Question

1. Discuss the 5 reasons productivity is difficult to improve in the service sector. How does the productivity of some service sectors in the US compare to those in Germany (telephone, banking) and Japan (retailing). What are the reasons for the lower productivities in Japan and Germany?

Answer 1

Following are the five reasons productivity is difficult to improve in the service sector, these are as stated below:

• Service sector is labor intensive, for example, for teaching job, it depends on teachers,
• Service sector focused on bringing unique approach or unique ideas, for example, in teaching job, every teacher has their own way to teach students.
• Here, professionals perform some kind of Intellectual tasks,
• Service sector may not be fully automated or fully mechanized, it brings trade off using expert and technological advances.
• Quality performance could be difficult to measure in service sector.

Productivity of some service sectors in the US is usually high as compare to those in Germany (telephone, banking) and Japan (retailing), the reason is like United States laws that could protect shopkeepers from the discount activities. Here, organization consider to improve their productivity that further can reduce or lower costs, or with the help of improving such productivity, organization can get economic of scale.

Productivity low at the country Japan and Germany, here, are few reasons like quality of service at the country Japan and Germany is comparatively high, they are usually expert focused, and higher working hours could be another reason to have lower productivity at the country like Germany and Japan.