Resources are a vital component of any organisation which supports in completing business activities in effective manner. Resource management refers to the procedure of managing required resources within the company in effective manner so that organisational goals and objectives could be achieved in quick time (Jacobs and et. al., 2016). This report will cover up discussion on key features of resource management along with the importance of effective use of physical resources in the company. Further, it will provide knowledge on human resources and how their work efficiency can be maximised. At last, it will review about the effective use of resources.
1.1Â Resource requirements of organisations in different sectors of economy
Every business has its different requirement of resources which are completely depending upon their sectors. Business organisations are categorised according to three different sectors such as Primary, secondary and tertiary. Resources need of all these sectors are defined as below:
Primary sector: This sector includes industries which are basically engaged into manufacturing of raw material from natural resources. Primary sector is seen as very basic sector which does not need any support of Hi-tech or advance machinery. It includes industries like fishing, mining, farming, forestry etc. It can be said that companies belonging to this sector require resources such as human resources, equipments and some basic facilities to execute their business activities in effective manner. Â
Secondary sector: Secondary sector mainly arrange raw materials from companies belonging to primary sector and then proceed collected raw material further in order to make a finished product. This sector includes manufacturing, engineering, electronics etc. Required resources of secondary sector is raw materials, machinery, human resource and technology.
Tertiary sector: This sector provides deep description about companies belonging to service industry which serves other companies or customers. It includes many industries like retail, financial services, medical sector (health care), entertainment and many others. Resources requirement of this sector includes human resources, advance technology, facilities and time to deliver best quality services to customers (Brewster, Chung, and Sparrow, 2016).
1.2Â Key requirements relevant to resource management in organisations in different sectors of economy
Within corporate world, managers of an organisation in any sector of economy have to manage resources in accordance with the requirements associated with health and safety, environment, legislations, employment etc. Further, to ensure effective resource management, there are certain key requirements such as efficient storage facilities, proper waste recycling systems, optimum Management Information System (MIS) (Brewster, Chung, and Sparrow, 2016). All of these significantly contribute towards assisting the managers and leaders within an entity to deal with the physical resources in an efficient manner such that there is least wastage and lowest possible cost is incurred to execute the day-to-day activities.
Also Read:Â Importance Of Strategic Financial Management Assignment In An Organization
2.1Â Evaluate how the use of physical resources is monitored and managed
In any business sector, an entity always needs physical resources to carry out business in an effective manner. Such resources comprise of plant, equipments, material, premises, stock, machinery etc. The requirements for such resources vary as per the working methods, quality, technology taken in use by company. It is essential for an enterprises to effectively manage and monitor the physical resources to ensure that there is neither under-stock nor overstock. In this regard, there are various strategies or systems within an entity through which the use of physical resources is managed. These are described as follows:-
Buying and ordering systems: The purchase or order of equipments, stock or materials is done by verbal commitments or email in some companies. Within corporate world, certain companies also develop their Purchase Order System to track the procurement of physical resources. Purchase order system is a cloud based platform which reviews the way in an entity purchases goods or services for conducting any activity within business premises.
Schedules: Resource scheduling is a procedure used by organisations within all business sectors which assists an enterprise in effectively assigning the resources as per the requirements of job, tasks, project. It includes beginning and end dates of each project or task.
Just-in-time management: This is an inventory management system used by organisations to enhance the efficiency of operations, lower down costs and reduce waste by procuring physical resources as and when required (Jacobs and et. al., 2016).
2.2Â Evaluate the impact of resource wastage
One of the major risks that an enterprise can face while carrying out its day-to-day activities is wastage of physical resources. This has a direct impact upon a number of functions and activities within a company which are described below:-
Financial costs, reduced profits: This leads to increase in financial costs associated with carrying out the regular activities of business to ensure that customers get access to goods and services within stipulated time. Increased financial cost tend to lower down the profits of company.
Poor image:Â Wastage of physical resources within an enterprise consequently hampers the name and stake of company within marketplace. Also, this leads to disapproval from public, government or local bodies as resources within society are scarce.
Goods not delivered/manufactured/supplied: Wastage of resources can also lead to the possibility of the goods and services of enterprise not being manufactured, delivered or supplied depending upon the nature and sector of company (Baumgartner and Rauter, 2017).
Loss of customer base: When physical resources within an organisation are wasted, it may lead to delay or incapability of company in delivery of goods or services in a timely manner. This results in loss of customer base as the loyalty and trust of clients are let down by the entity.
Delay in production: Resources are assumed to be scarce and that's why it is needed by every organisation to keep this aspect in mind while utilising the physical resources at workplace. When wastage of resources take place, it results in delay in the process of manufacturing which may hamper the overall functioning and reputation of enterprise.
