Customer satisfaction (CSAT) is a measure of how well a company's products, services, and overall

customer experience meet customer expectations. It reflects your business' health by showing how well
your products or services resonate with buyers.

Customer satisfaction organizational diagrams

★Customer: The customer is at the center of the diagram, as they are the most important factor in
customer satisfaction.

★Front-line employees: Front-line employees are the employees who interact directly with customers.
They are responsible for providing excellent customer service and resolving any customer problems.

★Functional operational areas is the Middle management is responsible for supporting front-line
employees and ensuring that they have the resources they need to be successful.

★Senior management: Senior management is responsible for setting the overall customer satisfaction.

★CEO: The CEO (Chief Executive Officer) of a Customer Satisfaction organizational diagram refers to the
executive position responsible for overseeing and leading all aspects related to customer satisfaction
within an organization.

Teboul's model:

Teboul's model of customer satisfaction is a simple but effective way to understand and manage
customer satisfaction. It is based on the idea that customer satisfaction is the result of the difference
between the customer's expectations of a product or service and their actual experience of that product
or service.

The model is represented by a Venn diagram with three overlapping circles:

• Customer expectations: This represents the customer's needs, wants, and desires.

• Company offer: This represents the product or service that the company is offering to its
customers.

The area of overlap between the customer expectations and the company offer represents the customer
satisfaction zone. If the company offer meets or exceeds the customer's expectations, then the customer
will be satisfied. However, if the company offer falls short of the customer's expectations, then the
customer will be dissatisfied.

Teboul's model has a number of implications for businesses. First, it highlights the importance of
understanding customer expectations. Businesses need to know what their customers want and need in
order to develop products and services that meet those expectations. Second, the model shows that
customer satisfaction is not just about the product or service itself. It is also about the customer's overall
experience with the company. This includes the way the customer is treated by staff, the ease of doing
business with the company, and the way the company handles any problems that may arise.
Who is the customer?

A customer is a person or business that purchases goods or services from another

business. Customers are the lifeblood of any business, as they are the ones who
generate revenue.
Customer are two types:
1.Internal customer
2.External Customer

Customer perception of quality:

There is no fixed rule about quality level. Customer’s needs, values and
expectations are constantly changing and becoming much more demanding.
Customer perceptions of quality are widely affected/controlled by six dynamic
factors.
1.Performance
2.Features
3.Services
4.Warranty
5.Price
6.Reputation

1.PERFORMANCE
Performance is one of the key aspects of customer perceptions of quality can be
further broken down; 1. Availability of the product: A product will operate when
needed. 2. Reliability: Freedom from failures over time. 3. Maintainability: Easy to
maintain and keep operatable over time.
2.FEATURES
In addition to the primary functions of a product or service, customers look for
secondary functions as a feature. The best example to understand is “CAR”, the
primary function is “Transport”, all other functions we get are features.

3.SERVICES
Most challenging and highly networking factor. Providing the best customer
service is different from achieving product quality. Organizations should find the
best way to provide better service to their customers.
4.WARRANTY
Warranty is a marketing muscle. This represents the organization’s quality promise
to the customers. Warranty minimizes the risks in the purchasing process and
encourages customers to buy the product or services.
5.PRICE
The customer’s concept of value is constantly changing. Customers may willing to
pay a higher price to obtain a value. Organizations must keep an eye on
customers’ changing trends, and keep competitive prices over the competition.
6.REPUTATION
Customers are willing to pay a premium for a trusted brand. Customer retention is
an important strategy for any organization. Total customer satisfaction is based on
the entire experience. All together can improve the reputation of the organization
over the period.
Customer Feedback

Customer feedback is information provided by customers about their experience with a product or
service. Customer feedback must be continuously monitored. They change their minds, their
expectations, and their suppliers. So, customer feedback is not a one-time effort. is an ongoing and
active probing of the customers' mind. Feedback enables the organization to:

• Discover customer dissatisfaction.

• Discover relative priorities of quality.
• Compare performance with the competition.
• Identify customers' needs.
• Determine opportunities for improvement.

Customer Feedback Collecting Tools

Comment Cards: A low-cost method of obtaining feedback from the customer. It can be attached with
the warranty card or included in the product at the time of purchasing. It helps to get simple
information like name, address, age, occupation and what made the customer to buy the product.

Customer Questionnaire: It is a costly and time-consuming way to obtain opinions and perceptions
about organization and its products and services. Surveys may be administrated by mail, telephone or
the internet. In the survey, the customers are asked to furnish the answers relating to the quality of
products and services. Most surveys ask the customers to grade the question on a one-to-five or a one-
to-ten scale where the highest number indicates highest satisfaction. This is a typical approach to
surveys. Not that much effective. To make survey more effective, it’s good to remember these points:

• Clients and customers are not the same.

