Managing the Service Organization - Essay Example

Managing the service organizations Over the past decade, service organizations have grown greatly beating the goods organizations, these organizations deals and earn their revenue from the provision of intangible services. These organizations are in the service industry sector, and the tertiary service sector of the industry, the service organizations differ from the goods organizations mainly in five aspects, this are goods, inventory customers, labor and location. the service organizations tend to provide intangible goods; this may include customer care services, training, maintenance, and even consultancy. The service organizations do not have an inventory, they mainly create a service when the customer needs it, also they do not produce this services until the customer needs it, Unlike in goods where the product is produced for the market. Service organizations develop and design the content and the scope of their services in advance of any order; they produce services tailored for their customers need. In terms of labor service organizations employ people with specific skills and knowledge in the service discipline it tends to offer, the labor in this organizations is intensive and cannot be automated, the service organizations do not require to have a service site, the people delivering the services can be located at any site, they can have their sites located at any point of the world. The service organization comprises of seven major industries, this includes, advertising, mailing, reproduction, consumer credit reporting and the stenographic services, which include the building services for example, maintained, cleaning and even exterminating services. The service organizations provide a variety of business services to establishments and basis of a fee or even a contract basis. These organizations currently influence the employment levels of individuals, the organizations level of growth has shown a high level of job creation for individuals. Over the past decade the rate of job growth is more than four times compared to that of the goods organizations, this whole concept of increasing in employment levels signifies the scope of growth in the service organizations. An example is in the personnel supply organizations, in this category the number of employees has increased greatly over the past decade. The main importance of these organizations is product offering, this organizations involve offering services in retail health human services and education. The service organizations constitute to more than 50% on the growth domestic product in almost all countries in the world. The current change in growth of economy results from the service organizations, they hold an important key to growth in the United States; this mainly comes from the creation of employment. The employment creation resulting from the service organization result to these changes in the general economy, currently people tend to leave their jobs in the goods industries to join the service industry. High growth rate in the service organization comes from more human capital and less natural capital than in the goods organizations. This less need in natural resource results to less pressure that leads to sustainability. Stats show that the growth recorded in the service industry against the good industry is 5% to 3% respectively. The trade of services currently is now international; services trade in 2013 recorded a 4.7 trillion dollar increase, which is a 5% increase. Computer and information services were the most dynamic sectors between 2008 and 2013 recording a growth rate of 9.1% average growth annually, the services organizations that followed were the cultural, personnel and recreational services recording an increase of 8.9%. The last group to record an increase in the service sector was the professional services that recorded an increase of 6.8%. Since 2008, the developed countries including United States recorded an annual average increase of 7.5 in the computer and information services. Other growing organizations over the decades are in the financial and the insurance sector; they record an annual growth of 11%. However, the developed economies still show a low increase in the service sector than the developing countries, a growth of 7%, this rate of growth is still higher that the growth in the goods organizations. In the United States economic rebirth service organizations show dramatic expansion, this fall mainly in the aspect of employment these organizations offer, statistics show that employment over the last decade is high in the services sector than in the goods sector. A good example of a growing service is a health care service mainly the private nursing services for the increasing graying community. This has led to a lot of job opportunities to nurses to take care of the old ones in the home. Basically the growth in the service organization in the service industries is shown in terms of the increasing number of employees, however there are other factors such as being cost effective and not needing the use of natural resources. There has been a sluggish grow the for the goods organizations as compared to the high growth rate in the services organizations. In general, the goods organizations record a fall in 2012 recording a 2.0% as compared to the growth in 2011, recorded at 5.2% .research shows that currently, for the new goods in the goods organizations; 75% of this goods fail, failing to even hit a profit of 7.5 million dollars in the first year. The sluggish growth in the goods industry in the year 2013 resulted to the combination of the moderate import growth in the developing economies and flat import demand in the most developed economies. On the part of the goods export side, both economies only managed to record an increase of only 1.5%, which is a very small increases. For the goods organizations, the last two years recorded a sluggish growth recording low gross domestic product, over the past ten years trade in the goods sector was very low (Pettijohn, 2013, p3) In the year 2013, the sluggish growth in the goods organizations mainly resulted from high unemployment levels, uncertainty about timing of federal reserves in the United States. In addition, the fluctuations of the dollar and the euro affect the goods organizations, the rise, and the fall of the euro cause uncertainty in the economy. That is the expectations may be high during the whole production stage but once the goods hit the market, the results are bad as a result of immediate fluctuations. For example in 2013 the value of the dollar in the merchandise exports in the world rose by 2.1%, this implies that the value for exports rose from one year to the next. At the same time, the commercial services of the world rose by 5.5%. In the same organizations, the employees quit at a high rate mainly resulting for the introduction of the new health care insurance. People are leaving the goods organization to join the service organizations the main reason that result to the current sluggish growth in the goods organizations include the quitting of the employees, the organization focus much on manufacturing and designing new goods, this mainly results to an increase in the lack of co-operation within the organizations (Harte, 44). Other causes for the sluggish growth within the goods organization is the failure to adopt to current rapid growth in almost all sectors, competition between the different sector organization, for example the rapid growth in the services organizations beating the goods originations. Another cause of sluggishness in the goods industry is an increase in the revolutionarily of the goods, this revolutionary capability of goods may lead to a lack of market for the goods. There are services organizations whose success comes from adapting to the service organization management methods on the other hand there are those goods organizations that fail due to the failure to adapt to the methods of service organizations. An example of a service organization in the United States of America is the US global mail; the company specializes in forwarding of mails worldwide. It is a successful company due to its fast methods in providing their services; they provide technologically advanced, personalized, and private services to all their customers. The company works with several other organizations such as the expats which ensure that the variety of services meets the unique demands from all their customers. This service organization specializes in international shopping and shipping, personalized mail forwarding, personalized package forwarding, small businesses warehousing mail management solutions for different relocation companies and all the mailing solutions. (Altaf, 2009) The organizations success starts from its openness to all persons all over the world regardless of the color, the race, religion political preference, and even the gender. The Rotarians, they meet mainly weekly during the lunch breaks; the organizations motto guides the activities within the club; the motto is "service above self." The management of the organization adapts to the service organization methods, which mainly results to its success. An example of a company failing due to the lack of the adaptation of this managements system includes the border group located in Michigan United States. This failures in the company resulted from an increase in focus on the stocking of more CDs and DVDs, which preceded a plunge in the sales of these items as the customers, gravitated to the digital delivery systems. Also, the companys expansion of its retail footprints that led to the companies longer-term leases, which would have resulted to the company’s bankruptcy Reference Harte, H., & Dale, B. (n.d.). Improving quality in professional service organizations: A review of the key issues. Managing Service Quality, 34-44. Indicated, N. (n.d.). Supervision and Performance: Managing Professional Work in Human Service Organizations. PsycCRITIQUES. Altaf, Z. (2009, December 1). Understanding Performances in Organizations. Economic Review. Pettijohn, S. (2013). The non profit sector in brief: Public charities, giving and volunteering. Retrieved December 10, 2014, from http://learningtogive.org/papers/paper41.html Our Structure. (n.d.). Retrieved December 10, 2014, from https://www.rotary.org/en/about-rotary/our-structure Learning to Give, Philanthropy education resources that teach giving and civic engagement. (n.d.). Read More