A business resource refers to the degree by which the firm defines its Human, financial, physical factors that deliver an organisation the means to accomplish its business processes. In the first section, the writer has described how to manage the human resource of an organisation. The second part defines the purpose of managing physical and technological resources. In the last part of this report, the author has analysed the financial statement of a company.
LO1: Know how human resources are managed
P1 (1.1): Recruitment documentation used in Tesco
The recruitment is published for the post of Sales Executive of TESCO ltd. The job location is anywhere.
In the application form, the candidate must mention the following requirement as per the company’s needs. Section1 will have Surname, First name, Address, Telephone/Mobile Number, Email and national insurance.
Section 2 will have the employment history of the candidate. Section 3 will include education and training. Section 3 will include the candidate past any crime history if they have. The last section of the 6 candidates will consist of two valid references.
As a sales executive, the employee must make sales calls and sales visits. The business development process is the primary responsibility of the employee.
- Must have graduated from any reputed university.
- Well conversation ability with customers.
- Should be dynamic, tenacious, and self-driven.
- Excellent communication skills and building interpersonal relationships
- Willing to work anywhere in the UK.
- Age within 35 years.
M1 (1.1.1): How the management of human, physical and technological resources can improve the performance of Tesco
Management is the process of directing, controlling, leading and providing an indication to subordinates for better work.
The management team is crucial for TESCO. It is highly needed to find the correct method for the employee and organise and administer them professionally. The business manager must have the ability to give the employee the following procedure for better work. The methods are Assessment, Personal development planning, training and motivation (Werner, 2014).
Physical resource management is needed as it helps the company finish work on time and at a low cost. Some physical resources may be equipment, facilities, machinery, building, premises, waste, and materials. All the physical equipment is appropriately managed to use it efficiently, and this equipment can work effectively.
TESCO uses many technological types of machinery or material for the improvement of the business. Advanced technology needs a skilled employee. As an example, it can say that TESCO has a particular operator to manage the website.
D1 (1.1.2): How managing resources and controlling budget costs can improve the performance
Human resource, technological resources, and budget are the central part of the expenditure; as TESCO spends more on this resource, the proper management of these resources can improve the performance of the business.
Managing the human resource department makes a more reliable and hardworking workforce in Tesco. This hard-working workforce can ensure motivation and employ skilled employees (Managing resources, 2012).
Well, management of physical and technological resources can improve the performance of the business and have substantial cost-saving benefits to TESCO. Suppose ensuring well maintained the building and space inside helps TESCO to work efficiently. And these changes make the customer more pleased with the company.
Managing cost and budget is one part of efficient work in TESCO. If TESCO wants to get a competitive advantage, it must ensure lower expenditure and higher productivity. The management of TESCO must plan and measure the actual budget for each department so that excessive money does not go outside of the needed funding.
P2 (1.2): Describe the main employability, personal and communication skills required when applying for a specific job
The employer has to focus initially on the qualification of a suitable candidate and fit for the vacant job position. For most employees, education is a vital part of the qualification (Green, 2006). But it sometimes becomes inadequate regarding some specific job needs. In this case, TESCO does not give priority to education only. Here TESCO prioritises the personal skill of the employee and relationship ability with the customer. Suppose TESCO employed a sales executive. In this case, the sales executive must communicate with the customer individually and make the relationship with the customer to make them loyal to Tesco. Now TESCO needs employees who have these characteristics or abilities. Here education does not play a significant role.
Sometimes TESCO gives priority to the employee experience to the related field of work. The recruitment advertisement company mentions the requirement about the needed experience in the related field.
LO2: Purpose of managing physical and technological resources
P3 (2.1): Major physical and technical resources for conducting operations
Tesco must need the physical and technical resources to manage the daily work. The form of building and other machinery create the physical resources for Tesco. Find the materials below.
Building and facilities create an environment in the workplace. The excellent climate inside the building, enough space, good-looking circumstances, well decorated, and many other things related to building ensure an effective workforce and attract customers (Lai and Weng, 2014).
Tesco spends a significant amount of money on various plants and machinery for its delivery and warehouse option. On the other hand, equipment and IT is also another part of the material. For example, a worker of Tesco may not be able to work if they do not have the correct size of cage to distribute stock.
