Airlines, banks, hospitals and many other service organizations are so labor intensive that the cost of labor is their primary cost of operations.

Question

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Labor is the main cost for service organizations that rely on human resources to deliver their services. Airlines require pilots, flight attendants, ground staff, and maintenance technicians to operate planes and ensure safety. Hospitals require doctors, nurses, and support staff to deliver care to patients. Banks need tellers, customer service representatives, and financial advisors to serve their clients. Therefore, the cost of labor is a significant expenditure for labor-intensive service organizations such as airlines, banks, and hospitals.

Airlines, Banks, Hospitals and Many Other Service Organizations Are So