Coursework 1 done

Introduction: According to Michalska (2005), quality in today’s competitive market is very important for them to meet the customer’s requirements in order to lead the market. In this essay is about the quality and performance management. This topic is important due to the important of an organization to manage and control well the quality and performance. Indeed, when the organization can maintain a good quality and performance for the consumers, there is the starting to increase the organization image and yet the number of loyal customers can rise also. I think to study this topic can helps me being as a good manager to help the organization to maintain and manage well the quality and performance of the organization. Quality: 2.1 Quality definition: In general definition of quality as strategically, quality is concerned with the ability of organization to do things right-" first time and every time” for each customer. This includes internal customer (other departments in organization) as well as external customer. Total Quality management is the spreading of quality consciousness throughout the whole organization. (Thompson, 2001) According to Arthur, Quality was consists of two main parts: An internal and external orientation. Internal orientation focuses primarily on assessment of the characteristics of the product or service. Differences in quality amount to differences in the quantity of some desired ingredient or attribute. (Arthur et al., 2005) External Orientation focus on Quality is fitness for use: the design and application of appropriate products and services and to meet the requirements of users. In addition, External Orientation also focus on Quality consists of the capacity to Satisfy wants; product and service must have sufficient capacity to meet customer demand. (Michalska, 2006) According to Robbin, Quality was definition as “Quality is consistently meeting or exceeding the customer’s needs and expectations"; and "Quality is the ability of a product or service to reliably do what it's supposed to do and to satisfy customer expectations". ( Robbin and Coulter, 2012) 2.2 Dimensions of Quality: Figure 1: Dimension of Service and Product Quality. Dr. Garvin identified eight dimensions which is the basic elements of product quality and service quality. In that, each dimension is a separate aspect; each product can be appreciated in this aspect but at the same time underestimated in the remaining aspects. (Calfa, 2010) In addition, Berry and Parsuraman (1991) furthered the dimensions of service quality with tangibles, responsiveness, assurance and empathy. (Parsuraman et al., 1991) There are five determinants of Quality in service quality; which are: tangibles, responsiveness, assurance and empathy. Customer will base on that to form their judgments and evaluation of service quality. (Fitzsimmons, 2011) Service Quality’s Dimensions: Advantage to the company of paying attention to the quality: Product and service quality is a key factor to increase profits for the Enterprise: Companies which mainly concern on quality either the product or services to the customers can help improve the profitability of the company. The customers who are attracted with the services and the good product can make them be loyal to the company. Indeed, this situation helps the productivity increase and the profit increase at the same time. In study by Deming (1986), develop payment agreements with customers can helps to increase the profitability. This way is also show the quality way of the company to serve the customer. (Deming, 1986) Company Brand Reputation increase: because “The likelihood that brand name will be selected as an indicator of quality depends on the quality dimension being judged.” (Merrie et al, 2000) From the sentence, it implement that brand name will be built when the quality of the product is fulfilling the quality dimensions. For products and services that consists more quality dimensions, the consumers will perceived the brand as a high quality product after q long time. Service quality is the most important conditions to continuously meet the constantly changing needs of the people: for companies that paying attention on quality management, they can get the most customer focus. With a good understand of customers’ need, organization tend to react by producing products and services that have demand in the market. By meeting their needs and predict the future change of the demand trend, organization can gain most customers focus then. The quality creates competitive advantage and it is happening in many successful organizations. (Kandampully, 1998) 2.4 Limitation to the company of paying attention to the quality: Increase the cost of product: When implementing cost management, organization needs to deal with quality costs. Ozgur & Huseyin (2009) stated: there was hard to identify the actual quality cost because quality management involves every function in the organization. To have a clear image, it suggested to identify the conformance and non-conformance cost where this will be a huge amount. Thus, organization needs to expense the quality cost before it was success. There is a risk for companies to upgrade the quality in order to cover the costs. (Ozgur & Huseyin, 2009) Lack motivation of shareholders: Motivation of shareholders in a company is very important. A company has to get enough capital and investor to help the company to maintain and achieve good quality of productivity. Indeed, if the shareholders do not active help the company to get the capital to face the company problems and these could make the quality of the company drop (Walters and Rainbird, 2007). Hilton hotel and Shangri-La hotel in Hotel Industry: Hilton hotel is one of the luxury