Resource Management Assignment

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Nov 9, 2013 (3 years and 6 months ago)

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Resource Management Assignment


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Table of Contents

1. Introduction

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................................
................................
............................

2

2. Key Features of Resource Management (Task 1)

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................................
..

3

2.1. Different types of resource requirements of organisations in different sectors

..............

3

2.2. Key requirements rele
vant to resource management in different organisations in
different sectors.

................................
................................
................................
.....................

4

3. Physical Resource Management (Task 2)

................................
................................
..............

6

3.1. Management of physical resources

................................
................................
.................

6

3.2. Impact of resource wastage

................................
................................
.............................

6

3.3. Evaluation of the impact of technological failure

................................
...........................

7

3.4. An assessment of the business case for the use of ethical and sustainable business

......

7

4. Maximising the Effectiveness of Human Resources (Task 3)

................................
...............

8

4.1. The need for human resource planning

................................
................................
...........

8

4.2. The application of motivation theories

................................
................................
...........

8

4.3. Evaluation of the methods of monitoring and improving employee perf
ormance

.........

9

4.4. The reward system

................................
................................
................................
........

10

5. Review of the Effective Use of Resources (Task 4)

................................
............................

11

5.1. The use of physical resources against performance measures

................................
......

11

5.2. Analysis of the employee performa
nce of Sainsbury’s

................................
................

11

5.3. Effectiveness of the use of human and physical resources in Sainsbury’s

...................

12

5.4. Recommendations to improve efficiency

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................................
.....

12

6. Conclusion

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...........................

14

Bibliography:

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15





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1.
Introduction

Managing resources is an

intrinsic part of organisati
on
since all the benefits are de
rived out of
these resources.
Organizations use
different resources to accomplish goals. The major
resources used by organizations ar
e often described as follow; human resources, financial
resources,
physical resources,

and

information resources.
Managers are responsible for
acquiring and managing the r
esources to accomplish goals.

Organisations operate in different
s
ectors of the economy

and the type, nature and amount of resource requirement may vary
among them. While managing their resources, organisations have to consider various
requirements such as
; legal, training for its employees etc.

The view of an integrated approach of resource management is a topical issue although each
organisation

continually
engages

in their individual resource management.

May be the
management of human resources has been
considered so significantly that it is being studied
separately.

Whatever the perspective is organisations must
manage their resources
individuall
y or in an integrated approach for the success of the organisation.

In the domain of resource management phys
ical and human resource management is
prevailing which will be emphasised in different sections of this assignment.




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2. Key
Features of Resource Management (Task 1)

2.1. Different types of resource requirements
of organisations in different
sectors

A
nation’s economy can be divided into various sectors to define the proportion of the
population engaged in the activity sector. This categorization is seen as a continuum of
distance from the natural environment. The continuum starts with the primary secto
r, which
concerns itself with the utilization of raw materials from the earth such as agriculture and
mining. From there, the distance from the raw materials of the earth increases.


The primary sector

The primary sector of the economy extracts or harvests

products from the earth. The primary
sector includes the production of raw material and basic foods. Activities associated with the
primary sector include agriculture (both subsistence and commercial), mining, forestry,
farming, grazing, hunting and gathe
ring, fishing, and quarrying. The packaging and
processing of the raw material associated with this sector is also consid
ered to be part of this
sector.

Stem is an example of the primary sector and from its business profile it is apparent that it is
using
the following resources;

Human resources:

This is the important part of resources. In economic classification
resources are classified in
four broad groups
and often called the 4 ms such as; man, money,
machine and material.

Stems main resource is its huma
n resource.

Land:

For farming the land is the most important resource. The primary sector of an
economy relies extensively on land.

Plant and machineries:
In modern times the use of high technology underpins the
productivity in the primary sector.

To enhanc
e Stem’s productivity the organisation is going
to use high technological equipments.


The secondary sector

The secondary sector of the economy manufactures finished goods. All of manufacturing,
processing, and construction lies within the secondary sector
. Activities associated with the
secondary sector include metal working and smelting, automobile production, textile
production, chemical and engineering industries, aerospace manufacturing, energy utilities,
engineering, breweries and bottlers, constructi
on, and shipbuilding.

In the second example the company is operating in the secondary sector.

The main resource
requirements for the company are as follows;

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Raw material:

This is the most important reso
urce for the secondary sectors which comes
from

the pr
imary sector. The raw materials are components which are transformed into
consumable goods.

Machineries:

Without machineries the secondary sector is unable to process the raw
materials into finished goods.

The use of machineries in the secondary sector

has

brought a
revolution
in the mid nineteenth century and underpin
s

the modern living standard.


