. Very often, organisations research to find out what are their markets needs and wants, but later can occur a divergence. When customer needs change but the product remains the same, gap 1 increases, as the service becomes less attractive (Parasuraman etal, 1991). Gap 2: Management perception versus service quality specifications A gap 2 situation occurs when managers know their customers needs, but do not deliver it, either for unwillingness or incapability. Reasons for gap 2 to happen could be inadequate commitment to service quality, absence of goal setting, lack of perception of feasibility, and lack of standardization. The pursuit to achieve short-term profits refrain companies to invest in equipments and people, causing service quality issues (Parasuraman etal, 1991). Gap3: Service quality specifications versus service delivery Gap 3 occurs when employees are unwilling or unable to deliver the appropriate service that was specified by management. In this case managers understand their customers needs, develop strategies and tasks to fulfil these needs, but in the moment of employee and costumer interaction it does not occur (Parasuraman etal, 1991). Gap 3 could be minimised through training and development, rewarding and internal marketing campaigns. Human resources department plays a major role in this task. Gap 4: Service delivery versus external communications A company creates gap 4 when it promises more than it can deliver, creating disappointments to its customers. Good sense and ethic when advertising should be primordial in any circumstances (Parasuraman etal, 1991). The image of a company that cheats or lies to its costumers leads to an extremely bad reputation and negative word of mouth. Gap 5: Expected service versus perceived service Last but not least, gap 5 is a function of the other gaps. It pictures the difference among expected quality and perceived quality. If any of the other 4 gaps increases or decreases, gap 5 will follow it (Parasuraman etal, 1991). The diagram below represents the 5 gaps model of quality service. Source: http://www.kmfadvance.com/mind_the_gap_files/image004.jpg 2.9 Criticisms and limitations of the SERVQUAL According to Oh (1997) the use of the difference of the scores contributes to discrepancies and errors, affecting the reliability and valididyt of the model. Such finding suggests that caution has to be taken when using the scores, and that additional work is essential to the development of measures of assessing the quality of services. In addition it is also noticeable that the SERVQUAL lacks in ties with statistics, economics and even psychology theories, therefore many arguments has formed a doubtful opinion regards its relaibility. 2.10 Other service quality and costumer satisfaction measurement models Obviously, the SERVQUAL is not the only model available to measure service quality and costumer satisfaction. Indeed, there is a range of variety of models out there. Some of them will be quickly explained in this study. 2.10.1 The expectancy-disconfirmation model (EDM) The principle of expectancy theory was early stated by Lewin (1938) who hypothesized that individuals make decisions on the most appropriate action to take based on their expectations of the outcomes of that action. After being reviewed by many researchers, the model developed to two processes: the formation of expectations and the disconfirmation/ confirmation of the expectations through performance evaluations (Oh, 1997; available at http://proquest.umi.com.newdc.oum.edu.my/pqdweb). Chapter III Research Methodology 3.1 Research Process This research will include several components of different character, promoting the approach to new problems, providing bibliographic survey, offering a selection of methodologies, as well as providing a critical analysis of results (Saunders, et al, 2003). In order for the aims of this research to be met it is necessary to gain an understanding of the practices of the service quality and customer satisfaction assessments applied within The Crowne Plaza Hotel (please see appendix II). This data will be given by one manager of the company, and will be adapted for a experimental application of the SERVQUAL model. The research and development will comprise creative work undertaken on a systematic basis in order to build knowledge accumulation, including not only the practices of the service quality and customer satisfaction assessments model researched but how would be applied within The Crowne Plaza Hotel in order to achieve competitive advantage and business success. The purpose of the literature review is theoretically discussing ideas that exist about the given topic. Data sources, such as library catalogues and indexes will be scanned for secondary data. This will produce a list of journals and newspaper articles, published books and internet sources (Saunders, et al, 2003). The secondary research will be complemented by primary research, through questionnaires and interviews with stakeholders of the organization in question. In case of interviews and questionnaires, the manager cooperating with this research will be fully informed about the, methods and intended possible uses of the research, what their participation in the project entails, the strict confidentiality, and academic purpose only (Bell, 1999). The project proposes to use analytical and theoretical framework, which extends descriptive research, making suggestions of why and how practices of the service quality and customer satisfaction assessments plays an important role in the competitive advantage, profitability and success of the firm (Yin, 2003). A method of both, quantitative and qualitative approach will be applied in order to examine values, attitudes and