Case 18: Answering the Phone

(A Case Analysis)

Group 5

Pasumbal, Eric D. – 18-82967

Balanta, Joan Mae C. – 18-85643

Ducay, Joyce Ann J. – 18-84494

Monteagudo, Ma. Cristina C. – 18-89608

Perea, April G. – 18-83649

BSBA-3101

October 20,2020
I. Executive Summary

Jim Mullens is the supervisor for the Customer Service Unit. He and his unit are

responsible for updating customer accounts and files as well as for providing information to

customers and other employees. Jim Mullens is given a task of the staffing new customer

service unit. This unit was created response to a newly installed on-line customer information

systems. Now, the customer service representatives (CSRs) in the unit are expected to

handle customer phone call and answer any of the full range of question they might have.

Unfortunately, the planning of the unit did not included Jim, and he only had one week to

complete his assignment. He was fortunate to have recruited enough people to get the

operation going, but after three weeks, he is now concerned about the reps are answering the

phones. He has noticed that the reps make a variety of mistakes in phone etiquette, such as

putting the caller on hold necessary, not explaining what they are doing, not verifying

information, and acting defensively. He knows they need training but realizes that he must

do it himself while the reps are on the job.

The main cause of the core problem is the failure of the planning for the new unit which

gave Jim a short time to prepare and thus resulted to the incompetency of the Customer

Service Representatives in handling the customers. In line with this, the best possible

recommendation for Jim is to devise a training program that would help the CSR learn the

proper etiquette in answering the phone and handling the customers. This solution was the

best among the alternatives as it proves to be less costly, efficient and effective, and

convenient for both the CSR and Jim.

I. Statement of the Problem

Jim is primarily in the department of Customer Service Unit. This unit was just recently

formulated to handle the increasing volume of direct customer calls more efficiently by using

the newly installed online customer information system. However, the planning for this new

unit was done well. Jim only got a short period of time to make the unit up and running. As a

result, he had to make quick personnel selections. Hiring is one of the most critical

task/challenge an organization must face. When rushed, this could lead to mistakes and

critical missteps. Hiring the right employees for your business is important no matter what

kind of work you’re in. Having quality employees will help your company run and grow

(Balance Point Team, 2016). Fortunately for Jim, things worked out quite well although there

is one thing that Jim is concerned with; the CSRs unorthodox style of handling customers.

These are only the major problems Jim has encountered but are not the only problems he has

observed.

In line with the aforementioned problems, the short term problem that Jim and the company

might encounter is the dissatisfaction of its customers due to the unorthodox way of handling

customers done by the CSRs. Customer satisfaction plays an important role within your

business. Not only is it the leading indicator to measure customer loyalty, identify unhappy

customers, reduce churn and increase revenue; it is also a key point of differentiation that

helps you to attract new customers in competitive business environments (Copley, 2017).

With the performance of the CSRs in handling its customers, dissatisfied individual might
shift to another company because of their bad service. This could be a problem to both the

company and Jim.

On the other hand, the long term problem that Jim might encounter has been the same which

is the incompetency of his CSRs in attending customers’ needs. A bad service can affect the

business in the long run as it will make customers go away. After a customer has negative

experience with a business: 58% will never use the company again; 49% will tell friends not

to use the business; 34% would take revenge by posting a review online or sharing a poor

experience on social media (New Voice Media, 2014). If the incompetency of the CSRs

continues, then the company will lose its customers and it can affect the business or worse,

can make the business go down.

In order to solve the underlying problem that Jim faces, he decided that he must train them in

the techniques of proper phone etiquette. Thus, three possible alternative solutions has been

recommended by us that could help Jim in solving the issue.

II. Causes of the Problem

The mode of interaction with the customers is key in the determination of the organization

success. This is because the customers value much how they are treated by the organization

during communication, how their issues are handled, and the extent of the attention given to

them. The way the organizations’ representatives communicate with the customers

determines the customer satisfaction with the services they receive. Therefore, it is important

to consider etiquette while communicating with the customers since first-hand interaction

portrays the image of the organization (Spinellis, 2009). Lack of knowledge in the proper

phone etiquette by the CSRs became the main issue that Jim has to solve. The Customer
Service Representatives (CSRs) lack the basic training and skills needed to professionally

handle customers over the phone. The CSRs either neglect to put customers on hold while the

search for information; do not explain the reason for any inquiries when asking questions; do

not verify any information whatsoever; and instead of being honest with the customers, they

react defensively when they don’t know certain the answers to certain questions. The main

issue stems from the planning of the new unit. Apparently, it was not done well. The online

computer system was purchased and installed before the actual operations people were

brought in. Jim was given a week to get the unit on the road. Jim should have been given a

heads up regarding this new unit so that he can have enough time to select the best candidate

appropriate for the job. The selection of a right applicant for a vacant position will be an asset

to the organization, which will be helping the organization in reaching its objectives.

