Managing Employees in the Service Sector: A Literature Review and Conceptual Development

Our economy is slowly shifting from a manufacturing base to a service base. Yet, management literature has been slow to respond. We know little about the unique challenges faced by managers in the service sector. This paper reviews literature on research on management practice and employee perceptions that lead to positive customer outcomes. Specifically, relational coordination efforts by a manager are suggested to lead to specific employee behaviors that have been correlated with customer outcomes. This literature review and conceptual development are presented here in hopes that future research will take a deeper look at the challenges faced by service sector managers.