perceptions aspects of the research subject. (Flick, 2003) The departure point will be deductive, with the observation of the SERVQUAL model, fed by the organisation information’s collected where conclusions will be critically evaluated against facts. Moreover, a phenomenological philosophy will be implemented, applying a case study approach, since this kind of research methodology is ideally suited to investigate the insights into the service quality and customer satisfaction in theory and practice (Yin, 2003). The data collected for this research was taken between the months of January, February and March 2009, it consists of 380 customer satisfaction surveys, applied by the hotel. This surveys were answered by guests, either on the check-out or on the hotel web site, after their stay in the hotel. At the time of the data collection, was common practice of the hotel’s front desk manager to put the weekly result together and send to all hotel departments, so they could have a picture of the guest’s feedback. 3.2 Research Theories In order to achieve this reaserch objectives it will be necessary to apply many reaserch theories that reinforces the reliability of it. The theories used in this research will be briefly explained one by one. 3.2.1 Case study According to Robson (2002:178) cited by Saunders et al, 2003, p.93), a case study is â€Å"a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evedence†. A case study approach is recommended to those reasearchs that essentially aims to explain ‘why’, ‘how’ such phenomenon occurs, as well as in research that includes surveys (Saunders, 2003; Yin,2003). A case study is also a scientific way of explore an existing theory, which is one of the main objectives of this research, as is analysing the use of SERVQUAL (Saunders, 2003). 3.2.2 Descriptive studies In order to have a clear picture of the scenario studied is essentially important to describe with accuration every data collected. As cited by Saunders et al (2003, p.97), Robson, 2002:59 describes the objective of descriptive research as ‘ to portray an accurate profile of persons, events or situations’. 3.2.3 Deductive method Complementing the case study approach, a deductive method could be simply described as way of what we would think of a scientific research or theory, moving from theory to practice (Bailey, 2006; Cottrell, 2005; Saunders, 2003). â€Å"It involves the development of a theory that is subjected to a rigorous test† (Saunders, 2003, p. 86). The deductive method has many characteristics. â€Å"First, there is the search to explain casual relationships between variables† (Saunders, 2003, p. 86). Then, hypothesis development, followed by hypothesis testing, normally using quantitative data, but could also being backed up by qualitative data. 3.2.4 Quantitative data On the other hand quantitative research apply measurements and normally considered as better than qualitative research. Ghauri and Gronhaug (2005; p. 109) explains that â€Å"the difference between quantitative and qualitative methods and approach is not just a question of quantification, but also a reflection of different perspectives on knowledge and research objectives†. A method of qualitative approach will be applied in order to examine values, attitudes, and perceptions aspects of the research subject. 3.2.5 Qualitative data A narrative analysis process was implemented to interpret the data that were collected from the research portion of this project. Thomas (2003; p.1) argues that â€Å"Qualitative methods involves a researcher describing kinds of characteristics of people and events without comparing events in terms of measurements or amounts† 3.3 Research Design The survey consists of a questionnaire of 44 questions (picked by the hotel’s own customer satisfaction survey) related to the quality of the service provided by the hotel. The guests (sample = 380) will answer the questions according to their perception of the service received, whilst the managers (sample = 4) will answer the questions according to what they expect the overall of the guests to answer. The answers will range between score 1 to score 5. Being 1 the best degree of satisfaction and 5 the worst degree of dissatisfaction, (Saleh and Ryan, 1991) having some variations as follows: Score 1: very satisfied / definitely would / much more than you paid / much better / excellent / yes Score 2: somewhat satisfied / probably would / somewhat more than you paid / somewhat better / very good Score 3: neither / might or might not / about what you paid / about the same / good Score 4: somewhat dissatisfied / probably would not / somewhat lees than you

Evaluation Of Hrm Policies In Nestle Management Essay

Evaluation Of Hrm Policies In Nestle Management Essay Bob Kane, John Crawford and David Grant (1999) research discussed the effectiveness of HRM policies in Australian and New Zealand organizations. The authors had highlighted that HRM effectiveness could be achieved through soft and hard approaches. They had also identified the barriers to effective implementation of HRM policies. The first barriers as identified in the research paper were the low priority of top management towards HRM issues as they focused towards power and control. Second barrier as explained was the competencies of HR personnel to implement a credible HRM programs within the organization. Third barrier concerned the lack of knowledge about the long term impact of effective HRM programs. This study specifically focused on problems or barriers which had a negative impact on HRM effectiveness. For that purpose, researchers gathered responses from managers, employees and HR staff. They measured respondents perception of both hard and soft approaches which had been practiced in