Hr Strategy
Abstract
Balancing the competing objectives of efficiency and service typically requires management compromises to be made. However, they achieve both efficiency and high levels of service at the same time. This is possible because part of the Sacrificial HR Strategy is the deliberate, frequent replacement of employees in order to provide enthusiastic, motivated customer service at low cost to the organization.
The paper describes a multiple-case analysis of four call centers and the Sacrificial HR Strategy they used. The contingencies leading to the appearance of this strategy are discussed.
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Introduction
The opposing goals of efficiency and excellent service are both central to call centers. High levels of service are important since the number of “completely satisfied” customers is one of the few predictors of long-term profitability (Jones & Sasser, 1995). Efficiency is important since call centers must provide speed of delivery and operate at a low unit cost to remain competitive. In a call center the tension between efficiency and service is more salient than in most service organizations.
To achieve efficiency, call center management has focused on the selection, implementation and use of technology (Mehrotra, 1997, and ensuring motivation and commitment. This is especially so when emotional labor is required (Gutek, 1995, Hochschild, 1983). As the employees are critical to service delivery, there is a requirement to have employment security, extensive training and decentralized decision making (Pfeffer, 1998).
However, in some call centers excellent service is delivered through the personal efforts of the front-line and not through managerial interventions. In these centers, the technology is still used to deliver and track productivity gains while the service is assured by the personal commitment of the employees. In this way both service and efficiency are achieved, but at the expense of the physical and psychological well-being of the staff.
3
Balancing the competing objectives of efficiency and service typically requires management compromises to be made. However, they achieve both efficiency and high levels of service at the same time. This is possible because part of the Sacrificial HR Strategy is the deliberate, frequent replacement of employees in order to provide enthusiastic, motivated customer service at low cost to the organization.
The paper describes a multiple-case analysis of four call centers and the Sacrificial HR Strategy they used. The contingencies leading to the appearance of this strategy are discussed.
2
Introduction
The opposing goals of efficiency and excellent service are both central to call centers. High levels of service are important since the number of “completely satisfied” customers is one of the few predictors of long-term profitability (Jones & Sasser, 1995). Efficiency is important since call centers must provide speed of delivery and operate at a low unit cost to remain competitive. In a call center the tension between efficiency and service is more salient than in most service organizations.
To achieve efficiency, call center management has focused on the selection, implementation and use of technology (Mehrotra, 1997, and ensuring motivation and commitment. This is especially so when emotional labor is required (Gutek, 1995, Hochschild, 1983). As the employees are critical to service delivery, there is a requirement to have employment security, extensive training and decentralized decision making (Pfeffer, 1998).
However, in some call centers excellent service is delivered through the personal efforts of the front-line and not through managerial interventions. In these centers, the technology is still used to deliver and track productivity gains while the service is assured by the personal commitment of the employees. In this way both service and efficiency are achieved, but at the expense of the physical and psychological well-being of the staff.
3
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