Organizational Aspects of Complaint Management

Abstract

There are a number of organizational questions that must be clarified when an active complaint management system is established. With respect to the company’s organizational structure, decisions must be made as to the assignment of responsibilities to particular organizational units. In this regard, the primary question that must be answered is related to the degree of centralization or decentralization. The choice among centralized, decentralized and dual complaint management depends on a number of factors. These include the type of product, number of customers, type of distribution and centrality of customer contact. If a complaint management department is established, the extent of conceptual-strategic control and operative tasks in the complaint center must be clarified. The firm must also decide how the complaint management department will be integrated into the corporate structure (staff department, line function or matrix organization) and whether it can be designed as a profit center. It is also necessary to reflect the extent to which tasks can be outsourced to external service providers.