Introduction

Quality in the work In the research on new service development

environment: (NSD), the interest has been mainly on
a prerequisite for structural and design aspects of the service
offering, on the service process with
success in new supporting resources, and on organizational
service development issues including tools and methods for idea
evaluation and customer need analysis (Johne
and Storey, 1998; Edvardsson et al., 2000).
Bo Edvardsson and One example of a focused area is the role of
BengtOve Gustavsson technology in services and of technology
readiness aspects (Parasuraman and Colby,
The authors 2001). However, not much attention has been
Bo Edvardsson is Professor and Director and paid to the work environment conditions that
BengtOve Gustavsson is Professor and Researcher, both are necessary for service oriented and satisfied
at the Service Research Center, Karlstad University, employees. In this article, we will address this
Sweden. important issue by focusing on work
environment requirements in NSD.
Keywords
The customer perspective has dominated in
Working conditions, Service quality, Participation, service quality and NSD research. The focus
Job satisfaction has been on drivers of customer satisfaction
Abstract and customer perceived quality at the expense
of the work satisfaction of the employees and
In research on new service development (NSD), the interest
has mainly been on structural aspects of the service offering. quality factors in the work environment. An
Not much attention has been paid to work environment important question in service research has
conditions forming the basis for service oriented and been: ``What is needed in order to create value
effective employees. Addresses this issue by focusing on and high quality in the eyes of the customer?''
work environment requirements in NSD. Regards employee Not much has been said in the literature
work environment requirements as a key factor for success about the employees and what is required to
when designing and implementing new services. After meet their needs and expectations. Instead,
studying work environment requirements in the working life the discussion has been on the characteristics
science literature indentifies five general requirements. These
of the employees, such as attitude,
have been used when analyzing data from an empirical
competence and behavior, but very little
study on work environment conditions and requirements in
service organizations. The analysis and interpretation shows
empirical research is available on work
that many requirements are the same in service environment requirements. Schlesinger and
organizations as in manufacturing companies but also that Heskett (1991a, p. 149) argue that ``customer
there are distinct differences. Based on the analysis presents satisfaction is rooted in employee
a sixth requirement. Examples of requirements are: the satisfaction'' and they have developed the
ability to control the work situation and to be involved in the service profit chain model, where internal
decision-making processes, a safe physical work service quality drives employee satisfaction,
environment and the ability to develop social relationships employee retention, and external service
through the work. quality. External service quality drives
Electronic access customer satisfaction, customer retention,
and profit. They also argue that increased
The Emerald Research Register for this journal is
external service quality, customer satisfaction
available at
and profitability will have a positive effect on
http://www.emeraldinsight.com/researchregister
employee satisfaction. Furthermore,
The current issue and full text archive of this journal is increased employee satisfaction will result in
available at improved internal service quality. Schlesinger
http://www.emeraldinsight.com/0960-4529.htm and Heskett (1991b) have developed two
models: the cycle of success and the cycle of
failure where the ``customer cycle'' and the
Managing Service Quality
``employee cycle'' are interdependent. In the
Volume 13 . Number 2 . 2003 . pp. 148-163
# MCB UP Limited . ISSN 0960-4529 cycle of success, the critical role of the
DOI 10.1108/09604520310466851 employees, their satisfaction, extensive
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Bo Edvardsson and BengtOve Gustavsson Volume 13 . Number 2 . 2003 . 148-163

training, broadened job designs, above We conclude with a discussion on research

average wages, and positive service attitudes contributions, managerial implications, and
are focused on. The employees are viewed as suggestions for future research.
an essential resource without discussing in
depth and without empirical research, what is
necessary for ``resource efficiency'' and good Theoretical points of departure
work environment conditions. The main
question has been ``What is required of the First, we present an overview of the research
employees?'' not ``What is required of the on work environment. Then we proceed with
work environment?'' a more specific discussion on the differences
In NSD research, much effort has been between work environment requirements in
devoted to determine what constitutes good service organizations versus work
service but not very much on how to obtain environment requirements in manufacturing.
this in an organization. In this article we view
the requirements for employee work Work environment requirements
environment as a key factor for success when One question that has been in focus in a
designing and implementing new services. We number of studies during almost a century of
have studied work environment requirements research on working life science is: ``What is
in the working life science literature and required for people to experience high work
identified five general requirements. These satisfaction?'' Today most researchers agree
have been used in an empirical study on work on which main factors and conditions are
environment conditions and requirements in central for the constitution of ``the good
service organizations. The analysis and work'' (Stenbeck and Gustavsson, 1980;
interpretation show that many requirements JaÈrvholm, 1996). Eriksson (1996) claims that
are the same in service organizations as in
three main categories are of interest. The first
manufacturing companies, but also that there
is the content and character of the work. The
are distinct differences. Based on the analysis
second deals with the organization of the work
we have added a sixth requirement, namely
and the employee's possibilities for
the possibility for the service employees to
self-control, and the third concerns the social
sometimes distance themselves from the work
relations in the work, especially social
environment.
support.
Our aim is to address what demands should
To these three main categories shall be
be put on the work environment in order for
added those that have to do with the physical
the employee to experience high work
health. According to Baron (1995) there is
satisfaction; this in turn is considered a
now a tendency to take for granted that the
prerequisite for the service encounter to be
positive also for the customer. These organization should offer a safe, healthy and
demands are then linked to current theories comfortable physical work environment for
and views regarding the new service the personnel. The physical work
development process. environment is not given any consideration
To address the stated objective, we begin unless it deviates from acceptable conditions
with an overview of research on work and values. This does not mean, however,
satisfaction and turn to the working life that it is unimportant.
science discourse. Our focus is on work In certain contexts, health and stress
environment requirements with an emphasis appears in a main category of its own. This is
on what is specific for service producing of course not true, if the main categories are
organizations. We then present the results seen as prerequisites or possibilities for
from an empirical study on work environment individuals to experience work satisfaction. In
demands in services and list the six this perspective, health/stress is rather a
characteristics or requirements. These consequence of other conditions. Despite
requirements are related to the new service this, there is perhaps a reason to see it as a
development process (NSD), and we discuss category of its own that deserves special
its implications for NSD. We argue that work notice.
environment requirements should be Earlier research has shown that
integrated in the different phases of NSD and employment should give the individual an
propose how this integration can be managed. opportunity to:
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. exercise influence and control over one's required tasks, it was his/her own problem. In
work situation; a society where working life to a large extent
. experience security and meaning; consists of services, there are demands on the
. develop social relations at and through individual similar to those that earlier applied
work; to career seekers. In service jobs, the
. maintain good health and avoid negative employees are expected to use both body and
stress; and mind, have an interest in the work, and really
. work in safe physical surroundings. care about the people to be served.
