Resource Management - Tata Steel

Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Resource requirements of organisations in different sectors of economy........................1
1.2 Key requirements relevant to resource management in organisations in different sectors of
economy.................................................................................................................................2
TASK 2............................................................................................................................................3
2.1 Evaluate how the use of physical resources is monitored and managed..........................3
2.2 Evaluate the impact of resource wastage..........................................................................3
2.3 Assess the costs of high profile technological failures....................................................4
2.4 Assess the business case for the use of ethical and sustainable resources.......................5
TASK 3............................................................................................................................................6
3.1 Assess the need for human resource planning in the workplace......................................6
3.2 Using motivational theories, analyse what motivates people...........................................6
3.3 Evaluate the methods used to monitor and improve employee performance..................8
3.4 Assess the effectiveness of reward systems in different contexts...................................9
TASK 4............................................................................................................................................9
4.1 Monitor the use of physical resources against performance measures and procedures...9
4.2 Analyse data on employee performance.........................................................................10
4.3 Report on the effective use of human and physical resources.......................................10
4.4 Make recommendations to improve efficiency..............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
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). The present report is
based on TATA steels, an Indian multinational steel making organisation. The company was
incorporated in 1907 and headquartered in Mumbai by Jamsetji Tata. It has been analysed that
this company is planning to adopt different IT tools for optimising their cost and enhancing
stakeholders experience. It can be said that this adoption will also help company in improving
work efficiency of employees as they are using latest and up graded IT tools. 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.
TASK 1
1.1 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.
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).
1.2 Key requirements relevant to resource management in organisations in different sectors of
economy
Within corporate world, managers of TATA Steels have to manage resources in
accordance with the requirements associated with health and safety, environment, legislations,
employment etc. Some of the basic requirements of TATA Steels are stated as below:
Requirements
Compliance with legislation: In context to TATA Steels, it can be said that its managers are
required to follow all laws related to workplace and employees for sustaining longer at
marketplace. Manager have to consider all some main facts which are defined as below:
 Health and Safety: Manager of TATA steels tries to not use any hazardous substances at
workplace which impacts negatively on the health of employees.
 Environmental: It is essentail for TATA Steel's manager to properly dispose their iron
waste so that it does not impacts upon environment negatively.
 Employment: In this, it is essential for manager to develop positive and safe environment
at workplace that helps employees to work freely in company.
Code of conduct: It is considered as the set of rules and regulation, social norms, rules
related to society etc. for individuals. In context to TATA Steels, it can be said that its managers
are required to ensure that all employees should follow code of conduct of the company.
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.

TASK 2
2.1 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,
Technology, 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 relation to TATA Steels, there are various strategies or systems through which
the use of physical resources can be managed at workplace. 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).
2.2 Evaluate the impact of resource wastage
One of the major risks that TATA Steels 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: 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 th e overall functioning and reputation of enterprise.
2.3 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).
MOD Procurement system
MOD procurement system is one of largest public procurement company that handles
complex and technological related requirements of world. This system can be used by TATA
Steels so that they could effectively use available resources.

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.
Porter's five force model
Threat of substitute products: In case of TATA steel threats for substitute products is
high, as many rivalry companies come up with same kind of products and satisfies the
requirements of customers. Close substitute products of TATA steel exist at marketplace, which
increases the probability of consumers in switching to alternate products in response to higher
price.
Rivalry among existing firms: Degree of competition is low as TATA steel is well
established company. New companies need to innovate and generate new products and attract
customers, by providing them attracting offers and satisfactions.
Threat of new entrants: In the case of TATA steel, threat of new entrants is low.
Reason behind this is new company wants to invest huge amount of money. Besides this, quality
of product, pricing and marketing have to be considered by new entrants.
Bargaining power of suppliers: There are very large number of suppliers at marketplace
in reference to TATA steel, hence the bargaining power is low. Suppliers plays very important
role as they provide raw material to the company. Company start loosing its customers, if the
bargaining power is high.
Bargaining power of buyers: Company like TATA steel have a low bargaining power
of customers, it raise the competition and availability of services and product from different
manufactures.

TASK 3
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: 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: 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.
Organise staff: 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.
3.2 Using motivational theories, analyse what motivates people
Motivational theories works as the performance booster for employees. In context to
present case scenario of TATA Steels, it has been analysed that adoption of IT tools at workplace
will definitely enhance work of human resource department of this company. This is because, it
is essential for HR department to convince employees to adapt and learn usage of IT tools with
help of training session. This can be easily done by using some of effective motivational theory
which will help HR team of TATA Steel in influencing employees to accept latest technology
easily. 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 Vroom's expectancy theory, Herzberg's Two Factor theory and Maslow's
motivational theory are main theories which are used by Human resource managers of TATA
Steels for motivating its existing workforce effectively. All of them defined one by one as below:
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: It is based on core basic need like food, shelter, cloths etc. of an
individual which are highly important for their survival.
Safety needs: It includes job security, freedom, safe working environment and
protection.
Social needs: Friendship, team spirit, indulging employees into social events, etc.
Esteem needs: Self respect, achievements, confidence, appreciation and recognition
(Kanki, 2019).
Self actualisation: Realizing overall potential of individuals.
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.
Vroom's Expectancy theory
Vroom's expectancy theory states that work performance of employees is completely
based upon some essential factors like experience, abilities, skills, perspectives and knowledge.
Vroom have also said that performance, efforts and motivation are directly interrelated to
individuals motivation. For elaborating this more effectively, Vroom's have used three variables
which states that how employees can be motivated at different level. All of these variables are
stated as below:
Expectancy: It can be said that employees are different kind of expectation regarding
their performance and the work which is going to be performed by them. In context to TATA
Steels, its HR manager initially focuses on analysing what kind of training, resources and
guidance are required by employees to improve their performance.
Instrumentality: In this, HR manager of TATA Steels focuses on evaluating that
employees are performing their effectively or not. They also judge that workers are meeting their
provided goals or not. In addition to this, HR team also ensures employees that they will
definitely get rewards for their effective performance.
Valence: It refers to emotional status of employees which is completely based upon the
outcome which have been attained by them in terms of rewards. In context to TATA Steels, its