The tertiary sector

The tertiary sector of the economy is the service industry. This sector provides services to the
general population and to businesses. Activities associated with this sector include retail and
wholesale sales, transportation and distribution, entertainment

(movies, television, radio,
music,
theatre
, etc.), restaurants, clerical services, media, tourism, insurance, banking,
healthcare, and law.

Human resources:

The tertiary sectors are wholly dependent on the human resources. In the
third example the company

is a call centre where the key resource is human resources.

Technology:

The tertiary sector in some instances and in the case of the call centre needs to
use technologies. In fact the technologies have brought a revolutionary change in the
structure of th
e tertiary sectors and also created new types of jobs.


2.2. Key requirements relevant to resource management in different
organisations in different sectors.


The primary sector

Since the primary sector is involved with the use of natural resources, the

organisations
operating in the primary sector need to take account of environmental laws such as the
sustainable use of land resources and water. It is common in all sectors to comply with other
laws such as; health and safety law at work.


The secondary
sector

The secondary sector since is involved with processing the raw materials using different
substances and with the aid of machineries, it is very important to take into account the laws
related with waste management, the use of hazardous chemicals to

ensure the health and
safety issues of employees. The health and safety law is a key requirement also because the
organisation’s workers have to use various machineries which have inherent hazard attached
to those.

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The organisations in this sector also re
q
uire massive storage facilities because they have huge
stock of raw materials.


The
tertiary sector

The reliance on human resources by the tertiary sector organisations require the organisations
operating in this sector to take into account the use of spe
cialist training. The call centre in
the example requires training to deal with the customers and to use various technologies.

The
requirements for management information systems are
key to the tertiary sectors since the
services
provided in these

sectors
require various information which
comes
from the MIS.




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3. Physical Resource Management (Task 2)

3.1. Management of physical resources

Physical resources are the tang
ible resources of a company. These
include;



Premis
es



Plant, machinery and equipment



Materials and stocks

These resources need to be properly managed. The proper management of physical resources
may include the following;

Buying and ordering system:

The
re

must be appropriate system for buying an
d ordering
each physical asset. There must be

responsibilities allocated to different

people within
organisations for buying and ordering stocks. The buying and ordering responsibilities for
high worth assets should be given to someone of higher positions. If there is no proper buying
and ordering sy
stem in place unnecessary stocks might be ordered and wasted.

Preferred suppliers:

All assets before ordering for purchase must be evaluated.
Usually
organisations have suppliers who have a list of preferred suppliers from whom the assets
should be ordere
d.

Just in time management (
JIT):
“Just
-
In
-
Time” is is a foundational principle of Lean
Techniques and is more commonly applied in a physical setting, such as moving parts
through the organization to the customer. It is usually defined as getting the righ
t part, to the
right person, in the right quantity, in the right time and place and at the right cost. The
guiding principles can be applied in managing all types of physical resources.

Stock control systems:

Different types of stock control systems can be

used for managing
stocks such as the just in time or economic order quantity (EOQ)
.


3.2. Impact of resource wastage

The poor management will lead to the wastage of resources within an organisation. The
impact of wastage of resources is tremendous. These

are described below;

Financial costs and reduced profit:

Wastage incurs costs hence reduce profit. In a
machinery is poorly managed it will become obsolete before its expected useful life and the
economic benefits that could be obtained will n
ot be achiev
ed
.

Disposal cost:

If for example raw materials are wasted they will need to be disposed off since
will increase the cost of disposal hence reducing profit.

Poor image of the company:

Companies with high disposal rate will lose their company
image since th
ey will be perceived by the public as a lavish company.

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Poor delivery:

If there are high rate of wastage there will be shortage of raw material and a
company will not be able to deliver its goods on time. This will affect the customer
satisfaction and the
company will lose its customer base.


3.3. Evaluation of the impact of technological failure

In modern time most of the work of organisations is dependent on technology. It is difficult
to find any organisations who are not taking the advantage of computer and information
technology. Any disruption of computers or other technology will have signif
icant effect on
the organisation. If the technology fails in an organisation it will primarily disrupt the whole
information system of an organisation consequently it will lead to disruption of the provision
of both internal and external services of the or
ganisation. On time service or product deliver y
will be disrupted for example if a despatch email does not reach to the goods dispatched
department on time for internet failure the goods will not be reached to the customers on time
as a result customer di
ssatisfaction will arise and the customers will move to other customers.
High level of failure of the technology due to poor management of resource will incurs
unnecessary costs of replacement or repair.


3.4. An assessment of the business case for the us
e of ethical and
sustainable business

Ethical and sustainable business practice is an important current issue which is being
practiced by UK’s large business organisations such as; Morrison’s, Sainsbury’s, Tesco etc.
Such business practices help organisati
on’s in various ways as explained below;

Business profile/image:

Ethical and sustainable business practices help to improve a
company’s image.
When customers and other stake holders know that a particular business
are ethical and have sustainable business

practices it creates a different positive perception
among them since everyone has some need of ethics and consideration of environment.