The statements regarding ``the good work''
Relations with the customers
are based mainly on studies of work
A considerable difference between working in
environments typical for manufacturing
the industry respectively in the service sector
companies. The research tradition that has
is the relations with the customers. Owing to
produced these results has emerged from the
the interaction between producer and
industrial society's need to examine and
consumer, service producing jobs put
handle critically the negative effects of the way
different demands on the employees from
to organize its production. The question is
manufacturing jobs. The employees are part
whether the results from such research are
of the service, and their knowledge and
valid also for the service sector. Is the content
competence is often the service company's
in service jobs, which are characterized by
absolutely most important resource. It is
intense customer contacts, so different from
essential that the employees in a service
jobs without such contacts to warrant
company have social competence, i.e.
research on work in the service sector? We will understand and find it easy to get along with
revert to this question later on. the customers.
Sparks et al. (1997) maintain that a
What distinguishes service jobs from company can give the front-line employee one
manufacturing jobs? of three different kinds of empowerment for
The word services is often used as a customer service: total, limited, or none at all.
composite for a number of activities whose With empowerment they mean freedom and
only common character is that they are flexibility to decide, take responsibility and
abstract or intangible unlike goods, which are solve problems in interaction with customers.
physical products (Edvardsson et al., 2000). Whether the interaction is successful or not
The basic criterion for singling out and also depends on the employee's way of
defining the service sector is to distinguish communicating, which can be ``appropriate''
that the object is people and not machines or ``not appropriate''.
and products. The service is an activity or a A customer is most satisfied in an
process where production and consumption interaction with an employee who has
coincide. A service cannot be demonstrated, complete empowerment and uses an
stored, or moved, and the customer's appropriate way of communication. Least
involvement is often a condition for a service satisfactory is limited empowerment in
to materialize (Packendorff, 1994). combination with an inappropriate
Macdonald and Sirianni (1996) claim that communication style. Limited empowerment
there used to be a clear distinction between is perceived by the customer as bureaucratic
career and job. To make a career, a common and impersonal, and the inappropriate
integration of the personal identity in the communication style is not appreciated
work (or rather the opposite) was required. because the employee shows little interest in
Only a physical activation and a limited part the customer's wishes.
of the individual's intellect and feelings were Bettencourt and Gwinner (1996) claim that
required for ``regular jobs''. The worker could there are relatively few studies focusing on the
be physically present but emotionally absent actual encounter despite the increased
without appreciably affecting the work interest in interaction between personnel and
performance negatively. The authors argue customers in the service sector. They have
that a worker at an assembly line could studied this from the employees' perspective,
express his/her displeasure over the job, i.e. how does he/she treat and perceive the
dislike both the supervisor and the work customer. They mean that the employee
mates, but as long as he/she carried out the alternates between various ``styles'' to meet
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different customer needs. For instance, they in different respects, and this leads to
use a variety of gestures and choice of words different alliances between the three parties.
based on perception/notion of the specific Alliances are formed and dissolved in various
customer or customer category. Each concrete situations. Decisive questions
``customer style'' requires its ``employee regarding which combinations are formed (as
style'', i.e. the employee adapts the style or well as dissolved) are for instance to whose
conduct according to the situation. advantage it is that the job is organized in a
According to Bettencourt and Gwinner certain way, and who should be considered
(1996), personnel in the service sector, responsible for having caused various types of
particularly those with daily customer dissatisfaction. In jobs with a high tempo and
contacts, run a high risk of being subjected to with time pressure, employees often become
role conflict and burnout as a result of irritated with ``slow'' and/or ``difficult''
demands from both the company customers and not with the management.
management and the customers. This has Instead of putting demands on the
been called ``the two bosses dilemma'' and management to slow down the tempo and
describes the conflict that can arise when the lower the time pressure, they want the
employee feels forced to satisfy two opposite customers to speed up (Leidner, 1996).
demands at the same time. Leidner (1996) is There is no real consensus whether
on the same track when he points out that the customer contacts generally speaking affect
blue-collar worker ``only'' has to follow the jobs positively or negatively. Schou (1991)
supervisors' regulations, while the employee claims that it is an important variable in
in a customer interactive service job, literally explaining work motivation. He means that a
speaking, has to take orders from anybody. high degree of customer contact makes it
The blue-collar worker usually has only his easier to see the results of one's work.
``physical'' task to consider while the service Front-line employees with daily customer
provider's mood, facial expressions and contacts experience greater variations and
choice of words are under constant self-determination, have a better overall view,
observation. see their tasks as more important, and see the
It is less suitable to monitor and control results of the job more clearly than people
employees in a traditional way in the service who have less frequent contacts with
sector than in manufacturing companies, the customers.
reason being that the discontent it causes However, Macdonald and Sirianni (1996)
among the personnel can have a direct question whether we can serve and still be
influence on the relation between the considered on equal terms. In many service
company and the customers. Some professions the concept of ``master and
companies use ``management by customers'' servant'' still dominates. This implies that the
to solve the dilemma with control over the customer is ranked higher than the employee
employees. This is built on feedback from the and thereby has a certain right to behave
customer, who therefore indirectly becomes disrespectfully and put various
the supervisor. Thus, the personnel is (unreasonable) demands on the subject.
deprived of the real control over the work at There is an asymmetry regarding respect for
the same time as a perception of freedom is the other person that is built into the very
created (Fuller and Smith, 1996). Abiala and service structure. For instance, Leidner
Ahrne (1995, p. 210) write: (1996) has pointed out that employees at
A certain freedom is needed for decision making McDonald's are not allowed to answer rude
for the service providing employee to produce customers in kind under any circumstances.
his/her best. But the employer has to supervise
the employees in order to command and plan the The service encounter
activities.
