Human Relations 6

Two questions.

• Unit VI Study Guide
• Chapter 9: Resolving Conflicts with Others
• Chapter 14: Customer Satisfaction Skills

Unit VI Journal

Open

• Instructions

As a human resource manager, how would you deal constructively with complaints and anger from fellow employees, management, and customers within an organization? Are these methods effective to resolve the issues? Explain and discuss.

Your journal entry must be at least 200 words. No references or citations are necessary.

Unit VI Reflection Paper Open

Instructions

As discussed in the unit lesson, resolving conflict in the workplace requires using interpersonal skills, management skills, and techniques. Interpersonal skills can consist of understanding individual differences, self-esteem, self-confidence, communication, teamwork skills, problem-solving skills, cultural relations skills, motivation skills, customer service skills, ethical behavior skills, and stress management skills. Management skills focus on the type of management skill applied such as collaborating, accommodating, forcing, avoiding, and compromising. As a member of the workforce, you must be able to effectively resolve conflict, either with the use of interpersonal skills, management skills, or by applying the recommended ways of responding to tension in the workplace (e.g., overcoming defensiveness, accepting of the tension, and resolving the tension).

For your Unit VI Assignment, please reflect on your knowledge of resolving conflict that you have experienced or observed in the workplace. Please analyze what you have learned. Describe how your learned knowledge can be used. Also, identify how this information can be used to resolve conflict in the workplace in your current job or from a past incident you have experienced. What steps/methods were used in resolving the conflict?

Your reflection paper should be at least three pages in length, including an introduction, a body that supports your reflection, and a conclusion. Be sure to include a title page. The title page does not count toward the total page requirement.

Chapter 9 Resolving Conflicts with Others

Pixland/Jupiter Images/Getty Images

Learning Objectives

After reading and studying this chapter and completing the exercises, you should be able to

Specify why so much interpersonal conflict exists in organizations.

Recognize your typical method of resolving conflict.

Identify the five styles of handling conflict.

Acquire effective techniques for resolving conflict and negotiating.

Understand how to combat sexual harassment in the workplace.

Karen was one of five members of a group of workers who repaired and installed desktop and laptop computers for individuals and small businesses. Her company, Elite Computers, also installed new software and repaired virus damage. Karen enjoyed the technical challenges in her work, as well as the opportunity to work directly with a variety of clients and provide them with valuable assistance.

A major challenge facing Karen and her teammates was that some of the on site repair work had to be done on Saturdays and Sundays to accommodate clients who worked on weekends as well as weekdays. When their computers were down, some clients could not wait until Monday for an Elite technician to begin the repairs.

One of Karen’s teammates, Charlie, seemed to often have an excuse for not making a weekend client visit when it was his turn. Several times, Charlie sent Karen an urgent text message saying that he or a family member was sick and that he needed Karen to take the service call for him. Each time, Charlie ended his message with “Please help. I’ll return the favor later.”

One Friday at 8 a.m. Karen received a voice message from Charlie that said, “One of our biggest clients, Silver Motor Sales, has a system breakdown, and needs help this morning. It could be a virus attack. I have to take my brother to the emergency room. Please go to Silver Motors for me, ASAP.”

Karen thought, “This dependency of Charlie on me has gotten out of hand. I don’t know if he is lying. But if our team screws up with Silver Motors, we will all look bad. Maybe I should call Fred (the team leader). I think Charlie is taking advantage of me. I’ve got to work on my problem with him.”

The situation of computer repair technicians Karen and Charlie illustrates how so often it becomes imperative to resolve conflicts with a coworker to fix an intolerable problem. This chapter will help you improve your ability to resolve conflicts with people at work. The same techniques are also useful in personal life. To improve your understanding of how to resolve conflict, this chapter will present specific techniques and also explain why so much conflict exists. To get you started relating the topic of conflict to yourself, take

Self-Assessment Quiz 9-

1

.

Sources of Interpersonal Conflict in Organizations

Learning Objective 1

A conflict is a situation in which two or more goals, values, or events are incompatible or mutually exclusive. A conflict is also a strife, quarrel, or battle, such as would be the case if computer repair technician Karen told Charlie he was a lazy jerk, and he replied that she was callous and unfeeling about his problems.

conflict

A situation in which two or more goals, values, or events are incompatible or mutually exclusive.

Conflict between and among people has many sources or causes. In this section, six of the leading sources are described. A seventh category, workplace violence, is both a cause and a consequence of conflict. If you understand the cause of a conflict, it can help you resolve the conflict and help prevent a similar recurrence. For example, if you learn that much conflict on the job is caused by people being uncivil toward each other, you might remind yourself to behave civilly. You can also learn how to deal with uncivil coworkers so that they treat you less rudely. Although specific sources of conflict can be identified, keep in mind an important fact: All conflict includes the underlying theme of incompatibility between your goals, values, or events and those of another person.

Competition for Limited Resources

An underlying source of job conflict is that few people can get all the resources they want. These resources include money, material, and human resources. Conflicts arise when two or more people squabble over who should get the resources. Even in a prosperous organization, resources have to be divided in such a manner that not everybody gets what he or she wants.

Assume that you believe you need to have a document scanner immediately accessible for the full workday. Yet the company has decided that 10 people must share one scanner. As a result, you are likely to enter into conflict with the coworkers sharing the scanner. The conflict will be intense if several of your coworkers also think they need full-time access to a scanner.

Role Conflict

A major source of conflict (and stress) on the job relates to being placed in a predicament. Role conflict stems from having to choose between two competing demands or expectations. If you comply with one aspect of a role, compliance with the other is difficult or impossible. An important example would be receiving contradictory orders from two

role conflict

The situation that occurs when a person has to choose between two competing demands or expectations.

Learning Objective

2

Self-Assessment Quiz 9-1

 

Collaborative versus

Competitive Style

s of Conflict Management

Circle the number under the category that most closely matches your feelings (disagree strongly; disagree; neutral; agree; agree strongly) on each of the following statements:

5

4

3

2

1

1

2

3

4

5

5

4

3

2

1

5

4

3

2

1

1

2

3

4

5

5

4

3

2

1

5

4

3

2

1

1

2

3

4

5

1

2

3

4

5

Disagree Strongly

Disagree

Neutral

Agree

Agree Strongly

1. I like to see the other side squirm when I resolve a dispute.

5

4

3

2

1

2. Winning is everything when it comes to settling conflict.

3. After I have successfully negotiated a price, I like to see the seller smile.

4. I have a “smash-mouth” attitude toward resolving conflict.

5. In most conflict situations, one side is clearly right, and the other side is clearly wrong.

6. I think there are effective alternatives to strikes for settling union versus management disputes.

7. The winner should take all.

8. Conflict on the job is like a prize fight; the idea is to knock out the opponent.

9. I like the idea of tournaments in which first-round losers receive another opportunity to play.

10. Nice guys and gals usually finish first.

Scoring and

Interpretation:

Add the point value of your scores to obtain your total. Scores of 40 and higher suggest that you prefer a collaborative, or win–win, approach to resolving conflict. You tend to be concerned about finding long-term solutions to conflict that will provide benefits to both sides. Scores of 39 and lower suggest that you prefer a competitive approach to resolving conflict. You want to maximize gain for yourself, with little concern about the welfare of the other side.

people above you in your company. If you comply with the wishes of one person, you will antagonize the other. A higher-ranking manager might encourage as many employees as possible to work from home a few days per week. In contrast, your own manager demands that you be on the work premises full time.

Role conflict can take various forms. You might be asked to accomplish two objectives that are in apparent conflict. If your boss asks you to hurry up and finish your work but also decrease your mistakes, you would experience the conflict of incompatible demands (plus a headache, perhaps). Another problem is when two or more people give you incompatible directions. For example, your immediate supervisor may want you to complete a crash project on time, but company policy might temporarily prohibit authorizing overtime payments to clerical help or hiring office temporaries.

Role conflict also results when two different roles that you play are in conflict. Your company may expect you to travel 50 percent of the time, whereas your spouse threatens a divorce if you travel over 25 percent of the time. To complete the picture, person–role conflict takes place when the role(s) your organization expects you to occupy is in conflict with your basic values. Your company may ask you to fire the bottom 10 percent of performers, but this could be in conflict with your humanistic values. Another example of person–role conflict would be a person working for a retailer who knowingly sold counterfeit (knockoff) handbags when he or she believed that such a practice is immoral and illegal.

Competing Work and Family Demands

Balancing the demands of career and family life has become a major role conflict facing the workforce. Caring about work and family responsibilities is more likely to intensify work-family conflict. The challenge is particularly intense for employees who are part of a two-wage-earner family. Work–family conflict occurs when an individual’s roles of worker and active participant in social and family life compete with one another. This type of conflict is frequent because the multiple roles are often incompatible. Imagine having planned to attend your child’s solo recital and then being ordered at the last minute to be present at an after-hours meeting. Work–family conflict can lead to interpersonal conflict because your boss or coworkers might think that you are asking them to cover for you while you attend to personal matters.

work–family conflict

A state that occurs when an individual’s roles of worker and active participant in social and family life compete with each other.

Work-to-Family and Family-to-Work Conflict

Work–family conflict can be viewed from two perspectives, with both leading to conflict and stress. A person’s work can interfere with family responsibilities, or family responsibilities can interfere with work. In the above example, the person might say, “This is terrible. The meeting called for at the last minute will block me from attending my child’s solo recital.” Or, the same person might say, “This is terrible. My child’s solo recital is going to block me from attending an important last-minute meeting.”

An analysis of many scientific studies on the subject found that work demands can create some stress and low satisfaction at home, and personal demands can create some stress and low satisfaction on the job.[1] Have you ever noticed that problems at work or school can negatively influence personal life? Have you also noticed that problems in personal life can negatively influence work or school?

Another study investigated the effect of work–family conflict on the emotions of guilt and hostility among employed adults. The study also explored how work–family conflict, guilt, and hostility affected job satisfaction and marital satisfaction. It was found that work-to-family conflict and family-to-work conflict led to guilt and hostility at work and at home, respectively. A sidelight finding of interest to the study of human relations is that hostile people suffer even more conflict at home and on the job.[2]

The Issue of Work–Life Choices

A continuing debate exists over whether a person can have an equal balance between work and family life and still advance far in his or her career. If getting far in your field requires 60 hours per week of hard work, you might not be able to meet that demand and still be a full contributor to family life. Jack Welch, former GE chief executive and now business writer and educator, told participants at a human resources conference, “There are work–life choices, and you make them, and they have consequences.”[3]

Another issue related to work–life choices is that when managers perceive subordinates to be experiencing family–work conflict, there is a tendency for the bosses to think that the subordinate is not a good candidate for promotion. A study with supervisors in a large transportation company found that managers tended to categorize women as experiencing greater family–work conflict even when the women did not perceive themselves to have much family–work conflict. As a result, the managers downgraded their perception of the women supervisors’ fit for the job, as well as their promotability.[4] Even if the managers’ perceptions were biased, the supervisors still had to deal with these misperceptions.

Making a work–life (or work–family) choice can sometimes reduce conflict. It is helpful to develop a general guideline about how much time a person wants to invest in both work and family life, and then be satisfied with the compromise. Certain types of careers have to be excluded in order to spend most evenings and weekends in family and other personal activities. For example, to be a successful small business owner or a Wall Street financial analyst typically requires working between 60 and 70 hours per week. From the opposite standpoint, certain types of social activities have to be controlled to attain career success. An adult who wants to play video games and visit social networking sites for a combined nine hours per day will not succeed in most careers. After choices are made about type of work and type of personal life activities, work–family conflict will be minimized.

Company Initiatives to Reduce Work–Family Conflict

Companies can often avoid or minimize serious work–family conflict among employees by implementing equitable time-off policies. The underlying company attitude is that all employees need a work–life balance. Encouraging such an atmosphere of goodwill among coworkers can help prevent conflicts and resentments when one employee leaves early to take care of family responsibility.[5]

Many companies offer flexible working hours to a majority of their employees. In this way, a worker might be able to meet family demands that take place during typical working hours. An example is taking the morning off to care for an ill parent and working later that same evening to make up the time. People who are exceptionally good at organizing their time and efforts will often experience less work–family conflict, by such behaviors as staying on top of work to minimize periods of time when they are completely work-centered.[6]

In addition to a company providing formal programs to reduce work–family conflict, supervisory support is helpful in reducing such conflict. Supervisor support for work–family conflict includes such behaviors as expressing sympathy for the worker’s challenges and giving friendly advice. An analysis of a group of studies involving over 75,000 employees provided evidence that supportive supervisors and supportive organizations were effective methods of reducing work–family conflict.[7] A supportive organization would include the initiatives previously mentioned plus frequent statements by company executives indicating concern for family welfare.

Company initiatives, including supervisory and organizational support, can help reduce work–life conflict. At the same time, such policies contribute to the job satisfaction of workers making use of work–family initiatives or policies.[8] Support within the family is also quite important, such as an equitable division of household tasks between the working couple.[9] For example, parents should take turns leaving work to pick up a child who becomes ill at school or caring for a child who cannot attend school because of illness.

Personality Clashes and Drama

Many workplace disagreements arise because people simply dislike each other. A personality clash is thus an antagonistic relationship between two people based on differences in personal attributes, preferences, interests, values, and styles. A personality clash reflects negative chemistry between two people, whereas personal differences are based more specifically on a value clash. According to the research of psychologist Judith Sills, the most commonly reported office problem is the personality conflict. One of the most frequent conflicts is between the sweeping big-picture person and the cautious detail-oriented person.[10] The big-picture concern manager might say, “Give me a general idea of ticket sales for the Dixie Chicks,” expecting a response like, “Might even have a full house with luck.” Instead, the detail-oriented person says, “Last time I checked we had 37,431 tickets sold.”

personality clash

An antagonistic relationship between two people based on differences in personal attributes, preferences, interests, values, and styles.

People involved in a personality clash often have difficulty specifying why they dislike each other. The end result, however, is that they cannot maintain an amiable work relationship. A peculiarity about personality clashes is that people who get along well may begin to clash after working together for a number of years. A contributing factor is that as both people change and as the situation changes, the two people may no longer be compatible.

You are probably familiar with “drama” in personal life, such as the person who demands a “drama-free” relationship or says “I’m drama-free.” Drama takes the form of an obstacle to what you want to attain, and often functions like a personality clash because the dramatic person does not get along with you.[11] Instead, he or she might blame you for a problem or be so preoccupied with personal problems that working smoothly with you is extremely difficult. A coworker who introduces drama might say, “I know that we are supposed to investigate these missing funds together, but I am facing a personal emergency today. You cannot expect me to concentrate on my work with all the problems I am facing.”

Bullies in the Workplace

Coworkers naturally disagree about topics, issues, and ideas. Yet some people convert disagreement into an attack that puts down other people and damages their self-esteem. As a result, conflict surfaces. Bullies are people who verbally, and sometimes physically, attack others frequently. Among the typical behaviors of bullies are interrupting others, ranting in a loud voice, and making threats. Joe Grimm, a professor of journalism at Michigan State University, observes that bullying is considered part of daily workplace culture and often takes the form of browbeating, intimidation, cutting people off, and loudly expressing a personal opinion.[12]

A typical attitude of a bullying boss is “My way or the highway,” sending the message that the employee’s suggestions are unwelcome. Bullied workers complain of a range of psychological and physical ailments, such as anxiety, sleeplessness, panic attacks, and low self-esteem.

Research suggests that the most likely victims of supervisory bullying are those workers with less power, especially those working in personal service roles, such as housekeepers, nannies, and office assistants. [13]

Online interviews with 7,740 adults conducted by the Workplace Bullying Institute found that 60 percent of bullies are male, and 40 percent are female. An estimated 37 percent of American workers have been bullied on the job. Male bullies appear to choose men and women as targets in equal number. In contrast, women choose women as their targets 71 percent of the time. According to the Bullying Institute, bullying usually results in work interference and sabotage, therefore lowering productivity.[14]

What constitutes true bullying depends somewhat on a person’s perception, including cultural values. Jennifer Loh, a management professor at University of New England, Australia, and her colleagues compared Australian and Singapore employees in terms of the effects workplace bullies had on their victims. Singapore is a culture that highly respects power and authority, whereas Australians have a more egalitarian view of hierarchy. The researchers found that regardless of the two cultures, workplace bullying lowered job satisfaction, including feeling alienated from coworkers; however, the degree of distress was higher for Australians than Singaporeans. The implication is that in a culture in which managers are expected to exercise power and authority, workers will tolerate a little more bullying.[15]

Methods of dealing with bullies are described in the section in Chapter 12 about dealing with difficult people.

Incivility and Rudeness

A milder form of aggressiveness than bullying in the workplace is being rude or uncivil toward work associates. Incivility (or employees’ lack of regard for one another) has gained attention as a cause of workplace conflict. What constitutes being uncivil or rude depends upon a person’s perceptions and values.

incivility

In human relations, employees’ lack of regard for one another.

Imagine two people having a business lunch together. One of them answers his cell phone during lunch and, while still eating, engages the caller in conversation. To some people this everyday incident would be interpreted as double rudeness—interrupting lunch with a cell phone call and eating while talking. Another person might perceive the cell phone incident to be standard behavior in a multitasking world.

Rudeness also includes swearing at coworkers, a cubicle dweller shouting loudly on the phone while making a personal call, and performing other work at a meeting. Typical forms of “other work” are sorting through paper mail or surfing the Internet on a notebook computer.

A survey of workplace incivility was conducted with three different groups, including university employees, attorneys, and federal court employees. Overall, employees subjected to incivility tended to feel frustrated, annoyed, and a little bit offended. Also, when employees are subjected to coworkers or managers who yell and swear, make them the object of mean jokes, or intentionally exclude them from friendship-building activities, their morale and performance often suffers.[16] (Does this finding surprise you?) A similar study found that after being the victim of rudeness and hostility on the job, nearly two-thirds of employees said their performance declined.[17] Other negative outcomes from being treated uncivilly in the workplace include job stress, physical illness, and emotional exhaustion.[18]

Why might the rudeness of others bother us? A group of researchers at Duke University suggest that we become upset with rude behavior because the behavior violates unwritten laws of behavior referred to as social exchange rules. Mutually beneficial interactions are excluded when one person violates social exchange rules.[19] Two examples of these rule violations are eating part of a coworker’s lunch stored in the refrigerator and sleeping at a meeting (or during class).

To place rudeness and incivility in perspective, it may simply be part of modern life in which self-expression counts for everything and manners nothing. Rudeness in the workplace is therefore just a natural extension of rudeness occurring in everyday life.[20] Yet, a person who has good manners and behaves civilly can capitalize on these behaviors in his or her career.

Cross-Generational Conflict

As explained in Chapter 2, differences in values across generations lead to differences in behavior. And these value-based differences in behavior can lead to conflict, such as disputes about Gen Y workers wanting members of Gen X and Baby Boomers to be continuously logged on to instant messaging (IM) and often to send text messages instead of talking on the phone. The following list presents three examples of potential work-related conflict across generations. The illustrations presented are stereotypes that apply to a typical member of each generation.