Furthermore, there should have been an orientation of the operation instead of just getting

directly with the actual operations without any information as to how it would work. The

importance of orientation in business is often understated. Orientation and onboarding

processes are critical for the new employee to grasp the company processes and job roles.

Orientation serves legal purposes through Human Resources departments and it also creates a

more uniform and efficient workforce (Lazzari, 2019).

Jim knows that good telephone etiquette is essential to the successful accomplishment of his

unit’s mission, yet his reps use many different styles. Again, this issue stems from the lack of

knowledge of the CSRs regarding phone etiquette. This could have been avoided if the

proper way of teaching and learning such etiquette was imposed. This problem would not

exist only if Jim prepared an experiential learning to the CSRs. Experience gives the person a

maturity and increases the learning power along with the knowledge. Due to the personal
 involvement, the learner is able to conduct a self-evaluation test, which allows him to

understand the effect of learning on his/her attitude (Francis, 2013). Providing job aids for

the CSRs would have also been of help for the problem not to take place. Job aids are tools or

devices that help people do their jobs. Job aids help us avoid making mistakes. They also

guide us through the necessary steps to complete a task (MBN, n.d.).

Because of these problems, a training plan must be conducted by Jim to help him and his

CSR. Provision of a training program in the areas that need improvements is very important

in any organization. Jim should put more emphasis on training the reps about the importance

of observing phone etiquette while communication with the customers since the mode of

communication with the customers creates the first impression of the organization.

III. Recommended Solution, Implementation and Justification

The decision criteria listed below will be used to evaluate each alternative solution.

Time
Cost Benefit
Constraint

Convenience Risk Effectivity

COST- ‘Cost' is a generic term for all items that give reason to go against a decision, to

disagree or not be persuaded. Cost factors include:

 • Price: The money that will be spent.

• Time: The time that will be taken, both in terms of total time invested and the overall

duration.

• Effort: The amount of physical or mental effort required.

• Stress: The hassle and discomfort that will be caused.

Benefit- Benefit' is the opposite of cost in that it a general term for why a decision should be

taken. Return on Investment is the gain or projected gain if an investment.

Time constraint is probably one of the top 5 most crucial elements of decision-making.

Convenience- This means making the decision in whatever manner seems the easiest.

Risk- is the potential for future losses. It is the result of uncertainty that inherently wraps all

decisions, strategies and actions.

Effectivity- means producing or capable of producing a desired effect.

Decision Criteria of Alternative Solutions

Alternative Cost Benefit Time Convenience Risk Effectivity

Solution Constraint

Solution A Cost for materials and Improved It could be Convenient The Training has
resources needed in the knowledge and
time- friendly. for the participants/CSRs proven to be
training program may skills of CSRs.
Maybe management may not be able the most
be costly. Better implemented and the to learn all the effective
performance
during lunch participants knowledge and method of
of the CSRs.
hours or on of the skills taught in the learning.
the job training. training.
training
Solution B Hiring new employees New employee Hiring process It is Jim might not be Hiring in a
is costly (Advertising, that might is time- inconvenient able to find the limited time
 in-house recruiters’ have the consuming. to do hiring appropriate for the
salaries, third-party perfect skill process given employee for the betterment of
recruiter fees, travel for the job. with a limited job. the new unit
expenses, sign-on time. created might
bonuses, and employee not be quite
referral bonuses) effective as
devising a
training
program.
Solution C Outsourcing is cost Able to have That means It is more Broken promises. Outsourcing is
effective. access in a that the convenient to Problems With considered
wide pool of company you buy a service Quality effective most
talents. hire will need than do it of the time.
enough time, internally. But in Jim’s
staff, and case it is in
capacity to between of
give you being effective
timely or not.
delivery.

Alternative Solutions.

Solution A: Devise a Training Program – due to the representatives lacking the necessary

basic training that they should’ve been given one solution is to devise Jim’s own training

program while they are on the job since because there are no available training programs.

