Page 219 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes
Figure 10.1: Gaps Model of Service Quality

10.3.2 Service Triangle Management Model

There is a revolution taking place in the service industry, necessitating a radical change in every
service professional’s perspective.

Two models typify the change in the service perspective today:
 The Industrial Management Model: This is prevalent today and is a hangover from the
industrial era.

 The Market-focused Management Model: This is the model which can be used by service
firms as a replacement to meet the new environment changes for survival.

Note The gap is the difference between service delivery intention and capability and
what is being communicated to the customers.
The Industrial Management Model is an approach to organizing a firm that focuses on revenues
and operating costs and ignores the role personnel play in generating customer satisfaction and
sustainable profits.
The model is a hangover of manufacturing methods but, sadly, is even now employed by
many organisations. Firms that follow this model fully believe that the factors that bring in
the revenue are advertising, sales promotion, accessibility, distribution and locational
advantages. They are of the opinion that the cost drivers are personnel, operations and that
these should be controlled. Even service sectors that seek price-competitive advantages follow
this model.

Example: Jewellers of Mumbai employing Bengali goldsmiths. Even basic hygiene factors
aren’t met and the goldsmiths live and work in abysmal conditions. Another example would be
the myriad call centers that are sprouting all over India today. To get clients and projects, they
are pursuing cost-cutting measures as the means to control expenses.
Organizations following the industrial model believe that employees are indifferent, not very
skilled, do not have the right attitude and motivation and therefore cannot be empowered for

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