THESIS: PUBLIC SERVICE QUALITY AT HAI PHONG DEPARTMENT OF PLANNING AND INVESTMENT số đề xuất nâng cao chất lượng dịch vụ hành cơng sở kế hoạch đầu tư hải phòng DECLARATION Student: Hoang Anh Tuan Class : Ie MBA H02 After graduation enternship, I have completed the thesis “Public service quality at Hai Phong Department of Planning and Investment” It is the result of research and practical working process of the public service quality development activities at Hai Phong Department of Planning and Investment I hereby declare that the thesis: - Do not copy from any other studies without references - All data in the study are given permission by the enternship agencies If there are any violations, I will take all responsibilities for that Hai Phong, , ., 2014 Student Hoang Anh Tuan i ACKNOWLEDMENTS ii TABLE OF CONTENTS DECLARATION .i ACKNOWLEDMENTS ii TABLE OF CONTENTS iii LIST OF TABLES vi LIST OF FIGURES vii INTRODUCTION CHAPTER 1: OVERVIEW OF BASIC THEORY OF PUBLIC SERVICES AND CUSTOMER SATISFACTION .5 1.1 Overview of service and service quality 1.1.1 Service and characteristics of service 1.1.2 Definitions of service quality, public service quality 1.2 Measuring service quality model 11 1.2.1 Five gaps service quality model 11 1.2.2 Measuring service quality: SERVQUAL scale 13 1.2.3 The studies applying SERVQUAL and SERVPERF .13 1.3 Factors affecting public service quality .16 1.4 Factors assess service quality, public service quality 18 1.4.1 Factors evaluate service quality 18 1.4.2 Factors to assess public service quality 20 1.5 Definitions of customer and customer satisfaction; classification of customer 25 1.5.1 Definitions of customer and customer satisfaction 25 1.5.2 Classification of customers 26 1.6 Customer demand and customer satisfaction .28 1.6.1 Customer demand 28 1.6.2 Customer satisfaction 29 1.7 Factors affecting customer satisfaction 31 1.8 Service quality components affecting customer satisfaction 32 1.9 The relationship between service, service quality and customer satisfaction 33 iii CHAPTER 2: ANALYZE CURRENT SITUATION OF PUBLIC SERVICES AND CUSTOMER SATISFACTION AT THE PROCEDURE RECEPTION AND RESULT RETURN FOR BUSINESS REGISTRATION SECTION - HAI PHONG DEPARTMENT OF PLANNING AND INVESTMENT 35 2.1 Overview of the Procedure Reception and Result Return for Business Registration Section 35 2.1.1 Introduction about establishment process of the Procedure Reception and Result Return for Business Registration Section 35 2.1.2 Functions, tasks of the Division of Reception and Return of Business Registration 38 2.1.3 Results at the Reception and Returning Result for Business Registration Section of Hai Phong Department of Planning and Investment from 2008 to 2013 .40 2.2 Analysis and assessment of current situation of public service quality at the Reception and Returning Result for Business Registration Section 43 2.2.1 Current situation of public service quality at the Reception and Returning Result for Business Registration Section .43 2.2.2 Building model to assess customer satisfaction at the Procedure Reception and Result Return for Business Registration Section 45 2.3 Research analysis and results .47 2.3.1 Data description 47 2.3.2 Reliability analysis 52 2.3.3 Factor analysis 58 2.3.4 Regression analysis .68 CHAPTER 3: SUGGESTIONS TO IMPROVE QUALITY AND EFFICIENCY IN PUBLIC SERVICE PERFORMANCE TOWARD CUSTOMER SATISFACTION AT THE RECEPTION OF RECEIVING AND RETURNING RESULT FOR BUSINESS REGISTRATION SECTION - HAI PHONG DEPARTMENT OF PLANNING AND INVESTMENT .71 iv 3.1 Summary of research findings .71 3.2 Policy objectives 71 3.3 Solutions to improve service quality and customer satisfaction 72 3.3.1 Transparency 73 3.3.2 Procedures 73 3.3.3 Attitude of the officials 76 3.3.4 Competency of the officials 77 3.3.5 Empathy of the officials 78 3.3.6 Infrastructures .79 CONCLUSIONS 81 REFERENCES .83 APPENDIX v LIST OF TABLES Table 1.1: SERVPERF scale 15 Table 1.2: Summary of studies on service quality 19 Table 2.3: Results at the Reception and Returning Result for Business Registration Section of Hai Phong Department of Planning and Investment .40 Table 2.4: Reliability statistics of Transparency scale 53 Table 2.5: Reliability statistics of Procedure scale 53 Table 2.6: Reliability statistics of Attitude scale 54 Table 2.7: Reliability statistics of Competency scale .55 Table 2.8: Reliability statistics of Empathy scale 56 Table 2.9: Reliability statistics of Infrastructure scale 57 Table 2.10: Reliability statistics of Customer satisfaction scale .58 Table 2.11: Exploratory factor analysis for transparency scale 59 Table 2.12: Exploratory factor analysis for procedure scale 60 Table 2.13: Exploratory factor analysis for attitude scale 61 Table 2.14: Exploratory factor analysis for competency scale .63 Table 2.15: Exploratory factor analysis for empathy scale 64 Table 2.16: Exploratory factor analysis for Infrastructure scale .66 Table 2.17: Exploratory factor analysis for customer satisfaction scale 67 Table 2.18: Regression analysis summary .69 vi LIST OF FIGURES Figure 1.1: Service quality model of Parasuraman 12 Figure 1.2: Activities of providing public services 21 Figure 2.3: Procedure to direct, receive, process and return results for business registration .40 Figure 2.4: Results at the Reception and Returning Result for Business Registration Section of Hai Phong Department of Planning and Investment .41 Figure 2.5: Research model 45 Figure 2.6: Research procedure .46 vii Hoang Anh Tuan – IeMBA – H02 INTRODUCTION Statement of problem Continue to simplify administrative procedures in state management sector, especially improving administrative procedures in fields of real estate, business registration, investment registration, constructions; and so on strongly attract attentions from the authorities at all level This can be considered as not only an urgent but also a long-term issue to gradually establish a transparent administration which contributes to promote sustainably social and economic development To address this mission, the government has directed ministry, industry, and local authorities to implement solutions such as reviewing and reducing inappropriate administrative procedures; simplifying administrative procedures; applying quality management system under ISO 9000 standards; applying singledoor reception with only one seal; strengthening discipline, administrative penalty; enhancing professional qualifications for staff; investing equipments and facilities; applying information technology in addressing administrative procedures, etc In the role of a specialized department with advisory function, supporting Hai Phong People’s Committee to perform management function about planning and investment, Hai Phong Department of Planning and Investment has actively implemented mentioned practices with the purpose to create favorable conditions and the best satisfaction for organization and citizens (refer to customer in following) coming to make transactions at Hai Phong Department of Planning and Investment Whether public service quality at Hai Phong Department of Planning and Investment can meet customer need and make customer satisfied is highly questionable Moreover, another question is that how to assess public service quality at Hai Phong Department of Planning and Investment? This is also a concerned issue by state administrative agencies which supply public services, especially in the context of international economic integration and rapidly social and economic development nowadays Recognizing the importance of promoting administrative procedure reform, improving public service quality, and creating customer satisfaction; therefore, the research entitled “Public Service Quality at Hai Phong Department of Planning and Investment” is necessary for the Department of Planning and Investment in Hai Phong Research questions are as following: How is the relationship between public service quality and customer satisfaction? What factors have impact on customer satisfaction level about public service quality at Hai Phong Department of Planning and Investment? What are suggestions for improving public service quality and increasing customer satisfaction at Hai Phong Department of Planning and Investment? Purpose and specific objectives Purpose The purposes of this study are to assess the public service quality based on opinions of customers making transactions at Hai Phong Department of Planning and Investment; to study on the relationship and factors affecting customer satisfaction; to give suggestions and recommendations to improve public service quality at Hai Phong Department of Planning and Investment Specific objectives Examine fundamentally theoretical issues of service, public service, quality management, quality management in public service, customer and customer satisfaction to have an overview on this issue Collect and analyze survey data from customers using public services at Hai Phong Department of Planning and Investment Give some suggestions to improve quality and efficiency in public service performance toward higher customer satisfaction Subjects and scope of the study Subjects of the study Public service quality, customer satisfaction when using public services at Hai Phong Department of Planning and Investment, and factors affecting customer satisfaction about public services performed by Hai Phong Department of Planning and Investment Scope of the study regulate the development of regulations on administrative procedures under the authority of the local government, firstly focus on the areas where the citizens are interested in, such as business license, construction permits, certificate of house ownership, land use rights, residential status, administrative violations, notarized, etc It also needs additional rules on the document transfer and recordkeeping through inter-system (circulation of files across the network) In detail: - Rectify the notification of additional records on the documents’ return date: this is the one causing the most discomfort for the citizens and should have correction by clear rules for the time processing and application to all administrative processes (current applied in urban areas) - Rectify the multiple cumulative documents of a day: If the number of documents received in one day is more than the number of documents solved per day, the return date must plus time to processing the documents Avoiding the situation the citizens come to receive the documents when