• Surveys raise customers' expectations.
• How you ask a question will determine how the question is answered.
• The more specific the question, the better the answer.
• You have only one chance and only 15 minutes.
• The more time spent in survey development, the less time will be spent in data analysis.
• Who you ask is as important as what you ask.
• Before the data are collected, you should know how you want to analyze and use the data.
Focus Group: Customer focus groups are popular and effective way to obtain feedback, but they too
can be very expensive. A group of customers is assembled in a meeting room to answer a series of
questions. These carefully structured questions are asked by a skilled moderator, who probes into the
participants' thoughts, ideas, perceptions, or comments. The moderator has a clear understanding of
the type of information wanted and a plan for obtaining it. The people selected to participate have the
same profile as the customers that the organization is trying to attract. This is a good way to obtain the
intrinsic feelings associated with a product or service. Feelings are not as easily obtained from customer
questionnaires, because customers often hold back information on surveys.
Toll-Free Telephone Number: Toll free numbers are telephone numbers with distinct three or four-
digit codes that can be dialed from landlines with no charge to the person placing the call. It is an
effective technique for receiving complaint feedback. However, such a number does not reach to those
who decided not to buy the product or those who found some likable feature on competitor’s product.

Customer Visits: Visiting a customer's place is another way to gather information. An organization also
can proactively monitor its product's performance while it is in use and thereby identify any specific or
recurring problems. Senior managers should be involved in these visits. However, it is a good idea to
take along operating personnel so they can see how the product is performing.

Report Card: Another very effective information-gathering tool is the report card. It is usually sent to
each customer on a quarterly basis. The data are analyzed to determine areas for improvements.

The Internet: Some managers are beginning to monitor discussions that take place on the Internet to
find out what customers are saying about their products. Internet users frequently seek advice regarding
their everyday activities or activities related to specific interests, hobbies, or sports. Intervening will
most likely end the discussion. Monitoring Internet conversations is less time consuming, the cost is
minimal, and it can be a source of creative ideas.

Employee Feedback: Employees are often an untapped source of information. Companies are
listening more to the external customer but still are not listening to employees. Employees can offer
insight into conditions that inhibit service quality in the organization. Employee groups can brainstorm
ideas to come up with solutions to problems that customers have identified.

Mass Customization: Mass customization is the process of delivering market goods and services that
are modified to satisfy a specific customer's needs. Mass customization is a marketing and
manufacturing technique that combines the flexibility and personalization of custom-made products
with the low unit costs associated with mass production. Other names for mass customization include
made-to-order or built-to-order.

Using Customer Complaints

As the basis of this table, it’s a survey and it was conducted by ASQ of dissatisfied customer. Only
about 1.5% customer took time to complain to management. 20% took out their dissatisfaction on
front line personnel and 80% did nothing. This data indicates that customers are happy with the
product & service. If satisfied customers data are included on this table, the number of formal
complaints to management is much lower than 1.5%. Dissatisfied customers switch to a competitor
and don’t say anything. For this reasons, the customer who don’t complain to the management, it
should worry for an organization.
Small organization have tremendous advantage in this area because customer easily connected
with customer and on the other hand top organization have no opportunity in personal contact with
customers. Another study have showed that half of the customers will buy again if they believe
their complaint has been heard and resolved. 20% will buy again if their complaint heard but not
resolved. Less than 10% will be repeat buyers when a complaint is not heard.
By taking positive approach, complaints can be seen as opportunity. Some actions organization
can take are:
1. Investigate customers' experiences by actively soliciting feedback, both positive and
negative, and then acting on it promptly.
2. Develop procedures for complaint resolution that include empowering front-line personnel.
3. Analyze complaints, but understand that complaints do not always fit into neat categories.
4. Work to identify process and material variations and then eliminate the root cause. "More
inspection" is not corrective action.
5. "When a survey response is received, a senior manager should contact the customer and
strive to resolve the concern.
6. Establish customer satisfaction measures and constantly monitor them.
7. A Communicate complaint information, as well as the results of all investigations and
solutions, to all people in the organization.
8. Provide a monthly complaint report to the quality council for their evaluation and, if
needed, the assignment of process improvement teams.
9. Identify customers' expectations beforehand rather than afterward through complaint
analysis
90% customers complain through front line employees in an organization. Customer’s wants
problem solved quickly & efficiently. To do this, management need to train front line employees
to handle this situation. Front line employees should have the responsibility & authority to provide
the service to satisfy the customers. For example, in a restaurant, a cashier should be empowered
to discount he meal price of a dissatisfied customer without seeking management approval.
Studies have shown that the better service at the point of sale, decrease the complaints and increase
the sales volume. Employees who are dissatisfied with organization are as noticeable as
dissatisfied customers. It need to focus on employment satisfaction as customer satisfaction.

