38 Quality Circles and Services

Dr. Puja Waalia Mann

 

1.0 Introduction

 

Understanding the Consumers needs is the initial point of the marketing process and the satisfaction of these needs seems to be the aim of all the marketing efforts. The consumer‟s needs can be satisfied only when Quality Services are delivered at a reasonable price to the target consumer. However, due to the intangible nature of the Services, it may not be easy to ensure consistent high quality standards in each service encounter. Moreover, it may also be a challenge to determine what consumers perceive to be a Quality Service. This knowledge will not only have to be made clear to the service personnel but also the design service and service delivery should be done in a fashion so as to uphold these quality parameters. In this module, you will learn the meaning of Quality for a service organization and how can a marketer ensure its delivery with the use of Quality Circles.

 

1.1. Learning Objectives

 

In this module, you will learn:

 

a)      Meaning of Quality

b)      Meaning of Service Quality

c)      Concept of Quality Circles

d)      Features and purpose of Quality Circles

e)      The Gap Model

 

Keywords: Service Quality, Quality Circles, Gap Model.

 

1.2 Meaning of Quality:

 

In a business organization, Quality refers to adherence to the highest standards of performance at every step of working and for each unit of production and distribution. Highest standards are usually the Industry benchmarks of performance and universally recognized. A consumer values good quality as much as the management which would like to maintain Quality and save the cost of wastage. Offering Quality goods and services are a strong Brand building technique which ensures a strong pool of loyal consumers.

 

1.3 Meaning of Service Quality:

 

Service Quality refers to the maintenance of certain parameters of service performance and delivery assured by the service marketer to earn itself a competitive edge in the perception of the target consumer. Prior to the formulation of a marketing strategy, it is important to set the internal quality standards keeping in mind the commonly accepted external industry standards of Quality. In defining the standards of Quality, it is significant to first define what Quality mean to an organization. For a Restaurant, Quality could mean delicious food, Quick service or an amicable ambience or all of the three aspects. The service firm needs to focus itself on the quantifiable measure of Quality which is most important for its target consumers and then initiate the process of ensuring the same in each of its service delivery. The International Organisation of Quality Standards (ISO) 9001:2000 defines Quality as “the characteristics of the service that bears upon its ability to meet customer requirements. Customers requirement could be of three types: those stated by the customer; those generally implied and; those obligatory on the part of service provider.” In the above example of a Restaurant, a customer may state that Quality means hygienic and good food; comfortable ambience with good lights and music and courteous service is implied and; it is obligatory on the part of the Restaurant to provide rate cards, bill of the purchase etc.

 

1.4 Goods Quality vs. Service Quality

 

The service elements of Quality are difficult to gauge as compared to elements of Quality of goods. Manufactured goods must offer a consistently high standard of conformance of the product to satisfy the needs of the consumers in the most reasonable way to remain competitive. On the other hand, while service must also offer high standards of performance but due to its intangible nature, observing or measuring the level of Quality may be difficult. Further, measurement of Quality standards may not be objectively perceived by all consumers in a uniform manner. For example, in the restaurant, for one consumer playing of retro music is considered as good while the other may perceive it to be boring and feel that new jazzy songs are more enjoyable. Hence Service Quality is a subjective thing and may be difficult to be offered and measured.

 

However, it does not mean that the service marketer should not gauge the Quality perception of the target consumers. It only means that he should be more alert and careful in assessing what exactly Quality would mean for the set of potential consumers. In doing so, it is important to understand the reason of purchase of a service by a consumer. This provides a clear idea of the desired level of service outcome sought by the consumer when he pays for it. This means the service provider must investigate as to what remains with a consumer after the service is consumed. Secondly, it must also be investigated as to what a consumer expects while purchasing and consuming a service. A marketer who exceeds these expectations of the consumers ensures that the consumer is delighted with the service. For example, for a Restaurant is it the tasty food that will be remembered by a consumer or the courteous staff service or may be the memory of add-on recreation facilities enjoyed by him on his visit at the restaurant will be remembered. An objective assessment like this is very useful in understanding the most important variables for which the service firm must go an extra mile to maintain highest standards of Quality.

 

1.4.1   Types of Service Quality

 

In 1982, Prof. Gronroos categorized Service Quality into two types: Technical Quality and Functional Quality. Here he described Technical Quality as the quality related to the outcome of the service whereas, the functional quality was described as the quality related to the way of delivering the service to the consumer. Based on this classification, in the year 1988, Prof Parauraman et al elaborated the functional quality by adding five more dimensions to it: Reliability- delivering consistently higher service quality; responsiveness- Being proactive in anticipating consumers unfulfilled needs and attempting to satisfy the same promptly; Assurance- ability of employees to instill trust and confidence in the minds of the customers; Empathy- Ability of the service employees to understand the needs of the consumers and care for them; tangibles- Physical evidence of the services, equipments and personnel‟s appearance and the promotional or communication material assuring service deliverables.

