Service Failures and Recovery in Tourism and Hospitality: A Practical Manual

1. Service Failures and Recovery in Tourism and Hospitality: A Practical Manual ErdoganKoc

2. Chapter 11 Staff Training for Service Failures and Recovery

3. Learning Objectives After reading this chapter, you should be able to: Define staff training, service failure and service recovery. Explain the importance of staff training in service failure and recovery. Offer training recommendations to overcome service failure and manage the service recovery.

4. Learning Evaluation Implementation Customer Satisfaction Service Recovery TRAINING Knowledge Skill Attitude Empowerment Competency Development Training Content Development Need Analysis Curriculum Design Employee Satisfaction Figure 11.1 Training Process and Service Recovery

5. Importance of TrainedStaff? Training programmes: • General organizational policies, values and strategies • Service standards, job descriptions and expectations of employees • Analysing the problems (before they occur) • Analysing the customer • Dealing with irritated and frustrated customers • Understanding the situation and making explanations

6. Training Programs For Service Recovery Training programmes (continued); • Finding an appropriate and quick solution while thinking about alternative recoveries • Respecting customers with special needs • Importance of reporting service failures • Importance of involving customers in the service process • Importance of encouraging customers to make a complaint first and then to join recovery

7. (Types Of) Training Practices • Group 1 Training PracticestoInfluenceCustomerAttribution

8. Training Techniques Training Content Service Failure Dimensions Knowledge [Basic Services & Possible Service Failures] Controllability Orientation Customer Satisfaction Skill [Customer PerceptionManagement] Stability Critical Event Locus Attitude [Behaviour Development] Role Playing Figure 11.2. Training Practices, Customer Attribution of Service Failure

9. Example 1 (Controllability)

10. Example 2 (Locus)

11. (Types Of) Training Practices • Group 2 Training Practices • Justice Perception and Service Failure Type: • Distributive Justice (Outcome Failure- Tangible Recovery) • Interactional Justice (Process Failure- Intangible Recovery) • Procedural Justice (Process Failure- Intangible Recovery)

12. Tangible Recovery Knowledge [Policies, values and strategies of the organization] Orientation Service Failure and Recovery Type Training Techniques Training Content Justice Dimensions 11.3. Training Practices, Service Failure & Recovery Types, Justice Dimensions Customer Satisfaction Distributive Justice Outcome Failure Skill [Customer Perception Management] Role Playing Attitude [Behavior Development] Case Study Knowledge [Process in detail & How to involve customer in] Interactional Justice Mentoring Process Failure Skill [Communication Skills & Nonverbal Behavior Development] Conference Procedural Justice Intangible Recovery Attitude [Behavior Development & Create Awareness of Differences] Sensitivity (T- Group Training)

13. Example 3 (Outcome Failure)

14. Example 4 (Process Failure)

15. (Types Of) Training Practices • Group 3 Training Practicesfor Service RecoveryProcess • Employee Recovery: • Employee Response to Service Delivery Failure • Employee Response to Customer Needs and Requests • Unprompted employee actions • Problematic Customer Behaviour

16. Employee Recovery Knowledge [Providing Perfect Service; Expectations of Customers] Orientation, Job Rotation, Lectures Employee Response to Service Delivery Failure Training Practices Training Content Employee Recovery Figure 11.4. Training Practices for Employee Recovery Employee Response to Customer Needs & Requests Service Recovery Customer Satisfaction Skill [Communication and Technical Skills, Customer Analysis] Conference Orientation, Coaching, Group Discussion Unprompted Employee Actions Problematic Customer Behaviour Attitude [Behaviours to and not to Display; Develop Improvisational Behaviour] Role Playing, Case Study, Brain Storming

17. Example 5 (Employee Recovery)

18. (Types Of) Training Practices • Group 4 Training Practices • Process Recovery • Determination of Performance Standards • Understanding the importance of service recovery • Customer Recovery • Involved in the service process • Easy Complaint System