What is Customer service?

Customer service is the set of activities an organization uses to win and retain customers' satisfaction.

Elements of Customer service?

Organisation

1. Identify each market segment:

 - Recognize and define the distinct groups of customers or clients that your organization serves. In the
context of the passage, this involves understanding the different needs and expectations of customers in
various sectors.

2. Write down the requirements:

- Document the specific criteria and standards that define the quality of service expected from your
organization. In the provided passage, this refers to creating a service quality handbook outlining the
standards for each task.

3. Communicate the requirements:

- Share the documented standards with employees to ensure a consistent level of quality across all tasks.
This involves employing various communication methods such as formal training, videos, coaching,
meetings, and intranet sites, as mentioned in the passage.

4. Organize processes:

- Structure and streamline the internal workflows and procedures within the organization to align with
the identified market segments and quality requirements. This may involve adapting or entirely changing
business processes, as exemplified by the transformations in the Indian Railways reservation system and
the banking system mentioned in the passage.

5. Organize physical spaces:

- Rearrange and optimize physical spaces to enhance customer service. The passage illustrates this point
with the example of Harris Methodist Hospital redesigning its emergency room around the patient,
resulting in a more efficient and less time-consuming experience for the "quick care" patients.

Customer Care

6. Meet the customer's expectations:

- Strive to fulfill and exceed the expectations of customers by delivering products or services that align
with their needs and desires. This aligns with the idea that an organization should revolve around the
customer, valuing and treating them like a friend.

7. Get the customer's point of view:

- Understand and consider the perspective of the customer. This involves empathizing with their needs,
concerns, and preferences. By doing so, an organization can better tailor its products or services to meet
customer expectations.
8. Deliver what is promised:

- Ensure that the organization follows through on commitments made to customers. This builds trust
and credibility, as highlighted by the importance of keeping promises to customers in the provided
passage.

9. Make the customer feel valued:

- Treat customers with respect, courtesy, and professionalism. Making customers feel valued involves
recognizing their importance to the business and showing appreciation for their patronage, contributing
to positive word-of-mouth promotion.

10. Respond to all complaints:

- Address customer complaints promptly and effectively. The passage emphasizes that responses to
customer complaints should be immediate and exceed customer expectations, showcasing a commitment
to resolving issues and maintaining customer satisfaction.

11. Over-respond to the customer:

- Go above and beyond in addressing customer needs and concerns. By providing more than what the
customer expects, an organization can create a positive and memorable experience, leading to customer
loyalty and positive promotion.

12. Provide a clean and comfortable customer reception area:

- Create a welcoming and pleasant environment for customers. This includes maintaining cleanliness
and comfort in physical spaces where customers interact with the organization, such as reception areas.
This contributes to an overall positive impression of the business.

Communication
13 Optimize the trade-off between time and personal attention

- The passage emphasizes that communication methods, such as phone manners or automated systems,
should be fast and easy for customers. This aligns with the idea of optimizing the balance between
promptness and providing personalized attention.

14.Minimize the number of contact points:

- Streamlining communication channels, as suggested in the passage, reduces complexity and aligns with
the idea of minimizing the number of contact points to enhance the overall customer experience.
15.Provide pleasant, knowledgeable, and enthusiastic employees:

- The passage highlights the impact of an employee's manners on communication. Having pleasant,
knowledgeable, and enthusiastic employees directly relates to building positive customer relationships.

16.Write documents in customer-friendly language:

- The passage stresses the importance of consistent and clear communication. Writing documents in
customer-friendly language aligns with the idea of ensuring that the information presented is easily
understood, contributing to a positive customer experience.

Front-line people

17. Hire people who like people:

- The point emphasizes the importance of hiring individuals with a positive personality for front-line
roles, suggesting that the most critical aspect in front-line employees is their personality—specifically,
their ability to care, smile, possess a pleasant voice, and thank customers often.

18. Challenge them to develop better methods:

- The point supports the idea of continuous improvement by highlighting the need for front-line
employees to care, smile, and possess a positive attitude. This positivity is considered a key aspect of their
personality, contributing to better customer interactions.

19. Give them the authority to solve problems:

- The point echoes the importance of empowering front-line employees by stating that they should be
"empowered to resolve complaints." It emphasizes the significance of solving customer issues promptly
and efficiently.

20. Serve them as internal customers:

- The concept of treating front-line employees as internal customers aligns with the point's emphasis on
management's role in supporting front-line staff. It suggests that management should serve and support
front-line employees to ensure effective customer service.

21. Be sure they are adequately trained:

- The point acknowledges the need for training front-line employees, stating that they "also need
training." It emphasizes that training is essential for enhancing their skills, including communication and
problem-solving.

