Service Quality and Management Report: Canary Wharf Hotel Analysis

This report provides a comprehensive analysis of quality management practices at the Canary Wharf Hotel, a 3-star establishment in East London. It begins with an introduction to total quality management and its importance in the competitive hospitality industry, emphasizing the need for hotels to focus on service quality. The report then delves into the significance of quality management, exploring its impact on customer satisfaction, business development, and profitability. It discusses historical perspectives on service quality and various schools of thought, including the gap model. The report also examines methods for measuring and managing service quality, including service quality dimensions, customer satisfaction measurement, and the benefits of quality management for both the company and its customers. It explores SERVQUAL as a measurement tool, detailing its dimensions of tangibility, reliability, responsiveness, assurance, and empathy. The report concludes by proposing a customer feedback system framework to monitor and continually improve service quality at the Canary Wharf Hotel, offering practical recommendations for enhancing customer satisfaction and overall business performance. The report is structured into three parts, covering the importance of quality management, its impact on the hotel, and a proposed customer feedback system framework.

Quality management
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Table of Contents
Introduction......................................................................................................................................3
PART 1............................................................................................................................................3
Importance of quality management.................................................................................................4
Measuring and managing services quality?.....................................................................................5
Quality management and measurement methods............................................................................6
Part 2..............................................................................................................................................11
Service quality impact on The Canary Wharf Hotel......................................................................11
Service quality (impact of each one of the them and recommendation)........................................11
Part 3..............................................................................................................................................13
Customer feedback system framework..........................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
Total quality management is known as incessant effort of management along with the
employees of a specific firm in respect to improve the quality of products and services. for an
organisation it is important to focus on quality of their products and services instead of quantity
to survive the fierce competition (Hazen, Boone and Jones-Farmer, 2014.) There are different
tools which can be used by firm to measure the quality of services and improve them
accordingly. The present report is based on The Canary Wharf hotel which is 3-star hotel and its
operate business in Canary Wharf, East London. It is determined that customers complaints are
increasing related to the services which are delivered to them. The present report will provide the
importance of managing and measuring service Quality. Along with this, the impact this will
have on the front-line employees, their engagement and also managerial implications will be
assessed. Apart from this, Customer Feedback System (CFS) framework that the organisation
can utilise to monitor and continually improve service quality will be produced.
PART 1
According to the given scenario, The Canary Wharf hotel is a 3-star hotel which is
opened in East London since 2000 AD. The hotel has 100 modern stylish 1nsuite rooms which
include standard, executive and premier. There are various other facilities which are included
like gym, spa and swimming pool, etc (Hazen, Boone and Jones-Farmer, 2014.). The hotel
provide facilities to both business and leisure guests. Along with this the, at present they have
refurbishments and updated the reception area, restaurant and rooms. With the increase in profit,
customer complaints are also enhanced within period. In the last six months, there are various
issues within the hotel which are highlighted such as large number of facilities but poor service,
customer waiting time increased, front desk was so busy due to which customer are facing
issues. After carrying out audit, The Canary Wharf hotel has hired quality management
consultant in respect to improve their current service delivery. To improve quality services, The
Canary Wharf hotel is required to understand the significance of quality management which will
help in bringing effective improvement (Kern, 2014.). .
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Importance of quality management
Quality management leads to make sure that superior quality products and services are
delivered to customers. The firm can easily measure the quality of product’s reliability,
performance and durability. Quality is considered as an essential parameter which helps in
differentiating the firm from its competitors (Mok, Sparks and Kadampully, 2013). Along with
this, quality management also helps in making sure that changes take place in the system and
process which results in superior quality products and services. With the help of quality
management, company can easily make and deliver high quality products that help in meeting
needs and wants of customers. Canary Wharf Hotel is operating their business in service sector
where quality plays a significant role. It assists in increasing the satisfaction level of customers.
Service quality in hospitality sector has become one of the most essential aspects to gain
sustainable competitive advantages and customer’s confidence in the highly competitive
marketplace (Sallis, 2014).
 History of service quality
The origin of quality management is undoubtedly connected with the production and quality of
products. It emphasises on their own production process and technical control of inputs and
outputs. There are various approaches of quality management which significantly enforced in the
automotive and aerospace industries. It is because; product should be of higher degree reliability.
Service quality is beginning in the early 1920’s which is a movement of inspection on products
to make sure that whether they can meet the demand of customers or not (Kärnä, 2014).
