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Toward A Core Typology of Service Organizations

Toward A Core Typology of Service Organizations. By: Peter Mills and Newton Margulies. Presented by Joelle Do. Objective . Develop a core typology by describing three types of service organizations using seven dimensions of interaction between client and organization

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Toward A Core Typology of Service Organizations

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  1. Toward A Core Typology of Service Organizations By: Peter Mills and Newton Margulies Presented by Joelle Do

  2. Objective • Develop a core typology by describing three types of service organizations using seven dimensions of interaction between client and organization • Typologies are an instrument used to reduce data and stimulate thinking • Seeks to provide more precision in the classification of organizations

  3. Researchers Say… • Barnard, 1938, defines organization as a cooperation among people • Weick, 1976, says organizations are clusters of events in changing states of coupling • Blaus and Scott, 1962, recognizes the beneficiary typology which classifies all organizations to the prime beneficiary -allows for predictions, but limited - cannot determine short term or long term beneficiary

  4. Research Continued • Jurkovich, 1974, classified organizations based on environment • Underlying reason is organization are problem-solving entities • Reactive to environment • Pugh, Hickson, Hinings, 1969 tried to move away from the technological approach • Structuring of activities • Concentration of authority • Lined control of work flow

  5. Research Continued • Etzioni’s, 1961, has the control and power approach which is based on three control systems • Coercive (punishment) • Utilitarian (compensation) • Normative (social values) • Woodward, Harvey, Parrow, 1965-1968, have a typology based on technology • Long-linked technology (interdependence between production units by assembly line) • Mediating technology (entails joining of clients and independent units) • Intensive technology (varied set of techniques to deal with specific problems)

  6. Methodology • Research efforts directed to examine relationship between client and service organization • Study of previous research • Analysis of organizations • Measurement of seven Interface variables

  7. Three Basic Types of Service Organizations • Maintenance – Interactive • Task – Interactive • Personal – Interactive

  8. Maintenance Interactive *continuous interaction between customer and employee *focused on trust to sustain the relationship for an indefinite time period *success based on organization’s ability to portray an image of stability *examples would be financial institutions, insurance companies *amount of information in transaction is limited *employee interchangeability is allowed

  9. Task Interactive *relatively concentrated interaction between client and employee *focus is on varied techniques for problem solving *focus is on how to accomplish tasks, not so much on what customer wants *interaction is more complex because of the transfer of information *clients do not now what techniques are used to create the demand for the product *example is engineering firm and client *duration of relationship is long because flow of information is extensive *tasks demand judgmental independent decisions

  10. Personal Interactive *personal nature of the problem brought to the employee decision unit by the client *focuses on the improvement of the clients intrinsic and intimate well-being *examples would be counseling and medical organizations *considered professional service *employees provide personal service to clients but are unsure what and how to best serve *extensive information must be given by client *client is dependent on employee and client is viewed in the subservient state.

  11. Seven Classification Variables • Information - quantity, quality, and confidentiality • Decision - Employee decisions, importance, feedback • Time - Interface duration, total time in direct contact • Problem Awareness - Client knowledge about problem, client ability to evaluate services, expectations versus capabilities • Transferability - Substitutability of employee • Power - Perceived power of employee, employee status, employee authority • Attachment - Conflict potential, employee identification

  12. Lessons Learned • Degree of interaction between clients and employees varies • This interaction can help organizations predict future behavior and prepare for problems which arise

  13. Summary • This typology has classified three types of service organizations – maintenance, task, and personal • Based on the crossing point between client and organization • Assist in prediction of future behaviors of organizations that fall into particular categories

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