19. Example 6 (Customer Involvement)

20. Training Practices • Should be designed via communicating with employees: • intranet through all departments • voice emails • job rotation • social activities between employees • bulletin boards • meetings • i-service trainings

21. Training Practices • Provide realistic foresight • Role playing • Simulation training • Provide an understanding of the organization • Rotation training • Develop the behaviours required by the organization • Multi-skills training • Provide experience • On-the-job training • Renewed regularly

22. TRAINING FOR EFFICIENT SERVICE RECOVERY:HOSPITALITY MANAGEMENT

23. Service Failures:Hospitality Management I Customer Complaints – Service Failures (24 April – 30 May 2015) • Technical Issues • Structural Issues • People-driven Issues

24. Service Failures:Hospitality Management I The most common service failures related to employees of Main Restaurant: • Rude behaviours of employees • Unwillingness of employees to meet customer requests • Careless and rushing service • Employees ignoring customers

25. Service Failures:Hospitality Management I The most common service failures related to employees of an a la carte restaurant: • Employees’ insufficient knowledge about the menu • Food served at an incorrect temperature • Wrong order service • Slow service

26. Service Failures:Hospitality Management I Training ProgrammeI: (5- 15 June 2015 / 15 hours in total) • Communication techniques • Customer relationship • Complaint management • Time management • Problem-solving techniques

27. Service Failures:Hospitality Management I Outcomes of Training Programme I: (After 60 days) • Customer complaints from main restaurant decreased by more than 60% • Customer complaints related to the alacarte restaurant decreased by just 17% • No difference in customers’satisfaction from a lacarte restaurant.

28. Service Failures:Hospitality Management I Situation Analysis after Training Programme I: • customers were paying too much at the a la Carte restaurant • preventing service failures was not sufficient alone • efficient service recovery was needed to prevent customers complaints Suggestion: Alacarte restaurant’s employees to be distinctively trained and also be provided with autonomy by the management

29. Service Failures:Hospitality Management I Training Programme II: (20-30 August 2015/ Role Playing & Case Study etc.) • Customer psychology • Emotional intelligence • Understanding people and motivation • Empathy • Dealing with difficult people • Service recovery techniques

30. Service Failures:Hospitality Management I Outcomes of Training Programme II: (After 45 days) • Customer complaints from the a la carte restaurant decreased by 86% • customers’ satisfaction from the a la carte restaurant increased by 17%

31. TRAINING FOR EFFICIENT SERVICE RECOVERY:HOSPITALITY MANAGEMENT II

32. Service Failures:Hospitality Management I Unsatisfactory Responses of Employees to Customer Complaints and Requests – Inefficient Service Recoveries The most common customer complaints: • Uncompensated losses • Unsolved problems • Not being able to reach out to any managers • Employees’ incomprehension of customer request • Feeling unwillingness of employees to comprehend the problem etc.

33. Service Failures:Hospitality Management I Training Programme I: (Guest Relations Department Staff) • Problem solving techniques • Conflict management • Dealing with angry and difficult customers • Personality analysis • Stress Management • Importance of feedback to customers and applicable techniques

34. Service Failures:Hospitality Management I Outcomes of Training Programme I: • The level of customer complaints was much higher than expectations even after a significant decrease • Guest Relations Department staff were unable to develop empathy

35. Service Failures:Hospitality Management I Training Programme II (Guest Relations Department Staff / Off-the Job Training) • Each employee was individually sent to Z hotel which was qualified as successful in customer complaints management • Trainees as the customer of Z hotel had some problems and communicated to GRS of Z Hotel

36. Service Failures:Hospitality Management I Outcomes of Training Program II: • Considerable performance improvement in the short-term • Reduction in customer complaints in the long-term

37. The Role of Trainingin Service Recovery Process Activity Think of a situation where you had a processfailureand outcomefailure. What kind of training would be better to develop employees and recover the failures?

38. The Role of Trainingin Service Recovery Process Questions How do we define service failure and recovery? Why is training important for service recovery? What are the main reasons for service failures? What is the relationship between staff training and service recovery success? How can the service recovery process be managed?