RBSM Volume 1 Questions with Verified
Correct Answers
2 - What is the key to customer retention?
sound account management
9 - What are some ways that internal management can significantly influence the
prosperity of a building service company?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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)?
,- 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?
- Recruiting and retaining cleaners
- Recruiting and developing management talent
- Increasing technical complexity
- Increasing competitiveness
, 19 - What is TQM?
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.
- 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?
- 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?
- Quality service and high customer satisfaction
- High customer retention
- Increased sales volume through new accounts
- Positive public image
Correct Answers
2 - What is the key to customer retention?
sound account management
9 - What are some ways that internal management can significantly influence the
prosperity of a building service company?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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)?
,- 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?
- Recruiting and retaining cleaners
- Recruiting and developing management talent
- Increasing technical complexity
- Increasing competitiveness
, 19 - What is TQM?
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.
- 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?
- 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?
- Quality service and high customer satisfaction
- High customer retention
- Increased sales volume through new accounts
- Positive public image