various organization. Researchers floated questioners that targeted managers, employees and HR personnel of organization of Australia , New Zealand, USA, UK and Canada. The questionnaire consisted of 42 questions. A total 702 respondents completed the questionnaires. The result indicated that employees and managers were not satisfied with HR personnel as their policies were not effective in order to improve the employee motivation, satisfaction and commitment. The research concludes that HRM polices can be achieved through soft and hard HRM approaches however companies have failed to successfully implement HRM policies due to lack of the support of companys top level management and inadequate and incompetent HRM staff. The researchers defined soft HRM approach as employee motivation, commitment and development. This approach plays a significant role in a business to create a work environment where employees work efficiently for the company. Employees can enhance their skills through trainings and commitment which creates a competent workforce. This workforce allows the companies to enjoy competitive advantage over its rivals. Another approach as identified in the paper is HARD HRM approach also known as strategic HRM. This approach of the view that HRM effectiveness can be achieved through implementation of cost reducing measures in human resources. Tanuja Agarwala (2002) in his research paper the author had studied the factors which had changed the trends in Human Resource Practices. Rapid change in technology had brought innovation in the human resource activities (r recruitment, selection, training, appraisals etc). The study also highlighted organizational effects and employees outcomes which were directly inclined to creative HR practices. This study focused on the growing trends of Human Resource Management. It also focused on outcomes by appling innovative HR policies within the organization. Tanuja Agarwala (2002) conducted in-depth interviews to understand the emerging trends of innovation in human resource management. A total of 21 in-depth interviews were conducted with private sector organization and public sector organizations. The entire experts believed that innovation in HRM had brought positive changes in organizations as it increased the skills and commitment of the employees. He also stated that people were organizations precious assets and innovative human resource policies would increase the skills of the employees. The variables and their relationships deduced were most significant for my research. Innovative HR practices (recruitment, selection, testing, training, appraisals) directly influences the overall organizational climate. It also has an impact on employees performance, attitude and his knowledge and skills. These practices also had an impact on the organizational productivity, employee turnover and financial performance. R.S. Dwivedi (2001) study highlighted the key competencies required for selection and training and development of key managers. The three competencies as indentified by the author were interpersonal communication skills, leadership skills and motivational skills. The research was conducted on 106 successful managers of Indian organization. This study focused to identify the interpersonal communication styles of successful managers, transformational or transactional leadership among managers and the factors which motivate people at work. It also intended to identify the key competencies required to make HRM decision in Indian organizations. The author deduced that consultative communication style was considered more feasible then despotic style. Moreover mostly managers in the sample were equipped with transformational leadership which enables the strengthening of the organization. The author also identifies that employees could be motivated by satisfying their needs and wants. Thus these competencies as identified in the paper were significant for my research and they can be sued as a key to make critical HR decisions. Marcel Van Marrewijk and Jonna Timmers(2003) in addition to human resource management introduced a new approach called Human capital management. Human capital management stressed on alignment between individual and organization as it is the key to successful management. The authors highlight that human resource management only deals with recruitment, retention and rousing the workforce. However it doesnt play an important role in order to bring motivation and commitment among the employees. On the other hand, the new approach ( HCM) embodied the features of human resource management and provides undiminished values. Human capital management aligned with employees in three domains: Human operations, corporate identity and values and human development with the goals of dedication, commitment and motivation respectively. Therefore human capital management outshines human resource management in every possible way. Mark A. Youndt, Scott A. Snell, James W. Dean, Jr. and David P. Lepak (Aug.1996) research examined two alternative views-universal and contingency- of the human resources (HR) in manufacturing industry. This study was conducted to study determine the degree to which Human resource management policies have an impact on firms overall performance. It also focused to analyze the relationship between human resource management and operational performance of the firm. It also studied the linkages between manufacturing strategies and HR policies and its impact on the overall performance of the firm. It was revealed from the research that contingency approach (human resource management on the basis of cost, quality and flexibility) was better than universal approach. Shaping HR practices according to the organizational