SERVICE ORGANIZATIONS
Service sector accounts for 57.2% of Indias GDP. Service sector includes hotels, hospitals, airlines, financial services, banks, insurance companies, university etc. Software and entertainment are also included as service organizations
Quality control: Products can be inspected for quality , whereas service quality cannot be judged until the service is rendered.
Provide quality service to their customers. Principal asset is the skill of its professional staff, which doesnt appear in the Balance Sheet. Include R&D firms, law firms, accounting firms, architectural firms, consulting firms and advertising agencies. Output cannot be measured in physical form. Work done is non-repetitive. Professionals are reluctant to keep track of how they spend their time and therefore there are complications in measuring their performance.