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

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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.

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