Managing Service Quality: An International Journal

A customer-oriented service-enhancement system for the public sector

Chi-Kuang Chen Chang-Hsi Yu Shiow-Jiuan Yang Hsiu-Chen Chang
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Chi-Kuang Chen Chang-Hsi Yu Shiow-Jiuan Yang Hsiu-Chen Chang, (2004),"A customer-oriented service-enhancement
system for the public sector", Managing Service Quality: An International Journal, Vol. 14 Iss 5 pp. 414 - 425
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(1994),"Satisfaction, Loyalty and Reputation as Indicators of Customer Orientation in the Public Sector", International Journal of
Public Sector Management, Vol. 7 Iss 2 pp. 16-34 http://dx.doi.org/10.1108/09513559410055206
(2002),"A customer-oriented new service development process", Journal of Services Marketing, Vol. 16 Iss 6 pp. 515-534 http://
dx.doi.org/10.1108/08876040210443391
(2001),"Service improvements in public services using SERVQUAL", Managing Service Quality: An International Journal, Vol.
11 Iss 6 pp. 389-401 http://dx.doi.org/10.1108/09604520110410601

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 Introduction
A customer-oriented Customer orientation has become a popular
service-enhancement slogan and now takes pride of place in the strategic
statements of many public-sector and private-
system for the public sector organizations. In the UK, for example,
sector public-sector organizations are increasingly
demonstrating that customer orientation is no
longer the exclusive preserve of the private sector
Chi-Kuang Chen (Nwankwo and Richardson, 1994). The situation
Chang-Hsi Yu is similar in the USA as was emphasised in the
National Performance Review Project entitled
Shiow-Jiuan Yang and Putting Customers First (Gore, 1993).
The terminology of customer orientation
Hsiu-Chen Chang usually implies an organizational culture that
stresses the customer as the focal point of strategic
The authors planning and execution (Deshpande et al., 1993;
Chi-Kuang Chen and Chang-Hsi Yu are based in the Jaworski et al., 2000; Steinman et al., 2000).
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Department of Industrial Engineering and Management, Despite the prevalence of customer orientation,
Yuan Ze University, Taiwan, Republic of China. most studies have been restricted to private
Shiow-Jiuan Yang is based at the Research Development and enterprise (Brown et al., 2002; Deshpande et al.,
Evaluation Commission, Executive Yuan, Taiwan, Republic of 1993; Nwankwo, 1995; Yasin and Yavas, 1999).
China. Many studies have suggested that there are
Hsiu-Chen Chang is based in the Department of Management, differences between private enterprise and the
National Kaohsiung First University of Science and Technology,
public sector (Carnevale, 1995; Mintzberg, 1996;
Taiwan, Republic of China.
Wamsley, 1990; Zeppou and Sptirakou, 2003).
Keywords
This implies that the methods employed in private
enterprise might not be suited to the public sector,
Public services, Customer orientation and that the public service might encounter
different challenges in meeting the needs of
Abstract
customers from those encountered in meeting
This paper develops a customer-oriented service model for the customer needs in private enterprise. In particular,
public sector. Although customer-oriented service models have fairness and justice are perceived to be the ultimate
become popular since 1980, most studies have been restricted to principles of the public sector. If these perceptions
the private sector. In addition, they have emphasised the
are correct, further investigation of the concept of
management of service operations rather than system design.
This paper proposes a customer-oriented service-enhancement
customer orientation is required in the public
system (COSES) for the public sector. The model employs two sector.
dimensions: design and management of a customer-oriented In addition, many action plans for promoting
service system; and the fostering of organizational service customer orientation emphasize management of
culture. In this COSES model, the best practices of public service operations rather than design of service
agencies are empirically examined with respect to: the types of systems. Brady and Cronin (2001) have indicated
customer-oriented service activities that can be developed; and that there is a lack of research with respect to how
how they can be developed. such a customer-oriented system should be
developed. Studies on this topic have tended to
Electronic access
relate to the evaluation of employee service
The Emerald Research Register for this journal is performance and physical goods, or examined the
available at effects of organizational quality, customer
www.emeraldinsight.com/researchregister satisfaction, value attribution, and outcome
The current issue and full text archive of this journal is behaviours.
available at The present paper contends that a
www.emeraldinsight.com/0960-4529.htm comprehensive service system should not restrict