Preferred approach to communication: Some Gen Y members prefer abbreviated conversation rather than fully explaining what they mean. Baby Boomers prefer e-mail, cell phones, and face-to-face communication. Some Generation Y members express their discontent with something at work by sending a tweet, whereas most Baby Boomer and Generation X members would deal with the matter internally.

Approach to problem solving: Gen X members prefer to form a team to brainstorm a solution, as well as to use the Internet and social networking for research. Gen Y members prefer to think up a list of solutions on their own, then call a meeting to discuss the alternative solutions. Baby boomers like to think about what has worked in the past and how it can be replicated. Then they call a meeting to discuss possible alternatives. Traditionalists (born 1922–1945) tend to be thorough and detail oriented. Gen Y (Millenials) will often multitask while solving a problem. Often they want to move quickly to another problem because of a short attention span, whereas Traditionalists and Baby Boomers may want to drag out a problem.

Requirement for being respected: Gen X members want to have their ideas valued by coworkers. Gen Y members want to have their professionalism and growing knowledge valued. Baby boomers want to have their decades of work experience and input still valued.[21] Many Generation Y members want continual praise, and are hurt by criticism. Many Baby Boomers and Generation X members see no problem with deserved criticism and use praise only when deserved.[22]

Although cross-generational conflict is mild in nature, it can still lead to miscommunication and hard feelings that disrupt work.

Workplace Violence (A Cause and Effect of Conflict)

Aggressiveness in the workplace can take extreme forms, such as the shooting or knifing of a former boss or colleague by a mentally unstable worker recently dismissed from the company. Workplace violence is a cause of conflict in the sense that being the subject of violence, witnessing violence, or worrying about violence creates two opposing needs—the worker wants a peaceful environment, yet is forced to experience chaos. Conflict is also created by any physical altercation between the perpetrator and the victim. Workplace violence is an effect of conflict because as an extreme response to conflict, such as being fired, some workers strike back at their employer through physical aggression directed at the former boss and coworkers.

Violence has become so widespread that homicide is the fourth leading cause of workplace deaths, with about 500 workers murdered each year in the United States. According to the Bureau of Labor Statistics Census of Fatal Occupations, homicides account for about 10 percent of all fatal workplace injuries.[23] Homicide is the leading cause of death for women in the workplace. Most workplace deaths result from a robbery or commercial crime. Many of these killings, however, are perpetrated by a disgruntled worker or fired employee harboring an unresolved conflict. As companies have continued to reduce their workforce despite being profitable, these incidents have increased in frequency.

Workplace violence is often predictable, with the worker who may erupt into violence showing early signals, according to Lynne McClure, a specialist in managing high-risk employees.[24] Predictors of workplace violence include the following employee behaviors and verbal expressions: talk about weaponry, paranoid (highly suspicious) or antisocial behavior, reference to not being heard by management, expression of extreme desperation, history of violence, and being a loner who does not fit into the group. Multiple behaviors such as those just described might be reported to the manager or human resource professional. Yet you need to be careful about not referring a coworker who displays just one predictor of violent behavior.

Task versus Relationship Conflict

In addition to the sources of conflict, another way to understand conflict is whether it is aimed at work or personal issues. A subtle point here is that you can be involved in interpersonal conflict over both the task and the relationship. Some conflicts on the job deal mostly with disagreements over how work should be done. Task conflict focuses on substantive, issue-related differences related to the work itself.[25] These issues are tangible and concrete and can be dealt with more intellectually than emotionally. Two group members, for example, might argue over whether it is better to use their limited advertising budget to buy space on the outside of a bus or on Facebook.

Other conditions within the group are more people oriented. They occur because people have personality clashes, are rude to each other, or simply view problems and situations from a different frame of reference. Relationship conflict focuses on personalized, individually oriented issues. The conflict relates to subjective issues that are dealt with more emotionally than intellectually.[26] One symptom indicating that relationship conflict exists with the group is when during a meeting, two people say to each other frequently, “Let me finish speaking.”

An analysis of many studies cautions that task conflict and relationship conflict can be equally disruptive. A little conflict may be beneficial, but this advantage quickly breaks down as conflict intensifies.[27] An example of an advantage of conflict is the stimulation of problem solving and creativity; a disadvantage is negative stress. The underlying explanation for the problems associated with all conflict is that people take differences of opinion personally, whether the issue is strictly the task or their personal characteristics.

Conflict-Management Styles

Learning Objective 3

The information presented so far is designed to help you understand the nature of conflict. Such background information is useful for resolving conflict because it helps you understand what is happening in a conflict situation. The next two sections offer more specific information about managing and resolving conflict. Before describing specific methods of resolving conflict, it is useful to present more details about five general styles, or modes, of handling conflict. You received preliminary information on two of these five styles when you completed Self-Assessment Quiz 9-1.

As shown in Figure 9-1, Kenneth Thomas identified five major styles of conflict management, with this categorizing of styles still in active use. Each style is based on a combination of satisfying one’s own concerns (assertiveness) and satisfying the concerns of others (cooperativeness).[28]

Competitive Style

The competitive style is a desire to win one’s own concerns at the expense of the other party, or to dominate. A person with a competitive orientation is likely to engage in power struggles in which one side wins and the other loses (an approach referred to as win–lose). “My way or the highway” is a win–lose strategy. Workplace bullies prefer the competitive style of conflict management. The competitive style works best when quick, decisive action is essential, such as in an emergency.

Figure 9-1 Conflict-Handling Styles According to Degree of Cooperation and Assertiveness

Accommodative Style

The accommodative style favors appeasement, or satisfying the other’s concerns without taking care of one’s own. People with this orientation may be generous or self-sacrificing just to maintain a relationship. An irate customer might be accommodated with a full refund, just to calm down the person. The intent of such accommodation might also be to retain the customer’s loyalty. Accommodation sounds harmless, but can result in granting such large conscessions that they are later regretted.

Accommodation works best when you are wrong, or when the issues are more important to the other side. For example, a small business owner might take back damaged merchandise rather than going through the struggle of facing a lawsuit.

Sharing Style

The sharing style is halfway between domination and appeasement. Sharers prefer moderate but incomplete satisfaction for both parties, which results in a compromise. The phrase “splitting the difference” reflects this orientation and is commonly used in such activities as purchasing a house or car. The sharing (or compromising) style is well suited to a situation in which both sides have equal power, yet are committed to mutually exclusive goals such as the buyer and the seller of the house wanting to maximize financial gain.

Ryan McVay/Getty Images

Collaborative Style (Win–Win)

In contrast to the other styles, the collaborative style reflects a wish to fully satisfy the desires of both parties. It is based on an underlying philosophy of win–win, the belief that after a conflict has been resolved, both sides should gain something of value. The use of a win–win approach is aimed at arriving at a settlement that meets the needs of both parties, or at least does not badly damage the welfare of either side. The option chosen results in a mutual gain. When collaborative approaches to resolving conflict are used, the relationships among the parties are built on and improved.

win–win

The belief that after conflict has been resolved, both sides should gain something of value.

Mobile phone companies in search of antenna sites have led to win–win conflict resolution between companies and communities. Many of these companies have integrated antennas into church steeples, high-rise buildings, and other tall structures without defacing them. A mobile telephone company has sometimes constructed a new church steeple that harbors a giant antenna. The company wins by having an antenna to provide cell phone service, and community groups do not object to the sight of a freestanding antenna. At the same time, the church wins by having a new steeple.

Skill-Building Exercise 9-1

 

Win–Win Conflict Resolution

The class organizes into small problem-solving groups. Each group spends about 10 minutes finding a win–win solution to one of the following conflict situations.

Two coworkers want you to work with them after hours in establishing an online marketing firm. You do not want to take time away from your primary career to get involved in a side business. You, however, want to maintain cordial relations with these two coworkers.

William, an accountant, wants workmates to call him “William.” Yet, several people in the office persist in calling him “Bill” or “Will.”

You are offered a transfer within your company to an exciting job that you want strongly. Your manager says he cannot let you go because you are too valuable.

A group of workers at a small business would like a giant-screen, high-definition television set placed in the employee lounge to enhance their enjoyment of breaks. The business owner wants to keep employees satisfied, but concludes that investing about $4,000 in a television set for the lounge is too big an investment.

After the groups have found their solutions for mutual gains, specify carefully what gain each side attained. Share your solutions with other class members to obtain their feedback about the effectiveness of the mutual gains.

Collaborating is particularly important when both sides must be committed to the solution, such as the situation with the hidden cell antennae. Divorcing parents also need collaboration in their division of assets, because they need to work together long term for the good of the children.

Finding win–win solutions to problems (or options for mutual gain) is one of the most important conflict-resolution skills. To obtain practice in this skill, complete Skill-Building Exercise 9-1.

Avoidant Style

The avoider is a combination of a person who is uncooperative and unassertive. He or she is indifferent to the concerns of either party. The person may actually be withdrawing from the conflict to rely upon fate. Avoiding works well when an issue is trivial, or there are more pressing issues to worry about. For example, a supervisor might not bother reprimanding workers who are a few minutes late, because the supervisor is flooded with other work.

In the following description of specific techniques for resolving conflict, attempt to relate most of them to these five key styles. For example, you will observe that the confrontation and problem-solving technique reflects the collaborative (win–win) style.Guidelines and Techniques for Resolving Conflicts

Learning Objective 4

Interpersonal conflict in organizations is inevitable. A career-minded person must therefore learn effective ways of resolving conflict. This section describes methods of conflict resolution that you can use on your own. All are based somewhat on the underlying win–win model, or integrating the interests of both parties. Integrating both interests focuses on resolving the underlying concerns of the parties in conflict. By dealing with these concerns, it is more worthwhile for both sides to resolve the conflict than it is to have no agreement.

Suppose a woman named Molly Coors wanted to open a beer brewery and name her beer Coors. The company lawyers from Coors-Molson, which own the rights to the brand name Coors, would attempt to block her from using the same brand name—even if her family name is Coors. Molly Coors would hire her own lawyer to fight back. Two key concerns must be addressed. Molly Coors’ underlying concern is that she feels her civil liberties have been violated because she cannot name a business after herself. And Molly must deal with Coors-Molson’s concern about a smaller company capitalizing on its well-known name (brand equity).

Later in the chapter, you will be asked to resolve such difficult conflict. The following paragraphs describe four methods of conflict resolution.

Confrontation and Problem Solving

The ideal approach to resolving any conflict is to confront the real issue and then solve the problem. Confrontation means taking a problem-solving approach to differences and identifying the underlying facts, logic, or emotions that account for them. When conflicts are resolved through confronting and understanding their causes, people feel responsible for finding the soundest answer.

Confrontation can proceed gently, in a way that preserves a good working relationship, as shown by this example. Assume that Mary, the person working at the desk next to you, loudly cracks chewing gum while she works. You find the gum chewing both distracting and nauseating. If you don’t bring the problem to Mary’s attention, it will probably grow in proportion with time. Yet you are hesitant to enter into an argument about something that a person might regard as a civil liberty (the right to chew gum in public places).

A psychologically sound alternative is for you to approach her directly in this manner:

You:

Mary, there is something bothering me that I would like to discuss with you.

She:

Go ahead, I don’t mind listening to other people’s problems.

You:

My problem concerns something you are doing that makes it difficult for me to concentrate on my work. When you chew gum, you make loud cracking noises that grate on my nerves. It may be my problem, but the noise does bother me.

She:

I guess I could stop chewing gum when you’re working next to me. It’s probably just a nervous habit.

When resolving conflict through confrontation and problem solving, as well as other methods of conflict resolution, it is helpful to bring closure by shaking hands, repeating your individual commitments, and then saying “thank you.” Following through on your commitments is also essential for effective conflict resolution.[29]

A notable point about the process of confrontation and problem solving is that an in-person meeting is preferable to using e-mail, texting, social media, or even a telephone call for the confrontation. As career counselor Deb Koen explains, in an emotionally charged situation e-mails do not work well for expressing feelings. An e-mail or social media message leaves too much room for interpretation and hides most of the nonverbal communication essential for communicating feelings.[30]

Constructive Handling of Criticism

Learning to profit from criticism is an effective way of benefiting from conflict. People who benefit from criticism are able to stand outside themselves while being criticized. It is as if they are watching the criticism from a distance and looking for its possible merits. People who take criticism personally anguish when receiving negative feedback. The following are six specific suggestions for dealing with criticism, including two methods that will often get the other party on your side.[31]

See yourself at a distance. Place an imaginary Plexiglas shield between you and the person giving the criticism. Attempt to be a detached observer looking for useful information.

Ask for clarification and specifics. Ask politely for more details about the negative behavior in question so that you can change if change is warranted. If your boss is criticizing you for being rude to customers, you might respond: “I certainly do not want to be rude. Can you give me a couple of examples of how I was rude? I need your help in working on this problem.” After asking questions, you can better determine whether the criticism is valid.

Decide on a response. An important part of learning from criticism is to respond appropriately to the critic. Let the criticizer know what you agree with. Apologize for the undesirable behavior, such as saying, “I apologize for being rude to customers. I know what I can do differently now. I’ll be more patient so as not to appear rude.” Apology is a highly effective method of getting the criticizer on your side. Without an apology, the attack is likely to continue.

Look for a pattern in terms of other criticism. Is the criticism you are receiving something you have heard several times before from different people? The more times you have heard the same criticism, the more likely it is to be valid. If three different supervisors have told you that you do not follow through with your promises to get work done, the criticism is most likely valid.

Disarm the opposition. An extension of point 3 is that you will often decide to agree with the criticizer because the person has a legitimate complaint about you. If you deny the reality of that person’s complaint, he or she will continue to harp on that point, and the issue will remain unresolved. By agreeing with the criticism, you may set the stage for a true resolution of the problem.
Agreeing with criticism made by a person with formal authority over you is effective because by doing so you are then in a position to ask for his or her help in improving the situation. Rational managers realize that it is their responsibility to help group members overcome problems, not merely to criticize them. Imagine that you have been chronically late with reports during the last six months. It is time for a performance evaluation, and you know that you will be reprimanded for your tardiness. You also hope that your manager will not downgrade all other aspects of your performance because of your tardy reports. Here is how disarming the opposition would work in this situation:
Your manager:

Have a seat. It’s time for your performance evaluation, and we have a lot to talk about. I’m concerned about some things.
You:

So am I. It appears that I’m having a difficult time getting my reports in on time. I wonder if I’m being a perfectionist. Do you have any suggestions?
Your manager:

Well, I like your attitude. Maybe you are trying to make your reports too perfect before you turn them in. I think you can improve in getting your reports in on time. Try not to figure out everything to three decimal places. We need thoroughness around here, but we can’t overdo it.
Disarming is effective because it takes the wind out of the other person’s sails and has a calming effect. The other person is often waiting to clobber you if you deny guilt. If you admit guilt, you are more difficult to clobber. Skill-Building Exercise 9-2 gives you an opportunity to practice disarming the opposition.

Offer an apology if warranted. Related to disarming the opposition is the general- purpose technique of apologizing for something you have done wrong. An apology often helps keep the criticism from escalating. For example, if a worker apologizes for publicly insulting the company on Facebook, the CEO might simply say, “Apology accepted. Just don’t do it again.” An effective apology includes an acknowledgement of the wrongdoing, regret, responsibility for what happened,
Skill-Building Exercise 9-2

 

Disarming the Opposition
In each of these two scenarios, one person plays the role of the person with more power in the situation. The other person plays the role of the individual attempting to disarm the criticizer.

1 A representative from a credit agency telephones you at work to inform you that you are 60 days behind schedule on your car payment. The agent wants a settlement as soon as possible. Unfortunately, the credit agent is correct. Run this happy scenario for about five minutes.

2 Your manager calls you into the office to discuss the 10-page report you just submitted. The boss says in a harsh tone, “Your report is a piece of trash. I counted 25 word-use mistakes such as writing whether for weather and seen for scene. (Your spell checker couldn’t catch these errors.) Besides that, I can’t follow many of your sentences, and you left out the table of statistics. I’m wondering if you are qualified for this job.”

Observers of the role-play will judge how effective the person being criticized was in reducing some of the anger directed against him or her. Look also for any changes in attitude on the part of the criticizer.
and a plan to remedy the problem.[32] The person who posted the offensive comment on Facebook might therefore say. “I did something stupid, and I regret having insulted our fine company. It was entirely my fault. Tonight I will work on getting this post removed.”

Reframing

Another useful approach to resolving conflict is to reexamine or reframe the conflict situation by looking at it in a different light. The following are two practical approaches to reframing, one by searching for the positives in the situation, and the other by asking questions.

Reframing through Cognitive Restructuring

An indirect way of resolving interpersonal conflict is to lessen the conflicting elements in a situation by viewing them more positively. According to the technique of cognitive restructuring, you mentally convert negative aspects into positive ones by looking for the positive elements in a situation. How you frame or choose your thoughts can determine the outcome of a conflict situation. Your thoughts influence your actions. If you search for the beneficial elements in the situation, there will be less area for dispute. Although this technique might sound like a mind game to you, it can work effectively.

cognitive restructuring

Mentally converting negative aspects into positive ones by looking for the positive elements in a situation.

Imagine that a coworker of yours, Jeff, has been asking you repeated questions about how to carry out a work procedure. You are about ready to tell Jeff, “Go bother somebody else; I’m not paid to be a trainer.” Instead, you look for the positive elements in the situation. You say to yourself, “Jeff has been asking me a lot of questions. This does take time, but answering these questions is valuable experience. If I want to become a manager, I will have to help group members with problems.”

After having completed this cognitive restructuring, you can then deal with the conflict situation more positively. You might say to Jeff, “I welcome the opportunity to help you, but we need to find a mutually convenient time. In that way, I can better concentrate on my own work.” To get started with cognitive restructuring, do

Skill-Building Exercise 9-3

.

Reframing by Asking

Questions

Another way to use reframing is to step back, take a deep breath, and then ask the following questions about the conflict situation that arises within the work group:

Do I fully understand the situation?

Am I sure what my coworker is really saying?

Is the person really angry with me or just worried and anxious?

Have I missed something important?

Do I have all the facts?

What is the real issue here?

How do I want to react in this situation?

How would I want to be treated if the situation were reversed?

Skill-Building Exercise 9-3
 

Reframing through Cognitive Restructuring

The following are examples of negative statements about others in the workplace. In the space provided, cognitively restructure (reframe) each comment in a positive way.

Negative:

Nancy is getting on my nerves. It takes her two weeks longer than anyone else in the team to complete her input.

Positive:

Negative:

Rob is so obsessed with sports that he is hurting my productivity. Where does it say in the employee handbook that I have to spend 30 minutes on Monday listening to Rob’s comments on his team’s weekend performance? Doesn’t he know that I have a job to do and that I just don’t care about his team?

Positive:

Negative:

My boss is driving me crazy. He is forever telling me what I did wrong and making suggestions for improvement. He makes me feel like I’m in elementary school.

