WHAT CHALENGES DO MANAGERS FACE TO

HANDLE SERVICES

Services can pose a variety of managerial challenges

for managerschallenges that in manufacturing are

either much less or nonexistent. And because services

represent an increasing share of the economy, this

places added importance on understanding and

dealing with the challenges of managing services.

1. Jobs in service environments are often less structured

than in manufacturing environments.

2. Customer contact is usually much higher in services.

3. In many services, worker skill levels are low compared to

those of manufacturing workers.

4. Services are adding many new workers in low-skill, entrylevel positions.

5. Employee turnover is often higher, especially in the lowskill jobs.

6. Input variability tends to be higher in many service

environments than in manufacturing.

7. Service performance can be adversely affected by

workers' emotions, distractions, customers' attitudes, and

other factors, many of which are beyond managers' control.