A service encounter between customer and
A rather simple state of opposition has existed company often takes on a personal touch.
historically between employer and employee However, it is an illusion to believe that it
in the industrial society. This is more entails a personal relationship rather than an
complicated in the service sector, since organized social encounter. In many service
customers are involved as a third party. It is in jobs there is a practiced interaction, i.e. there
the interest of the management, the are routines and rules for how the employee is
employees and the customers to exert control expected to treat the customer (Abiala and
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Ahrne, 1995). With the routines the peace and quiet is bigger than the need for
management tries to influence the employee's social contact.
actions based on a conception of how
customers want to be treated in order to Emotional labor
experience the organization and its services Hochschild (1983) has focused on this in a
positively. This routine must be concealed study on the working conditions for the flight
since each customer wants to feel unique. If it personnel in the USA. She means that in
is evident that the action/treatment is a learnt addition to tasks that require muscle strength,
behavior, the customer can react negatively, ``physical labor'', work entailing interaction
which ultimately can lead to a broken can be called ``emotional labor''. With this she
relationship. proposes (1983, p. 7) that the work:
Leidner (1993) states that people with a . . . requires one to induce or suppress feelings in
service job must follow the employer's order to sustain the outward countenance that
produces the proper state of mind in others ± in
stipulations, meet the customer's demands
this case, the sense of being cared for in a
and minimize his/her own annoyance, all at convivial and safe place. This kind of labor calls
the same time. The organizational regulations for a coordination of mind and feeling, and it
often mean that the service personnel cannot sometimes draws on a source of self that we
meet the customer's wishes, because the honor as deep and integral to our individuality.
regulations do not allow the desired flexibility. She points to an increased degree of
This, in turn, can cause the customer to see instrumental approach to the question of
the employee as a robot, unreasonable and feelings when they ± instead of being genuine
stupid. But rules are not altogether bad. They and spontaneous ± constitute a link in the
can give the employee ``protection'' against service organization's sale of services. In this
attacks on his/her person. People in jobs ``emotional labor'' it is the employee that
where they are often exposed to insolence and controls the feelings, and he/she is often
insults can use the rules as a defense; they expected to act as though it were a question of
only follow the existing rules, thus not personal relationships. According to
experiencing the insults as personal. This Hochschild it is a matter of a transformation
indicates that there is a need to be able to of the norms for feelings in the private life
distance oneself socially from the customer since our feelings often are controlled by the
and the implications of customer contacts one organization's commercial motives. She poses
way or another. the question whether these commercial
It is almost inevitable that this type of job relations will color also the general interaction
causes the employees to develop an between people.
instrumental attitude to their own identity A concept that was coined at the beginning
and to relations with other people. Abiala and of the 1970s and often used in this connection
Ahrne (1995) are also interested in what it is burnout. Maslach (1982) defined burnout
means to have a service job, i.e. how it affects as a syndrome of emotional fatigue,
people. They propose that there is a risk that depersonalization and reduced personal
the norms that guide the interactions between performance. Burnout has partly the same
customer and employee also carry over to the consequences as stress in general, but its
private sphere. uniqueness is that it originates in the
Service jobs often require that employees occupational social interaction, which often is
are flexible and given the freedom to make intense and emotional. According to Maslach,
decisions in order to meet customer requests. the risk for burnout is greater when the
For obvious reasons, routines are less suitable individual feels restricted by other people's
in such cases. To have a service job, whether demands, of demands by the organization and
routinized or not, seems to entail a risk for a by those she is put to serve and assist. Stymne
personality change. Abiala and Ahrne (1995) (1991) has also shown in a summary of
state that an employee can be affected in such different studies that people in occupations
a way as to treat personal friends in the same characterized by intense contacts between
manner as customers since the job role has employee and customer are more exposed to
been integrated in the personality. It is also physical on-the-job injuries than others. At
common that they withdraw from other first this phenomenon was believed to affect
people in their spare time since the need for people in nursing and health care jobs and in
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the social service field such as medical heterogeneity of the whole service sector.
personnel and social workers. Nowadays the Based on this reasoning, nine service
concept is used in almost all professions and organizations within three areas were selected
branches, and no occupational category is for the analysis:
immune to burnout (Henderson, 1996). (1) Public sector without considerable degree of
Thus, the work in contact intensive service self-control:
occupations (high touch services) differs . library (librarians);
decisively from the traditional industrial job. . primary care (nursing personnel
The interaction with the customer is the main excluding doctors); and
factor, which means that this type of job now . university (university teachers).
must be considered much more in terms of a (2) Public sector with certain exercise of
social relation. We will therefore discuss what authority:
demands employees should put on the . social insurance agency (agency
organization to enhance the chances of personnel);
developing the relation in a positive way. This . social welfare agency (social
is particularly important in the development workers); and
and implementation of new services. . police force (policemen with field
duty).
(3) Private sector:
Results from an empirical study . travel agency (sales personnel);
. law office (lawyers); and
What demands can be put on the job design . restaurant (waiters and waitresses).
in the service sector in order to be labeled
Data were collected through interviews with a
``the good job''? Following is an attempt to
selection of employees in the chosen service
sum this up, partly based on earlier research,
organizations; in all cases, people who have
partly based on results from our own
direct contact with customers/users,
extensive empirical study of the specific and
altogether 45 people, i.e. five within each
basic characteristics in the working conditions
organization. The selection was made to
in different service organizations, where the
reach diversity and a variation range rather
job is based on close interaction with
than statistical representativeness. This is why
customers.
