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Performance

Virginia Doellgast

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Full-Text Articles in Labor Relations

Organizational Performance In Services, Rosemary Batt, Virginia Doellgast Aug 2017

Organizational Performance In Services, Rosemary Batt, Virginia Doellgast

Virginia Doellgast

The question of performance in service activities and occupations is important for several reasons. First, over two-thirds of employment in advanced economies is in service activities. Second, productivity growth in services is historically low, lagging far behind manufacturing, and as a result, wages in production-level service jobs remain low. In addition, labor costs in service activities are often over 50% of total costs, whereas in manufacturing they have fallen to less than 25% of costs. This raises the question of whether management practices that have improved performance in manufacturing, such as investment in the skills and training of the workforce ...