Final answer:
The initial step in developing standards of service is to determine the system of interest and to gather and analyze relevant information about goods, services, production methods, and target demographics. Management should engage with stakeholders and use research to understand customer expectations clearly.
Step-by-step explanation:
Developing Standards of Service
The first step that management should take when developing standards of service is to determine the system of interest and identify what information is given. This involves an evaluation of the types of goods and services required to meet people's needs and wants. Management must also contemplate what goods will be produced, how they will be produced, and for whom they will be produced. An initial analysis to collect and analyze sources such as relevant research, data, and existing literature is crucial.
It is important to make decisions based on a clear understanding of customer expectations and the company's capability to meet those expectations. This can be accomplished by engaging with stakeholders, conducting market research, or analyzing customer feedback. As management proceeds with this, they might find it useful to sketch or visualize the workflow to effectively communicate and refine these service standards within the organization.