This study is funded by National Science Council,

Republic of China on Taiwan (NSC 92-2513-S-007-
046). And special thanks are extended to
Managing Service Quality Miss Li-Fang Wang, Miss Wen-Lan Chang,
Volume 14 Number 5 2004 pp. 414425 Miss Pao-Chu Sun, Mr Jih-Haw Chou,
q Emerald Group Publishing Limited ISSN 0960-4529 Miss Mei-Hsiu Chen, and Miss Cho-Chuan Hsu for
DOI 10.1108/09604520410558010 their great contribution to this research.
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Chi-Kuang Chen et al. Volume 14 Number 5 2004 414425

its focus to the management of service operations. building a customer-driven philosophy.

For effective systems design, there is a need to It contained four elements:
explore the original core concepts that precede (1) definition;
management. This paper, therefore, empirically (2) sensitivity;
examines the best practices of public agencies in (3) measurement; and
Taiwan using a two-dimensional model. The two- (4) implementation.
dimensional model includes:
Yasin and Yavas (1999) proposed a practical
(1) system design and management; and
framework that integrated certain tools to enhance
(2) the fostering of an effective organizational
the efficiency and customer orientation of service-
culture. The purpose of the paper is to
delivery systems.
examine customer-oriented service activities
The framework consisted of:
in public agencies with a view to ascertaining
(1) root-cause analysis;
which activities are developed and how they
(2) benchmarking;
are developed.
(3) process re-engineering; and
(4) continuous improvement.

Literature review Jiang and Chen (2002) proposed a customer-

oriented service model for the public sector.
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Concepts and models of customer-oriented It involved a five-stage sequence of system

service management design and management:
The terminology of customer-oriented service (1) customer identification;
management is derived from the concept of total (2) customer-needs survey;
quality management (TQM). Customer-oriented (3) service-system design;
service management proposes that satisfaction of (4) service delivery; and
customer needs must be a high-level (5) service recovery.
organizational objective (Oakland, 1993; Price, Jiang and Chen suggested that the five-stage model
1991). Customer orientation has been defined can be used to examine organizational strategic
in various ways (Kohli and Jaworski, 1990; Narver planning, system design, and operational
and Slater, 1990; Webster, 1988). It is usually management for promoting customer-oriented
associated with other terminologies, such as services.
market orientation, customer focus,
customer-driven, and customer-centred. The scale-construct model
According to the definition of Webster (1994), The scale-construct model attempts to measure
customer orientation is the business of putting customer orientation directly at the individual
the customer first in everything the company does, level. For instance, Saxe and Weitz (1982)
and organizing all activities around the basic proposed a 24-item scale that was designed to
objective of delivering superior value. Essentially, measure how a salesperson seeks to increase long-
the strategic focus is putting customers first a term customer satisfaction. The other example of
major plank of marketing (Felton, 1959; this type, proposed by Lozano (2000), was a
McGee and Spiro, 1988; Payne, 1988). It has checklist to measure the status of customer
become generally accepted that organizations orientation of a library towards its market.
should be more customer-oriented if they
are to deliver better service quality The cause-effect model
and to enhance customer satisfaction The cause-effect model attempts to investigate
(Hartline et al., 2000). influential factors and their relationships with
A review of the literature of the past decade customer orientation. For example, Brady and
reveals three major models for delivering Cronin (2001) investigated the effects of being
customer-oriented service management: customer oriented on:
(1) the conceptual model; (1) perceptions of service performance; and
(2) the scale-construct model; and (2) outcome behaviours.
(3) the cause-effect model.
Responses from 649 consumers indicated that
Each of these is discussed below. customer orientation was directly related to
customers evaluations of employee service
The conceptual model performance, physical goods, and servicescapes.
This model attempts to develop a conceptual Indirect effects included organizational quality,
framework to deliver customer orientation. For customer satisfaction, value attributions, and
example, Nwankwo (1995) provided a framework outcome behaviours. Brown et al. (2002)
to guide management through the process of investigated the mediatory role of customer
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orientation in a hierarchical model of the influence (6) comprehensive complaints-handling process;

