Features and main problems of management in the service sector. The service sector: structure and role in modern society The service sector in our time
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Introduction
The relevance of the topic is that our modern society cannot be imagined without services and, as a consequence, without the service sector, which is one of the fundamental elements of society and a specialist in the service sector needs to have a good understanding of the structure of the service sector and know the main points of each area of activity of a service enterprise.
Every day we consume services and sometimes, without knowing it, we provide them to other people. Providing services to each other, producing and consuming services is what distinguishes us from our primitive ancestors, who did not have the concept of services in general. Our civilization, with the progress of its transformation, has identified a special niche for the service sector, without which a civilized society can no longer do.
The life of a modern person, one way or another, is connected with services. After all, trade in services includes the provision of utilities, communications, banking business, wholesale and retail trade, transportation, as well as insurance, legal, medical, educational services, etc. The quality of services determines the income of the state, the profit of companies, the comfort, safety, and welfare of consumers.
The connection here is direct and obvious: high-quality services attract attention and make people want to use them to make life easier. The gradually developing positive situation in retail trade allows consumers to compare one service with another, and also pushes competitors to provide constantly improving services while ensuring their quality. The need to develop the service sector requires a significant restructuring of the population's consumption structure, a significant increase in the share of services and a reduction in the share of material consumption. It is necessary to radically improve the quality and culture of service, expand the network of relevant enterprises, increase the volume of sales of services, and introduce new types and forms of them.
The purpose of my test is to understand the general concepts of what a service actually is, what specific features it has, to embrace the whole concept of the service sector and to consider what operational features it has.
The specific objectives of the test are to:
Using the example of our society, show what role the service plays in general, basic concepts;
Highlight the specifics of the service sector;
Understand the outline of the service industry;
Consider the features of the service sector in the modern world
The objects of study of this topic will be the service sector, a society in which there is an exchange of services on different conditions, as well as the direct relationship between a person and the service sector in modern society.
1. Service sector. Basic Concepts
Every day, leaving home, we begin to come into contact with the social environment, consuming, producing, and of course using all kinds of services. Sometimes we cannot touch or somehow materially feel the service. However, in our world, the concept of service has a wide range of definitions. One of which implies that a service is a purposeful activity, the result of which is expressed in a useful effect that can satisfy one or another human need, which may initially be the object of supply and demand in the market.
A service is a purposeful activity, the result of which is expressed in a useful effect that can satisfy one or another human need, which may initially be the object of supply and demand in the market. The concept of “service” has a wide range of definitions. In general terms, services are usually understood as various types of activities that do not have an explicit material form.
firstly, they are invisible;
secondly, they cannot be stored;
thirdly, the production and consumption of services, as a rule, coincide in time and place.
This determines the features of international trade in services compared to international trade in goods.
There are two types of services:
services that are mediated by property. They are related to consumer goods (material);
services not related to material products. Their action is aimed at a person or at the conditions in which he is located, their production is inseparable from consumption (intangible).
A specific service industry is international tourism.
Specific features of international trade in services include:
Regulation within the country by relevant legislative provisions;
The absence or presence of the fact that a service crosses the border does not serve as a criterion for its export;
Services are not stored, they are produced and consumed at the same time;
The production and sale of services are under greater state protection (in most countries they are fully or partially state owned) than the sphere of material production;
International trade in services has a major impact on trade in goods;
Not all types of services, unlike goods, can be traded (services for personal consumption).
In general terms, services are usually understood as various types of activities that do not have an explicit material form.
The differences between services and goods in material form are that,
they are invisible;
cannot be stored;
production and consumption of services tend to coincide in time and place.
The huge difference between a service and other goods is that a service is intangible, that is, it cannot be touched or touched. The seller can only describe the benefits that result from providing this service. The difficulty in working with services and consuming them is that it cannot be stored in time, and also the time of production of a service usually coincides with its consumption. A service can only be provided when an order arrives or a client appears.
As a result, the next feature of the service arises - inconsistency of quality. This problem can only be avoided by introducing certain service standards. In international understanding, these features of services are taken into account when dividing trade in goods and services.
There are two concepts of service, the first is private, that is, actions in relation to another person aimed at satisfying his needs. The second concept is considered in the context of economic theory. According to this theory, a service is all kinds of benefits provided in the form of activity, as well as goods that can be produced, consumed and transferred at the same time. In order to separate services, they need to be classified.
In 1964, scientist Stanton divided services into the following 10 groups:
1. housing services;
2. family services (home repairs, landscape maintenance, cleaning of living quarters, etc.);
3. rest and entertainment;
4. individual sanitary and hygienic services (washing, dry cleaning, cosmetic services, etc.);
5. medical and other health services;
6. private education;
7. business and other professional services (legal, accounting, consulting, etc.);
8. insurance and financial services;
9. transport services;
10. communications services.
Currently, this classification has undergone some changes and now the classification of services occurs according to UN standards, in which services are divided into 160 different types and 12 main sections:
1. Business services -- 46 industry types of services.
2. Communication services - 25 types.
3. Construction and engineering services - 5 types.
4. Distribution services - 5 types.
5. General educational services - 5 types.
6. Environmental protection services - 4 types.
7. Financial services, including insurance - 17 types.
8. Health care and social services - 4 types.
9. Tourism and travel - 4 types.
10. Services in the field of organizing leisure, culture and sports - 5 types.
11. Transport services - 33 types.
12. Other services.
One of the most important patterns of economic development around the world is the relationship between economic growth and the increasing role of services in the national economy. This is reflected in an increase in the share of labor, material and financial resources used in the service sector.
As society develops and productive forces grow, a certain development of the service sector occurs. There is an increase in employment in this area, an increase in the technical equipment of labor, and the introduction of increasingly advanced technologies. Currently, the role of services, as one of the most important sectors of the economy, is very large and relevant. This is due to the increasing complexity of production, the saturation of the market with goods of both everyday and individual demand, and the rapid growth of scientific and technological progress, which leads to innovations in the life of society. All this is impossible without the existence of information, financial, transport, insurance and other types of services. Services are also an integral component of trade in goods (especially technically complex ones), since the sale of goods requires an increasingly developed network, which consists mainly of services provided during sales and after-sales services.
In the context of the development of market relations, as well as economic and political cataclysms occurring in our country, significant changes are being observed in the service sector. Under the current crisis circumstances in Russia, the volume of services specifically inherent in a market economy (banking, financial, insurance, real estate, legal) is increasing significantly. The range of services related to the management and maintenance of government bodies, as well as law enforcement agencies, has increased. As the country's economy integrates into the global economic space, the import and export of services develops, and fundamentally new technological foundations for the functioning of a number of services, including information services, emerge.
There is an increasing expansion of the basis for the reproduction of market and non-market services. At the same time, market services are gaining an increasingly significant share in the total volume of services.
According to international statistics, over 40% of foreign investments are invested in the development of the service sector, which confirms the relevance, interest and vision of the development prospects of this sector of the economy.
2. Structure of the service sector
In global economic practice, it is customary to differentiate the service sector into two subsectors:
Production of material services
Production of intangible services.
The production of material services includes transport, housing and communal services, and trade.
The production of intangible services, in turn, includes education, healthcare, social services, art, management, insurance, etc.
What is the difference between these subsectors? If we consider the connection between the production of services itself and the material object, we can see the following differences. In the production of material services, this process is inextricably linked with the material object. For example, trade changes the ownership of these very material objects, just as transport changes the location of the object. However, in the production of intangible services, the material object is more divorced from the production process itself. In the latter case, most often the role of the object is a person. All of the above differences do not always clearly separate a material service from an intangible one. An example is tourism, since it includes transport services and at the same time excursion services. This means that in this situation, tangible and intangible services can be used in one type of service in the service sector.
The service sector (industry approach) usually includes:
Trade (wholesale and retail);
Food and accommodation services
(hotels, restaurants, etc.);
Transport;
Communication and information services;
Services for supply, procurement and storage of material and technical resources;
Credit, finance and insurance, real estate transactions and other services to ensure the functioning of the market;
Education, culture and art;
Science and scientific services;
Healthcare, including physical education and sports;
Household services (services for the maintenance and repair of housing, industrial and household services and utilities);
Personal services (non-production, household services, hairdressing salons, photo studio services, shoe shine, etc.);
Public administration services.
This industry classification of the service sector is in effect in many countries, including Russia.
F. Kotler, as the founder of marketing theory, proposed classifying services according to the following criteria:
First, is the source of the service people or machines? Among the services that originate from humans, there are those that require either professionals (restaurant business, management consulting), or qualified specialists (waiters), or unskilled labor (janitors, lawn care). Among the services the source of which is a machine, there are those that require either the presence of automatic machines (vending machines), or devices controlled by operators of relatively low qualifications (taxi), or equipment operated under the control of highly qualified specialists (airplanes, computers).
Secondly, is it necessary for the client to be present when services are provided to him? If the client's presence is mandatory, the service provider must accommodate the client's requests. Thus, restaurant owners decorate their establishments beautifully and play soft music.
Third, what are the client's motives for purchasing the service? Is the service intended to satisfy personal needs (personal services) or business needs (business services)? Typically, service providers develop different marketing programs for personal service markets and business service markets.
Fourth, what is the motive of the service provider (commercial or non-commercial) and in what form are the services provided (individual or public service)? The combination of these two characteristics results in completely different types of service systems.
It is also possible to classify services according to other criteria:
a) by the amount of capital costs;
b) according to the level of qualification of the performers;
c) by the complexity of technological processes;
d) by the social status of the clientele (individuals and legal entities).
In the literature one can also find a division of the service sector into three sectors:
tertiary - infrastructure (transport, communications, electricity and heat transmission);
quaternary - distribution and exchange (trade, insurance, finance);
five-fold - social and managerial (management, science, education, healthcare, art).
2.2 Evolution of the service sector
The next aspect that needs to be considered when studying the topic of the service sector is the evolution and development of the service sector from ancient times to the present day. At the very early stages of human development, the service sector already existed in its various manifestations. As progress developed and new types of material production appeared, the service sector also improved. Deep transformations of the public consumption system have given an even more powerful impetus in this direction.
The very first manifestation of the use of the service sector in the social structure of society was noticed in primitive society. For example, each tribe had leaders, they were in some way administrative subjects, that is, one of the areas of administrative activity in the service sector. Shamans and priests also provided social services. The army, in turn, provided property protection services. Historical sources indicate that in ancient society such service sectors already appeared that were very similar to modern ones. For example, there was trade, transport, education, art, army, healthcare. Until the end of the 19th and beginning of the 20th century, these areas were improved and communications, management, marketing, audit, and insurance were added to them. With the advent of a new era of human development in the conditions of high technology and a scientific and technological boom, the industrial economy is changing to a post-industrial one. This entails an increase in the production of services per capita.
However, until the mid-20th century, the service industry was considered a minor part of the global economy. This area was mainly occupied by people with a low level of education. The reason for this was the erroneous opinion that the service sector does not bring a sufficient level of income to the economy and is not in demand among the population. During Soviet times, the service sector developed very slowly compared to Europe and the USA. Only after the scientific and technological revolution did the service sector begin to occupy a significant place in the economies of many countries. It is no coincidence that the post-industrial era is rightly called a service era.
Improving people's living standards, as well as taking the economy to a new level, has made it possible to increase the production of intangible products. The Second World War had a very negative impact on the development of the service sector, since at that time industrial production became the main sector of the economy. In countries on whose territory military operations took place, the material base of service industries was destroyed to one degree or another and after the war did not meet even the greatly reduced needs. In the post-war period, the rapid development of service industries was largely resumed, and the position of this sector in the economic structure is steadily expanding.
In the mid-20th century, the United States became a leader in the level of development of the service sector. However, not only the United States is investing heavily in this sector of the economy, but also developing countries are seeing a sharp growth in the service sector. From all of the above we can draw the following conclusion. The service sector, having gone through a long path of development and undergoing many changes, is currently at the same level, and in some countries even higher than such sectors as industry and agriculture. The most important pattern of the evolution of the service sector is that it does not develop in isolation from material production in the integration of these types of activities, and the efficiency of the modern economy largely depends on the depth of integration.
3. Features of the service sector in the modern world
The very concept of providing services involves special attention to a person from a psychological point of view, as a client. Direct your attention to meeting needs, be prepared in advance for difficult situations in the service process, since each client is an individual. Any request and desire must be fulfilled for the quality of the complex, since any discrepancy or omission in working with the client entails a negative mark on the entire reputation of the service facility or entity. Therefore, most modern companies operating in the service sector have rules.