not finishing the process - Need to build method for notification additional documents by phone, email - Shorten the returning document time by the software that integrates automated text message or email notification of finished documents for citizens to get the results before the returning date 3.3.2.2 Strengthening the application of quality management systems The quality management system ISO 9001:2008 has implemented in the state administrative agencies: On 20/6/2006 the Prime Minister issued Decision No 144/2006/QD-TTg on the application of quality management systems in accordance with ISO 9001: 2000 on the activities of state administrative agencies and Decision No 118/2009/QD-TTg on September 30, 2009 of the Prime Minister on the amendment and supplement of some articles in Decision No 144/2006/QD-TTg The department of planning and investment of Hai Phong is the first municipal administrative agency building quality management system and has been performed it for almost 10 years Thus, the efficiency of administrative activities has been raised up very high This quality system therefore should be continued to 75 apply in the other agencies, while continuing to improve and extend the application of the system In order to achieve more sustainable and better results in administrative reform in general and the quality management system according to ISO 9001:2008 in the public service, a number of solutions are presented as follows: First, the administrative reform needs to be done in a synchronous and resolute way throughout the central to local levels to ensure un-interruption between districts and agencies On the other hand, the district also needs to establish the administrative order and discipline at all levels and in all sectors, especially in the construction sector, as well as the strict sanctions for all groups, individuals and state officials who have violent, delayed or harassed actions The provisions must be institutionalized timely in a consistent basis to implement in a same way and avoid arbitrarily applications Second, there must be investment funds from the budget to reasonably apply advanced technology in the state management and supply of public services in order to shorten the time solving administrative documents Third, the models which are considered successful in administrative reform should be reviewed and directed to extend the applications to have the consistency of implementation Especially the application of ISO standards needs to be extended for sectors that are interested by the citizens such as houses, land, capital construction investment 3.3.3 Attitude of the officials - Conduct training and re-training knowledge, professional skills, qualifications for the officials and staffs Each year, the Department should develop and implement training programs for officials to update new information, regulations, mechanisms and state policy in the field of public administration - Specific the training program in the field of public administration in all perspectives The Department leaders need to focus and plan the annual training programs with logical training content layout of laws, mechanisms, policies, investment, business management, etc 76 - Training foreign language skills, information technology, communication skills, etc to equip civil servants to meet mission requirements in the new period - Priority building professional style, behavior, manner and attitude of the officials to perform as stated “public officials are servants of the people toward the satisfaction of the citizens served - Improve efficiency of suggestion box, a mechanism to encourage citizens and organizations to give comments about the qualifications and behaviors of officials in charge of public services - Monitor and evaluate the quality of the civil servants in the implementation tasks on the basis of customer’s satisfaction about the administrative transactions - There are reward and sanction mechanisms for the staffs performing their tasks through the customer’s comments on the practices and responsibilities of officials, on the basis of consultation with colleagues and inspectors The inspectors will have periodic identification of the public servant to give proper comments about the quality, ethics and responsibilities of staffs - Collaboration between office leaders, department leaders and officials in charge of public administration, creating close relationships with the civil servants, and encouragement to create and preserve cultural to the officials - Periodically examine the knowledge required for officials to perform their duties in the field of public administration, this is the solution to test the capacity of civil servants - Early implement enforcement for officials and managers in the field of providing public services through planning Every type of organizations needs officials who know how to work and a good job with the knowledge, skills and attitudes to meet the requirements of the job position The need of the public agencies is the officials who have high performance quality as well as noble qualities such as loyalty, committment, bright and enthusiastic These qualities are necessary but difficult to measure 3.3.4 Competency of the officials The