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Business Resource Management

RESOURCES REUIREMENT FOR BUSINESS

 

There are different resources required for the business. Importance of each of these resources depends on the type of business. We will discuss the requirements of the misc business as given below under the respective headings:

Agriculture Business

The agriculture business requires the sources of capital, land, natural environment, and human resources. Even the technology used in agriculture has become an important source for the success of these kinds of businesses. The timely availability of the resources is very much important for this kind of business.

Land is the most important part of the agriculture business therefore preservation of land to keep it good for the produce is very important. There are threats like worm or insect to the land which need timely spray for the safety of crops. Further land can be utilized in a better way if proper planning done. For example strawberry crops are required to be in rows and there should be space between rows which can be utilized to grow any other item.

The resources of the water are also vital for the agriculture business and it must be available every time for the growing of crops. The farm has these resources of their own according to their requirement.

The safety of land, labor and facilities for the customer required financial resources like cash that will be used as a working capital. This can be obtained from sale of crops or from injection of equity by the owners.

In the given example the requirement of labor for 50 acre is high especially in the season from June to October. The management of the employees is very important and they should be assigned work with the level of experience and with the relevancy of their experience with the crops grown on land. For example people have expertise with strawberry crops must be assigned with land area relevant to strawberry. The administration need to be done by the family member of the business weather its relating to picking the produce by the customer, management of facility to be provided to customers. In the example most of the family members are the permanent employee hence most of the requirement for labor is in the season.

Moreover the farm required physical resources like steel structure and soil to fill the trough to bring it at the height where customer can pick it easily. In addition to this container, canteen and other physical resources are required in the season. These resources are required only in the picking season thus the management make sure its availability by making contract before the season to avoid any malice.

Engineering Business

This is an example of small manufacturing enterprise where the main source is factory promises, technology, labor, raw material and finance. Most of the management is done by the partners of the business.

The factory premises must be kept in good working condition as it will help getting the best out of the employees.

The employees are the essential source and they need to be motivated and encourage for quality production and training the new employees. The partners need to be involved with the employee since it is very easily in a small business with thirteen to fourteen employees. One partner is managing the sale while other needs to look at the production and the financial matters for efficient management.

The technology is one of the vital resources because it has the specialty to manufacture small panel for different industries. The production is mainly based on the use of the machinery therefore the owner or partners should make sure that they keep the technology updated to exist and compete in the market.

The aluminum used in manufacturing of panels is also an important resource and there is need to make planning of the availability of aluminum to meet the production requirements. The financial resources are the key for the availability and management of all the above resources. Thus it should be available when needed e.g. for the purchase of raw material, for up gradation of the technology etc.

Call centre Business

The main resources for this kind of system are the availability of human for 24 hours in full week. Workers are the central part for call centre business and it is important to provide them with good working condition and incentives for their work.

Technology is also an important source for this kind of business. The availability of the telecommunication network 24 hours each day without any break up is also important therefore a good backup plan available for the management of these resources. The call scripter software, availability of web and interactive voice system are highly essential for the working of the business.

The next important source for this kind of business is physical resources like building, computer, and other assets necessary for set up a call centre. The management of these resources required good panning. For example the site of building should be near to the city which can be access by the workers easily at time of day or night.

Financial source are the key for any business and are needed to purchase of resources thus there should be good amount of financial resources available for the business. 

EFFECTIVE USE OF PHYSICAL RESOURCES

The physical resources can be managed in different ways by proper planning and disaster and recovery management. For example inventory can be made available only when needed to avoid unnecessary storage and handling cost e.g. just in time inventory is used by many companies to make efficient use of its resources. The machinery should be kept up-to-date and properly maintained to avoid any accident and to maintain productivity level.

The raw material resources of aluminum must efficiently for example required sizes for production of penal must be procure to avoid cutting cost and wastage should be recycled or used to make any by product. 

Human resources are the most important resource and they can drive any organization to success or failure. For example in engineering business example where employee train the new employees coming in the factory and if any employee leave the company and new to be appointed in his replacement means that the new employee will be trained resulting in waste of time and money or even less production with the new employees. Therefore the employees must be motivated with good working conditions, salaries or even involving them in decision making to get best out of them. The similar to above may happen in case of agriculture or call centre business. Further the human resources are used to manage all other resources hence good human resource management is essential.

