HR Management and Workplace Relations

This assignment explores the crucial role of Human Resource (HR) managers in fostering positive workplace relationships. It emphasizes the importance of understanding employment legislation and intellectual property rights to effectively manage interactions within the workplace. The assignment highlights how HR professionals can contribute significantly to performance and productivity through their expertise in these areas.

Managing and Running a
Small Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main considerations of social enterprise require to address when allocating and planning
resources for meeting companies objectives...............................................................................1
TASK 2............................................................................................................................................2
P2 Evaluate various processes of customer relationship management for small firms..............2
P3 How small firms can develop transnationally and its advantages and disadvantages...........4
TASK 3............................................................................................................................................5
P4 Produce an annual itemised monthly cash flow by showing variable and fixed cost............5
P5 Break even analysis................................................................................................................7
P6 Interpret key financial statements..........................................................................................8
TASK 4..........................................................................................................................................10
P7 Key regulations and legislation that have its implications on small enterprises..................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Small business organisations is an integral component of company that contribute
towards an economy of nation. In this, workers are working along with that company which
gives the opportunity of employment to people for increasing the standard of living and the
economy of nation (Bridge and O'Neill, 2012). In order to manage the small organisation in an
adequate manner. The requirement for making proper strategies as well as terms which deliver
efficient direction to their worker for attain companies targets within a certain period of time.
The outlined organisation, Austin Fraser is undertaken as this is a small enterprise i.e. founded in
2001. This is a consultancy and recruitment firm. Significant domain of giving services are
engineering, human resource, information technology etc. In the present report, assignment is
covering main considerations of small firms need to address the plan and allocate effective use of
resources to meet companies targets and objectives. In this, also prepare a monthly cash flow
which shows variable and fixed costs and break even analysis. Also describe the process of
customer relationship management and also the ways of funding.
TASK 1
P1 Key considerations of social enterprise require to address when allocating and planning
resources for meeting companies objectives
Austin Fraser is undertaken as this is a small enterprise within the domain of
information technology, engineering, accountancy, animation, accountancy and so on. This is a
small scale of organisation so it cannot have various resources as well as money in order to
deliver provide its services to end user. It provide better employment opportunities to small
organisations. Along with that it render best recruitments to localized individuals. In addition,
Austin Fraser administration require to take better support of numerous retailers that will assist in
giving effective consultancy service to the employed as well as unemployed people (Burns,
2016). The major purpose of referred company is to cater better services and more employment
to local individuals for enhancing their living standard. There are several factors which needs to
be addressed by the management planning for future growth for meeting the common purpose.
There are certain considerations which are as follows: Financial resources: It play a very important role for every companies as managers will
not able to perform their activities effectively if they are not having enough finance.
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Having less finance will give adverse impact on enterprise as they will not be able to
manage the activities of business successfully. In order to manage finance of Austin
Fraser company in a better manner, there is a requirement of finance manager in an
organisation for managing all the financial accounts such as account of loss and profit
cash flow statement, balance sheet, balance sheet so on. It is useful in interpreting the
profit & loss account of company. Employees and its skills: Staff members are the important assets of every organisation.
Additionally, it is an HR responsibility to recruit capable and talented employees and
provide them training. So, that workers can accomplish their task in an effective way. It is
duty of HR management to deal with staff members in a better manner along with that
also involve them in taking decisions. It is very useful in meeting the Austin Fraser
company's goals and objectives within a given time duration.
 Vision, objectives & goals: This is fundamental for each and every organisation to
explain their proper objectives, goals and vision to their members of staff that are
connected to business. It delivers good opportunities to Austin Fraser manager for
developing an framework of different functions which are needed to accomplish work on
time by workers (Drucker, 2012). This type of outline provides better guidelines to
employees for meeting goals and objectives of the firm. In this term, Austin Fraser
administration deliver effective training to employee by opting best technologies as well
as techniques for improving their perform in an better way.