of personality traits on self-rated and supervisor- (7) customer-value performance measures and
rated performance. The results support a partially targets;
mediated hierarchical model. (8) telephone and counter techniques; and
Several findings can be summarized here in (9) continuous improvement.
terms of above literature:
(1) although customer orientation has become a Several other countries have proposed similar
focal point for an excellent organization, reform projects to enhance the quality of public
however the empirical study is rare; services. Taiwan, for example, launched a Total
(2) most models were developed for the private Service Quality Management Project in 1997.
enterprise rather than the public sector; According to Osborne and Gaebler (1992),
(3) many studies merely focused on the customer-driven systems have several benefits.
management of service operations, while the They:
study of design of service systems was (1) force service providers to be accountable to
shortage; and their customers;
(4) the importance of fostering an organizational (2) depoliticise decisions on choice of provider;
culture was neglected in developing a
(3) stimulate innovation;
customer-oriented service system.
(4) provide people with choices from different
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In the following, we will further review the kinds of services;

literature regarding the development of customer- (5) decrease waste (because they match supply to
oriented service in the public sector. demand);
(6) empower customers to make choices (and
empowered customers are more committed
Customer orientation in the public service
customers); and
The concept of customer orientation in the public
service has now been discussed for several decades. (7) create greater opportunities for equity.
Appleby (1992) has pointed out that the need for Despite the popularity of the concept of customer
customer orientation in the public sector was orientation in the public sector, Weissman (1991)
raised as long ago as 1945. However, in more has argued that certain provisos must be taken into
recent times, the concept of customer orientation account before implementing a customer-
has taken a new meaning. In particular, learning orientation project:
from private enterprise has become the main
(1) organizations and their stakeholders must
stream of thought. For example, US President
share common values about ends;
Clinton signed executive order No. 12826 in 1993.
(2) rationality must determine the structure of
This order required the federal government to
promote standards that served the American programs (with status and power not being
people in the following ways: determining factors);
(1) identify the customers; (3) organizations and programs must accept
(2) survey customer-needs; criticism, and must adjust to factors that
(3) identify required service standards and threaten their survival;
measure the results; (4) the structure and reward systems of an agency
(4) benchmark customer service against best must support change, adjustment, innovation,
practice; and alteration;
(5) survey frontline employees; (5) there must be a willingness on the part of
(6) provide customers with choice; public agencies to accept limitations on their
(7) make systems easily accessible; and autonomy and to yield power to the less
(8) provide means of addressing complaints powerful.
(Gore, 1997).
In addition to these provisos, other problematic
In Australia, the government of the Australian
issues exist for public agencies in carrying out such
Capital Territory (ACT) proposed a customer
projects. For example, such projects usually place
service standard for the ACT public service. It is
too much emphasis on services-operation
composed of the following nine items (Australian
Capital Territory Government, 1999): management, rather than on service-system
(1) know your customer base; design. In addition, an empirical study by Chao
(2) focus on customer needs; (2003) found that a change in organizational
(3) use a can-do approach; culture is one of the most difficult tasks to achieve.
(4) customer-friendly staff; The present study intends to use a scientific
(5) customer-focused public-contact area; approach to deal with these problematic issues.
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Research framework (3) service-system design the public agency

develops the service system and process to
The present study proposes a comprehensive meet customer needs;
model for best practice with respect to customer- (4) service delivery the employees in a public
oriented activities in the public sector. The agency deliver service to customers; and
comprehensive model presented is called a (5) service recovery the public agency has an
customer-oriented service-enhancement system effective mechanism to deal with customer
(COSES). Here, COSES indicates cose or complaints.
coze, which represents that a customer-oriented
The other dimension of the COSES model is the
public agency consistently serve its clients in a way
fostering of an organizational culture (shown in the
of warm and cozy manner.
lower panel of the central box in Figure 1). In this
The COSES model employs a two-dimensional
dimension, a three-layer model is proposed:
approach, rather than the single-dimensional
(1) basic assumptions employees recognise the
approach adopted in previous studies. The two
importance of public service;
dimensions are:
(2) organizational values the provision of high-
(1) system design and management; and
quality public services becomes the accepted
(2) fostering organizational culture.
objective throughout the organization; and
The additional dimension is employed because it (3) system and behaviour the organizational
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has been widely acknowledged in the literature that structure, system, regulation, standard
a successful organization always has an embedded operational process, and other behaviours
customer-oriented organizational culture have been established.
(Athanassopoulos, 2000; Deshpande et al., 1993;
Finally, service quality and customer satisfaction
Houston, 1986; Parasuraman, 1987; Shapiro,
are placed on the right-hand side of Figure 1. This
1988; Webster, 1988). Figure 1 presents the
indicates the outcomes of service. It has been
conceptual framework of the model.
empirically demonstrated that properly
Figure 1 shows organizational vision, policy,
constructed customer orientation in an
and strategy on the left-hand side of the
organization produces better service quality and
framework. This represents the driving force
customer satisfaction (Hartline et al., 2000; Jiang
required if an organization is to develop and to
and Chen, 2002).
manage a customer-oriented service system.
The central box with the dotted-line border in
Figure 1 represents the COSES model. This
incorporates a five-stage process of service-system Research design
design and management. These are:
(1) customer identification the public agency This section presents research designs, which
identifies its customers; include research subject selection, interview
(2) customer-needs survey the public agency outline design, procedure, and data analysis
focuses on customer needs and customer scheme. To achieve the research objective stated
voice; above, a multiple-case study approach is chosen.