Firstly, all company employees are aimed at implementing the company’s main business process - quality service to customer requests. Secondly, in order to qualitatively satisfy client requests, employees who directly deal with clients must reach the level of one-on-one interaction - a personal, not impersonal approach to each client, but starting, oddly enough, with a correctly learned role.
The service sector has a number of distinctive features and operating mechanisms that cannot always be strictly classified, since changes in customer demand, the emergence of new services, as well as a high level of variability in consumed intangible goods dictate new trends and force us to reconsider old rules in servicing consumers of certain types. other services.
We can only summarize the main features of the operation:
First, unlike goods, services are produced and consumed mostly simultaneously and cannot be stored. This gives rise to the problem of regulating the demand and supply of services.
Secondly, services are often contrasted with products, although in industry the role of service is increasing, which may include equipment repair, after-sales service and other services related to the sale of goods. It can be said that in many cases there is a product element to a service, just as there is a service element to the sale of a product. The close intertwining of the sale of goods and the provision of services makes it difficult to isolate and account for services.
Thirdly, the service sector is usually more protected by the state from foreign competition than the sphere of material production. Moreover, in many countries, transport and communications, financial and insurance services, science, education, healthcare, and utilities are traditionally fully or partially owned by the state or are strictly controlled and regulated by the state. The import of services, according to the governments of many countries, can pose a threat to national security and sovereignty, so it is regulated more strictly than trade in goods.
Conclusion
service sector society
In conclusion, it is worth emphasizing that the service sector itself is young and is being modified at tremendous speed. Currently, the service sector is one of the most promising, rapidly developing sectors of the economy. It covers a wide field of activity: from trade and transport to financing, insurance and intermediation of all kinds. Hotels and restaurants, laundries and hairdressers, educational and sports institutions, travel agencies, radio and television stations, consulting firms, medical institutions, museums, theaters and cinemas belong to the service sector. Almost all organizations provide services to one degree or another.
Despite some features of this area that complicate work with clients, throughout the world over the past 20 years there has been a high increase in labor productivity in the service sector. The concept of “services” in mass perception is increasingly identified with a complex of high-tech and intellectual business and financial services, as well as with the branches of science, education and healthcare. The wave of renewal also captured traditional industries: trade, transport, consumer services, recreational industries, etc.
In addition, the very concept of “service sector,” without exaggeration, is comprehensive. It includes household, medical, legal and many other services, that is, it not only affects all aspects of people’s daily lives, but makes it truly high-quality and complete. For this reason alone, it would seem that service - in the broad sense of the word - belongs to those areas of business that do not require special support from the outside. After all, people are willing to pay money, and sometimes considerable money, for the services they provide.
The service sector, as we already know, belongs to the tertiary sector of the economy, but in conclusion it should be emphasized that the rapid development of the tertiary sector, and especially the sphere of production services, is an inevitable condition and prerequisite for the civilizational transition of the economy to the market, post-industrial stage of development.
Bibliography
material service society
1. Belyaev M.I., “Myology”. Moscow, 2000
2. Demidova L.S. “US Service Industry: Factors Accelerating Dynamics”, Moscow, 2005.
3. Kulibanova V.V. Marketing: Service activities. St. Petersburg, 2006.
4. Kulibanova V.V. Service activities. St. Petersburg, 2007.
5. Morozova E.Ya., Tikhonova E.D. Economics and organization of enterprises in the social and cultural sphere. St. Petersburg, 2005.
6. Pesotskaya E.V. Services marketing. St. Petersburg, 2000.
7. Portal of the consumer services market - www.marketcenter.ru
8. Rodionova I.A. "World economy. Industrial sector", St. Petersburg, 2002.
Tarushkin A.B. "Institutional Economics", St. Petersburg, 2004
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The concept of technology in the service sector. Areas of application of new technologies in the service sector
Information technology (IT) consists of computer and telecommunication technologies. Computer technology is based on hardware and software and is necessary for storing and processing data and information. Telecommunication technology also consists of related hardware and software and is used to transmit data and information. At the same time, at present there is also such a concept as new information technologies, based on new information and computer means of obtaining, storing, updating information and knowledge.
It is safe to say that all service companies use new technologies. However, the level of sophistication of technology and the extent of its application varies across industries. This is largely due to the nature of the activity. Some organizations, such as telephone companies, software companies, and Internet service providers, are in the emerging information technology field. Other firms invest in technology mainly to stay competitive.
The main reasons for investing in new technologies:
1. Maintaining or expanding market share. Some companies often use market share as a key measure of their performance, although it can sometimes be an inappropriate, misleading indicator. Some service firms may feel pressured to invest heavily in technology to maintain market share, even if there is no need to increase output or productivity.
2. Avoidance of risks or opportunity costs. Some organizations invest in technology to reduce or completely avoid possible risks. For example, hospitals are investing in modern technology to avoid malpractice litigation while also benefiting from improved diagnostic and treatment options brought about by new technology. Airports install explosive detectors to prevent terrorist attacks. In the same way, many airports install modern radar systems to detect changes in wind speed, which often causes aircraft accidents near or on airport grounds.
3. Creating flexibility to respond to changes in the company's economic environment. The economic situation in the market is constantly changing. Changing degrees of government intervention (as well as non-intervention) in a country's economy, increased competition, increasing complexity of processes and changing consumer tastes all contribute to the uncertainty and degree of complexity in the environment in which service firms operate. Flexible information technology systems often help cope with rapidly changing environments.
4. Improving the internal environment of the company. Many firms are investing in technology to make work easier for employees and create a positive work environment by eliminating tedious tasks and making work more fun.
5. Improving the quality of services and interaction with clients. Quality and customer satisfaction are the focus of many service firms today. Some dimensions of customer satisfaction and service quality include reliability, stability, accuracy and speed of service delivery. When information technology is used effectively and competently, it can enable a company to deliver all of these elements to the market to achieve long-term customer commitment.
Technology as a competitive advantage
Despite the disconcerting lack of a positive relationship between information technology investment and productivity, there is no denying the enormous impact that technology has had and continues to have on our lives through many products and services.
If a company is an early adopter of technology and uses it competently, it gains an important strategic advantage over its competitors. Competitive advantage is what sets a company apart from its competitors. A competitive advantage may be speed of service delivery, increased package size, lower price for the same quality, or better “fit” to customer needs, and technology is what can help achieve these goals.
Whether by keeping abreast of technological advances or conducting research on their own, companies today are aggressively seeking competitive advantage.
It is very common for advertising claims to proclaim that the advertised company's product is “new,” “brand new,” or “new and improved.” It is therefore appropriate to shed light on what options exist for an organization when planning the development of new services.
1. Significant innovations. These are “new services all over the world”, the markets of which are not yet precisely defined and sized. They involve a high degree of uncertainty and risk. A striking example of this type of innovation is: overnight delivery of small parcels introduced by Federal Exp ress, space tourism, and the provision of the opportunity to use Internet services while flying on an airliner.
2. Launch of new activities. Using existing services already recognized by consumers, they offer their application in new conditions. For example, healthcare organizations that offer general practitioner services, laboratories, and x-rays may also offer pharmacy services under one roof so patients can get all the services they need in one place. Car security alarm installation services can be offered at car repair centers.
3. Development of new products for an existing service market. This category offers new services to existing consumers that were not previously offered by the service company. Examples include banks that introduce their own card (Visa or MasterCard) or offer investment funds, insurance services for bank depositors, as well as museums that open gift and souvenir shops and restaurants for visitors.
4. Expansion of the product range. Additions of services to an existing service line that increase the current offering are called product line extensions. This may be due to increased technical capabilities or maintenance requirements. Examples include services offered by the telephone company, such as caller identification, number redial (when the desired subscriber's number is busy). This category also includes new airline routes and new university lecture courses.
5. Product improvement. Product improvement consists of changing certain characteristics of a service in order to provide consumers with better quality or increased value of the service. This may be in the form of faster service or embellishment, e.g. adding various properties that improve the appearance of the service. For example, many ATMs print out your account balance after each deposit or withdrawal. Another example is the free car wash that some agents provide during car sales when performing routine services such as engine oil changes.
6. Change in product style. This is a more modest means than a highly visible product improvement. This category includes the renovation and restoration of the building or premises where the service is provided, as well as new uniforms for employees, a new company logo. An important place in this case concerns the aesthetic properties of services, which are determined by style, fashion and design.
When discussing service design and creation, we will assume that the new service falls into one of the first three categories.
Factors driving the creation of new services
The main reason for developing and creating a new service is the desire to meet new and changing consumer needs. There are also other reasons, the most important of which are:
Financial goals. The management of many service firms is under constant pressure to meet financial targets related to profit, market and revenue. These goals can be achieved by improving quality and customer satisfaction for existing services. Another way is to introduce new services. As has been shown, there are several degrees of “newness” for services. However, only the first three of these categories are most likely to increase market share and revenue and help the organization achieve its financial goals.
Actions of competitors. One of the strongest motivations for creating a new service occurs when competitors introduce new services that are gaining acceptance among consumers. Idle time and inactivity usually lead to a decrease in market share and profits.
Globalization Increased global trade and foreign direct investment have created new markets and created new opportunities for service firms. This creates a need to develop new services or modify existing ones in order to meet the needs of different countries and cultures.
Technical and technological progress. Along with new products, new needs are created, which, in turn, require the creation of new services.
New consumer products. New consumer products such as VCRs and personal computers have created a need for related services: video tape rentals, tape and computer maintenance, and training services for developed accounting programs.
New equipment. Advances in engineering technology help manufacturers introduce new equipment and improve existing ones. This, in turn, leads to the introduction of new services. For example, faster computers increase data storage capacity and computation speed for all types of data processing, hence making it possible to create new and complex software. The invention of the ATM made banking services available 24 hours a day.
Electronic networks. Electronic networks such as the Internet and the World Wide Web are among the most important technological developments of the late 20th century, making possible the creation and delivery of many new services.
Increasing or decreasing the amount of government intervention in the economy. Some important industries are exempt from government regulation: transportation by road, telecommunications, banking, financial, educational services. This has allowed many companies to enter markets that were previously closed to them and offer new services. While legal restrictions have been removed in some areas, they have been created in others, such as environmental and consumer protection laws. Such laws typically create a need for new legal, engineering and consulting services specializing in environmental and consumer issues.
Franchising growth. Franchising is a type of licensing when the company that owns a well-known trademark allows another company to put this trademark on its products, but at the same time receives the right to control the quality of the products, an initial payment and a percentage of the gross profit. This system makes it possible to distribute new services to other markets while maintaining high product quality.
Balance of supply and demand. Many service firms experience significant fluctuations in demand for their services. Product manufacturers can cope with this problem by stocking inventory when demand is lower than supply and using inventory when demand exceeds supply. The temporary nature of most services precludes service firms from taking advantage of this opportunity. Therefore, when demand is lower than supply, expensive equipment and personnel sit idle. A more realistic alternative is to offer services that have the opposite cycle to the existing set of services. In other words, service firms facing fluctuations in demand may try to develop new services that will be in higher demand when demand for existing services is low, and vice versa.
Development of new products and services: similarities and differences
The first similarity between products and services is that they are designed to provide customer problem solving, satisfaction, or benefit: “Kodak sells memories,” “Revlon sells hopes.”
The second similarity is that the development of both products and services is a product of human activity. First, the human mind generates some new idea, and then calculates how it can be implemented.
The third similarity is that consumers rarely demand the creation of a particular product or service. Consumers may express some needs, but usually cannot clearly name them in terms of goods and services, but they readily respond to what is offered to them.
Now let's note some important differences.
1. Demand for raw materials and resources. Making a product requires many resources such as raw materials, semi-finished products, labor and energy. In the service sector, raw materials are rarely used; tools and equipment are used, but they are not always necessary to provide services, especially intellectual ones. Airplanes are required for air travel services, but a couch is not required for mental health services.
2. Compliance with standards. Compliance with specifications and standards (type, quality and quantity of materials to be used, dimensions of various parts and tolerances) in the production of goods is very important, since deviations exceeding the tolerances will lead to the production of defective and sometimes even dangerous goods. When development is completed and product production has begun, all products must be identical to the prototype and to each other.
The result of service development is a concept and a description of the process of implementing this concept. Service design may create standards, but usually there are very few of them, and deviations from these standards do not necessarily make the service “defective” or lead to undesirable consequences. A service can be tested in a benchmark experiment, but each subsequent execution will be different because different consumers and service providers are involved in the process. Once the development is complete and the service is offered to the consumer, no two executions of the service are exactly the same, just as each consumer's experience is unique.