 Different schools of thought
According to the view of author quality of services is refer to a network which has ability
to accomplish maximum bandwidth and deal with other network performance elements such as
latency, error rate and uptime. As per the gap model provided by Persuaman and Zeithaml there
exists a gap between the customer perception and customer expectation. This gap is known as the
customer gap. It can be said that customer expectation is known as the standard against that the
perceived services which are checked to measure service quality. After measuring any gap is
noticed between the received services and expected services then it is important to reduce the
gap so that high quality services can be delivered (Talib, Rahman and Qureshi, 2013).
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Figure 1 Gap between expected and perceived service
Measuring and managing services quality?
The Canary Wharf hotel is required to measure quality of the services so that they can
easily understand requirement of improvements and fulfilled customers requirement. Below
provided are different ways that can help in measuring and managing the service quality:
 Service quality dimensions
Service quality is consisting of three dimensions that are physical facilities, staff and
materials (Mitra, 2016). It is segregated into two factors that are functional quality and technical
quality. Company can measure performance of an individual because it leads to refer the
primary characteristics. In the measurement quality lead to include measurable qualities in
which the firm can be classified on the basis of objective and individual feature of performance.
Features are known as the second dimension of quality which are normally a second aspect of
service quality dimension. Further, features lead to include both objective and measurable
attributes. Customer satisfaction:
To measure customer satisfaction is not easy because of various reasons. To count
customer satisfaction on the basis of their feedback is not case because most of the people prefer
to be quite when they are satisfied. Along with this, there are many people who do not think to
contact customers and some of them pass their complaints (Ashrafi and Schwarz, 2013).
Therefore, it can be said that requirements for customer satisfaction is not unique but it not easy
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to count. To make a healthy relationship with customers is the strategy for measuring customer
satisfaction and make sure that success is determined. Different ways to measure customer
satisfaction are survey customers, understand expectations, assessing the competition, etc. Benefits to both:
Service quality lead to provide benefits to both company as well as customers in respect to carry
out business activities in an effective manner. There are wide range of services which are offered
to customers and they charged some cost (Yu, Selvaraj and Kaminker, 2015). It is important for
the firm to deliver services as per the requirement of client which help in increasing customer
base, sales and profitability. At the time when company not able to deliver quality services then Profitability:
Improved quality leads to put a positive impact on the performance of business. At the
time when company started earning profit, it shows that customers are satisfied with their
services. Customers are prepared to pay more for improving services where that quality leads to
provide customer satisfaction and perceived value. Therefore, it can be said that company should
focus on improving their services to gain profit (Saeidi, Sofian and Saaeidi, 2015).
.  Business development and expansion/success/failure:
Firm expansion and success is depended on the customers satisfaction and it can be only
accomplished through delivering quality products and services (Agnihotri, Dingus and Krush,
2016). It is important for company to make improvement in their products and services as per the
customers requirements is considered as important factor for the success of the business. Mostly
customer prefer to visit those company again and again who can fulfil their needs and wants on
time. Further, it is analysed that companies who failed to satisfied their customer they can suffer
from loss.
Quality management and measurement methods
Management
 Service design: Service design is known as the activity of planning and organising
people, communication, infrastructure in respect to improve quality services. At the tine
of designing services it is important for company to ensure that it meet all the expectation
of customers. There are many services which are required to be provided to the customers
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and they should meet all the standard of quality while delivering which help in increasing
customer satisfaction level.
 Encounter: All the issue which are faced while delivering services is important to
encounter on time. It will help in delivering high quality services to customers. further
issues related to the reliability, tangibility, responsiveness can be improved which assist
in delivering high quality services
Measurements
 SERVQUAL
SERVQUAL is considered as an approach which is mostly used to measure service
quality. There are various dimensions of service quality which can be measured such as
reliability, communication, credibility, security, etc. It can be said that firm that wants to survive
in a competitive environment need to make sure that quality of products and services which are
supply in the market. There are only few firms who provide services and for most of the
companies, it is an important issue (McGinnis and Ostrom, 2014). SERVQUAL instruments are
mostly used in respect to measure quality of services and make improvements. Here below are
provided five dimensions of service quality which can be measured with the help of
SERVQUAL instruments.
Tangibility: Services are tangible, customers make their perceptions of service quality
through comparing tangible linked with provided services. it is known as the appearance of
physical facilities, equipment’s, communication material, personnel etc. In survey, company can
include questionnaire which is basically designed for the customers who can respond the to the
questions which are asked related to the physical layout and the facilities provided to them.
