Application of Soft Operations Research for Enhancing the Servicescape as a Facilitator

Abstract

Servicescape provides a visual metaphor for an organization's total offering. It can also act as a facilitator by either adding or hindering the abilities of employees and customers in performing their activities. Repatronage of the service provider is assumed to be dependent on consumers' level of satisfaction with the service rendered. This paper discusses the use of Soft Operations Research in dealing with the issues of designing, improving, and managing the Servicescape for organizations delivering high contact services like shopping malls. Cross-functional co-operation in planning and management of Servicescape is of paramount importance because of participation of many actors having different perceptions, conflicting interests, etc. So, analytical approaches to decision-making must take into account the human dimensions like wider consultation with different stakeholders. This emerging trend in business strategy research is reflected in the growing application of Soft OR because it applies models to help group decision-making. A selective mixing of two Soft OR methodologies — Soft System Methodology and Strategic Choice Approach — has been applied for enhancing the Servicescape as a facilitator. This mixing can enhance and enrich the process of decision-making because each methodology can adequately emphasize only a particular aspect of the problem. Root definition and CATWOE (from SSM) are used for understanding and defining the business (Servicescape) model while uncertainty space and commitment package (from SCA) are used for handling risk and uncertainty inherent in it. AHP has been used to prioritize the major dimensions of the Servicescape, which gives general interiors as the most important dimension, followed by social dimension, internal display facilities, and then exterior facilities. While comparing the conceptual model with the real world, AHP indicated intangibility element and capital cost as the major concerns. Further, AHP prioritized various uncertainty areas in the process of development and management of Servicescape, with uncertainty about working environment as the most important problematic area. To reduce it, technical response has been used in the form of research investigation and analytical analysis (using optimization tools). Finally, a conceptual model for the project was developed after a number of detailed and structured discussion rounds, using the participative bottom-up Soft OR modeling process. Traditional OR tools were also deployed to decide upon three desirable and culturally feasible decision packages. These were compared using DEA with respect to their relative performance efficiencies and finally the most efficient decision package (commitment package) was decided upon. Throughout the action-research process, the emphasis has been on group decision-making, consensus building, and extracting cognitive commitment for the process of change. Thus, wider consultation and channelizing the discussion towards a common goal using Soft OR techniques may significantly contribute towards the success of developing and managing the service environment of shopping malls.