3. The complexity of making changes. Changing a product is becoming increasingly expensive. This is usually expressed by the 85/15 percentage rule, which means that approximately 85% of a product's cost is determined by decisions made during the first 15% of its development period. Once product development is completed and committed, it is not easy to change it, since production will have to carry out exactly the same development again for all components. Service development, on the contrary, is not a static or rigid documentary source; modification and adaptation are possible during the implementation process, moreover, sometimes it is even necessary to meet the diverse needs of consumers. In addition, changing the design of a service does not entail as many costs as changing the appearance of a product.
Tools for service development
Many service quality problems can be solved by incorporating quality issues into the design of the service and delivery system.
Using integrated design. Product development and creation consists of many steps, such as idea generation, determination of technical and financial feasibility, process and prototype development, packaging and distribution system development. The traditional approach is to perform all these actions in a sequential manner. One of the problems with the traditional approach is that the entire development process takes too long. For example, American car manufacturers used to spend about five years to design and assemble a new car model, while the Japanese did it in three years. This means that developers and production engineers did not communicate with each other. Typically, technologists find many weak points in the project, for example, parts that cannot be produced in the way intended by the developer, and in these cases the project is returned for revision. This procedure could be repeated several times during the development process. When the problems between the developer and the technologist are completely resolved, they move on to issues of material supply to determine which components need to be purchased. Inevitably, design problems arise again as some parts turn out to be too expensive or take the supplier a long time to produce. The project is returned to the developer again.
Japanese manufacturers use an approach that involves teamwork with overlapping functions (integrated or simultaneous design). One of its main advantages is that all functions (development, production, supply, distribution, marketing, etc.) are represented in the project group and their representatives interact with each other.
To develop and create a service, this is not only a mandatory approach, but, as a rule, requires the participation of service employees:
· service personnel are psychologically and physically closer to consumers, and, therefore, can determine their preferences;
· employee involvement increases the likelihood of their recognition and understanding of new services;
· they will warn developers against organizing a structure that will suppress the interests of consumers;
· service employees are an important source of useful ideas for improving the quality of services.
Reliable design. The core idea of robust design is to create a product whose performance is not affected by adverse environmental conditions outside of normal operating conditions. For example, a pocket calculator should not be dropped or used in a hot or steamy environment. However, if the calculator can withstand these harsh conditions, it is said to be a durable product.
Service providers and consumers are people with their own strengths and weaknesses. The differences in personality and demographic characteristics that they reveal can create situations that fall outside normal operating conditions. However, it is possible to calculate maintenance situations under possible emergency conditions and evaluate ways in which these situations can be prevented.
Po k a -Uo k e, or fault tolerance methods. Roka-Woke (Japanese for "avoid mistakes") are devices and procedures that signal when errors may be made. The Roka-Woke warning signal indicates the existence of a problem, and the Roka-Woke control system stops production when an error occurs and forces the operator to correct it before continuing work. However, error prevention actions should be developed not only for employees, but also for consumers when they are involved in the service delivery process. There are many ways in which Rock-Walk can be adapted for the service industry:
In banking, for example, managers believe that eye contact with consumers is very important, and to ensure such contact, they require tellers to note on a check sheet what color the customer's eyes are before beginning the transaction.
If a set of surgical instruments is placed in special recesses on trays, and at the end of the operation you make sure that the set is complete, you can avoid the mistake of leaving the instrument in the cavity of the person being operated on.
Stands in amusement parks will protect vacationers from moving mechanisms.
Establishing a chain to order the queue will prevent conflict from occurring.
Sound signals in vending machines will remind the subscriber to pick up the card.
Installing a bell on the door of a car service station will prevent a customer's arrival from going unnoticed.
Attaching a serial number to each arriving vehicle will ensure that customers are served in the order of their arrival at the station.
Benchmarking. Benchmarking was developed by Hegoh Corporation in the late 1970s. as a result of one of many quality improvement programs. Benchmarking is a type of business process optimization in which the “ideal” business process is not built speculatively, but is borrowed from outside or inside (let’s say, in another department). Benchmarking is not just about copying the ideas of other organizations. Its main goal is to understand what levels of execution are possible for various processes, as well as to obtain knowledge from the best performers, including from other areas of the business. Service firms already use benchmarking for existing services. For example, Marriott used benchmarking to borrow from fast food companies' processes for hiring, training, and paying employees, and from Disney World's practices of parking cars and working with employees on quality improvement programs.
Service Design Principles
The enormous diversity of services raises an important question: are there uniform principles that apply to service design, or is each service so unique that there are few principles that apply across all sectors and services? Although each service is unique, there are basic principles that can and should be applied to service design if the goal of service development is to create value and customer satisfaction. The main principles of development and creation of services:
1. Know your customer (market segment definition). Consumer knowledge involves learning all possible and necessary information about the target market at an acceptable cost, including demographic information - age, gender, income, geographic distribution of the population and lifestyle. Such information helps the organization determine the needs of potential customers. Whenever possible and economically feasible, information about consumers may be obtained directly from them.
2. Determine which consumer needs must be satisfied. Obviously, consumers have many needs. It should also be obvious that an organization cannot satisfy all the needs of all customers. A service that will satisfy a basic need will be a basic service. There are usually other services that provide additional benefits to consumers. These are called additional services. Additional services are developed and offered to meet needs that may not be common to all consumers. They are often optional and may incur additional costs (information, consultation, order acceptance, storage, exceptions, hospitality, invoicing and payment transactions, easy to understand service price document).
Not all additional services are suitable for all types of services. Some of them are required for the delivery of the core service. Without them, maintenance becomes impossible. The relative importance of value-added services depends on the nature of the service. Obviously, a service firm that is unable to deliver a core service will not survive for a relatively long time; Therefore, providing the core service without failure, at the level expected by customers, is the first and fundamental step in creating value. The system must be designed to deliver the core service flawlessly. Failures in core service represent a failure of service and organization in the eyes of the customer, no matter how well the additional services were designed or delivered. However, a good provision of a basic service is almost never enough to compete successfully in the market, since there are competing companies that can also provide the same services without failure. Therefore, a service firm can create more value for customers by increasing the variety of additional services that are highly valued by the customer and delivering them in the way the customer expects. The definition of core and supplementary services leads to the creation of a “service concept”.
3. Develop a service strategy and position the service for competitive advantage. The key question to answer here is: “How do you differentiate your service from your competitors and what is the basis on which you offer value to consumers for the price of the service?” The first part of this question is related to the “strategic vision of the service”, the second is related to “positioning”. Differentiation is the main driver of competition. An organization can differentiate its services based on various benefits, including cost, reliability, uniqueness of benefits, speed, service personalization, convenience, accessibility, prestige, or longevity. The service must be ideally positioned, that is, create a unique place for it in the eyes of consumers relative to the services of competitors.
4.Develop service, delivery system, human resource requirements and physical assets simultaneously. This principle can be expressed as: “Use comprehensive planning.” When applied to service development, integrated planning includes the simultaneous or parallel development and creation of a service and its delivery system, the creation of personnel selection criteria and the selection of a location. In other words, development should be a team effort with representatives from all parties that will be involved in creating and delivering the service. If possible and economically feasible, customers should also be included in the project team.
5.Develop a service process from the perspective of consumers/employees. Once the right service concept is in place, the most important aspect of development is the design and creation of processes. Since almost all services are essentially processes, the service process requires special attention.
If the recipient of the service is the consumer's body (a medical examination in a hospital) or his mind (for example, a concert), then the process must be designed from the consumer's perspective. This should be emphasized because often the interests of various departments, such as accounting, human resources and transportation departments, dictate the parameters and nature of the process. As a result, it turns out that the consumer's waiting time increases, unnecessary tasks arise that he must solve, and a lot of time can be wasted in vain.
If the recipient of the service is the consumer's property or information, and the consumer is not required to be present during execution, then the process design must be done from the perspective of the service provider. That is, it is necessary to make sure that the service provider can provide it with the least amount of effort, and the process of providing the service is as pleasant as possible for him without harming the consumer.
6. Minimize omissions. The process of providing many services involves the involvement of clients or their property in the process. This usually increases the likelihood that something may not work correctly. The problem is usually caused by a lack or lack of communication. To reduce such problems, the service should be delivered by one service person from start to finish. If such a system is not possible, then a team approach can be followed: team members work together and are responsible for specific customers from the beginning to the end of the process.
7. Develop covert regulatory operations to support overt operations. Overt or office operations are those encountered by purchasers of services and those in which opinions about the service and the organization are formed. However, virtually all transactions that are invisible to the consumer affect open transactions and, consequently, consumer satisfaction. That is why it is so important to take this dependence into account when developing a service system. For most services, the hidden processes are very similar to manufacturing processes, and the premises in which these processes occur can resemble a factory. Above all, behind-the-scenes processes must be designed so that direct-to-consumer offices can run smoothly.
8. Incorporate data collection into process design. Service firms require data to monitor and evaluate customer satisfaction, to perform measurements and for quality improvement efforts, moreover, data is needed for accounting and management decision-making. The data collection mechanism established after the service has been delivered to consumers creates problems and makes the service provider's job more difficult. The data needed to monitor service delivery should be identified during service development and incorporated into the service system to minimize any additional work required from the employee or customer.
9.Determine the degree of consumer contact and participation. Customer involvement in the service process creates many challenges for management because it requires the customer to have a specific set of skills. Increased involvement often implies higher risks of errors and therefore higher costs. For most services, it is their nature that determines the degree of contact with consumers.
However, these settings can usually be changed. For example, if an organization seeks to reduce customer involvement in the service delivery process, it may automate certain aspects of the service.
10.Build flexibility and reliability into the system. There will always be consumers whose needs create situations that were not intended by the designers. There are also system failures caused by external factors such as natural disasters, power outages, and vendor errors. The maintenance system must be able to respond to these unplanned situations and continue maintenance. A very important step in this direction is the creation of flexible rules and processes. Rigid rules and processes make it difficult for employees and frustrating for consumers. It is very important that employees respond quickly and decisively to the situation and ensure customer satisfaction.
It should be taken into account that processes hidden from consumers, which can be characterized as a “production” type of process, have less flexibility than open ones.
11. Create a commitment to employee and customer service. The model for generating income in the service sector can be represented as the following chain:
· profit and growth of the company are associated with customer commitment,
· customer commitment is related to customer satisfaction,
· customer satisfaction is related to the value of the service,
· the value of the service is related to the productivity of employees,
· employee performance is linked to commitment,
· employee commitment is linked to their satisfaction,
· employee satisfaction is related to the internal quality of work life.
Various mechanisms can be used to encourage customer loyalty, such as airline frequent flyer programs or hotel frequent flyer programs.
Fair remuneration, bonuses, respectful treatment and a pleasant place to work are the main components of employee satisfaction. Employee satisfaction depends on opportunities for promotion, rewards for work beyond standard requirements and empowerment
12. Continuously improve service. Product development is typically a difficult and expensive process. Service development changes are relatively easier to implement and usually cost much less. This gives most services a significant advantage. They are easier to change and improve both when receiving data from consumers about changing their needs and when competitive conditions change. In other words, services undergo continuous improvement more than products. A continuous improvement process must accompany the maintenance process.
Service development process
The idea of creating a new service is the result of human creativity. Although creativity cannot be programmed, designing and creating a service must be a well-thought-out and organized undertaking. Since the design and creation of services does not have a long history, most models proposed for the service industry are modifications of processes originally developed for goods. Consider the model proposed by Scheuing and Johnson, which goes beyond simply modifying the manufacturing model and takes into account the complexity of service development. It consists of 15 steps and can be divided into 4 stages: direction, development, testing and market development.
Direction
1. Formulation of goals and strategies for the new service. The service strategy should support the overall strategy of the company and be aimed at satisfying the selected needs of consumers in the target market. The strategy must be a solution to how to ensure that the value of the service exceeds the costs, and a service is created that creates such value for the consumer that he will buy it at a set price.
2. Generating an idea. Ideas for creating new services come from a variety of sources, including customers, their complaints, service employees, competitors and suppliers.
3. Thorough testing of the idea. This step involves a rough screening process, separating promising ideas from all others. Naturally, not every idea for creating a new service has value, and only a few will succeed in the market as new services. Feasibility and potential profitability are the main criteria in this process. Care must be taken to ensure that ideas are not put aside just because they seem unusual.
