Difference Between Goods and Services

The division of labor is a complex phenomenon that is characterized by varying aspects of an individual’s social connection to the society in which they reside. The Division of labor is a broad process that affects and influences many aspects of life such as political, judicial, and administrative functions (Bratton & Denham, 2014). Two of the main sociological theorists, Karl Marx and Emile Durkheim, had different understandings of the notion about the division of labor. This topic has been contested and debated by many theorists but this paper is going to focus on how Emile Durkheim and Karl Marx views this topic. Karl Marx views the division of labor as a process that alienates the individual from their work (Llorente, 2006). Marx also views the division of labor as a way for the capitalist bourgeoisie to take advantage of the wage labor of the proletariat. Emile Durkheim identifies with Marx in the economic sense that the division of labor furthers the rationalization and bureaucratization of labor, but differs in that the division of labor provides individuals in society with social solidarity and ensures their connection to society. This paper is going to reflect on some of the aspects in which Emile Durkheim and Karl Marx view the division of labor, while showing some of the similarities and differences between the two theorists conception of the topic.

services. He can also cancel the contract with the company at any time, and the company can

Both authors mentioned “specialization of production,” regarding it as a division of labor that makes us weaker and unable to fend for ourselves. I had never previously thought of our society in those terms, but can

but he is also part of the group that makes the policy for the store.

Cavanaugh’s book is made up of four chapters that focus on negative and positive topics namely: Freedom and Unfreedom, Detachment and Attachment, The Global and the Local, Scarcity and Abundance. The writer begins the book by asking the question “When is a market free?” The market can only be free if the transaction is fair and both parties equally benefit from the purchase or trade. It is also then said that state authority is required to keep the middle man from interfering, because “freedom in itself is pursuing whatever you want without interference from others”.(Kindle Location 104 of

the goods offered by this establishment. That is, take any two goods or groups of goods

independence so heavily to have to come together as one, and share resources. Because of this, a

is when the division of labour has been once thoroughly established, it is but a small part of a man’s want which the produce of his own labour can supply. He supplies the far greater part of them by exchanging that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other’s men’s labour as he has occasion for. Every man thus lives by exchanging, or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society (Smith, 2003, p. 37).

Ericsson intends morally unobjectionable to mean that there is no moral reason to object to a certain service. A free exchange is one in which both parties agree upon a certain service. An open market is a market where there are no restrictions on the selling and buying of a product and prices are determined by competition. Ericsson believes this premise to be universally accepted among his critics.

Tremendous economic and technological growth marked by the industrial revolution that was beginning to take shape at in the 19th century. With this change also brought a process of greater specialization in the workforce, also known as the division of labor. Both Karl Marx and Emile Durkheim, under this context of burgeoning market economy, sought to understand modern society and the underlying relations that lead to their formation and progress. In this essay, I will argue that while both Marx and Durkheim acknowledge the role of economic growth as a main driver of human society in their theories, they differ on the type of social relations that developed in tandem, relations that formed the basis of the division of labor. Marx (1978, p. 212) views the division of labor as a result of the capitalism driven by profit, while Durkheim (1984, p. 1) sees it as a necessary condition for social progress. Next, I will also explore differences both writers posit as the consequences for this process, relating to both Marx’s theory of labor alienation and Durkheim’s idea of organic solidarity.

Also, the income that people earned determines the level of consumption. The more they earned, the more or luxury goods they are able to purchase.

the Design of Goods and Services is fairly much of the transformation process in a firm. The design of process is extremely influential in determining decisions relating to business elements such as Cost, quality, human resources. Additionally, to survive in the business arena, a firm must design goods and services to meet the needs and wants of their customers (Heizer & Render, 2011).

*The ability not creates an inventory of the good that will eventually be purchased by the consumer means that production and consumption of the good can be separated in time and space. E.g., in the case of a pair of jeans does not sell today, a retailer can store it and sell it at a later time

The problem here is that this idea continued on even after social production had taken the place of individual producers, and the “Social products were treated as if they were still…the products of individuals.” (Engels 1939, p. 295)

The major differences between goods and services in operations management are their goods, inventory, customers, labor and location. One major difference in the tangibility of their output. For example, a service firm would entail consultancy, training or maintenance, this is an intangible product. These services are not tangible object, but still provide a “product” for the customer. A good would be a tangible for the consumer. A company manufactures a certain product and the consumer is able to physically receive it. For example, A manufacturer such as Coke, Nestle, Honda and BMW. Another difference between a service and goods is their inventory. Service forms do not hold inventory, they provide a service when their customers ' need it. Manufacturers produce goods which creates an inventory. Inventory levels are created through supply and demand. A lot of companies only have a certain level of inventory in order to utilize their “space”. In addition a major difference between goods and services is their customer relationship. There is a high customer contact in the service industry. The service industry caters to their clients; meaning they adjust their service to the needs of the customer. For example, a consulting firm may only need to do four hours of work with a certain customer and twelve hours with another. In manufacturing goods there is low customer contact. Manufactures can produce their customers goods without having them submit an order, because they can