Figure 1 Conceptual research framework

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The reason for using this research approach is that an outbreak of severe acute respiratory syndrome
customer orientation is one of the most important (SARS), a fatal contagious disease that affected
components of TQM, and TQM was originated Taiwan in 2003.
from industry that is basically the practical arena.
So as to examine the customer oriented service Case III
activities from the best practice becomes a right To deliver high-quality social-welfare services, all
way, which is the same as the studies of Nwankwo staff in Case III were involved in a TQM project to
(1995) and Zeppou and Sotirakou (2003). promote continuous improvement of various
social-welfare programs. In particular, they
Research subjects proposed many innovative services for the poor,
Markus (1989) suggested two principles for aged, and handicapped. ICTs and volunteers
recruiting appropriate research subjects in a played important roles in delivering these
multiple-case study: innovative services.
(1) subjects should include critical and crucial
cases; and Interview design and procedure
(2) subjects should include typical and In order to examine the critical activities that
representative cases. resulted in the three public agencies being
On the basis of these two principles, three public successful in service, an in-depth interview is used.
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agencies were chosen as research cases the Land The reason for using this method is that it can
Department of Taipei County (Case I), the Health provide the most elaborated information for each
Department of Taipei County (Case II), and the case study of the three public agencies. A quasi-
Social Affairs Bureau of Kaohsiung City (Case structured and open-ended interview outline was
III). These organizations received National Public then developed for this purpose. Before the formal
Service Awards in Taiwan in 2002. The executive interviews were conducted, we performed pilot
leaders of TQM projects in these organizations testing in our research team members to make sure
were then invited to take part in interviews. Table I the appropriateness of each question in this
presents the details of the three public agencies. interview outline. The final version of the interview
Their efforts in enhancing customer-oriented outline is:
service activities are briefly described below.
.
Would you feel free to talk about the process
and experiences when you promote service
Case I quality?
To serve citizens in the most convenient way, the . How did you convince your employee to
executives of Case I put a great deal of effort into accept customer-oriented service concepts
re-engineering the procedures with respect to and for it to become a culture in your
various licence applications. They integrated the organization?
traditional bureaucratic operational approach to .
What did you think the key factors for
offer a one-stop service which is the typical facilitating service quality?
customer-oriented service. They also built a .
Were there any difficulties in carrying out the
service network to promote administrative service quality improvement project?
efficiency by using information and .
How do you think about internal and external
communication technologies (ICTs). customers in your organization?
Case II .
How did you determine the needs of internal
To understand the needs of citizens rapidly and and external customers in your organization?
precisely, the executives in Case II were active in .
Have you ever learned about any innovative
collecting media information, surveying customer service from other private or public sector
satisfaction, and periodically convening news agencies? If yes, what is your experience?
conferences to ensure that the needs of citizens .
How did you develop and implement an
were communicated effectively. They not only had innovative service?
a routine problem-solving mechanism to serve .
Is there any cross-functional teamwork in your
citizen needs, but also had a follow-up and organization?
auditing system to review service quality. Their .
Is there employee education and training in
performance resulted in successful management of your organization?

