Determinants of client control mechanisms in service organizations

Abstract

Service organizations require information in order to provide services (Bowen, 1986; Mills & Margulies, 1980). Clients are the source of that information, resulting in interaction between clients and service organizations to exchange information and complete the service process. Interaction with clients results in uncertainty for service organizations; uncertainty about whether clients will be disruptive, whether clients will have necessary information, and whether clients will be able to perform a required role in the service process. Service organizations respond by using control mechanisms to channel client behavior and direct the information exchange. Client control mechanisms vary across service organizations. The purpose of this study was to identify the determinants of client control mechanisms. It was hypothesized that characteristics of interaction (response function and client status) and information (information clarity and technical expertise) would be related to seven client control mechanisms (regulative rules, operative rules, centralization, organizational supervision, implicit and explicit physical setting, and social controls). The research was conducted in 57 units of service organizations. One manager from each unit was personally interviewed with a structured questionnaire. Three employees of each unit completed a self-administered questionnaire. Each questionnaire addressed characteristics of service operations and clients. Findings indicated that the degree of ambiguity of information exchanged was related to controls limiting access, to controls requiring client identification, to control through the implicit physical setting, and to less use of operative rules. The degree of standardization of information being exchanged was related to operative rules; the average length of employee education was related to client orientation and education programs. Characteristics of interaction were not associated with client controls. The results indicate that service organizations are information processing entities and mechanisms used to control client actions are related to characteristics of information being exchanged. When information cannot be clearly specified, controls are used which are vague and ambiguous, such as the interior design of an operation. When information is specific and known, rules and procedures can be used to direct client behavior and interaction. The degree of ambiguity in the organization-client relationship is related to the degree of ambiguity in client controls.