Managment/ Business Administration - Organisation Behaviour

National Investment and Insurance : The Neglected Service Department

EXECUTIVE SUMMARY

This is a clear case of a service organization where the department head recognizes a problem exists and , by convening a team meeting demonstrates he is on the right track to overhauling matters . It is a giant step toward leading an organization that is adrift and incapable of fulfilling its vaguely-defined mission

Four things have been done right so far . NII recognized that its 19 ,500 deskbound and mobile employees must have recourse to technical support when they need it . Second

, the service is accessible 24 /7 . Third , some attention has been paid to attracting fairly-knowledgeable entry-level AO 's by giving IT students (and graduates who wish to augment their incomes form day jobs ) the opportunity to work part-time . Fourth , the first staff meeting became a venue for soliciting feedback about quality of service

At least two models of human behavior are applicable to the case at hand . Maslow 's hierarchy of needs and the expectancy theory enable us to understand what is amiss and why the frontline AO 's are complacent about their task . Even casual staff would like to belong if only they were afforded a chance at a career path and informed how they might qualify for it . In turn , the full-time staff have job security and perks that should motivate them to do a better job and support their casual-status colleagues better . But there is a gap between the privileged few and the dozens of frustrated part-timers . Trained staff is constantly lost , morale is poor , and service could be better

TABLE OF CONTENTS

TOC \o "1-3 " \h \z \u HYPERLINK \l "_Toc8 " EXECUTIVE SUMMARY PAGEREF _Toc8 \h 1

HYPERLINK \l "_Toc9 " I . PREFACE PAGEREF _Toc9 \h 3

HYPERLINK \l "_Toc0 " A . Introduction PAGEREF _Toc0 \h 3

HYPERLINK \l "_Toc1 " B . Summary of Academic s PAGEREF _Toc1 \h 3

HYPERLINK \l "_Toc2 " 1 . TQM Gives Workers A Lift , Too PAGEREF _Toc2 \h 3

HYPERLINK \l "_Toc3 " 2 . Back to Basics : Employee-Centered Management PAGEREF _Toc3 \h 4

HYPERLINK \l "_Toc4 " 3 . Customer Satisfaction , Expectancy Disconfirmation and Social Exchange Theory . PAGEREF _Toc4 \h 4

HYPERLINK \l "_Toc5 " II . DISCUSSION OF CASE STUDY PAGEREF _Toc5 \h 5

HYPERLINK \l "_Toc6 " A . Variable Customer ' Expertise and Needs PAGEREF _Toc6 \h 5

HYPERLINK \l "_Toc7 " B . Communication Methods and Essential Tools PAGEREF _Toc7 \h 5

HYPERLINK \l "_Toc8 " C . Service Access and Productivity PAGEREF _Toc8 \h 6

HYPERLINK \l "_Toc9 " D . Career Path , Employment Status and Teamwork PAGEREF _Toc9 \h 6

HYPERLINK \l "_Toc0 " E . Service Delivery PAGEREF _Toc0 \h 7

HYPERLINK \l "_Toc1 " F . Morale , Consequences and penalties PAGEREF _Toc1 \h 7

HYPERLINK \l "_Toc2 " G . The Principle is the Thing PAGEREF _Toc2 \h 7

HYPERLINK \l "_Toc3 " III . SUMMARY PAGEREF _Toc3 \h 8

HYPERLINK \l "_Toc4 " A . Options and Recommendations PAGEREF _Toc4 \h 8

HYPERLINK \l "_Toc5 " B . Conclusions PAGEREF _Toc5 \h 11I . PREFACE

A . Introduction

The well-intentioned program of the National Investments and Insurance to organize an IT support group for the 19 ,500 computer-dependent employees of the company got off to a good start with the hiring of IT students and reasonable staffing to ensure 24-hour service availability However , there is much to do to ensure optimal service delivery . High staff turnover , dissension and poor mission performance are merely three signs that IT support could be managed better

