Organizational Development: A Manual for Managers and ... - FPDL
Organizational Development: A Manual for Managers and ... - FPDL
Organizational Development: A Manual for Managers and ... - FPDL
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of a set of interrelated activities which trans<strong>for</strong>m inputs into outputs’. Any result is always multifaceted,<br />
as is the mission itself. Still, it is common to consider a product as an intended output of<br />
the main technological process that is designated <strong>for</strong> consumption outside the organization.<br />
Products may exist in the <strong>for</strong>m of goods, material articles, <strong>and</strong> services. Service provision has<br />
been defined as an economic activity that does not result in ownership, <strong>and</strong> this is what<br />
differentiates it from providing physical goods. Services can be described in terms of their main<br />
attributes (www.en.wikipedia.com):<br />
• Intangibility - They cannot be seen, h<strong>and</strong>led, smelled, etc. There is no need <strong>for</strong> storage.<br />
This attribute makes it difficult to evaluate or compare services prior to experiencing the<br />
service.<br />
• Perishability - Unsold service time is ‘lost’, that is, it cannot be regained. It is a lost<br />
economic opportunity. For example, a doctor that is booked <strong>for</strong> only two hours a day cannot<br />
later work those hours — she has lost her economic opportunity. Other service examples<br />
are airplane seats (once the plane departs, those empty seats cannot be sold), <strong>and</strong> theatre<br />
seats (sales end at a certain point).<br />
• Lack of transportability - Services must be consumed at the point of ‘production’.<br />
• Lack of homogeneity - Services are typically modified <strong>for</strong> each client or each new situation<br />
(customised). Mass production of services is very difficult. This can be seen as a problem<br />
of inconsistent quality. Both inputs <strong>and</strong> outputs to the processes involved in providing<br />
services are highly variable, as are the relationships between these processes, making it<br />
difficult to maintain consistent quality.<br />
• Labour intensity - Services usually involve considerable human activity, rather than<br />
precisely determined processes. The human factor is often the key success factor in<br />
service industries. It is difficult to achieve economies of scale or gain dominant market<br />
share.<br />
• Dem<strong>and</strong> fluctuations - It is very difficult to plan the production of services. They are<br />
provided by request. Dem<strong>and</strong> can vary by season, time of day, whatever else or without<br />
any reason.<br />
• Buyer involvement - Most service provision requires a high degree of interaction between<br />
client <strong>and</strong> service provider.<br />
The current trend is to view any product as a service, considering goods as part of a service to the<br />
consumer. For example – instead of selling a car to anybody who wants to buy it as it is, a dealer<br />
provides service that consists of consulting, proposal of a suitable model, specification of all<br />
features, ordering a specific car from the producer, delivering it, preparing it <strong>for</strong> use, providing<br />
follow-up technical service, etc. – everything is to be done <strong>for</strong> each particular client.<br />
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