Reliability: Reliability is known as the ability to provide services which are promised and
dependently and accurately (Quester, Romaniuk and Wilkinson, 2015). Thus, it can be said that
firm deliver services as per the promised about the services. mostly customer prefer to take
services from those companies who promise them regarding quality and fulfil them.
Responsiveness: It is considered as willingness to assist customers and deliver promoted
services. this dimension lead to focus on alternatives and promptness while dealing with
customer request (Wei, Qiu and Karimi, 2017). It can be communicated to the customers by
length of time for which they required to wait.
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Assurance: it is considered as trust and confidence. It is defined as employee’s
knowledge of courtesy and the ability of the company to win trust of customers. it is important
for the firm to build trust of customers and ensure services deliver to them accordingly.
Empathy: It means to provide care to individual attentions (Zou, Xiao and Jia, 2018).
. There are few companies in which it is important to provide attention to show that company
care their needs and fulfil then on time.
FEEDBACKS
To provide high quality services is one of the major concern of the company. To know
that company is delivering quality services to customers they can consider feedback method. One
of the simplest way of taking feedback from customers is to ask from them through survey, in
this list of questions can be prepared related to the products, services etc. It usually involves
different way of working. Along with this, company can follow up their customers after
providing services. it is another way of getting feedback in which company can contact with its
customers after delivering services. It will help in understanding issues which customer faced
while staying in hotel etc (Wang, Wan and Zhang, 2016). Through monitoring social presence
company can easily understand likes and dislikes of customers. Hence it can be said that through
preforming regular customer satisfaction survey company can easily gauge level of satisfaction.
 STANDARDS
At time of offering services to customer it is important to ensure that customer
satisfaction level do not get reduced. It is important to keep consistency in delivering quality
time after time. Standard lead to offer a superb set of tools to accomplish consistent quality.
Standard can assist in planning, designing and deliver quality services which can be work from
launch. Further it assists in implant quality process, policies and procedures through which risk
can be reduced. Further service standard can be defined basically in 3 terms that are timeliness,
accuracy and appropriateness (Cheng, Chien and Huang, 2017). Mainly customer expects
accurate information and right deliveries. If customers are misled by employees then it leads to
highly dissatisfy them from The Canary Wharf Hotel. Further all the services should be deliver
on time to customers as waiting can make them disappoint from the company.
 TQM:
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It is considered as management approach which described the long-term success through
customer satisfaction. In this all members of the firm participate in improve process. There are
total eight principle of total quality management that are as follows:
Customer focused: At the time of using total quality management it is important to recognise
that only customers can determine the level of quality (Wei, Qiu and Karimi, 2017). Providing
training, integrating quality into the design process, only customer can say that they are
worthwhile or not.
Employee involvement: Involvement of the employees assist in develop the product and services
and determining the quality of these products. it is important for company to make sure that
culture is created which help employees in involving with the firm and its products and services
(Zou, Xiao and Jia, 2018).
Process centred: it is considered as fundamental part of the total quality management. It is
known as the thinking, guiding and people support these all processes which are based on
objectives and they are linked with the mission, vision and strategy (McGinnis and Ostrom,
2014).
Integrated system: For an organisation it is important to have integrated firm system which can
be help in improving the company quality system for developing understanding and handling the
quality of the products and services of the firm (Quester, Romaniuk and Wilkinson, 2015).
Strategic and systematic approach: It is one of the critical part of the management of quality
because strategic and systematic approach help in accomplishing the vision, mission and goals of
the firm. Further it leads to include the formulation of a strategic plan which lead to integrates
quality as a core component (Akbari and Darabi, 2015).
Continual improvement: Total quality management is known as the continuous process of
improvement. It assists company to be both analytical and creative in respect to identify ways to
become more competitive and more well-organized while meeting stakeholder’s expectation.
Fact based decision making: TQM needed a firm continually gathering and analysing of
information in respect to improve accuracy of decision (Peprah and Atarah, 2014).
Communication: at the time of organisational change communication play important role and it
is considered as day to day operations, effective communication is important in respect to
maintain morale and to motivate employees at different levels (Teshnizi, Aghamolaei and
Ghani, 2018).