22. Recognize and reward performance:

 - The point supports the idea of recognizing and rewarding front-line employees' efforts by providing
examples such as the salesperson offering a discount coupon to a customer inconvenienced by a seam
split. It reinforces the importance of positive reinforcement for excellent customer service.

Leadership
23.Lead by example:

- The passage emphasizes that management's commitment to service quality is best demonstrated
through leading by example. The example of Texas Namplate Co. highlights how customer-care personnel,
including the company president, make themselves available 24/7, showcasing a commitment that sets
the tone for the entire organization.

24. Listen to the front-line people:

- Effective leadership involves listening to those on the front lines, acknowledging their experiences, and
gaining insights. The passage suggests that CEOs should actively engage with the customer service desk
to understand customer perspectives. This aligns with the principle of valuing input from those directly
involved in customer interactions.

25.Strive for continuous process improvement:

- The passage underscores that commitment to quality involves a continuous process of improvement.
CEOs are encouraged to actively participate in various aspects of their business, such as experiencing the
customer's point of view or understanding challenges faced by employees. This aligns with the idea of
ongoing efforts to enhance processes and services.

What is Employee Involvement?

Employee involvement is the active participation of employees in activities that assist the
company in fulfilling its purpose and achieving its objectives.
Employee involvement is one approach to improving quality and productivity. Its use is credited
for contributing to the success enjoyed by the Japanese in the world marketplace. Employee
involvement is not a replacement for management nor is it the final word in quality improvement
It is a means to better meet the organization's goals for quality and productivity at all levels
of an organization.
What Is Maslow’s Hierarchy of Needs?
Abraham Maslow was an American psychologist who developed a hierarchy of needs to explain
human motivation. His theory suggested that people have a number of basic needs that must be
met before people move up the hierarchy to pursue more social, emotional, and self-actualizing
needs. Maslow’s hierarchy of needs was first introduced in Abraham Maslow’s 1943 paper, “A
Theory of Human Motivation.” Maslow later refined this theory in 1954 with his book
“Motivation and Personality.” Since then, this theory has remained a popular subject in sociology,
management training, and psychology classes.
These are the five categories of needs according to Maslow:
Physiological Need
Physiological needs are the first level of Maslow’s hierarchy of needs. They are the most essential
things a person needs to survive. They include the need for shelter, water, food, warmth, rest,
and health. A person’s motivation at this level derives from their instinct to survive.
Once people’s physiological requirements are met, the next need that arises is a safe
environment. Our safety needs are apparent even early in childhood, as children have a need for
safe and predictable environments and typically react with fear or anxiety when these are not
met. Maslow pointed out that in adults living in developed nations, safety needs are more
apparent in emergency situations (e.g. war and disasters), but this need can also explain why we
tend to prefer the familiar or why we do things like purchase insurance and contribute to a
savings account.
Love and Belonging
The third level of Maslow’s hierarchy of needs is love and belonging needs. Humans are social
creatures that crave interaction with others. This level of the hierarchy outlines the need for
friendship, intimacy, family, and love. Humans have the need to give and receive love, to feel like
they belong in a group. When deprived of these needs, individuals may experience loneliness or
depression.

Esteem
The fourth level of Maslow’s hierarchy of needs is esteem needs. Esteem needs are related to a
person’s need to gain recognition, status, and feel respected. Once someone has fulfilled their
love and belonging needs, they seek to fulfill their esteem needs.
Maslow broke up esteem needs into two categories: the need for respect from others and the
need for respect from oneself. Respect from others relates to achieving fame, prestige, and
recognition. Respect from oneself relates to dignity, confidence, competence, independence,
and freedom. When people’s esteem needs are met, they feel confident and see their
contributions and achievements as valuable and important. However, when their esteem needs
are not met, they may experience what psychologist Alfred Adler called “feelings of inferiority.”
Self-Actualization
Self-actualization refers to feeling fulfilled, or feeling that we are living up to our potential. One
unique feature of self-actualization is that it looks different for everyone. For one person, self-
actualization might involve helping others; for another person, it might involve achievements in
an artistic or creative field. Essentially, self-actualization means feeling that we are doing what
we believe we are meant to do. According to Maslow, achieving self-actualization is relatively
rare, and his examples of famous self-actualized individuals include Abraham Lincoln, Albert
Einstein, and Mother Teresa.