Development
4. Concept creation. The selected ideas are developed into a service concept. A service concept is a description of the set of benefits, solutions and value a service proposes to provide to consumers.
5. Concept testing. The purpose of concept testing is to eliminate from further consideration service ideas that would be unattractive to customers. A new service concept test is a research method designed to evaluate:
Does the user understand the idea of the service being offered;
Does the service respond favorably;
Does he realize that the proposed service will resolve his unmet needs.
The need for management in the service sector. Management concept. The main stages of management evolution. Marketing management concept. Specific features of the service sector. Management model in the service sector. Characteristics of services and their impact on the management system. The main problems of management in the service sector and ways to solve them.
Radical reform of economic management is the basis of market transformations being carried out in Russian society. The reform fundamentally affects the service sector, which, like any other sphere of activity, objectively needs management. Management is a targeted influence on the service sector with the aim of focusing it on meeting people's needs, increasing operational efficiency and ensuring an acceptable level of profitability.
The quality of management predetermines both the results of the service sector and the choice of ways and means to achieve them. The role of service sector management is important in promoting the growth of the efficiency of social production by creating conditions that free up the population’s time and are conducive to highly productive work.
In connection with the implementation of the policy of ensuring social priorities, when a person moves from the periphery of the economic interests of society to their center, the role of the service sector increases significantly, and at the same time the requirements for the organization of its management.
The twentieth century has experienced the powerful influence of management on all aspects of the life of society, organizations and people. It was during this period that management emerged as a science that was able to summarize the rich practice of management and developed sound recommendations for its improvement. Numerous and diverse in their approaches and content, theories and schools have significantly expanded the understanding of management as an independent field of knowledge and the possibilities of its application. Therefore, the principles, forms and methods of management have spread from the sphere of business organizations to institutions of science, education, healthcare, religion, they are actively used in art and politics, which until recently was considered almost impossible.
Management, as a practical activity, originated about seven thousand years ago. As a science, management began to take shape at the end of the 19th century and went through several stages in its development.
First stage ( end of the 19th century – 30s of the twentieth century) – individual fragmentary studies in the field of enterprise management become the basis for the formation of scientific schools and directions; Management is becoming established as an independent science and a separate type of business activity, as well as the separation of management from property.
Second phase(30s – 60s) – management is based on the economic foundations of a rigid vertically integrated management system with a clear distribution of responsibilities between departments and performers. Of particular importance is the study of problems of labor motivation, the human factor, and the influence of groups on the behavior of workers.
Last, third stage (from the 60s to the present) is characterized by the fact that an informal, flexible management system has prevailed, based on a horizontally integrated motivational model using predominantly divisional departmentalization. Much attention has been paid to studying ways to enhance the behavior of people in an organization.
In addition, in the mid-50s, signs of chronic overproduction began to appear in developed countries; the market was oversaturated with goods. Under such conditions, production could no longer develop in the direction of unlimited self-expansion. There was a need to develop a different strategy. Economic science, which previously traditionally focused attention on the production sector and solved the problems of increasing efficiency and modernizing this sector, regardless of the influence of the consumption sector on it, also responded adequately to these changes.
Marketing theory received widespread practical application during this period. The development of marketing had a direct impact on the management of the company. The close interaction between marketing and management led to the emergence of a new term “marketing management”. The most important principle of the marketing approach to company management is the target orientation of all elements of the production system, as well as the production and social infrastructure serving this system, to solve problems that arise for potential consumers of goods and services brought to the market by the company.
The marketing concept of management is of particular importance for enterprises and organizations in the service sector, whose activities are directly focused on clients (consumers) and significantly depend on their requests.
The marketing orientation of management is the main, but not the only distinctive feature of modern management. In order to find out other features and problems of service sector management, it is necessary to briefly dwell on the specifics of this sphere of activity and its difference from the sphere of material production.
The service delivery system, according to B. Karlof, is similar to the production and distribution system in an industrial company, although it is often presented in a completely different form. And the service management system, according to G. Assel, is similar to the product management system.
At the same time, there are a number of specific features of the service sector that distinguish it from the sphere of material production:
1) as is known, the services themselves have characteristic features (intangibility, heterogeneity, unstorability, inseparability of service provision from consumption). Services are often contrasted with products, although, as P. Doyle believes, “pure goods and services are rather a scientific abstraction. Most sales proposals are various combinations of tangible and intangible elements.” As Professor T. Levitt writes: “Service industries, as such, do not exist. It's just that in some industries the share of services offered is higher than in others. Everyone provides services.” Thus, most manufacturers provide customers, along with the goods, with delivery, repair and maintenance services, insurance, consulting and personnel training. The airline, along with transporting passengers, offers them lunch, drinks, magazines and newspapers." This opinion is shared by B. Karlof, who points out: “The concept of a company operating in the field of intangible production should be used with some caution, since the production of many industrial products is currently accompanied by the provision of a wide range of services.” To resolve this apparent contradiction, one should turn to the classification of services proposed by G. Assel, according to which all services are divided into services related to goods, services based on the use of equipment and services based on human labor. The characteristic features of services increase and are most clearly manifested as we move from the first group of services to the third;
2) not only the types of services are diverse, but also the organizations that can provide them: government agencies (education, healthcare, transport, information and other services), commercial organizations (banks, insurance companies, advertising agencies, etc.), as well as non-profits structures (providing charitable, entertainment, educational and other services);
3) services are provided not only by specialized industries and service firms, but also by manufacturing enterprises (product delivery, repair and maintenance, insurance, consulting and personnel training, etc.). As P. Doyle points out, “many manufacturing firms are actually service enterprises. About half of production costs relate to the purchase of services (eg advertising, transportation, financial services). More and more employees of manufacturing firms are engaged in design, marketing, finance, after-sales service, rather than in the production of goods";
4) services are aimed both at individual consumers (for example, medical institutions, catering establishments, consumer services) and at meeting the needs of firms and other organizations (for example, the provision of business services: technical, accounting, auditing, legal, etc.);
5) a direct relationship exists between the growth of household incomes and an increase in demand for various services, for example, those that allow one to get rid of routine duties (cleaning the house, cooking, etc.) associated with leisure activities (art, sports, recreation, etc.).
The listed features influence the formation of a management system in the service sector.
Service management model, proposed by B. Karlof, looks like this (Fig. 1.1).
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Rice. 1.1. Service management model.
The service management model begins with a market niche (market segment) and then, moving counterclockwise, leads to the concepts of “service concept”, “service delivery system” and “image”. Image is viewed here as an information tool that management can use to influence staff, consumers and resource suppliers, whose perception of the company and its development prospects affects the firm's position in the market and cost efficiency.
The culture and philosophy of the company are of paramount importance, with their help management controls, supports and develops the social process, carried out in the form of delivering services that benefit customers. Along with the organization of the delivery system and the development of a realistic service concept, the culture and philosophy of the company are the most important factors in long-term effectiveness. It is within a company's culture and philosophy that the values and morale that underpin its viability and success are shaped. Therefore, the issues of forming the philosophy and mission of a service company will be considered in more detail when studying the functions of management.
When developing a service delivery system, and, consequently, a management system, it is necessary to take into account a number of factors:
These differences in the service sector make managing operations in the service sector, according to V.D. Markova, more difficult than in industry, from the point of view of ensuring efficiency, and also determine the specifics of management in this area.
The main reason for the peculiarities of service sector management is the nature of the services themselves.
The process of providing services differs from the process of production and sale of goods in many characteristics, which determine the presence of features of management activities in service organizations.
So, intangibility services, making it difficult to demonstrate to consumers the expected result and quality of service provision before the start of their service, requires special attention of managers not only to the process of customer service itself, but also to other factors that indirectly indicate the quality of the service and are of much less importance in manufacturing industries: location and the interior of the premises, the convenience and design of equipment, the appearance and behavior of employees, the operating mode of the organization.
Heterogeneity services leads to the fact that their standardization is difficult and sometimes impossible. Therefore, traditional methods for the production of goods for planning, motivating and monitoring the activities of employees, based on the use of norms and regulations, are not always acceptable when serving consumers. Quality control of service provision becomes especially complex and requires special approaches, since it depends not only on the material and labor factors of the organization, but also on the specific client.
One of the main problems of management in the service sector is created by unpreservability services, which does not allow you to easily and quickly respond to changes in demand by creating inventories. This problem is less noticeable for services with relatively stable demand: room cleaning, audio equipment repair, etc. However, for services characterized by peak demand during the day, week or season - transport, medical, resort facilities, etc. – non-preservation of services leads to a sharp decrease in operational efficiency due to downtime of employees and equipment during periods of decline in demand and lost income during periods of its peaks, which forces managers, when making management decisions, to look for ways to reduce the impact of this problem, to use statistical observation methods that help determine the volume and structure of demand for services.
Since service provision inseparable from their consumption , the organization's managers are given specific tasks related to consumer participation in the process of providing services - training staff to be attentive and sensitive to consumers; creating favorable conditions not only for the client directly served, but also for others, for example those waiting in line; building an effective control system that allows you to separate the results associated with the work of employees from factors caused by the characteristics of the client. Many services are provided in the direct presence of consumers, so the organization’s chosen mode of operation should be convenient for the majority of clients. The degree of customer involvement in the service process varies across different services, from high (health care, education) to low (telecommunications). This, in particular, is related to the specificity of management methods in the provision of various services.
Thus, the main characteristics of services, management problems and ways to solve them can be presented in the following form (Table 1.1).
Table 1.1
Main problems of management and ways to solve them
| Service characteristics | Management problems | Ways to solve problems |
| Intangibility | Lack of goods; a service is an action or experience. Difficulties in providing standard samples: Providing services involves risk for the client. The service cannot be demonstrated: differentiation of offers is difficult. Lack of a patent system: free entry into the market for competitors | Encouraging satisfied customers, recommending them to friends and acquaintances, identifying opinion leaders and encouraging them to use the company’s services. |
| Development of tangible landmarks indicating a high level of service: appearance of the premises, equipment, employees, brand advertising. | Inseparability of service provision and consumption | Consumers are involved in the service delivery process. Involving consumer groups in the service process: the problem of control. A company providing services is represented by its staff: the perception of the company is determined by the client's attitude towards its employees. Terms of service are a distinctive feature of the service provider. Difficulties in expanding service companies: the need to create networks. |
Training staff to effectively communicate with clients: the art of listening, understanding the emotional state of another person, polite behavior.
| Service characteristics | Management problems | Ways to solve problems |
| Availability of premises that make it possible to simultaneously serve large groups of consumers. | Fast service: Core operations need to be streamlined and non-essential work eliminated from the service delivery process. | Creating a network of branches: the company has the opportunity to open standard service modules, for example, using franchising. |
| Continuation of the table. 1.1 | Heterogeneity | Standardization of services is difficult because their characteristics are largely determined by consumers. |
Features of management associated with the main characteristics of services determine the main problems that confront managers of service companies. Of the variety of problems listed in table. 1.1, the most important are those related to the human factor, which plays a primary role in service enterprises, namely:
quality control;
achieving high productivity;
personnel Management.
The very concept of “service quality” is ambiguous. This is due to the specifics of services and their main characteristics, which complicates the management of service quality. As a result of research conducted by foreign authors, ten criteria for evaluating services by consumers were identified, of which the first five take into account the quality of the results of service provision, and the last five – the quality of the service process.
The main criterion for consumer judgments about the quality of services is their compliance with expectations. If the perceived quality exceeds the expectation, the consumer will be satisfied with the service. If the results of the service do not live up to his expectations, the client will remain dissatisfied. The main task of the company's management is to ensure the quality of services that meets consumer expectations.
The gap between the expected and actual quality of services can occur for various reasons. Knowing and eliminating these causes will allow company management to improve their performance. The main reasons can be cited:
· incorrect assessment by managers of consumer expectations. The gap between the expected and perceived quality of services often occurs when management does not even try to find out what consumers expect from the company's services;
· misconception about the quality of services. Even if management correctly assesses customer expectations, managers are often unable or unwilling to devote company resources to correcting the problem. For example, many organizations that accept utility payments, banks, and stores have operating hours that are unfavorable for clients and have not changed for many years;
· low quality of service. The quality of services may not meet the standards or requirements of consumers for various reasons, but most often due to the fact that the company's employees directly serving customers are not sufficiently motivated or are unable to complete the task due to their low professional and qualification level. The reason for the low quality of service may also be the lack of appropriate material and technical base, for example, diagnostic and treatment equipment in institutions providing medical services;
· false advertising. Advertising that overstates the quality of services leads to a decrease in their perceived quality and disappointment to the client, because the result does not meet consumer expectations. If the level of service is deliberately exaggerated, the likelihood that even a high-quality service will receive a negative rating increases.