Over a period of years, a project was carried it was natural to carry out fewer but in-depth
out at the Service Research Center, Karlstad interviews. The intention was that the group
University entitled ``From production to of respondents would be characterized by
interaction ± a study on the prerequisites for mutual differences in the various respects
work satisfaction in customer-intensive mentioned above.
service jobs'' (Gustavsson, 1997). In this The interviews were done with the help of a
project, the specific and basic characteristics specific interview guide designed around a
of the work conditions in a number of number of main variables crystallized from
different service organizations, where the the previous literature study. Each interview
employees' work situation was marked by lasted approximately two hours, was tape
interaction with customers, were studied. If or recorded, typed out, and used as a basis for
how these characteristics influence the analysis. The interviews and the data analyses
employees' work satisfaction was also were done with an attempt that can be said to
considered. After a literature search, the be shaped by the principles for ``grounded
results from the study were compared with theory'' in the sense that the empirical
existing theories on work satisfaction and material by their expressions, which are linked
discussed as to their relevance regarding to the aim, forms categories. These were
customer intensive service work. systematized during the course of the work
The main part in this project was an and finally formed into core categories. After
empirical study of a number of individuals the analysis of the empirical material and the
working in direct customer contacts in a shaping of the core categories, the results
variety of service companies/organizations. were compared with existing theories on work
The aim was to gather and analyze material of satisfaction. This comparison was done based
great variety to get as conclusive results as on the categorization in main variables that
possible, even if it is not possible to reflect the the previous literature study had resulted in.
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The result from this study stresses that ``the which does not mean, however, a higher
good work'' should give the individual an degree of self-control. On the contrary, for
ooportunity to: exercise influence and control example in certain cases where the
over one's own work situation; develop management by regulations in combination
security and meaning; develop social relations with required dependence on technology,
at and through the job; keep a social distance limits the control for the employee as well as
to the job; maintain good health and avoid the user.
negative stress; and work in safe physical The job design and the introduction of
surroundings. These are detailed below. information technology such as computerized
switchboards, both decrease and increase the
Opportunity to exercise and control over possibilities for control by the personnel. Here
one's own work situation we have an interaction between customer and
Here we can distinguish two aspects: the right employee with the help of information
to exercise self-control and co-determination. technology, the effect of which is very difficult
By self-control we mean the individual's to see. Many feel stressed by telephone calls
scope to exercise control over the organization and e-mails. One respondent said:
of one's own work, for instance, office space, The telephone controls everything . . . I am on
methods, planning and development and to call from first thing in the morning, and if I am
be allowed to set one's own work hours. busy writing the minutes after a meeting, I must
Co-determination means the individual's count on interruptions . . . one has to be prepared
to alternate between jobs; I can't control the
scope to exercise influence over matters not
phone.
only related to one's specific job and work
environment but also pertaining to the At the same time, an increased use of
company as a whole. Thus, we mean computers can offer opportunities to control
influence on factors in the development of the customer flows, provided the technology is
entire organization that indirectly can affect used in the right way.
one's own work environment. This type of In many respects there are close similarities
influence often comes in some form of in influence and control in service jobs and in
representative system, for instance the union. goods producing jobs. Nevertheless, there is
Another common way of expressing this is to always a certain ``competitive relationship''
refer to control in work, respectively control between a customer and an employee. Thus,
over work. a legitimate claim for a good work
The conditions for influence and control or environment for the employee in the service
perceived control in and over one's work sector is that the customer's claim on
differ considerably between service jobs. The influence can be balanced against that of the
degree of influence seems to depend partly on employee's. There is no absolute contrast in
employment, what degree of control the users this but a balanced proportion should be
and the surrounding systems exercise (such as possible to achieve.
telephone times/computers schedules, etc.),
partly on what type of service relation it is and Opportunity to develop security and
to what extent one is dependent on the special meaning
professional competence that the service The individual's basic security needs must be
producer can offer. Individuals in professions fulfilled with regards to physical, material and
claiming to have a good control content-wise emotional aspects. In order for the individual
in what they do, most often also have a greater to keep the basic security developed during
autonomy. This is true even if they are childhood and adolescence years, the adult's
controlled by the users' needs and by various physical-material and emotional needs must
``systems'' simultaneously. be met. At work one needs security in life and
The relationship with the users to a very health, a steady income, positive relationships
high degree affects how one perceives the with other people, and to be able to feel that
chances for influence and control. The the work is important and serves a purpose.
conditions differ concerning professional In this dimension we place ± above all ± the
content and the degree of free will in the work content and extent but also
contacts. Professions that exercise authority opportunities for continuous development as
in combination with a ``service function'' well as material benefits. It also is important
often have a certain distance towards the user, to see the relevance and positioning of one's
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tasks in a larger context. It can be a question social contacts are highly important. The
of the degree to which the job is split up or, if need for social contacts are considered one of
one has responsibility for the entire service, the basic elements in man's nature, but the
whether one can see the results of the work. In concept of social contacts and social support
the customer intensive service job it is is often used to emphasize the supporting
necessary to interact with the customer, who functions that such contacts in the work
thereby becomes a part of the total work environment can have. Time and again
environment. In order to perceive meaning in support from colleagues, managers or
the work situation, it is also necessary for the relatives has been a buffer between stress and
customer interaction to be meaningful. One health. The feeling of affinity as an aspect of
respondent says: social support is also discussed in many
A good job is when the person you work for or contexts.
with is satisfied; to help someone feels good. It concerns to what degree and in what way
the job affords prospects to meet and feel
It concerns also qualification requirements,
kinship with colleagues and customers, and to
competence and learning, i.e. what demands
what degree the work offers social contacts
are put on the individual's skills, whether the
that can be supportive in the profession. The
job utilizes all the resources or is limited to
contact with the customers is something that
certain capacities such as perseverance or
distinguishes service jobs from manufacturing
physical strength. Yet another aspect is
jobs. One respondent expresses this:
whether the job offers the individual
I experience the contact with the customers as
opportunities for progress either through very positive; fun to talk to people; great to be
development of the job or through education. able to help . . .