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Hence, it is recommended that The Canary Wharf Hotel can used SERVQUAL model in
respect to measure the quality of its products and services. Along with this, feedback system will
also help in making improvement in products and services and way customer treats employees.
However, there are some gap in SERVQUAL model that are as follows
GAP 1: Do not identify customers expectation: Gap 1 is known as the difference between
customer expectation of services and company specially management, understanding of those
expectations. It can be said that lack of upward communication can affect quality services.
Frontline employees mostly know the way to deal with customer but management do not contact
with frontline employees and they do not understand things which are known by them. Along
with this lack of appropriate strategies to hold customers for longer period of time (Ali, and
Raza, 2017).
GAP 2: In appropriate selection of service design and standard: One of the recurring
challenge in The Canary Wharf Hotel is known as difficulty of translating customer expectation
into service quality specification. there are various factors which lead to deliver ineffective
services. Lack of employee’s commitment lead to impact the quality services delivered to
customers (Aquilani, Silvestri and Gatti, 2017).
GAP 3: Not delivering the service standards: It is known as the gap which is left between the
development of customer driven or service standard and the services which provided by the
workers in the firm. Due to lack reward and less wages employees are not motivated and they
provide inappropriate services to customers. Hence factors which lead to influence gap 3 are the
poor employees job fit. It is important for company to ensure that employees are highly
motivated toward the work and always ready to deliver quality services to the customers (Sallis,
2014).
GAP 4: Not matching performance to promises: It is important for company to make sure that
all external message is aligned with the firm objectives. Further, employee’s performance should
be up to the customer expectation which can help in meeting the needs and wants of customers.
GAP 5: Not delivering the service as being perceived: This gap is exposes mostly in weakness
of employee’s performance (Ross, 2017). Most of the firm with delivery gap easily find out the
services which is needed to support customers but they failed to provide effective training to
employees. Due to this reason employees are not able to provide high quality services to
customers. in delivery gap few of the problem which is identified are lack of knowledge about
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products and services among employees. Further, lack of cohesive team and the inability to
deliver services.
Figure 2: SERVQUAL gap model
Part 2
Service quality impact on The Canary Wharf Hotel
Service quality is considered as wider ingredients in a company’s ability in respect to
maintain profitability and continued success. If company get failed to deliver quality services
than it can directly impact the sales and profitability of the firm. One of the most important
element of service quality is customer satisfaction. It is also known as considerable strategic
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weapons for the firm. According to the given scenario, Canary Wharf Hotel lead to attract both
the business and leisure guests and they can easily refurbished restaurants and rooms areas.
Further, trip advisor reviews help in highlighting the different issues within the hotel. It is
identified that most of the customers stated that there are various facilities but services are poor.
Along with this, most of the customer waited for long time while check-in. Most of the
employees are not attentive at the time of working. Employees avoided customers issues and
show no efforts in resolving their issues. After reviewing it is analysed that employees are not
highly motivated toward their work due to which services are getting hampered (Cooper, 2016.).
There are lots of issues faced by employees such as low wages, no reward scheme which make
them feel that they are not valued by management. Further, service quality is also considered as
an intermediary aspect at the time of evaluating previous and current perception. While,
delivering quality services it is important for company to keep in mind different factors such as
needs and wants of customers etc. Front desk manager of the hotel was so busy due to which
customers avoided visiting in their hotel. The management team only came to know about
quality of services through the feedback leaved by customers on Facebook’s page. Lack of
training facility was also considered as one of the factor that impact the quality of services
(Hazen, Boone and Jones-Farmer, 2014.).. The impact of services quality affects the customers
satisfaction, company profitability, customer perception and on brand image. Hence, ineffective
management, less employee’s involvement has impact the quality of services of the firm. Due to
this reason customers satisfaction level is going down and company is losing its image in market.
Service quality (impact of each one of the them and recommendation)
Employees empowerment
Employee empowerment is known as the process of enabling or authorising an individual
to think and behave, take action and control work and decision in an effective way (Fryer,
Antony and Douglas, 2015. Employee empowerment play important role it provides lots of
benefits to the firm such as self determining and self managing at work. It leads to bring greater
satisfaction on the customers too especially at the time when customers are facing lots of
problems. It is important for employees of Canary Wharf Hotel to be feel valued which help in
increasing their motivation level. At the time when employees work under the pressure then it
leads to affect the quality of services. Empowerment is known as effective tools for the managers
to learn the way to minimise the control and which make them feel that employees to take all the
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