Are traditional management principles obsolete in today's service-driven economy? This paper examines the limitations of "scientific management," tracing its origins back to Adam Smith, and argues for a shift towards "service management" to meet the challenges of the post-industrial era. In a landscape where service competition reigns supreme, the authors contend that the core tenets of scientific management, designed for an industrial society, no longer fully apply. They delve into the key facets of service management, highlighting the strategic importance of managing services for both dedicated service firms and manufacturers of goods. The study underscores the need for businesses to adapt their management approaches to prioritize customer experience and satisfaction, rather than solely focusing on efficiency and productivity. By recognizing the evolving nature of competition and the increasing importance of services, this paper offers valuable insights for organizations seeking to thrive in the modern marketplace. The ability to effectively manage services is presented as a critical differentiator, essential for achieving sustainable success in today's dynamic business environment.
Published in the International Journal of Service Industry Management, this paper squarely addresses the journal's core focus. By examining the shift from scientific management to service management, it directly relates to the journal's exploration of strategies and challenges within the service industry. The paper's discussion of key facets of service management aligns perfectly with the journal's dedication to advancing knowledge in this vital field.