 

CHECK YOUR PROGRESS

 

1.      What is the meaning of Quality? Is it the same for all target consumers?

2.      Service Quality and Goods Quality refer to the same concept of Quality. Comment.

3.      Can there be different types of Service Quality? Name them.

4.      What is the meaning of offering Quality Services?

 

 

1.5 Introduction to Services Quality Circles

 

Now, we come to a very important question, Is offering Service Quality the responsibility of the service delivery executive alone? Is it only the marketing staff who should understand the meaning and importance of Service Quality and ensure its fair delivery? Thus, having understood the meaning of Service Quality for a consumer to be satisfied and for the marketer to grow in business volumes and profits, let us understand how can an organization offer the same to the potential consumers. For any service organization delivering Quality service is not an individual task. It is a group task in which personnel doing the same task must jointly prospect the way in which quality can be created, improved, maintained and delivered to the consumer. One such technique is called as Quality circle. A Quality Circle is a group of Service Personnel doing almost a similar kind of service creation and service delivery task, who interact on regular basis to identify, objectively understand and search for an optimum solution to the service process related problems. These Quality circles are often small in size and are led by a mutually accepted leader or a formally appointed supervisor with a clear vision of offering highest standards of Quality to the consumers in each interaction. The Quality circles analyse the problems and reach to a mutually agreeable solution. This solution is presented before the management for final approval of its implementation by the members. Often, in empowered organizations, the Quality circles implement the solutions at their own level wherever possible, resulting in higher level of motivation and improved employee productivity. In the West, the technique of Quality Circles was very commonly adopted during the period of 1980‟s. Even today, this concept is very frequently used to maintain high quality standards in the name of Kaizen groups or Workers participation schemes. The main purpose behind all these intervention is to offer Quality service by keeping the participation and morale of the employee high.

 

1.5.1 Historical background of Quality Circles

 

In the year 1985, Prof. Kaoru Ishikawa defined the term „Quality Circles‟ in his book “What is Total Quality Control? The Japanese Way”. Nippon Wireless and Teleraph Company was the first to use the concept of Quality Circle in the year 1962 in Japan. The Union of Japanese Scientists and Engineers (JUSE) had 36 companies registered with it. By the year 1978, there were about 1 million circles operating in Japan covering more than 10 million Japanese Workers, though only in the Manufacturing sector.

 

Gradually the Quality Circles came to be adopted and used in various countries. Like in many countries, in India also the Quality Circles are being implemented in manufacturing and Service sector alike. These are also being adopted in Educational sectors and „Quality Circle Forum of India‟. A number of tools may be used for the Quality Circles like the Ishikawa model (fishbone diagram or Cause and effect model)-this diagram represents the various hierarchies of factors causing a problem; The Pareto Chart- a statistical chart to highlight the frequency of occurring of various causes to a problem; and the PDCA-Deming Wheel- a wheel described by W. Edwards Deming “Plan, Do , Check and Act‟.

 

1.5.2 Features of Quality Circles:

 

i) Voluntary Groups- It is a volunteer group of workers of a service organization. The purpose of their meeting and discussing the various Service Quality aspects is to present to the management their ideas on how to improve the quality of service design and delivery.

 

ii) Formal Groups– Quality Circles are formal organizational groups who meet regularly to discuss the Quality issues.

 

iii) Members– Generally the Quality Circle comprises of eight to ten members.

 

iv) Specialist as a Group moderator- The group is trained by a HR specialist with adequate training and experience in identification of problem, collecting and analyzing the information, statistics and generation of solution.

 

v) Topic of discussion- The Quality Circles may decide to ponder upon any topic of their choice related to the functional dimension of Quality. It is important to note that the Quality Circle, however, cannot discuss any topic related to salary or working conditions.

 

vi) Continuity- The Quality Circles are designed to serve on a regular basis within a service organization. They continue to discuss and debate on the Quality dimensions over and over choosing any topic of their choice.

 

1.5.3 Objectives of Service Quality Circles

 

The purpose of Quality circles can be described as follows:

 

i) Promotes teamwork- The Quality Circles work as a team on reaching to a common solution to problem in service design and delivery. A regular interaction amongst the voluntary group enhances the team work and an increased cooperation.

 

ii) Improves morale- The group working encourages the morale of the group in contributing to the attainment of the organizational goals through group processes. The attitude of the group members is channelized towards a constructive aspect of Service design and hence brings positive changes in the organization as a whole.