Here we count the individual's rights to
The opportunity to develop social relations
change assignments, to be promoted to
also concerns the effect that the work has on
another position or given a chance to develop
the individual's other social relationships
the job in the present position qualitatively. In
among family and friends.
this aspect too, there is a strong link to the
The prospects of social contacts at work
customer as a base for interactive learning.
concern the extent of closeness to other
Another respondent expressed this:
people in the workplace but also what type of
I learn something all the time . . . each client
gives me something new if I listen . . . social relations are developed. The social
encounter with the customer is characterized
Meaningfulness also entails respect, by the situation and the focus in that
professional pride, and a good social particular situation. It is of great importance
reputation within and outside the that there is a close emotionally stipulated and
organization. Even in this aspect the committed contact with the customer.
customer's role as participant ± and in this
case as ``giver of identity'' ± is central. To be Opportunity to keep a social distance to
able to carry out a service together with the the job
customer with professional competence and A very important factor in customer intensive
with high quality, makes professional pride service jobs is the aim by the employee to
possible. In other cases where the relation disassociate from the social contacts at the
with the customer is less intense, a end of the day. One respondent says it like
prerequisite for professional pride is that one this:
can master the ``techniques'' that are needed You more or less live with your job . . . but with
for producing high quality services. Finally, time you learn to minimize this feeling. In the
there is the question of material job rewards in beginning you bring all the problems home and
become much too much engaged.
the form of salary, sideline income, free time,
etc. Even such special fringe benefits as It is necessary that the work environment be
attractive business trips are important. designed to allow for social distance. It is also
important to design and provide concrete
Opportunity to develop social relations at ``techniques'' to maintain such
and through the job disengagement. This issue has not attracted
In all research on factors in the work much attention and should be focused on in
environment that affect the perception of the continued research as well as with concrete
job, the presence of and opportunities for measures to increase the prospect of a positive
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work satisfaction in customer intensive service and for the customer'' is necessary. This
jobs. concerns the physical risks as well as the
It is also a question of designing the job so capacity of the physical environment to
that it can be combined with leisure time and safeguard ``the content'' in the customer
family, and that the social contacts at work do relationship, for instance sensitive
not negatively affect one's desire to associate information.
with others.
Differences in application between
Opportunity to maintain good health and service and manufacturing jobs
avoid negative stress Many of the factors that emerged in our study
In many studies health and stress is treated as are similar to those earlier expressed as
a separate type of variable affecting work important in industrial jobs. At the same time
satisfaction. Of course, this is incorrect if the it is essential to stress that the content in the
different variables are viewed as prerequisites various factors/work demands are dissimilar
or possibilities that affect the individual's in service and industrial jobs. The
feelings about the job. In this perspective fundamental difference is the role that
health and stress becomes rather a customers play in relation to the employee.
consequence of how other conditions are The customer provides a chance to develop a
designed. Despite this, perhaps there is reason meaningful social teamwork: the customer is a
to see it as a group of variables on its own that co-producer in all the sensemaking processes
deserves special attention. By health and that are valuable for the employee's feeling of
stress is meant the individual's subjective job pride and social contexts.
perception of how the job affects the well- There is also another and more overlooked
being. Stress can be seen as a collective word aspect of the customer's co-production,
for a number of different phenomena where namely the risk that the employee's
inner and outer demands are greater than engagement in and for the customer becomes
what the individual is able to handle. It is so great that it affects him/her negatively.
especially important to avoid the situation Therefore, there is a need to create a social
where a lack of time affects tasks that involve distance in the relationship with the customer.
customer relations. Particularly sensitive We have in our study offered concrete
situations are: techniques to achieve such distance, for
. constriction to certain ``exposed'' instance through ``debriefing'', as in the police
positions such as ``service desks''; force.
. a high degree of complexity making it
impossible to produce the service as
quickly as the customer is expecting; Discussion on quality of the work
. limitation of resources to do the job; or environment: implications for NSD
. exposure to violence or threat of violence.
As mentioned in the introduction, the aim of
Opportunity to work in safe physical this article is to contribute to knowledge on
surroundings how work environment conditions affect work
According to studies referred to earlier, there satisfaction and thus customer perceived
is now a tendency to take for granted that the service quality. We begin this section with a
organization shall offer a safe, wholesome and short discussion on the service logic and the
comfortable physical work environment for importance of the service encounter for
personnel. Unless it deviates from acceptable customers' perceptions of quality of services
norms it does not get much attention. This and the role of front-line employee interaction
does not mean, however, that it is with customers.
unimportant. The same is true also for service
jobs, and in this respect service jobs do not Service characteristics and the service
differ from manufacturing jobs. encounter
The work organization shall offer a safe, In the literature, the following four service
wholesome and comfortable physical work characteristics are presented most often:
environment for the employees. Since the (1) immateriality;
customer is a part of the physical environment (2) production/delivery/consumption;
in service organizations, ``a protection against (3) customer as a co-producer; and
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(4) heterogeneity (see e.g. Edvardsson et al., 2002). Every time a customer gets in contact
2000, p. 33). with an element of the service process, he or
she judges the service producer. This means
Services are usually more or less abstract or
that service providers must:
immaterial, which makes them difficult to
. . . develop not only the precise form of the
inspect and assess before buying them. service, but also the appropriate nature of
Services do not have a lifetime, they only exist interaction with customers. Most often, this
under a short period and they usually cannot makes a new service far more complex,
be stored or saved. Services are usually partly conceptually, than the development of a new
produced, delivered, consumed and marketed tangible product (Johne and Storey, 1998,
p. 186).
