ACTUAL QUESTIONS AND CORRECT
ANSWERS
2 - What is the key to customer retention? - CORRECT ANSWER sound account
management
9 - What are some ways that internal management can significantly influence the prosperity
of a building service company? - CORRECT ANSWER - communication with the
customer: resolution of problems, fulfilling expectations of customer
- knowledge and skill resource for workers: helping workers to improve their methods,
represent the company well, and fulfill customer expectations
- building worker morale to minimize turnover and provide more consistent service
9 - What are 6 management trends in the building service industry over the past 25 years? -
CORRECT ANSWER - Close cash flow management
- Strong emphasis on marketing
- New methods of planning
- Expanding services
- Diversification
- Competition
10 - What is the difference between diversification and expansion? - CORRECT
ANSWER - Diversification: "offering services that are not closely related to basic
cleaning and may require specially trained worker" (p. 11) - EXAMPLES: maintenance of
lighting, exteriors, grounds, HVAC; security services; snow removal; construction cleanup;
fire and water damage restoration; pest control; carpet sales and installation
- Expansion: "offering new types of cleaning services that are closely related to basic
cleaning, such as carpet and floor care or perhaps upholstery and drapery cleaning" (p. 10)
,10 - What are common solutions to overextension of the mission of a cleaning company? -
CORRECT ANSWER - drop all business under a certain dollar amount
- start subsidiary companies to service smaller accounts, often using a key person from the
parent company who shows entrepreneurial abilities
10 - Why is there so much competition in the cleaning industry? - CORRECT
ANSWER - relative ease of getting into the business (does not require large investment
of money)
10 - What is a negative effect on the industry as a whole of smaller startup companies bidding
low then eventually going out of business due to inadequate cash reserves? - CORRECT
ANSWER - winning bids by submitting low bids tends to drive prices down, making it
hard for remaining companies to make a reasonable profit
12 - What are 4 changes in the design of today's buildings that affect building service
companies? - CORRECT ANSWER - Energy conservation
- Increase in rentable space
- Changes in perceptions and attitudes of tenants
- More luxurious office space
14 - What are 10 overall trends in the building service industry today (choose from these 12)?
- CORRECT ANSWER - Continued Competitiveness (grow or go out of business)
- High diversity with contracting companies of all sizes
- The growth of franchising (5% of the total market [what exactly is franchising?])
- Continued labor shortages (some solutions: hiring handicapped and other disadvantaged
workers; introduce more attractive compensation and benefits packages)
- Changing labor force (traditionally, mostly young men between 18-25 years of age; now,
more women and immigrants, as well as men seeking a second income stream)
- Automation and computerization (computer and smartphone use [WinTeam, eHub, Excel,
Word, Outlook]; hi-tech cleaning equipment like improved scrubbers, backpack vacuums,
and sanitizer equipment [e.g. Clorox has a line of high-tech room sanitizing products for
hospitals])
- Increasing government regulation (equal opportunity, discrimination, sexual harassment,
wage/hour issues, occupational safety)
,- Stricter safety regulations (safety and training programs have become more important along
with increased government regulation)
- Increased importance of training: cleaning techniques, chemical use, equipment use, safety,
security, company policies
- Controversy over illegal subcontracting (some companies try to classify their workers as
"independent contractors" to save money [e.g. to avoid FICA payments and other benefits] -
the courts define this classification narrowly, so this practice can easily lead to legal action)
17 - What are 4 challenges facing building service companies today? - CORRECT
ANSWER - Recruiting and retaining cleaners
- Recruiting and developing management talent
- Increasing technical complexity
- Increasing competitiveness
19 - What is TQM? - CORRECT ANSWER Total Quality Management: "The company
and the customer work together to reduce cost, improve service, and adapt to changing
workplace requirements."
19 - List 5 reasons the building service industry is important. - CORRECT ANSWER -
Provides a clean work environment for customers and tenants
- Controls germs and the spread of disease
- Provides business opportunities for entrepreneurs and managers
- Provides full and part-time jobs for thousands of Americans
- Provides advancement opportunities for managers and workers
20 - What are 5 major factors of realizing quality service and profit? - CORRECT
ANSWER - The company's name (reputation): superior service
- Work (standard of quality, morale [attitude of workers toward job at hand]): aware of needs,
communication of their value to them --> workers must see themselves as an essential part of
any success achieved
- Information: promotes stability
- Leadership: awareness of other people's dignity and their desire to do their best
, - Customers (we form a partnership with them): do not exploit or manipulate them; build
trust; remain competitive in terms of productivity, efficiency, and quality
25 - What are 6 measures of success in the building service industry? - CORRECT
ANSWER - Quality service and high customer satisfaction
- High customer retention
- Increased sales volume through new accounts
- Positive public image
- Growth opportunities for employees
- Increased profitability
26 - What is the key to being a successful manager? - CORRECT
ANSWER "overcome...obstacles with a positive 'can-do' attitude without putting blame
on the company, the customer, or the employee"
26 - How can managers become a valuable asset? - CORRECT
ANSWER "successfully communicate company needs to the customer and customer
needs to the company" --> they thereby build a cooperative rather than an adversarial
relationship with the customer
26 - Describe the organization of your company's operations division. - CORRECT
ANSWER 1. Operations manager
2. Area/contract manager
3. Lead/supervisor
4. Cleaner
27 - Describe the typical functions of a building supervisor, area manager, operations
manager, and general manager. - CORRECT ANSWER - A building supervisor has
direct responsibility for the nightly or daily cleaning of buildings.
- An area manager supervises the servicing of assigned accounts to conform to direct cost
budgets, quality standards, and customer satisfaction.