Management has shown it is already on the right track by convening the first-ever staff meeting and really listening to all that the staff and their internal customers ' have to say . Much more needs to be done

B . Summary of Academic s

1 . TQM Gives Workers A Lift , Too

Scotti et al (2003 ) drew parallels between the present fervor for adopting the situation on the factory floor when Maslow articulated his theory of the hierarchy of needs . Clearly , the TQM emphasis on participative problem-analysis and decision-making satisfies every worker 's need for recognition . Even before overt recognition gestures and rewards are administered , the mere fact of soliciting the views of the job expert , the employee actually doing the work , already goes a long way to improving the process . Still , a successful quality program depends on meeting higher- needs such as for security belongingness and esteem

2 . Back to Basics : Employee-Centered Management

Management fads come and go . In recent decades , we have seen personality testing , management by objectives , management by walking around , team-building , mergers and acquisitions , leveraged buy-out 's offshore outsourcing , intra-preneuring ' and a host of others Through it all , Maddux (1991 ) asserts , the most successful corporations and individual managers have reaped the benefit of attending to such vital employee needs as those for participation , respect and taking pride in their work

The important implication of Maslow 's higher- needs is that managers should actively solicit employee ideas because those on the frontline can help shape the clear-cut standards , incentives and production or service delivery systems that redound to their own job satisfaction in future

3 . Customer Satisfaction , Expectancy Disconfirmation and Social Exchange Theory

Servicing internal customers at NII is hardly different from the continually delivered business services (CBDS ) context that banks library databases , business processing outsourcing (BPO ) companies and application service providers , to name a few , strive to fulfill for their business clients . Briggs (2006 ) proposed and tested a conceptual framework of global (or overall ) satisfaction that drew insights from expectancy theory

The dissertation adds breadth to Vroom 's expectancy theory in organizations by drawing on twenty empirical pieces of research over a span of ten years in the fields of marketing , sociology and psychology At core , the conceptual framework revolves on the idea that satisfaction is formed by considering the actual performance of a .service and the expected performance of (the . service (Briggs op . cit

This is relevant because in the absence of a career path , pay increases other rewards , and systematic tools to do their jobs better , the NII AO 's will likely draw self-esteem and actualization from satisfying internal customers optimally . The analogy rests , of course , on the AO 's as continuous service providers paid to furnish the 19 ,500 other NII employees a vital service

II . DISCUSSION OF CASE STUDY

A . Variable Customer ' Expertise and Needs

Anecdotal evidence from the AO 's suggests that 19 in 20 calls for support are caused by lack of knowledge about computing generally . On the other hand , the balance of inquiries are from employees who seem to know more than IT Support front liners and the Supervisors /Managers who backstop them during the daytime shift . This despite the fact that many of the casual employees are IT students

B . Communication Methods and Essential Tools

Given the large scale of NII operations , other departments contact ITS by email or telephone . Support issues are resolved the same way although a few require drop-in visits or ocular checks . For all intents and purposes , therefore , most support requirements could be handled from a remote location and , more specifically , by a technical support outsourcing company

I discuss service quality issues separately below . However , it is worth pointing out that the case is silent about AO 's having access to online knowledge bases or even bound technical support manuals . These two tools comprise the bare minimum needed to meet performance standards in the technical support service industry , whether in-house or outsourced for they enable speedier and more knowledgeable handling of support issues

C . Service Access and Productivity

ITS has obviously committed to providing round-the-clock support . While this is a worthwhile goal , it would seem that the Section is overstaffed . There are fully 90 AO 's on the rolls , at least four times more than typical working day requirements . Each weekday , manning complement comes up to 22 AO 's spread over three shifts . Assuming a supervisor-staff ratio of 5 :1 , as many as seven supervisors and managers may be required to field questions too complex for the AO 's . On weekends , eight AO 's man two shifts

Perhaps such a large pool of AO 's is justified by the irregular availability of students . Coupled with the long response times that have become a habit , it also smacks of poor planning

