Managing People in Service Sector

This report evaluates the different people management activities in the service sector and their impact on organizational success. It discusses leadership, customer orientation, recruitment, training, and control mechanisms. Examples from various organizations are provided to illustrate the importance of these practices. The report emphasizes the need for a skilled and empowered workforce to meet customer demands and maintain efficiency.

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MANAGING PEOPLE IN SERVICE SECTOR
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Executive summary
The report aimed at evaluating the different people management activities that are undertaken by
the service sector organizations in order to facilitate the customer- oriented operations. The
factors that were enumerated in the research clearly delineated the examples of diverse range of
firms in the markets. The development of positive workplace culture helps an organization in the
service sector to support the uninterrupted functioning of the processes. Again, communication
with the employees helps in making the same aware of the objectives and culture of the business.
It also supports the initiative of the businesses in maintaining the efficiency of the people
management and enhances the quality of the offerings. The recruitment of the skilled employees
in the service sector organizations helps the same in enhancing the efficiency of the operations
while adhering to the market standards.
The report also reflected on Training and development of employee skills assists an organization
in continuing with the proficiency of the operations. Empowerment to the employees is again a
critical factor towards the success of a service sector organization. The operations that are
undertaken by the organizations are monitored and feedbacks are gathered with the purpose of
enhancing the process design. On the other hand, Control mechanisms involve strategies that are
undertaken by the service sector organization with the purpose of perfecting the different
processes that are undertaken by the same. Therefore, it has been noted that the smooth
functioning of the efficient and skilled workforce assists an organization in upholding the
efficiency of the operations in accordance to the needs of the business.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Discussion....................................................................................................................................4
2.1 Leadership and management.................................................................................................4
2.2 Customer orientation related culture.....................................................................................5
2.3 Recruitment of skilled employees.........................................................................................6
2.4 Training and empowerment...................................................................................................8
2.5 Operations, monitoring and control mechanisms..................................................................9
3. Conclusion and recommendations.............................................................................................10
3.1 Conclusion...........................................................................................................................10
3.2 Recommendations................................................................................................................11
References......................................................................................................................................12

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1. Introduction
People management is one of the major factors that delineate the success of any industry
while developing processes to gain a competitive edge in the respective markets. Giannakis and
Harker (2014) stated that the development of the people management systems in the different
sectors does not only contribute to the sustenance through continuous profitability but also
innovativeness. In this context, the enhancements in the service sectors are dependent on the
human resource management and empowerment for facilitating uninterrupted operations.
The different changes that are undertaken by the service sector organization are
dependent on the assessment of the macro and micro environments of the businesses. In this
relation, the macro environmental assessment of a service sector based organization like
customer needs, market trends and competitor strengths helps in understanding the strategies for
gaining a competitive edge. The diverse range of services that are provided by the organization is
based on the identification of the needs of the customers in the relevant markets. On the other
hand, the micro assessment of the needs of the people and empowering the same with suitable
resources assists an organization in continuing with the productivity. Therefore, people
management initiatives assist an organization in the service sector to maintain the process
innovativeness in adherence to the emerging needs of the employees.
The purpose of undertaking the discussion is to assess the different people management
mechanisms that are undertaken by several organizations in the service sector and the manner in
which it assisted the venture in maintaining their sustenance. The discussion will draw examples
from the different organization in the service sector for the better understanding of the context of

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people management and the manner in which it helped the organizations in gaining a competitive
edge.
2. Discussion
2.1 Leadership and management
The leadership and management structure of an organization helps the same in
maintaining the efficiency of the operation in accordance to the needs of the customers. Ogbeide
et al., (2017) stated that the leadership structure of a service sector organization influences the
culture and the operations of the same. For an example, the Marriot Hotels follows a definite
style of leadership and management, which has helped the organization in adapting the
operations in accordance to the diverse changes in the environments. The concerned organization
undertakes Contingency management, which has rendered the organization with flexibility in the
operations while developing in sight on the market position and the evolving trends
(Marriott.com., 2019).
On the other hand, the management at Marriot Hotels aimed at empowering the
employees for maintaining the efficiency of the operations, which has supported the growth of
the same in the different markets. Abukhader (2016) stated that the leadership style of an
organization influences the people management related needs of the same. The diverse range of
changes that are planned by the management of Marriott is readily accepted by the workforce,
which has helped the business in gaining a competitive edge in the markets. On the contrary,
Levin, Berliner and Merdjanoff (2014) noted that the development of the suitable governance
structure in an organization supports the growth of positive culture for maintaining the efficiency
of the operations that are undertaken by the employees. Selden and Sowa (2015) stated that