Herzberg's two-factor theory

Herzberg's two-factor theory is a well-known motivation theory in the field of business
management. The theory comprises two factors: motivation and hygiene. Motivation factors,
such as a sense of achievement and responsibility, aim to inspire and engage employees. Hygiene
factors, such as salary and working conditions, are necessary for employees to maintain
satisfaction in the workplace. The presence or absence of these factors can significantly impact
employee motivation and engagement, and different combinations of these factors can affect
the employees' job satisfaction level.
Hygiene factors
Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term. But if these factors are
absent/if these factors are non-existent at workplace, then they lead to dissatisfaction. Hygiene
factors are the elements of a job that satisfy basic needs: security, pay, fairness, and working
conditions. When these needs are met, employees feel comfortable and satisfied with their roles.
Here are some examples of hygiene factors:
• Salary and benefits: How well an employee's basic needs are met, such as pay and
insurance
• Job security: The amount of control the employer has over keeping the position filled
• Work environment: The amount of stress and travel required, as well as the office
environment (temperature, cleanliness, basic hygiene)
• Job policies: How an employee's day-to-day activities are controlled
• Supervisory practices: How well the employees are managed
• Company policies and administration: The way policies are set up in the organization
• Company reputation: The reputation of an organization outside of the company walls,
such as with suppliers and business partners
Motivators factors
Motivational factors are the key job elements that motivate people to stay and grow in a role.
When these needs are not fulfilled, the project team may become dissatisfied with their jobs.
They may want more challenging roles that allow them to grow professionally, learn new skills,
or manage greater responsibilities.
Here are a few examples of motivators as per Herzberg’s two-factor theory:
• Achievement: The sense of accomplishment at the end of a project or task
• Recognition for accomplishments: Being acknowledged for their work or contributions
to the organization that go above and beyond their job duties, whether that’s through a
raise, promotion, or important assignment
• Advancement: The opportunity to be promoted within the organization
• Creativity: The ability to think outside the box to solve problems or come up with new
ideas
• Responsibility: The opportunity to take on bigger project roles, more duties, and higher
levels of confidentiality
• Accomplishment: The ability to accomplish a given task within the set deadline
• Status: Being seen as a leader in the organization, giving orders, and seeing those orders
carried out

Employee Survey
Employee surveys are a way for managers & bosses to understand how employee
feel about their works. This means asking employees about their thoughts and
feelings & satisfaction level at work.
Benefits of employee survey:
Assessing the current state of employee relations, identify trends, measure the
effectiveness of program implementation, identify needed improvements, and
increase communication effectiveness.
For these surveys to work, it's important for managers to plan carefully. A special
team should be created for this task. This team will decide what they want to learn
from the survey and how they'll share the results.
Steps in employee survey:
1) Create a multifunctional team: This team should include representatives from
different departments and levels of the organization. In addition, the team will
determine the objective and develop a plan to communicate results, encourage
root cause analysis, and encourage corrective action.

2) Develop the survey instrument: For employee survey instruments are

employee’s location, gender, age, seniority, and work unit are absolutely
essential to analyze the results. The survey also should include questions about
employee empowerment, as well as other constructs such as personality
characteristics, management styles, job attitudes, and the work. If the entire
population is not surveyed, then the sampling procedure should be determined
for the initial and subsequent ones.

3) Administer the survey: Once the questions are ready, the survey is given to
employees. The survey should be administered by an outside group to maintain
anonymity. Employees have time to answer the questions, and their comments
are kept secret. Surveys are administered every 12 to 18 months.

4) Compiling, analyzing and making report: After the survey, the results are put
together, and a report is made. This report is shared with everyone in the
organization, and people can give their thoughts and suggestions. Prepared
report should be provided to the quality council in a timely manner.

5) Determine areas for improvement: The final step is determining the area of
improvement. This might mean making changes in different parts of the
company. Areas for improvement may occur at the work unit level, cross
boundaries among work groups, or cover the entire organization. It's important
to listen to what employees say because it helps make the company better
Empowerment
Empowerment is the process of giving employees the authority, responsibility, and
autonomy to make decisions and solve problems. It is not the same as delegation or
job enrichment. Delegation is about distributing and entrusting work to others, while
empowerment requires the employee to be responsible for accomplishing a whole
task.
In order to create the empowered environment, three conditions are necessary:
1. Everyone must understand the need for change: People don't always like
change, so it's important to explain why it's happening. Bosses should tell everyone
why the company needs to change and what part they will play in it. Older, educated,
and experienced workers are more likely to accept change, and it also matters if they
feel they have control over their work.
2. Changing the System: The way the company works needs to support change.
People should be allowed to try new things, and it's okay if they make mistakes.
Some other things to think about are unions and the type of industry the company is
in. If the company and its employees don't work well together, change is hard.

3. The organization must enable its employees: To make change work, the
company needs to give its employees the right information, education, and skills.
Imagine asking someone to do something new without showing them how – it
doesn't work! Also, the company's strategy and technology can affect how well they
can make change happen.