Before devising a good training program, Jim must gather data and information about all the

issues that lead to conflict, problems in handling the new system, problems regarding the phone

etiquettes and preferred learning styles. After that, devise a plan in which everyone should follow

systematically:

1. PRODUCT KNOWLEDGE AND COMPANY MISSION AND VALUES – it is

essential that all representatives have deep working knowledge of the organization’s

product or services. They must first learn the details of the product/service that they
 are offering so that can specifically fulfill various customer needs. It also important

that every employee should have a deep understanding of the company’s mission and

vision statements. Not only does this gives the workforce a sense of value but also

propels them in one and focused direction.

It is essential that CSRs know how to input information and details that they are provided and in

turn, provide the necessary information to customers when required.

2. ESTABLISHING/CREATING PERFORMANCE STANDARDS – at the end of the

program, CSRs must be able to:

• Efficiently access the Customer Information System (CIS)

• Enter information into system correctly

• Follow basic phone procedures and etiquettes

• Deal with conflicts or problems under pressure

3. PROPER TRAINING PROGRAMS – create various training programs to ensure all

representatives learn in their preferred learning modes. Programs are listed below:

Experiential Training – is a method that is based on gaining experience. They include the

following:

• Simulation- lets employees work through real-life scenarios in a risk-free environment

• Job Aids - include posters and pamphlets so representatives can use them as reference

when they need them.

Social Training – is a method that focuses on learning with others and includes:

• Lunch and Learn - form of training wherein groups interact during lunch and other

breaks. This serves as an opportunity so that reps can ask Jim certain questions about work. This

method also makes the group comfortable with Jim as this builds morale.

• Mentorship - Jim provides the representatives with a mentor they can work with (or

himself) and asks questions on the job.

• Role-playing - in this method, CSRs take turns working through different situations to

practice and hone their skills.

Formal Training – are traditional ways of learning and include the following:

• Mobile Learning/ eLearning- allows the representatives learn on-the-go and in their

own time through mobile devices such as tablets and smartphones.

• Instructor-Led Training- is a training method led by an instructor (or Jim) mostly in a

classroom setting.

 Videos – are useful mediums for learning because they are short in nature and are easy to

understand.

Jim Mullens shall prepare a training document incorporating the following telephone etiquettes:

• Always the answer the phone with a warm greeting like Hello/Good morning, etc

• Follow the greeting with the question, "How may I help you".
• Ask the customer for their customer ID/phone number to fetch their details from the

system. It is always beneficial to have the customer account data on screen while speaking to the

customer as it establishes confidence in the caller's mind that you are aware about their

transactions plus it aids in answering their concerns regarding specific transactions.

• Make sure to tell the customer to please be on hold while you fetch the customer data

from the database.

• Once you have the customer data in front of you, patiently listen to the queries/concerns

of the caller.

• In case, the call is being transferred to another unit make sure you politely ask the

customer while it is being transferred to a different unit/representative.

• In case, you do need time in responding to the customer's query do not keep them waiting

for long intervals or do not respond in the negative. Rather, politely inform the customer that you

need some time to look into the specific details and that you shall call them back shortly.

• Once you have resolved the customer's queries, politely inquire if they are interested in

knowing about the company's new offers/new products, etc.

• Ensure that you maintain a courteous and friendly attitude throughout the call.

4. COMMUNICATION – Jim must know the ins and outs of what’s happening in the

workplace

• Regular Communication with Representatives – Jim can learn what his CSR’s know

by communicating with them on a regular basis. Find out where they’re having problems.
• Meetings – address concerns about the workplace and come to a decision. Give the

representatives a part in the decision-making process to give them a sense of belonging. See if

they also have suggestions for making things better.

• Feedback – Jim must take time to listen to his representatives and be ready to offer

targeted feedback so they can improve. Doing this gauges out the abilities of each and every

employee.

5. REWARD INCENTIVES FOR GOOD WORK – this helps to encourage employees to

do their best work all the time. Quotas, contests and rewards provide positive incentives in a

number of different ways. This helps the CSRs motivated and maintains a high level of morale.

6. MAINTAIN CURRENT PERFORMANCE – lastly, Jim must look back and evaluate

if the standards of performance have been met. It’s his job to maintain or better yet, improve the

current state of the workforce as a supervisor.

Solution B: Fire and Hire

If all else fails, terminate employees who are incompetent and have poor work performance but

do so with dignity and respect. After that, hire better people for the job.

Solution C: Outsourcing

Jim should consider the benefits of partnering with outside experts. Outsourcing is a huge

opportunity to help develop missing skills quickly.

PROS AND CONS OF ALTERNATIVE SOLUTIONS

Pros of having a Training Program

  Increased productivity and performance.