spirit of serving the people must be trained to the public officials: they need to understand the role and responsibilities of their assigned work and have indoctrinated with the belief “with all your heart and with all your strength to serve 77 the Fatherland, serve the people” of President Ho Chi Minh In communication with the citizens, the officials need to keep warm and proper attitude; to ensure every word is a commitment; to listen and solve problems; to provide accurate information; to guideline thoroughly to limit the coming time to a procedure Due to the several different citizens who come for receiving and returning the documents, the officials should be aware of exposed objects to make appropriate guidelines for their understanding and ensure the instructions enough easy to follow They also need to comply with the rules and working hours of the agency; absolutely not annoying, extortion the citizens with the aim to make profits with the following solution: The construction of official records about monitoring the work process and regulations to ensure the written, administrative paperwork is accurate are needed At the same time, there must be close coordination between the divisions to regularly review process and improve the procedures from the stage of receiving, handling, transferring to returning the documents ensuring the pledged quality standard of the Department of Planning and Investment Develop a reasonable reward regime and immediately discipline the officials for negative expression 3.3.5 Empathy of the officials Agreeing is the feeling of the officials that is the same as other people’s about the same event Empathy means understanding how other people feel, though the officials not feel like that Empathy is the ability to invade to other people’s feelings and understand their needs reflected in their eyes First, the customers must sympathize with the officials before they buy the product or service Therefore, if the officials can make the customers smile and agree with her/him, the chances of success will be significantly increased Empathy with clients is a quality that a official in the department of receiving and returning the business registration required Because of only by sympathy, the staff can listen and understand the customer’s aspirations The customers need to be listened to their thoughts, ideas and reflections on the public service Thus, the staffs of the department need to appease the customers with gentle and thoughtful words 78 3.3.6 Infrastructures A modern and dynamic office is a need for a central district of the country’s largest city So far the receiving and returning documents receptions in the Hai Phong’s Department of Planning and Investment has furnished including furniture, air conditioning, etc Other machines are serial number getting machine, administrative progress resolving machine, consulting people machine, etc However the reception of receiving and returning the documents still need to be arranged more logical and to be extended because at peak times the rooms are very crowded and cramped Thus, the rooms’ layout needs more logical parts to create a friendly environment for communication between the public servants and citizens and is equipped with cabinets to keep documents tidy The application of information technology in the state management is a tool to reduce paperwork, improve quality and get efficient in the management and administration of the state apparatus and to serve the citizens It is the solution to promote administrative reforms to achieve more sustainable results The webpage of Hai Phong’s Department of Planning and Investment has provided to the citizens the information about law, especially the provisions relating to procedures, processes and administrative fees via internet in a convenient and immediate way referring to frequently asked questions and answers on these sectors Therefore, information technology is seen as a tool to support the administrative reform and is the priority conditions for building electronic form offices Hai Phong’s Department of Planning and Investment have adopted electronic queuing system, reading and publishing sequence number machine at reception of receiving and returning documents since 2004 The administrative documents lookup system through the phone that was launched in 1/2006 can help people to examine their administrative documents by telephone at home or by mobile phone to reduce the citizens’ travel time and shorten the citizens’ administrative handling time Thus, with the application of information technology and modern techniques, all organizations and individuals are able to exploit and explore the necessary 79 information and are provided certain administrative services with high quality At the same time, the citizens can also control the tempo, outcomes and accountability of public officials and government in addressing the requirements of the citizens; thereby creating a close and friendly relationship between the government and the citizens and vice versa In order to further improve the operation quality of the bureaucracy, the state should form electronic store Application of information technology in state management has become popular in all areas of