TASK 2
P2 Evaluate various processes of consumer relationship management for small firms
Customer relationship management
This refer to practices, techniques and strategies that firm uses to maintain along with
evaluate customers interactions with a purpose of making best customer relations. It is the best
techniques for communicating and managing harmonious relations with new and existing
customers (Drucker, 2012). It is useful in improving the level of organisation profits. Along with
that, it aid in sustaining buyers for a long run and increasing sales as well. In this, data and
proper information is accumulated through the assistance of different communication channels
like as emails, telephone and many more.
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Process of Customer relationship management Identification of customers base: In this step, it involve buyers segmentation on the basis
of its profitability. It aid in analysing the most profitability segment of buyers. Through
this, goods are given according to such targetting segments which will aid in increasing
of sales as well (Five Step Process for CRM, 2018). Customer intimacy: In order to achieve objective according to this step require to make
familiar nature with buyers. In this, process of building a proper relationship with buyers
it require the analysis of buyers needs and their purchasing habits. In this context, it
require to improve the channel of communication which assist in building bond as well as
learn about their buyers. If Austin Fraser organisation want to achieve the customer trust
and build proper base of customers require to monitor the needs and taste of customers.
( Source: Process of Customer relationship management, 2018 ) Network development: It is a procedure for developing a customers relationship. It play a
very main role in providence of enterprise activities properly within the market. It
involves in making a relations with various intermediaries such as workers, suppliers,
internal parties, investors etc.
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Illustration 1: Process of Customer relationship
management, 2018

 Value proposition development: It begins after finding out the targetted buyers which
involve providence with higher quality of goods as it improves the value of it in an
effective way. As outcomes, it gives the opportunity to enhance the companies image.
 Customer life cycle management: In this CRM process, it gives the information about
various steps by which buyers goes by purchasing, considering, maintaining loyalty and
use it towards goods (Durst and Runar Edvardsson, 2012).
P3 How small firms can develop transnationally and its advantages and disadvantages
Transnational sales
It is the capacity of Austin Fraser organisation to sale their goods within new nation
along with that another market for capturing higher numbers of market share. It will give the
opportunity for completing their sales goals as well as net profits. In this terms, management is
require to use various techniques which aid in expansing their functions within new
marketplace. It will help in making a better image of brand among the customers.
In order to attract buyers, they have to concentrate on its price and goods. These both the
factors aid in achieving competitiveness within their enterprise activities. Their are various
disadvantages and advantages which are linked with business activities are given below:
Advantages Lifestyle: In medium-sized or small firms, certain styles of performing work is followed
through employees that are working within the enterprise. By the help of employees they
can gain more better and higher numbers of benefits (Durst and Wilhelm, 2012). Independence: In this, managers are having power of taking a effective decision making
for deploying entire the enterprise activities. Their is a need of companies managers to
take effective decisions on regular grounds to give various opportunities for operating a
organisation in an effective manner.
Disadvantages Lack of finance: In Austin Fraser small firms, funds are very essential factor which
decline their ability in expanding business operations.
 Time period: It is an other term, which gave impact on expansion of plans within a span
of time. It needs time for setting in a new market as it makes the work more typical.
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TASK 3
P4 Produce an annual itemised monthly cash flow by showing variable and fixed cost
Sources of funds
It is fundamental for an organisation to manage their funding sources employing distinct
methods and techniques of managing and gaining funds to support their operation according to
the requirement efficiently. There are various sources of increasing funds for small firms and its
performance of various activities properly. Finance is an important need for enhancing overall
work effectiveness by using innovative strategies. The basic needs behind having a proper
amount of finance which involve debts clearance, continuity in enterprise activities, working
capital management etc. The main sources which are used by companies are divided into two
parts which are external and internal.
Internal sources Sales of fixed assets: In order to increasing of funds by selling of fixed assets for the aim
of solving the requirement of urgent funds. This source is also known as divestment
(Hammer, 2015).
External sources
It is further divided into various parts like as short term and long term.
Long term Mortgages and bank loans: It will help in getting funds from private banks where certain
asset amount are mortgages for a particular span of time. In this, such principles state that
sometimes amount of loans is not passed by bank.
Short term Leasing: It is the agreement of hire which allow external parties to use the place and in
exchange they give some return of amount as a lease. Overdraft facilities: This facility is provided by bank which gives options to company is
to overdraw the cash from bank account according to customers requirements. Bank loans: It is consider as an agreement within bank and borrower which is require to
repay within a limited time period on daily instalment basis. These amount of loans they
charge the fixed rate of interest on annually basis (Harmon, 2015).
