Distinctive Characteristics of Service Operations
In services, a distinction must be made between inputs and resources. For services, inputs are the customers themselves, and resources are the facilitating goods, employee labor, and capital at the command of the service manager. Thus, to function, the service system must interact with the customers as participants in the service process. Because customers typically arrive at their own discretion and with unique demands on the service system, matching service capacity with demand is a challenge.
For some services, such as banking, however, the focus of activity is on processing information instead of people. In these situations, information technology, such as electronic funds transfer, can be substituted for physically depositing a payroll check; thus, the presence of the customer at the batik is unnecessary. Such exceptions will be noted as we discuss the distinctive characteristics of service operations. It should be noted here that many of the unique characteristics of services, such as customer participation and perishability, are interrelated.
Distinctive Characteristics of Service Operations In services, a distinction must be made between inputs and resources. For services, inputs are the customers themselves, and resources are the facilitating goods, employee labor, and capital at the command of the service manager. Thus, to function, the service system must interact with the customers as participants in the service process. Because customers typically arrive at their own discretion and with unique demands on the service system, matching service capacity with demand is a challenge. For some services, such as banking, however, the focus of activity is on processing information instead of people. In these situations, information technology, such as electronic funds transfer, can be substituted for physically depositing a payroll check; thus, the presence of the customer at the batik is unnecessary. Such exceptions will be noted as we discuss the distinctive characteristics of service operations. It should be noted here that many of the unique characteristics of services, such as customer participation and perishability, are interrelated.
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