Table I Research subjects

Case no. Public agency Interviewee Customer-oriented service activities
I Land Department of Taipei county Director To serve citizens in the most convenient way
II Health Department of Taipei county Director To understand the needs of citizens rapidly and precisely
III Social Affairs Bureau of Kaohsiung City Chief of staff To deliver high-quality social-welfare services

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.
How are complaints from either internal or placed the customer-oriented service activities
external customers dealt with in your from the results of the first phase analysis into the
organization? three-layered organizational culture dimension.
.
Are there communication channels for The COSES model was then developed from the
internal and external customers in your results of the two phases of content analysis.
organization?
Before an interview was conducted, an appointment Reliability analysis
was made over telephone. The interview outline was Two additional coders were employed to measure
then faxed to the interviewee. The interviews began the reliability of the two phases of content analysis.
with a general introduction to make the interviewees In the first phase of content analysis, the two
aware of the purposes of the study and the interview coders were asked to place the themes into one of
agenda. To increase reliability and validity, some the five stages of service-system design and
principles proposed by Goetz and Lecompte (1984) management. Their results were then compared
were used: with the researcher. The degree of mutual
(1) research subjects were chosen in accordance agreement with the researcher[1] and the
with the research objective; reliability[2] were computed to examine whether
(2) two interviewers participated in the interview the indices were greater than 0.70.
data analysis;
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In the second phase of content analysis, the two

(3) the interview data were encoded and checked coders were asked to perform the same task as the
through multiple sources (interview tape, researcher. The degree of mutual agreement with
documentation, and observation); the researcher and the reliability are also computed
(4) the research objective was well understood by to examine whether the indices were greater than
the interviewee; 0.70.
(5) the interviewer kept a neutral stance during
the interview; and
(6) data were analysed according to the facts only. Analysis of COSES model
Each interview took about two to three hours. The First phase of content analysis
interviews were taped, and the interview content, In the first phase of content analysis, the three
observational records, and documents were then interview manuscripts were analysed into themes
encoded into manuscript files. (as described above). Table II presents three
examples of the procedure. A total of 19 themes
was identified from the three interview
Data analysis
manuscripts (Table III). These themes were then
Upon finishing the interviews, content analysis was
placed into the corresponding stage of the service-
conducted. Many approaches have been used for
system design-and-management dimension. Each
content analysis including word analysis,
of the themes was thus categorised into one of:
sentence analysis, theme analysis, paragraph
(1) customer identification;
analysis, and whole-text analysis (Weber, 1990).
(2) customer-needs survey;
Character analysis, space analysis, and time
(3) service-system design;
analysis have also been utilised (Kassarjian, 1977).
(4) service delivery; and
Of these, theme analysis is an appropriate
(5) service recovery.
approach for analysing opinion on a proposition.
In particular, theme analysis is very useful in The frequency of the 19 themes is indicated in
discussions of values, beliefs, and attitudes parentheses in each cell of Table IV.
(Kassarjian, 1977). In the current context, a theme As shown in Table III, 19 themes of customer-
was taken to represent a complete activity in oriented service activities were found in the three
relation to a customer-oriented service. public agencies. Although job rotation was found
Two phases of content analysis were employed. only once (in Case I), it is one of the most
In the first phase, manuscripts of whole interviews important activities of human-resource
were analysed into units (themes). These themes management in the public sector. Research
were then placed into the appropriate cells of the indicates that organizations benefit from job
five-stage process of service-system design and rotation (Robbins, 1992).
management (the horizontal dimension of Three themes were identified in the customer-
Figure 2). identification stage:
In the second phase of content analysis, all (1) customer definition (knowing how to
themes were placed into the appropriate cells of distinguish each cluster);
the three layers of organizational culture (the (2) customer classification (classifying customers
vertical dimension of Figure 2). This procedure into different categories); and
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Chi-Kuang Chen et al. Volume 14 Number 5 2004 414425

Figure 2 Data analysis scheme

Table II Examples of the unitizing procedure

No. Unit analysis Themes Corresponding stage
1 First, we have to understand the Customer needs recognition Customer needs survey
citizens and employees needs in each group. Customer classification Customer identification
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We then investigate, analyze, plan, and execute. Consideration of environmental Customer needs survey
Execution includes a pilot run, to spread change in strategic
around completely, back to review, and planning
then to reform (Case I)

2 We search and collect the media

information and civil suggestions actively, and
integrate them into our strategic planning
of various innovative service programs (Case II)
3 Besides the public agency, employee visits Benchmark learning Customer identification
to other excellent businesses are encouraged.
These visits are followed by a conference
to discuss learning from those excellent business
units about customer-oriented service
(Case III)