Budgeting and Forecasting
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Forecasting refers to planning of future activities which aid in directing the workers
performance on various actions. The procedure of budgeting and forecasting is very significant
for a business organisation to understand the probable expenditure and manage entire operations
according to the company's requirement. It involve the formulation process of various budgets
which involve standards which are used for controlling actual performance. Their are various
strategies which aid in proper forecasting and planning are as follows:
 Determination of moving average: It gives the opportunity to understand about
present trends as well as changes which are require in their previews goods. It will aid
in fulfilling their desires (Jasra and et. al., 2012).
 Time series data: This strategies are used to determine the information regarding a
time duration in which they have to accomplish a new project by company. In this,
such information budgets are made as well as standards are set by workers. It will aid
in defining its roles and responsibilities.
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P5 Break even analysis
Break even analysis
It is an very essential strategy which aid the company in understanding the facts which
are require to sell higher units annually and monthly for covering all the cost which is incurred
actually. It aid in determine the margin of safety point on the basis of collected revenue as well
as incurred cost. It also aid in knowing the level of sales which assist in covering all the fixed
assets. It gives the opportunity of making policies for improving the sales as well as earning
higher level of revenue. BEP is the condition where no loss and no profit situation take place
within the company (Jenkins and et. al., 2013).
In regard of achieving the success of small companies like Austin Fraser organisation is
require to make a plan of its sales and costs amount. Break even analysis gives proper data and
information in relation of sales i.e. require to outline all the actual cost for making profits by
declining the wastage amount. For example: Variable cost: 10 per unit and Fixed cost: 18000 as
well as selling price: 12 per unit. Then Break even analysis is:
Break Even Point = Fixed cost/construction margin per unit or product= 18000/(12-10)=9000
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P6 Interpret key financial statements
Austin Fraser financial statement involve cash flow statement, profit and loss account
and Balance sheet. All these various accounts gives several information in the context of
company. It is very important for small companies such as Austin Fraser find out their important
information of liabilities, assets, income, expenditure etc. It aid in managing their operations
successfully. Some of information is collected by interpretation of financial statements are
mentioned here : Profit & loss account: Measurement of proper profits and loss is crucial part of an
organisation which is needed to undertake by firm to make benefits and track their
benefits and loss. In this, it involve concise information about companies transaction
regarding their expenses, costs and revenue which is incurred within the one financial
year. By interpretation of information, it concludes about companies ability for making
profits by declining of unnecessary expenses. Balance sheet: This statement gives information of shareholders equity, liabilities and
assets within a given period of time. It is used by investor to understand about
companies goodwill and position within market. It is categorised in the three sectors
that help in apprehension organisation owes, owns as well as amount invested through
shareholders. This will aid the administration to learn about their skills of making
payments of company's existing debts.
 Cash flow statements: This statement is in 3 divisions such as a financing, investing
and operating activities. It gives the information of cash as well as cash equivalents
which are leaving and entering the company. It aid the company management to
manage the capacity of cash generating and cash position to make the payments of
liabilities.
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Cash-flows statement gives adequate data about outflow & inflow of cash. This aid in
proper administration of cash.
Interpretation:
Gross profit: It represent the profit margin to the net sales it means the percentage of
gross profit to the net sales this is measured by using : gross profit/net sales*100. In 2017, gross
profit margin was 150 and it remains same in the year of 2018. It simply shows that nothing was
changed during these years.
Net profit: It shows net profit percentage to the net sales, this is calculated by using: net
profit/net sales*100. In the year 2017, Net profit ratio is 120 and in the year 2018 it increased to
126.666667. It shows that it increases are new profit.
Current ratio: It shows the liquidity of the organization by using: Current asset/current
liability. Its ideal ratio is 2:1 which reflects the current assets must me double of its current
liabilities. In the year 2017 companies current ratio was 0.75 and it decrease in the year 2018 by
0.5. It shows that the ability of organization is decreases to pay off their long term and short term
liabilities.
