Preview

Productivity Measurement in Service Operations: A Case Study from the Healthcare Environment

Powerful Essays
Open Document
Open Document
3062 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Productivity Measurement in Service Operations: A Case Study from the Healthcare Environment
Celebrate and record Productivity measurement in service operations: a case study from the healthcare environment
Atul Gupta

The author Atul Gupta is a member of the Division of Professional Studies, The Richard Stockton College of New Jersey, Pomona, New Jersey, USA. Abstract Examines the issue of productivity measurement in service operations. Proposes a dynamic model for productivity measurement in service operations. This model is based on the idea that the intangible output for service operation is the quality of their services and the input is the level of skill of their employees. Both the skill level and the quality are measured on the same scale. Bases the measurement of service quality on the five dimensions suggested by Zeithaml and also bases the measurement of the skill level of employees on a six-dimensional instrument which is developed here.

The service sector is significant and is an important part of the US economy. Service accounts for approximately three-quarters of the gross national product and nine out of the ten jobs the economy creates[1]. It is also estimated that, by the end of the century, up to 90 per cent of the employees currently working in the manufacturing sector will be working in the service sector. Since service plays an important role in every organization, both service dominated and product dominated, service management takes on an immensely significant role in the 1990s. The service industry in this decade has seen a move away from quick-and-easy fast track solutions such as quality circles towards a more practical, comprehensive and management approach – service quality management. The health services sector is using service quality management extensively. Service quality management basically extends the standard of quality which people expect in clinical care into every aspect of a hospital’s services. Service quality management involves a pervasive, across the board integration of quality care, quality of services, and



References: 1 Zeithaml, V.A., Parasuraman, A. and Berry, L.L., Delivering Quality Service: Balancing Customer Perceptions and Expectations, The Free Press, New York, NY, 1990. 2 Ruch, W.A., “The measurement of white-collar productivity”, National Productivity Review, Autumn 1992, pp. 416-26. 3 Zeithaml, V.A., “Consumer perceptions of price, quality and value: a means-end model and synthesis of evidence”, Journal of Marketing, Vol. 52 No. 3, July 1988, pp. 2-22. 4 Babbar, S., “A dynamic model for continuous improvement in the management of service quality”, International Journal of Operations & Production Management, Vol. 12 No. 2, 1992, pp. 38-48. 5 Chase, R.B. and Tansik, D.A., “The customer contact model for organization design”, Management Science, Vol. 29 No. 9, 1983, pp. 1037-50. 6 Grönroos, C., “A service-oriented approach to marketing of services”, European Journal of Marketing, Vol. 12 No. 8, 1978, pp. 588-601. 7 Lewis, R.C. and Booms, B.H., “The marketing aspects of service quality”, in Berry, L., Shostack, G. and Upah, G. (Eds), Emerging Perspectives on Service Marketing, American Marketing, Chicago, IL, 1983, pp. 99-107. 8 Parasuraman, A., Zeithaml, V.A. and Berry, L.L., “A conceptual model of service quality and its implications for future research”, Journal of Marketing, Vol. 49, Fall 1985, pp. 41-50. 9 Parasuraman, A., Zeithaml, V.A. and Berry, L.L., “SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality”, Journal of Retailing, Vol. 64 No. 1, Spring 1988, pp. 12-40.

You May Also Find These Documents Helpful

  • Powerful Essays

    This study starts by explaining the concept of service quality and employee performance. The findings indicate some reasons for service quality decline among employees which is followed by explaining the strategies on how to develop employee performance which can yeild good results in business.…

    • 4188 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Operations

    • 1796 Words
    • 8 Pages

    Productivity is a basic measure of performance for economics, industries, firms and processes. Improving productivity is a major trend in operations management because all firms face pressures to improve their processes and supply chains so as to compete with their competitors.…

    • 1796 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    service quality opportunity", Managing Service Quality: An International Journal, Vol. 10 Iss 6 pp. 367-373…

    • 4692 Words
    • 19 Pages
    Powerful Essays
  • Better Essays

    With a limited number of employees, productivity is vital to the success of the business. With the growth of a new company, it is expected that productivity may start off slow. As employees and customers become comfortable, productivity is expected to increase. A learning curve is in place as well as a merit reward system for increased sales and services.…

    • 1227 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Using standard measurements in a service can be used to compare with other organizations in order to gain perspective on organizational performance. Performance management bring together many of the elements which go to make up the successful practice of people management, including learning and development. We’re used to thinking of ongoing performance management for employees, for example, setting goals, monitoring the employee’s achievement of those goals, sharing feedback with the employee, evaluating the employee’s performances, rewarding performance or firing the employee. Employees are happier if they know how they are doing, if they know they are doing a good job and it has been acknowledged, they will generally continue to do a good job as and strive to do more. If people don’t receive feedback and they aren’t doing a good job, employers expect them to be satisfied or productive.…