D . Career Path , Employment Status and Teamwork

Four things have been done right so far : setting up ITS , recruiting IT students to field calls , commitment to round-the-clock availability , and Brendan calling for the first Section staff meeting . For the IT Support Section to pull together , the caste boundaries that isolate casual from regular employees have to be demolished . In principle , teamwork and cooperation are pipedreams when the overwhelming majority who are casual staff are treated like second-class citizens

Given that casuals comprise the lion 's share of ITS manpower and presumably account for virtually all the turnover , Management had better make integrating them into the team a top priority . More than just earning pocket change , it is conceivable that casual AO 's would respond to the enhanced feeling of belonging and to the greater respect afforded them with greater commitment to fulfilling the mission of the Section

E . Service Delivery

As it is , we discern no commitment to service standards . Perhaps because there are no performance metrics in place , no one seems accountable for performing the core mission of ITS with dispatch . At least , Brendan now has information about the types of technical issues called in and the surly attitude of some of the staff

F . Morale , Consequences and Penalties

As a consequence of all the above management gaps , morale is low turnover is high and users have a poor opinion of section effectiveness

G . The Principle is the Thing

Every manager who likes to think of himself as enlightened also pays lip service to taking care of his people . Putting this into practice in a way that maximizes both personal and organizational goals - job satisfaction and effective service delivery is quite another matter

The work of Maslow helps raise managers ' consciousness of employee needs that are satisfied (or ought to be ) at work . The full-time AO 's , for one , receive perquisites that fulfill their physiological /economic /security needs (annual pay increments , the higher- experience and purpose needs (training eligibility belonging , appreciation and esteem needs (promotion to higher rank within IT

In contrast , morale is low and turnover high among the casual AO 's in great part because current practices at IT Support do nothing to provoke and co-opt personal needs to the good of the organization . Beyond giving the casual staff the flexibility of working four- or eight-hour shifts , it is almost as if the IT Department believes that working students ought to be grateful they have a chance to earn pocket money

This implicit attitude flies in the face of the fact that interns and young full-time workers make a worthwhile contribution in other fields Legend Financial in London , for example , is gratified to report that even sophomore-level interns effectively help with backroom operations to such an extent that an experimental program to recruit many more interns went hand-in-hand with a 20 revenue gain two years in a row

As well , the situation of the casual AO 's is diametrically opposed to what Vroom would have us implement based on the expectancy theory model The absence of performance standards means that there is no effort-performance linkage . Secondly , the performance-reward link is missing . An IT student has no particular incentive for boning up on his textbooks so as to be able to respond to user questions with dispatch since there are no announced incentives for doing so . The tangible rewards of job security , and promotion to regular status is tempting but how to screen for the job (and commence the career path to higher levels in the department ) is unclear . On the other hand , the last aspect of the expectancy model , attractiveness of the reward , is clear in so far as the perquisites and privileges of full-time AO 's is concerned

III . SUMMARY

A . Options and Recommendations

Dependent as they are on computers to market insurance policies and investment plans , there is no question that the 19 ,500 employees of NII need an IT Support resource . The first question is whether such a resource ought to be in-house or outsourced

That the question is being raised at all is due the sheer incompetence with which the service has been rendered . Service is slow , unable to cope with expert users and downright surly . The expertise of IT application developers and senior full-time AO 's , supervisors and managers has not translated to quick and accurate service . It is quite simply ignominious that the majority of problems , raised by sheer lack of familiarity with computing and therefore novice-level , take one or two days to resolve

The lackadaisical attitude to service , typical of IT Departments emanates both from lack of teamwork and virtually xistent performance standards . The former is characterized by senior and presumably more knowledgeable AO 's and middle managers ill-motivated to help their front liners out when dealing with expert users . Naturally this creates resentment casual AO 's react by marking time and departing at the earliest opportunity . Staff that has already gained some familiarity with company software and procedures are irretrievably lost