Competitive advantage:

Businesses with ethical and sustainable business practices gives
companies competitive advanta
ge. The customers are now being environmental conscious
and also people like the ethical values of others and they want to keep relation with such
businesses.

Marketing aid:

Such business practice will create a scope a marketing opportunity such as
the co
mpany can promote itself that it is doing some good practice
s

which are the prevailing
need of society.


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4. Maximising the Effectiveness of Human Resources

(Task 3)

4.1. The need for human resource planning

Human Resource Planning is a mandatory part of e
very organization’s annual planning
process. Every organization that plans for its business goals for the year also plans for how it
will go about achieving them, and therein the planning for the human resource:



To carry on its work, each organization need
s competent staff with the necessary
qualifications, skills, knowledge, work experience and aptitude for work.



Since employees exit and organization both naturally (as a result of superannuation)
and unnaturally (as a result of resignation), there is an on
-
going need for hiring
replacement staff to augment employee exit. Otherwise, work would be impacted.



In order to meet the need for more employees due to organizational growth and
expansion, this in turn calls for larger quantities of the same goods and se
rvices as
well as new goods. This growth could be rapid or gradual depending on the nature of
the business, its competitors, its position in the market and the general economy.



Often organizations might need to replace the nature of the present workforce a
s a
result of its changing needs, therefore the need to hire new set of employees. To meet
the challenge of the changed needs of technology / product/service innovation the
existing employees need to be trained or new skill sets induced into the organizati
on.



Manpower planning is also needed in order to identify an organizations need to
reduce its workforce. In situations where the organization is faced with severe
revenue and growth limitations it might need to plan well to manage how it will
reduce its wo
rkforce. Options such as redeployment and outplacement can be planned
for and executed properly.


4.2. The application of motivation theories

Maslow's Hierarchy of Needs is a "content theory" of motivation"

(the other main one is
Herzberg's Two Factor
Theory).

Maslow's theory consisted of two parts:



The classification of human needs, and



Consideration of how the classes are related to each other

The classes of needs were summarised by Maslow as follows:

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How does the Hierarchy Work?



A person starts at

the bottom of the hierarchy (pyramid) and will initially seek to
satisfy basic needs (e.g. food, shelter)



Once these physiological needs have been satisfied, they are no longer a motivator.
the individual moves up to the next level



Safety needs at work co
uld include physical safety (e.g. protective clothing) as well as
protection against unemployment, loss of income through sickness etc)



Social needs recognise that most people want to belong to a group. These would
include the need for love and belonging (
e.g. working with colleague who support you
at work, teamwork, communication)



Esteem needs are about being given recognition for a job well done. They reflect the
fact that many people seek the esteem and respect of others. A promotion at work
might achiev
e this



Self
-
actualisation is about how people think about themselves
-

this is often measured
by the extent of success and/or challenge at work

Maslow's model has great potential appeal in the business world. The message is clear
-

if
management can find o
ut which level each employee has reached, then they can decide on
suitable rewards.


4.3. Evaluation of the methods of monitoring and improving employee
performance

Monitoring employee performance:
It is important to know how the employees are
performing be
cause organisational goals are achieved based on employee performance.
Employee performance can be monitored against different measures explained below;

Key performance indicators (KPI):
Key Performance Indicators (KPIs) help organisations
understand how
well they are performing in relation to their strategic goals and objectives. In
the broadest sense, a KPI can be defined as providing the most important performance
information that enables organisations or their stakeholders to understand whether the
org
anisation is on track or not.

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Performance appraisal:
A performance appraisal (
PA) or performance evaluation

is a
systematic and periodic process that assesses an individual employee’s job performance and
productivity in relation to certain pre
-
established c
riteria and organizational objectives.

Customer feedback:

Employee performance can also be monitored based on customer
feedback. It is more likely to be used in service oriented business where the employees
directly interact with
customers.


4.4. The rewa
rd system

An organisation can design various reward systems to motivate its employees to get the best
performance from them. The choices of reward system can be;

Performance related pay:
Any system that relates the rewards of an individual employee to
the
performance of the organisation that he or she works for is called performance
-
related
pay, or PRP. Such systems are designed to motivate employees and to align their effort more
closely with the aims of the organisation. The pay is often financial, but it

can also be non
-
finan
cial, anything from £20 Argos

vouchers to transatlantic flights. Payments under such
schemes are usually made separately from regular salary payments. In this way the recipient
appreciates that they are variable, separate and not guar
anteed.

Bonus:
Bonuses will be paid to employees who meet their targets and objectives. This is
aimed at employees to improve their performance and to work harder.

