Amelia Gruner-Overgaard Unit 2 D1
Managing resources and controlling budget costs
Managing resources throughout the business can contribute to the smooth running of Harvey's
Products LTD. Human, physical, technological and financial resources are the essential parts of
the business to maintain the production process. If the resources aren't used effectively, the
businesses efficiency could decrease causing shrinkage rather than growth, having an overall
negative effect on the business.
Human Resources
Employing the correct individuals based on their skills and expertise can enhance the
businesses performance. Such that the employees are working to the best of their ability and
increasing the output produced. On the other hand, having the right skills and expertise for a
certain job doesn't necessarily mean the employee will be good at the job as they may lack
motivation. Motivation is needed to carry out set tasks else employees may feel fed up and not
working efficiently, which would increase the costs for Harvey's Products LTD.
Maslow's Hierarchy of Needs is a theory which elaborates on what employees are motivated by
in the workplace (McLeod,2007). Such that each individual has different needs and wants, those
with lower needs/wants can then progress higher up the ladder to gain more motivation.
Employees can use this theory to motivate their staff to gain full efficiency within the workplace.
Ensuring the staff are invested in Harvey's Products LTD performance can improve the
individual performance of the employees. Employees will feel as though they are contributing to
the performance of the business, which can encourage the employees to work harder. If
employees at Harvey's Products LTD don't invest their full potential in the business it could
reduce the output, leading to higher costs throughout the business.
Monitoring the progression of employees is a key way to manage the human resources, else
managers may not know which department is the weakest link. By not establishing which
department is lacking progress, the business may begin to increase their costs and decrease
their efficiency. Teamwork is essential when departments aren't working effectively, as with a
mixture of skills and expertise a department can become stronger and work to meet given
targets.
Harvey's Products LTD are investing their time and money into their employees, so if the
employees aren't efficient then the business is wasting their money employing them. For
example, the business may spend £200 on an employee to attend a training course, but if at the
workplace they don't use the skills they've learnt then Harvey's Products LTD have extra costs
with no benefits.
Employees must be able to respond to change within the workplace to improve the productivity
of the business. For example, if there was a boost in the economic climate and the demand for
Harveys Products LTD increased then the employees must be able to work more effectively to
then increase the production. If employees weren't to meet the demand, competitors may
become stronger within the market, leading to a decrease in the sales at Harveys Products LTD.
Also, if Harvey's Products LTD aren't meeting the customers requests of products within the
agreed time period, the business may gain a bad reputation having long term effects on the
businesses sale figures.
1
Managing resources and controlling budget costs
Managing resources throughout the business can contribute to the smooth running of Harvey's
Products LTD. Human, physical, technological and financial resources are the essential parts of
the business to maintain the production process. If the resources aren't used effectively, the
businesses efficiency could decrease causing shrinkage rather than growth, having an overall
negative effect on the business.
Human Resources
Employing the correct individuals based on their skills and expertise can enhance the
businesses performance. Such that the employees are working to the best of their ability and
increasing the output produced. On the other hand, having the right skills and expertise for a
certain job doesn't necessarily mean the employee will be good at the job as they may lack
motivation. Motivation is needed to carry out set tasks else employees may feel fed up and not
working efficiently, which would increase the costs for Harvey's Products LTD.
Maslow's Hierarchy of Needs is a theory which elaborates on what employees are motivated by
in the workplace (McLeod,2007). Such that each individual has different needs and wants, those
with lower needs/wants can then progress higher up the ladder to gain more motivation.
Employees can use this theory to motivate their staff to gain full efficiency within the workplace.
Ensuring the staff are invested in Harvey's Products LTD performance can improve the
individual performance of the employees. Employees will feel as though they are contributing to
the performance of the business, which can encourage the employees to work harder. If
employees at Harvey's Products LTD don't invest their full potential in the business it could
reduce the output, leading to higher costs throughout the business.
Monitoring the progression of employees is a key way to manage the human resources, else
managers may not know which department is the weakest link. By not establishing which
department is lacking progress, the business may begin to increase their costs and decrease
their efficiency. Teamwork is essential when departments aren't working effectively, as with a
mixture of skills and expertise a department can become stronger and work to meet given
targets.
Harvey's Products LTD are investing their time and money into their employees, so if the
employees aren't efficient then the business is wasting their money employing them. For
example, the business may spend £200 on an employee to attend a training course, but if at the
workplace they don't use the skills they've learnt then Harvey's Products LTD have extra costs
with no benefits.
Employees must be able to respond to change within the workplace to improve the productivity
of the business. For example, if there was a boost in the economic climate and the demand for
Harveys Products LTD increased then the employees must be able to work more effectively to
then increase the production. If employees weren't to meet the demand, competitors may
become stronger within the market, leading to a decrease in the sales at Harveys Products LTD.
Also, if Harvey's Products LTD aren't meeting the customers requests of products within the
agreed time period, the business may gain a bad reputation having long term effects on the
businesses sale figures.
1