simultaneously. This has the effect that
quality must be built in as the service is The criticality of the service encounter is also
developed. the very essence of a metaphor often used to
Quality is not engineered-in at the describe the service encounters. Perhaps the
manufacturing plant, then delivered intact to the best known metaphor is the ``moment of
customer. In labor-intensive services . . . quality
truth'' (Normann, 1984), which emphasizes
occurs during service delivery (Parasuraman
et al., 1985, p. 42). the uniqueness and importance of every
interaction between customer and service
Services usually involve the customer and provider.
employees in the role of co-producers by way
of supplying information and other inputs to The new service development process
the process, performing one or several The NSD process may be described in many
activities in the service process, or marketing different ways depending on the aim of the
the service through talking to others about description, the context, and the researchers'
impressions and perceptions. These ``world-view'' to mention a few. Our point of
characteristics are known as the service logic: departure is a simple model based on four
Service encounters, in particular those involving generic phases:
organizations' employees, typically have a high (1) service idea generation;
``impact'' on consumers, and the quality of the
(2) service strategy and culture gate;
service encounters is thus an essential ingredient
in the overall quality of the service experienced (3) service design; and
and perceived by the customer (Lewis and (4) service policy deployment and
Entwistle, 1990, p. 43). implementation (Edvardsson et al.,
2000).
Many services come about in the interaction
between the service provider and the The first phase, service idea generation,
customer. The customer's experience or includes issues such as idea generation and
perception of the service encounter is in many idea evaluation in terms of sources and
ways the service from his/her perspective and techniques and idea screening. In the second
is the basis of its quality perception. Some phase, the service strategy and culture gate, it
service encounters are people-intensive, while is determined whether the idea is in line with
others are technology-based. Often it is a the company's strategy and culture. If that is
combination with emphasis on either one, the case, the necessary resources to start a
such as an interaction between bus driver and project and to develop the idea into a service
passenger or an appliance-based withdrawal are provided. The actual development is done
from a cash dispenser. For most, or at least in phase three, service design. This phase is
certain services the human-based encounter is often undertaken in a number of parallel and
the very essence of the service. In spite of this, sequential sub-processes. The fourth and final
relatively little is known about the dynamics phase, service policy deployment and
of the service encounter. implementation, includes implementing the
Research into the factors leading to service process in the service system,
customer satisfaction and dissatisfaction show marketing, training and other preparations
the key role of the employees and their before and during the actual launch.
competence and service orientation We will now discuss how the six work
(Johnston, 1995). Also research in environment requirements may be integrated
business-to-business contexts shows the key in the phases of the NSD process. We have
role of the employees' interaction with simplified the above-referred model into the
customers for high service quality (Gidhagen, following three phases:
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(1) the idea and project formation phase; to lead, coach, motivate as well as develop
(2) the design phase; and team members.
(3) the implementation and integration The work environment condition ± the
phase. opportunities for the employees to exercise
The idea and project formation phase influence and control over one's situation
Service ideas can be generated in many ± should be considered by the project leader
different ways, and there are many methods during this first phase of the development
for evaluating new ideas. The employees and process. The right to self-control and
experts on work environment conditions may co-determination were identified as key issues
contribute with significant ideas for new and may be seen as part of an employee-
services. But more important, they should be centric culture. The conditions for influence
involved in the project team evaluating the and control in and over one's work differ
ideas and when the design issues are considerably between service jobs, why the
discussed. employees should be involved and contribute
When the decision is made to develop a with their views early in the development
service idea into a service, the time has come process. As mentioned earlier, it seems that
to formalize the process and initiate a project. the degree of influence depends partly on
This will include the allocation of resources, what degree of control the users and the
project formation, project composition, and surrounding systems exercise (such as
the implementation of common values in the telephone times/computers schedules, etc.),
project organization. These stage gates serve partly on what type of service relation there is,
several functions. They act as the quality and to what extent one is dependent on the
control mechanism in the process. Before a special professional competence that the
project is allowed to proceed to the next stage, service producer can offer. Professions
essential tasks and deliverables must be claiming to have a good control content-wise
completed. Stage gates also serve as bail out in what they do also have, as a rule, a greater
points where weak projects are stopped and autonomy. This is true even if they are
resources reallocated to the more valuable controlled by the users' needs and by various
ones. The project team has the operating ``systems'' simultaneously.
responsibility in the design and In this section, we have argued that the first
implementation phase. The constellation of a of the six work environment requirements
project organization is an important strategic ± the right to exercise self-control and
issue, and work environment experts should co-determination ± should be focused on
be involved here. Edvardsson et al. (2000) from the beginning of the NSD process and
argue that in order to achieve designed-in include employees and perhaps also work
quality, people must agree on the service environment experts. Control over and in
concept and share the same values. One work is important to design-in when new
important step in achieving this is the creation services are being developed and specific tasks
of a mental model that is common throughout are planned.
the entire project organization. It must be To have influence in and over the idea and
shared by everybody in the project team who project formation phase is also of great value
has a key role in a service culture. in itself. That is a way of creating a feeling of
The new service development process is participation and ``co-ownership'' among the
multifunctional. It requires inputs from and employees regarding the new service. This in
active participation of people from many turn is a prerequisite for a successful
different functions in an organization, development of the following phases in the
including front-line employees, marketing, service development process.
and management. A key actor is the project The design phase
manager who has the primary responsibility We use three concepts to describe the
and authority for the project. He or she must designing of a service:
have the ability to maintain and balance the (1) the service concept;
customer-centric service culture with the (2) the service system; and
employee-centric culture focusing on work (3) the service process (Edvardsson et al.,
environment requirements and have the skill 2000).