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motivation and empowerment that is provided by the management to the employees supports the
operations of the same. For an example, IBM has taken steps to facilitate innovativeness in the
IT processes through motivating the employees. The motivation and encouragement that is
provided by the concerned organization has helped the same in upholding the efficiency of the
innovativeness (Ibm.com., 2019). The concerned organization has taken steps to develop a
governance structure along with the open- door policy, which has helped the business in
facilitating the free movement of innovative ideas among the hierarchy model. Farzin et al.,
(2014) stated that the motivating and encouraging the employees to engage themselves with the
processes has helped the organizations in the service sectors to maintain the efficiency of the
operations in adherence to the needs of sustenance. Therefore, leadership structure and
governance has helped the organizations in the service sector in continuing with the operations
through active involvement of the employees in the different innovations and change processes.
2.2 Customer orientation related culture
Customer orientation is one of the major objectives of the service sector organizations. In
this relation, the customer- oriented approach in the organizations is successfully implemented
through the participation of the employees in the different activities. Baldwin (2016) stated that
the development of the services sectors are dependent on customer oriented based culture of the
same. For an example, Medtronic has successfully designed the corporate culture of the same
through assessment of the requirements of the customers. It has been reported that the concerned
organization holds 50% of the market share in the core heart devices industry (Medtronic.com.,
2019). On the other hand, the variety of products and services that are developed by the
organization has helped the same in adhering to the emerging needs of the customers. Therefore,

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in this relation, it might be stated that the corporate culture of a service sector organization is
dependent on the customer orientation.
Molina-Azorín et al., (2015) stated that the development of the corporate culture and
making the employees aware of the same helps an organization in supporting the uninterrupted
functioning of the same in accordance to the market demand. The concerned organization
developed different steps to communicate and induce the culture of the same in the employees,
which has helped the same in achieving sustainability. Yarimoglu (2014) stated that the
induction of the corporate culture to the employees through meetings and sessions helps a
venture in upholding the quality of the offerings in adherence to the requirements of the
customers. In this relation, Medtronic undertook every possible step to develop a positive
corporate culture and inducing the same among the employees to facilitate the improvement in
the quality of the offerings in accordance to the demand of the customers. Again, Deloitte has
empowered the operations of the employees through the development of diverse range of
communicative media so that the employees might directly communicate with the clients for
identifying the specific needs of the same. The example of Deloitte is significant for the lucid
understanding of procedures that are undertaken by the current service sector organizations for
enhancing the employee output (Deloitte., 2019). Therefore, the communication of the corporate
culture with the employees assists an organization in upholding the efficiency of the propositions
while adhering to the demand of the customers.
2.3 Recruitment of skilled employees
Selden and Sowa (2015) stated that the sustainability of the service sector organizations
are dependent on the development of processes and uninterrupted operations of the skilled
workforce. On the other hand, Abukhader (2016) noted that the recruitment of the skilled

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workforce helps a service sector organization in developing the service offerings through
frequent innovations and experienced tactics. Therefore, most of the organizations in the service
sector prefer experienced and skilled employees over a fresher while recruiting. In this relation,
the recruitment and selection processes that are undertaken by the service sector organizations
emphasize more on the experience and skills of the candidates over the other qualification based
certificates.
Levin, Berliner and Merdjanoff (2014) stated that the experienced employees have a
preferable knowledge relating client needs and customer handling which would support the
objectives of service sector organizations in adhering to the corporate values of the same. The
customer centric operations of the service sector organizations has helped the businesses in
upholding a congruity between the deliverables and the customer demand. For an example,
General Motors has taken steps to recruit skilled and efficient employees for supporting the
uninterrupted functioning of the processes (Gm.com., 2019). The recruitment of the skilled
employees in the organization has helped GM in maintaining the quality of the services while
adhering to the elevated expectations of the customers. Baldwin (2016) stated that customer
oriented operations of an organization in the service industry aims at developing the processes in
accordance to the needs of the client organizations or direct customers. On the other hand, the
enhanced quality of the services that are provided by the organization has helped in enhancing
the brand image of the same while operating in diverse global economies. The different changes
that are undertaken by the service sector organizations are dependent on the changing
preferences of the customers and market trends (Abukhader, 2016). In this relation, the
recruitment of skilled workforce in the organizational model will support the dynamic growth
and expansion of the businesses in the markets. Therefore, the recruitment of skilled workforce