strategies was the key for competitive advantage. The results suggested that HR practices intended to foster employees and create an egalitarian work environment positively influence operational performance when matched with quality manufacturing strategies. Thus the notion of HR practices on the basis of cost, quality and flexibility holds significant value for my research. Marianne J. Koch and Rita Gunther McGrath. (1996) deduced that positive and significant effects of labor productivity are found for organizations that utilize more sophisticated human resource planning, recruitment, and selection strategies. The hypothesis of this study were overall human resource sophistication and investment in hiring, human resource planning and employee development will have a positive effect on labor productivity. In this study, labor productivity being the dependent variable was being influenced by independent variables such as investments in human resource planning, hiring and training. Results had shown that investment in human resource management do pay off as workforce becomes more productive and works efficiently to attain the goals of the organization. Research indicated that firms that systematically train and develop their workers are more likely to enjoy the rewards of a more productive workforce than those that do not. Robert Roepke, Ritu Agarwal, Thomas W. Ferratt (2000) case study illustrated how 3M had been able to foster the competencies of IT professionals which in turn turned out to be a competitive advantage for the firm. 3M capitalized its sources and introduced innovative human resource management policies within the organization. The finding of this case study also indicated that investment in improving the leadership capabilities of the employees was essential for success of the firm. Those capabilities can be fostered through trainings and development of the employees, assistance, flexibility and interpersonal understandings. W. Hatch and Jeffrey H. Dyer (2004) also emphasized on investment in human capital in order to have a competitive advantage. It would increase the overall productivity and performance of the firms. The authors also stressed the importance of learning as it was necessary to foster the skills of employees. The hypothesis of this research were: screening tests improve learning through performance, higher human resource education increase learning, and greater investment in human resource field also increases performance. The data was collected through questionnaires and follow-up interviews in different semi-conductors industries of USA, Asia and Europe. Regression analysis was conducted on the data for findings. Results suggested that firms which had practiced proper selection, development and deployment of the employees enjoyed greater productivity and higher returns. Tests like screening tests in the selection process would enable the organization to have a skilled pool of employees as compared to the competitors. Development of the individual skills is essential in manufacturing industry as it enables the firms to achieve the excellence in operations of the firm. Michael Haid (2008) stated that proper implementation of HR practices would increase the commitment and retention of key individuals of organization. Certain HR practices such as manager support, social responsibility and performance appraisal practices would have a positive impact on employees morale as his satisfaction and overall motivation level increased. Michael Haid laid heavy emphasis on managers skills as it was necessary to increase the motivation and commitment level of the employees working under them. Trainings from mentors and coaches would enable employees to foster their competencies and allow the organization to enjoy competitive advantage. The author also stated that organization should be socially responsible as it was necessary for employees determination and commitment towards organization goals. By practicing these policies, employees would be satisfied, committed and found pride in their organization. The employers on the other hand would be able to retain their key employees. Geetanjali Pandit Gupta (2009) in his article discussed his point of view on the importance of HR practices as they played an important role in any industry particularly services. In his article, writer gave suggestion and advisees to Cineplex in order to improve its services in India. He believed that effective HR policies are critical in service sector as there was a direct interaction between customers and employees on multiple touch points. Satisfying the customers were necessary for the company. Choosing the right personnel for the job was a main duty of HR personnel in any organization. Careful recruitment and selection process were required to recruit a skilled workforce. Geetanjali Pandit Gupta (2009) also believed that training of the employees was necessary to improve the skills of the employees working in any service organization. Objectives The basic purpose of this study is to analyze and evaluate the HR programs of Nestle. To identify the strengths and weaknesses of HR programs in Nestle. To study the effectivenss of motivational techniques being used by managers. To recommend innovative HR practices in order to increase the competencies, skills and motivational level of employees. To study the impact of employees competencies on firms performance. THEORETICAL FRAMEWORK Hypothesis Testing Employee motivation H0: there is no significant impact of employee motivation on HRM programs H1: there is significant impact of employee motivation on HRM programs Employees commitment H0: there is no significant impact of employees commitment on HRM programs H1: there is significant impact