operation of administrative agencies at district level One of the directions to complete and improve the efficiency of this operation is to gradually modernize the administration and the daily operational activities of the leaders; creating conditions for the agencies to participate in solving most of the state administration through document management system Thereby, the process of computerizing the operation including the mode of receiving, storing, exchanging, searching for information, processing, handling work to improve the quality and efficiency is very necessary A key factor in the process of forming electronic stores is to build a system of electronic document repositories, a fundamental remedy for delayed or missing documents (especially land records, some old and tear documents) to provide information in a timely, fast, convenient, accurate and systematic manner Thus, the state must improve the application and use of information technology tools, create work habits in the network environment and use of electronic information to advance management level and solve tasks with the support of effective software, contributing to the implementation of administrative reforms At the same time separating managerial competence and network operators; competent to handle and manage the sending-coming documents Standardization the templates for common administrative documents to precede formal standardized types of public administrative documents is the next step to Next is the standardization internal circulated document to ensure the timing and progress of each task; overcome delays in each division during circulation of documents to clear the authority and accountability 80 CONCLUSIONS In summary, researching on customer satisfaction about public service at the Reception and Returning Result for Business Registration Section of Hai Phong Department of Planning and Investment is one of factors for leaders of city and departments to determine the current situation of providing public services and aims to complete in the future This is one of the solutions to shorten time to enter market of enterprises On the basis of application of the scale measuring components of service quality (SERVPERF), the relationship between service quality and customer satisfaction and customer satisfaction model of Parasuraman and Spreng - Mackoy, the thesis has identified factors affecting customer satisfaction, quantifies the impact of each factor on customer satisfaction, and develop the first model on customer satisfaction about public services at the Department of Planning and Investment of Hai Phong city The research results show that the components of public service and affecting customer satisfaction including: empathy, competency of staffs, infrastructures, procedures, transparency and attitude of staffs Expectations and desires of the customers about public services are basically shown through research results It is consistent with the results of customer surveys before data analysis With public services, particularly in the field of public administration services, customer desired to receive polite attitude, courteous, reliable of staffs, as well as transparency of process, procedures, method of payment, fees, and time to provide service On the basis of this research results, the thesis proposed a number of solutions and recommendations to enhance customer satisfaction based on the actual perception of the positive aspects and limitations in providing public service, through factors illustrating the systematic and generalized characteristics of the research model, such as raising the level of knowledge, qualities and professional skills of staffs; research to use "electronic signature" and "handling administrative procedures through the Internet", have Center for Industrial supports, invest in the 81 system "automatically queues", have hotline for inquiries from customers The Department should registration for intellectual property of Logo and Slogan; better implement issued quality policy aims to shorten the time to enter the market of enterprises The People's Committee of the City should organize to apply researching on customer satisfaction with public services in the city, to respect the independence of research implementation 82 REFERENCES REFERENCES Đinh Văn Mậu, Nguyễn Văn Thâm, Võ Kim Sơn (chủ biên) tác giả (2009), Hành nhà nước cơng nghệ nhà nước, NXB Khoa học kỹ thuật, Hà Nội Đinh Văn Mậu, Lê Sỹ Thiệp, Nguyễn Trịnh Kiểm (chủ biên) tác giả (2010), Quản lý nhà nước ngành, lĩnh vực, NXB Khoa học kỹ thuật, Hà Nội Lê Mai Chi (2006), Dịch vụ hành cơng, NXB lý luận trị,Hà Nội Nguyễn Đình Phan TS Đặng Ngọc Sự (2012), Giáo trình Quản trị chất lượng, NXB Đại học Kinh tế Quốc dân, Hà Nội Nguyễn Hồng Sơn TS Phan Chí Anh (2013), Quản lý chất lượng doanh nghiệp Việt Nam, NXB Đại học Quốc gia Hà Nội, Hà Nội Nguyễn Ngọc Hiến (chủ biên) tác giả (2006), Hành cơng, NXB Khoa học kỹ thuật, Hà Nội Nguyễn Kim Định (2010), Quản trị chất lượng, NXB Tài Nguyễn Đình Phan (2005), Quản lý chất lượng tổ chức, NXB Lao động – Xã hội Trần Phương Trình, Chi phí chất lượng, Viện cơng nghệ Châu Á 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IeMBA – H02 APPENDIX QUESTIONNAIRE This questionnaire aims