Chapter Objectives
          •     Compare and contrast the concept of service seamlessness to 
                departmentalization and functionalism.
          •     Describe how a service firm’s internal logics affects its service 
                culture.
          •     Understand the fundamental differences between the industrial 
                management approach and the market-focused management 
                approach.
          •     Describe observational and indirect questioning approaches for 
                assessing the organization’s current culture.
          •     Explain the basic components of a service audit.
          •     Discuss four fundamental strategies that facilitate cultural change.
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                  © 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 
                           Opening Vignette: Zappos
          •     Zappos is consistently ranked high on Fortune magazine’s list of “The 100 Best 
                Companies to Work For”
          •     Zappos embraces 10 core values known as “The 10 Commandments of Zappos” that 
                help shape the organization’s culture:
                  1.     “Deliver Wow through service”
                  2.     “Embrace and drive change”
                  3.     “Create fun and a little weirdness”
                  4.     “Be adventurous, creative, and open-minded”
                  5.     “Pursue growth and learning”
                  6.     “Build open and honest relationships with communication”
                  7.     “Build a positive team and family spirit”
                  8.     “Do more with less”
                  9.     “Be passionate and determined”
                  10. “Be humble”
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                  © 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 
                                                     Creating a Seamless 
                                                     Service Organization
          • Seamless service: services that occur 
                without interruption, confusion, or hassle to 
                the customer
                  –Ritz-Carlton’s Gold Standards clearly articulate 
                        the Ritz-Carlton’s dedication not only to its 
                        guests, but also to its own personnel
          • Before an organization can change its 
                culture, it must first understand its current 
                culture
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                  © 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 
                        Obstacles to World-Class Service: 
                Departmentalization and Functionalism
          • Traditional management models based on 
                the foundations of functionalism and 
                departmentalization kill seamlessness
                                             ®
                  © 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 
                 Overcoming the Silo Mentality: Understanding 
                                                              Internal Logics
          • Internal logic: implicit and explicit principles of individual 
                departments that drive organizational performance
                  – Operations logic: the reasoning that stresses cost 
                      containment/reduction through mass production
                  – Marketing logic: the reasoning that stresses providing customers 
                      with options that better enable the service offering to meet 
                      individual needs
                  – Human resources logic: the reasoning that stresses recruiting 
                      personnel and developing training to enhance the performance of 
                      existing personnel
                  – Service logic: promotes seamlessness by balancing the internal 
                      logics of marketing, operations, and human resources
                                             ®
                  © 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.