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1. Managerial challenges presented in services that don't surface in manufacturing are due to the fact that service environments lack the structure of manufacturing environments. A home without structure will constantly be subjected to obstacles. There is constant customer contact in servicing; manufacturing does not have distractions of direct customer contact, which allows them to concentrate on production. Service workers usually lack the skills and qualifications of manufacturing candidates which leads to high turnover rates in service organizations. Manufacturing jobs tend to go to high skilled workers and they remain seasoned in their positions and things run smoothly because people are accustomed to performing their roles efficiently.

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