HR manager focuses on discovering that which type of rewards are valued by its employees.
These rewards can be terms of monetary value, benefits, promotions and relaxation on working
pattern.
Herzberg's two factor theory
This theory was given by Frederick Herzberg in the year 1959. The psychologist have
stated that there are mainly two factors which owns capability of influencing motivation at
workplace. These factors are motivators and Hygiene factors which are defined as below:
Motivators: It can be said that influence of motivator factors influences employees to
work more harder at workplace. As per views presented by Herzberg, it can be said that there are
around six motivational factors that motivates employees to perform well that is achievements,
work itself, responsibilities, recognition, possibility of growth and advancement. Therefore, it
can be said that if individuals are having high number of these factors then their satisfaction level
is high. Whereas on the other hand if proportion of these factors are low then it will definitely
affect their performance in negative manner. In context to TATA Steels, its HR manager is
trying to enhance number of motivational factors at workplace so employees can easily accept IT
tools and also reflects their own efforts to enhance their performance.
Hygiene factors: These factors are not related to job work but its directly related with
working environment. Hygiene factors basically includes technical supervision, subordinates,
personal life, job security, administration, relationship among peer members, technical
supervision etc. In context of TATA Steels, its HR manager focuses on providing better
workplace environment to employees so that they can freely in company without facing any of
the difficulty. As a result, it motivates employees to perform well.
3.3 Evaluate the methods used to monitor and improve employee performance
Human resource manager of TATA Steels 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: 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: 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 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). Some of the main type of reward systems that are used by
TATA Steels are defined as below:
Bonus: It is termed as compensation that is provided to employees on the basis of their
performance. Bonus is excluded from the salary as the employees are receiving it as reward. In
context to TATA Steels, its HR manager provides additional bonus to employees which
motivates them to work more harder.
Promotion: It is the another type of reward system that motivates employees more
quicker. With reference to TATA Steels, its HR manager uses this reward system for retaining
them longer in the company. It also motivates them as they feel appreciated. This ultimately
enhances their performance.
TASK 4
4.1 Monitor the use of physical resources against performance measures and procedures
It is essential for manager of TATA Steels 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 TATA Steels 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 resources.
Customer feedback: When the use of resources within an organisation takes place as per
the prescribed manner, activities such as production occur in a timely manner. In this case, when
processes take place within time, customers receive the desired goods and services and give
positive feedbacks (van Woerkom, Bakker and Nishii, 2016). Thus, taking feedbacks is an
effective tool by which entities can monitor and review the use of physical resources.
4.2 Analyse data on employee performance
To ensure that activities and processes take place in the desired manner within TATA
Steels, it is essential for its managers and leaders to track the performance of employees. There
can be various measures by which the output delivered by employees can be analysed. Some of
these measures can be tracking the sales figure, finding the variances between actual and desired
performance of employees, taking regular customer feedbacks in relation to quality and
effectiveness of product and service delivery (Zhang, H. and et. al., 2017). It is essential that
managers analyse and review the performance of workers at frequent time intervals so as to
ensure that the goals and objectives of company is met in timely manner.
4.3 Report on the effective use of human and physical resources
Human as well as physical resources are essential components of TATA Steels to ensure
that the business achieves success. In context of primary, secondary and tertiary sector, it is
necessary that the role of physical and human resources is not ignored (Mijumbi and et. al.,
2016). Human resources are considered to be the backbone of an enterprise and can not be
neglected if an entity wants to ensure orderly conduct. In addition to this, business functions and
processes can not be executed without the use of physical resources.
4.4 Make recommendations to improve efficiency
Following are some recommendation in order to enhance effectiveness and efficiency of
operations:-
 Encouraging the staff by rewarding as well as recognising their performance so as to
increase their operational efficiency.
 Setting realistic and feasible targets for utilisation of resources so as to track and review
the alignment with target.

 Developing a friendly environment so that employees perform full to their potential (Gu
and et. al., 2017).
 Regular training and development activities to increase the skills and capabilities of
employees
 Conducting effective human resource planning to make sure that all the tasks take place
accordingly and goals get accomplished in timely manner.
 Taking feedback from customers on regular basis so as to gain knowledge about those
areas where improvements can be brought about to enhance organisational performance.
CONCLUSION
From the above mentioned report, it has been concluded that resource management is
considered as an essential part of organisational work as it helps the company is getting desired
resources whenever they are required in effective manner. It has been identified that every
organisation has different resource requirement which are based on their sector. It can be said
that physical resources are highly important for businesses to execute their business activities
effectively. Performance of human resources can be improved by motivating them at regular
basis and fulfilling their basic requirements. It mandatory for companies to overview and
monitor work of employees in order to improve deficit areas.

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