Overview
Background of the Study
Service industry progress reveals an organizations’ capability to have a greater output or value-addition. Performance is a multifaceted construct, the determination of which differs depending on various elements that make it up Fitzgerald and Moon (2006). During the last decade,companies have discovered the critical value of non-fiscal development determination which plays a crucial role in effective management Alastair,(2001). Customerserviceisacriticalaspectinanorganization’sgrowthandhencealotofexpertiseisneededinacontinuallycutthroatbusinessenvironment.Organizationsneedtogobeyondcustomer satisfaction to ensuring their happiness.
As a result of technologicaladvancements,constraintstoattainorganizationalobjectives,the desiretoenhanceproductivenessandefficiency,thedesiretocutdownoperationalcostsandlimitthemisuseofresources,
itisimperativetoenhancethequalityoftheservicesrendered to the customers.Nowadays,customersdesiretobehandledasequalassociateswithcivilityandefficiency hence the necessity of organizations to impress upon the customers that the price paid is worth the value of the product or services offered Bradley, (2000).
Heshmati and Su(2014) undertook an investigation on the progress and determinant of work performance in 31
different Chinese provinces for the period starting from 2000 up to 2009. From their observations, they pinpointed the various factors that had an influence on industry success which include financing of capital assets, telecommunications, mean labor wages and firms ‘profitability. Sala and Silva (2011)havedemonstratedthatvocationalapprenticeshipisacrucialfactorofproductivedevelopment.Theydevelopedamulti-nation,multi-sectoraldatasetandmeasuredexperimentally theleveltowhichvocationaltraininghadimpactedtheriseintheprogress of work force productivity in Europe from 1999to2005.
Sponser
MESHACK ODHIAMBO ONYANGO and Kongere, Tom O
Principal Investigator
Abstract
Effectivecapacitymanagementinanindustry leadstoimprovedperformanceintheoperations withintheorganizationandgoodrelationshipswithitsstakeholders.Theservice industriesin Kenyaaregoingthroughprofoundchanges.Customers’needshavechangedovertimewhich haveputastrainontheprovider’sabilitytoeffectivelyprovideservicetoitscustomers.The mainobjectiveofthestudywastofindouttheimpactofcapacitymanagementonservice industryperformance.Specificobjectiveswereto:establishcapacitymanagementpracticesused inSunSetHotel-Kisumu;andassesstheimpactofcapacitymanagementpracticesonserviceindustry performance.Thestudyadoptedcross-sectionalsurveyon60employeesofSunSet Hotel-Kisumu.Theresearcherusedquestionnairestocollectprimary datafromtherespondents usingclosedendedquestions.DescriptivestatisticsandregressionandCorrelationanalysiswas usedtoanalysedata.Thestudy foundthatinventorymanagementpractices,pricemanagement practices,capacity outsourcingpracticesandcapacity forecastingpracticeshadastrongpositive relationshipwithServiceIndustryPerformance.TheseCapacity managementpracticestherefore hadapositiveinfluenceonserviceindustry performanceatSunsetHotel-Kisumu.Thestudy foundthatpricemanagementpracticesthatinfluencedserviceindustryperformanceincluded pricediscountingandregularcustomerpricingaswellasproductbundlingandpricediscrimination.ThestudyrecommendedthatSunsetHotel–Kisumushouldemployeffectivecapacity managementpracticestoensurethattheymeetthecustomersdemand.Thehotelcan haveflexiblepracticesthatallowthemtoreduceandincreasecapacity inrelationtodemand.ItalsorecommendedthatSunsetHotel–Kisumushouldinvestmoreinmarketresearchwhere it should work withexperts tocomeup withexpecteddemandcharts in its stations tocurb problemsofshortagesinsomestationswhilethereissurplusinothers.This willensure thatthey servetheircustomers better hencebetterservicequality.