A survey from 1993 showed that empowered employees are willing to:
- Stop work if it's not going well (83%)
- Help customers (81%)
- Make exceptions to rules (61%)
- Fix mistakes (61%)
- Replace items (37%)
- Give refunds or credits (26%)
So, empowerment means giving employees the power and confidence to make work
better. To make it work, everyone needs to understand why change is happening, the
system should support it, and employees should have the skills they need. When
done right, empowerment can lead to significant improvements in products and
services.
Question: Definition of team : A team is defined as a group of people working
together to achieve common objectives or goals.
If i call more briefly a team is defined as a group of people who perform
interdependent tasks to work toward accomplishing a common mission or specific
objective.

Question: Objective of a team

• Solve a problem : Teams may be tasked with identifying and solving complex
problems that require input and expertise from multiple members.
• Improve process : Teams often aim to streamline processes and improve
efficiency by pooling resources and expertise.
• Plan a conference : Planning a conference is a complex task that requires
effective teamwork, attention to detail, and excellent communication. The
team's objective is to ensure the conference runs smoothly and achieves its
goals while providing a valuable experience for attendees.
• Audit a process : Auditing a process by a team involves a systematic and
objective evaluation of a particular process within an organization to assess
its effectiveness, efficiency, compliance with standards or regulations, and
overall performance.
• Please/satisfy a customer: Teams in customer-facing roles may aim to
improve customer satisfaction by delivering better service or products

Question : Why teams works?

Teams work because many heads are more knowledgeable than one. Each number
of the team has special abilities that can be used to solve problems. Many processes
are so complex that one person cannot be knowledgeable concerning the entire
process. Second, the whole is greater than the sum of its member. The interaction
within the team produce results that exceed the contribution of each members.
Third, team members develop a relation with each other that allows them to do a
better job.

Question: Types of team?

• Problem solving team : Problem Solving Teams are temporary structures that
bring together leaders and team members from across the organization to
focus on solving a specific problem.
• Cross - functional team: A cross-functional team, also known as a
multidisciplinary team or interdisciplinary team, is a group of people with
 different functional expertise working toward a common goal. It may include
people from finance, marketing, operations, and human resources
departments.
• Natural work team : A natural work team is a group of people who naturally
come together to work on tasks because of their shared skills and the needs
of their work, rather than being officially assigned by a manager or
organization.
• Self managed team: A self-managed work team is a small group of employees
who take full responsibility for delivering a service or product through peer
collaboration without a manager's guidance.

Question : Characteristics of a successful team?

• Team Charter : A team charter is a document that defined the teams mission,
boundaries, vision, the background of the problem, the team’s authority and
duties also defined the members and their assigned role, leader records and
facilitators detailed information on roles is given in a later section.

• Team composition : Team composition and assembly involve putting together

the right set of individuals with relevant expertise to accomplish the team
goals and tasks and to maximize team effectiveness. The size of the team
should rarely exceed 10 people. Except in the case of natural work team or
self defined or directed teams. Large teams have difficulty maintaining the
commitment and interpersonal aspects become difficult to control. Teams
should be diverse by having members with different skills perspective.

• Training: training is a fundamental characteristic of a successful team as it

enhances skills, fosters cohesion, promotes adaptability, ensures consistency,
motivates team members, improves problem-solving, enhances
performance, and ensures compliance with industry standards.

• Effective problem solving : effective problem-solving is indeed a key

characteristic of a successful team. When a team can collaborate to identify,
analyze, and solve problems efficiently, it not only helps them overcome
challenges but also fosters innovation and growth. Effective problem-solving
involves communication, critical thinking, and the ability to adapt to changing
circumstances, all of which contribute to a team's success.
 • Clear objective : Having a clear objective is indeed a characteristic of a
successful team. When a team shares a common goal and everyone
understands their role in achieving it, they are more likely to work cohesively
and efficiently towards success. Clarity of objectives helps with alignment,
motivation, and effective communication within the team.

• Accountability : accountability is indeed a characteristic of a successful team.

When team members take responsibility for their actions, deliver on their
commitments, and hold themselves and each other accountable, it
contributes to the team's effectiveness and helps achieve its goals.
Accountability fosters trust, collaboration, and a sense of ownership within
the team.

Gainsharing
Gainsharing is a performance-based compensation system that is
designed to incentivize employees and teams to work together towards
achieving common goals and improving overall organizational
performance. This approach to compensation is often used by
businesses to foster a culture of collaboration, productivity, and
continuous improvement. Gainsharing programs are distinct from
traditional individual-based compensation models, such as hourly
wages or annual salaries, as they reward employees based on collective
achievements rather than individual efforts.