Positive:

By taking such a approach, you are more likely to communicate more effectively and constructively with each of your coworkers when conflict situations arise. You carefully talk through the issues rather than becoming explosive, defensive, and argumentative. A useful scenario for reframing through questioning is when a coworker accuses you of not carrying your fair share of the workload.[33]

Negotiating and Bargaining

Conflicts can be considered situations calling for negotiating, or conferring with another person to resolve a problem. When you are negotiating a fair salary for yourself, you are trying to resolve a conflict. At first the demands of the two parties may seem incompatible, but through negotiation, a salary figure may emerge that satisfies both. The Program on Negotiation at the Harvard Law School emphasizes a useful and human perspective about negotiation. The focus of negotiation should be on building a cooperative relationship and creating value. You might want to claim as much of that value you can for yourself, but the goal is not to squash the other side.[34]

negotiating

Conferring with another person to resolve a problem.

Another perspective on negotiation is that people are not just negotiating for the economic value of the negotiation. They are also negotiating for intangibles, such as feeling good about the negotiation process, the other party, and themselves.[35] For example, after the negotiation is complete, the individual might want to be perceived as an honest, sincere professional, rather than as a dishonest person out to maximize gain.

Managers and staff specialists must negotiate both internally (e.g., with subordinates, managers, and team leaders) and externally (e.g., with customers, suppliers, and government agencies). Considerable negotiation also takes place among coworkers. Team members, for example, sometimes negotiate among themselves about work assignments. One might say to the other, “I’m willing to be notetaker this year if there is some way I can cut back on the amount of plant visits I make this year.” Eight useful negotiating tactics are presented here. Before studying them, take

Self-Assessment Quiz 9-2

.

Understand the Other Party’s Perspective

As in being a good listener, empathy can be an important part of negotiation. Deepak Malhotra and Max H. Bazerman observe that negotiators often channel too much effort into pushing their own position and too little into understanding the other side’s perspective.[36] To obtain a good deal, or sometimes any deal at all, negotiators have to dig for information about why the other side wants what it demands. Inaccurate assumptions about the other side’s motives can lead negotiators to propose solutions to the wrong problems, waste money, or kill a deal. How about a personal life example for dog lovers?

You have wanted a Great Dane puppy for a long time. You enter into negotiations with the owner of the puppy and his mother. The owner is asking $900, and is adamant about her demands. If you are low on empathy, you will raise such negotiating points as how much the little Great Dane is costing the owner in food, that you will pay cash, and that the little fellow is ugly and therefore is only worth $500. (You might get invited off the premises in a hurry.) In contrast, with high empathy and a detective-like mind, you recognize that the owner wants the puppy to go to a wonderful home. So, if she asks for a lot of money, the potential owner is likely to be really interested in finding someone who truly wants the dog and would therefore probably take good care of the puppy.

With this negotiating point in mind, you point out what great care you will give the Great Dane, what a spacious yard you have, how you would take him jogging every day, and how he would be your dream dog. The owner is happy, because one of her key motives is for the pup to have a wonderful home. She is touched and agrees to your offer of $600.

Another key part of understanding the other party’s perspective is that you look for common ground. Your talk of care and concern about the dog’s health indicates that both you and the owner share a humanitarian attitude toward dogs.

To understand the other party’s perspective, you often have to prepare in advance. Obtain as much information as you can about the other party’s side before the negotiation

Self-Assessment Quiz 9-2
 

The Negotiator Quiz

Directions:

The following quiz is designed to give you tentative insight into your tendencies toward being an effective negotiator. Check whether each statement is mostly true or mostly false as it applies to you.

Mostly true

Mostly false

1. Settling differences of opinion is a lot of fun.

2. I try to avoid conflict and confrontation with others as much as possible.

3. I am self-conscious about asking people for favors they have not offered me spontaneously.

4. I am generally unwilling to compromise.

5. How the other side feels about the results of our negotiation is of little consequence to me.

6. I think very well under pressure.

7. People say that I am tactful and diplomatic.

8. I have heard that I express my viewpoint clearly.

9. Very few things in life are not negotiable.

10. I always (or would always) accept whatever salary increase is offered to me.

11. A person’s facial expression often reveals as much as what the person actually says.

12. I wouldn’t mind taking a few short-term losses to win a long- term battle.

13. I’m willing to work long and hard to win a small advantage.

14. I’m usually too busy talking to do much listening.

15. It’s fun to haggle over price when buying a car.

16. I almost always prepare in advance for a negotiating session.

17. When there is something I need from another person, I usually get it.

18. It would make me feel cheap if I offered somebody only two- thirds of his or her asking price.

19. People are usually paid what they are worth, so there’s no use haggling over starting salaries.

20. I rarely take what people say at face value.

21. It’s easy for me to smile when involved in a serious discussion.

22. For one side to win in negotiation, the other side has to lose.

23. Once you start making concessions, the other side is bound to get more than you.

24. A good negotiating session gets my competitive urges flowing.

25. When negotiations are completed, both sides should walk away with something valuable.

Total Score

Scoring and Interpretation:

Score yourself 1 for each of your answers that agrees with the scoring key. The higher your score, the more likely it is that you currently have good negotiating skills, providing your self-assessment is accurate. It might prove useful to also have somebody who has observed you negotiate on several occasions to answer the Negotiator Quiz for you. Scores of 7 or lower and 20 or higher are probably the most indicative of weak or strong negotiating potential. Here is the scoring key:

Mostly true

Mostly false

Mostly false

Mostly false
Mostly false
Mostly true
Mostly true
Mostly true
Mostly true
Mostly false
Mostly true
Mostly true
Mostly true
Mostly false
Mostly true
Mostly true
Mostly true
Mostly false
Mostly false
Mostly true
Mostly true
Mostly false
Mostly false
Mostly true
Mostly true

session. A basic example is that many prospective car buyers first research the fair value of a vehicle before making an offer. Knowing how long the vehicle has been sitting on the lot or in the showroom is also useful advance information, because dealers often borrow money to build inventory.

Focus on Interests, Not Positions

Rather than clinging to specific negotiating points, keep your overall interests in mind and try to satisfy them. Remember that the true object of negotiation is to satisfy the underlying interests on both sides, as in the case of Molly Coors. Part of focusing on interests is to carefully study the other side’s comments for clues to the type of agreement that will satisfy both of you.

Careful listening will help you uncover the negotiating partner’s specific interests and motivations. (This is another application of understanding the other party’s perspective.) Here is how this strategy works:

You are considering accepting a job offer that will enable you to work on the type of problems you prefer and to develop your professional skills. You have a starting salary in mind that would make you very happy: 10 percent higher than you are currently making. Your negotiating position is thus your present salary plus 10 percent; however, your true interests are probably to have more discretionary income than at present. (You want to make more purchases and invest more.) You will therefore be better off negotiating for a work situation that spreads your money further. You can now accept the offer by negotiating other points in addition to a 10 percent higher salary, including (1) working in a geographic area with a lower cost of living, (2) having a better opportunity for earning a bonus, or (3) receiving a generous expense account. During the negotiations, you may discover that the other party is looking for a talented employee at a salary and with benefits the company can afford.

Compromise

The most widely used negotiating tactic is compromise, settlement of differences by mutual concessions. One party agrees to do something if the other party agrees to do something else. Compromise is a realistic approach to resolving conflict. Most labor–management disputes are settled by compromise. For instance, labor may agree to accept a smaller salary increase if management will subcontract less work to other countries.

compromise

Settlement of differences by mutual concessions.

Some people argue that compromise is not a win–win tactic. The problem is that the two parties may wind up with a solution that pacifies both but does not solve the problem. One example would be purchasing for two team leaders half the new equipment each one needs. As a result, neither department really shows a productivity gain. Nevertheless, compromise is both inevitable and useful.

Begin with a Plausible Demand or Offer, Yet Allow Room for Negotiation

The commonsense approach to negotiation suggests that you begin with an extreme, almost fanciful demand or offer. The final compromise will therefore be closer to your true demand or offer than if you opened the negotiations more realistically; however, a plausible demand is useful because it shows you are bargaining in good faith. Also, if a third party has to resolve a conflict, a plausible demand or offer will receive more sympathy than an implausible one will. An example would be an arbitrator giving only a minimum settlement to an investor who wanted $10 million in damages for having received bad advice from an investment broker. (The arbitrator thinks that a $10 million settlement would be ridiculous.)

Although it is advisable to begin with a plausible demand, one must still allow room for negotiation. A basic strategy of negotiation is to begin with a demand that allows room for compromise and concession. If you think you need $5,000 in new furniture for your department, you might begin negotiations by asking for a $7,000 layout. Your boss offers you $4,000 as a starting point. After negotiation, you may wind up with the $5,000 you need.

Make Small Concessions Gradually

Making steady concessions leads to more mutually satisfactory agreements in most situations. Gradually, you concede little things to the other side. The hard-line approach to bargaining is to make your concession early in the negotiation, and then grant no further concession. The tactic of making small concessions is well suited to purchasing a new car. In order to reach a price you consider acceptable, you might grant concessions such as agreeing to finance the car through the dealer or purchasing a service contract.

Know Your Best Alternative to a Negotiated Agreement

The reason you would probably negotiate would be to produce something better than the result obtainable without negotiating. The goal of negotiating is thus not just to agree, but to obtain more valuable results than would otherwise have occurred. When you are aware of your best alternative to a negotiated agreement (BATNA), it sets a floor to the agreement you are willing to accept. Your BATNA becomes the standard that can protect both parties from accepting terms that are too unfavorable. It also keeps you from walking away from terms that would be beneficial for you to accept.

What might a BATNA look like in practice? Suppose you are negotiating a starting salary for a full-time, professional position. The figure you have in mind is $42,000 per year. Your BATNA is $36,500, because this is the salary your future in-laws will pay you to enter the family business. You will therefore walk away from any offer of less than $37,000—just taking salary into account.

Knowing the other side’s BATNA is also important because it helps define the other participant’s bargaining zone. Understanding each other’s bargaining zones makes it possible to arrive at mutually profitable trade-offs. In the preceding salary negotiations, the company’s BATNA might be to hire a less well-educated job candidate at $30,500 and then upgrade his or her knowledge on the job.

An underlying advantage of knowing your BATNA is that it capitalizes on the power of a positive “no.” Famous negotiator William Ury reasons that being able to say “no” to a demand places you in a strong position.[37] During negotiations, a statement such as “I am not willing to make that big a concession” can bring you respect, because you are standing up for your principles. For best effect, “no” should be expressed in a friendly and firm manner.

Use Anger to Your Advantage

Master negotiators make selective use of anger as a negotiating and bargaining tool. When a person becomes genuinely angry, the anger can energize him or her to be more resourceful and creative while bargaining. If you are angry about an issue or a negotiating point, the other side may be willing to submit to your demand rather than receive more of your anger. The director of a company wellness program might say with an angry look toward top management, “Why is there money in the budget for all kinds of frills like corporate jets, when a program that is preventing millions of dollars in lost productivity has to grovel for a decent budget?”

The downside of anger is that it can degenerate into incivility and personal insults. A touch of anger can be effective, but overdone, it becomes self-defeating. You have to size up how far you can push people before damaging a work relationship—or being fired. To make effective use of anger during negotiation, it has to be used at the right time, with the right tone, and in the right amount.[38] A person who is always angry will often not be taken seriously.

Allow for Face-Saving

We have saved one of the most important negotiating and conflict resolution strategies for last. Negotiating does not mean that you should try to squash the other side. You should try to create circumstances that will enable you to continue working with that person if it is necessary. People prefer to avoid looking weak, foolish, or incompetent during negotiation or when the process is completed. If you do not give your opponent an opportunity to save face, you will probably create a long-term enemy.

Face-saving could work in this way. A small-business owner winds up paying a higher starting salary for the director of manufacturing than she wanted. The employment agency who placed the director of manufacturing says to the business owner, “I know that Derek costs more than you have budgeted, but don’t worry about it; you have made a great investment. Derek will increase your manufacturing productivity so much that his salary and benefits will be a bargain for you.”

Effective negotiation, as with any other form of conflict resolution, requires extensive practice and knowledge of basic principles and techniques. As a starting point, you might

Skill-Building Exercise 9-4

 

Negotiating a Starting Salary

A scenario for negotiation for many people is asking for a starting salary. In large organizations with many written rules and regulations, there is less opportunity for negotiating compensation (except for high-level executive positions) than in smaller firms. In the negotiating scenarios listed ahead, assume that you are applying for work with a small-size or medium-size firm. Assume also that you (a) have about three years of experience in the position in question, (b) have a good reputation including high job performance and a clean record, and (c) strongly want the position. Five positions are listed along with a plausible starting salary that you are seeking. The sixth position allows for your unique situation.

Accountant, $51,500

Computer support specialist, $42,500

Telemarketer, $21,000

Fitness trainer, $32,500

Personal financial advisor, $59,500

Your field, your salary demands

The other person involved in the role-play is the hiring manager, who has a general idea of what he or she would like to pay as a starting salary. The hiring manager is impressed with you, yet still wants to economize on the starting salary. Do not simply start debating a starting salary. Both sides should use at least two of the negotiation tactics described in this chapter.

Several duos might try this negotiating activity in front of the class for approximately eight minutes. Observers should attempt to identify (a) how well the negotiation went and (b) which specific negotiating tactics were used.

take one of the negotiating tactics just described and practice it when the stakes are not so high. You might attempt to negotiate the price of a consumer electronics device, or negotiate for getting a particular Friday afternoon off from work.

A major theme running through the various approaches to conflict resolution, including negotiating and bargaining, is that cooperating with the other side is usually preferable to competing. A study with 61 self-managing teams with 489 employees supports this idea of the superiority of cooperation over competition in successful conflict resolution. The style of conflict resolution was measured through questionnaires. For example, a statement geared toward cooperative behavior was, “We seek a solution that will be good for the whole team.” Conflict efficacy was measured by a questionnaire indicating the extent to which team members believed that they could successfully manage different conflict situations. Group effectiveness was measured by the ratings of supervisor and team leaders on productivity, quality, and cost savings: central reasons why self-directed teams are formed.

The study found that the cooperative approach to conflict was positively related to conflict efficacy. In contrast, the competitive approach to conflict was negatively related to conflict efficacy. Equally important, conflict efficacy was strongly associated with supervisory and team-leader ratings of team effectiveness.[39]

Skill-Building Exercise 9-4 provides you with the opportunity to practice negotiating in a scenario that most people encounter at least once in their career.Combating Sexual Harassment: A Special Type of Conflict

Learning Objective 5

Many employees face conflict because a supervisor, coworker, or customer sexually harasses them. Sexual harassment is generally defined as unwanted sexually oriented behavior in the workplace that results in discomfort or interference with the job. The legal definition of sexual harassment is unwelcome verbal, visual, or physical conduct of a sexual nature that is severe or pervasive and affects working conditions or creates a hostile working environment. It can include an action as violent as rape or as subtle as a sexually oriented comment about a person’s body or appearance. Harassment creates conflict because the harassed person has to make a choice between two incompatible motives. One motive is to get ahead, keep the job, or have an unthreatening work environment. But to satisfy this motive, the person is forced to sacrifice the motive of holding on to his or her moral value or preferences. Here we focus on the types and frequency of sexual harassment, the effects of harassment, and guidelines for dealing with the problem.

sexual harassment

Unwanted sexually oriented behavior in the workplace that results in discomfort or interference with the job.

Types of Harassment

The courts recognize two types of sexual harassment. In quid pro quo sexual harassment, the individual suffers job loss, or threatened loss of a job benefit, as a result of his or her responses to a request for sexual favors. The demands of a harasser can be explicit or implied. An example of quid pro quo harassment is a manager promising an employee a promotion in exchange for sexual favors and then not promoting the employee because the employee refused.

The other form of sexual harassment is hostile environment. It occurs when someone in the workplace creates an intimidating, hostile, or offensive working environment. An employee who is subjected to sexually suggestive comments, lewd jokes, or advances is a victim of hostile environment harassment. No tangible loss has to be suffered in this form of sexual harassment. In recent years there are more complaints about hostile enivonment harassment than quid pro quo. Quite often the complaints relate to bosses who make sexual remarks or send inappropriate e-mails and text messages (“sexting”).[40]

Different Perceptions of Sexual Harassment

An analysis of many studies indicated that women perceive a broader range of social–sexual behaviors as harassing. The analysis also found that the female–male difference was larger for behaviors associated with hostile work environment harassment, derogatory attitudes toward women, dating pressure, or physical sexual contact. Men and women, however, agree closely that various types of sexual coercion, such as encounters that are made a condition of promotion, can be classified as quid pro quo harassment.[41]

In attempting to understand what constitutes sexual harassment, research and common sense suggest that not all sexually oriented behaviors such as jokes about sex and mild flirting are offensive or unwanted. Many workers perceived such behavior as enjoyable. Especially with e-mail and texting, many men and women send each other sexually oriented jokes. Sexual behavior has to be unwanted to be classified as sexual harassment. A surprising aspect of the research in question is that even when employees enjoyed sexually oriented behavior at work, they still experienced negative effects. The negative effects were thinking about quitting and lower psychological well-being.[42]

Sexual Harassment as Power

Sexual harassment is also regarded as an expression of power by one individual over another because the harasser often has more formal power than the harassed. The coworker who harasses another coworker may be attempting to use personal rather than formal power. Similarly, customers and clients who sexually harass a worker may be attempting to exert power. The harasser, following this logic, is a power abuser as well as a legal offender.

Frequency and Setting of Sexual Harassment

Sexual harassment is widespread in the US workplace and in other countries as well. According to one large-scale study, when conclusions are based on more scientific studies, 58 percent of women report having experienced potential harassment behaviors, and 24 percent report having experienced sexual harassment on the job. Approximately 16 percent of sexual harassment complaints made to the EEOC (Equal Employment Opportunity Commission) are from men, both against women and other men.[43] Sexual harassment directed at professional women by clients and customers is more frequent than harassment within the company. Sexist hostility, such as putting a person down because of his or her sex, was the most frequently noted type of harassment.[44]

Women in nontraditional jobs (such as welder or pressroom supervisor) are especially likely to be harassed. Similarly, a study found that women in male-dominated manufacturing plants are harassed more than women in female-dominated community service centers.[45] A possible reason is that in a male-dominated organization, men may feel that they have more power over women. Although women in nontraditional jobs run a high risk of being sexually harassed, harassment takes place in many other settings as well and at all levels in an organization.

Creatas Images/Thinkstock

The Adverse Effects of Sexual Harassment

Aside from being unethical, immoral, and illegal, sexual harassment is widely thought to have adverse consequences. The harassed person may experience job stress, lowered morale, severe conflict, and lowered productivity. The studies indicate that harassment negatively affects job performance, loyalty to the firm, and personal wellbeing. Note also that some women suffered posttraumatic stress disorder, almost as if they had been involved in a serious accident.[46]

Guidelines for Preventing and Dealing with Sexual Harassment

A starting point in dealing with sexual harassment is to develop an awareness of the types of behaviors that are considered sexual harassment. Often the difference is subtle. Suppose, for example, you placed copies of two photos of nude people on a coworker’s desk or sent them as an attachment to an e-mail. Your coworker might call that harassment. Yet if you took that coworker to a museum to see the same photos in an exhibit, your behavior usually would not be classified as harassment. Following is a sampling of behaviors that will often be interpreted as environmental harassment.[47] Awareness of these behaviors is important because many harassers have no desire to offend or knowledge that they are offending others. Such individuals are insensitive, and often ill informed. If people refrain from doing these acts, many instances of sexual harassment will be avoided.