hotels recognized in the industry. Since 1919, when Conrad Hilton had first hotel; Hilton hotel has led the industry with innovative approach to products, facilities and services. Hilton hotel now offers a full range of services related to hotels and resorts in many countries and the products and services that meet the needs of global travelers. Hilton hotel is known as a company with the best customer service world; it's always research and developing a good relationship with customer (Hilton, 2012) Shangri-La Hotels and Resort is a world famous luxury hotel. It does not only provide luxury quality room service, it is also a symbol of the upper-class people. Shangri-La Hotel is a five-star hotel was established in 1971 in Singapore. Until now, it has become a most luxury hotel chains (49 deluxe hotels) over the world; it specialized target is the business traveler and conference service. Because Shangri-La customers are especially and upper-class people so the services and products provided by its exceptionally high quality. (Shangri la, 2012) Customer’s perception to determine 5 star hotels Quality: According to Fitzsimmons, customers will use five dimensions as: Tangibles, Reliability, Responsiveness, Assurance and Empathy; which are based on a comparison between expected and perceived service to form their judgments of service quality. (Fitzsimmons, 2011) Tangible dimension is the customer's first impression about the service. The first thing customers notice is the basis of the physical and environmental conditions of the hotel must meet their minimum requirements. The requirements for the 5-star hotel are very high: room fully equipped, entertainment service, quiet environment .etc. The Reliability of the hotel is important to attract the customers. Most of the customer will make sure the hotel which they book will get the services that the hotel stated. If the hotel promised any quality services and product for the customers, the hotel management should ensure what they promised is true and honest. (Phillip et. al, 1985) Example: the customer's requirements must be done quickly, accurately and on time. Customers will appreciate Responsiveness and Assurance through the services of the hotel. (Christian and Assumpta, 2002) Willingness to help customers and provide high quality services as well as confidence, courtesy and ability to convey trust to customer of employees is the point where customers will aim to assess the quality of hotel. Empathy and Aesthetics: Some of the customer will prefer the hotel build up with luxury design and luxury service. This is because the customer feels the specialist of the hotel indeed giving them an experience. (Merrie B., et al., 2000) Some of the hotel will build the facilities and the design to attract customers due to their country. For example, Shangri la hotel have Japanese design and sushi restaurant, due to their service and facilities of the hotel can ensure the customers especially from Japan feels the special and comfortable for them compare to others hotel. 3.2 Hilton hotel activities to delivering customer value: As five star hotels, service quality of Hilton hotel can meet most customer requirements. First, Hilton has more than 200 rooms all categories such as luxury, deluxe, single room is fully equipped with the necessary equipment as well as system services such as casino entertainment, swimming pool, health spa. Second, Hilton Hotel done well in reliability, they ensures their customer services in a good quality indeed they will ensure the term that promised to the customer will be true. (Chen, 2011) To meet Assurance and Responsiveness dimension, Hilton Hotel is definitely ensuring the customer services will be in good quality especially the receptionist, front office team and the bellmen. By the way, the staff in the hotel has being trained to be nice to the customer. "When the customers just step into the Hilton hotel, they will be served nicely and gentle by the staff". (Lukchang, 2012) Last, the loyal customers always receive special attention from Hilton: customers receive gifts and discounts on birthday party at hotel 3.3 Shangri-La hotel activities to delivering customer value Shangri La Hotel is a five star hotel serving business travelers and organization of seminars. According to Angelini CEO of Shangri La hotel equipped with luxurious amenities for all of 662 rooms; besides that, they also provide advanced forms of entertainment such as concerts, hair / Beauty Salon and shops with famous brands. (Shangri-La, 2012) Reliability of Shangri la is secured by their reputation. Shangri La's customers are always assured of quality service, comfort and safety while staying here. Employees of Shangri La are thoroughly trained and professional; they are served with a gentle attitude and able to respond quickly to the most demanding customers who of upper- class. At last but not least, Hotels always pay attention to the smallest stage to please the customer; they have three type of spa for each customer needs and Shangri la hotel have Japanese design and sushi restaurant for customers who prefer Japanese cultural. (HMA, 2011) Comparison between Hilton Hotel and Shangri La Hotel: Identify the area where Hilton hotel is not delivering customer’s value The Hilton hotel is not delivering customer value in some area. In term of services and facilities provided to the customer is not satisfaction. The services are limited compare to other hotel such as scanning services. However, the Hilton hotel has a strategic location compare other hotels but the Hilton hotel does not make changes in term of decoration or new style. There might some customers seem more concern on the hotel design to attract them. For example, the Shangri-La Hotel