 

iii) Focus on Quality- The main aim of the Quality Circles is to enhance to Quality of the service deign, physical evidence, personnel training and service delivery to ensure higher standards of Service Quality. The deliberations of the group revolve around making the service processes reach the highest level of service quality. This may be done by improving the Service design or improve the competence of the service personnel.

 

iv) Improved implementation of Quality- a regular and deliberate group effort of discussing and suggesting ways and means to improve Quality by a voluntary group leads to the smooth implementation of the suggestions, if accepted by the management.

 

v) To reduce Cost- While suggesting the areas of improvement the group eventually facilitates in the reduction of wastage and thus save the cost of the organization. Redundant and duplicated tasks and activities may be eliminated and a lean service design may help achieve economy to the organization.

 

vi) Consumer satisfaction- the overall aim of providing Quality services and improving the morale of the employees is to serve the bottom line i.e. satisfying the consumer.

 

CHECK YOUR PROGRESS

 

5.      Define Quality Circles. Give an example to explain the same.

6.      Mention any two reasons for designing Quality Circles in a Service Organisation.

7.      Describe any three features of a Quality Circles in Services.

8.      How can Consumer satisfaction be assured through Service Quality Circles?

 

1.6 The Gap Model of Service Quality

 

To offer quality services, it is important for the marketer to assess the deficiency in consumer expectations of the service quality and the understanding and offering of service Quality by the firm‟s employees. This phenomenon of evaluating the difference between the consumer expectations from the service performance and the employees understanding of the sought service quality has been termed as “Service Gap”. In 1985, Professors Parasuraman, Berry and Zeihami developed the Service Quality Gap model , which highlights five gaps in the service delivery which may result in the delivery of poor services. If a firm wants to offer excellent quality then it must work to close this gap.

Fig 38.2 Gap Model

Source: A. Parasuraman, Valarie A. Zeithaml, & Leonard L. Berry, A Conceptual Model of Service

Quality, 1985

 

Let us discuss these Service Gaps and how can these be closed:

 

a) Requirements Gap– This is the first Gap discussed in the model which is the result of ignorance of marketers understanding of what the consumer desires or expects. Failure to identify the consumer‟s core need for buying a service results in Requirements Gap. This gap can be addressed through the following actions:

 

i) Marketing research- a systematically planned and implemented marketing research can help management in identifying what the consumers seek and desire while purchasing a service.

 

ii)  Open Communication- there should be adequate and clear communication between the consumers and the service delivery personnel on one hand and between the service delivery employees and the management on the other hand to better understand the consumer‟s expectations.

 

iii) Consumer relations- the service transaction with a consumer should be with the view to develop a long term relationship instead of only making a one point of time sales.

 

iv) Managing Service recovery- this is a means of understanding the reason of dissatisfaction of an employee with a service and ensuring to offer a rectified service to the aggrieved consumer. At the same time, it is important to learn lessons from this experience so that such a deficiency of service delivery may not happen in any future service encounter.

 

b) Design Gap- This is the second gap which may occur due to the basic design of the service being offered to the consumer. The marketers may fail to incorporate satisfactory service standards and hence may not be able to design a quality service. This gap may be overcome by the following steps:

 

i) Good Service design- The service should be clearly designed from creation to its delivery. Then the firm must work on developing a connect with the consumers perception of the service design so that the deliberately created design is positively taken by the target consumers.

 

ii) Adding performance standards- A good service design should be based on the performance standards desired by the consumers. Every step must be taken not to fall below the expectations of the consumers on such specified levels.

 

iii) Developing physical evidence- this relates to offering an appropriate service physical evidence to the consumer as this would be the only variable visible to the consumer. From here the consumer could be convinced of a quality service experience in line with his expectations.

 

c) Quality Specification and delivery Gap- A service organization may have guidelines and specifications in place for the delivery of high service quality to the consumers. But when the service is delivered in actual, the same performance standards may not be met, creating a service gap. While the service standards may be uniformly set, the service personnel‟s delivery in terms of treating the consumers and offering the services, may not be uniform in all encounters and may even be lower than set by the management. For example, a toll free consumer helpline number of a telecommunication service marketer is set to be answered within 10 seconds as a service rule. However, in practice due to several factors, the call may not be answered within the stipulated time, causing a service Gap. Such a gap can be addressed by the following measures:

 

i. Developing achievable service standards- achievable service standards should be developed by the marketer. If a service standard is promised, it must be delivered to avoid any consumer dissatisfaction.

 

ii. Adequate Personnel Training- The service personnel should be communicated such quality standards and should be imparted with adequate training to be able to deliver the same in a service encounter.

