The Service Encounter

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 The Service Encounter

Human Resource Management (HRM) serves as a tool for internal and external

environments’ satisfaction where services are harmonized towards the goals of the organization.

The business department is responsible for maintaining customer satisfaction and improving

employees’ relationship and working conditions within the organization. Human Resource

Management (HRM) is crucial in an organization as it determines the level of gratification of

customers and establishes the nature of employee experience at work. An organization with good

human resource management services reaps benefits from increased profit margins as production

of goods or services is enabled through better work environment and customers are satisfied with

the products. Over the last decade, Self-Service Technologies (SST) have changed the operations

of organizations through automation where service staff have lost significance in their roles,

however, human resources in businesses are still essential although some business sectors have

replaced laborers with digital machines due to the accrued benefits.

First, with the introduction of Self-Service Technologies, the importance of service staff

as their roles have either shifted to machines or ended. As businesses embrace technology, the

job requirements of the service staff become limited especially in the manufacturing sectors.

About 25% of the jobs in the business organizations in the US experience constant distraction

due to the use of digital technologies in production of goods and services (Hua, 2016). The

introduction of digital technologies continues to impact on service staff in organizations where

most of them suffer. In particular, automation in the industrial sector results to displacement of

humans who worked in such stations, for instance, when computers are used in record keeping.

In the recent past, continuous shift in methods of production has influenced service staff where

industries use capital intensive approaches in most of the operations. As a result of using digital
equipment, some workers have lost jobs or changed their roles in industries since they cannot

perform similar functions as machines. By 2030, robots will have displaced 20 million

manufacturing jobs, which implies that service staff continue being at risk of unemployment in

industries. Many companies desire digitalization to improve customer service delivery and to

ease the manufacturing operations. As digital technologies have better and faster output than

human resources, organizations adopt modern equipment despite the adverse effects on the

employees.

Secondly, before the introduction of SSTs in businesses, majority of the employees were

stationed at customer service and delivery sections. The manual activities of packaging, sealing,

customer advice and interaction involved many service staff who derived satisfaction from happy

clients. In the past, businesses only had physical locations where customers would visit, which

ensured that employees’ jobs as they were stationed in one location (McQuilken, 2016). On the

other hand, since the introduction of the SSTs, customer services have changed over time as

employees’ contribution is limited. For instance, businesses adopt e-commerce approaches to

market goods through online platforms. The use of websites and social media as advertising

platforms has resulted in decline for salespersons and marketers (Lee & Lee 2018). Also, the

transfer of business transactions into digital channels such as purchase and delivery of items has

rendered many service staff jobless. As goods are posted on the internet and descriptions

provided, there is limited consultation with staff at the physical locations of such businesses. As

a result, many employees are fired since their services are cut short, which many businesses

prefer due to the reduced expenses.

On the other hand, with the introduction of self-services to customers, companies retain

few employees who run the equipment or maintain software in the business. Businesses force
human personnel to change their roles or their entire careers since digitalization is costly and

such firms cannot afford to spend double expenses on the same work. According to Doyduk,

70% of the intended digital transformations in businesses fail due to resistance from employees

(Bayarçelik & Doyduk 2020). Such work-related tensions are experienced in these organizations

which seem to fire service staff and have no plans to engage them for training or different roles.

As a result, employees and labor unions start battling any transformation that poses risk to their

jobs in the organizations. However, some companies opt to train the workers to instill skills of

operating the machines or equipment for continuous production of goods and services. Out of the

digitalization, the workers benefit from such companies although other work-related deficiencies

may arise such as pay cuts. The major changes in firms involve shift in service delivery where

customers directly serve themselves as they interact with digital resources in the business. As a

result, employees are often locked out of the customer interaction and service, which deprives

them satisfaction and eventually some leave the jobs.

Furthermore, humans are still important in running multiple sections in businesses despite

the introduction of Self-Service Technologies. As the oldest form of resource, human capital is

still valued in many organizations even after incorporating digital technologies which serve

similar purposes as workers. Many enterprises have still retained laborer in the face of the

digitalization era in the employee and customer services sector. Due to the effect on customer

satisfaction and delivery of services, many businesses prefer digital technologies over humans,

however, these machines or operations need human input and such enterprises are forced to

retain workers. Automation in business operations still rely on humans as employees in the

organizations still operate the machines, make huge decisions, think creatively , provide business

insights, and various sectors cannot run without human capital (Hua, 2016). So far, the use of
digital technologies is still limited in many organizations although the sector is increasingly

dynamic over time. When businesses integrate such technologies in daily operations, human

employees are given the mandate to run and maintain them for maximum utilization of the

resource. Technologies which are adopted in business operations such as financial accounting

systems, software and productivity tools, require human control such as installation and

maintenance. Many businesses which adopt digital assistants have still retained human resource

as a drive towards the application and overseeing machine operations. As digital systems require

to be installed, integrated with the business needs, and to be regularly assessed for maximum

output from them, human resources is still relevant in the business operations.