of employees commitment on HRM programs Employee development H0: there is no significant impact of employee development on HRM programs H1: there is significant impact of employee development on HRM programs Technology H0: there is no significant impact of technology on HRM programs H1: there is significant impact of technology on HRM programs organizational productivity H0: there is no significant impact of organizational productivity on HRM programs H1: there is significant impact of organizational productivity on HRM programs employee turnover H0: there is no significant impact of employee turnover on HRM programs H1: there is significant impact of employee turnover on HRM programs financial performance H0: there is no significant impact of financial performance on HRM programs H1: there is significant impact of financial performance on HRM programs leadership skills H0: there is no significant impact of leadership skills on HRM programs H1: there is significant impact of leadership skills on HRM programs

Graduation Speech :: Graduation Speech, Commencement Address

When I first began considering a graduation speech, my initial impulse was to spend this time discussing the advent of college preparation at Ridgemont, and the rise of empty values. I thought it would be a good chance to point out the fact that the quest for college admission has ground some of the best people I know into pulp, and that for the most part it seems as though both their parents, and to a large extent the school, seem afraid to confront that system for what it is. I wanted to speak to the changes happening here at Ridgemont, that the focus of the school is being shifted from educating for character to trying to improve the efficiency with which Ridgemont can heard students into the Ivy League. It seemed to me that my entire fourteen years here had led to the final understanding that a lot of what we have been told to strive for amounts to little more than bowing down before Mammon. But, upon reflection, I realized that I would not be doing justice to the school and the class I love if I spent my time up here attacking the parents and the school in that manner. I really owe the school and my peers a lot more than that. If it were not for my Ridgemont education, I probably would never have seen the system for what it is. Ridgemont taught me to despise that system by showing me a better way to do things; by showing me that education, success, and happiness do not have to come at the expense of others, that I could go further if I learned to help, and to be helped, by those around me, rather than compete against them. Ridgemont's emphasis on process versus product will stay with me for the rest of my life. So when I sat down and tried to pull together what it was about Ridgemont that made it an interesting and wonderful place to attend school, I remembered that my friend Larry had once pointed out to me the distinction between the two types of people that you can associate with. There are those that care about your soul, and those that don't. I think that the Ridgemont education, for many in my class, was one that cared for our souls, and this is what distinguishes it from other schools, and this is why it is so unlike the real world in here.

Early Understanding of HIV and Syphilis :: essays research papers fc

In the last few weeks of class we have looked at several different cases of disease outbreaks throughout the world, and how different cultures have diverse understandings of these outbreaks. Of the sicknesses we have studied, I feel that the HIV and Syphilis outbreaks stand apart from the others because of their massive infections in many different cultures and parts of the world, and also due to the fact that the diseases cannot be cured, along with the unfortunately high rate of death among its victims.   Ã‚  Ã‚  Ã‚  Ã‚  When the outbreaks of syphilis and HIV first became present, science at the time was unable to come up with a clear cause for the sicknesses. People witnessing the diseases, however, were quick to assign their own cause. Unfortunately, most put the blame on African Americans. While Syphilis may have been introduced to the western worlds by slave trade according to Philip D. Curtin, inefficient evidence is present to call this fact, and most blame when these diseases first became present were completely racially based. This blind prejudice led to an extremely limited understanding of the diseases. Many felt the diseases were so racially specific that whites were completely immune to the epidemics. Some even felt that Blacks became infected because they were inferior unchristian beings, and as being so, they were being punished by god. (PBS/NOVA â€Å"The Deadly Deception†) As an effect of this logic, many more fell victim to the sicknesses, refusing treatmen t due to these beliefs. This racial attitude of the time also severely hindered the discovery of the real causes of HIV and Syphilis.   Ã‚  Ã‚  Ã‚  Ã‚  Many years later, and after a very large progression in medical research, scientists have finally came to a clear agreement on the causes of these diseases. It is now obvious that there are three main causes to an HIV or Syphilis infection. A victim may become infected through blood transfusions or sexual contact with another, or the diseases may be carried from a mother to her child. These conclusions vary greatly from what was first thought as the cause of the epidemics. The incorrect causes initially found by those in early times most likely were based on a lack of knowledge in the areas of sanitary blood transfusions, safe sex, and the extremely racist attitude of the time. This lack of knowledge can be seen in what the diseases first became known as: â€Å"Bad Blood† (CDC).