Inappropriate remarks and sexual implications: Coworkers, subordinates, customers, and suppliers should not be referred to as sexual beings, and their appearance should not be referred to in a sexual manner. Telling a coworker she has gorgeous feet, or he has fabulous biceps, is out of place at work.

Terms of endearment: Refrain from calling others in the workplace by names such as “cutie,” “sweetie pie,” “honey,” “dear,” or “hunk.” One might argue that these terms are simply sexist (different roles for men and women) and not sexual harassment. This argument, however, has lost ground because any behavior that puts people down based on their gender can be interpreted as harassment from a legal perspective. Keep in mind also that some people find terms of endearment to have a sexual connotation. If you felt no physical attraction toward another adult, would you call that person “beauty” or “hunk”?

Suggestive compliments: It is acceptable to tell another person that he or she looks nice, but avoid sexually tinged comments, such as mentioning that the person’s clothing shows off his or her body to advantage.

Physical touching: To avoid any appearance of sexual harassment, it is best to restrict physical touching to handshakes and an occasional sideways hug. High-five handshakes or fist bumps are favored by many because they are less intimate than the traditional type. Hugging a long-term work associate is much more acceptable than hugging a new hire. Minimize such behaviors as adjusting a coworker’s earring, touching someone’s hair, and tweaking a person’s chin.

Work-related kissing: It is best to avoid all kissing in a work context—except, perhaps, a light kiss at an office party or picnic. It is much more professional to greet a work associate with a warm, sincere handshake, including the high-five type. Cultural differences must be taken into account here; for example, many Europeans and Africans greet work associates with a peck on both sides of the face.

Visual sexually oriented presentations. Many people believe they are sexually harassed because somebody else in the workplace displays still photos, computer images, screen savers, and e-mail attachments of a sexual nature. Even photos of fully clothed people in revealing clothing might be interpeted by somebody as sexual in nature, so it is best to not display any sexually oriented visual presentations in the workplace.

Company management also plays a major role in preventing and dealing with sexual harassment. Based on the observations of dozens of human resource specialists and employment law attorneys, several actions by management are critical.[48] The cornerstone of control of sexual harassment is creating and widely disseminating a policy about harassment. The policy should carefully define harassment and state that the company has zero tolerance for such behavior. Company officials designated for hearing complaints should be specified. In addition, the company should have an open-door policy about harassment. Such a policy means that any employee with a concern about being harassed is able to go directly to a senior manager without worrying about his or her supervisor taking revenge.

Brief company training programs covering the type of information presented in this chapter are also part of a serious program to prevent and deal with sexual harassment; however, a one-time presentation of a 15-minute video about sexual harassment is not sufficient. Periodic discussion about the topic is recommended.

After sexual harassment has taken place, the victim will usually want to resolve the conflict. Two key strategies are either to use a formal complaint procedure or to resolve the conflict on your own. If you choose the latter course, you will save yourself the time of going through a lengthy investigation procedure. Figure 9-2 presents details about the two key strategies for dealing with sexual harassment.

Skill-Building Exercise 9-5

offers you an opportunity to simulate the control of sexual harassment.

A major recommendation for documenting acts of sexual harassment is to keep a running diary of incidents against you. A log of the incidents is impressive to company officials, lawyers, and judges (should a lawsuit ultimately be involved). Following are examples of log entries from a woman and a man:

January 17, 2015: Jim Quattrone, the manager of accounts payable, asked me to have dinner with him for the sixth time, and I turned him down again. I said “no,” “no,” “no.”

March 13, 2015: Meg Evans, my supervisor, said that I would receive a much better performance evaluation if I could come over to her house for dinner. She said her husband would be out of town, so I could stay overnight if I wanted to. I felt so uncomfortable and pressured. I made up an excuse about having an exclusive relationship.

The potential or actual victim of sexual harassment is advised to use the following methods and tactics to deal with the problem. Formal Complaint Procedure. Whenever an employee believes that he or she has encountered sexual harassment, or if an employee is suspected to be the perpetrator of sexual harassment, the complainant should report the incident to his or her immediate supervisor (if that person is not the harasser) or to the next higher level of management if the supervisor is the harasser. The supervisor contacted is responsible for contacting a designated company official immediately regarding each complaint. The officer will explain the investigative procedures to the complainant and any supervisor involved. All matters will be kept strictly confidential, including private conversations with all parties. Dealing with the Problem on Your Own. The easiest way to deal with sexual harassment is to speak up before it becomes serious. The first time it happens, respond with a statement such as: “I won’t tolerate this kind of talk,” “I dislike sexually oriented jokes,” or “Keep your hands off me.”

Figure 9-2 How to Deal with Sexual Harassment

Skill-Building Exercise 9-5
 

Combating Sexual Harassment

The two role-plays in this exercise provide practice in applying the recommended techniques for combating sexual harassment. The activities have an implied sexual content, and they are for educational purposes only. Any students offended by these role-plays should exclude themselves from participating.

Scenario 1:

The Offensive Jester

One student plays the role of Max, a man who delights in telling sexually oriented jokes and anecdotes in the office. He often brings a tabloid newspaper to the office to read sexually oriented passages to coworkers, both male and female. Another student assumes the role of Maxine, a woman in the office who takes offense to Max’s humor. She wants to convince Max that he is committing sexual harassment with his sexually oriented humor. Max does not see himself as committing sexual harassment.

Scenario 2:

The Flirtatious Office Manager

One student assumes the role of Bertha, an office manager who is single. Another student plays the role of Bert, a married man who recently joined the company as an office assistant. Bert reports to Bertha, and she finds him physically attractive. Bertha visits Bert at his desk and makes such comments as “It looks like you have great quadriceps. I wonder what you look like in running shorts.” Bert wants to be on good terms with Bertha, but he feels uncomfortable with her advances. He also wants to behave professionally in the office.

Run both role-plays in front of the class for about eight minutes. Other students in the class will observe the role-plays and then provide feedback about how well Maxine and Bert were able to prevent or stop sexual harassment. Observe if Maxine and Bert used any of the recommended techniques for dealing with harassment.

Concept Review and Reinforcement

Key Terms

conflict 199

role conflict 199

work–family conflict 201

personality clash 202

incivility 203

win–win 206

cognitive restructuring 210

negotiating 211

compromise 213

sexual harassment 215

Summary

A conflict is a situation in which two or more goals, values, or events are incompatible or mutually exclusive. Interpersonal conflicts have many sources or causes. An underlying source of job conflict is that people compete for limited resources. Another leading cause of incompatibility is role conflict, having to choose between two competing demands or expectations. Competing work and family demands represent a major role conflict. Other key sources of conflict are personality clashes and drama, aggressive personalities (including bullies, incivility, and rudeness), and cross-generational conflict. Workplace violence is both a cause and an effect of job conflict. In addition to the sources of conflict, another way to understand conflict is whether it is aimed at work or personal issues. When intense, both task and relationship conflict can by disruptive.

Five major styles of conflict management have been identified: competitive, accommodative, sharing, collaborative (win–win), and avoidant. Each style is based on a combination of satisfying one’s own concerns (assertiveness) and satisfying the concerns of others (cooperativeness).

Confrontation and problem solving is the ideal method for resolving conflict. Learning to benefit from criticism is an effective way of benefiting from conflict. People who benefit from criticism are able to stand outside themselves while being criticized. Another way to deal with criticism is to disarm the opposition by agreeing with his or her criticism. Reframing a situation can be helpful in resolving conflict. Reframing through cognitive restructuring lessens conflict by the person looking for the positive elements in a situation. Asking questions such as, “How would I want to be treated if the situation were reversed?” is another type or reframing.

Negotiating and bargaining is a major approach to resolving conflict. People negotiate for economic value and also for intangibles such as feeling good. Negotiation tactics include understanding the other party’s perspective, focusing on interests rather than positions, compromising, beginning with a plausible demand or offer yet allowing room for negotiation, and making small concessions gradually. It is also important to know your BATNA (best alternative to a negotiated agreement). Using anger to your advantage can sometimes work. Allowing for face saving is also recommended.

Sexual harassment is a form of interpersonal conflict with legal implications. The two forms of sexual harassment are (1) quid pro quo (demanding sex in exchange for favors) and (2) creating a hostile environment. People have differing perceptions of what constitutes sexual harassment, and some workers enjoy sexually oriented behavior on the job. Sexual harassment is often an expression of power. Sexual harassment is widespread in the workplace. Research has pinpointed adverse mental and physical consequences of sexual harassment.

A starting point in dealing with sexual harassment is to develop an awareness of the types of behaviors it encompasses. Company policies and complaint procedures about harassment are a major part of dealing with the problem. To deal directly with harassment, the harassed person can file a formal complaint or confront the harasser when the behavior first begins. Keeping a diary of harassing events is strongly recommended.

Questions for Discussion and Review

Several large companies dismiss each year the 5 percent of their workforce receiving the lowest performance evaluations. What kind of conflicts do you think this practice leads to?

Suppose someone finds out that a coworker has an enormous collection of violent video
games, leading the first person to conclude that the coworker is potentially violent. Describe whether you think the first worker should tell the supervisor that the coworker is potentially violent on the job.

What are the disadvantages of having an accommodative style of handling conflict?

Luke and Lucy are a married couple both conducting a job search after graduation. Luke receives an job offer located in Anchorage, Alaska, whereas Lucy receives an job offer in Honolulu, Hawaii; they both agree that a commuter marriage would be out of the question. How can this couple find a win–win resolution to their conflict?

Have you ever attempted to disarm the opposition? How effective was the tactic?

How might a student use cognitive restructuring to get over the anger of having received a low grade in a course?

Visualize yourself buying a vehicle of your choice. Which negotiating technique (or techniques) would you be most likely to use?

Suppose you believed that your workload was unreasonable, but you otherwise enjoyed working for your manager and your employer. Which approach to negotiation might you take to deal with the work overload problem?

Sexual harassment involves an unwanted sexual advance, and people at work have many different interpretations of an “unwanted sexual advance,” including asking a coworker to join you for lunch. So how can a career-minded person completely avoid any behavior that might be interpreted as an “unwanted sexual advance”?

The vast majority of working people know that sexual harassment is both illegal and immoral. Why then is sexual harassment of both types so widely practiced in the workplace?

The Web Corner

http://www.ehow.com/how_8200614_resolve-workplace-conflicts.html

(Resolving workplace conflict)

http://www.kantola.com/Preventing-Sexual-Harassment-PDPD-47-K.aspx

(Preventing sexual harassment)

Internet Skill Builder: Finding Suggestions for Resolving Conflict on YouTube

YouTube.com often has a generous sampling of brief videos about resolving conflict that apply mostly to personal life, but some are about the workplace. Visit YouTube.com, watch a handful of videos about conflict resolution, and look for a few serious messages. Look for any similarities between the information presented in YouTube videos and in this chapter. Also, does it appear that any of the videos you find present a humorous aspect to conflict resolution?

Developing Your Human Relations Skills

Interpersonal Relations Case 9.1

Ashley Uses Passion as an Excuse

Ashley works as a price estimator in the division of a large electronics company that manufactures and sells security systems to business firms. She holds a degree in electronics technology and has extensive knowledge about security systems. In recent years her company has prospered because of heightened concerns about security. The market for security systems in her area, however, has become saturated, because virtually every firm has a security system.

New business for the division comes mostly from getting companies to switch to her company or from security system upgrades with existing customers.

As a result of the security business having stabilized in the geographic area, the atmosphere in the office has become tense. Workers have become less calm and pleasant than they were previously. Ashley, who has had a volatile personality since early childhood, has become tenser than her coworkers. During a recent project to upgrade the security system at a pharmaceutical warehouse, the sales representative accused Ashley of providing a cost estimate too high to clinch the deal. Ashley replied, “You are a sad (expletive) sales person. You will tell a prospective client anything just to bag a sale. So long as you get your commission, you don’t care if the company loses money on the project.” Ashley offered no apology for her outburst.

A week later at a department meeting to discuss goals for the year, Ashley said to the group, including the manager, “Goal setting for me is a dumb (expletive) idea. I will have no work to do unless this time-wasting, expense-account-hogging sales group gets off its butt and makes some sales.”

Horrified, the manager said to Ashley, “You are being totally unprofessional. Please apologize to the sales group.”

Ashley said, “Okay, maybe I shouldn’t be so truthful in what I say. I can’t help it. I’m a passionate person who wants results for the company.”

Questions

To what extent does Ashley being “passionate” justify her expression of anger toward coworkers?

What do you recommend that Ashley’s manager and coworkers do to resolve conflict with her in the office? Or should the manager and coworkers just ignore her?

What career advice might you offer Ashley? (Or does she need any advice?)

Interpersonal Skills Role-Play

9.1

Ashley Lashes Out

One student plays the role of the sales representative, who accuses Ashley of providing a cost estimate too high to clinch the deal with the pharmaceutical warehouse. Another student plays the role of Ashley, who lashes back at the sales rep. The goal of the sales representative is to be treated in a more civil manner by Ashley. The rep also wants to get Ashley more into a problem-solving mode. Ashley, in turn, thinks that the rep is more interested in bagging a sale than making money for the company.

Observers rate the role-players on two dimensions, using a 1 to 5 scale from very poor (1) to very good (5). One dimension is “effective use of human relations techniques.” Focus on the rep’s ability to effectively deal with Ashley’s anger and hostility. The second dimension is “acting ability.” A few observers might voluntarily provide feedback to the role players in terms of sharing their ratings and observations. The course instructor might also provide feedback.

Interpersonal Relations Case 9.2

The Uncomfortable Business Trip

Tammy worked diligently for two years as a marketing assistant at Biotronics, a manufacturer of electronic equipment for the health field. She was then promoted to sales representative, covering the entire state of Indiana. Tammy brought the good news home to her husband, Rick. As she explained the details of the promotion to him, Tammy noticed that Rick developed a glum expression. When asked why he was so unenthusiastic about her promotion, Rick replied:

“You may think that I’m being old fashioned, but I can see a lot of trouble ahead for you in your new job. You’ll be forced into a good deal of overnight travel. In the process, you’ll find yourself in some touchy situations with men from your company and also with strangers.”

“Rick, I agree with one thing you said. You are being old fashioned. A woman who isn’t looking to get involved with a man on a business trip will have no problem. I just read an article to that effect in a magazine for career women.”

Rick and Tammy continued their discussion for 15 more minutes and then shifted to a talk about plans for the weekend. Two weeks later, Tammy’s boss arranged a business trip for him and Tammy to attend a medical conference in Indianapolis. Tammy told Rick that she would be gone for three days on this important trip with “three people from the office.”

Duane, Tammy’s boss, invited her to have dinner with him the first night of the convention. Tammy said that she was so tired from the day’s excitement that she would prefer to have a snack alone and then retire to her room. But Duane persisted, and not wanting to offend her boss, Tammy met Duane for dinner.

During dinner, Duane shifted quickly from a discussion of business topics to questions about Tammy’s hobbies, personal interests, and how well she was getting along with Rick. Toward the end of the dinner, Duane extended another invitation to Tammy: “Let’s you and I go dancing next. The evening is young, and we’re both adults, free to do what we want. Besides that, I feel a lot of good chemistry between us. And if you and I were compatible, I would be more willing to get you assigned to some of our major customers in your territory.”

Tammy felt a surge of uneasiness. She thought quickly, “What do I do now? If I turn down Duane, the trip could turn into a disaster. But if I go out with him, I’m sure I’ll be facing another kind of disaster: fighting off the advances of my boss. And then if I tell Rick about this fiasco, he’ll say ‘I told you so’ and ask me to quit my job. I’ve got to say something to Duane right now, but I don’t know what.”

Case Questions

Precisely what conflicts is Tammy facing?

What on-the-spot tactic of conflict resolution can you recommend to Tammy?

What should Tammy do as a long-range solution to the problem of men trying to convert business occasions into social occasions, when she wants to keep them as business occasions?

Explain which type of sexual harassment appears to be evident in this case.

Interpersonal Skills Role-Play 9.2

Tammy Deals with Duane’s Advances

One student plays the role of Tammy, who is eager to please her boss in work-related matters and who also wants to hold on to her job. At the same time she is adamant about not wanting to be sexually harassed or unfaithful to her husband. Duane, following the scenario in the case just presented, would like to advance his romantic (or lustful) interest in Tammy as far as the situation will permit.

Run the role play for about eight minutes. Observers might provide feedback about how effective Tammy was in stopping this incident of sexual harassment, yet at the same time not creating a poor working relationship with Duane. (Or maybe some observers will think that Tammy should express anger and promise to report his behavior to the company.) Also provide feedback about how well Duane accepts the rejection of his advances without destroying his working relationship with Tammy.

References

Michael T. Ford, Beth A. Heinen, and Krista L. Langkamer, “Work and Family Satisfaction and Conflict: A Meta-Analysis of Cross-Domain Relations,” Journal of Applied Psychology, January 2007, pp. 57–80.

Timothy A. Judge, Remus Ilies, and Brent A. Scott, “Work-Family Conflict and Emotions: Effects at Work and at Home,” Personnel Psychology, Winter 2006, pp. 779–814.

Quoted in Naomi Schaefer Riley, “Work and Life—and Blogging the Balance,” The Wall Street Journal, July 17, 2009, p. W11.

Jenny M. Hoobler, Sandy J. Wayne, and Grace Lemmon, “Bosses’ Perceptions of Family-Work Conflict and Women’s Promotability: Glass Ceiling Effects,” Academy of Management Journal, October 2009, pp. 939–957.

Joyce M. Rosenberg, “Equitable Time-Off Policies Avert Staff Conflicts,” Associated Press, September 3, 2007.

Kathryn Tyler, “Beat the Clock,” HR Magazine, November 2003, p. 103.

Ellen Ernst Kossek, Shaun Pichler, Todd Bodner, and Leslie B. Hammer, “Workplace Social Support and Work-Family Conflict: A Meta-Analysis Clarifying the Influence of General and Work-Family-Specific Supervisor and Organizational Support,” Personnel Psychology, Number 2, 2011, pp. 289–313.

Marcus M. Butts, Wendy J. Casper, and Tae Seok Yang, “How Important Are Work-Family Support Policies? A Meta-Analytic Investigation of Their Effects on Employee Outcomes,” Journal of Applied Psychology, January 2013, pp. 1–25.

Ruth David Konigsberg, “Chore Wars,” Time, August 8, 2011, pp. 44–49.

Judith Sills, “When Personalities Clash,” Psychology Today, November/December 2006, p. 61.

Marlene Chism, “Drop the Curtain on Workplace Drama,” Communication Briefings, June 2011, p. 5.

Cited in, “Field Guide to Office Bullies,” Bloomberg Businessweek, November 26–December 2, 2012, p. 94.

Vincent J. Roscigno, Steven H. Lopez, and Randy Hodson, “Supervisory Bullying, Status Inequalities, and Organizational Context,” Social Forces, July 2009, pp. 1561–1589.

Gary Namie, “(Still) Bullying with Impunity: Labor Day Survey,” Workplace Bullying Institute, September 2009; Namie, “U.S. Workplace Bullying Survey,” Workplace Bullying Institute and Zogby International, September 2007; Cited in “Field Guide to Office Bullying,” p. 93.