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The service concept is the overall description, In this phase of the NSD process, all six
from the company's perspective, of both what work environment requirements should be
customers get during the service process and taken into consideration:
how they get it. It refers to the benefits that (1) influence and control in and over the
the service is expected to provide. Bowen work situation;
(1986) argues that the first step in this phase (2) security and meaning;
is to conduct a needs analysis and to specify (3) development of social relations in and
the service content. Here, it is important to through the job;
involve the employees that have customer (4) social distance to the job;
contact and information about customer (5) health requirements; and
preferences and how the services should be (6) a safe physical work environment.
delivered. We want to stress particularly the need to
The service system includes the company's create a distance between the customers and
organization, the service culture and the employees as an exceptionally important
employees, customers and the physical and factor in order to avoid stressful situations and
technical resources. These resources must the possible risks for health problems that are
form a whole and work together if the associated with this type of work situation.
company is to be able to offer services with Especially important in the design of the new
high quality. Once the service concept is service is not to underestimate the need for
determined, the actual design work begins as ample time for the service production.
the company builds up the needed resources We can illustrate this with some examples
and structures. At the same time, the service from our empirical material. Many of the
process is developed. The development of the interviewed travel agency employees
needed resources and the service process emphasized that the lack of time in relation to
must be integrated and done in parallel since the tasks to be carried out often generates a
it is the resources that realize the service feeling of stress. At the same time they
process. During this process, the service underlined that it is not the contact as such
concept might be revised if the needed with customers that is stressful. One person
resources are impossible to obtain. explained it like this:
Within the organization, employee I wouldn't be working in sales if I didn't find it
responsibility needs to be determined, jobs stimulating to deal with people; instead it has to
do with the work conditions (Gustavsson, 1997,
designed or re-designed, administrative
p. 89).
systems developed, and the guiding principles
made explicit. The job design and the Many respondents in ``front-line positions''
introduction of information technology such expressed similar views.
as computerized switchboards, customer The implementation and integration phase
databases and other ICT-based support Implementation and integration issues
systems decrease as well as increase the include service training, launch, and internal
possibilities for control by the employees. as well as external marketing. In this phase,
Often we have an interaction between the focus is on how the new service should be
customer and employee with the help of integrated in the current service system. Seen
information technology, the effect of which is from an organizational perspective, any
very difficult to see. Many feel stressed by change to the service system that requires new
telephone calls and information from different or different competence from the existing
databases. At the same time, an increased use operation can be considered a new service.
of ICT may offer opportunities to control Tax and Stuart (1997) have developed a
customer flows provided the technology is framework that deals with these issues. The
used in the right way. Training and informing first step is to audit the current service system,
the employees is an important process in the which includes an evaluation of the existing
design phase. While developing the service buyers and benefits. Central issues to assess
process, the activities that will generate the include the role and characteristics of current
service are specified, and the role, customers, the processes used to deliver the
competence, and responsibility of employees service, the benefits provided to customers,
and customers respectively must be clarified the skills, capabilities and personality traits of
and tested. the participants, and the physical facilities.
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The next step is to assess the new service show that customers fail to realize and use the
concept. A number of questions must be whole potential service. Therefore, there is a
asked and answered. What combinations of need to make customer training a strategic
features should be offered? What price should priority. The final steps of the implementation
be charged? Is the offering going to appeal to phase include marketing and launch. And
new or existing customers? once the service has been launched externally
Steps three, four and five assess the new as well as internally, the work of
service design from the perspective of administrating the service starts. This often
processes, participants and physical facilities. includes further service development. A
The aim is to identify the differences between modified service offer, new resources or
existing and new service systems and changes in the service process are all possible.
determine how to deliver the customer-driven When this occurs the service goes through a
features developed in the second step. One new, but less extensive, development process
method used to examine the critical elements from idea to implementation.
in the new service processes is service
blueprinting. To estimate aspects of service
process performance, simulations prove quite
Research contribution and managerial
useful. Overall, an extensive evaluation of the
implications
new service processes provides input into
system requirements and potential conflicts. In previous service research, employee
Service blueprints can also help to appraise characteristics have been discussed and
the participant requirements of the new related to customer perceived quality, service
service as well as work environment recovery, customer loyalty and profitability.
requirements. This is the fourth step and The employees' service attitude and behavior
includes the preparation of job descriptions, in interaction with customers have been
selection criteria, appraisal systems, training discussed and in ``the service profit chain''
programs and compensation schemes. During and ``cycle of success'' models, employee
this step, work environment conditions are satisfaction is viewed as a prerequisite for
key issues. external and customer perceived service
In addition to blueprinting, the physical quality. However, the effects of work
facility aspect of the service system can be environment conditions on employee
examined using the ``servicescape'' approach satisfaction, commitment and high
developed by Bitner (1992). The framework
performing front-line employees in people-
considers how three physical environment
intensive services have so far not been studied
areas (including atmosphere or conditions,
empirically and discussed in detail within
space/function and signs, symbols and
service research.
artifacts) provide a means of understanding
This article contributes with an overview of
environment-participant relationships in
the literature on work environment and an
service systems. This is the fifth step in the
empirical study focusing on people-intensive
process. The sixth step is to assess the impact
services, both within the public and private
of integrating the new service system with the
sector. Previous research on work
original.
environment conditions suggests that
The final step is to assess the capability of
employers should give the individual an
the organization to manage the change and
opportunity to:
identify strategic options available for service . exercise influence and control over one's
implementation. The risk arising from service
situation;
system integration may require organizations . experience security and meaning;
to reconsider their strategic options. Once the . develop social relations at and through
integration of the new service is done
work;
internally, it is time to educate both the . maintain good health and avoid negative
employees and the customer on how to use
stress; and
the service. This might be seen as a . work in safe physical surroundings.
controversial statement, yet studies in the
telecom industry reveal that as much as 70 per Our empirical study, focusing on people-
cent of customer complaints are due to intensive services, shows that these
customers committing errors. Other studies characteristics are important also in service
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organizations but that we have to add one work-contact are important prerequisites for
factor: opportunity to keep a social distance to high quality services.