To solve the listed problems of service quality management, the company’s management needs to:
1) develop the right strategy: determine the target market and the most valuable service characteristics for consumers;
2) always follow high service standards;
3) carry out thorough and detailed preparation of measures to improve the quality of services:
Establish high and measurable criteria for the company’s performance;
Conduct training and incentives for employees;
Develop labor productivity monitoring systems;
Conduct consumer surveys, checking the compliance of services with established criteria;
4) convey only real promises to consumers.
One of the most significant problems in the service industry is low productivity. The objective reason for the complexity and sometimes impossibility of measuring the volume of services and labor productivity in service activities is explained by the lack of tangible results.
The magnitude of labor productivity in the service sector is based on the interaction of three factors:
1) the high degree of consumer involvement in the service process makes it difficult to standardize and automate this process;
2) services are usually characterized by high labor intensity;
3) non-preservation of services often leads to the emergence of excess capacity of the company.
An important management problem is the relationship between productivity and quality. For example, a doctor’s productivity increases when the standard time for seeing patients decreases. But the inevitable consequence of this is, as a rule, a decrease in the quality, and, consequently, the efficiency of the service.
The main ways to increase labor productivity without reducing the quality of services can be:
1) division of activities according to the degree of contact with the consumer.
Different types of services imply different degrees of consumer participation in the provision of services, for example, in medical and educational services the degree of customer involvement is very high, in the provision of postal utilities, telecommunications, etc. services – it is significantly lower. Many services involve both high- and low-contact activities, such as airline passenger check-in and baggage dispatch; work of the bank operator directly with the client and processing of account information; the work of a pharmacy pharmacist with a client and the preparation of medications.
The manager must divide the phases of the service process depending on the degree of customer involvement in them. At those stages of the service process that do not require close contact with customers, it is necessary to increase productivity by streamlining and speeding up the process. At the stages of direct interaction with the client - increase labor efficiency without compromising the quality of services;
2) pipeline approach to service.
This approach involves the automation of manual labor (for example, automatic car washes, the use of vending machines, ATMs), as well as the use of systems that reduce the number of service personnel (for example, supermarkets, fast food restaurants).
Until recently, such technological solutions were applied only to those services that gave a standard result, but given the constant technological progress, growing consumer awareness of technologies and systems, it can be concluded that the pipeline approach to service is already being applied, and in the near future will be widely used for those services that are performed in accordance with the individual requirements of clients. An encouraging example of this is the diagnosis and surgical treatment of patients at the Eye Microsurgery MNTK;
3) increasing the degree of client participation in the service process.
An effective way to increase productivity is to transfer clients to partial self-service: direct, without operator assistance, international and long-distance telephone calls; cleaning up after yourself dishes in some catering establishments; equipping hotel rooms with household appliances that allow clients to independently prepare tea or heat breakfast, etc.
Such innovations are based on knowledge of customer needs and behavior. Managers need to conduct preliminary testing of innovations, explain their benefits to clients in such a way that they are happy to accept the activation of their role in the service process;
4) establishing a balance between supply and demand.
The main reason for the discrepancy between the company's production capacity and the demand for services is the non-preservation of services. The main ways to increase labor productivity are:
· reduction of peak demand, which can be achieved through differentiated pricing, a pre-order system, and increased attention to customers who are forced to wait in line for services;
· increased flexibility of supply, which can be achieved by introducing part-time work, combining the services of several companies and more efficient use of equipment and personnel during periods of increased demand.
Special requirements in the service sector are placed on personnel management. Unlike production, where people influence the substances and forces of nature, the object of influence in the service sector is mainly a person with his needs.
In managing services that involve a high degree of customer involvement, paramount attention should be paid to the attitude of the company's employees towards customers. It is important for the company’s management to formulate standards of behavior for employees that would guide them to respect the requests of clients, i.e. use such an interesting socio-psychological phenomenon as the “client-oriented” type of behavior of employees in “hot spots”, where their direct meetings with clients take place.
There are always two principles in a person: rational and emotional, which is important to take into account in the relationship between a service worker and a client. When a client enters the office, it is necessary first of all to create an atmosphere of cordiality, care and goodwill. Professionalism, tact and politeness of employees are important here, especially those who first meet the client. If the client is greeted with a friendly smile, offered a cup of coffee or tea, and asked a few neutral questions, then this creates a certain positive attitude. In addition, the company employee gets time and the opportunity to evaluate the partner and choose the desired direction of the conversation.
What the employee says about the company and its services also plays a very important role. Staff must understand what exactly is being sold and how it can benefit the consumer, i.e. The professional training of staff is very important. For example, in a shoe repair salon, the receptionist and master must explain to the client that the work uses a very good glue: waterproof, durable, universal, as it glues leather, plastic, synthetics, etc., so the repaired shoes will last a long time.
In other words, the company’s employees must be able to tell the client that this is where he will receive high-quality services. But the professionalism of service personnel lies not so much in convincing the client, but in ensuring that this conviction itself comes to him from information about the company and from experience in using the services. It is the client’s independent awareness of the uniqueness of services in terms of quality, availability, usefulness, duration, etc. - the strongest means of attracting him.
The behavior of employees adequately shapes the image of the company. In this case, there is no need for its artificial creation.
Foreign experience, which is beginning to be actively used by Russian service firms, has developed a number of recommendations for the use of clientele type of employee behavior.
In order to attract a client, you must:
· take into account the composition and homogeneity of buyers;
· introduce original services;
· carefully consider the reference and information policy (instructions, descriptions, diagrams, addresses and telephone numbers of warranty workshops, etc.);
· ensure appropriate design of retail premises and offices;
· provide discounts to regular customers;
· introduce new forms of service (for example, field service, participation in fairs, service on orders, etc.);
· constantly expand the range, updating services;
· demand compliance with appropriate standards of behavior from company employees (constantly searching for new things, studying customer requests and adjusting them);
· be “open” to clients.
The general structure of customer-oriented behavior of company employees includes a number of elements.
The given example is one of the fragments of the “client” behavior of the personnel of a company providing services.
The “anti-client” type of behavior of the company’s personnel provides the answer to the question: “How to alienate a client?” This is facilitated by:
· maintaining the range of services unchanged;
· lack of guarantees for clients;
· incompetence of personnel;
· unsightly appearance of service items (for example, wrinkled clothes, unironed tablecloth and napkin set);
· cramped conditions and overcrowding in the sales area and offices;
· lack of services (assembling furniture, setting up computers, delivering bulky goods to the address, etc.);
· inflexible prices, lack of discounts;
· failure to take into account the needs of consumers and the infrastructure of the region in which services are provided (for example, the opening of an atelier for sewing exclusive clothing models in a city microdistrict where predominantly low-income groups of the population live);
· Inconvenient mode of operation for clients.
The “anti-client” type of behavior can also manifest itself in the business communication of company employees. The client may be put off by the following situations:
· the price previously agreed upon over the phone changes when the client appears in the office;
· failure to fulfill assumed obligations;
· branding on dirty, untidy workwear;
· poorly executed branding;
· lack of name and identification signs on the doors in the office.
The employees themselves can push the client away in the following situations:
· instead of showing interest in the client, they try to “get rid of” him;
· employees do not introduce themselves and do not have company identification marks;
· in an oral or telephone conversation one feels rushed;
· the client is asked to call back without explaining the reason;
· instead of a “real person” (a company employee), the client hears the “voice” of an answering machine, which blocks feedback;
· employees refer to being busy;
· employees search for information for a long time or do not have full information.
Thus, the situations described indicate the high demands placed on service sector personnel. Along with professional skills, employees must have a basic knowledge of psychology, aesthetics, and morality in order to more fully satisfy customer needs and a deep understanding of their tastes and desires. And for this they must be properly motivated. The importance of personnel management is also increasing due to the fact that the share of human labor in the service sector is significantly higher than in production, and an increase in the volume of services is achieved mainly through an increase in the number of employees, and not through organizational and technical ones.
The considered features and problems of service sector management affect the process of implementing all management functions. If the laws, patterns, principles and methods of management are almost the same for production and the service sector, then the main functions of management (planning, organization, motivation, control) have specific manifestations in various fields of activity. Therefore, in the following sections of the textbook we will dwell in more detail on the characteristics of management functions and the features of their manifestation in enterprises and service organizations.
s Control questions
1. What is the evolution of management systems and what is modern management?
2. What is the essence of the marketing management concept?
3. What, in your opinion, is common between the management of production and the service sector?
4. What are the main reasons that determine the management features of enterprises and service organizations?
5. List the most important characteristics of services that distinguish them from products, and explain their impact on the characteristics of management in the service sector. Give examples.
6. Describe the main problems of the service sector.
7. Try to define the quality of service.
8. What are the main factors influencing the quality of the service? Give examples of the influence of individual factors on the quality of results and the service process.
9. Using the example of a specific company providing services, consider the reasons for the insufficiently high (low) quality of customer service.
10. What actions should managers take to effectively manage service quality?
11. What are the main problems of labor productivity management in service enterprises?
12. Using specific examples, describe the main ways to increase labor productivity in service sector enterprises.
13. What are the most important problems of personnel management in the service sector and ways to solve them?
Questions for discussion at the seminar
1. The service sector: the state and main problems of its development: The need to manage the indication of services.
2. Characteristics of services and their impact on the management system.
3. Modern management problems in the service sector, ways and practical experience of solving them.
Ñ Basic Concepts
Service sector, management in the service sector, marketing concept of management, management model in the service sector.
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10. Management: Textbook. A manual for universities / Ed. Yu. V. Kuznetsova, V. I. Podlesnykh. – St. Petersburg: Publishing House “Business Press”, 2001.
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Service Planning
Planning: essence, purpose and constituent elements. Features and tasks of planning at service sector enterprises. Forecasting and its purpose. Goals in an organization in the service sector: their functions and classifications. Mission and philosophy of the organization providing the service. Strategic, tactical, operational and operational goals. Tree of organizational goals. Principles of effective goal setting.
Types of service planning and their classification. Strategic and current planning. Factors influencing the composition and structure of plans in an organization. Principles, stages and methods of planning in service industries.
Planning and goal setting in service organizations
The content of management in the service sector, as in other areas, is revealed in its functions, which arose as a result of the division and specialization of managerial labor. The process approach to management assumes that management is not some one-time action, but a series of continuous interrelated actions called management functions. It is now generally accepted that four basic functions apply to all organizations: planning, organizing, motivating and controlling.
Planning, being one of the main functions of management, allows us to ensure the effective functioning and development of the organization in the future and reduce uncertainty. Decisions made during the planning process form a complex system within which they influence each other, and therefore require mutual coordination to ensure their optimal combination in terms of the fullest use of the organization’s potential and the opportunities opening up to it.
There are planning in a broad and narrow sense. In a broad sense, under planning understand the decision-making process related to setting goals and objectives, developing strategies, allocating and redistributing resources. In a narrow sense, planning is the drawing up of special documents - plans that determine the specific steps of the organization in achieving its goals. Plan is an official document that reflects the final and intermediate goals of the organization and its divisions, as well as the methods and deadlines for achieving them. In conditions of market relations, plans are not given to enterprises from above, but are developed by them independently. The plan becomes the basis for the activities of organizations of all forms of ownership and size, since without it it is impossible to ensure consistency in the work of departments, monitor results, determine the need for resources, and stimulate the labor activity of employees.
Planning in the service sector has a number of features that complicate the work of drawing up plans for the activities of relevant organizations. These features are due to the specifics of the services themselves and the processes of their provision. If in material production there is a rigid fixed connection between economic factors (for example, time standards for all work performed, consumption rates of raw materials and supplies), then in the provision of services such a connection is more flexible. At the same time, the use of norms and standards is difficult or impossible, and the connection between economic or technological factors is largely determined by the consumer of services, his preferences, tastes, and capabilities. In most service sector enterprises, it is difficult to accurately determine, and therefore to justify planning, the total volume of services provided. Physical indicators may be unacceptable for this due to the diversity and incomparability of individual services, and cost indicators - due to the lack of an objective monetary assessment for a number of services and work performed (in education, healthcare, etc.) Since the activities of service enterprises largely depend on the volume and the structure of demand for services provided, planning in such organizations, unlike production ones, is more probabilistic in nature and solves several problems.