Key components of a gainsharing program typically include:

• Measurement of Performance Metrics: To implement

gainsharing effectively, organizations need to establish clear
and quantifiable performance metrics that align with the
company's strategic objectives. These metrics can vary
widely depending on the industry and specific goals but
 often include factors like cost reduction, quality
improvement, productivity enhancement, or revenue
growth.
• Baseline Performance: A baseline performance level is
determined based on historical data or industry
benchmarks. This baseline serves as a reference point
against which improvements are measured. It represents
the company's performance before implementing the
gainsharing program.
• Sharing Formula: Gainsharing programs typically involve a
formula that calculates the distribution of gains achieved
above the baseline. This formula can vary but often includes
a predetermined percentage of the cost savings or revenue
increase to be shared with employees.
• Employee Involvement: Employees and teams are actively
involved in the gainsharing process. They have a stake in
achieving performance improvements, as their
compensation is tied to these improvements. This
involvement can lead to increased engagement, motivation,
and a sense of ownership among employees.
• Communication and Transparency: Effective communication
is crucial in gainsharing programs. Employees need to
understand how the program works, what metrics are being
used, and how their performance contributes to the overall
success of the organization. Transparency builds trust and
helps employees see the direct link between their efforts
and rewards.
• Continuous Improvement: Gainsharing encourages a culture
of continuous improvement, where employees are
motivated to identify and implement innovative ideas that
can lead to enhanced performance. It fosters a sense of
 teamwork and collaboration as employees work together to
find ways to exceed baseline performance.
• Periodic Payouts: Depending on the design of the
gainsharing program, payouts can be distributed periodically
(e.g., quarterly or annually) or as soon as specific
performance milestones are achieved. These payouts serve
as tangible rewards for employees' contributions to the
organization's success.

Benefits of Gainsharing:

• Improved Performance: Gainsharing programs can drive

improvements in productivity, quality, and efficiency as
employees are motivated to collectively achieve
performance targets.
• Enhanced Engagement: Employees become more engaged
in their work when they see a direct connection between
their efforts and financial rewards.
• Cost Reduction: Gainsharing can lead to cost savings as
employees actively identify and implement cost-cutting
measures.
• Teamwork and Collaboration: Gainsharing promotes
teamwork and collaboration as employees work together to
achieve common goals.
• Flexibility: Gainsharing programs can be customized to fit
the specific needs and goals of an organization, making them
adaptable to different industries and situations.
While gainsharing can be an effective way to motivate employees and
improve organizational performance, it requires careful planning,
measurement, and communication to be successful. When
implemented thoughtfully, gainsharing can create a win-win situation
for both employees and organizations by aligning their interests in
achieving shared objectives.

Performance Appraisal
Performance appraisal, also commonly referred to as performance
evaluation or performance review, is a systematic process through which
employers assess and evaluate the job performance of their employees.
It is a critical aspect of talent management and plays a significant role in
employee development, compensation decisions, and overall
organizational effectiveness. Performance appraisals are typically
conducted annually or periodically, although some organizations may
conduct them more frequently.

Employee Involvement
Employee involvement in Total Quality Management (TQM) is a critical
component of this management philosophy, which aims to achieve
continuous improvement in the quality of products, services, and
processes within an organization. TQM places a strong emphasis on the
participation and commitment of employees at all levels to achieve
organizational excellence. Here's how employee involvement is defined
within the context of TQM:
• Participation in Decision-Making: In TQM, employee
involvement extends to participating in decision-making
processes related to quality improvement initiatives.
Employees are encouraged to share their insights, ideas, and
suggestions for enhancing quality, efficiency, and customer
satisfaction. This includes involvement in problem-solving
teams, brainstorming sessions, and cross-functional
collaboration.
• Quality Circles: Quality circles are a specific form of
employee involvement in TQM. These are small, voluntary
groups of employees who meet regularly to identify,
analyze, and solve quality-related problems in their work
areas. Quality circles empower employees to take ownership
of quality issues and contribute to their resolution.
• Continuous Improvement Teams: TQM emphasizes the use
of cross-functional teams dedicated to continuous
improvement projects. These teams are often composed of
employees from different departments who work together
to identify process inefficiencies, eliminate defects, and
optimize procedures. Employee involvement in these teams
is crucial for driving meaningful change.
• Training and Skill Development: TQM recognizes the
importance of equipping employees with the necessary skills
and knowledge to actively participate in quality
improvement efforts. Organizations invest in training
programs to enhance employees' problem-solving abilities,
statistical analysis skills, and other competencies that are
vital for TQM initiatives.
• Empowerment: Empowering employees is a key aspect of
TQM. It involves granting employees the authority to make
decisions and implement changes within their areas of
expertise. Empowered employees are more likely to take
 initiative, assume responsibility, and contribute to TQM
goals.
• Measurement and Feedback: TQM relies on data-driven
decision-making. Employees are often involved in collecting
and analyzing data related to quality and performance
metrics. They use this data to identify areas for
improvement and assess the impact of changes. Regular
feedback mechanisms ensure that employees stay informed
about their performance in relation to quality goals.
• Recognition and Rewards: TQM organizations recognize and
reward employees for their contributions to quality
improvement efforts. Acknowledging and celebrating
employees' achievements fosters a culture of appreciation
and motivates further engagement in TQM activities.
• Communication and Transparency: Effective
communication is vital in TQM to ensure that employees
understand the organization's quality objectives, progress,
and challenges. Transparent communication helps build
trust and commitment among employees.
• Total Employee Commitment: TQM seeks to cultivate a
culture of total employee commitment to quality. This
means that quality is not just a departmental concern but a
shared responsibility among all employees, from top
management to the frontline workers.
• Customer Focus: TQM emphasizes understanding and
meeting customer needs and expectations. Employee
involvement in gathering customer feedback and using it to
drive quality improvements is integral to TQM's customer-
centric approach.
• Supplier Involvement: TQM also extends the concept of
employee involvement to include suppliers and partners in
the quality improvement process. Collaborative
 relationships with suppliers are seen as critical to ensuring
consistent quality throughout the supply chain.
In essence, employee involvement in TQM is not only about engaging
employees in quality-related tasks but also about fostering a culture of
continuous improvement and shared responsibility. When employees
are actively involved in TQM efforts, organizations are more likely to
achieve higher levels of quality, customer satisfaction, and overall
excellence.