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in the organizational model supports the growth and expansion of the service sector
organizations while adhering to the changing preferences of the customers.
2.4 Training and empowerment
Yarimoglu (2014) stated that training and induction assist an organization in making the
employees aware of the processes and the manner in which they might be worked upon for
gaining a competitive advantage. In this relation, most of the service sector organizations have
taken steps to develop suitable training and induction processes for maintaining the efficiency of
the operations in accordance to the demand of the customers. Giannakis and Harker (2014)
noted that training and induction assists a service sector organization in making the employees
aware of the of the corporate culture and the manner in which the customer expectations might
be fulfilled. For an example, UnitedHealth Group, which is a healthcare based organization, has
taken steps to develop a consolidated training and development program for the employees
(Unitedhealthgroup.com., 2019). The suitability of the training in the different fields of
healthcare operations has helped the business in maintaining the efficiency of the processes in
accordance to the needs of the customers. On the other hand, the program also helped the
organization in empowering the activities of the employees through transfer of skills and
knowledge and thereby maximizing their engagement in the processes that are designed by6 the
venture.
Farzin et al. (2014) stated that most of the companies empower and motivate the
activities that are undertaken by the employees through the development of suitable rewards and
recognition programs. The reward and recognition programs assist an organization in
appreciating and motivating the efforts that are undertaken by the employees for gaining the
common goal of the business. Ogbeide et al., (2017) stated that the enumeration of the reward

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and recognition program helps an organization in upholding the operations of the same through
encouraging the active participation of the employees in the different processes. For an example,
the Hyatt Group of Hotels has taken significant steps to empower the employees through the
utilization of different rewards and recognition programs related to performance in the different
departments (Hyatt.com., 2019). The reward and recognition programs assisted the concerned
organization in maximizing the engagement of the employees in the different processes and
enhancing the quality of the operations. Therefore, the development of suitable training and
empowerment programs by the service sector organizations assisted the same in maintaining the
proficiency of the operations that are undertaken by the employees in adherence to the needs of
the customers.
2.5 Operations, monitoring and control mechanisms
Baldwin (2016) noted that the continuous monitoring over the processes helps an
organization in supporting the activities that are undertaken by the workforce. The different
activities that are undertaken by the service sector organizations are dependent on the evaluation
of the expectation of the customers. On the other hand, the monitoring activities of the
organizations are done with the purpose of identifying the different flaws in the process design
and the activities that are undertaken by the employees in alignment with the common goals of
the business. For an example, Denso Corp, the Japanese automotive part supplying organization,
has taken steps to monitor over the processes that are undertaken by the same with the view of
retaining the quality of the propositions and the services that are promised (DENSO., 2019). On
the other hand, the monitoring over the processes has helped the concerned organization in
creating a benchmark for the operations in adherence to the expectation of the client
organizations. Monitoring over the processes has helped the concerned organization in gaining

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the trust and loyalty of the client organizations. Abukhader (2016) stated that the trust and
loyalty of the customers towards a service sector organization assists in building a positive brand
image in the markets. On the other hand, the enhanced quality of the propositions has helped the
same in gaining a competitive edge over the other players in the markets.
Baldwin (2016) stated that the development of the control mechanisms has helped
different firms in maintaining the efficiency of the propositions in accordance to the changing
market demand encountered by the same. For an example, DLA Piper, which is a law firm has
successfully implemented different control mechanisms in order to manipulate the different
services that are provided by the same to the client organizations (DLA Piper., 2019). The
concerned organization has taken steps to develop the resources and making the employees
aware of the different modifications for maintaining the efficiency of the operations. On the
other hand, the control mechanisms have helped the organization in validating the services that
are provided by the same to the client organizations. Therefore, the enumeration of the different
control mechanisms has helped the service sector organization in empowering the activities that
are undertaken by the employees and thereby supporting the changing demand of the customers.
3. Conclusion and recommendations
3.1 Conclusion
Therefore, from the above analysis it might be stated that the different aspects of the
people management in service sector organizations are dependent on the common goals of
customer centric operations. The customer- oriented operations of the service sector
organizations has assisted the same in shaping the different activities while adhering to the
demand of the customers. The research enumerated the different people management activities

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that are undertaken by diverse range of service sector organizations. The research also aimed at
understanding the manner in which the service sector organizations achieve the competitive edge
through assimilation of diverse range of people management activities.
3.2 Recommendations
 Development of agile policies in the organizational setting- The employee friendly
policies of an organization assists the same in reducing the rate of staff turnovers.
Therefore, the service sector organizations must take steps to develop suitable policies
through consultation with the employees. It will assist the organizations in enhancing the
rate of employees satisfaction and retention.
 Communication with the stakeholders- Undertaking effective communication with the
stakeholders assists an organization in developing the quality of the propositions and the
productivity of the same in adherence to the growing requirements of the customers. On
the other hand, the effective communication with the stakeholders assists an organization
in bringing forth modifications in the existing processes.
 Developing customer-oriented culture- Customer oriented culture of a service sector
organization will assist the same in developing and empowering the activities that are
undertaken by the workforce in alignment with the common goals of the businesses.
 Screening before recruiting candidates- Screening the employees before recruiting will
assist the service sector organizations in employing skilled candidates for the job roles.
The skilled recruits will contribute to the smooth functioning of the business systems in
adherence to the needs of the customers.

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 Developing appropriate monitoring and control mechanisms- Development of
suitable controlling and monitoring mechanisms will be assisting the organization in
developing the activities in accordance to the requirements of the customers.
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