description and analysis of problem

description and analysis of problem - Problem background...

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Problem background and information Currently, the primary conflict confronting Dorm Room Movers (DRM) is deciding whether or not to insource incoming customer service. In the past, the company outsourced all incoming customer service requirements to a third party company located on the east coast. When DRM initially began conducting business in 2007, the owner decided to outsource the customer service because it was financially logical, and required less on-site hired staff. As the company increased in size so did the volume of incoming customer service inquiries. Initially, the third party company responsible for customer service was more than capable of handling the increased flow of customers calling in. At the time, it was not impairing the ability of Dorm Room Movers to establish a high quality brand image while expanding its customer base. As the company expanded to 19 campuses across the country, it became increasingly more difficult for the third party to keep up with demand. According to partial owner Matthew Grossman, the company has begun to realize that outsourcing customer service across the country is hampering the company’s ability to accomplish its “long term goal of achieving a truly seamless and scalable business structure”. Along with a difference in time zones and the incapacity of the company to handle high volume customer service the company knows they have two options moving forward. The first option is to continue outsourcing the service, but switch to a locally operated firm that is prepared to handle higher volumes of customers as DRM expands. The second option is to internalize customer service and take sole responsibility for handling all the logistics associated with that decision. Before deciding which option is best it’s important to develop the dynamics associated with each option. Application of Organizational Behavior Models 1. Functional Conflict a. A functional conflict is one that in general serves the organizations interests (Kinicki & Kreitner, 2009, pg. 277). The conflict of poor customer service is a functional conflict because it requires the company to make constructive changes which in the long term can significantly improve the quality of service they are providing. This will ultimately help the organization in its pursuance of a truly seamless business structure. Whether DRM decides to pursue localized outsourcing or insourcing of customer service both options should result in an overall improvement of service. 2. DRM’s Normative Decision Making Model DRM does not possess complete and dynamic research and information to the extent that it can be assumed the owners are making the optimal decision for the business. Therefore, there are 2 factors that negatively affect DRM’s ability to choose the best solution.
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