Training :
Answer : Training is the process of enhancing the skills, capabilities and knowledge of employees for
doing a particular job.

Training is crucial for organizational development and success. It is fruitful to both employers and
employees of an organizations

Training is essential for an effective team. The quality council must take an active role in establish- ing
training programs. Large organizations spend lakhs of rupees in team training. The first step in the
training process is to make everyone aware of what the training is all about.

The training must be experimental, because the trainees will retain 20% of what they hear and about
90% of what they do. Training should be practical and given on an 'as-needed basis. When possible, role-
playing and case studies should be used

Training is given on four basic grounds:

1 New candidates who join an organization are given training.

2.The existing employees are trained to refresh and enhance their knowledge.

3.When any updations and amendments take place in technology, training is given to cope up with
those changeschanges

4.When promotion and career growth becomes important. Training is given so that employees are
prepared to share the responsibilities of the higher level job.
RECOGNITION & REWARDS
Recognition is a form of employee motivation in which the organization publicly acknowledges the
positive contributions an individual or team has made to the success of the organization.

Recognition is about giving positive feedback based on results or performance. Sometimes this happens
in a formal way: an award, a bonus, a promotion, a raise. Sometimes recognition is given more
informally: a verbal thank you, a handwritten note. This acknowledgment is delivered using verbal and
written praise and may include symbolic items such as certificates and plaques.

Employees should be involved in the planning and implementation of the recognition and reward
program. This activity should be performed by a cross-functional team.

It can apply to various contexts, such as:

Personal Recognition: Acknowledging an individual's efforts or achievements, often through praise or

awards.

Professional Recognition: Acknowledgment of one's skills, expertise, or accomplishments in a specific

field or profession, which can lead to career advancement or opportunities.

Speech Recognition: The technology that enables a computer or device to understand and convert
spoken language into text.

Face Recognition: The process of identifying and verifying a person's identity based on their facial
features, often used for security or access control.

Public Recognition: When a person or entity gains acknowledgment or acclaim from a broader audience
or the public.

On the other hands, Reward is an incentive plan to reinforce the desirable behavior of workers or
employers and in return for their service to the organization.

Rewards can be monetary in the form of salary or non monetary in the form of awards for some special
services to the company The primary objective of organizations in giving rewards is to attract, maintain
and retain efficient, high performing and motivated employees.Reward can improve the motivation and
job satisfaction in the short term and addresses immediate issues.
Effective Reward practices
Effective rewards system can be used to motivate, incentivize, or acknowledge individuals or groups for
their actions, achievements, and contribution.

Efficient reward practices helps in attracting result driven professionals who can thrive and succeed in
performance based environments

An effective reward system should be linked with the performance development system, which focuses
on performance based pay and offers ample learning opportunities along with a healthy work
environment

Reward systems may be two types like -

Intrinsic : They are incentives which satisfy an employee internally. It includes -

1.Non-monetary forms of recognition to acknowledge achievement of quality improvement goals

2.Celebrations to acknowledge achievement of quality improvement goals

3. Regular expressions of appreciation by managers and leaders to employees to acknowledge

achievement of quality improvement goals

4.Developmental based performance appraisals

5. Quality based promotionstrinsic Rewards

Extrinsic Rewards : They are mostly tangible incentives like pay, advancement, recognition, time off etc.
Extrinsic rewards the ones which are more sought after by employees.it includes -

1. Profit sharing

2. Gainsharing

3.Employment security

4. Compensation time

5.Individual based performance systems

6. Quality based performance appraisals