Ensuring the targeted development of the organization and all its structural divisions.
Timely recognition of future challenges and opportunities in service delivery. Development of specific measures aimed at supporting favorable trends or curbing negative ones.
Coordination of the activities of structural units and employees of the organization for the provision of services.
Creation of an objective basis for effective control, allowing to evaluate the organization’s activities by comparing the actual values of parameters with the planned ones.
Motivating the work activity of employees by presenting the degree of fulfillment of planned tasks for the provision of services as the main object of stimulation.
Information support for employees. Plans must contain information about the goals, terms and conditions of work to provide services to consumers.
Within the planning function, subfunctions are distinguished: forecasting, goal setting, etc.
Forecasting is a scientifically based prediction of possible directions for the future development of an organization, based on available practical data and assumptions regarding the dynamics of development of objects or processes. Forecasting is designed to solve the following problems:
Scientific prediction of the future based on identifying trends and patterns of development;
Determining the dynamics of economic phenomena;
Drawing up forecasts showing possible directions for the future development of the organization;
Determination in the future of the values of the final parameters of the organization’s development, as well as its behavior in various situations on the way to achieving its goals.
The importance of forecasting increases due to the fragility of services and the impossibility of storing them, which creates problems in responding to fluctuations in demand. In the service sector, forecasting is carried out, as a rule, to anticipate the dynamics of needs for specific services. For example, an increase in the unemployment rate in a region may serve as the basis for assuming an increase in the need for employment services, and a decrease in prices for new cars may indicate a decrease in demand for auto repair services. If the forecasting is performed qualitatively, then the resulting forecasts can serve as the initial basis for planning. Thus, the stable operation of healthcare is facilitated by plans formed on the basis of forecasts of fertility and mortality, epidemiological and environmental conditions, forecasts for the receipt and expenditure of funds from this industry.
The basis of the plans of any enterprise are its goals. Under purpose organizations understand the final state or result towards which their activities are directed. In the management system of service organizations, goals perform several important functions.
1. Goals reflect the philosophy of the organization, the concept of its activities and development, the place and significance of this organization in the services market.
2. Goals reduce uncertainty in ongoing service activities. They become guidelines for the organization as a whole and for individuals, helping to focus on the most important activities, thereby increasing the volume and quality of services provided and reducing unnecessary costs.
3. Objectives form the basis of criteria for identifying problems, making decisions, monitoring and evaluating the results of service activities.
The goals of activity that are set at service sector enterprises can be classified according to several criteria (Fig. 2.1)
Rice. 2.1. Classification of goals in service organizations
In addition to the indicated classification criteria, goals can also vary in terms of coverage, timeliness of setting, rank, and degree of achievability.
The system of goals of any organization is based on its mission, which is a fundamental, unique purpose that distinguishes a given organization from others of the same type and defines the scope of its activities. The laws of a market economy require each organization to formulate and make public its main goal, which gives an idea of its necessity and usefulness for society as a whole, the organization’s environment and its employees. Management theory and practice have not yet developed universal rules for formulating a mission. Therefore, there are many different approaches to the content of such a goal. However, at the modern marketing stage of management development, especially for service sector organizations, the most important requirement seems to be a basic emphasis on the interests, expectations and values of the client. The mission statement of a service organization may contain the following information:
Essential services provided;
Intended consumers of services;
Geographical scope of activity;
Service quality concept;
Pricing concept;
The main technologies used in the provision of services, the degree of their uniqueness and progressiveness;
The image of the enterprise, the desired public reputation, etc.
As a rule, the mission does not include all of these components, but the most significant of them. For example, the mission of a fast food restaurant chain might be to provide residents and visitors to the region with high-quality food at affordable prices with fast service. The organization's mission may also include its philosophy, reflecting the credo of existence, the supreme principles of activity. The philosophy includes the basic economic, social, environmental, and ethical values of the organization’s management, its ideas about the meaning of the company’s activities and the role of specific services in the development of society. For example, the well-known company Mary Kay Cosmetics stated that “the company’s philosophy is based on the golden rule: a spirit of participation and attention where people in good spirits give their time, knowledge and experience.” The head of McDonald's many years ago proclaimed the slogan that became the philosophy of this organization: “Quality, service, cleanliness and value.” One of the domestic banks formulated its mission taking into account the philosophy of the organization: “Promoting the establishment of business in Russia by providing a wide range of banking services, high quality customer service and effective development, taking into account the interests of shareholders, clients and employees.”
Strategic Organizational goals are set by top-level managers and focus on critical overall issues. They are aimed at solving promising large-scale problems in the provision of services that qualitatively change the activities or image of the organization. Thus, the strategic goal of a travel company may be to transition over a certain period of time from international tourism to domestic tourism. Tactical goals are set primarily by middle-level managers and focus on the core activities needed to achieve strategic goals. An example of a tactical goal within the framework of this strategic goal would be the acquisition and refurbishment of two local tourist bases within a year. Operational goals are formulated by middle and lower level managers, they are related to the functioning of individual divisions of the organization and are aimed at actions and work necessary to achieve tactical goals. For example, to achieve the specified tactical goal, an operational goal can be set: conducting a comparative analysis of local tourist bases proposed for implementation within two months. Operational goals assigned to specific performers are sometimes called operational .
As a result of establishing relationships between goals and their hierarchical subordination, a “tree of goals” of the organization is formed, in which large “branches” (main organizational goals) depart from the “trunk” corresponding to the mission. From these “branches” branch smaller ones corresponding to the purposes that support them. Thus, a “crown” is formed, which can “branch” many times. The constructed “tree” clearly demonstrates the mutual subordination of goals, shows which auxiliary goals must be implemented to achieve a specific goal (Fig. 2. 2).
Based on the period of time required to achieve goals, they are divided into long-term , medium term And short-term . Medium-term and especially short-term goals are characterized by greater specificity of the results envisaged in them than long-term ones. The period for realizing goals of each type depends on their level. Most of the strategic goals are long-term, tactical - medium-term, operational - short-term.
Technological goals are related to improving the technologies used by the organization, that is, the methods of providing services. Thus, one of the technological goals may be to increase the level of computerization of customer service. Production the goals include providing a certain volume of services, improving their quality, and increasing operational efficiency. Marketing goals are related to entering certain sales markets, attracting new customers, etc. .Economic goals are focused on achieving the financial stability of the company, increasing profits and profitability. Social goals are related to the creation of favorable working and rest conditions for workers, increasing their educational and qualification level, etc. Administrative goals focus on achieving high controllability of the organization, discipline among employees, and coherence in work. Other content goals may include scientific and technical guidelines, etc.
Rice. 2.2. "Tree" of goals
Goal setting precedes the development of plans, which are essentially tools for achieving set goals. The quality of plans and the results of their implementation depend on the correctness of setting goals. Successful implementation of the functions of goals is possible if a number of principles are observed.
The reality of goals.
Correct formulation of goals. Goals should be short, specific and time-bound. If possible, the goal statement should contain quantitative parameters.
Flexibility of goals. If necessary, goals should be adjustable.
Compatibility of goals. The goals of the organization should not be contradictory to each other, but, on the contrary, mutually supporting and ensuring the provision and development of services. Coherence should be ensured both vertically, that is, between the goals of different levels, and horizontally, that is, between the goals of different areas of the organization.
Verifiability and encouragement to achieve goals. This requirement is related to the need to assess the degree to which service delivery goals have been achieved and to stimulate the corresponding activities of employees.
Types, principles and stages of planning
At service sector enterprises, various types of planning can be implemented, which differ in purpose, level, subject, etc. (Fig.2.3)
Rice. 2. 3. Classification of types of planning at service enterprises
Strategic planning consists in defining the mission of the organization, forming a system of goals and strategies for operating in the service markets.
Current planning may include tactical and operational. The main task of tactical planning is the choice of means to achieve the intended overall goals of the company. At the same time, personnel policy, methods of providing basic services, general financial policy, and general marketing strategy are determined. Operational planning is aimed at developing specific action programs to solve the problems of the organization, detailed by year, quarter, month and day. During the development of operational plans, decisions are made on how to operate the enterprise’s operating system depending on the changing demand for its services, how to provide service delivery processes with resources at minimal cost, how many employees to attract, etc.
Strategic and current planning differ in many ways (Table 2.1)
Table 2.1
Comparison of strategic and current planning
| Signs | Strategic planning | Current planning |
| Management level | Mostly top level | All levels |
| Basic orientation | On problems | For a period of time |
| Problems | Loosely structured quality | Well structured quantitative |
| Signs | Strategic planning | Current planning |
| Uncertainty | High | Low |
| The essence of planning | Focus on innovation, strategic adaptation to the external environment | Focus on integration, coordination of the internal environment. |
| Target criterion | Creating Potential for Success | Realizing your potential for success |
| Planning horizon | Emphasis on long-term, partially on medium- and short-term planning | Emphasis on short- and medium-term planning |
| Planning units | Strategic business units | All functional areas, departments and employees |
| Level of detail | Enlarged study | Detailed study |
| Background information | Organizational policy, external environment | Organization strategy, internal environment |
Long-term planning focuses on a long time period (from 1 year for current plans to 10 or more years for strategic ones). Time horizon for medium term planning ranges from several months for current plans to 3-5 years for strategic ones. Short term planning is designed for a period from several days to one year, respectively.
Nomenclature and thematic planning in the service sector is the formation of company development plans that determine measures to update the range and content of services provided, increase the competitiveness of services, improve technology and organize the processes used in their provision. The main package of work on this type of planning should be carried out by marketing specialists. It is recommended to use a service package model that includes:
* basic service;
* auxiliary services that contribute to the main one;
* supporting services that make the main service more attractive, valuable, and different from those offered by competitors.
Resource planning includes calculations of material, labor and financial resources necessary for the implementation of specific services. This type of calculation includes financial planning, budget planning, business plans, etc. An important component of planning is the development of a pricing policy. The pricing process, hampered by the intangibility of services, must take into account the following factors:
basis of the service;
degree of individualization of the service;
the process of assessing the quality of a service by a client.
Scheduling involves determining the volume of work, the workload of departments and performers, constructing work schedules for individual performers, departments, specific services, equipment load schedules, and distributing work by period. This type of planning in the service sector is associated with greater difficulties than in the sphere of material production. Services, unlike goods, are provided to the consumer in real time and often require the presence and participation of the client. The duration of the service is often unknown in advance, since it depends not only on organizational factors, but also on the characteristics and requests of a particular consumer. Therefore, calendar plans for many services (medical, cosmetic, restaurant, etc.), as a rule, are based on the average time load of personnel, premises, equipment and suggest possible adjustments when individual orders are received. During periods of falling demand, calendar plans may provide for changes in the hours of operation of the enterprise, the time of provision of free or discounted services, etc. During periods of peak demand, plans may include measures to streamline queues (pre-registration, increasing the comfort of waiting for customer service) It is much easier to draw up calendar plans for services with relatively stable, predictable demand (urban public transport, telephone communications, in-house services) or those that do not require presence client (repair, cleaning, washing).
Service sector enterprises can also implement functional aspect planning. In accordance with the division of labor accepted in the organization, differentiated plans are drawn up for individual functional areas: operations (the main activity of providing services), personnel, finance, supplies, etc.
The planning level reflects the level of detail of plans. Depending on the size of the organization, its organizational structure, as well as the chosen planning concept, its independent objects can be individual employees, their groups, certain types of services or specific orders, the organization as a whole and its divisions.
Planning for Repetitive Activities carried out in standard situations. In the service sector, such planning takes place when developing a transport schedule or doctors’ appointments. But even in such cases, it is recommended to leave “windows” in plans for non-recurring, unforeseen situations. Planning for non-repetitive activities carried out to solve new, specific problems. For example, this kind of planning is carried out in travel companies to organize a special individual route.
The composition and structure of a service organization's plans are influenced by several factors, including
- direction of activity and composition of services provided;
- organizational structure of the enterprise;
- the composition and nature of the processes used to provide services;
- the size of the organization and the scale of its activities, etc.
The high quality of developed plans is facilitated by taking into account scientific planning principles. A number of them are especially important for service sector enterprises.