 

iii. Sufficient technical support- In case a service standard is dependent upon some technical support, then the management must make adequate arrangements to provide the same to the employees. In the above example, if the call is to be answered within 10 seconds, there should be adequate lines and personnel to answer the calls during peak calling hours.

 

d) Imbalance between promotional communication and internal performance– For the purpose of attracting potential consumers to try out a service, the firm may use media advertising to convey its quality standards to them. However, there may be a gap between what is portrayed in the promotional messages and what actually is delivered. This may result in a service gap and consumer dissatisfaction. If an Internet service provider promises a certain speed of downloading some videos in its advertisements, but in actual, when the same video is downloaded it takes more than the advertised time, this may cause a service delivery gap. The firm must nor promise more than it actually is capable of delivering. Such a gap may be closed by the following:

 

i.  Giving an honest creative brief- For a service marketer it is important to offer an honest and clear creative brief to the advertising agency so that only a real service standard is promised in the promotional messages.

  1. Share the hidden effort- While no over promises should be made, it is also important to tell the consumer what extra effort is put in by the firm in serving its consumers. If a service firm has some policies to serve the consumers by going „an extra mile‟, the consumers must be made aware of this „extra mile‟. If the consumers are told that the organization is taking extra steps in serving them well, it is very likely to result in a positive perception.
  2.  Satisfaction Gap– A service satisfaction gap is the difference between the expectations of the consumers with the service and their perception of its actual performance. If the expectations are higher than the perception, the consumer would be dissatisfied; if the expectations are equal to the actual service performance perceived the consumer would be satisfied. Only when the consumer‟s expectations are exceeded by the perceived actual service performance, the consumer can be delighted and expected to come back for another service purchase or give a positive referral.

 

For closing this gap, all the above mentioned four gaps need to be closed.

 

 

CHECK YOUR PROGRESS

  1. Who propounded the concept of Gap Model in Services?
  2. Mention the five gaps in Service marketing with the help of an example.
  3. Illustrate, with the help of an example, how service delivery gap be closed.
  4. Can the consumer satisfaction gap be closed? How?

 

1.7 Conclusion

 

Quality is an increasingly important variable to gauge the service firm‟s competitiveness. But it is not easy to either measure or ensure high quality services despite the desire of the management and the consumers. This is so, because it is important to investigate what the consumers wish to receive in a service and then design the service accordingly. This understanding of the consumer‟s needs and service quality deliverability has to be shared with the service personnel so that the same level of quality is delivered at each service encounter. Quality Circles is an important technique being used in bringing together the service personnel in a formal group with the agenda of deliberating the issue of Quality design and delivery in each service encounter.

 

1.8 Summary

 

Quality refers to the commonly expected set of performance standards of any product or a service. Desiring of a level of service design and delivery in services is called as Service Quality. Quality Circles are increasingly being adopted as a technique of delivering and designing higher standards of Quality by the service firms. The concept of Quality Circles originated in Japan in the manufacturing industry but was soon adopted across the world in various manufacturing and services industry. Quality Circles are voluntary groups of workers, under the supervision of some specialist, in a service organization comprising of eight to ten members who regularly meet and discuss the solutions to various problems related to service quality and ways of improving the service design and delivery service. These suggestions are put forward to the management for acceptance. The approved solutions are implemented with the active participation of these service quality Groups. For ensuring high quality services, a number of techniques are available to the Quality Circles like Fishbone model, brainstorming, PDCA- Deming Wheel, Pareto Chart and Gap Model etc.

 

Learn More:

  1. a) Ishikawa, K., “What is Total Quality Control? The Japanese Way”, Prentice Hall, 1985
  2. b) Montana, Patrick J.; Bruce H. Charnov (2008). Management (4th ed.). Barron’s. ISBN 978-0-7641-3931-4.
  3. c) Hutchins, David C. (1985). The Quality Circles Handbook. New York: Pitman Press. ISBN 978-0-89397-214-1.
  4. d) Hutchins, David C. (September 2008). Hoshin Kanri : the strategic approach to continuous improvement. Burlington, Vermont: Gower. ISBN 978-0-566-08740-0.
  5. e) Juran, Joseph M. (1992). Juran on quality by design : the new steps for planning quality into goods and services. New York: Free Press. ISBN 978-0-02-916683-3.
  6. f) Hutchins, David C. (1999). Just In Time. Farnham, Surrey: Gower Publishing. p. 148. ISBN 978-0-566-07798-2.
  7. g) Parasuraman, Valarie A. Zeithaml, & Leonard L. Berry, A Conceptual Model of Service Quality and Its Implications for Future Research, The Journal of Marketing. 1985