Understanding the implications of the Service-Profit Chain for service management.
Appreciate that the marketing, operations, and human resource management functions need to be closely integrated in service businesses, and understand how this can be achieved.
Know the characteristics of world-class service organizations.
Service Profit Chain
Productivity and Output Quality
Marketing Function: To Target Specific Types of customers whom the firm is well equipped to serve
Operations Function: To create and deliver the specific service product to targeted customers
Human Resource Function: To recruit motivate frontline employees, service delivery team leaders and managers who can work well together.
Functional Silos: Where each function exists in isolation from the other, jealousy guarding it is independence
In this module, we discussed the various links in the service profit chain implications.
We have also explored the importance of integrating three main functions in any service organization and ways to reduce inter-functional conflicts.
And finally we initiated a discussion on creating a world-class service organization which is to be continued in the next module.
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