Principle scientific validity involves the use of modern information technologies, the use of optimal planning methods, experimentation, as well as progressive procedures and methods of providing services. Principle complexity means a systematic linkage of all plans developed at the enterprise. Principle continuity considers planning not as a single act, but as a continuous process in which, as a result of periodic extension of plans, long-term calculations for the provision of services are combined with short-term plans. Principle coordination involves the coordination of plans “horizontally” between divisions of the enterprise or various types of services provided, and the principle integration - “vertically” between its levels. Principle efficiency requires that the effect of using a service delivery plan be higher than the costs of its preparation. Principle flexibility assumes the ability of plans to dynamically respond to changes in internal and external factors, as well as to maintain the necessary reserves. Principle participatory requires the maximum possible participation of the organization's employees in working on the plan, since this approach causes greater activity and productivity in its implementation.
The planning process is one of the most important processes in a service enterprise. Regardless of the type of plans, there are three main stages in the planning process.
I. Stage problem statement includes the identification and analysis of problems associated with the provision of services, while determining the initial prerequisites and target values of the planned parameters.
II. Stage development plan involves the formation of possible decision options, assessment of identified alternatives based on their analysis and comparison of predicted consequences with target parameters, as well as selection of the best alternative.
III. Stage implementation of the planned decision consists in bringing the planning decision to the executors in the form of specific planned tasks, regulations, standards, and indicators.
All planning processes are closely interconnected and form a specific planning cycle.
Planning methods in the service sector
The main task of planning in service organizations is to find the optimal solution to problems associated with the implementation of the services offered. Currently, there are several ways to draw up plans or planning methods for such organizations: regulatory, experimental, balance sheet, network and others.
The service sector is one of the promising, fast-growing sectors of the knowledge-based economy. Services are purposeful human activities, the result of which has a beneficial effect that satisfies some human needs.
Services are various types of human activity, as a result of which material wealth is not created, and which belong to the non-productive sphere. At the same time, the service sector is an important part of the real sector of the economy.
Modern economic theory reflects the new economic reality. The end of the 20th century and the beginning of the 21st century is characterized by the latest structure of post-industrial production. It has a number of distinctive features:
The latest production is capable of providing mass satisfaction of the entire range of actual and future needs;
The modern economy includes two complementary spheres of production: material (creates material wealth) and intangible (creates spiritual, moral and other values - works of spiritual culture, art, science, etc.);
Modern production organically includes a special service sector.
A service is a type of purposeful activity, the useful result of which is manifested during labor and is associated with the satisfaction of a need. The role of the service sector in the modern economy is determined by the following conditions:
New jobs are constantly being created in the service sector;
The service sector is increasing its share of the country's gross domestic product;
Due to the service sector, the time spent servicing a household is reduced, which improves the quality of life of the population.
Households and businesses are demanding more and more services, more complex and of higher quality. The increasing role of services in the household has various reasons.
The following main factors for increasing the role of services in the life of a modern household can be identified:
growing abundance;
striving for a better quality of life;
increase in free time;
urbanization necessitating new types of services (eg security);
demographic changes leading to an increase in the number of children and older people in need of many services;
socio-economic changes, such as the emergence of families where husband and wife work, lack of personal time, etc.;
complication of consumer demand, leading to an expansion of the very range of required services (for example, for managing personal financial affairs);
Technological changes that improve the quality of services or create new types of services (for example, in the field of medical care, cable television, receiving data over a computer network).
The growing demand for services by firms and institutions is driven by the increasing complexity, internationalization and complexity of their management. Specialized service firms (eg, temporary assistance, conflict resolution) are being created, as are complex needs in established service industries such as advertising, accounting and reporting, consulting, information systems, investment banking, and marketing research. More complex products and more advanced technologies impacting firms' value chains require an increasing range of design, management and maintenance services. The internationalization of competition promotes the growth of services needed to facilitate trade and manage geographically dispersed enterprises (such as communications services and recruitment). Changes in technology and management are leading to the emergence of entirely new service sectors.
Any product of labor produced for sale is a commodity. Hence, services sold in various markets act as an independent and very diverse group of goods.
The main role of a service as a product is to satisfy the needs of customers. The main difference between a service and a physical product is the following:
Any service is a process. The use of the term process makes it possible to distinguish between services and physical goods, which by their nature cannot be a process;
People are an integral part of services.
There is a trend in the world to diversify the service sector, when many previously separate types of services are combined within one company. A whole range of them is offered, which increases the competitiveness of a given company and mitigates possible risks. Thus, banking, exchange and intermediary services are merging into a single range of financial services. Or, for example, a variety of services are combined within a transport company, such as life and cargo insurance, correspondence delivery, and tourism.
The increasing role and influence of the service sector on the economy has necessitated research to classify services and determine the characteristics of marketing in this specific area. Today the following characteristics of services as goods are known and widely used:
intangibility;
continuity of production and consumption of services;
inconsistent quality;
inability of storage services.
Intangibility means that the service cannot be tried, demonstrated, or seen until it is received. Intangibility causes problems for both the buyer and the seller of the service. It is difficult for the buyer to understand and evaluate what is being sold before the moment of purchase, and sometimes even after. At the same time, the intangibility of services makes life difficult for their sellers. The seller can only describe the benefits that result from providing this service. Although there are services when the client cannot evaluate the benefits even after receiving them. The intangible nature of services makes pricing and promotion difficult. A service is inseparable from its source, while a product in material form exists regardless of the presence of its source. A service can only be provided when an order is received or a client appears. Some experts believe that this is the most important factor that makes a service truly a service and distinguishes it from a product.
The inseparability of consumption and production of services creates a special form of “consumer production”. In this case, the consumer pays the cost of the service in advance, before he has the opportunity to assess the level of satisfaction of his needs. This necessitates strengthening consumer trust in the service provider. The impossibility of consuming a service without a manufacturer imposes restrictions on the development of sales activities. Sales divisions in the service sector in practice are closely linked with advertising and propaganda departments, and their functions are reduced to stimulating the sale of services in various consumer segments. Including the buyer in the service production process means that the seller must take care about what to produce and how. The last task is especially important. How bank employees, insurance agents, lawyers, doctors and hairdressers behave when selling their services will determine the likelihood that the client will return more than once. Therefore, proper selection and training of personnel is very important.
Variability in the performance of services is an inevitable consequence of the simultaneity of production and consumption of services, as well as the fact that people are an integral element of the service. To reduce service variability, it is necessary to identify the causes of this phenomenon. Most often this is due to the qualifications of the employee, poor training and education of personnel, lack of competition in this area, lack of information and communication. Another very important source of variability in services is, of course, the buyer himself, his uniqueness. This explains the degree of customization of the service according to the buyer's requirements.
To reduce service variability, companies that have been in the service industry for a long time develop and try to maintain a service standard. A service standard is a set of mandatory customer service rules that are designed to guarantee the established level of quality for all operations performed. The service standard establishes formal criteria by which the level of customer service and the performance of any employee of the company is assessed.
These could be, for example:
service time - 85% of customers should not stand in line for more than 5 minutes;
work with complaints and claims - the number of complaints should not be more than 2 per month per employee, for each complaint the client must receive an answer;
maximum waiting time for a telephone response and other formal criteria, including requirements for employee clothing;
requirements for the preparation of documents, letters, business papers, advertisements. Well-designed, well-written business papers indicate respect for the client and the level of the organization.
The quality control system is the protection of service standard. To ensure quality control, an organization must:
Allocate funds to attract and train qualified specialists;
Continuously monitor customer satisfaction through a system of complaints and suggestions, as well as customer questionnaires.
An important distinguishing feature of services is their immediacy. Services cannot be stored for future sale. And if the capacity for services exceeds the demand for them, then income or the cost of services is lost. If demand exceeds supply, then services, like physical goods, cannot be taken from the warehouse. Fluctuations in demand are inherent in all types of services. It may vary depending on the time of year and the days of the week. The inability of services to store requires the development of a strategy to ensure the coordination of supply and demand for services:
by setting differentiated prices, discounts, and using other incentives, it is possible to shift part of the demand from the peak period to the calm period;
increasing the speed of service, including through automation, allows you to work with a large number of clients;
introduction during periods of peak demand, as an alternative, of additional services (coffee, magazines, etc.), which will help alleviate the waiting time for the main service;
To service the additional flow of clients, it is recommended to train staff to combine functions, as well as hire temporary employees.
Based on the above analysis of services as an economic category, the following conclusion can be drawn. Services are various types of human activities that do not create material wealth and belong to the non-productive sphere. The quality of services is a very complex socio-economic category. In the broad sense of the word, it reflects the equivalent relationship between the socially necessary labor costs of the producer and the personal, individual time of human consumption, which, of course, helps to free up the individual’s time intended for creativity. In a narrow sense, service quality characterizes the success and efficiency of interaction between service providers and service consumers.
Features of the service market
At its core, the services market, developing according to the laws of a market economy, is a type of commodity market and at the same time has a number of specific features, which determines a special approach to business and marketing activities designed to satisfy the demand for services.
Features of the services market are seen, first of all:
in the high dynamism of market processes (the provision of services aims to directly satisfy human needs);
in territorial segmentation (forms of service provision, demand and operating conditions of service enterprises depend on the characteristics of the territory covered by a specific market);
In the high rate of capital turnover (one of the main advantages of business in the service sector, resulting from a shorter production cycle);
in high sensitivity to changes in market conditions (a property due to the impossibility of storing, warehousing and transporting services, as well as the temporal and spatial coincidence of their production and consumption);
in the specifics of organizing the production of services (having greater mobility, small and medium-sized enterprises that are producers of services have ample opportunities to respond flexibly to changes in market conditions);
In the specifics of the process of providing services (personal contact between the manufacturer and the consumer, on the one hand, creates conditions for expanding communication ties, and on the other, increases the requirements for professional qualifications, experience, ethics and general culture of the manufacturer);
To a high degree of differentiation of services (associated with diversification, personification and individualization of demand for services, it is considered as the most important incentive for innovation in the service sector, since the complex structure of demand causes the emergence of new, non-standard services, the search for new services becomes a permanent process that receives more and more development as market demand saturates);
In the uncertainty of the result of activities for the provision of services (the result of activities for the provision of services, subject in many cases to the influence of various qualities of the manufacturer, cannot be determined in advance with sufficient accuracy; the final assessment of the result is possible only after consumption of the service).
AG THEORIES OF SERVICE SECTOR TECHNOLOGY
UDC 336.64 BBK 65.05
SERVICE SECTOR AND MODERN TRENDS OF ITS DEVELOPMENT
G.V. Gioev, L.A. Podolyanets
St. Petersburg State University
service and economics (SPbGUSE 191015, St. Petersburg, Kavalergardskaya str., 7, lit. A
The study was supported by the Ministry of Education and Science of the Russian Federation, Agreement 14.B37.21.1995
One of the features of the modern Russian economy, which corresponds to global trends, is the intensive development of the service sector, which has an increasing impact on the living conditions of the population. This influence manifests itself in a variety of areas of human life and society, from the economic to the social sphere, and affects all components that shape the quality of life.
Confirmation of this thesis
serves as an analysis of the economic development of Russia, which is characterized by the increasing importance of the service sector. According to the Federal State Statistics Service of the Russian Federation, the share of all services in the formation of the GDP structure for the period from 1990 to 2011 increased from 20% to 59.0%. Over the same period, in monetary terms, the growth in the provision of paid services to the population amounted from 0.44 to 5424.8 billion rubles. respectively (Table 1).
Table 1. Volume of paid services to the population of the Russian Federation
Unit change 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011
In billion rubles (in actual prices) 0.44 113.0 602.7 2271.7 2798.9 3424.7 4079.6 4504.4 4851.0 5424.8
As a percentage of the previous year (in comparable prices) 110.2 82.3 104.7 106.3 107.6 107.7 104.3 97.5 101.5 103.0
A structural analysis of existing trends in the service sector demonstrates an important difference - the rigidity of the factors of change: about 50% of the total volume of population expenditures is directed
to satisfy services of the so-called “mandatory nature”, which are not “elastic” to the income of the population. These usually include all housing, communal and household services, from
specific types of passenger transport services (Table 2).
Table 2. Structure of paid services to the population of the Russian Federation (as a percentage of the total)
Analysis indicators 2002 2005 2007 2008 2009 2010 2011
in% of the total, million rubles.