Also, customer related automation technologies require human intervention to run

smoothly, for instance, digital orders for fast foods still need humans to prepare or deliver. A

large proportion of customers still prefer interpersonal interaction while purchasing products

from stores. Such customers need the human communication to express their needs that only

people would provide or find in the products. In businesses where customers value human

interaction, employees are retained to maintain buyer’s satisfaction, loyalty, and returning

behavior (McQuilken, 2016). For instance, diagnosis and treatment of diseases by clinicians is

unavoidable in health facilities. Individuals who seek medical care expect to find human doctors,

nurses and therapists, therefore, health facilities have to retain such professionals to satisfy the

customers. Most of the customers prefer human interpersonal interactions during diagnosis or

treatment over digital assistants which may recommend prescriptions vaguely. Where customer

preferences point towards human interactions, then the business empower employees to promote

sales in the business. Also, humans still play essential roles in businesses despite the integration

of digital technologies, such as in communication and advertising. Although the introduction of

digital assistants such as Siri and Alexa have transformed the business communication and

instruction, human voice is still valued and applied in the technologies. In advertisements, people

advocate for use of certain products and not machines as customers will only relate to their kind

for clarification on usage and importance of such goods or services.

Besides, human beings make the primary business decisions despite the integration of

Self-Service Technologies. The application of automation and machine language technologies

around an office requires human intervention as such software depend entirely on the data given

by a person. Notably, machines do not eliminate human judgement, instead, they change only

where necessary or when required (Hua, 2016). Despite integration of artificial intelligence,

humans have the spirit of inquiry which is valued in businesses and becomes irreplaceable.

Decision making in business relies on the social and economic factors which are only

incorporated by humans who can input emotions and value of relationships that digital

technologies may not offer. As a result, human resource management in businesses still value

employees to involve people’s spirit and perspective in the organization’s operations.

Moreover, some sectors in business cannot run without human capital as the basic

resource. For instance, the health sector where personal interactions are valued despite the

dynamic incorporation of digital technologies. The Self-Service Technologies continue to

influence change in the occupational mobility and skills in organizations (Hua, 2016). Although

diverse technology is applied in the diagnosis and treatment of chronic medical conditions,

human interactions are valued where clinicians provide hope and care to patients to fasten

recovery. In health, automation is applied in treatment machines and equipment, however, the

expertise and direct contact to patients has to be provided by humans. Some sections in health

facilities are irreplaceable such as nursing care where only humans can associate with the
patients’ emotions. Also, in education, although the automation chances are moderate in

activities outside the classroom, the quality of formal learning depends on actual contact of

learners and instructors. In particular, teacher-student contact are proved to result in better

performance in academics and later in life. In the learning process, teachers act as surrogate

parents, therefore, physical contact is still preferred in many states as the basic approach in

education. Besides, as education involves multiple dimensions including social and normative

learning, interpersonal contact with the peers, instructors and other workers, equip learners with

communal skills. Although technology is applied in education, the essence of interpersonal

interaction influences the human resource teams in the sector to continue having individuals in

the system as the main resource. As a result, human resource departments in various businesses

still incorporate people who coordinate services provision by the equipment and control their

operations.

Consequently, many service sectors have replaced human resources in various

organizations where digital equipment either provide output that humans cannot or operate

faster. Incorporation of SSTs in businesses signify the transformation which many businesses

have adopted with expectations of fast operations and better customer services. Major sectors

which have adopted the digital technologies include the manufacturing sector. Industries

continue to adopt SSTs and digital technologies as most of the processes involved are predictable

and can fall into a schedule. About 59% of all manufacturing or industrial plants in the United

States are automated, where digital technologies are applied in processing, branding, and quality

control (McQuilken, 2016). Most of the operations in industrial plants have the technical ability

to be automated, where workers may be replaced or trained to operate such machines. Activities

such as welding, cutting, soldering, and brazing are designated to machines, which can perform
them faster and with high precision than humans. As a result of the application of capital-

intensive methods, little human effort is required in industrial plants, which accounts for the

massive job loss in the sector.