to improve the quality of receiving and returning documents of administrative procedures, serving better for organizations and citizens contacting to Hai Phong Department of Planning and Investment Your participation will be kept confidential and the results will not be provided to any person There is no right or wrong answer; we are only interested in your opinions Please answer the following questions by checking into only box for each answer Sincerely thanks for your comments! Part 1: General information Please provide your personal information by marking X into your choice: Gender: Male Female Age: Under 30 From 30 to 40 From 40 to 50 Over 50 Education: High school Vocational school College University or higher Where you get information on public services: Website of People's Committee of Do Son District Newspapers, radio At the reception place Other Part 2: Your assessments Please indicate the level of your agreement with the statements below and mark X on the your choice: o Components Stron gly disagr ee Some how disagr ee (1) (2) Transparency Administrative procedures and forms are published fully at the reception place Administrative procedures and Neither agree nor disagre e (3) Agree (4) Strong ly agree (5) forms are published in the website of People's Committee of Do Son District Administrative procedures are simple and easy to understand Receiving and returning documents are accurate Information and status of handling documents are easily found in the website of People's Committee of Do Son District Administrative procedures I The number and requirements about contents of administrative documents at People's Committee of Do Son District are reasonable Time to handle a document is reasonable as public procedure Procedures and handling steps as published are reasonable The administrative procedures are in accordance with the law and regulations Time to receive documents is reasonable and convenient II Attitude of staffs Staffs who receive documents have polite attitude when receive and return documents Staffs who receive documents have friendly attitude when answer questions from customers Staffs who receive documents not cause any inconvenience for people when handling their documents Staffs who receive and return documents are fair with all customers Staffs who receive documents take high responsibility for all customers’ documents V Competency of staffs Staffs who receive documents have good communication skills Staffs who receive documents have knowledge and skills in handling related works Staffs who receive documents possess good professional knowledge and skills related to the job Staffs who receive documents and consulting customers give reasonably solve problems of customers People's Committee of Do Son District settle customers’ complaints timely Empathy of staffs Customers easily contact to staffs who are responsible for their documents at the departments Staffs try to deal with the document flexibly and promply Customers’ requirements handled are reasonable cared and Staffs easily understand customer's requirements the Staffs are patient to listen to customers’ opinions Infrastructure I Location and place of room for receiving and returning documents are convenient for customers Room for receiving and returning documents is spacious and airy Room for receiving and returning documents has adequate facilities (air conditioning, desk, chair, etc…) Equipments are quite modern (automatic numbering machine, computer, computer for customers to look up documents, etc…) II Customer satisfaction You are completely satisfied with transparency of public services You are completely satisfied with administrative procedure of public services You are completely satisfied with attitude of staffs who provide public services You are completely satisfied with competency of staffs who provide public services You are completely satisfied with empathy of staffs who provide public services You are completely satisfied with infrastructures - Types of public services you participated in □ Registration for establishment of enterprises, branches and representative offices, registration for establishment of business places □ Registration for edited the content of business registration □ Registration for enterprise transformation □ Registration for pausing operations of enterprises, branches and representative offices □ Registration for winding up operations of branches, representative offices, and business places - Other comments: - If possible, please let us know: Your full name: Address: Sincerely thanks for answering our questionnaire! Best wishes for health, happiness and success!!! ... quality at Hai Phong Department of Planning and Investment” It is the result of research and practical working process of the public service quality development activities at Hai Phong Department... specialized department with advisory function, supporting Hai Phong People’s Committee to perform management function about planning and investment, Hai Phong Department of Planning and Investment has... customer in following) coming to make transactions at Hai Phong Department of Planning and Investment Whether public service quality at Hai Phong Department of Planning and Investment can meet