It would appear that senior company management directed or approved the creation of ITS without articulating any parameters for effective service . And it did not help that IT Managers failed to close the gap by putting the proper performance standards in place . It comes as no surprise therefore that the job is done at a snail 's pace

In even the most highly technical support groups , management science has come to match the skill with which marketing experts create and maintain customer satisfaction . Performance criteria to achieve this and at the same time maximize organizational efficiency include : accessibility handling time , and customer satisfaction ratings . Experienced staff such as the full-time ITS staff at NII , are co-opted to perform a Quality Assurance role so as to expedite on-the-job skills training and optimize customer satisfaction . As well , the Finance Department calculates service efficiency of internal service groups with cost per contact , cost per department serviced and cost per resolution

The same set of performance metrics include standards for determining required occupancy (shift manning ) and researching the influx of calls by half-hour interval and by shift /day part . These are vital because ITS is currently overstaffed and no one realizes it . It might turn out for instance , that no NII employee ever wants to work and hence , require technical assistance , in the dead of night . In that case , the night shift that is already at skeleton-staff level anyway should be dispensed with

One significant explanation for maintaining the large pool of AO 's is the continuous influx of employees who perforce learn computing for the first time in NII . This presents an opportunity for the IT Department to offer PC hardware and software orientation to all company employees who feel the need and , subsequently , to all new hires . This quite simply melds well with roots of a recurring problem and resolve it . Granted , a stream of refresher questions ' may still ensue but one can reasonably expect that the volume of calls will drop drastically . ITS may then cut back the AO pool drastically and decide that the fulltime AO 's can handle the residual volume that will , this time , consist chiefly of the abrasive expert users

With respect to quality of service , there is an obvious gap in making training available only when an AO is accepted into the ranks of full-time staff . Training is not a privilege , it is a basic requirement for front liners to exude the kind of attitude that will leave their internal customers delighted with the service experience

With the Section now accountable for its performance , clear on what the weekly and monthly metrics review will cover , and service rendered by a closer-knit team , expectations can be tightened still further by automating all reference material . Even as the client ' employee is still on the phone , every AO should have either a printed manual or better still , a knowledge base that is accessed by scripted questioning This will resolve calls immediately and heighten AO morale at creating customer ' satisfaction with every single call they take

B . Conclusions

The situation as it stands is an opportunity to build a cohesive team and greatly improve the quality of service rendered to the 19 ,500 clients

The start of team meetings is a chance to ventilate best practices glean opportunities for improvement , satisfy the needs of part-time AO 's to belong , to be responsible , to be secure . Soliciting the entire team 's help to brainstorm and institutionalize performance metrics clarifies , as expectation theory holds , what effort and commitment will be required to come up to standards . Brendan may then link merit promotions to effort and the customer satisfaction ratings that result

Providing basic training to all who want it will lead to significantly reduced call volume , more rational shift manning and a leaner organization . By restructuring the smaller manpower complement in teams , Brendan has a better chance of making supervisors and shift managers accountable for the performance of their teams

Computerizing what seems to be a disparate knowledge base that goes up and down the elevator each day appears to be the most effective way to drastically conform to client expectations for fast , knowledgeable answers

Bibliography

Briggs , E (2006 ) An examination into the nature of satisfaction formation in a continually delivered business service context . Ph .D diss , The University of Oklahoma . In ProQuest Digital Dissertations [database on-line] available from HYPERLINK "http /www .proquest .com " \t "_blank " http /www .proquest .com (publication number AAT 3218127 accessed December 14 , 2007

Maddux , G . A (1991 ) Managerial responsibility : The re-emergence of the corporate conscience . Management Decision , 29 (5 ) July 10 ,

.12 HYPERLINK "http /www .proquest .com " \t "_blank http /www .proquest .com (accessed December 14 , 2007

Scotti , R , Cohen , S , Toppert , B , DeSantas , M , et al (1993 ) TQM and participative management issues . Public Manager , 22 (3 ) October 1 ,

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