Stuart D. Sidle, “Eye of the Beholder: Does Culture Shape Perceptions of Workplace Bullying?” Academy of Management Perspectives, August 2010, pp. 100–101; Jenifer Loh, Simon Lloyd D. Restubo, and Thomas J. Zagenczyk, “Consequences of Workplace Bullying on Employee Identification and Satisfaction among Australians and Singaporeans,” Journal of Cross-Cultural Psychology, Number 2, 2010, pp. 236–252.

Lilia M. Cortina and Vicki J. Magley, “Patterns and Profiles of Responses to Incivility in the Workplace,” Journal of Occupational Health Psychology, July 2009, pp. 272–288.

Study cited in Susan G. Hauser, “Degeneration of Decorum,” Workforce Management, January 2011, pp. 17–18.

Michael P. Leiter, Heather K. Spence Laschinger, Aria Day, and Debra Gilin Oore, “The Impact of Civility Interventions on Employee Social Behavior, Distress, and Attitudes,” Journal of Applied Psychology, November 2011, p. 1259.

Study cited in Elizabeth Bernstein, “Big Explosions, Small Reasons,” The Wall Street Journal, October 16, 2012, p. D1.

Among the people making this comment is Merrill Markoe, “A Renaissance of Rudeness,” The Wall Street Journal, May 21–22, 2011, p. C3.

Chris Pentila, “Talking about My Generation,” Entrepreneur, March 2009, p. 55; “The Multigenerational Workforce: Opportunity for Competitive Success,” SHRM Research Quarterly, First Quarter-2009, pp. 1–2.

Emilie Le Beau, “From Conflict to ‘Cohorts’—When Young, Older Workers Mix,” Workforce Management, October 2010, p. 12.

“Workplace Violence,” www.osha.gov, p. 1, updated 2010.

Cited in Susan M. Heathfield, “Workplace Violence: Violence Can Happen; Recognizing the Potential for Workplace Violence,” About.com Human Resources, 2009.

Bret H. Bradley, Bennett E. Postlethwaite, Anthony C. Klotz, Maria R. Hamdani, and Kenneth G. Brown, “Reaping the Benefits of Task Conflict in Teams: The Critical Role of Team Psychological Safety Climate,” Journal of Applied Psychology, January 2012, pp. 151–158.

Carlsen K. W. De Dreu and Laurie Weingart, “Task versus Relationship Conflict, Team Performance and Team Member Satisfaction: A Meta-Analysis,” Journal of Applied Psychology, August 2003, pp. 741–749.

De Dreu and Weingart, “Task versus Relationship Conflict,” p. 746.

Kenneth Thomas, “Conflict and Conflict Management,” in Marvin D. Dunnette, ed., Handbook of Industrial and Organizational Psychology (Chicago: Rand McNally College Publishing, 1976), pp. 900–902. Some of the information about when to use each style is from Dean Tjosvold, The Conflict Positive Organization (Reading, MA: Addison-Wesley, 1991).

“7 Steps to Conflict Resolution,” Executive Leadership, June 2007, p. 7. As adapted from The Common Sense Guy Blog, by Bud Bilanich, http://www.commonsenseguy.com.

Deb Koen, “Face-to-Face Communication is Best for Emotionally Charged Situations,” Democrat and Chronicle, August 2, 2011, p. 2E.

The first three suggestions are from Connirae Andreas and Steve Andreas, Heart of the Mind (Moab, UT: Real People Press, 1991). Suggestion four is from Deb Koen, “How to Handle Criticism at Work,” Rochester, New York,Democrat and Chronicle, June 20, 2004.

Alina Tugend, “An Attempt to Revive the Lost Art of Apology,” The New York Times (http://nytimes.com ), January 30, 2010, p. 1.

“Conquer Conflict with this Technique,” Manager’s Edge, September 2007, p. 5. As adapted from Maria Broomhower, “Dissolving Conflict through Reframing,” http://conflict911.com.

“What’s Your Negotiating Style?” Executive Leadership, March 2010, p. 4; Program on Negotiation, Harvard Law School, http://www.pon.harvard.edu.

Jared Curhan, Hilary Anger Elfenbein, and Heng Xu “What Do People Value When They Negotiate? Mapping the Domain of Subjective Value in Negotiation,” Journal of Personality and Social Psychology, vol. 3, 2006, pp. 493–512.

Deepak Malhotra and Max H. Bazerman, “Investigative Negotiation,” Harvard Business Review, September 2007, pp. 72–78.

William Ury, The Power of a Positive No (New York: Random House, 2007).

Mark Diener, “Mad Skills,” Entrepreneur, April 2003, p. 79.

Steve Alper, Dean Tjosvold, and Kenneth S. Law, “Conflict Management, Efficacy, and Performance in Organizational Teams,” Personnel Psychology, Autumn 2000, pp. 625–642.

Jeff Green, “The Silencing of Sexual Harassment,”Bloomberg Businessweek, November 21–November 27, 2011, p, 28.

Maria Rotundo, Dung-Hanh Nguyen, and Paul R. Sackett, “A Meta-Analytic Review of Gender Differences in Perceptions of Sexual Harassment,” Journal of Applied Psychology, October 2001, pp. 914–922.

Jennifer L. Berdhahl and Karl Aquino, “Sexual Behavior at Work: Fun or Folly” Journal of Applied Psychology, January 2009, pp. 34–47.

Remus Ilies, Nancy Hauserman, Susan Schwochau, and John Stibal, “Reported Incidence Rates of Work-Related Sexual Harassment in the United States: Using Meta-Analysis to Explain Rate Disparities,” Personnel Psychology, Autumn 2003, pp. 607–631; Green, “The Silencing of Sexual Harassment,” p. 28.

Hilary J. Gettman and Michele J. Gelfand, “When the Customer Shouldn’t Be King: Antecedents and Consequences of Sexual Harassment by Clients and Customers,” Journal of Applied Psychology, May 2007, pp. 757–770.

Jennifer L. Berdahl, “The Sexual Harassment of Uppity Women,” Journal of Applied Psychology, March 2007, pp. 425–437.

Chelsea R. Willness, Piers Steel, and Kibeom Lee, “A Meta-Analysis of the Antecedents and Consequences of Workplace Sexual Harassment,” Personnel Psychology, Spring 2007, p. 141.

Kathleen Neville, Corporate Attractions: An Inside Account of Sexual Harassment with the New Sexual Roles for Men and Women on the Job (Reston, VA: Acropolis Books, 1992); Joanne Cole, “Sexual Harassment: New Rules, New Behavior,” HRfocus, March 1999, pp. 1, 14–15; Jathan W. Janove, “Sexual Harassment and the Three Big Surprises,” HR Magazine, November 2001, p. 123; “Know Your Rights: Sexual Harassment at Work,” Equal Rights Advocates, © 2013 Equal Rights Advocates Inc.

Cole, “Sexual Harassment: New Rules,” p. 14; “Know Your Rights: Sexual Harassment at Work.”

Chapter 14 Customer Satisfaction Skills

BananaStock/Thinkstock

Learning Objectives
After reading and studying this chapter and completing the exercises, you should be able to

Enhance your ability to satisfy customers by using general principles of customer satisfaction.

Create bonds with present or future customers.

Have a plan to manage customer dissatisfaction effectively.

During a recent day at the bank where he worked as a mortgage officer, Jared was meeting with a couple, Roger and Wanda. The couple had already completed their preliminary mortgage application online. Before making a final decision on the specific mortgage to offer the couple, Jared wanted some additional information. He congratulated Roger and Wanda for purchasing a home, then asked the couple why they were purchasing a home.

The couple said that purchasing a home represented stability in their lives, for both them and their three children. Roger and Wanda also mentioned that purchasing a home might turn out to be a good investment in contrast to renting. Jared then asked the couple why they chose to apply at the bank he represents rather than another financial institution.

Again, the couple emphasized stability, this time pointing out that Jared’s employer is one of the oldest and most dependable banks in the region.

One concern the couple did express was that the mortgage Jared’s bank was offering them was one-third of a percent higher than some of the rates they had seen advertised. Jared agreed that the bank’s mortgage rate was higher than some competitors, but said that it was better suited to their needs. “Our bank’s approach to a mortgage is different than many other morgtgage lenders. Your mortgage will stay with us after it is granted. You will not have to be concerned about us selling your mortgage to an unknown third party. In this way, you will have some peace of mind about which insititution will be providing you the customer service you need. You also won’t have to worry about your mortgage rate being suddenly increased.”

Roger and Wanda responded that Jared had a good point. They thought that stability and peace of mind would be essential for an obligation as big as a mortgage. Roger and Wanda asked Jared to seek final approval for their mortgage application.

The approach the mortgage officer took to dealing with the couple in question illustrates a few key points about customer satisfaction skills. Jared asked good questions and listened to the answers. In this way, he knew that stability and security was important to Roger and Wanda. Although the mortgage he offered the couple had a higher rate than some competitors might charge, the mortgage offered them the type of stability that met their needs. This chapter presents information and exercises that can enhance your ability to satisfy both external and internal customers at a high level.

External customers fit the traditional definition and include clients, guests, and patients. External customers can be classified as retail or industrial. The latter represents one company buying from another, such as purchasing steel or a gross of printer cartridges. Internal customers are the people you serve within the organization or those who use the output from your job. Also, everyone you depend upon is an internal customer. The emphasis in this chapter is on satisfying external customers. Much of the rest of the book deals with better serving internal customers, because improved interpersonal relationships enhance the satisfaction of work associates.

Customer satisfaction skills are necessary for all workers in contact with customers, including sales representatives, customer service representatives (those who back up sales and take care of customer problems), and store associates. Workers in a wide variety of jobs need good customer satisfaction skills. The founder of a technology consulting firm observes, “Ninety percent of the time when a client has an issue with a consultant, it’s related to soft skills.”[1]

Another way of understanding the importance of customer satisfaction skills is to recognize that employees who can satisfy customers contribute heavily to profits. The chief executive of a firm that surveys approximately 20 million customers a year for retail and restaurant chains concludes, “A good employee or a good sales associate might be worth 5 or 10 times an average one. We’ve seen that. It’s unreal.”[2]

Various aspects of developing customer satisfaction skills are divided into three parts in this chapter: following the general principles of customer satisfaction, bonding with customers, and managing customer dissatisfaction. As you work through this chapter, you will observe that to implement its suggestions you need many of the interpersonal skills you have been acquiring, such as communication, teamwork, motivation, and conflict resolution. To reflect on your attitudes toward satisfying customers, do

Self-Assessment Quiz 14-1

.

Following the General Principles of Customer Satisfaction

Learning Objective 1

Customer satisfaction is important for several reasons. To begin with, without satisfying customers, a business would cease to exist. The slogan of Tops Markets, Inc., a supermarket chain, is “Customer satisfaction is our only business.” Satisfied customers are likely to tell friends and acquaintances about their satisfactory experiences, helping a firm grow its business. In contrast, dissatisfied customers—especially those with an unresolved problem—are likely to tell many people about their dissatisfaction, thus dissuading a large number of people from becoming new customers. Studies indicate that

Self-Assessment Quiz 14-1
 

The Customer Service Orientation Quiz

Directions:

Mark each of the following statements about dealing with customers as mostly true or mostly false. The statements relate to your attitudes, even if you lack direct experience in dealing with customers. Your experiences as a customer will also be helpful in responding to the statements.

Mostly True	Mostly False
1. All work in a company should be geared toward pleasing customers.
2. The real boss in any business is the customer.
3. Smiling at customers improves the chances of making a sale.
4. I would rather find a new customer than attempt to satisfy one who is difficult to please.
5. Dealing with customers is more rewarding than (or as rewarding as) dealing with coworkers.
6. I enjoy (or would enjoy) helping a customer solve a problem related to the use of my product or service.
7. The best way to get repeat business is to offer steep discounts.
8. In business, your customer is your partner.
9. Dealing directly with customers is (or would be) the most boring part of most jobs.
10. If you have the brand and model the customer wants, being nice to the customer is not so important.
11. A good customer is like a good friend.
12. If you are too friendly with a customer, he or she will take advantage of you.
13. Now that individual consumers and companies can shop online, the personal touch in business is losing importance.
14. Addressing a customer by his or her name helps build a relationship with that customer.
15. Satisfying a customer is fun whether or not it leads to a commission.
16. Working with customers is annoying because it takes me away from working with a computer or sending text messages.

Scoring and Interpretation:

Give yourself a 11 for each of the following statements receiving a response of mostly true: 1, 2, 3, 5, 6, 8, 11, 14, and 15. Give yourself a 11 for each of the following statements receiving a response of mostly false: 4, 7, 9, 10, 12, 13, and 16.

13–16 points: You have a strong orientation toward providing excellent customer service.

8–12 points: You have an average customer service orientation.

1–7 points: You have a below-average orientation toward providing excellent customer service.

an upset or angry customer tells an average of between 10 and 20 other people about an unhappy experience. Industrial customers who are angry often switch suppliers.[3] Customer satisfaction is also highly valued because it breeds customer loyalty, which in turn is very profitable. Repeat business is a success factor in both retail and industrial companies.

Another reason for satisfying customers is the humanitarian aspect. Satisfying people enhances their physical and mental health, whereas dissatisfaction creates negative stress. Have you ever been so angry at poor service that you experienced stress?

Knowing how to satisfy customers is a subset of effective interpersonal relations in organizations. Nevertheless, there are certain general principles that will sharpen your ability to satisfy customers and thereby improve customer retention. This section presents ten key principles for satisfying customers.

Figure 14-1 Levels of Customer Satisfaction

Strive for High Levels of Customer Satisfaction

In relation to developing customer satisfaction skills, keep in mind that satisfaction is considered a minimum expectation. If you do an outstanding job of satisfying customers, they will experience delight, as shown in Figure 14-1.

One of the most effective ways to provide the highest levels of customer satisfaction is to provide the customer with an unusually sensitive and warm surprise, often referred to as a “wow” experience. A daily activity at every Marriott International’s Ritz-Carlton hotel around the world is the staff meeting to share “wow” stories. The stories accomplish two important ends. First, they offer workers local recognition in front of peers. Second, the wow stories reinforce the values each employee is expected to demonstrate as a Ritz-Carlton “ambassador” (being part of the hotel brand experience).[4]

A few years ago the Cadillac division of General Motors was struggling to earn a bigger share of the luxury market in the United States. One of their solutions to the problem was to bring in trainers from the Ritz-Carlton Hotel chain to show Cadillac dealers how to create a consistent sales experience at dealerships in the United States. Cadillac imitated the Ritz Carlton pocket-size “Credo” cards that explain how customers should be treated. Ritz employees are empowered to spend up to $2,000 that can be used for the purpose of compensating for a bad customer experience or surprising a guest with a better one. Cadillac dealers were told to find similar ways to wow customers. Among these approaches to pleasing customers were giving service chiefs more flexibility to provide free maintenance or even reduce service charges for unhappy customers. As a result of the training, a Cadillac dealer in Chicago gave employees $300 to $500 in “wow” money.[5]

Be Satisfied So You Can Provide Better Customer Service

Employees who are happy with their jobs are the most likely to satisfy customers. As stated by Frank DeRiso, a local president of the United Food and Commercial Workers union, “The employees are your No. 1 asset. You don’t have a customer base without employees.”[6] Treating employees well puts them in a better frame of mind to treat their customers well and provide better service, especially in the human interaction aspect of service.

According to consumer behavior specialist James Hazen, good service comes down to creating a positive and memorable customer experience. For example, Starbucks can command a premium price for its coffee beverages not simply because of the quality of its beans and its stylish cardboard cups, but because of the overall experience. And the employees—particularly the baristas—are part of that experience.[7] Although Starbucks has reduced many prices in recent years, its customers still have the option of purchasing lower price coffee at fast-food chains and convenience stores.

Acting alone, you cannot improve company conditions that contribute to job satisfaction. What you can control to some extent, however, is your own attitudes that are related to job satisfaction. A checklist of attitudes and beliefs related to job satisfaction, and over which you can exert some control, follows:

Interest in the work itself. Job satisfaction stems directly from being interested in what you are doing. People who love their work experience high job satisfaction and are therefore in the right frame of mind to satisfy customers.

A feeling of self-esteem. If you have high self-esteem, you are more likely to experience high job satisfaction. High-status occupations contribute more to self-esteem than do those of low status. Feelings of self-esteem also stem from doing work the individual sees as worthwhile. This perception is less influenced by external standards than it is by the status associated with a particular job or occupation.

Optimism and flexibility. An optimistic and flexible person is predisposed to be a satisfied employee. A pessimistic and rigid person will most likely be a dissatisfied employee. Every company has its share of “pills” who always find something to complain about. Some evidence suggests that a tendency toward optimism versus pessimism is inherited.[8] If you have a predisposition toward pessimism, you can still become more optimistic with self-discipline. For example, you can look for the positive aspects of a generally unpleasant situation.

Positive self-image. People possessing a positive self-image are generally more satisfied with their jobs than are those possessing a negative self-image. One explanation is that the people who view themselves negatively tend to view most things negatively. You have to like yourself before you can like your job.

Positive expectations about the job. People with positive expectations about their jobs are frequently more satisfied than are those with low expectations. These expectations illustrate a self-fulfilling prophecy. If you expect to like your job, you will behave in such a way that those expectations will be met. Similarly, if you expect your job not to satisfy your needs, you will do things to make your expectations come true. Assume that a worker expects to earn low commissions in a sales job. The person’s negativism may come through to customers and prospective customers, thereby ensuring low customer satisfaction and low commissions.

Effective handling of abuse from customers. Customer service workers are often verbally abused by customers over such matters as products not working, merchandise returns not being acceptable, and the customer having been charged a late fee. Automated telephone-answering systems often force callers to hack through a thicket of prompts before reaching a human being. By the time a live person is reached, the customer is angry and ready to lash out at the customer service representative.[9] To prevent these oral tirades from damaging one’s job satisfaction, it is essential to use effective techniques of dealing with criticism and resolving conflict as described in Chapter 9. The section on dealing with dissatisfied customers presented later in this chapter is also important. Combating sexual harassment by customers is also important for retaining emotional equilibrium.

High job satisfaction contributes to good customer service in another important way. Employees who are satisfied with their jobs are more likely to engage in service-oriented organizational citizenship behavior. As you will recall, organizational citizenship behavior relates to going beyond your ordinary job description to help other workers and the company. A customer service worker with high organizational citizenship behavior will go beyond ordinary expectations to find ways to solve a customer problem.[10] A member of the tech support staff in a consumer electronics store volunteered to drop by a customer’s house to help him install a video recorder, even though such home visits were not required. As a result of the technician’s kindness, the man purchased a $6,000 TV receiver from the store.