will make some concern on customer perspective such as making the Thai-inspire room to attract customer compare to the inspiration of Hilton hotel. Identify the area where Shangri La hotels is not delivering customer’s value: Shangri-La Hotel do not concern on customer conveniences and needs. The Shangri-La did not build in the strategic location such as Hilton hotel which the customers from Hilton hotel can reach to the center of city Kuala Lumpur instead 5 to 10minutes only. There are customer will concern of this view of the hotel indeed of the hotel quality and services. In addition, however the price is consider reasonable to the customers but it still the pricing is higher compare other hotels such as Hilton hotel. Conclusion: Quality is very important to help a company to stay long in the market in term of facing the competitors too. Quality is a wide range in the business. For example, there are quality of management, quality of productivity and quality of services. These kinds of services are important to help the company to success. In my opinion, quality is important in management because when there is no quality in management of the company, there will messy in term of progress of productivity. In term of services, if the company employees do not keep the good quality in customer services, this could lead the customer does not trust on the company reliability anymore. For example, the Hilton hotel does not keep a good customer services in term of concerning their needs of desire and inspiration of the hotel that they want to stay. Indeed, the Shangri-La Hotel does not make the strategic place in term of concerning the customer convenience. My Recommendation: In my point of view, the company can success in the market and compete with other competitors is concerning on their quality of work style. A company should understand the concept of concerning the customer needs and quality management before plan for gain the profit to maximize. This is because a company which only thinks the way to gain the profit to maximize without concern the customer in the market will be failure. Some of the customer complaint the Hilton hotel does not have the nice facilities and services. These shows the Hilton hotel does not think properly the need of customer. Therefore, the Hilton hotel should identify the customer needs of services and also the new living style in the hotel. This could lead the Hilton hotel to compete the other competitors. Besides that, the Shangri-La Hotel also did not realize the needs of customer due to the convenience of customer to the center of city Kuala Lumpur. Therefore, they should find a strategic place to move on as one of the strong advantages to compete other competitors especially the Hilton hotel. Part B: Value Chain Model Figure 2: Michael Porter’s Value Chain Model 1.0 Definition about Value Chain: Value chain describes a series of activities required to bring a product (or a service) from the very beginning of the concept, through the different stages of production to the final consumer. A value chain exists when all participants in the chain is working to create maximum value in the chain.(Kaplinsky and Morris, 2001). Value chain is the sequence of activities. Products pass through all activities of the chain in order and at each activity the product obtained a certain value. Chain of activities gives the products more added value than the total value of all activities combined. (Ball et al., 2010) as the study of Solomon, it is a tool used to identify ways to create more customer value. Michael Porter's value chain consists of five primary activities and four support activities. (Solomon et al., 2008). 2.0 Analysis the Michael Porter’s Value Chain Model: Figure Inbound Logistic 3: Primary Activities Operation Primary activities Services Outbound Logistic Marketing and Sales Firm Infrastructure Figure 4: Support Activities Human Resource Management Support Activities Technology Development Procurement 3.0 Quality of product and service quality in value chain: Quality products are made ​​up of many elements and many different conditions in the product life cycle. Quality of product/service based on such factors as: the quality of equipment and machinery, quality employees, quality marketing, quality management, quality materials and quality from suppliers. So we can see the quality of service is added through each stage of the value chain. (Ulrich and Eppinger, 2000), for example: a good product design plus good production materials will create a high quality product. In my opinion in order to improve the quality of services will involve almost of the stages in the value chain, but special emerged as Operations, Services in primary actives and Human resource management in support activities. Human resource management is very important in improving the quality of service. Any errors of management or training staff will affect the quality of services. Do well in management and staff training will help employees have more confidence and the ability to gain the trust from customers. For example: in the hospitality industry, HR need to assess the employee's skills to serve customers because they direct contact and service customer , so if there are any errors will affect the reputation and quality hotel. Operation process and services are also very important for the quality of service. The value of quality of service is increased primarily in two stages. Customer use of the hotel’s services always has high requirements on quality of service; companies need to keep the process running smoothly and smooth to customer satisfaction. For example, in term of hotel view, the operation should be included is the way the customer to be services since they reach at country.