the job. To arrive at favorable work environment
The need for social contacts are considered conditions, employees should be involved in
one of the basic elements in man's nature, but the NSD process. Furthermore, we suggest
the concept of social contacts and social that the NSD process includes the
support is often used to emphasize the development of a systematic follow-up and
supporting functions that such contacts in the assessment of the work environment
work environment can have. Time and again conditions. Service failures, internal
support from colleagues and managers should complaints, and negative stress resulting in
be a buffer between stress and health. sick-leaves should be monitored in the light of
Managers should assess in what way the job work environment conditions.
affords prospects to meet and feel kinship
with colleagues and customers, and to what
degree the work offers social contacts that can Suggestions for future research
be supportive in the profession. The prospects
of social contacts at work concern the extent This article contributes with some new
of closeness to other people in work and also knowledge on work environment
what type of social relations are developed. requirements for or associated with high
The social encounter with the customer is quality services. However, we need much
characterized by the situation and the focus in more in-depth, empirical research in this area
that particular situation. It is of great based on different empirical contexts. We
suggest studies focusing on more open and
importance that there is a close emotionally
professional services such as health care and
stipulated and committed contact with the
consulting services, more closed and
customer.
standardized services such as fast food or
The analysis and discussion above shows
cleaning services. It would also be fruitful to
that work environment requirements may be
cover continuous services such as public
and should be part of the NSD process and
transportation services and compare with
thus designed-in, not only for customers but
data from discrete services in restaurant and
also for the employees. The conclusion is that
hotel services. In addition to this, we
the work environment characteristics should
suggest research on business-to-business
be integrated into the NSD process.
services be compared with data from
However, in most service companies work
business-to-consumer services. Data from
environment requirements seem to be
different service contexts would most likely
neglected or viewed as something separate
reveal that a number of work environment
from the service and not included in the new requirements in services are generic, while
service development models and projects. some are context specific, and both categories
Service organizations in general and high must be considered in successful NSD.
touch interactive services in particular would We also suggest a theoretical project aiming
benefit from paying more attention to work at developing a conceptual frame of reference
environment conditions when developing new for high quality work environment in service
services as well as in the improvement of organizations. The points of departure should
existing services. This study suggests that be on the one hand the research on work
managers should be focused on the degree of environment requirements and work
self-control and co-determination, as satisfaction in general and on the other hand
perceived by the employees in and at work. the service research focusing on the logic of
Furthermore, both the positive and the services as well as the empirical studies on
negative influence of customer interactions service quality, which may provide some
and stress must be observed and assessed in a fruitful inputs, as a basis for this theory
systematic way and in a long-term development.
perspective. The effects of ``burnout'' can be Furthermore, we suggest a case study
very costly for the organization. Also aspects focusing on the importance of ``social
of the work environment linked to the distance'' in service jobs. This was the one
opportunities for developing social relations work environment requirement that emerged
at work, security, safe and a meaningful as specific for services in the empirical study
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Bo Edvardsson and BengtOve Gustavsson Volume 13 . Number 2 . 2003 . 148-163

reported on in this article. What is meant by Hochschild, A. (1983), The Managed Heart.
and what is needed for social distance in Commercialization of Human Feeling, University of
California Press, Berkeley, CA.
different service contexts and for different
JaÈrvholm, B. (Ed.) (1996), Arbetsliv och haÈlsa ± en
professional groups? What are the kartlaÈggning, Arbetsskyddsstyrelsen,
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short term and long term effects of not Stockholm (in Swedish).
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social distance? Finally we suggest a project development: a review of the literature and
annotated bibliography'', European Journal of
where a number of successful new services are
Marketing, Vol. 32 Nos 3-4, pp. 184-251.
compared with a number of service failures Johnston, R. (1995), ``The determinants of service quality:
focusing on factors explaining success and satisfiers and dissatisfiers'', International Journal of
failure where one area would be work Service Industry Management, Vol. 6 No. 5.
environment conditions and work Leidner, R. (1993), Fast Food, Fast Talk. Service Work and
Routinization of Everyday Life, University of
satisfaction. There are studies within new
California Press, Berkeley, CA.
product development with similar research Leidner, R. (1996), ``Rethinking questions of control:
designs. These studies may serve as a guide lessons from McDonald's'', in Macdonald, C.L. and
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technique for data collection and analysis. Temple University Press, Philidelphia, PA.
Lewis, B.R. and Entwistle, T.W. (1990), ``Managing the
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Further reading Eriksson, B. (1993), ``Vad haÈnder med arbetet?'',

Forskningsrapport 93:2, Arbetsvetenskap,
Bitner, M.J. (1990), ``Evaluating service encounters: the HoÈgskolan i Karlstad och Sociologiska Institutionen,
effects of physical surroundings and employee GoÈteborgs Universitet (in Swedish).
responses'', Journal of Marketing, Vol. 54, pp. 69-82. Johnson, M.D. and Gustafsson, A. (2000), Improving
Bitner, M.J., Brown, S.W. and Meuter, M.L. (2000), Customer Satisfaction, Loyalty and Profit: An
``Technology infusion in service encounters'', Journal Integrated Measurement and Management System,
of the Academy of Marketing Science, Vol. 28 No. 1, Jossey-Bass, San Francisco, CA.
pp. 138-49. Kelly, D. and Storey, C. (2000), ``New service
Bitner, M.J., Meuter, M.L., Ostrom, A.L. and development: initiation strategies'', International
Roundtree, R.I. (1998), ``Self-service technologies: a
Journal of Service Industry Management, Vol. 11
critical incident investigation of technologically-
No. 1, pp. 45-62.
based service encounters'', Arizona State University,
Lash, S. and Urry, J. (1988), The End of Organized
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Edvardsson, B. (1997), ``Quality in new service Capitalism, Polity Press, Cambridge.
development: key concepts and a frame of Schneider, B. and Brown, D.E. (1984), ``New service
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