Empowerment:

Empowerment refers to when employees are given authority to make certain
decisio
ns. This decision making authority is restricted only to the day to day tasks. By giving
employees authority and power can lead to wrong decisions to be made which will cost the
company. Empowerment will not relate to day to day functioning authority. This

will make
employees more responsible, vigilant and increase their performance.

Share option:
Company sha
res can be offered to employees to motivate. It can give the
employees a feeling of ownership interest in the company and improve their performance.




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5. Review of the Effective Use of Resources

(Task 4)

In this part the use of resources of J Sainsbury’
s has

been reviewed and most of the
information has been obtained from its website.


5.1. The use of physical resources against performance measures

Sain
sbury’s uses a range of KPIs to measure its performance
of the business as a whole. All
the resources the organisation possesses are deployed to reach the company’s various goals

so it measures the performance of all the resources deployed against those KP
Is
. The range of
KPIs the company uses are as follow;

Financial KPIs:

Like for like sales:

It is one of the financial measures being used by the company. It
represents how much sales the company has improved by selling the same items it has been
selling over the last years.

Total sales growth:

It is another important financial KPI to monitor i
ts sales performance.

Underlying EBITDAR:

This is the underlying profit before tax before underlying net
finance costs and it represents the company’s financial performance.

Other financial KPIs include net capital expenditure,
Gearing,

Dividend per share
, Cash
flows etc.


Non financial KPIs:

Non financial KPIs include;



Best for food and health



Sourcing with integrity



Respect for the environment



A positive difference to the community



A great place to work etc.


5.2. Analysis of the employee performance

of Sainsbury’s

A structure of the performance system of Sainsbury’
s has

been shown below;

Employees

KPIs

Reward

Financial

Non Financial

Store employees



Like for like
sales growth
in store



Net sales
growth in


Customer
satisfaction
survey




Bonus



Free vouchers



Promotion



Colleague shares

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store

Senior managers



ROI



Regional or
total
company
sales growth



Best for food
and health



Sourcing
with
integrity



Bonus



Promotion



5.3. Effectiveness of the use of human and physical resources in Sainsbury’s

In Sainsbury’s all of its physical and human resources are deployed to achieve its various
objectives.
When Sainsbury’s achieve its objectives it can be presumed that an effective
resource management was in place.

The like for like sales has an increasing
trend over the last five years indicate that the
company well managed
its

all resources both human and physical. It is also evidenced by
improvements made on other financial and non financial areas such as;

total sales growth,
underlying operating margin.
The company has also achieve
d

its various non financial
targets
such as;
best for food and heath, sourcing with integrity targets.

The achievement of the company’s various values and objectives well convince me to
conclude that Sainsbury’s managed well its

human and physical resources.


5.4. Recommendations to improve efficiency

Although Sainsbury’s seems to be very good at its resource management the ideal plan for
resource management could be considered by the company described below;

Physical resource ma
nagement plan:

Developing policie
s for physical asset management:
Companies should develop policies for
physical asset management such as the proper use of all equipment of organisations to avoid
misuse by employees, regular performance check of important
plant and machinery, proper
storage facilities for stocks etc.

Waste management policies:
Resources should be protected from wastage by developing
policies and procedures.

Special attention for technological equipment:

Since in today’s world much of a
compa
ny’s performance depend
s

on technology organisations should take special care of its
technological equipments.


Human resource management plan:

Stage 1:
Short
-

Term HR Planning

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Establish a Competency Architecture and Competency Dictionary that will
support
Strategic Human Resource Planning.



For each group to be profiled, define the roles and career streams to help identify
current and future human resources needs.



Determine how competencies will be integrated with the existing HR Planning
process and

systems (e.g., Human Resource Information Management systems; other
computer
-
based tools, for example forecasting models).


Stage 2
:
Build or revamp HR Planning tools, templates and processes to incorporate elements
as determined in Stage 1.



Train manager
s and / or facilitate corporate HR Planning process.



Continuously monitor and improve processes, tools and systems to support HR
Planning




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6. Conclusion

Resource management is a very important aspect of business management process.
Organisations should h
ave clear objectives related to its resource management. Although the
performance is measured of an organisation’s human resources it is hardly practiced the
performance of the other physical resources. Research should be undertaken to know

more

about the
implication of physical resource management.

The traditional perspective of
performance management as we have seen in Sainsbury’s in an objective based fashion
should be altered to a way linking the sustainable use of physical resources.



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Bibliography:

Te
xts:

Human Resource Management: Essential Perspectives by Robert L. Mathis, John H. Jackson.

Human Resource Management: by
Alan Price.

Controlling Physical Resources: Institute of Leadership & Management.

Foundations in Strategic Management: by Jeffrey S.

Harrison, Caron H. St. John.


Website:

http://www.j
-
sainsbury.co.uk/