Organizations managerial approach


Case Scenario:

Here, once again, these authors conferred that between the two different approaches to management systems can have a major impact on how consumers and customers view a particular organization. When customer complaints are received by upper management of any organization, the type of management system will indicate the response to the customer and the handling of the response. And, in turn, that whole process will indicate how the customer will feel emotionally about the organization, and then even how loyal that customer will be to it (Furst & Homburg, 2005). The authors concluded that the mechanistic system is more consistent for customer satisfaction than is the organic approach (Furst & Homburg, 2005). The stronger and more consistent results come from the fact that with the mechanistic system, the structure of the organization is better, and therefore, the chances of the complaint getting to the proper office or department is greater. Also, since the organization is more formalized within the mechanistic approach, the response time to the complaint will most likely be more expedient than with the organic approach (Furst & Homburg, 2005). Consequently, the results of the experiment showed that customer satisfaction and loyalty is directly related to each organization's managerial approach (Furst & Homburg, 2005).

Reference:

Fürst, A. & Homburg, C., 2005. How Organizational Complaint Handling Drives Customer Loyalty: An Analysis of the Mechanistic and the Organic Approach. Journal of Marketing. (69)3, p95-114.

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