7 Key Resource Management Complete Guide

One of the significant management exercises is resource management so merchandise and ventures can be delivered, and made accessible to clients in period of their scarcity. Subsequently, one of the trial of good manger is arranging assets and afterward using these to their ideal level. The assets can be comprehensively arranged as material, manpower, money, machinery-equipment, information-knowledge, services & time.

RESOURCE MANAGEMENT OF MATERIAL

Importance

The idea of material stretches out to all that is acquired from nature and resulting supplies in parts, adornments and items which we produce for business action. Hence, the assets like land, water, air and so forth are essential materials which we use for the ensuing cycle. The abundant supply of these materials is constrained commonly and its accessibility will rely on its amount that is accessible in nature.

One of the problems with material use is the need of technology to convert it to a useful end. Other perspective is the requirement for transportation to expand the utility of the assets. All development of material calls for transportation costs. Despite the fact that nature gives assets unreservedly, it’s dealing with, transportation and forming it to a valuable item acquires cost and work. One finds that enterprises that handle the natural resources are situated at the source of supply than at the source of consumption. It invariably calls for temporary storage and thus involves inventory levels and locking of funds. In most of the business, the material costs are about 40 to 70 % of total costs.

Issues related to resource management of material

Mangers may have to handle important problems such as

Buy & Make – At what process or manufactured level to buy the material that is needed?
How much value can be added to the given resource?
What is the technology involved in using a particular material?
From where to produce the material and at what price?
How to handle and store the material? What is its shelf life?
What is the level of inventory to be carried out?
How to use or dispose of the waste materials?
Is the knowledge & technology available with the organization to convert material resources to a useful product? One will thus appreciate that material resources pose a number of management problems.

RESOURCE MANAGEMENT OF MANPOWER

Importance

Humans have been endowed with a faculty to think, judge, and priorities actions. Humans offer innovativeness and advancement. In spite of the fact that nature has given these resources to each person, the obtaining of information, aptitudes, disposition of taking a gander at work, observation about all that is seen, changes so much that one can’t anticipate a standard reaction from every individual. Thus, an individual as an asset is difficult to control as a uniform resource.

In addition, individual have their very own meaning fulfillment and might possibly be slanted to work with a similar excitement. Besides, people change their demeanor every once in a while and have their own dispositions towards work. Along these lines, human being is an unpredictable resource.

Issues related to resource management of man power

Utilizing human resource raises a number of management problems. Some of important issues are:

What is his past work experience?
How far are his education and skills practically relevant?
How long will he be useful to us?
What reciprocation does he expect from us?
Will he be able to work in a group?
Are his family circumstances complementary to the work career we are offering?
How will we decide his career progression?
To what extent should he be made a partner in decision making?
How can he be groomed to take further responsibilities?
How will he compare with others working with him?
How will he influence the workgroup balance?
How does he fit in the job description?
Can we change the job description to suit his talent?
What can we do to accommodate him?

RESOURCE MANAGEMENT OF MONEY

Importance

Money is a common measure of activities and thus it occupies a great importance in any activity. The added advantage of money is that it has a capability to be used for alternate applications and, therefore, can be stored in a virgin form to be used for any subsequent application. For example, with the same money you can buy a life policy, purchase an asset such as a TV or spend on a hotel visit.

Thus, it has a stored value and can be utilized in future and therefore has the potential for future storage. It has an intrinsic value which is mostly stable but its purchasing value will change from time to time. Its ability to meet expenses on demand gives it a liquidity and thus money measures our liquidity. Since, we can express all activities we can use it as an accounting measure and draw conclusions about our profitability.

Issues related to resource management of money

Utilisation of monetary resources raises the following management problems:

What investment will such an activity call for?
What amount of working capital will be required?
How will the money be raised?
What will be the rate of interest?
What will be the cost of raising money?
What credit terms will be offered to customers?
How much money is locked in debtors?
How much are the book receivables?
How much funds are available in the bank?
What terms are suppliers expected to raise?
What is your liquidity and how does it compare with present business?
If the business is growing how is liquidity affected?