2.3 Â Assess the costs of high profile technological failures
The cost associated with technological procedures or IT related tools and equipments is very high. Failure of these processes can prove to be a massive loss for an enterprise, be it agro-based, manufacturing or service sector company. In this regards, it is necessary that that businesses provide adequate and relevant training to IT department and related staff. Also, there should be proper arrangements for security protection and any probable threats that may arise in internal environment. Also, when enterprises neglect insurance of cyber-crimes, then it leads to huge costs for company. IT is a necessary component of any business and it is necessary for organisations to maintain an effective network to facilitate global communication. Virus or data hacking can cause massive costs for company and this has to be taken into account by top managers of the company. Some examples of technological failures can be any malpractice noticed in NHS computer system or Fire service control centre system (Ahmad, 2015).
2.4 Assess the business case for the use of ethical and sustainable resources
It is essential for an organisation to take into account ethics while carrying out activities so as to ensure that they do not engage in any malicious activities. Business processes such as production, transportation, IT have to be conducted in an ethical manner. Business ethics generally include aspects like honesty, integrity, excellence, responsibility and unity of operations. All of these are noticed within TATA Steel Company. This enterprise has proposed their own definition for 'sustainability'. They consider taking such steps that make sure a balanced approach is taken across the premises for efficient functioning, environmental conservation and preservation of resources and materials for future generations (Noe and et. al., 2017). By conducting operation in an ethical and sustainable manner, entities tend to build a strong brand image and gain a competitive advantage in marketplace.
3.1 Assess the need for human resource planning in the workplace
Human resource planning is considered as an essential factor in every organisation in order to improve quality of its work. It can be said that organisations belonging to every sector requires an effective human resource planning at work place. In context to business organisations, certain different needs for Human resource planning are defined as below:
Staff turnover:Â The company belonging to retail sector will require effective human resource planning to deal situation of increasing staff turnover. It can be said that with effective planning human resource management can identify reason behind increasing employees turnover, this will assist them in reducing same figure in effective manner.
Respond to change:Â HRP will also be required to implement change at workplace in effectively (Wright, 2018). With effective planning it would be easier for organisation to introduce new technology or required change in effective manner.
Â Organise staff:Â Human resource planning is also required to manage manpower of company. It can be said that if an organisation is having huge number of workforce then it would not be possible for them to manage employees without an effective planning.
3.2Â Using motivational theories, analyse what motivates people
Â Motivational theories works as the performance booster for employees. These theories helps Human resource manager to identify which kind of motivation actually influence interest of employees and persuades them to enhance their productivity. It has been analysed that Human resource managers are using Maslow's motivational theory for motivating its existing workforce effectively.
Maslow's Motivational theory states that needs of human being can be seen in hierarchical structure which states that an individual can be motivated effectively by fulfilling all of its step by steps. Hierarchical structure of this theory includes 5 Steps whose inclusive factors are defined as below:
Physiological needs:Â It is based on core basic need like food, shelter, cloths etc. of an individual which are highly important for their survival.
Safety needs:Â It includes job security, freedom, safe working environment and protection.
Social needs: Friendship, team spirit, indulging employees into social events, etc.
Esteem needs:Â Self respect, achievements, confidence, appreciation and recognition (Kanki, 2019).
Self actualisation:Â Realizing overall potential of individuals.
Â As per above stated motivational theory of Maslow, it can be said that an employee could be motivated by fulfilling their basic need at first and then approaching to them again with some additional benefits which motivates them in more effective manner.
3.3 Â Evaluate the methods used to monitor and improve employee performance
Human resource manager of every organisation can monitor and improve performance of employees by adopting some methods and tactics which contributes in evaluating their actual performance in effective manner. Some main of them are defined as below:
Appraisal:Â HR manager can motivate an employee by providing them salary hike or promotion to them which directly enhances their performance (Ebrahim and Alsusa, 2017).
Targets: Human resource manager can also provide set specific target for every employee which influences employees to put their additional efforts on work in order to meet up targets. As a result, they work more effectively in comparison to their previous performance records.
Customer feedback:Â Employees performance can be easily assessed by taking feedback from customers at regular basis. This contributes in identifying that which employees is working properly according to their desired job role.
3.4 Â Assess the effectiveness of reward systems in different contexts
In order to ensure maximum level of satisfaction among employees and to motivate them to perform in a better manner, it is necessary that management recognises the importance of rewards and recognition. Rewards tend to encourage employees to deliver performance to the full of their potential. In this regard, companies can use tools like bonuses, promotion, appraisals, performance related pay so that employees deliver effective and efficient output at workplace (Skobelev and Trentesaux, 2017).
4.1Â Monitor the use of physical resources against performance measures and procedures
It is essential for business organisations to monitor the use of physical resources by comparing them against certain performance measures so as to evaluate and ensure that optimum utilisation of resources takes place. In this regard, such performance measures are described below:-
Performance against targets: Managers of an organisation have to evaluate the extent to which physical resources are being utilised within an enterprise. Also, it is necessary that it is assessed whether the utilisation of resources is taking place according to the targets set. Lesser variance will ensure effective consumption of