Understand Your Company’s Expectations in Terms of Customer Service

A fundamental of good customer service is that effective communication with employees makes it possible. Dennis Snow, who launched the Disney Institute consulting firm, and who today heads his own communications firm, says that strong communications are the bedrock of strong customer service. Snow believes that a key element of good customer service is believing that “everything speaks.” He cites the example of a manager who urges attention to detail, but then allows a store’s displays to be dirty. The manager then sends a mixed message to the employee about the importance of details.[11]

As an employee, you need to understand how your company defines outstanding service, and the company has a responsibility to make sure you understand this definition. Managers are responsible for communicating these expectations, but the employee will often have to take the initiative to learn aobut the expectations. Among the factors you need to understand are what type of reputation the company is attempting to establish and how service levels drive that reputation. For example, the manager of a hotel that rents rooms and suites at way-below-average rates asked the owner what kind of service customers should expect. The owner said quite candidly to the manager:

Of course you are going to receive some complaints about our TVs having a limited selection of channels, and there not being any hand-out bottles of lotion in the bathroom. At the prices we charge, the guests cannot expect perfection. We provide good value for the price, but we are not a Hilton hotel.

Knowing these expectations about customer satisfaction, the manager could then deal more realistically with minor complaints by guests. The goal of the hotel was to keep guests happy at a level commensurate with the price they were paying. Or do you think guests at a discount hotel should receive the same level of service they should expect at a Ritz Carlton?

Receive Emotional Support from Coworkers and Management to Give Better Customer Service

Closely related to the idea that satisfied workers can better satisfy customers is the finding that the emotional support of coworkers often leads to providing better customer service. According to a study, the support of coworkers is even more important than supervisory support. The participants in the study were 354 customer service workers employed in service-based facilities. Customer satisfaction surveys were collected from 269 customers. The major finding was that employees who perceived their coworkers to be supportive had a higher level of commitment to their customers.

The researchers concluded that it is important to have a supportive group of coworkers by your side to help you perform service-related duties. In this study, supervisory support was less important than coworker support in terms of bringing about a strong customer service orientation. (A customer service orientation includes a desire to help customers and a willingness to act in ways that would satisfy a customer.) Another important conclusion drawn from the study was that customer satisfaction was positively associated with the strength of the service worker’s customer orientation.[12]

Research also supports the idea that the type of leadership sales representatives receive influences the type of relationships the reps build with customers. The study in question involved 300 pairs of sales managers and 1,400 sales people reporting directly to them. Sales managers who were charismatic and good at setting visions strongly affected the use of customer-oriented selling behaviors, such as building good relationships. Other key factors related to building good relationships with customers were the level of support the sales workers received from the organization and how much cohesiveness (closeness) they felt with coworkers.[13]

A similar study conducted in Taiwan with 450 hair stylists and 112 store managers found that charismatic and visionary leaders enhanced employee service. In turn, better service was associated with customers coming back to the salon.[14] You probably already knew that if your hair stylist gives good service, you will return—but now there is a quantitative study to support your belief.

Another key aspect of emotional support by management is the internal service the company provides workers. Internal service refers to how employees are served in their local units by the larger organization. An example of internal service would be supplying customer-contact employees with the information they need to be helpful. The widespread use of tablet computers to enable customer service workers to have immediate access to information such as product availability is an example of productive internal service. A study involving 619 employees and 1,973 customers in 326 retail branches of a bank demonstrated the impact of internal service. It was found that when corporate internal service was strong, the branches had a better climate for customer service. The improved climate at the branch level ultimately led to bank customer-contact personnel delivering superior service to customers.[15]

The major point here is that the organization plays an important role in your ability or willingness to build relationships with customers. A thought to take away is that if you perceive your manager to be charismatic, you are more likely to provide better customer service.

Understand Customer Needs and Put Them First

The most basic principle of selling is to identify and satisfy customer needs. One challenge is that many customers may not be able to express their needs clearly. To help identify customer needs, you may have to probe for information. For example, the associate in a camera and video store might ask, “What uses do you have in mind for a video camera?” Knowing such information will help the associate identify which camcorder will satisfy the customer’s needs.

The concept of adding value for customers is widely accepted as a measure of satisfying customer needs. If you satisfy customer needs, you are adding value for them. A person might be willing to pay $20 more per ticket to watch an athletic event if the extra $20 brought a better view and a chair instead of a backless bench. (The better view and more comfortable back add value for the spectator.) After customer needs have been identified, the focus must be on satisfying those needs rather than the needs of oneself or the company. Assume that the customer says, “The only convenient time for me to receive delivery this week would be Thursday or Friday afternoon.” The sales associate should not respond, “On Thursday and Friday our truckers prefer to make morning deliveries.” Instead, the associate should respond, “I’ll do whatever is possible to accommodate your request.”

A major contributor to identifying customer needs is to listen actively to customers. Listening can take place during conversations with customers, and “listening” can also mean absorbing information sent by e-mail and text messages. Many improvements in customer service today stem from suggestions and complaints made in blogs or social media. For example, several dollar stores have moved into upscale shopping centers because it was suggested on social media sites that so many people today “shop down” to save money.

Focus on Solving Problems, Not Just Taking Orders

Effective selling uses sales representatives to solve problems rather than merely have them taking orders. An example is the approach taken by sales representatives for the business division of ADT Corporation. Instead of focusing on the sale of security monitoring equipment, the representatives focus on what type of security threats the potential customer might be facing, including surveillance of the ADT customers.

Consultative selling is also referred to as customer-centric. A customer-centric sales process emphasizes a low-pressure environment in which the sales staff acts as consultants, offering information and explaining how the product or service can help solve a customer’s problem. The customer-centric approach is evident both at an Apple Store and a Container Store. At an Apple Store, customers can obtain free assistance from the Genius Bar. At a Container Store, sales associates are extensively trained to offer a light, informative touch.[16] Among the many problems discussed might be how to store clothing in a basement to avoid the risk of mold.

customer-centric sales process

A sales process emphasizing a low-pressure environment in which the sales staff acts as consultants, offering information and explaining how the product or service can help solve a customer’s problem.

The focus on problem solving enables sales reps to become partners in the success of their customers’ businesses. By helping the customer solve problems, the sales rep enhances the value of the supplier–customer relationship to the customer. The customer is receiving consulting services in addition to the merchandise or service being offered. In some situations, a store associate can capitalize on the same principle. If the customer appears unsure about a purchase, ask him or her which problem that the product should solve. The following scenario in a computer store illustrates this point:

Customer:

I think I would like to buy this computer. I’m pretty sure it’s the one I want. But I don’t know too much about computers other than how to use them for word processing, e-mail, forwarding articles from Web sites, and basic search.

Store associate:

I am happy you would like to purchase a computer. But could you tell me what problems you are facing that you want a computer to help you solve?

Customer:

Right now I feel I’m not capitalizing on the Internet revolution. I want to do more online, and get into digital photography so that I can send cool photos to friends all over. Friends and family members also want me to have a webcam. I also want to purchase music online, so I can walk around with an MP3 player like my friends do.

Store associate:

To solve your problem, you will need a more powerful computer than the one you are looking at. I would like you to consider another model that is about the same price as the one you have chosen. The difference is that it has the memory you need to e-mail photos and download music from a subscription service.

A major contributor to solving customer problems is to have in-depth product knowledge, whether you are selling jet engines or domestic electronic gadgets. A few years ago, Best Buy was suffering from a sales decline. A company executive acknowledged that the chain had “let its customer-service muscle atrophy.” Contributing to the problem was a perception among many customers that the store associates had limited product knowledge. The same executive then began a program of intensive sales training, including the acquisition of product knowledge.[17]

Respond Positively to Moments of Truth

An effective customer contact person performs well during situations in which a customer comes in contact with the company and forms an impression of its service. Such situations are referred to as moments of truth. If the customer experiences satisfaction or delight during a moment of truth, the customer is likely to return when the need for service arises again. A person who is frustrated or angered during a moment of truth will often not be a repeat customer. A moment of truth is an important part of customer service because what really matters in a service encounter is the customer’s perception of what occurred.[18] Visualize a couple who has just dined at an expensive restaurant as part of celebrating their anniversary. The food, wine, and music might have been magnificent, but the couple perceives the service as poor because one of them slipped on ice in the restaurant parking lot.

moments of truth

Situations in which a customer comes in contact with a company and forms an impression of its service.

You can probably visualize many moments of truth in your experiences with service. Reflect on how a store associate treated you when you asked for assistance, the instructions you received when an airplane flight was canceled, or how you were treated when you inquired about financial aid. Each business transaction has its own moment of truth, yet they all follow the same theme of a key interaction between a customer and a company employee. One way you can track moments of truth is to prepare a cycle-of-service chart, as shown in Figure 14-2. The cycle-of-service chart summarizes the moments of

cycle-of-service chart

A method of tracking the moments of truth with respect to customer service.

Figure 14-2 A Cycle-of-Service Chart for Obtaining a Car Loan at a Bank

Skill-Building Exercise 14-1

 

Moments of Truth

The class organizes into small groups to discuss what can go right versus what can go wrong during customer moments of truth. First refer to the cycle-of-service chart shown in Figure 14-2. Discuss what can go right or wrong at each moment of truth. Second, have the team develop its own cycle-of-service chart for another service, using its own experiences and imagination. After making the two analyses, discuss the usefulness of a cycle-of-service chart for improving customer satisfaction.

truth encountered by a customer during the delivery of a service.[19] To gain insight into these charts, do Skill-Building Exercise 14-1.

Be Ready to Accept Empowerment

A major strategy for improving customer service is to empower customer contact employees to resolve problems. (The previous information about the Ritz-Carlton hotels and Cadillac dealerships included the idea of empowering employees.) Empowerment refers to managers transferring, or sharing, power with lower-ranking employees. In terms of customer relations, it means pushing decision making and complaint resolution downward to employees who are in direct contact with customers. The traditional method of dealing with all but the most routine customer problems is for the customer-contact worker to refer them to the manager. Many manufacturing firms and service firms now authorize customer-contact workers to take care of customer problems within limits.

empowerment

The process of managers transferring, or sharing, power with lower-ranking employees.

Empowerment is not giving away the store, especially because limits are established to the customer-contact worker’s authority. Empowerment does involve taking a reasonable risk based on company principles to provide meaningful customer service. For empowerment to work, the company must grant decision-making latitude to employees. The employees, in turn, must be willing to accept empowerment (or decision-making authority). Imagine yourself in a customer contact position. For empowerment to work effectively, you should be able to answer affirmatively to the following statements:

I am willing to arrive at a quick decision as to whether the company or the customer is right.

I would be willing to admit to a customer that the company has made a mistake.

I would be willing to take the risk that at times I will lose money for the company on a given transaction.

I would be comfortable making an out-of-the-ordinary decision about a customer problem without consulting a manager.

Enhance Customer Service through Information Technology

Much has been said and written about how information technology has depersonalized customer service, such as having customers select from a long menu of choices on a telephone. Information technology, however, also plays an important role in recording customer preferences and individualizing service. A major contribution of information technology to enhancing customer service is to develop individualized appeals to customers. With the right software in place, you can make a direct appeal to customer preferences based on past purchases and the habits of customers with similar preferences. If you have purchased online at a major e-tailer like Amazon.com or Buy.com, you may be familiar with this technology. Two examples follow:

Computerized information tells you immediately what the customer on the phone or online has bought in the past, so you may ask a question such as, “Two years ago you installed a centralized vacuum cleaning system. Do you need another set of bags by now?”

Speaking to the person, or sending an e-mail message to the customer, you may say, “Last year you purchased a heated doghouse for your Yorkshire terrier. Our information suggests that people who own a heated doghouse are also interested in dog sweaters. Please take a moment to look at our new line of dog sweaters for the canines who appreciate warmth.”

In recent years, many banks have developed mobile apps whereby customers can deposit checks by taking photos with their smartphones. Customer satisfaction is often enhanced because the customer can deposit checks immediately without having to visit the bank or an ATM. Apps are also used for such purposes as making online purchases and investigating whether a given item is in stock. Unless you are an executive in an organization, you cannot authorize such apps; however, as a worker further down the organization, you are free to make recommendations about which new apps might enhance customer service.

Developing individualized appeals to customers is likely to be included in customer relationship management (CRM) software. The complex software is used to implement a strategy of interacting with your customers to bring them more value and to bring more profits to your firm. One of its basic purposes is to make the company easier for customers to do business with, including facilitating placing orders over the Internet. As such, the individual customer service worker would not have the authority to install such a system. Yet the individual worker can always look for ways to apply the CRM system (such as that provided by Salesforce.com or SAP) in a way that best serves the customer.

A major challenge in providing good customer service when using information technology is to preserve the human touch. Here are some hints for adding a personal touch to your electronic communications to help build customer loyalty.

Using voicemail

Vary your voice tone and inflection when leaving messages and in your greeting to avoid sounding bored or uninterested in your job and the company.

Smile while leaving your message—somehow a smile gets transmitted over the telephone wires or optic fibers!

Use voicemail to minimize “telephone tag” rather than to increase it. If your greeting specifies when you will return, callers can choose to call again or to leave a message. When you leave a message, suggest a good time to return your call. Another way to minimize telephone tag is to assure the person you are calling that you will keep trying.

Place an informative and friendly greeting (outgoing message) on your voicemail. Used effectively, a voicemail greeting will minimize the number of people irritated by not talking to a person.

When you respond to a voicemail outgoing message, leave specific, relevant information. As in the suggestions for minimizing telephone tag, be specific about why you are calling and what you want from the person called. The probability of receiving a return call increases when you leave honest and useful information. If you are selling something or asking for a favor, be honest about your intent.

When leaving your message, avoid the most common voicemail error by stating your name and telephone number clearly enough to be understood. Most recipients of a message dislike intensely listening to it several times to pick up identifying information.

The company using computerized calls (or “robocalls”) should determine if these calls are perceived as helpful or so annoying that they harm business.[20] One of the many uses of an automated calling service is to remind patients of upcoming medical and dental appointments. Some patients appreciate the reminder, whereas others slam down the phone in disgust because they expect more a more personal touch from a dental or medical office.

Using e-mail

Use the customer’s name. Begin the greeting, “Hello, Lisa King.” Most companies now greet customers by their first name only, but a minority of customers consider this practice to be rude; however, few people are likely to be offended when you use both their first and last names.

Choose a human e-mail address. Marysmith@kaset.com feels more personal than an odd sequence of numbers, letters, and dashes. To enhance your credibility and professional stature, avoid cool electronic addresses, such as Steelabs@aol.com or Angellady42@gmail.com.

Be conversational. Mention events you have shared, such as, “I enjoyed seeing you at the company meeting.”

Sign your name. Don’t neglect your signature. “Best regards, Jim Woods.”[21]

A general principle of recognizing the human aspects of information technology systems for customer service is to understand that customers might already be overloaded with instructions. Among them would be carrying out routine demands such as validating a credit card by making ten entries on the credit card company’s Web site. A key finding of the Corporate Executive Board’s multiple surveys of consumers and marketing executives is that customers want more simplicity in making decisions about purchases.

The single biggest driver of making customers more likely to follow through on purchases, buy repeatedly, and recommend the product or service to others was decision simplicity. This refers to the ease with which the customers can gather reliable information about a product or service and weigh their purchase options.[22] The speed checkout button on several online shopping sites, with Amazon.com being the leader, represents this simplicity. In short, the customer service specialist needs to sympathize with the customer having to work so hard to make a purchase. (We recognize that for some customers complex information technology instructions are natural and therefore easy to execute.)

Avoid Rudeness and Hostility toward Customers

I have reserved the most frequently violated principle of good customer service for last: Avoid being rude or hostile to customers. Although rudeness to customers is obviously a poor business practice, the problem is widespread. Rudeness by customer contact personnel is a major problem from the employer’s standpoint. A widely practiced form of rudeness is for two store associates to converse with each other about nonwork matters while a customer waits for attention. Or how about a store associate making a personal phone call while waiting on you?

Rude treatment creates more lost business than does poor product quality or high prices. Several years ago McDonald’s franchises were facing a downturn in sales. Surveys indicated that one of the problems facing McDonald’s Corporation was the indifferent and rude behavior by many frontline workers. McDonald’s then increased the training of store employees and upgraded the menu to achieve a substantial rebound in sales. Yet the problem of frontline workers being perceived as unfriendly and somewhat rude resurfaced in 2013. Company executives then renewed the emphasis on customer service, spearheaded by concerns from the newly appointed CEO, Don Thompson.[23]

Rudeness is sometimes a form of hostility, because rudeness, such as grimacing at a customer, stems from anger. Being outright hostile toward customers can be a bigger problem than rudeness, which is more subtle. The impact of service provider hostility on customer satisfaction was explored by studying 142 naturally occurring service interactions at a telephone service center of a bank. A typical interaction would be a customer phoning the bank to inquire about an account balance. (Today, such calls would only be in reference to what appeared to be inaccuracies in the online statement or the statement retrieved through the automated phone service.) Service interactions usually lasted about two minutes. Customers were later contacted to complete a quality survey about their transaction. Hostility was measured through raters’ judgment of the tone of the service providers’ voices.

A major finding of the study was that when the technical performance (e.g., providing the information needed) was low, hostility by the service provider lowered customer satisfaction considerably. When the technical performance of the service provider was good, hostility had a less negative impact on service quality.[24] When you get the information

Self-Assessment Quiz 14-2

 

Am I Being Rude?

Directions:

Following is a list of behaviors that would be interpreted as rude by many customers. Check yes if you have engaged in such behavior in your dealings with customers or if you would be likely to do so if your job involved customer contact, and check no if you would not engage in such behavior.

Yes	No
1. I talk to a coworker while serving a customer.
2. I conduct a phone conversation with someone else while serving a customer.
3. I address customers by their first names without having their permission.
4. I address customers as “You guys.”
5. I chew gum or eat candy while dealing with a customer.
6. I laugh when customers describe an agonizing problem they are having with one of our company’s products or services.
7. I minimize eye contact with customers.
8. I say the same thing to every customer, such as “Have a nice day,” in a monotone.
9. I accuse customers of attempting to cheat the company before carefully investigating the situation.
10. I hurry customers when my break time approaches.
11. I comment on an attractive customer’s appearance in a flirtatious, sexually oriented way.
12. I sometimes complain about or make fun of other customers when I am serving a customer.
13. I sometimes look and act impatient if a customer fumbles around trying to locate his or her credit card, debit card, or cash.
14. I am more attentive and friendly toward customers of my own ethnic or racial group than I am toward other customers.

Interpretation:

The more of these behaviors you have engaged in, the ruder you are and the more likely it is that you are losing potential business for your company. If you have not engaged in any of these behaviors, even when faced with a rude customer, you are an asset to your employer. You are also tolerant.

you need from a service provider, you are willing to put up with a few angry tones! The overall message supports a human relations perspective: Being hostile toward customers lowers their perception of the quality of service.

To elevate your awareness level about rudeness among customer contact personnel, do Self-Assessment Quiz 14-2.

Creating a Bond with Your Customer

Learning Objective 2

Another key perspective on achieving customer satisfaction and delight is to create a bond—or emotional relationship—with customers. The rationale is that if you form warm, constructive relationships with your customers, they will keep buying. Staying focused on the importance of customers will help provide the motivation for forming such a bond. The willingness to form a bond with the customer is part of having a strong customer orientation, defined as “a set of basic individual predispositions and an inclination to provide service, to be courteous and helpful in dealing with customers and associates.”[25] You may recall Self-Assessment Quiz 14-1 about customer orientation at the outset of the chapter. Service-oriented organizational citizenship behavior relates to the same idea of focusing on customer needs.

strong customer orientation

A set of individual predispositions and an inclination to provide service and be courteous and helpful in dealing with customers and associates.

