Labor Intensive
Installing machines and computers on a car factory’s assembly line or in an ice cream factory can reduce the number of employees. However, compared to many organizations in other industries, H&T organizations require a great many employees. To put it simply, H&T organizations are labor intensive. This is because personal interactions and experiences are important parts of services, and employees play a key role in this process. Despite using many machines, computers, and technological developments, H&T organizations still rely primarily on their employees to deliver a memorable and positive experience. Being served and treated nicely by employees is a major factor in getting repeat customers.