All services provided 100 100 100 100 100 100 100 4851018
including
household 11.7 10.1 9.9 9.7 9.9 9.9 9.7 470990
transport 24.2 21.5 21.2 20.9 21.6 20.3 20 969778
communications 14.8 18.5 18.6 19.9 19.7 19.5 19.2 929786
residential 4.3 5.3 5.6 5.4 5.2 5.5 5.5 265357
utilities 16.1 18.3 18 17.6 17.6 19.3 21.2 1027002
hotels and similar accommodation facilities 3 2.6 2.7 2.7 2.6 2.4 2.3 111717
crops 2 2.3 2.2 1.7 1.6 1.7 1.7 84744
tourist 1.4 1.5 1.6 1.6 1.8 1.7 1.7 82246
physical culture and sports 0.4 0.7 0.6 0.6 0.6 0.6 0.6 27857
medical 4.9 4.8 4.9 4.7 4.8 4.9 5 244440
health resorts 2.1 1.6 1.5 1.4 1.4 1.4 1.2 60523
veterinary 0.3 0.2 0.2 0.2 0.2 0.2 0.2 8780
legal nature 3.9 2.3 2.5 2.6 2.5 1.9 1.8 88393
education systems 6.7 6.7 6.9 7.1 7 6.9 6.7 326619
other services 4.2 3.6 3.6 3.9 3.5 3.8 3.2 152765
Consequently, the service sector has a significant growth reserve for services of an “optional nature” and, thus, is able to make and is making a very significant contribution to the increase in gross domestic product at relatively lower costs and shorter payback periods, as well as contribute to the development of domestic
market as the basis for stable economic growth.
There are a number of definitions of service as an economic category. Let's consider one of the approaches, including the identification of such characteristics as generic definition, material basis, social form, unity of form and content (Table 3).
Table 3. Characteristics of services as an economic category
Generic definition of service Material basis of services Social form of service Unity of form and content
Service is a concept focused on the ability and readiness to carry out activities that ensure the satisfaction of one or another client’s need. The result of the service is the transformation of material, energy, information or other properties of objects, carried out in order to satisfy a qualitatively defined client’s need, i.e. to order Service is a change in the state of a person or a product belonging to an economic unit, occurring as a result of the activities of another economic unit with the prior consent of the first Service is any activity carried out by mutual agreement of the parties that does not lead to the emergence of ownership rights to a material object
Thus, the above characteristics of a service as an economic category make it possible to clarify the definition of the term “service”, which should be understood as one of the forms of economic relations between contracting parties aimed at satisfying mutual needs concluded in a contract.
useful results of their interaction as an economic product of the services market.
Analysis of the market for services of various types, their distinctive functions, tasks and features allows us to divide the properties of the service into general and specific (Fig. 1).
The specific properties of a service are the basis for service enterprises to create additional utility and a way to improve service to the public.
World and domestic experience in managing social development convincingly demonstrates that the socially oriented service sector is the core of modern civilization.
lization, the most powerful factor in the development of the country’s economy.
Traditionally, the locomotive of the economy is recognized as industry, heavy and light, as well as the military-industrial complex, which bears the main burden as a generator of innovation and a leading tax payer. However, without service activities that permeate numerous sectors of the economy and in parallel
operating as an independent sphere, it is not possible to satisfy the ever-growing needs of the population.
In addition, the service sector contributes to the fulfillment of such an important social function of the state as ensuring employment of the population, increasing the level of employment of a significant part of the population and providing services that do not require prior licensing of activities or the employee having a higher education as a prerequisite.
Currently, the main trends in the development of the service sector should be considered the following:
Associated with processes of concentration and specialization of service production;
Due to the need to improve the organizational and structural factors of the functioning of service sector enterprises;
They are determined by the need to use best practices in the functioning of the service sector in economically developed countries, taking into account the local characteristics of their provision.
These and other facts indicate the need to expand the share of state participation in the regulation and development of the service sector market. The solution to the problem associated with the development of state regulation in the new economic conditions of Russia should be carried out in close contact with market entities in the service sector. The principles of cooperation between government agencies and service sector market entities can be: scientific development and phased implementation of developed measures; taking into account and balancing the interests of all market participants; recognition of the leading role of the state as an organizer
and regulator of economic relations in the service sector market.
The importance and complexity of regulating the service sector market require the development of a concept and appropriate methodological support. From this position, it is necessary to consider the improvement of state regulation of the economy both on a national and regional scale. In this case, the main attention should be paid to the development of specific
forms and methods, based on the geographical, ethnic and economic characteristics of the region.
Ensuring an organic connection between forms and methods will make it possible to adapt traditional and pilot forms of development at the regional level to the main methods of state regulation (direct and indirect), and optimize them, which will determine the most successful application of state regulation in managing the development of the regional service sector.
The main areas requiring regulatory activities of authorities in the service sector should be considered:
Financial, tax and legislative support for small businesses, including those with a high share of venture capital, ensuring stable conditions for healthy competition, etc.;
Formation and development of state entrepreneurship in the most socially significant sectors (education, consumer services, housing and communal services, etc.);
Industry macro planning and macro programming;
Improving budget policy taking into account the state
supporting socially significant service sectors.
Taking these initial premises into account, the following concept for the development of the service sector is proposed (Fig. 2).
Basic provisions of the concept
Identification of prerequisites for the development of the service sector
Determination of the main trends in the development of the service sector
Justification of the need and development of goals and objectives for the development of the service sector
Decomposition of components of the quality of life of the population
Concept development methodology
Concept evaluation methods
Methods for analyzing the quality of life of the population Methods for assessing the quality of service Methods for assessing the consumption dynamics of services
Directions for implementing the concept
Development and implementation of directions for developing the service sector and improving the quality of life of the population
Improving the organization of service to consumers of services Improving the quality of service to consumers of services Increasing the competitiveness of service sector entities
Expected result of the concept implementation
Improving the quality of life of the population
Rice. 2. Model of the concept of development of the service sector
The concept is based on the idea of improving the quality of life of the population by improving the consumption of goods in quantitative and qualitative terms, ensured by the pace of development of the service sector, increasing the competitiveness of its subjects, improving the organization and improving the quality of service to consumers of services.
The prerequisites that determine the future development of the service sector are: the development of information and communication technologies; institutional transformations of the economy;
changes in intra-industry proportions in the structure of the economy; increasing the research capacity of the service sector; a change in the structure of supply and demand in the services market and, of course, an increase in the effective demand of the population.
The implementation of the concept both nationally and at the regional level can serve as one of the options for solving two significant problems: developing the non-productive sector of the economy and ensuring sustainable economic growth as a material basis for improving people’s living standards; higher-
improving the quality of human life and enhancing his labor participation in ensuring sustainable economic growth. The service sector plays an integrating role in solving these problems.
The need to improve the organization of servicing consumers of services arises from the main feature of the activity of a subject in the service sector - the complementary combination of the processes of production of services and servicing consumers. At the same time, in the service sector there is no link separating the producer of the service and its consumer.
In other words, in the process of receiving a service, the consumer comes into direct contact with the enterprise, the results of which determine the consumer’s perception of not only the service received, but also the enterprise as a whole.
It follows that the organization of service plays no less, if not a greater role among other parameters that determine the consumer’s perceptions and expectations of the service, the perception of the result of its receipt and the attitude towards the activities of the service enterprise as a whole.
Choosing the processes of organizing customer service as a key link in the service sector allows us to identify and formulate two priority goals for their improvement:
For the consumer: ensuring satisfaction with the service organization, which will lead to repeated visits to the enterprise, an increase in the volume of consumption of services and, therefore, create conditions for improving the standard of living;
For the enterprise: ensuring the demand for the services provided by consumers, which will lead to an increase in income and profit by increasing the attendance of the enterprise and create conditions for increasing competitiveness.
Based on these goals, we can highlight the main directions for improving the organization of servicing consumers of services:
In the field of improving the created product (service): improvement of technical, operational, economic
mic and other parameters; organization of production of new types of services; expanding the range of related services provided; the use of new technologies for the production of services and servicing;
In the area of improving the use of material resources: cost optimization; increasing the efficiency of using resources of all types; the use of new types of resources, especially information ones;
In the field of improving the quality of labor and the efficiency of using the enterprise's labor resources: improving working conditions and organization; improving forms of payment and labor motivation; improving the qualifications of employees; development of reward systems for quality of service;
In the field of improving the organization and management of business processes: rationalization of the organizational structure, application of new management technologies.
Particular attention needs to be paid to improving the service organization process based on its detailing according to the GOER(O) methodology. In this regard, there is a need to build a model of the service organization process “as is” and “as should be”, dividing them into several levels of detail according to the content of the process elements and the conditions that ensure its improvement. The “as it should be” model according to the GOER(O) methodology (one of the levels of detail) is shown in Fig. 3.
In the proposed form, the service organization process acquires a pronounced focus on meeting the individual needs of clients and improving the quality of service processes.
Along with the task of improving the organization of service to consumers of services, another important task is to improve the quality of service as an independent direction to strengthen the influence of the service sector on the quality of life of the population.
To this end, improving the quality of service to consumers of services can be presented in the form of a model that includes the following main elements: determination of factors of quality of service to consumers of services; selection of the methodological basis for constructing the model; specification of the model object; clarification of the requirements for the model, formulation of the goals and objectives of its development; construction and justification of a structural diagram of the model; determining the conditions for implementing the model.
The purpose of the development is to create an alternative management tool that allows for the effective solution of the goals and objectives of sustainable development of the service sector as a whole as a system and the implementation of the main goal of the functioning of its economic entities - improving the quality of consumer goods.
leniya as the basis for increasing the quality of life of service consumers.
In the model, service quality factors are combined into three groups: production (technological), labor and organizational. Labor factors are considered as the main ones, since they influence the quality of the service (from the standpoint of professionalism and skill), i.e. on production (technological) factors, as well as on the quality of the service process (from the standpoint of organizing interaction with consumers), i.e. on organizational factors. Based on the “total quality management” methodology, the object of the model was specified, the requirements for it were clarified, and the tasks for its development were formulated.
Rice. 3. Model “as it should be” according to the GOER(O) methodology. The model is a set of system level reflects methodologically interrelated structural levels. logical foundations of the model, target - goals
its application, legal - the regulatory requirements of the environment for using the model, object - the area of use, and the social and economic levels characterize the expected results from the application of the model in practice in the form of
Thus, in modern Russia there has become a need to implement three main strategies in the service sector: increasing the level and quality of life
as a management tool. In accordance with these structural levels, the content of the elements of the model was detailed, the conditions for its implementation were identified and disclosed (Table.
settlements, ensuring high rates of sustainable economic growth and creating potential for future development.
Table 4. Structural levels, elements and conditions for implementing a model for improving __quality of service to consumers of services_
Structural levels of the model Elements of the model Priority conditions for the implementation of the model
Systematic Quality management system based on the “total quality management” (TQM) methodology Expanding the practice of using the total quality management methodology as a basic service quality management system
Target Quality management -> improving the quality parameters of the development of the service sector -> improving the quality of functioning of a service sector entity -> improving the quality of service and maintenance Selecting the quality of customer service as the main criterion for assessing the activities of a service sector enterprise
Legal Regulatory acts regulating the activities of economic entities and the service sector in a competitive environment ->■ standardization and certification of services -> service standards Development of a national service quality standard, creation of a regulatory framework regulating the system of remuneration for service quality
Object Marketing product (service) process (service) -> technology -> personnel -> organization Development of an intra-organizational service quality policy at each service enterprise
Social Improving the quality of service for consumers of services -> improving the quality of consumption -" improving the quality of life Specifying directions for qualitative growth in consumption of services based on improving the quality of consumer service
Economic Sustainable development of the service sector -> increasing the efficiency of the service sector entity ->■ increasing the competitiveness of the service sector entity and the product (service) created by it Development of directions for increasing the competitiveness of service sector entities based on improving the quality of customer service
LITERATURE
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2. FSGS. Structure of paid services to the population. URL: http://cbsd.gks.ru/ (date accessed 02/14/2013).
3. Karkh D.A. Theoretical foundations for the development of the essence of trade services II Vestnik of SUSU, series “Economics and Management”. 2010. No. 7 (183).
4. Uligov A.A. Formation of factors of intensive development of the service sector in the modernization period of the economy: Abstract of thesis. dis. ...cand. econ. Sci. URL: http://www.sssu.ni/Portals/0/Dis/2012/uligov.doc (accessed 02/14/2013).
5. Solovyova L.V. Theory and methodology of the influence of the service sector on the quality of life of the population: Monograph. Belgorod: Cooperative education, 2007.
6. Golodova Zh.G. Main directions of stimulation and assessment of investment activity in the regions of Russia // Regional Economics: Theory and Practice. 2008. No. 22 (79). pp. 68-72.
7. Solovyova L.V. Service: essence, characteristics // Bulletin of the Belgorod University of Consumer Cooperation (special issue). 2005.
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