Creating a bond is aimed at increasing sales, but it also enhances service. If the customer relies on and trusts the sales representative, the customer will perceive the service to be of high quality. Similarly, people perceive medical and legal services to be of high quality if they trust the physician or lawyer. Virtually all of the principles and techniques presented in this chapter will help form a bond with customers; however, six key principles are as follows:

Create a welcoming attitude, including a smile.

Provide exceptional service.

Show care and concern.

Make the buyer feel good.

Build a personal relationship.

Invite the customer back.

Create a Welcoming Attitude, Including a Smile

An effective starting point in creating a customer bond is to use enthusiastic expressions, including a smile, when greeting customers. Attempt to show a sincere, positive attitude that conveys to customers and prospects, “I’m here to make you happy.”[26] In addition to being an effective greeting, smiling is also a natural relationship builder and can help you bond with your customer. Smile several times at each customer meeting, even if your customer is angry at your product or service. A camcorder is a useful device for getting feedback on the quality of your smile. Practicing your smile in a mirror might feel a little less natural, but it is still helpful. Smiling at customers has a potential disadvantage, despite its general effectiveness. If your smile is too friendly and inviting, the customer might think that you want to get to know him or her outside the business relationship.

Smiling is such a key part of bonding with customers that the smiles of customer service workers have been the subject of scientific study. Twenty pairs of first-year college students who were trained as coders for the experiment observed 220 employee––consumer encounters in food/coffee services. Customers were later asked to report their mood, appraisal of service quality, and encounter satisfaction. Several of the findings were as follows: Even in brief encounters, substantial smiling by employees made customers smile in return. Smiling employees were perceived as providing quality service, and the customers felt overall satisfaction with their encounters. Smiling somehow did not affect customer mood after the encounter. One interpretation of the study is that service employees should keep smiling, but not to the point that they lack authenticity.[27] Phony smiles backfire in work and personal life.

Provide Exceptional Service (or Customer Experience)

The best-accepted axiom about keeping customers is to provide exceptional service or experience. Many successful companies contend that their competitive advantage is good service. An important part of the comeback of Burger King in the mid-2000s was a subtle way of providing top service to the company’s most profitable demographic group, males between the ages of 18 and 34 who visit the stores three to four times a week. These “Super Fans” want indulgent, fat-laden, high-caloric, tasty food. So Burger King served up the Enormous Omelet Sandwich. Greg Brenneman, who was CEO at the time, said he gives his customers what they want, not what others (such as nutritionists and physicians) think they should have.[28]

Exceptional service includes dozens of customer transactions, including prompt delivery, a fair-returns policy, accurate billing, and prompt attention to a customer’s presence. Exceptional service also includes giving customers good advice about using the product or service. As shown in Figure 14-1, providing exceptional service leads to customer delight.

Another way of understanding the importance of exceptional customer service is to study what happens when service declines. Part of the demise of the once popular Circuit City was attributed to a decline in customer service. The CEO at the time, Phillip Schoonover, decided to reduce costs by dismissing many veteran workers and replacing them with inexperienced (and lower paid) workers. With fewer knowledgeable associates in the Circuit City stores, many customers chose to make consumer electronic purchases at competitors. Circuit City eventually declared bankruptcy, partially because of declining revenues.[29]

Show Care and Concern

During contacts with the customer, the sales representative should show concern for the customer’s welfare. The rep should ask questions such as: “How have you enjoyed the optical scanner you bought awhile back?” or “How much time and money have you saved since you installed the new system?” After asking the questions, the sales rep should project a genuine interest in the answer. Microsoft is one of many companies that asks about the quality of its service, and the inquiries are pointed and specific rather than canned. For example, a small business owner responded to an inquiry about service Microsoft provided, and he complimented “Jocelyn” for pointing him in the right direction. A team manager at Microsoft wrote back: “Thank you for taking the time to commend Jocelyn on a Job Well Done. Our primary goal at Microsoft is that our customers are very satisfied with the support they receive. I am pleased to read that we have met that goal in your case.”

Make the Buyer Feel Good

A fundamental way of keeping a relationship going is to make the buyer feel good about himself or herself. In addition, the customer should be made to feel good because of having bought from the representative. Offer compliments about the customer’s appearance or about a report that specified vendor requirements clearly. In retail, an effective feel-good line is to point out how well the product fits the customer, such as “It looks like Toro made that riding mower just for you.” An effective feel-good line is: “I enjoy doing business with you.”

Sometimes giving the customer or potential customer a small treat will make that person feel good enough to take decisive action. Key chain flash drives are often used for this purpose, because the gift is practical, yet not so lavishly expensive that it would ordinarily be considered a bribe. We caution that you need good sensitivity to the situation to avoid giving a small treat that could backfire. An example might be sending Warren Buffet (usually ranked as one of the richest people in the world) a $25 gift certificate to Macy’s in order to sell to his company.

Making the buyer feel good about having made the purchase can be particularly important when selling luxury items to consumers. This helps minimize feelings of guilt for having been so extravagant. Sales consultant Jean-Marie Brücker trains store associates to sell luxury products. One training method is the macaron technique, which refers to the macaron, a sandwich-like pastry. The technique proceeds in this manner: “Madame, this timepiece [or diamond or handbag] comes from our finest workshop and has a value of $10,000. If you buy it, your children are sure to enjoy it for generations to come.” The high price is sandwiched between the product’s more romantic benefits. The idea is to sell the emotion of luxury. To further enhance the purchaser’s emotions, Brücker insists that sales associates flatter customers by such means as complimenting the customer’s own watch, even if it is made by a competitor.[30]

Build a Personal Relationship through Interaction with Customers

Interacting with customers in a personal way often enhances the customer experience, leading to repeat business. Interaction with pleasant staff members gives customers a temporary feeling of friendship that many of them value. Executives at Staybridge Suites recognize how human interaction contributes to profitability, and they use this principle as a guide for making investments in customer service. Staybridge, similar to other extended-stay hotels, provides limited services and is sparsely staffed to reduce costs. Rooms are fully cleaned only once a week, and the front desk is usually staffed by only one or two people.

Instead of providing loads of amenities, Staybridge concentrates its customer service on staff members interacting with guests. “A lot of our guests really want that personal interaction—the thing they get from home that they’d like to get from a hotel,” says Rob

Stockbyte/Getty Images

Radomski, the vice president for brand management for Staybridge Suites. The conversations between guests and staff are about non-controversial subjects such as the projects they’re working on and their family back home. Staybridge also offers “Sundowner receptions” on Tuesday, Wednesday, and Thursday evenings in the lobby. General managers are required to attend the receptions, in which guests are given a free meal and an opportunity to socialize. Radomski believes the meals are cost-effective in terms of developing customer loyalty.[31]

Another way of building relationships with large numbers of customers is to interact with them through company blogs or social media. The company representative is authorized to chat with hundreds of customers and potential customers by placing informal comments on the authorized company blog. The worker lets out tidbits of information to customers without betraying company confidences or making defamatory statements about the company; however, the blog entries are not usually as positive as advertisements, which help form bonds with the customers. Many customers post replies and swap ideas with the company rep.

Social media and company-approved blogs are widely used, as customers demand information presented in a more unvarnished way. A major advantage of social media Web sites and blogs is that they humanize large organizations, such as the company representative mentioning a favorite recipe as well as chatting about a new product.

Invite the Customer Back

The southern United States expression “Y’all come back, now!” is well suited for bonding with customers. Specific invitations to return may help increase repeat business. The more focused and individualized the invitation, the more likely it will have an impact on customer behavior. (“Y’all come back, now!” is sometimes used too indiscriminately to be effective.) Pointing out why you enjoyed doing business with the customer, and what future problems you could help with, is an effective technique. An industrial cleaning company supervisor might say, “Our crew enjoyed cleaning such a fancy office. Keep us in mind when you would like your windows to sparkle.”

Skill-Building Exercise 14-2

gives you an opportunity to practice techniques for bonding with customers.

Despite the importance of forming a bond with your customer, getting too personal can backfire. Most customers want a business relationship with the company and are not

Skill-Building Exercise 14-2
 

Bonding with Customers

Role players in this exercise will demonstrate two related techniques for bonding with customers: Show care and concern and make the buyer feel good.

Scenario 1: Show Care and Concern

A sales representative meets with two company representatives to talk about installing a new information system, including an app for employee benefits. One of the company reps is from the human resources department, and the other is from the information systems department. The sales rep will attempt to show care and concern for both company representatives during the same meeting.

Scenario 2: Make the Buyer Feel Good

A couple, played by two role players, enter a new car showroom to examine a model they have seen advertised on television. Although they are not in urgent need of a new car, they are strongly interested. The sales representative is behind quota for the month and would like to close a sale today. The rep decides to use the tactic “make the buyer feel good” to help form a bond.

For both scenarios, observers rate the role players on two dimensions, using a 1-to-5 scale from very poor (1) to very good (5). One dimension is “effective use of human relations techniques.” The second dimension is “acting ability.” A few observers might voluntarily provide feedback to the role players in terms of sharing their ratings and observations. The course instructor might also provide feedback.

looking for a personal relationship with a company representative. As Daniel Akst observes, “Most customers want value and service without contending with a salesman who insists that he wants to be like family to you. Chances are you’ve already got a family, and for most of us, one is enough.”[32]

Managing Customer Dissatisfaction

Most companies put honest effort into preventing customer dissatisfaction. In addition to employing many of the principles and techniques already cited, many companies routinely survey customers to detect problem areas that could lead to dissatisfaction. A representative survey used by a successful company in its field is shown in Figure 14-3. Despite all

Figure 14-3 A Chain Restaurant Customer Satisfaction Survey

these efforts to achieve total customer satisfaction, some customer dissatisfaction is inevitable. One reason is that mistakes in serving customers are almost inevitable; for example, a piece of equipment may have a faulty component unknown to the seller. A second reason is that some customers have a predisposition to complain. They will find something to complain about with respect to any product or service. Visualize the billions of transactions that take place every year between Walmart service personnel and customers. Inevitably, some customer somewhere is going to rant and rave about poor service no matter how hard Walmart managers and store associates try to please.

An important point to remember in dealing with dissatisfied customers is that the negative personality traits of customers can bring down your level of customer service. For example, a study conducted in two major fast-food chains in Singapore found that customers who scored high on the trait of agreeableness tended to bring out positive emotion by the service personnel. In contrast, customers who scored high on negative affectivity (being disagreeable) brought out negative emotion among customer service personnel.[33] A more recent study concluded that companies might consider customer training, such as encouraging customers to say thank you and show civil behaviors toward employees. Such behavior on the part of customers will often trigger positive emotions and behavior on the part of customer service workers.[34]

A service worker cannot change the personality traits of customers, yet a little self-management of emotion is in order. The service worker might reflect, “I won’t let this nasty customer get me down. I will do my best to do my job without overreacting.” Be careful not to fake your emotion too frequently, because it can create stress. Instead be assertive with a comment like, “I want to help you, but might you tell me what you want in a more positive way?”

The next subsections describe five approaches to handling customer dissatisfaction: deal constructively with customer complaints and anger, involve the customer in working out the problem, focus on the customer’s problems rather than his or her attitude, anticipate how to handle an unreasonable request, and maintain a realistic customer retention attitude.

Deal Constructively with Customer Complaints and Anger

In an era when customer satisfaction is so highly valued, both retail and industrial customers are likely to be vocal in their demands. When faced with an angry customer, use one or more of the following nine techniques recommended by customer satisfaction specialists.[35]

Show emotional leeadership. A major tactic for dealing with customer anger is to show emotional leadership by not reciprocating the customer’s anger. When you are the target of rage or criticism, it is difficult to remain calm. Two recommended techniques are to look at the ceiling to relax your breathing and tracing figure eights in the air with your eyes. The latter technique will often relax and refocus the eye muscles, helping you calm down. After the customer calms down, the customer service worker can then begin to work on the problem.

Acknowledge the customer’s point of view.

Make statements such as “I understand,” “I agree,” and “I’m sorry.” Assume, for example, that a customer says, “The accounts receivable department made a $1,000 overcharge on my account last month. I want this fixed right away.” You might respond, “I understand how annoying this must be for you. I’ll work on the problem right away.”

Avoid placing blame on the customer.

Suggesting that the customer is responsible for the problem intensifies the conflict. With the customer who claims to have been overcharged, refrain from saying, “Customers who keep careful account of their orders never have this problem.”

Use six magic words to defuse anger. The magic words are I understand (that this is a problem), I agree (that it needs to be solved), and I’m sorry (that this happened to you). The six magic words help communicate your empathy, which is considered vital to dealing with customer problems. For example, technical support agents at Comcast are taught that they must show empathy on every call even if they have heard the same problem for 15 consecutive calls.[36]

Apologize for the problems created by you or by your company. To recover from a breakdown in customer service, it is best to acknowledge an error immediately. Apologies are most effective when stated in the first person (such as “I created the problem” or “I’m very sorry for what happened”). The corporate “we’re sorry” sounds less sincere than when one specific person accepts responsibility for what went wrong. Professional workers at the Kaiser Permanente HMO receive training in how to apologize to patients for medical errors. Sincere apologies can significantly reduce the cost of settling lawsuits, and may even convince unhappy patients not to sue at all. A sincere apology includes a statement of what the apologizer is going to do to fix the problem.[37]

Take responsibility, act fast, and be thorough.

This technique is a simplified framework for managing customer dissatisfaction. Many automotive recalls are handled in this manner, with the automaker admitting that the malfunction is its fault, contacting customers immediately, and ensuring that highly trained technicians at the dealer work on the problem thoroughly. Part of taking responsibility is to ask, “What can I do to make this right?”

Tell the difficult customers how much you value them.

Quite often customers with problems feel unappreciated. Just before resolving the problem of a difficult customer, explain how important he or she is to your firm. You might say, “We value your business, so I want to correct this for you quickly.” (Of course, you would value the customer even more after he or she becomes less difficult.)

Follow up on the problem resolution.

Following up to see whether the resolution to the problem is satisfactory brings closure to the incident. The follow-up also helps the service deliverer know that he or she can rebound from an episode of customer dissatisfaction. One useful form of follow-up is to telephone or send an e-mail to the customer whose problem was solved. For example, a representative from the service department of an automobile dealership might telephone a customer whose new car required substantial warranty repairs. “Hello, this is Jill from Oak Automotive. We replaced your original transmission last month. How is the new transmission working?” The Microsoft example presented earlier in the chapter illustrates the use of e-mail for following up on problem resolution.
A less personal, and usually less effective, form of follow-up is to send a customer satisfaction questionnaire to the person with the problem. The questionnaire will often be interpreted as a company procedure that does not reflect specific concern about the individual’s problem.

Do your best to make sure the problem does not happen again.

The preceding steps are all valuable in resolving the complaints of angry customers. In addition, the customer needs some assurance that the problem will not happen again. Without such assurance, repeat business is at risk. The recovery paradox refers to the fact that customers will sometimes be more delighted by a skillful resolution of a problem than they are by service that was failure-free to begin with. For example, a customer might be delighted that a false roaming charge of $145 was removed from a phone bill—when the customer had never visited the country in which the charge occurred.

Involve the Customer in Working Out the Problem

Mistakes and problems in serving customers are inevitable regardless of how hard service workers strive for perfection. To minimize the perception of poor service, the customer must be involved in deciding what should be done about the problem. By being involved in the solution to the problem, the customer is more likely to accept a deviation from the service promised originally. The ideal condition is for the customer service representative and dissatisfied customer to work as partners in resolving the problem. Assume that a home-improvement company installed a terrace outside a small apartment building that deviated from the agreed-upon plan. The cost of removing the old terrace and replacing it would be prohibitive for the contractor. The contractor representative might ask the building owner what type of modifications she would suggest to make the terrace acceptable. Having made these suggestions herself, the building owner is more likely to accept the modifications than if the contractor told her which modifications to accept.

Focus on the Customer’s Problems, Not Emotions

The importance of focusing on the customer’s problem rather on his or her expressed emotions was demonstrated in a study of 228 recorded customer service calls in a medical billing operation. The calls were recorded and evaluated by raters in terms of both problem-solving techniques used by the customer service representatives and the emotions of the customers (patients who were billed).

One problem-focused strategy in the study was for agents to do everything they could to remove, modify, or change aspects of the situation negatively affecting the customer’s emotions. For example, a customer service representative (CSR) might send a replacement blood pressure monitor to a patient whose monitor was not functioning properly. The other problem-focused strategy was cognitive change, or altering the customer’s perspective regarding the problem. Also, the problem could be reframed to make it subjectively less stressful. For example, a patient might complain strongly about being charged $75 for blood presssure medication while in the hospital. The CSR might explain that the cost of the medicine includes paying for the judgment of the medical staff in choosing the right blood pressure medicine.

The emotion-focused approach involved attempting to change the caller’s emotions rather than dealing directly with the problem. For example, the customer service repreresentative might tell a joke or attempt to engage the customer in small talk to distract him or her.

The study showed that when situation modification was used by the CSR, the customer’s negative emotions were less intense, and the customer’s positive emotions were more pronounced. When cognitive reappraisal was used, the customer’s negative emotions tended to be less intense at the end of the call; however, the customer would not experience enhanced positive emotions. Another key result of the study was that emotion-focused strategies resulted in more intense, negatively expressed emotions by the patients who called in with a complaint.[38]

Anticipate How to Handle an Unreasonable Request

No matter how hard the customer-contact worker attempts to provide outstanding customer service, at some point a customer comes along with an unreasonable request—or the customer may raise an unfair objection. British Airways, an airline with a positive reputation for service, nevertheless receives many unreasonable customer requests. For example, the airline sees a wide variety of luggage-related scams. An unusually high percentage of people whose bags are lost claim that their luggage was filled with furs, tablet computers, and expensive clothing. The National Retail Federation reports that among the most frequent forms of fraudulent returns are wardrobing, in which a shopper purchases a garment for a particular event, and then returns it when the event is over (such as a wedding or a Halloween party).[39]

Recognize that the customer who makes an unreasonable demand is usually aware of the unreasonableness. The customer may not expect to be fully granted the request. Instead, the customer is bargaining by beginning with an unreasonable demand. For example, the passengers who claim to have luggage packed with valuables are probably looking for just $100 or so more than the standard allocation for lost baggage.

Sales representatives and other customer-contact workers who stand their ground with dignity and courtesy generally will not lose customers with unreasonable requests. These suggestions will help you deal with unreasonable demands while retaining the customer’s business.[40]

Let your customers retain their dignity by stating your position politely and reasonably.

Avoid arguing with an upset customer. As the adage says, “You never win an argument with a customer.”

Appeal to your customer’s sense of fair play and integrity. Explain that your intention is to do what is right and fair.

Be firm by repeating the facts of the situation, but keep your temper under control.

Accept responsibility for your decision rather than blaming company policy or your manager. Making somebody else the villain may intensify the problem.

Be willing to say “no” to a customer when it is justifiable. Saying “yes” to an outrageous demand opens the door for a series of outrageous demands.