    • 1041 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Operational performance measurement remains an unsolved problem. Despite the relatively little attention it gets in the management literature, designing and using metrics to track and improve operating performance is one of the most persistent problems that organizations face. In my interactions with companies in virtually every industry, I scarcely ever encounter one that believes it has an effective set of metrics for their operations: manufacturing, customer service, marketing, procurement and the like. To be sure, companies do have measurements for these areas that they employ every day, but few managers or staff believe that these metrics are the right ones or that they help the company improve its performance and achieve its strategic goals. This is remarkable for two reasons: First, operational performance measurement is so fundamental…

    • 8252 Words
    • 34 Pages
    Powerful Essays
  • Powerful Essays

    Gumbus, A., B. Lyons & D.E. Bellhouse (2002). Journey to destination 2005: How Bridgeport Hospital is using the balanced scorecard to map its course. Strategic Finance 84(2), 46-50.…

    • 4559 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    OM300 exam study guide

    • 1655 Words
    • 7 Pages

    Operations Management- is the set of activities that create value in the form of g&s by transforming inputs into outputs- The business functions responsible for planning, coordination, and controlling the resources needed to produce a company’s products and services. Why Study it? OM is one of three major functions of any organization, we want to study how people organize themselves for productive enterprise. We want to know how goods and services are produced. We want to understand what operations managers do. OM is such a costly part of an organization. What OM People do. Planning Organizing Staffing Leading Controlling. Differences in Goods & Services Operations activities often very similar Distinction not always clear Few pure services Productivity- Productivity = Units Produced / Input Used(labor hours used). Measure of process improvement. Represents output relative to input. Only through productivity increases can our standard of living improve. Multi Factor Productivity = output / labor +material + energy + capital + miscellaneous. Also known as total factor productivity. Output and inputs are often expressed in dollars. Productivity Variables: Labor – 10% of annual increase. Capital – 38% of the annual increase. Management – 52% of the annual increase. Key Variables for improved labor productivity: Basic education appropriate for the labor force, Diet of the labor force, Social overhead that makes labor available. Challenge is in maintaining and enhancing skills in the midst of rapidly changing technology and knowledge. Management- ensures labor and capital are effectively used to increase productivity Productivity and the service sector- Typically labor intensive. Frequently focused on unique individual attributes or desires. Often an intellectual task performed by professionals. Often difficult to mechanize and automate. Often difficult to evaluate for quality. New Challenges in OM: Global focus, supply chain partnering, sustainability, rapid product…

    • 1655 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Job Related Pay

    • 1136 Words
    • 5 Pages

    In every companies, employers all hope their companies have high quality of productivity. There are various systems that can help companies to rise their productivity of workers. As well as companies have their own awards to workforce. No matter companies have distinct awards, the final goals for employers are that improving productivity, profit and service quality.…

    • 1136 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Planning and Measuring

    • 454 Words
    • 2 Pages

    It is important for managers to know which measures will give them the information needed regarding organizational performance. Productivity, effectiveness, and rankings are three common measures used to determine performance. These measures are used to figure out the accumulated results of all of a company’s work related activities. The goal of all organizations is to be productive. Productivity varies from business to business and the standards for measuring productivity also differ. Effectiveness considers organizational goals and how well those goals are being met. Rankings are used to show how companies compare to other companies in specific categories.…

    • 454 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    To investigate how productivity and profitability of organizations can be measured and what actions can be taken to increase above mentioned indicators.…

    • 173 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Researchers are of the view that measurements are the key for controlling any process because it is difficult to manage what cannot be measured [6]. Further researchers developing a metric for overall cycle time effectiveness for concerted productivity improvement efforts in the service sectors also holds a similar view as what gets measured gets done and improved. However, there is no standard approach to measure service performance as each industry is unique [7]. Due to the unavailability of acceptable quantitative metrics, most companies do this task subjectively. However, the disadvantages of subjective estimates are myriad as they are lengthy and require much work from respondents and investigators [8]. Further it has been reported that they are inaccurate, biased and sensitivity analysis is not easily performed on them [9]. To improve this situation, there is a need to define a good metric which will reduce subjectivity while estimating complexity of a project activity.…

    • 2886 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    The problem with productivity measurements – especially in measuring a company’s workforce efficiency, is that they do not take into account other factors relating to the way people work.…

    • 712 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The performance measures used to evaluate retail operations will depend on the level of the organization where the resources the manager controls and the decision the manager is making. There are many factors that to be considered before a retailer evaluates the overall performance of a store. Thus, it is very difficult to use one single measure to evaluate the performance of a store. For example, a store manager could easily increase sales and inventory turnover by lowering prices, but the gross profit margin would be affected as a result. Thus, managers must aware how their actions would affect multiple performance measures.…

    • 898 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Productivity is a term used to describe a state, quality or fact of being able to generate, create or improve goods and services. For example at the Chocolate Factory the Work Productivity was increased and 10% more chocolate bars were produced than last year. Or the Council’s Productivity increased after a restructure and they managed to provide more services to customers.…

    • 1615 Words
    • 7 Pages
    Better Essays