Acid test ratio: It represent the liquidity of the firm it another words it reflects the
soundness of the financial information by using: Current asset-inventory/ current liabilities. Ideal
ratio of this is 1:1 It simply means that current assets must be equal to the current liability. In the
year 2017 the acid test ration is 0.58333333 and it decreases with 0.30555556. It shows that how
well an organization is able to pay off their current liabilities by use of their quick assets.
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TASK 4
P7 Key regulations and legislation that have its implications on small enterprises
The regulations and legislations which are set by the governments. It gave negative as
well as positive influence on small firms. These regulations are given to bring proper control
over the business activities. It is the obligation on the Austin Fraser management is to adhere
such regulations and rules at a time of performing business activities. Some of are explained in
detail below: Health and safety Act 1974: It key aim of this legislation is to bring obligation on
managers to secure the workers health within the working environment. In this, Austin
Fraser management is require to use all the safety controls which ensures the health
safety of outsiders and workers (Schaper and et. al., 2014). It will aid in encouraging
workers of companies is to give their best in meeting companies goals and targets. Data protection Act: This act restricts the workers and managers can not share the
confidential information to others parties without their permission. In this, Austin Fraser
management is not allow to give workers information to others person. It will aid in
declining the rate of employees turnover by gaining their trust.
 Tax and employment act: This Act brings an obligations on Austin Fraser management
is to give information of tax payments on time. It gives an opportunity to have a support
of government at a time of performing various activities. It will help in making
improvements in the image of brands properly (Smit and Watkins, 2012).
Numerous legislations and laws are being executed by an organisation in regard of
managing their operation according to the determined norms and government laws in ethical
manner. It is significant for Austin Fraser to comply these regulations and terms in order to
accomplish their set targets and standard objectives without any fluctuation in more adequate
manner.
CONCLUSION
This can be summarised from the above discussed report that human resource
management is paramount for a business organisation to manage their personnel and attain
standard objectives or performance in significant manner. HRM discipline whole structure
encompassing the people management in firm with macro perspective. HR professional perform
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numerous functions with the purpose of managing employee, enlarging productivity and
emphasise numerous practices in significant manner. Employee relation management is their key
aim which affect their decision making of HRM carrying out the performance and productivity
significantly. It is essential for HR manager to outline distinct employment legislation and
undertake intellectual property rights in regard of managing relations among workplace
adequately.
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REFERENCES
Books and Journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Drucker, P., 2012. Management. Routledge.
Drucker, P., 2012. The frontiers of management. Routledge.
Durst, S. and Runar Edvardsson, I., 2012. Knowledge management in SMEs: a literature review.
Journal of Knowledge Management. 16(6). pp.879-903.
Durst, S. and Wilhelm, S., 2012. Knowledge management and succession planning in SMEs.
Journal of Knowledge Management. 16(4). pp.637-649.
Hammer, M., 2015. What is business process management?. In Handbook on Business Process
Management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Harmon, P., 2015. The scope and evolution of business process management. In Handbook on
business process management 1 (pp. 37-80). Springer, Berlin, Heidelberg.
Jasra, J.M. and et. al., 2012. Determinants of business success of small and medium enterprises.
Jenkins, P.T. and et. al., 2013. Method and system for managing enterprise content. U.S. Patent
8,464,206.
Schaper, M.T. and et. al., 2014. Entrepreneurship and small business.
Smit, Y. and Watkins, J.A., 2012. A literature review of small and medium enterprises (SME)
risk management practices in South Africa. African Journal of Business Management.
6(21). p.6324.
Weske, M., 2012. Business process management architectures. In Business Process Management
(pp. 333-371). Springer, Berlin, Heidelberg.
Williams, C.C., 2012. The hidden enterprise culture. In Enterprise, Deprivation and Social
Exclusion (pp. 184-204). Routledge.
Wynarczyk, P., Piperopoulos, P. and McAdam, M., 2013. Open innovation in small and medium-
sized enterprises: An overview. International Small Business Journal. 31(3). pp.240-
255.
Online
Five Step Process for CRM. 2018. [Online] Available through:<https://bizfluent.com/list-
6531382-five-step-process-crm.html>./
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