Lord Of The Flies: Chapter 8 Notes :: essays research papers

1. The conch being inexpertly blown and the fact that Piggy has only one lens shows that society has begun to function poorly. The reason for this decline in society is Jack. Jack broke Piggy's lens, and now Jack who has power, represented by the conch, does not know how to blow it properly. This tells us that Jack is an inept leader who misuses power and destroys knowledge. To become an expert at something, such as blowing a conch or leading a society takes time, so this is also significant because it shows that Jack has just recently come to power. Because the conch and Piggy's glasses are crippled, knowledge and power are crippled, but not yet fully eliminated.2. When Simon says, " I think we ought to climb the mountain.", he means that society should conquer its fears and reclaim the island. When the boys first founded society, one of the first things that they did was to climb the mountain and attain knowledge of the island. It is important to note that knowledge was a priority for this early society. Climbing the mountain was also a task undertaken with great enthusiasm and the offering of hope for what their society could be. This was the peak of their civilization. Ever since then their society has been "declining" or going "downhill", so the mountain represents the "peak" or "height" of their civilization. As the boys' civilization fell apart, it became primitive and controlled increasingly by evil elements (Jack). Because of this the boys began to fear a beast. The beast was a symbol of this demise and an obstacle to the return of glory. I say that the beast is an obstacle because they now fear climbing the mountain, a mountain that symbolizes the peak of society. When Simon says that they should climb the mountain, he is also saying that the boys should abandon their primitive fears and return to previous glory.3. The new fire is symbolic because it is Piggy's attempt to rebuild society. Piggy believes that without Jack (evil), he himself (knowledge and civility) can prosper. The first step that Piggy decides to take is the construction of a new fire. The fire represents the domination and manipulation of nature and therefore the return to civility. It is important to note that the fire is in a new location. The new fire represents a new society engineered by Piggy and founded upon knowledge. Lord Of The Flies: Chapter 8 Notes :: essays research papers 1. The conch being inexpertly blown and the fact that Piggy has only one lens shows that society has begun to function poorly. The reason for this decline in society is Jack. Jack broke Piggy's lens, and now Jack who has power, represented by the conch, does not know how to blow it properly. This tells us that Jack is an inept leader who misuses power and destroys knowledge. To become an expert at something, such as blowing a conch or leading a society takes time, so this is also significant because it shows that Jack has just recently come to power. Because the conch and Piggy's glasses are crippled, knowledge and power are crippled, but not yet fully eliminated.2. When Simon says, " I think we ought to climb the mountain.", he means that society should conquer its fears and reclaim the island. When the boys first founded society, one of the first things that they did was to climb the mountain and attain knowledge of the island. It is important to note that knowledge was a priority for this early society. Climbing the mountain was also a task undertaken with great enthusiasm and the offering of hope for what their society could be. This was the peak of their civilization. Ever since then their society has been "declining" or going "downhill", so the mountain represents the "peak" or "height" of their civilization. As the boys' civilization fell apart, it became primitive and controlled increasingly by evil elements (Jack). Because of this the boys began to fear a beast. The beast was a symbol of this demise and an obstacle to the return of glory. I say that the beast is an obstacle because they now fear climbing the mountain, a mountain that symbolizes the peak of society. When Simon says that they should climb the mountain, he is also saying that the boys should abandon their primitive fears and return to previous glory.3. The new fire is symbolic because it is Piggy's attempt to rebuild society. Piggy believes that without Jack (evil), he himself (knowledge and civility) can prosper. The first step that Piggy decides to take is the construction of a new fire. The fire represents the domination and manipulation of nature and therefore the return to civility. It is important to note that the fire is in a new location. The new fire represents a new society engineered by Piggy and founded upon knowledge.