Besides physical resources, technological resources are also necessary. Tesco owes technology such as software, online sites, and other specialised instruments (Ask, 2016). Tesco needs the following technical material such as intellectual property, including design, drawings, text, music and video, accumulated skills and experience, etc.
M2 (2.1.1): Importance of employability and personal skills in the recruitment and retention of staff
Tesco needs and, for this reason, look for employee skills dealing with the customer. Personal gifts are required because if Tesco trains employees about the particular job and cannot take the training facilities by their intention, they can be fired, and Tesco has to expend inadequate money.
Tesco gives importance to the minimum educational qualification because people can quickly accept any work and understand any job. The company faces the employee in an interview and assesses technical and other knowledge, which helps the company to identify the skills in face-to-face conversation (Brooks, 2004).
Personal skill helps the employee to find out own responsibility in the organisation. Innovative knowledge is essential for Tesco, and in this case, only individual skills can make it possible. Sometimes an employee cannot get any help from other staff to solve the problem solely. Here personal skill may be the critical machine. Patient, hardworking, experience, knowledge of product, and many other unique skills make employees self-dependent.
LO3: Know how to access sources of finance
P4 (3.1): Sources of internal and external finance
The process of collecting and use of money efficiently and adequately is called financing. There are two sources of information for Tesco plc.
Internal sources (Inside the organisation)
External references (Outside the organisation)
Tesco gets finance from the following internal sources. Please find the references below.
Tesco can manage funds from the personal capital of existing retained profit. Every year the company earns some amount of profit. Tesco can use it after excluding the shareholder value. The sales of an asset may be the sources of information. The obsolete asset may be sold to the market for finance. The difference between running capital and running liability is called working capital. The balance of this may be the sources. The company keeps some of the estimated money for future depreciation (Muir and Eisfeldt, 2005.). The balance of depreciation may be the source of small capital.
The external sources of the investment may be long term, medium term, and short term. The long term finance can be taken from the share issue, debenture, long term loan, and grants (Clark, 2007). The medium-term sources may be leasing, hire purchase and medium-term loans. The short term sources may be bank overdraft, trade credit, and debt factoring.
LO4: Be able to interpret financial statements
P7 (4.1) illustrate the financial state of Tesco
In this section, the author will illustrate the financial state of Tesco in 2012 and 2013. The information has been acquired from the annual report of Tesco.
Current Ratio=Current assets/current liabilities
Quick Ratio=Liquid Assets/Current Liabilities
Gross Profit Ratio= Gross Profit/Net Sales X 100
Inventory Turnover= Cost of Goods Sold/Average Inventory
Payable turnover= Purchases/Average Accounts Payable
Accounts Receivable Turnover= Net Sales/Average Gross Receivables
Based on the analysis above, it could be determined that Tesco is a developing business organisation that exhibits actual expedience performance over the Years, increasing revenues and profits. However, the people evaluate the share price and dividend trends to make an investment decision.
In this assignment, the author has discussed different theories of business resources. The writer has described the ways of managing human, financial and physical resources. Besides, the writer has found out the sources of those resources. Therefore, business resources play a significant role in the development of any business.
Ask. (2016). What are the physical resources of a business?. [online] Available at: http://www.ask.com/business-finance/physical-resources-business-c618de7d0f07dc36 [Accessed 12 Apr. 2016].
Brooks, D. (2004). The complete book of personal training. Champaign, IL: Human Kinetics.
Clark, S. (2007). A field guide to conservation finance. Washington, DC: Island Press.
Green, A. (2006). Effective personal communication skills for public relations. London: Kogan Page.
Lai, H. and Weng, C. (2014). Accessing External Technological Knowledge for Technological Development: When Technological Knowledge Distance Meets Slack Resources. IEEE Transactions on Engineering Management, 61(1), pp.80-89.
Managing resources. (2012). London: BPP Learning Media.
Muir, T. and Eisfeldt, A. (n.d.). The Joint Dynamics of Internal and External Finance. SSRN Electronic Journal.
Werner, J. (2014). Human Resource Development ≠ Human Resource Management: So What Is It?. Human Resource Development Quarterly, 25(2), pp.127-139.