1. Organizational Level Service Technologies
Changing focus from production to service 15

2. Differences Between Service & Manufacturing Technologies
Tangible product
Intangible
Inventory
No inventory
Capital asset intense
Lab/Knowledge intense
Little direct customer involvement
Much more
HR less important
Most important
Quality measured directly
Perceived
Long response time
Short
Site mod important
Site extremely important

3. Differences Between Service & Manufacturing Technologies
Examples:
SERVICE: airlines, hotels, consultants, health care, law firms
PRODUCT & SERVICE: fast-food outlets, cosmetics, real estate, stockbrokers, retail stores
PRODUCT: soft drink companies, steel companies, automobiles, mining, food processing plants

4. Designing Service Organizations
Structure
Service
Product
Boundary spanners
Few
Many
Decision making
Decentralized
Centralized
Formalization
Lower
Higher
Employee skills
High
Skill emphasis
Inter personal
Technical

5. Departmental Technology
Departments often have characteristics similar to service technology, providing services to other departments within the organization.
Each department has its production process that consists of a distinct technology
Framework used on the understanding of departmental technologies was developed by Charles Perrow.

6. Framework Uses Two Elements: Variety: Analyzability:
Task variety, frequency of unexpected and novel events that occur in the conversion process, if they are high Variety is high
Analyzability:
When the process is analyzable, the work can be reduced to mechanical steps and participants can follow a set pattern to solve problems.
The reference for solutions is SOPs, manuals, text books, etc.
Not so if the problem has low analyzability
Here the reference for solution is much less explicit and lies in implicit or tacit transfer of knowledge which is built through accumulated experiences.

7. Framework VARIETY To what extent would you say your work is routine?
Do most of the times people solve the problem/issue the same way?
Are members performing repetitive activities in doing their jobs?
ANALYZABILITY
To what extent is there a clearly known way to do the major types of work you normally encounter?
To what extent is there an understandable sequence of steps that can be followed in doing your work?
To do your work, to what can you actually rely on established procedures and practices?