(3) benchmark learning (learning from other Five themes were identified in the service-delivery
excellent businesses or public agencies). stage:
(1) willingness to help customers deliver their
Three themes were identified in the customer- requests;
needs survey stage: (2) teamwork and empowerment (sharing of
(1) consideration of environmental change in responsibility, information, and decision-
strategic planning; making among group members);
(2) surveying customer needs periodically (3) cross-functional cooperation;
(conducting customer needs surveys (4) job rotation; and
frequently); and (5) use of ICTs.
(3) customer-needs recognition (recognising that Finally, three themes were identified in the service-
different clusters of customers have different recovery stage:
needs). (1) placing customers interests first;
(2) providing multiple channels for good
Five themes were identified in the service-system communication (ensuring that
design stage: communication channels are always
(1) set service standard procedures to satisfy accessible); and
customers needs; (3) building customers complaints procedures.
(2) incentive system;
Table V presents the reliability of the first phase of
(3) employee education;
content analysis. The indices of the degree of
(4) service-quality audit system (ISO system); mutual agreement between the researcher and
and each of the two coders were 0.789 and 0.842.
(5) design of service items in accordance with The reliability was 0.899. The three indices
customer needs. satisfy the criterion adopted for the study
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Chi-Kuang Chen et al. Volume 14 Number 5 2004 414425

Table III Identify the themes from the customer-oriented service activities in public sectors
Land Department Health Department Social Affairs Bureau of
Theme of Taipei County of Taipei County Kaohsiung City
p p p
Teamwork and empowerment
p p p
Customers benefit first
p p p
Survey customer needs periodically
p p p
Customer definition
Consideration of environmental change
p p p
in strategic planning
p p p
Building customers complaints procedures
p p p
Customer needs recognition
Designing service items in
p p p
accordance with customer needs
p p p
Customer classification
Multiple channels for good
p p p
communication
p p p
Benchmark learning
Willingness to help customers
p p p
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deliver their requests

Service standard fit customer
p p p
needs
p p p
Cross-functional cooperation
p p p
Employee education
Service quality audit system
p p p
(ISO system)
p p p
Incentive system
p p p
The use of ICTs
p
Job rotation

Table IV The frequency of themes of the first phase

Public service-system Customer Customer Service system Service Service
design and management identification needs survey design delivery recovery
Theme A-1(3) B-1(3) C-1(3) D-1(3) E-1(3)
A-2(3) B-2(3) C-2(3) D-2(3) E-2(3)
A-3(3) B-3(3) C-3(3) D-3(1) E-3(3)
C-4(3) D-4(3)
C-5(3) D-5(3)
Notes: A: Customer identification; B: Customer needs survey; C: Service system design; D: Service delivery; E: Service recovery;
A-1: Customer classification; A-2: Benchmark learning; A-3: Customer definition; B-1: Consideration of environmental change in
strategic planning; B-2: Survey customer needs periodically; B-3: Customer needs recognition; C-1: Service standard fit customer
needs; C-2: Incentive system; C-3: Employee education; C-4: Service quality audit system(ISO system); C-5: Designing service
items in accordance with customer needs; D-1: Teamwork and empowerment D-2: Cross-functional cooperation D-3: Job rotation;
D-4: Willingness to help customers deliver their requests; D-5: The use of ICTs; E-1: Building customers complaints procedures;
E-2: Multiple channels for good communication; E-4: Customers benefit first. Numbers in brackets represent the frequency

(greater than 0.70). This indicates that the customer classification (A-b-1) was an
researchers classification (as shown in Table V) is organizational value; and benchmark
appropriate. learning (A-c-1) was a system and behaviour
attribute.
Three themes were then allocated to the stage of
Second phase of content analysis
customer-needs survey. Consideration of
In the second phase, the themes in each stage were
environmental change in strategic planning (B-a-1)
allocated to the appropriate level of the
organizational culture dimension (Table VI). was one of the basic assumptions; customer-needs
First, three themes were allocated to the stage recognition (B-b-1) was an organizational value;
of customer identification. Customer definition and surveying customer needs periodically (B-c-1)
(A-a-1) was one of the basic assumptions; was a system and behaviour attribute.
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Table V Reliability of the first phase of content analysis