The cost of failure of technologies is very high for example a communication system failure in a call centre business means not only losing of current but also have an impact on future business and good will. This result in losing of customers and the business will not be able to pay the fixed cost of salaries and rent etc. Thus the sound disaster recovery plan must be in place to reduce the effect of failure in technology. Further consider  the impact of bugs in call scripter software and interactive voice system if it unable to record customer order or unable to respond or wrongly response, this will damage the whole goodwill and have immense effect on business and even result in closure of buskins.

The sustainability of environment has some cost and lots of companies are investing to keep the environment safe. The car making companies like Toyota and Honda are using hybrid system in their car to make them environment friendly. The shareholder money should be used ethically even money spend on environment suitability benefit the shareholder by improving the image of the company to gain completive advantage. (B. Hiriyappa – 2009)

 

MAXIMIZING THE EFFECTIVENESS OF HUMAN RESOURCES

 

The maximization of human resource can be done by keeping the staff motivated i.e. by providing salary, good working condition, career development opportunities and recognition etc.

There are number of theories of motivation which are used to motivate the employees. Some of the theories of motivation are given below;

i)                  Maslow’s need hierarchy theory

 

This theory is presented in grid which have five set need and each set of needs to be fulfilled before satisfying other needs. The needs according to this theory are given blow:

 

a)      Safety needs

b)      Security needs

c)      Affiliation

d)     Recognition / advancement

e)      Self actualization

In the above Safety needs must be fulfilled before proceeding to the security needs and affiliation needs before fulfillment to recognition needs. There is difficult to identify the empirical relationship between the above set of needs as the need of hunger will always be present even after fulfilling this need.

Herzberg theory

According to Fredrick Herzberg the factor which creates motivation are different from the factor that remove dissatisfaction. The factor that remove dissatisfaction are good working condition, salary, allowances etc. and those create satisfaction are advancement, recognition and indolent in decision making.

Apart from above there are other theories of motivation of employees like Elderfers’ ERG theory and Porter Loral model of motivation etc.

The salary is still a big factor in motivating the employees. The motivation in employee will result in higher performance for example if the employees are involved in decision making, he will be eager to achieve the task resulting from his own decision. 

Effectiveness of Reward System

The companies reward system to motivate employee e.g. employee share option scheme or bonus on giving certain performance. These schemes may result in higher performance at the cost of the quality or the employee may manipulate the financial result to increase the price of share offered under share option schemes to employees. Further the employee may not increase the production for bonus or reward because they feel if they achieve certain level of performance then management will set this level as slandered and require worker to achiever without any incentive. 

PERFORMANCE MEASURE FOR EFFECTIVE USE OF RESOURCES

The management can set different performance measure the assessment of effectiveness of the use of resources. The agriculture business can set the production level and compare with the actual production. The comparison of the produce from crops of previous year with the current year can also be analyses.

The call centre performance can be analyses by checking number of response per minutes by each employee, number order obtained, public image and profitability of the company. These measures will not only help in finding the employees performance but also the performance by the company.

The panel producer can assess the performance by analyzing the revenge, cost, and production, number of accidents by employees and overall growth of the company. 

This measure will help in identifying how well the resources are used to achieve the objective of the organization.

For example in a small grocery store the level of all the inventory is set after which inventory is reorders the system. Electronic point of sales system is used to record the sale. It consists of four staff one for each row and one person recording the sales. One worker maintains the stock and also performs the sales man role in peak time. If a new item required by customer who is not in stock then new reorder is set deepening on the demand. The worker are properly trained and given bonuses based on the sales made by them. They are provided with leaves in off season with salary to keep them motivated. The building is properly maintained and maintenance is done every year to keep it in good condition. This way grocers use the resources in a best possible way.

CONCLUSIONS

The success of the business is depending on the effective use of the resources human, physical and financial resources. Therefore proper planning should be done like budgeting and controlling system, availability of human i.e. human resource planning. The planning is vital for making the effective use of the all the resources of business.

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