Typology Of Organisation And Relation To Servicescape Complexity Business Essay Example
This essay critically examines the strategic role that physical signs play in a holistic environment, known as the servicescape. It explores how the combination of environmental dimensions impacts both clients and employees, and how their behavior can be influenced by cognitive, emotional, and physiological responses. The essay is a practical reflection on Ms. Mary Jo Bitner's article, which connects the combination of environmental dimensions to individuals' internal responses, behavior, and the overall impact on organizational goals.
The author of this essay visited two restaurants in order to complete the research and the findings are presented below. The purpose of this essay is to define various ways in which the effects of a servicescape impact the organization's outcomes.
Servicescape Framework
In the beginning, Kotler (1974) proposed that a servicescape model refers to 'the design of purchasing environments to generate emotional e
...ffects in the buyer that enhance their likelihood of making a purchase'. Later, Bitner expanded on this concept and described it as 'the physical setting in which a commercial transaction is performed, delivered, and consumed within a service organization'. In her influential article, she demonstrated that there are three types of objective and measurable physical stimuli within an organization that come together to form a servicescape.
Additionally, she explained that these stimuli could be managed by the management and had the ability to positively or negatively influence both customers' and employees' perception of the organization. She further categorized numerous examples of both tangible and intangible stimuli into three categories of environmental stimuli (Bitner, 1992). This term has since expanded to encompass any tangible element that enhances performance or communicates the service (Bitner and Zeithaml, 2003). Consequently, the "physical evidence" ca
be compared to a "landscape". Similar to any landscape, it includes both the interior and exterior facilities of the organization.
The physical environment of a place includes both the interior and exterior installations. The interior installations consist of things like interior design, layout, equipment, air quality, signage, temperature, and atmosphere. On the other hand, the exterior installations encompass landscape, parking, road and building signage, exterior design, and surroundings. Additionally, the physical grounds also encompass other tangible elements such as Stationery, brochures, business cards, employee uniforms, business reports, recognition statements. It also includes intangibles like web pages and blog posts. The physical environment in which services are provided and experienced by customers plays a crucial role in shaping their perceptions and future expectations of similar services (Bitner, 1992; Baker et al., 2002; Grewal et al., 2003).
Hoffman and Turley (2002) argue that the servicescape plays a crucial role in achieving and enhancing various organizational objectives. According to Bitner (1992), the physical environment consistently affects most organizations, albeit to different extents. Service-based establishments such as hotels, restaurants, clubs, and insurance companies are particularly influenced by their surroundings compared to businesses like ATMs and hot dog stands. Additionally, it is worth noting that the physical environment not only impacts customers but also holds considerable importance for employees. Bitner further emphasizes that contented employees contribute to delivering satisfactory services which in turn continue to satisfy customers.
Therefore, the concern environment should not only cater to the needs and demands of the customers but also simultaneously to those of the employees. The following figure has been extracted from the original treatise by Ms. Mary Jo Bitner (1992) to illustrate the different types of
service organizations based on the variation in the form in use of the servicescape. The vertical aspect of the typology describes the type of organization based on who performs actions within the servicescape. It has been categorized into self-service (client only), interpersonal services (both client and employee), and distant service (employee only). On one side, service is performed by the client only, with little to no employee activity.
On one end of the spectrum, there are "remote service" administrations that have minimal client engagement and interaction in relation to the servicescape. This type of servicescape is described as complex, with both thin and luxuriant categorizations. Lee refers to servicescape scenes with very few elements and minimal elaborateness.
Other servicescapes that are highly complex and involve a wide range of elements and variables are referred to as elaborate. Degree centigrades: UsersKhalidDesktopo_c44bab260d23dc1e_002.jpg
Fig. 1: Typology of Organization and Relation to Servicescape Complexity
It is evident that certain organizations, like Golf Clubs, prioritize the needs and preferences of their clients and place significant emphasis on the servicescape. In these organizations, the servicescapes are carefully designed and implemented to attract and satisfy customers.
Other administrations, including professional service administrations, also prioritize the servicescape that is employee-oriented. These administrations focus on developing servicescapes that cater to their employees. In contrast, there are administrations that do not heavily rely on servicescape design and put minimal effort into developing their servicescapes. However, they still consider whether the administration is customer-oriented or employee-oriented in order to maximize output from their efforts. As mentioned before, the physical setting can either enhance or hinder the achievement of internal organizational objectives and external marketing goals.
The servicescape's impact on client satisfaction, employee
motivation, and attracting/retaining clients is significant. The model includes physical environmental dimensions that shape the overall organizational environment. These dimensions, referred to as the sensed servicescape, cause internal responses in both employees and clients. These responses affect their behavior and interactions with each other. Ultimately, these behaviors contribute to the organization's objectives and goals.
Adminstrations aim to achieve an optimal mix of physical environment factors and manage the internal responses of employees and clients in order to recognize favorable behaviors and achieve organizational goals.
Fig. 2: Bitner's Servicescape Model
The Physical Environmental Dimensions
Bitner (1992) categorizes the physical environment into three dimensions:
Ambient Conditions:
This aspect refers to the conditions surrounding employees and clients that can be perceived through human senses, such as temperature, sound, smell, air quality, etc.
The conditions are typically excellent when they are extreme (either extremely cold or hot), the customer spends a lot of time in the environment, and they do not meet his expectations.
Spatial Layout And Functionality:
These refer to the seamless layout of the organization, particularly equipment and furnishings, which is used to achieve maximum productivity in the most efficient and effective manner. These environmental conditions are most noticeable in self-service settings and in situations where tasks are complex and there is little time to accomplish them.
Signs, Symbols, Artefacts And Branding:
These refer to the signage, icons and signals that amplify the message from the organization to the intended customers. They also include the personal artifacts of the employees and staff members in the style and color of the decor used to provide the organization. These are most important when shaping a service, forming first impression, and when communicating new service ideas.
They are also highly necessary in
highly competitive organizations where they are used to differentiate and achieve uniqueness from the competition.
Internal Responses to the Servicescape
Internal responses of both employees and clients in service organizations to the physical dimensions of the environments are classified as cognitive, emotional, and physiological. As such, these responses elicit overall behavior of the participants in the servicescape and this behavior can be classified as a map of the internal responses to the perceived servicescape. In fact, perceptions of the servicescape are the actual reason that cause certain beliefs, emotions and physiological feelings that influence behaviors.
Cognitive responses:
Cognition refers to beliefs and as such, these responses influence people's beliefs both about the place, and the people and products found in that place.
These responses encompass the overall beliefs, categorizations, and attributions of symbolic meanings to various objects for both employees and clients.
Emotional responses:
According to Mehrabian and Russell, the emotional impact of an environment can be explained by two factors: the level of pleasure or displeasure it evokes, and the extent to which it stimulates arousal. These two factors determine people's emotional reaction towards an organization's surroundings. In general, the environment of any organization can be positioned on these two dimensions. Numerous studies have confirmed the validity of expectations regarding behavior along these dimensions.
In terms of illustration, places that bring joy to individuals and allow them to enjoy themselves are typically the places where people spend the majority of their time and money. Conversely, individuals tend to avoid places that generate negative emotions. Similarly, places that evoke excitement are generally the ones that people frequently frequent.
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