The resources of a business can be the human, physical, technological and the financial resources. The human resources are the people who work for the organisation, the employees. Physical resources are the assets. These can be land and buildings, equipment, machinery furniture and stock. The technological resources can be software, patents and copyrights. Lastly, the financial resources are the money to pay the costs of the business.
Managing human resources
Managing the human resources has many benefits for a business. Managing human resources involves recruitment, training, organisation, motivation and checking standards of the work completed. If all these elements are done well a performance of a business can be improved clearly. Recruiting …show more content…
Managing physical and technological resources
Managing the named physical and technological resources well can have the same benefits as managing the human resources. Eventually, the financial performance of a business is improved. Physical and technological resources distinguish from human resources as they are the foundation of a business which then the human resources use. That means that the productivity and work done by the employees always depends on the basis they have – the physical and technological resources.
Managing financial resources
As part of managing the financial resources, the budgeted costs are controlled. This has many benefits. One is that much can be read of the budgeted costs. For instance, if the business is having lower costs than budgeted more profit will be made. This would be favourable for the business but if it is the other way round, higher costs than budgeted, the business can deal with that and eradicate the costs by looking where they’ve come …show more content…
Regardless how well the resources are managed, a business might suffer under a stronger completion which could cause financial problems. But the state of economy in a territory plays also an important role. This can determine the purchasing power of the population. With a low purchasing power, less money will be spent and the business might suffer under this. The state of the economy is often unpredictable and therefore it is not included in the budgeted costs which can be a limitation as it has the potential to influence the financial performance of a business but also the management of resources might be influenced, because changes in the staff might be made if the business is not running as well as expected. The state of the business might be changed with a rise in the VAT although this is announced at the outset it can influence the finance as the prices of the product need to be changed and it can’t be predicted how customers are going to react to a changed price. If an economy is in the recession, the patterns of purchase by customers might be changed. In which way they’re changing can’t be predicted. This limits the budgeting of costs and the management of resources as, even if both is done well, the sales might
Managing human resources
Managing the human resources has many benefits for a business. Managing human resources involves recruitment, training, organisation, motivation and checking standards of the work completed. If all these elements are done well a performance of a business can be improved clearly. Recruiting …show more content…
Managing physical and technological resources
Managing the named physical and technological resources well can have the same benefits as managing the human resources. Eventually, the financial performance of a business is improved. Physical and technological resources distinguish from human resources as they are the foundation of a business which then the human resources use. That means that the productivity and work done by the employees always depends on the basis they have – the physical and technological resources.
Managing financial resources
As part of managing the financial resources, the budgeted costs are controlled. This has many benefits. One is that much can be read of the budgeted costs. For instance, if the business is having lower costs than budgeted more profit will be made. This would be favourable for the business but if it is the other way round, higher costs than budgeted, the business can deal with that and eradicate the costs by looking where they’ve come …show more content…
Regardless how well the resources are managed, a business might suffer under a stronger completion which could cause financial problems. But the state of economy in a territory plays also an important role. This can determine the purchasing power of the population. With a low purchasing power, less money will be spent and the business might suffer under this. The state of the economy is often unpredictable and therefore it is not included in the budgeted costs which can be a limitation as it has the potential to influence the financial performance of a business but also the management of resources might be influenced, because changes in the staff might be made if the business is not running as well as expected. The state of the business might be changed with a rise in the VAT although this is announced at the outset it can influence the finance as the prices of the product need to be changed and it can’t be predicted how customers are going to react to a changed price. If an economy is in the recession, the patterns of purchase by customers might be changed. In which way they’re changing can’t be predicted. This limits the budgeting of costs and the management of resources as, even if both is done well, the sales might