Researchers
classification Coders classification
Theme X Y Z
Teamwork and empowerment D B D
Customers benefit first E E B
Survey customer needs periodically B B B
Customer definition A A A
Consideration of environmental change in strategic planning B C C
Building customers complaints procedures E E E
Customer needs recognition B B B
Designing service items in accordance with customer needs C C C
Customer classification A A A
Multiple channels for good communication E E E
Benchmark learning A A A
Willingness to help customers deliver their requests D D E
Service standard fit customer needs C C C
Cross-functional cooperation D D D
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Employee education C D C
Service quality audit system (ISO system) C C C
Incentive system C D C
The use of ICTs D D D
Job rotation D D D
The degree of mutual agreement with the researcher 0.789 0.842
Reliability 0.899

Table VI Allocate the themes to the appropriate level of the organizational culture
Public Service Mgt. Customer Customer Service system Service Service
Organ. Culture identification needs survey design delivery recovery
Basic assumptions A-a-1 B-a-1 C-a-1 D-a-1 E-a-1
Organizational values A-b-1 B-b-1 C-b-1 D-b-1 E-b-1
System and behaviour A-c-1 B-c-1 C-c-1 D-c-1 E-c-1
C-c-2 D-c-2
C-c-3 D-c-3
Note: A: Customer identification; B: Customer needs survey; C: Service system design; D: Service delivery; E: Service recovery a: Basic
assumptions; b: Organizational values; c: System and behavior A-a-1: Customer definition; A-b-1: Customer classification;
A-c-1: Benchmark learning B-a-1: Consideration of environmental change in strategic planning; B-b-1: Customer needs recognition;
B-c-1: Survey customer needs periodically C-a-1: Designing service items in accordance with customer needs; C-b-1: Service standard
fit customers needs; C-c-1: Service quality audit system (ISO system); C-c-2: Employee education; C-c-3: Incentive system
D-a-1: Willingness to help customers deliver their requests; D-b-1: Cross-functional cooperation; D-c-1: The use of ICTs;
D-c-2: Teamwork and empowerment; D-c-3: Job rotation E-a-1: Customers benefit first; E-b-1: Multiple channels for good
communication; E-c-1: Building customers complaints procedures

Five themes were then allocated to the stage of (D-c-2), and job rotation (D-c-3) were system and
service-system design. Designing service items in behaviour attributes.
accordance with customer needs (C-a-1) was one Finally, three themes were allocated at the stage of
of the basic assumptions; service standard to fit service recovery. Customers interests first (E-a-1)
customers needs (C-b-1) was an organizational was one of the basic assumptions; offering multiple
value; and a service-quality audit system (ISO communication channels (E-b-1) was an
system) (C-c-1), employee education (C-c-2), and organizational value; and building the procedures
an incentive system (C-c-3) were system and of customers complaints (E-c-1) was a system and
behaviour attributes. behaviour attribute.
Five themes were then allocated at the stage of Table VII presents the reliability of the second
service delivery. Willingness to help customers phase of content analysis. The indices of the
deliver their requests (D-a-1) was one of the basic degree of mutual agreement between the
assumptions; cross-functional cooperation researcher and each of the two coders were 0.737
(D-b-1) was an organizational value; and the use and 0.789, respectively. The reliability was 0.866.
of ICTs (D-c-1), teamwork and empowerment The three indices were greater than 0.70. This
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Chi-Kuang Chen et al. Volume 14 Number 5 2004 414425

Table VII Reliability of the second phase of content analysis

Researchers Coders
classification classification
Stages Theme X Y Z
A Customer classification A-b A-b A-b
Benchmark learning A-c A-c A-c
Customer definition A-a A-a A-a
B Consideration of environmental change in strategic planning B-a C-a C-a
Survey customer needs periodically B-c B-c B-c
Customer needs recognition B-b B-b B-b
C Service standard fit customer needs C-b C-b C-b
Incentive system C-c D-b C-c
Employee education C-c D-b C-c
Service quality audit system (ISO system) C-c C-c C-c
Designing service items in accordance with customer needs C-a C-b C-b
D Teamwork and empowerment D-c B-a D-a
Cross-functional cooperation D-b D-b D-b
Job rotation D-c D-c D-c
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Willingness to help customers deliver their requests D-a D-a E-a

