Using IT to Leverage Human Resources in Services
Description
Discussion of the Internet and IT to date concentrates on how they will replace, rather than support, human service providers. While this approach is appropriate for a few firms, it is inadequate for many. The Internet and other information technology leverage human resources in at least three ways: through the facilitation of communication, automation, and measurement.
Under certain conditions, communication with customers and employees is both less expensive and more effective using of the Internet. Automation enables front-line service providers to concentrate their efforts on more high-value-added service delivery. This improves jobs and service quality, enabling organizations to deliver more value to both employees and customers, potentially increasing efficiency and effectiveness. Measurement enables organizations to obtain superior information on customers, including satisfaction attitudes and loyalty behaviors, allowing organizations to target their service efforts toward appropriate customers. Measurement also helps organizations to collect information on employees, in particular their satisfaction, loyalty, productivity, and capability. Just as information helps firms determine which customers to invest in, it helps firms to understand which employees warrant the greatest investment.
Although scholars have advocated communication, automation, and measurement for decades, service managers have not taken advantage of numerous opportunities to implement them. This may be changed by the Internet and information technologys potential to enable their deployment at lower cost and with greater effectiveness.