Page 21 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes 8. Greater concern for resource scarcity and ecology: For majority of the population financial
resources are scarce or limited but they are desirous to have a number of services. Owning
a tangible for various services require financial strength. On the other hand, many of them
may not be usable to the optimum capacity by the individuals. Hence, there is a demand
for leisure services such as car rentals, computer hardware rentals, accommodation, door-
to-door service, etc. In the recent years many economies manifested their concern towards
environment and ecological balance. Large numbers of public organisations were
promoted by governments of various countries to protect the environment from pollution
and other hazards and to maintain the ecology through conservation of forests, protection
of animals, birds, insects and other important species. They have been using various
media for campaigning and taking up several programs to make people participate in the
process. The schemes like Van Mahotsav, water conservation, etc. are examples for this.
9. Increasing number of new products: The consumers are exposed to a wide variety of choice
in the recent years. The span of life of products and services is reducing due to the entry of
new or improved products at after pace. The consumer is unable to have a total
comprehension before taking a purchase decision relating to a product or a service, as
they are busy with a number of activities. As such consultancy services are enjoying
increased demand. For example, if a person wants to invest in shares, the complex
information inputs of the share market will certainly drive him to confusion and
uncertainty. The broker or consultancy service facilitates the process to go smoothly.
10. The new youth/young: It is observed that the younger generation tends to use more and
more services than the older generations. The older generation depends on self for a
number of activities.
The younger generation could able to cope up with that peace of change only through
consumption of number of services. For example, a graduate in computers can teach himself the
new languages but it takes lot of time. By the time he develops expertise in that there is danger
that the program may be outdated or may be lagging far behind his competitors. Therefore,
they prefer to take training through institution to be competitive.
India has been pursuing a planned approach for achieving economic growth and development.
The economic activities that were to be developed were categorised into three sectors, in the
order of priority. They are primary sector, secondary sector and the tertiary sector. The primary
sector includes agriculture, animal husbandry, fishing and forestry. These areas are considered
fundamental and the foundation for further development of the economy. The secondary sector
includes manufacturing industry and construction. The tertiary sector covers services, including
distributor. The allotment of funds and the focus of development have been given to these three
sectors in a phased manner. The first three Five Year Plans gave greater focus to the primary
sector and the next two focused on the secondary sector. As a result the services sector started
growing.

Self Assessment

Fill in the blanks:

9. ....................... firms realised the importance of staff function when line mangers sub optimal
performance in decision-making relating to operational activities as well as the growth of
the business.

10. India has been pursuing a ....................... for achieving economic growth and development.
11. The ....................... sector includes manufacturing industry and construction.

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