Importance of Resource Management for Organizations

Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
AC 1.1- Resource requirements of three profiled businesses......................................................1
AC 1.2- Importance of resource management for the organizations...........................................2
AC1D1: Factors which impact resource management.................................................................3
TASK 2............................................................................................................................................4
AC 2.1: Monitoring and management of physical resources.......................................................4
AC 2.2: Measures to reduce the impact of resource wastage......................................................5
AC 2.3: Assessment of costs of high-profile technological failures............................................5
AC 2.4: Assessment of business case for the use of ethical and sustainable resources...............6
AC2M1: Evaluation of high-profile cases of wastage of resources............................................6
TASK 3............................................................................................................................................7
AC 3.1-Assessment of need for human resource planning..........................................................7
AC 3.2- Evaluation of the methods for monitoring and improving employee performance.......8
AC 3.3- Effectiveness of reward systems....................................................................................9
AC3D1- Impact of employee engagement in an organization...................................................10
TASK 4..........................................................................................................................................11
AC4.1- Data needed to review and make judgements on employee performance....................11
AC 4.2- Data needed for reviewing and making judgements on the utilisation of physical
resources....................................................................................................................................12
AC4M1- Evaluation of resource management practices...........................................................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Resource Management refers to the the techniques and methods which are adopted so
that the organizations are able to efficiently manage their resources (Brewster, 2017). Resources
which are available in a particular organization are quite limited in nature. Thus the firms need to
ensure that they are used optimally so that the required efficiency and effectiveness can be
achieved easily. This is an important filed for which the management requires practical
application of the appropriate techniques and should make use of the ways through which the
desired level of efficiency and effectiveness can be achieved. In different companies it can be
applied in a particular manner as desired by them for their work and their specific needs and
requirements. The management of the companies has to excel in this because this will enable
them to optimize and use the resources optimally for achieving the outcomes. In this assignment,
specific analysis will be made on analysis of resource requirements, importance of resource
management, evaluation of use of resources. Additionally, focus will be made on efficient use of
human resources and judgements on the efficient use of resources within the company.
TASK 1
AC 1.1- Resource requirements of three profiled businesses
In this discussion, there will be a detailed focus made on the three businesses dealing in
diverse sectors. The resource requirements of these businesses are as follows-
Stems- Stems is an agricultural business. It deals in the primary sector. It is a family
business in which seasonal workers are hired as per the needs and requirements. The resource
requirements of this firm is as follows-
 Physical resources- As Stems is looking forward to diversify its range of crops it needs
different types of physical resources for ensuring the same. It will help the company as it
will be able to produce more crops in the peak season to earn profits.
 Human resources- In the peak season, Stems requires the services of seasonal labour
through which it is able to meet its various requirements. Thus this will help the
organization in the proper management of its crops.
 Intellectual resources- These are the resources which are used in the businesses so that
they can assess their intellectual talent in the right manner. In the context of Stems, these
1

resources can be quite helpful so that the company is able to achieve success in the
future.
 Financial resources- These are the resources which can be quite helpful so that the
organizations are able to assess their financial capacity in the right manner. Therefore for
Stems the requirement is to make sure that the financial resources are used in the right
manner.
AluPan- AluPan is a small private company which deals in products related to panels of
ships, planes and rail cars. Aluminium is used by the company for this purpose. The firm is
earning decent profits. However in order to grow in the future time period there is a requirement
to ensure proper resource management so that the company is able to achieve a distinct strategic
edge over competitors. The resources required by it are-
 Financial resources- Financial resources are required by AluPan so that it is able to
make sure that it provides good products to its customers and clients.
 Physical resources- The right materials are needed by AluPan so that it is able to
manufacture the goods for its customers and clients.
 Information resources- These resources are required by AluPan so that the information
can be transmitted in the right manner. In this way the company will be able to function
in a proper manner.
 Human resources- They are required by AluPan so that they are able to manage their
work in a proper manner. In this way the firm will be able to function properly.
Spirus- Spirus is a call centre which provides customer care services for different types
of organizations. To provide the services required by its clients it needs the following resources-
 Technological resources- They are needed so that good services can be provided to the
clients. With the technology it is possible to provide these services.
 Human resources- Talented people are required by the company so that it is able to
provide good services to its clients. Thus it needs to employ efficient workers.
 Financial resources- Spirus requires making the use of financial resources because in
this way they will be able to make sure that they can achieve their relevant goals and
objectives.
2

 Physical resources- Any organization requires making the use of physical resources
available with it so that it is able to maximize its capability to achieve. Thus this is done
by Spirus also.
AC 1.2- Importance of resource management for the organizations
There is an importance of resource management within the organizations (Chams and
García-Blandón, 2019). This is due to the following reasons-
 Maximization of efficiency- Resource management is helpful for the companies so that
they can maximize their level of efficiency (Clark and et.al., 2016). If the organizations
properly use these resources then they will be able to achieve their desired outcomes.
Stems, AluPan and Spirus should ensure this for better management of their resources.
 Investing in the projects- If there is proper resource management within the companies
then they can invest in the right projects (Cooke, 2018). This will help them in
maximizing their profits. It is required that the management of Stems, AluPan and Spirus
is able to understand the importance of investing in the right project.
 Identification of problems- When the organizations invest in different types of projects
they are bound to face certain types of problems. Thus with resource management they
can make sure that they are able to identify these problems easily and therefore use the
necessary techniques to rectify them. The managers of Stems, AluPan and Spirus are able
to identify the different types of problems quickly.
 Transparency in the process- When the firms use resource management they can bring
the desired transparency in their various processes. This can help them a lot in indulging
in strategic planning effectively. The management of Stems, AluPan and Spirus can bring
the required transparency in their processes.
Control of projects- With the use of resource management, the firms can hope to gain
the required control over their various projects (Delery and Roumpi, 2017). The managers of
Stems, AluPan and Spirus can hope to bring the required control over their projects if they use it
in the correct manner.
 Avoiding unforeseen hiccups- When a project is initiated, it witnesses different types of
problems and issues. These can be unforeseen can cause losses to the organization.
Therefore there needs to be a right approach in resource management from the
3

organizations so that they are able to effectively manage the resources. The management
of Stems, AluPan and Spirus should make sure that they avoid them.
 Avoiding overallocation of resources- In the initiation of projects, there can be
overallocation of resources as well. Thus there needs to be a correct use of resources by
efficiently allocating them according to the requirements of different types of tasks.
Therefore the managers of Stems, AluPan and Spirus should make sure that this
overallocation of resources can be avoided.
 Safety net- Using the resource management makes sure that there is a safety net which is
available for the different companies. Thus this helps the management of Stems, AluPan
and Spirus to develop a a safety net effectively.
Resource Management can be achieved within the organizations by ensuring the
following-
 Identification of resources- The resources which are to be used within the organizations
can be identified quickly by the organization if they practice resource management. This
can create an advantage for Stems, AluPan and Spirus.
 Optimization of resources- The resources in the companies can be optimized
effectively. This is an advantage for the management of Stems, AluPan and Spirus.
AC1D1: Factors which impact resource management
There are different types of factors which can create an impact on the resource
management within the organizations. These factors are described as follows-
Internal factors-
 Nature of business- The nature of business which is conducted within an organization
creates an impact on the resource management. Therefore the organizations are required
to take this factor quite seriously.
 Availability of resources- The availability of resources within the organization also
creates an impact on the resource management. Thus the companies should make sure
that they have good availability of the resources.
 Budget- It is important for the organizations to consider their budget so that they are able
to manage the usage of their resources in the right manner. Thus in this way the firms will
be able to make sure that they are able to use their resources correctly.
4