The use of ICTs D-c D-c D-c
E Building customers complaints procedures E-c E-c E-c
Multiple channels for good communication E-b E-b E-b
Customers benefit first E-a E-a B-a
The degree of mutual agreement with the researcher 0.737 0.789
Reliability 0.866

implies that the researchers classification (shown assumption that employees recognise the
in Table VI) is appropriate. importance of public services. The second layer is
organizational values that all members have a
common belief in the organizational values of
public services. The third layer is system and
Discussion behaviour that the customer-oriented system has
been well established in the organization, and that
The nature of a COSES model in the public customer-oriented behaviours have become part of
sector employee life. This dimension can be interpreted
On the basis of the two phases of content analysis, in terms of how to promote participation in a total
COSES for the public sector is proposed. Table VI quality management organization.
shows the COSES model, which includes the
empirical findings of customer-oriented service
activities from the best practices of three How is COSES implemented in the public
Taiwanese public agencies. In place of the existing sector?
approach (which focuses only on service- The three cases developed their service system in a
operations management), COSES takes into sequence of five stages. Customer identification
account service-system design, service-operations and a customer-needs survey were well defined
management, and the fostering of an before the service system was developed and
organizational culture. before service activities were delivered. Service
In the COSES model, each customer-oriented recovery was also emphasised in the three public
service activity is appropriately deployed to one of agencies because they know that customer
the five stages of service-system design and complaints are important in continuously
management. The five stages are customer improving their services. Each agency took a long
identification, customer-needs survey, service- time (about three years) to transform its
system design, service delivery, and service organization to a customer-oriented model. Four
recovery. A cycle of the five stages can be best-practice characteristics were found in the
interpreted in terms of continuous improvement of development of COSES.
TQM. Leadership is one of the most important
Based on the second phase of content analysis, characteristics required to make a successful
the model has three layers of organizational culture change. Any TQM project requires a leader.
in relation to customer-oriented service activities. A leader not only has to make strategic
The first layer of organizational culture is the basic announcements but also has to put them into
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Chi-Kuang Chen et al. Volume 14 Number 5 2004 414425

action. In the dimension of system design and The COSES model is intended to remedy the
management, a leader should facilitate effective weaknesses of the existing customer-oriented
motivation measures, expedite communication service systems and to offer insights into how a
channels, empower employees as appropriate, customer-oriented organization is developed.
participate in decisions, and set a good model by Although the contributions of this paper are
his own action. significant, the findings of the study must be
Teamwork is also an important characteristic. utilised with caution because the results are
The public services are encountering many derived from only three cases. In addition, some
challenges. These challenges, in concert with issues are worthy of further study. First, a large-
diminishing public resources, represent a difficult scale survey or a longitudinal study is required to
environment for public management. Teamwork is verify the validity and reliability of the COSES
certainly the best way to resolve such sophisticated model. Secondly, a holistic procedure is required
dilemmas. In particular, cross-functional to help practitioners in the public sector to develop
cooperation is one of the most important and assess a customer-oriented service system.
ingredients in teamwork. In addition, to achieve Thirdly, it would be interesting to examine the
successful change, employee commitment is patterns of various customer-oriented service
necessary. Dissatisfied employees imply systems being developed in the public sector.
dissatisfied customers. It is therefore, essential that Finally, a comprehensive cause effect study is
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employees understand how the enhancement of required to examine the relationships among the
customer-oriented service activities can benefit all different patterns of customer-oriented service
stakeholders. systems and the organizational factors. These
Thirdly, a good action plan is necessary to organizational factors could include internal
share common values and to direct the marketing, organizational commitment, job
development of customer-oriented service satisfaction, service quality, and customer
activities. Management by objective (MBO) and satisfaction for the public sector.
balanced scorecard (BSC) are the two most
commonly used approaches in implementing a
TQM project. A Deming cycle of plan-do-check- Notes
action (PDCA) is also common in promoting
innovative service activities. 1 Degree of mutual agreement 2 number
Fourthly, the discipline of getting things done of items completely agreed by two parties=
is certainly needed to facilitate a change in number agreed by Party A number agreed
by Party B.
organizational culture. All the interviewees
2 Reliability 2 Degree of average mutual
mentioned that total participation is the only way agreement={ 1 2 2 1 Degree of average
to make a successful change. To be a total mutual agreement}.
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