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Organisational excellence

发布时间:2017-03-19
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Introduction

It is difficult to precisely define organisational excellence. Dictionary defines 'excelling' as superiority, or having an unusual degree of good qualities. Based on a research by the European Foundation for Quality Management (EFQM), "organisational excellence is having the right leadership, the right planning and ways to implement those plans and managing its people and other resources effectively". It is important for every business to integrate organisational excellence in order to achieve its goals, targets and strategy. In order to achieve this, there must be strategic planning to excel and have a good understanding of the core business processes and involvement of the people.

The process in achieving organisational excellence is through process analysis, self assessment such as statistical process control (SPC), failure mode and effect analysis (FMEA), design of experiments (DOE) and benchmarking, identify the improvement opportunities for the organisation and people development. The overall framework of organisational excellence is shown in appendix 1 and it shows that it starts with the vision, goals, strategies and mission which must be fully thought through, agreed, and shared in the business. (Oakland, 2001)

Organisational excellence is user driven and it cannot be imposed from outside the organisation. In order to achieve them, it requires a mindset change to break down existing barriers by having serious and committed leadership. Every organisation needs to have a clear and sound policy to start its journey towards excellence for instance, organizations needs to develop and state its policy on quality and its implementation and it must be adopted by all its employees. (Oakland, 2001) With clear understanding of the organisation goals and objectives by the employees, it enables them to maintain their performance up to par to reach the organisational goals.


Service Excellence

Service excellence refers to meeting customers' requirements and achieving customers' satisfaction. Quality often indicates excellence of a products or service. In order to achieve service excellence is to first achieve organisational excellence which then leads to high quality products or services. Excellence can be achieved through excellence systems and through a people system. It is best achieved through both methods.

Quality is defined into five categories by Garvin, which are transcendent whereby it can't be seen or defined until it has been experienced, product based which means that quality can be measured and it is precise based on its product features, user based is basically based on customers preference and gaining highest satisfaction. However, this measurement varies upon individuals. As for manufacturing based, it is based from the supply side whereby products manufactured are complied to requirements and value for money is based on the measurement of customers' willingness to pay. (Lecture notes, week 2) Sometimes it is rather difficult to describe quality as mentioned above, there are a few ways to look at it and it differs according to individuals and organisations. Thus, organisations need to be clear on what type of quality are they looking for to be able to read its goals.

Quality or excellence system is an important factor in every organisation whether it is product based or services. Every paying customer demands for quality and every organisation needs to close the gap between expectations and perceptions. The wider the gap is, the lower the quality being produced. In the competitive world today, quality is one of the four building blocks of competitive advantage (refer appendix 2). An organisation with quality as its focus, will be able to create a sense of purpose for its workers such as creating an atmostphere of belonging and importance to the organisation. This enables to bring the best out of its employees. Organisations are accredited and can increase market share by using excellence models such as EFQM, TQM and ISO 9000.

Total quality management (TQM) is an important process of organisational excellence. According to ISO8402, TQM is "the management approach of an organisation, centred on quality, based on the participation of all its members and aiming at long term success through customer satisfaction, and benefits to all members of the organisation and to society". TQM includes all quality management principles to all aspects of the organisation which includes customers and suppliers and integration with the key business processes. (Dale, 1999) The simplest way to explain TQM is it's the common co-operation of everyone in the organisation and related business processes to produce products and services which is able to meet customers' expectations and needs.

For any organisation to be efficient and effective it starts from the top of the management team which are able to show their commitments and they are serious about achieving world-class standards. Organisation needs to be able to develop clear and long term strategy and able to integrate them with other strategies and also with the business plans of the organisation such as building service quality into designs and processes and developing and improving the organisation's structure to support improvements in procedures and systems.

Service excellence is equivalent to service quality and services are characterized as different from products as they are said to be intangible, such as consultations with a doctor or an experience staying in a hotel. The production and consumption of a service usually happens about the same time and the service process is part of the service quality. Besides that, variability often happens in services as it is difficult to keep the exact same standard all the time. When a company has successfully assessed its customers' needs, and able to deliver them into service systems and standards, and recruited and trained employees, it must then be able to deliver its 'promises' to its customers. Thus, it is beneficial to have quality systems to help ensure this. (Dale, 1999) After achieving its service quality the next most important step is to have a system to monitor and measure its success. This can be done through research and evaluation among employees and customers, using focus groups, discussions, surveys and interviews and sometimes mystery shoppers, have collection and analyse customers' complaints and feedback from customers on a time-to-time basis. This is to ensure that services are well delivered and if they are not, recovery activities can be done.

There are many ways to achieve service excellence, and different authors have different methods and principles however it is found that they are all moving on the same track. According to Francs Frei of Harvard Business School, it is important to manage and balance the four elements of service offering, funding mechanism to provide that service, employee management system and customer management system to achieve success. In an organisation, the most important is to determine what are the core areas that they want to succeed in and not offering excellence in everything to everybody. For instance, two well known hotels Premier Inn and Hilton Hotel, Premier Inn offers low prices but very minimum customer service, lack of facilities and ambience, however, Hilton on the other hand offers more facilities, comfortable and posh ambience and top-notch customer service. Premier Inn does not try to offer the service of Hilton and vice-versa because both have their own pricing and customer service to deal with as part of their business. Instead of trying to excel in both aspects, they have chosen one aspect and excel in it. Thus, according to Tarantino, service excellence can be defined as what a business decides to excel in and not trying to excel in every aspect and at the end will only lead to service mediocrity. (The Physician Executive, 2008)

The second element for service excellence according to Tarantino is related to funding. It is costly to provide excellent service and to overcome this issue there is two ways to look at it. Firstly, is to accept that it is essential to spend more now to attract more customers from competitors or create equality between values added services and operational savings. Next element is employee management. In the service industry, the success or failure of service excellence is all depends on the employees. (The Physician Executive, 2008) Service quality is defined by customers but created by employees. To achieve excellence, firstly company's needs to provide training and resources for its employers to build and improve themselves and nowadays, team building trainings are often provided by companies to improve efficiency and building stronger relationship among employees. In the service industry, employees must be empowered to solve problems at the point of occurrence and not prolong them.

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