 Improved customer valuation.

 An opportunity to learn

 Grabs in new talent

 Boosted morale.

 Higher ROI

Cons:

 Employees can take their skills to a competitor.

 Waste of time and money

 Increased stress

 Time requirements

 Different people learn best in different ways.

 Loss of interest

Pros of Hire and Fire:

 It helps to improve company’s efficiency by firing the inefficient worker

 It will provide new opportunities for new employees or youth.

 It will raise the profitability of the companies since the company does not have to incur

any cost on employees who are not producing any output for the company.

 The fear of being fired inspires the worker to work well.

Cons:
  It will cost a lot of time to hire new employees.

 Hiring tends to cost more.

Pros of Outsourcing

 You Don’t Have To Hire More Employees

 Access To A Larger Talent Pool

 Lower Labor Cost

Cons:

 You Lose Some Control

 Communication Issues

 Problems With Quality

IV. Recommendation Solution, Implementation and Justification

Jim can solve his problem regarding his CSRs use of unorthodox style of handling customer by

implementing solution A. Since the problem stems from the planning of new unit which was not

done well, a successful and carefully selected training plan will help solve such issue. If an

employee does not have the necessary skills to do their job properly, training solves the issue

(Liveseysolar, 2013). Developing talent is the best and cheapest way to staff. Employees

appreciate being able to build new skills, improve their job performance and potentially evolve

towards more challenging roles (Mazour, 2016). Since the issue of Jim focuses on the lack of

knowledge of his CSRs concerning the proper phone etiquette, the training would be the best

solution to be made. Training has long stood as a major pillar for improving employee skills and

performance; from getting a new employee up and running to moving a promising worker up the
ranks. In the Solution provided above, there are several ways that this training could be

conducted as well as the proper steps to be followed in devising such program. Training does not

necessarily focus only in a face-to-face or orientation type of training. There are various training

theories and models provided in the recommendation that can help Jim execute the proper

training. There is simulation training used as a tool to teach trainees about the skills needed in the

real world. It provides a lifelike point-of-care learning experience, and has been widely applied

in fields such as aviation, the military, and healthcare. There are also different social training

recommended which will enable Jim and the others to interact with each other and learn from

each other. Additionally, there is also formal training which are very useful and easy to conduct.

Lastly, communication is recommended as part of the program to be able to gain feedback from

the customers who will help the CSRs to improve and to conduct meetings with the CSRs to

address concerns.

The recommended policy would work out the best for Jim because it goes with the core value of

being cost efficient. The cost associated with the policy is very less, and it has the best problem

solving quality which is faced by Jim. This plan has minimal risk because it is already practiced

by all traditional companies up to this day. Furthermore, training will help the company to retain

its employees. Investing in learning and development not only increases employee satisfaction,

but also improve their expertise. It can arm them with the information they need to position

themselves as leaders, becoming more invested in their skills and more likely to progress within

the company. This results in an increase of staff loyalty and retention.

REFERENCES:

Balance Point Team. 2016. The importance of hiring. Retrieved from

https://balancepointhcm.com/the-importance-of-hiring-the-right-employees/

Copley, Lisa. 2017. 6 reasons why customer satisfaction is important. Retrieved from

https://www.allaboutcalls.co.uk/the-call-takers-blog/6-reasons-why-customer-satisfaction-is-

important/

New media Voice, 2014. The long-term effects of bad customer service for a business. Retrieved

from https://www.smallscreenproducer.com/the-long-term-effects-of-bad-customer-service-for-

a-business/

Lazzari, Zach. 2019. Why is orientation important to the employees? Retrieved from

https://smallbusiness.chron.com/orientation-important-employees-11562.html

Francis, Abey. 2013. Four Major Theories of Training and Development. Retrieved from

https://www.mbaknol.com/human-resource-management/four-major-theories-of-training-and-

development/

MBN. N.d. What are job aids? Definition and examples. Retrieved from

https://marketbusinessnews.com/financial-glossary/job-aids/

Liveseysolar. 2013. Is training the best solution for my problems? Retrieved from

https://www.liveseysolar.com/faq-is-training-the-best-solution-for-my-problems/
Mazour, Veronika. 2016. The Importance of Employee Training and Development in HR

Management. Retrieved from https://www.exoplatform.com/blog/2016/06/23/the-importance-of-

employee-training-and-development-in-hr-management/

https://www.noldus.com/blog/what-is-simulation-training

https://coassemble.com/blog/industry/how-training-your-staff-can-help-you-retain-them/