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Managerial Challenges in Service vs. Manufacturing

Services present greater managerial challenges than manufacturing due to several factors. It is difficult to measure productivity and financial value in services. Services must meet changing demand and have less structured jobs. They require more skilled personnel who are costly to train. Service inputs may not always be effective, and talented employees are harder to retain. These challenges stem from the lack of structure in service environments compared to manufacturing. Direct customer contact introduces distractions, while manufacturing can focus on production. High turnover is also an issue in services due to lower skilled workers.

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19 views1 page

Managerial Challenges in Service vs. Manufacturing

Services present greater managerial challenges than manufacturing due to several factors. It is difficult to measure productivity and financial value in services. Services must meet changing demand and have less structured jobs. They require more skilled personnel who are costly to train. Service inputs may not always be effective, and talented employees are harder to retain. These challenges stem from the lack of structure in service environments compared to manufacturing. Direct customer contact introduces distractions, while manufacturing can focus on production. High turnover is also an issue in services due to lower skilled workers.

Uploaded by

fairmix usa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Q. 1. What managerial challenges do services present that manufacturing does not?

Ans: 1.

There are some criteria that show that the services present several managerial challenges those are not
seen in manufacturing i:

1. The managers face difficulty in measuring the effectiveness of the productivity of service.

2. To measure the financial value of the service provided.

3. It may often put hardness to meet the demand as per the requirement.

4. It is difficult to make jobs more structured of service industry.

5. Services require more skilled personnel than those of manufacturing.

6. Cost is often higher in service industry to train the employees.

7. The input of service may not be in effect always

8. Service organization need to hold or retain more talented, experienced, related to reputation,
employees in compare to manufacturing organizations.

All these challenges that are also known as obostacles for the manager of service industry

Q.2: why does service management present more challenges than manufacturing?

Ans 2 : Managerial challenges presented in services that don't surface in manufacturing are due to the
fact that service environments lack the structure of manufacturing environments. A home without
structure will constantly be subjected to obstacles. There is constant customer contact in servicing;
manufacturing does not have distractions of direct customer contact, which allows them to concentrate
on production. Service workers usually lack the skills and qualifications of manufacturing candidates
which leads to high turnover rates in service organizations. Manufacturing jobs tend to go to high skilled
workers and they remain seasoned in their positions and things run smoothly because people are
accustomed to performing their roles efficiently.

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