The case is based on the present situation at Yakkatech Pvt Ltd. Yakkatech is an Information Technology Services firm whose operations are spread throughout Australia and New Zealand. Yakkatech is facing issues in handling its human resources its customer service personnel and declining quality of service offered by its customer service centers. The aim of this report will analyze the situation at YakkaTech with reference to management literature and develop a solution which will reduce the employee attrition rate and improve customer service quality levels.
YakkaTech Pvt Ltd Background
YakkaTech Pty Ltd is an Information Technology services firm which consults companies on installing enterprise software systems and hardware. It undertakes contracts on implementing these systems on the clients’ site. It operates four customer service centers to service clients across these regions. YakkaTech is a company in its growth phase and its customer service has doubled over the last five years. However this rapid expansion at YakkaTech has brought with it issues. The first issue is one of the qualities of customer service offered by YakkaTech executives. There has been an increase in the number of complaints regarding poor quality of service by the executives. The complaints state that the response time to the client problems is slow and many of YakkaTech executives have to be educated on the details problems experiences because of their distinctive IT systems infrastructure. The system of resolving customer complaints works on a ticket system. The customer complaint or query is issued a ticket number and forwarded to the next available employee department which is best suited to resolve that issue. An employee is responsible for resolving that ticket and once the issue is resolved the ticket is closed. However when the client experiences the same issue or problem with the system again a new ticket is issued and the ticket is forwarded to whichever employee is available in the department. This results in the client s problems managed by different employees almost every time the customer service department is contacted by the client. The second issue is a high employee attrition rate which exceeds the industry average. The attrition rate at YakkaTech can be explained by the monotonous nature of the work, stress of serving dissatisfied customers and internal conflicts and politics. The management policy of changing the compensation system and raising pay rates to reduce employee turnover has worked in reducing the employee turnover rate but the service quality and productivity of the employees has declined even further.
The first issue of poor service quality offered by the YakkaTech customer service executives is because of a problem in the chain of responsibility. There is no proper division of labor at the customer contact centers. There is a fundamental issue of responsibility which means that executives do not get punished for the mistakes that they commit. The concept which underlies the problem faced at Yakkatech is one of an absence of horizontal accountability. Horizontal accountability is the accountability of team members to one another. According to Ray & Elder (2007) the absence of horizontal accountability in an organization leads to people or team members blaming each other for poor performance of the team as a whole, passing the buck, pointing fingers at each other and avoiding conflict situations. The degrees to which these symptoms exist in an organization point to the fact that horizontal accountability do not exist in an organization. Horizontal accountability is defined as the extent to which people communicate with each other throughout the organization, solve problems with all employees and teams and build a system of accountability which leads to superior outcomes. The employees at YakkaTech will be able to improve productivity when they can trust each other, be confident...