RESOURCE MANAGEMENT OF MACHINERY

Importance

Incorporates all gear utilized for creating products and services. The expenditure on machinery is deducted over number of years in terms of depreciation since the entire cost paid can’t be recuperated in one bookkeeping year.

As a thumb rule, the expenditure which you do not show within a financial year, but spread over number of years, is treated as an investment and therefore, an asset. Machinery indicates long term use, one time investment and provision of depreciation.

The other salient feature of most of the assets is that it requires maintenance and servicing so as to keep it productive. Thus, some annual cost is incurred to keep the asset working. Since, machinery cannot be readily disposed in times of need; it is not a liquid asset.

Being a onetime decision involving the use of asset for number of years, it has to be gauged in future technological trends. In fact, most of the assets need some technical review as to their use for a longer time.

Issues related to resource management of machinery

The application of this resource raises management problems such as

Will the asset be technologically useful throughout its life?
What will be the maintenance cost?
What is its present worth?
Is the organization equipped to use the machinery?
How is equipment competitive in the market?
Will lease or mortgage finance be available for the deal?
How is the utilization of assets planned?

RESOURCE MANAGEMENT OF KNOWLEDGE / INFORMATION

Importance

Information was not perceived as a different asset till competition got solid and individuals wanted to find out about business condition and the need to present new items and cycles. Improvement of PCs alongside correspondence innovation offered consolation to this idea and individuals began taking a gander at information as an advantage. The information in crude structure is changed over to helpful information.

Indeed, even while enlisting labor, we consider what information the person brings to an association. Recommendations of mergers, acquisitions, and specialized cooperation are being made with the goal of procuring information. Inorganic procurement of information diminishes the time taken for comprehension and actualizing exercises.

Issues related to resource management of knowledge / information

Information as a resource raises a number of management problems such as:

What value should we pay for information?
Where is the useful information available?
How can we collect and store it?
How can we retrieve the information in time?
How will be disseminate information to all concerned?
How will we encourage people to “innovate”?
How will we deal with information obsolescence?
To what extend will we invest in business intelligence?
Who will act as Information Head?
How can we use and obtain expert systems?

RESOURCE MANAGEMENT OF SERVICES

Importance

When we observe any business carefully, we find a number of services is being used by business. Take the example of electricity, water, gas supply, etc. When we analyze this, we realize that modern business is dependent on the availability of these services. Most of the equipment requires after sales-services and this will invariably come from outside. Transport, health, communication are other examples of services which are needed for day to day existence of business. The spectrum of services is wide and varied.

Issues related to resource management of services

The number of problems which arise in supply of service as a resource may be listed as

What are the services we require?
How can we reduce the cost of these services?
What are the alternatives to meet the requirement?
Which services can be outsourced?
What sort of maintenance agreement should be there for such services to ensure prompt and regular service?
What should be the control mechanism to ensure the continuity of these services?
Based on the present investment what are the services we can extend to others?
Can these services be used jointly with someone else?

RESOURCE MANAGEMENT OF TIME

Importance

In view of its free availability time is ignored as a resource of very critical importance to management. The father of scientific management, Mr. Fredrick Taylor, established that efficiency can be measured in terms of time and output. All management activities are measured against time to arrive at efficiency. The time which is gone is lost forever and cannot be reused.

Another important feature is that time is always being consumed one way or other. Time not spent in activity is time misspent on an activity. Time is also a great decision maker.

Mangers should use time to its best advantage in management. Project cost goes up if its delayed. We also say a stitch in time saves nine. One of the important managerial activity is acting on time.

Issues related to resource management of time

Utilization of time as a resource raises management problems such as

How to apply ‘time factor’ to every undertaken activity?
What activities have to be planned for the future?
How has the time that has passed being used?
How can I prioritize my work activities in view of available time.
Is it the right time and why to do the activity?
Is this decision going to be useful for the long time?
How long should the policy be kept same?
What time perspective should be looked at for this decision?

SUMMARY

Managerial work involves raising and using resources.
On one side resources meet managerial demands but along with it, it raises a number of managerial problems while selecting and using for application.
If the variety of resources required is enormous then it will bring pressure on capital.
Thus, resources are scarce at any given time in business.
The management with scarce resources is a tight rope walk for all managers.

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