Effects of Polio on Society Essay

Polio had existed in society for a long time in history, although not as big a problem in history as in the 20th century, when greater emphasis was put on sanitation and children stopped getting the disease as babies. The effects of this disease on society were great. People feared that tomorrow they or their family members or friends would catch polio. Although polio has been significantly reduced in numbers, it still continues to exist in Africa and some parts of Asia. People are still infected with polio, and there are still global initiatives for the eradication of polio. These initiatives are not very effective as recently, in Africa there has been a controversy in Kano, Nigeria, chaired by the Emir of Kano, Alhaji Ado Bayero and Governor Ibrahim Shekarau, who have put a lid on the federal government’s hope to get the people of Kano to use polio vaccines from the federal government. The reason they are against the polio vaccine is that there were many contaminated vaccine being supplied there, and they do not want to risk the lives of several Kano children. Official Ezio Gianni Murzi said that while polio had nearly been eradicated globally, Nigeria had recorded an increase of 40% in cases so far in 2003 compared to 2002. Whatever the reason for this may be, at least three northern states have opposed the preventive measures against polio after Islamic leaders blamed the vaccines on being a secret US plan to depopulate Africa. Situations such as these are defering the goal of global polio eradication. The eradication is still close to being achieved, as WHO estimates that new worldwide polio cases fell to just 3,200 in 1998. Reported cases of the disease have dropped by 90% in the last decade after the WHO launched a worldwide vaccination campaign. The number of people suffering from polio around the world is now estimated to be around 35,000. But as many as 20 million people in the world are still suffering from the effects of the poliomyelitis virus. This virus causes paralysis and difficulties walking and breathing. But it can easily be eradicated because it is difficult to catch. It is only spread person to person contact and cannot live long outside the body. The only WHO region which is polio free are the Americas. But Europe, the Western Pacific and parts of North and Southern Africa have had no recent cases. They will be considered free of the disease only when they have gone three consecutive years with no reported cases. Polio can easily be rid of as a result of the cheapness and effectiveness of the vaccine. It costs only $3 per child. However, problems such as war and basic health infrastructure make it difficult to carry out immunisation programs in some countries. In August 1998, for example, the Democratic Republic of Congo was forced to suspend its programme because of the ongoing fighting. But in other countries affected by war temporary ceasefires have been held so health workers can carry out immunisation programmes. Another problem, apparently in South Asia, is the population problem, as health workers find it difficult to contain the population.

Primary Data Essay

Primary data is that which is obtained by soliciting direct responses from individuals being queried. These individuals are reporting their personal experience, attitudes and feelings. Primary data is the outcome of interviewing and survey methods. Secondary data is information obtained by reviewing the existing academic literature consisting of studies that have been done, analyzing what is â€Å"out there†, and determining trends or patterns of evidence from many studies. Problems with primary data include the possibility that the research design is limited in the fact that it is given to a strictly controlled, limited group, which may not be representative of the overall population. The results from a convenience sample cannot be generalized to the population. Factors including but not limited to gender, nationality, economic situation and others could be expected to impact the effectiveness of application of results to ‘real world’ situations. Sometimes researchers choose to disregard their own interpretations and to accept those of respondents at face value. This can be cozy but may lead to collusion: Atkinson has warned of the dangers of â€Å"romanticizing† respondents’ accounts (Anastas, 12004). Problems with secondary data is that the researcher was not personally involved and does not know how relatively rigorously the research was done; this may compromise his/her observations and analysis. Different methods used in qualitative research furnish parallel datasets, each affording only a partial view of the whole picture; this is a natural feature of qualitative research, in that it acknowledges that there are different views of reality which have equal validity. Therefore, it is effective to look for results that are comparable rather than in agreement, and which may be mutually supportive.