MGT 250 Lecture 58: Service Recovery & Empowerment and Manufacturing Operations
10 Jun 2018
School
Department
Course
Professor
• Service Recovery & Empowerment:
➢ Service Recovery: restoring customer satisfaction to strongly dissatisfied
customers.
o Sometimes requires service employees to fix whatever mistake was
made.
o Also requires them to perform heroic service acts that delight highly
dissatisfied customers by far surpassing expectations of fair treatment.
o When mistakes occur, service employees often don’t have discretion to
resolve customer complaints.
▪ Company rules prevent them from engaging in acts of service
recovery meant to turn dissatisfied customers back into satisfied
customers.
▪ Result is frustration for customers & service employees & lost
customers for the company.
o Empowering Workers: permanently passing decision-making authority
& responsibility from managers to workers.
▪ Giving service employees authority & responsibility to make decisions
that immediately solve customer problems.
o Q: When things go wrong for customers, how well does service
recovery work?
▪ 69% percent of customers see quick resolution of problems as central
to good customer service.
▪ About half of customers will stop buying from a company when bad
customer service is not resolved.
▪ Roughly 9/10 customers will tell others about poor customer service
or how employees fixed their problem.
• Manufacturing Operations:
➢ Amount of Processing in Manufacturing Operations:
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