Additionally, the food services are integrating self service mechanisms in the business

operations. Activities which were traditionally left for people are continuously automated

through use of Self-Service Technologies (Ko, 2017). Cooking, washing dishes, preparing hot

and cold beverages continue to become machine dependent. Digital kitchen equipment and

artificial intelligence services are integrated in the food processing stages. For instance, the

Momentum Machines’ hamburger-cooking robot is applied in the kitchen where the digital

equipment can prepare over 300 burgers within one hour. Other activities in restaurants and

hotels are also automated where computers store customer data and prepare financial statements.

Another sector where digital technologies are greatly integrated is in the retailing

businesses, such as chain stores. Many retailers have opted to integrate SSTs where customers

can purchase items on their own, a process which is fast and does not require direct contact. In

particular, chain stores utilize SSTs such as Automatic Vending Machines and Kroger’s digital

price tag technology to remotely serve the customers (Pandey & Chawla 2018). As a result of the

digital advancement, service staff are limited to operating computers and ensuring continuous

flow of work. From an organization’s perspective, the integration of SSTs and digital

technologies have successfully increased customer satisfaction and profit margins. According to

Forbes, businesses which integrate digital transformations in customer service experience

increase in economic gains by 30% and clients’ satisfaction rises by 20%. Many organizations

seek digitalization where technical potentials for self-service exist with an aim of reducing

human capital costs and increasing profits (Ko, 2017). As a result, such enterprises record
growth in their businesses over time by transforming the technical dimensions of the

organizations.

Subsequently, the major benefits which businesses accrue with the digitalization include

in high output, improved quality and fast operations within industries. Regarding customer

experience, companies which incorporate digital technologies record increased return habits

among buyers and level of satisfaction. Most of the customers prefer transactions which are fast

when purchasing items from retailing stores. According to a 2018 research on online customer

experience, 86% of the buyers are willing to pay more for quality customer services provided by

a business entity, especially where digital technologies are applied (Pandey & Chawla 2018).

Digital interactions with customers about products, sales or discounts offered increases the

buyers’ level of satisfaction and results in more loyal clients. Companies are able to reduce

expenses associated with human resources when they integrate capital intensive methods of

production, especially digital technologies. For instance, the use of bar code readers in major

retailing enterprises in the United States helped to cut labor costs where every business sought

the digital gadgets. As digital technologies take up less space and efforts to price goods, many

employees are displaced by the services. Due to the ease of sales in businesses through such

technologies, enterprises record higher rates of stock turnover, which contributes to growth of

the entities. Also, Evaluation of the costs and returns of digital technologies is constantly done in

bigger companies to establish the output and profit margins which may result from them. Where

the returns exceed the costs and prove to last for a long period of time, companies opt to utilize

such self-service technologies.

In conclusion, self-service technologies are incorporated in modern business entities

where customer satisfaction and increased operations in the businesses are targeted. Comparing
to the traditional operations and digitalized processes in businesses, the roles of service staff

have changed or ended. With the introduction of SSTs, many organizations have extended

business operations to online platforms where customers choose and buy the products

themselves. As a result, employees in such corporations are forced to shift into other roles, such

as maintaining software or running machines within industries. Due to the increased output from

production and positive change in customers experience, industries continue to utilize digital

technologies and machine language. However, acquisition of human resources is still essential

for organizations as digitalized machines need installation, maintenance, and incorporation with

business objectives. Also, human staff provide insights for businesses that adopt self service

technologies in their application and flexibility in future use. Decisions which relate to human

experiences are made by the workers where such machines cannot reflect the exact needs of

customers. Many businesses such as manufacturing industries and food-related enterprises

continue to digitalize the internal operations and train workers for continuous production.
 References

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evaluations across different self-service technologies. Journal of Services Marketing.

https://doi.org/10.1108/JSM-07-2014-0263.

Wei, W., Torres, E., & Hua, N. (2016). Improving consumer commitment through the integration

of self-service technologies: a transcendent consumer experience

perspective. International Journal of Hospitality Management, 59, 105-115.

https://doi.org/10.1016/j.ijhm.2016.09.004.

Ko, C. H. (2017). Exploring how hotel guests choose self-service technologies over service

staff. International Journal of Organizational Innovation, 9(3), 16-27. http://www.ijoi-

online.org/attachments/article/51/Final%20Issue%20January%202017%20-

%20Section%20B.pdf#page=16

Lee, S. H., & Lee, D. W. (2018). Changes in Distribution Industry Using Information and

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TECHNOLOGY AND CONVERGENCE, 8(1), 23-30. http://jaitc.ki-

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https://doi.org/10.1108/IJRDM-01-2017-0005.

Bayarçelik, E. B., & Doyduk, H. B. B. (2020). Digitalization of Business Logistics Activities and

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