Maintain a Realistic Customer Retention Attitude

Some customers are too unreasonable, and therefore may not be worth keeping. A realistic goal is to retain as many profitable customers as possible. At times it may be possible to retain a customer by modifying the service. For example, customers who do not pay their bills on time or at all might be changed to a prepaid service such as is done by phone companies and some Internet service providers.[41] In this way, the customers who have difficulty paying bills can still receive service.

An extreme example of a customer not worth keeping is the airline passenger who engages in air rage. Symptoms of air rage include (1) insisting on being served more alcoholic beverages than permissible by airline regulations, (2) sexually harassing or physically attacking flight attendants or other passengers, (3) refusing to fasten their seat belts, (4) using electronic gear such as smartphones and laptop computers when not allowed by regulations, (5) smoking in the lavatory, and (6) using the aisles for a lavatory.

It is best to set limits for unruly customers, and see if their behavior changes. If the customer insists on creating disturbances, it is best to suggest the customer never return. Another problem is that some customers require so much service, or demand such high discounts, that they are unprofitable to retain. Good service to these customers means there is less time available to respond to the needs of profitable customers.

Customers can be unreasonable and unruly also because they are late paying their bills or do not pay them. Such customers divert resources away from more loyal and profitable customers and clients. Kishau Rogers, the owner of Websmith Group LLC, is a case in point. She finally had to drop or avoid clients who are high-maintenance or habitually late paying their bills. Her clients are mostly retail stores or entrepreneurs. They often asked for discounts because of their tight budgets or an expanded level of service beyond the agreed-upon contract. Rogers said that terminating 5 percent of her clientele, “. . . was the best decision I’ve made, because it really reduced the level of frustration I was experiencing. It freed me up to the clients that are loyal and pay on time.” [42] In this way, the service she offered to other clients improved.

Dealing diplomatically and effectively with difficult customers requires an awareness of the types of tactics described in the previous several pages. Practice on the firing line is indispensable. The type of experience provided by

Skill-Building Exercise 14-3

is helpful.

Skill-Building Exercise 14-3
 

Dealing with Difficult Customers

The following scenarios require one person to play the role of the customer-contact worker and another person to play the difficult customer. As usual, the role players project their feelings into the role-play by imagining how they would behave in the situation.

Scenario 1:

One person is a store associate in a high-fashion women’s clothing store. A woman who bought a $2,000 gown the previous week brings back the gown today. She claims that she is returning the gown because it doesn’t fit comfortably. The store associate strongly suspects the woman bought the gown originally with the intent of wearing it for a special occasion and then returning it.

Scenario 2:

One person plays the role of a customer service representative in a consumer electronics store. Another person plays the role of a customer who purchased a $3,500 giant-screen television receiver three months ago. He comes up to the service rep’s counter ranting about the store’s ineptitude. The customer claims that the TV has broken down three times. After the first repair, the TV worked for two weeks and then broke down again. The second repair lasted two weeks, only for the TV to break down during a Super Bowl party at his house. The customer is red in the face and shouting loudly. The service rep wants to resolve the customer’s problem and prevent him from bad-mouthing the store.

Concept Review and Reinforcement
Key Terms

customer-centric sales process 334

moments of truth 335

cycle-of-service chart 335

empowerment 336

strong customer orientation 339

Summary

Customer satisfaction skills are necessary for all workers in contact with customers. Internal customers must also be taken into consideration. Employees who can satisfy customers contribute heavily to profits. Dissatisfied customers, especially those with an unresolved problem, are likely to tell many people about their dissatisfaction.

Ten key principles for satisfying and delighting customers are as follows:

Strive for high levels of customer satisfaction.

Be satisfied so that you can provide better customer service. (Some of your own attitudes, such as optimism and flexibility, influence your job satisfaction.)

Understand your company’s expectation in terms of customer service.

Receive emotional support from coworkers and management so that you can give better customer service.

Understand customer needs, and put them first.

Focus on solving problems, not just taking orders.

Respond positively to moments of truth (points at which the customer forms an impression of company service).

Be ready to accept empowerment. (Being empowered enables you to solve customer problems.)

Enhance customer service through information technology.

Avoid rudeness and hostility toward customers. (Rude and hostile treatment of customers creates lost business.)

Another key perspective on achieving customer satisfaction and delight is to create a bond—or emotional relationship—with customers. Almost any act of good customer service helps create a bond, but six principles are highlighted here:

Create a welcoming attitude, including a smile.

Provide exceptional service (or customer experience).

Show care and concern.
Make the buyer feel good.

Build a personal relationship through interaction with customers.

Invite the customer back.

Despite the best efforts on the company’s part, some customer dissatisfaction is inevitable. Also, some customers have a predisposition to complain. One approach to managing customer dissatisfaction is to deal constructively with customer complaints and anger. Tactics for achieving this end include the following:

Show emotional leadership.

Acknowledge the customer’s point of view.
Avoid placing blame on the customer.

Use the six magic words to defuse anger. (These words help communicate empathy.)

Apologize for the problem created by you or by your company.

Take responsibility, act fast, and be thorough.
Tell the difficult customers how much you value them.
Follow up on the problem resolution.
Do your best to make sure the problem does not happen again.

Another approach to managing customer dissatisfaction is to involve the customer in working out the problem. Focus on the customer-problem rather than his or her emotions. The customer contact worker must sometimes deal with an unreasonable request. Remember that the customer probably recognizes that he or she is being unreasonable. Do not argue with an unreasonable customer, but at times you must say “no.” Maintain a realistic customer retention attitude, meaning that as hard as you try to please, some customers are not worth keeping. Customers who delay paying bills or who do not pay divert resources away from more loyal and profitable customers.

Questions for Discussion and Review

Suppose your employer provides a service that customers desperately need, such as payday loans or prescription medication. Explain whether it would still be necessary to apply principles of customer satisfaction.

Assume that a customer at one restaurant of a well-known restaurant chain is served stale bread. How fair would it be for that customer to post an angry tweet about the incident?

For what reason is a satisfied employee more likely to provide better customer service?

A couple walks into the showroom of a home developer with hundreds of homes for sale and asks about what type of home they should purchase. Describe how you might identify customer needs in this situation.

Describe several customer moments of truth you have experienced this week. What made you classify them as moments of truth?

What is your opinion of the impact of automated voice systems on customer service? (We refer to the use of computerized voices to replace interaction with a live company representative.) Offer at least two specifics in your answer.

See if you can find an example of providing a customer so much information that it is difficult for the customer to make the purchase. How might the buying process be simplified?

If it is really true that industrial customers tend to purchase from people they like, how might a sales representative capitalize on this fact using a couple of ideas from this chapter?

Imagine yourself as a marketing and sales executive at a company that sold to other business firms. What would a large customer have to do before you took the initiative to end your relationship with that customer?

How effective is the principle “the customer is always right” when dealing with dissatisfied customers?

The Web Corner

http://www.csmassociation.org/

(Customer Satisfaction Measurement Association)

http://www.customersatisfaction.com

(Improving customer satisfaction and retention–includes video)

Home

(Improving your customer service–includes video)

Internet Skill Builder: Building Customer Relationships
An axiom of business is that customer relationships are essential. Direct your Internet search for this assignment toward finding customer-relationship building suggestions that can be converted into specific interpersonal skills, such as making a phone call to see how things are going. An example of a Web site that offers concrete suggestions for building customer relationships related to interpersonal skills is www.sideroad.com. Walk away from this exercise with a couple of ideas you might put into practice in dealing with customers.

Developing Your Human Relations Skills
 

Interpersonal Relations Case 14.1

Pamela Pushes the “Wow” Experience

Pamela is a sales representative at an automotive dealership in Fort Lauderdale, Florida, that sells American-made luxury automobiles and SUVs. The dealership also sells used vehicles of many makes and models. The manufacturer the dealership represents has sponsored training programs for sales managers and sales representatives, with the intent of making the customer experience more inviting. The training includes providing a “Wow” experience to customers who enter the showroom.

The sales representatives were given some general guidelines on providing the “Wow” experience, or exceptional service, that the vehicle purchaser or potential purchaser will remember. Pamela represented her fellow sales reps when she asked the trainer to provide a list of about six routines that lead to a “Wow” experience for most customers. The trainer emphasized that a “Wow” experience should be spontaneous and geared to the moment, rather than scripted in advance. The trainer also emphasized that what makes for a “Wow” experience is often in the eye of the beholder (based on the customer’s perception).

Pamela said she understood the trainer’s guidelines, and that she liked what she heard. During the next several weeks, Pamela delivered what she considered to be “Wow” experiences as follows:

A young man in hip-hop-style clothing was carefully looking at an expensive model SUV and asked about the value of his trade-in and what the monthly payments would be. To establish rapport with the likely customer, Pamela broke out into a rap song about the luxury model in question. The customer prospect smiled a little, despite a perplexed expression.

An older woman was pondering the purchase of a full-size sedan, but she expressed concern about whether her husband who used two canes could easily get in and out of the back seat. Pamela said that if the woman went home and brought her husband back, she would give him one hour of training on how to enter and exit the vehicle, assisted by his canes. The customer prospect smiled and said, “What a lovely offer. You are so sweet. I will be back this afternoon with Henry (her husband).”

A couple in business attire was looking warmly at a convertible and expressing interest in negotiating a price. The man said, “We like what we see, but we haven’t had lunch. How late are you open this evening? Or maybe we will come back tomorrow.” Pamela took the initiative to say, “Stay put, folks. There is a Taco Bell right across the street. Tell me what you want from Taco Bell, and I will get the lunch for you and bring it back. You can look over the beautiful convertible while you are waiting for me for less than fifteen minutes.” The woman said, “That’s asking too much. We can come back tonight.”

Case Questions

What is your evaluation of the “Wow” experiences that Pamela is providing?

What suggestions might you offer Pamela about her approach to customer service?

Interpersonal Skills Role-Play

Pamela Applies the “Wow” Experience

Case 14.1 provides the three scenarios for this role-play. In each scenario one student plays the role of Pamela, who hopes to provide the “Wow” experience to the customer contemplating the purchase of a vehicle. Other students play the role of the customers. For each of the three scenarios, the students who play the role can improvise the reaction to the proposed “Wow” experience that they choose. Feedback should be directed at how effective Pamela is in delivering a “Wow” experience.

Interpersonal Relations Case 14.2

The Rumpled Claims Forms

Rob is the supervisor of scanning operations at Insurance Resource, a firm that specializes in digitizing handwritten insurance claims. The client companies mail their insurance claims in batches to Insurance Resource for processing into a digital format. In addition to scanning the handwritten documents, Insurance Resource also creates computer files for clients, and forwards the claims to the appropriate insurance company for reimbursement.

With profit margins being small in insurance claims processing, the document scanning technicians must work rapidly as well as processing a large volume of claims. One day when Rob asked Wendy to improve her speed, he received a response that he had heard many times in the past.

“How can I work fast when so many of these claims are rumpled, crumpled, and incomplete? We get some forms with missing names and addresses. The other scanning technicians say the same thing. We even have to stop to remove staples from the forms. If we are not careful, the staples get caught in the scanners, and then we have to call tech support to de-jam the machine.

“My speed problem is that some of our clients are just stupid. The speed problem is theirs, not ours. I know that we can send the documents with missing information to our research department, but that takes time from my scanning.”

Rob replied, “Wendy, you have a point. Some of our clients make work difficult for us, but they are still valued customers. If we put too much pressure on them to give us claims forms that are easier to scan, they might look for another outsourcing firm.

“I’m going to get with Kim (the vice president of operations), and see if we can get a task force set up to work on this problem of difficult-to-scan documents right away.”

Case Questions

In what way does this case deal with a customer service problem?

What steps do you recommend that Insurance Resource take to get clients to send the company documents that are easier to manage?

What suggestions can you offer Wendy and the other scanning technicians to process their work more effectively for now?

Source: Case researched by Stefanie Donaldson, Rochester, New York.

References

Quoted in Mark Hendricks, “Paying in Kind: How Can You Ensure Employees Give Service with a Smile?” Entrepreneur, February 2006, p. 82.

Quoted in Ryan Chittum, “Price Points: Good Customer Service Costs Money. Some Expenses are Worth It—and Some Aren’t,” The Wall Street Journal, October 30, 2006, p. R7.

Paul R. Timm, Customer Service: Career Success Through Customer Satisfaction, 2nd ed. (Prentice Hall, 2001), p. 8; Anthony Heyes and Sandeep Kapur, “Angry Customers, e-word of Mouth and Incentives for Quality Provision,” Journal of Economic Behavior & Organization, December 2012, pp. 813–828.

Carmine Gallo, “Wow Your Customers the Ritz-Carlton Way,” Executive Leadership, April 2011, p. 4.

Jeff Green and David Welch, “Cadillac Starts Putting on the Ritz,” Bloomberg Businessweek, June 21–June 27, 2010, p. 24.

Quoted in Deborah Alexander, “Keep Tops Intact, Workers Urge,” Rochester, New York, Democrat and Chronicle, December 1, 2006, p. 9D.

Quoted in Lin Grensing-Pophal, “Building Service with a Smile,” HR Magazine, November 2006, p. 86.

Denise Mann, “Optimism May Be Partly in Your Genes,” WebMD Health News (http://www.webmd.com), September 16, 2011, p. 1.

Sue Shellenbarger, “Domino Effect: The Unintended Results of Telling Off Customer-Service Staff,” The Wall Street Journal, February 5, 2004, p. D1.

Lance A. Bettencourt, Kevin P. Gwinner, and Matthew L. Meuter, “A Comparison of Attitude, Personality, and Knowledge Predictors of Service-Oriented Organizational Citizenship Behavior,” Journal of Applied Psychology, February 2001, pp. 29–41.

Philip Mann, “The Role of Communications in Customer Service: A Talk with Dennis Snow,” NY Workplace Communications Examiner (http://www.examiner.com/), September 20, 2010, pp. 1–4.

Alex M. Susskind, K. Michele Kacmar, and Carl P. Borchgrevink, “Customer Service Providers’ Attitudes Relating to Customer Service and Customer Satisfaction in the Customer-Server Exchange,” Journal of Applied Psychology, February 2003, pp. 179–187.

Craig A. Martin and Alan J. Bush, “Psychological Climate, Empowerment, and Customer-Oriented Selling: An Analysis of the Sales Manager-Salesperson Dyad,” Journal of the Academy of Marketing Science, No. 3, 2006, pp. 419–438.

Hui Lao and Aichia Chuang, “Transforming Service Employees and Climate: A Multilevel, Multisource Examination of Transformational Leadership in Building Long-Term Service Relationships,” Journal of Applied Psychology, July 2007, pp. 1006–1019.

Karen Holcombe Ehrart, L. A. Witt, Benjamin Schneider, and Sara Jansen Perry, “Service Employees Give as They Get: Internal Service as a Moderator of the Service Climate-Service Outcomes,” Journal of Applied Psychology, March 2011, pp. 423–431.

Jeremy Quittner, “The Art of the Soft Sell,” Business Week Small Biz, October/November 2009, p. 50.

Ann Zimmerman, “Can This Former Clerk Save Best Buy?” The Wall Street Journal, April 20, 2013, pp. B1, B6.

Richard B. Chase and Sriram Dasu, “Want to Perfect Your Company’s Service? Use Behavioral Science,” Harvard Business Review, June 2001, pp. 78–84.

Karl Abrecht, The Only Thing That Matters (New York: HarperCollins, 1992).

Ken Belson, “For Half a Cent, a Call That Informs, and Annoys,” The New York Times (http://nytimes.com), July 16, 2008, pp. 1–3.

Adapted from “For Extraordinary Service,” The Customer Service Professional, October 1997, p. 3.

Patrick Spenner and Karen Freeman, “To Keep Your Customers, Keep It Simple,” Harvard Business Review, May 2012, p. 110.

Julie Jargon, “McDonalds’s Says ‘Service is Broken,’ Tackles, Repair,” The Wall Street Journal. April 11, 2013, p. B1, B2.

Lorna Ducet, “Service Provider Hostility and Service Quality,” Academy of Management Journal, October 2004, pp. 761–771.

D. J. Cran, “Towards the Validation of the Service Orientation Construct,” The Service Industries Journal, vol. 14, 1994, p. 36.

Dot Yandle, “Helping Your Employees Give Customers What They Want,” Success Workshop (a supplement to Manager’s Edge), November 1998, p. 1.

Patricia B. Barger and Alicia A. Grandey, “Service with a Smile and Encounter Satisfaction: Emotional Contagion and Appraisal Mechanisms,” Academy of Management Journal, December 2006, pp. 1229–1238.

Steven Gray, “Flipping Burger King,” The Wall Street Journal, April 26, 2005, B1.

Miguel Bustillo and Ann Zimmerman, “Circuit City’s Chief Executive Is Ousted,” The Wall Street Journal, September 23, 2008, p. B1; Rachel Feintzeig, “Lessons from the Death of Circuit City,” http://blogs.wsj.com, October 25, 2012, p. 1.

Christina Binkley, “How to Sell a $35,000 Watch in a Recession,” The Wall Street Journal, July 23, 2009. p. D6.

Quoted in Ryan Chittum, “Price Points: Good Customer Service Costs Money: Some Expenses Are Worth It,” The Wall Street Journal, October 30, 2006, p. R7.

Daniel Akst, book review of Hug Your Customers by Jack Mitchell (Hyperion, 2003), appearing in The Wall Street Journal, November 14, 2003, p. W9.

Hwee Hoon Tan, Maw Der Foo, and Min Hui Kwek, “The Effects of Customer Personality Traits on the Display of Positive Emotions,” Academy of Management Journal, April 2004, pp. 287–296.

Eugene Kim and David J. Yoon, “Why Does Service With a Smile Make Employees Happy?” Journal of Applied Psychology, September 2012, p. 1065.

Sue Shellenbarger, “How to Keep Your Cool in Angry Times,” The Wall Street Journal, September 22, 2010, p. D3; Chip R. Bell and Ron Zemke, “Service Breakdown—The Road to Recovery,” in Service Wisdom: Creating and Maintaining the Customer Service Edge (Minneapolis, MN: Lakewood Books, 1992); Michel, Bowen, and Johnson, “Making the Most of Customer Complaints,” pp. R4, R11; Louise Lee, “Oops,” Business Week Small Biz, August/September 2009, p. 22.

Jon Yates, “Tuning In to Comcast’s Customer Service,” Chicago Tribune, November 15, 2009, Section 2, p. 1.

Patrick J. Kiger, “The Art of the Apology,” Workforce Management, October 2004, p. 62.

Laura M. Little, Don Kluemper, Debra L. Nelson, and Andrew Ward, “More than Happy to Help? Customer-Focused Emotion Management Strategies,” Personnel Psychology, Number 1, 2013, pp. 261–286.

David Segal, “Appalling Behavior, This Time by Customers,” The New York Times (http://www.nytimes.com), July 8, 2010, pp. 1–4.

Matthew Dixon, Karen Freeman, and Nicholas Toman, “Stop Trying to Delight Your Customers,” Harvard Business Review, July–August 2010, pp. 116–122.

Vikas Mittal, Matthew Sarkees, and Feisal Murshed, “The Right Way to Manage Unprofitable Customers,” Harvard Business Review, April 2008, p. 102.

Raymond Flandez, “It Just Isn’t Working? Some File for Customer Divorce,” The Wall Street Journal, November 10, 2009, p. B7.