Question

As an operation manager of a pharmaceutical company discuss broadly the impact of service quality management on the organization performance

Answer 1

Pharmacy plays an important role in providing pharmaceutical services required for health care of patients and it also helps in economic development of the nation. The demand of pharmaceutical products are very high and the nature of this business is very competitive as the success is largely depends on providing service quality to patients.

Service Quality is independent variable and Organizational Performance is dependent variable. Service Quality means overall assessments of customers towards the services offered by an organization. On the other hand, Organization Performance means achievement of corporate objectives.

Let us discuss the impact of service quality on Organizational performance.

Impact of service quality on the Organization performance

Providing service quality has a great impact on organizational performance as it helps to achieve customer's loyalty, pharmaceutical companies and to gain market advantages. There are various factors which impacts the organizational performance are as follows:

• Impact on customer satisfaction: The service quality has a huge impact on customer satisfaction. Understanding customer satisfaction with service quality expectation can increase the repurchase and enhance the customer willingness to recommend the service to others.
• Impact on the Brand Image: Brand Image plays an important role in creating the customer satisfaction and gain customer loyalty. By not providing quality service to the patients will impact the Brand Image of pharmaceutical company.
• Impact on Supplier relationship: If the service quality is not satisfying amongst the customers then it will have a direct impact on supplier relationship because no one will keen to supply the pharmaceutical products in the market.
• Impact on Employee Satisfaction: In pharmaceutical company, the high satisfaction of employees with provides high quality of service to the customers which in turn increase the financial performance of the organization. If employees are not satisfied then it will lead to bad quality service to the patients as well as bad financial performance of the organization.

Organization performance is usually measured by patients view point, their feedback on the services provided to them. Relationship between service quality and organizational performance is to focus more on customer satisfaction of all service quality management practices as they both are closely connected to each other. This means that if there is increase in service quality will substantially lead to increase in organizational performance.