Table of Contents

1.1 Analyze the differing resource requirements of organizations in different

sectors of the economy.............................................................................................. 5
Primary Industry........................................................................................................... 5
Secondary Industry....................................................................................................... 5
Tertiary Industry........................................................................................................... 5
1.1
Outline key requirements relevant to resource management in organizations in different sectors of
the economy................................................................................................................... 6
Raw Materials.............................................................................................................. 6
Equipment.................................................................................................................. 6
Human Resource.......................................................................................................... 6
Technology................................................................................................................. 6
Facilities.................................................................................................................... 6
Time......................................................................................................................... 6
Transport.................................................................................................................... 7
2.1

Evaluate how the use of physical resources is monitored and managed..........7

Buying and ordering system............................................................................................ 7

Schedule.................................................................................................................... 7
Preferred Suppliers........................................................................................................ 8
Just in time management................................................................................................. 8
Stock Control system..................................................................................................... 8
2.2

Evaluate the impact of resource wastage........................................................8

Financial costs, reduced profits......................................................................................... 8

Need for disposal of excess/out of date stock........................................................................8
Poor image e.g. public outcry at waste................................................................................8
Goods not delivered/manufactured/supplied.........................................................................9
Loss of customer base.................................................................................................... 9
Delays in production...................................................................................................... 9
2.3

Assess the costs of high profile technological failures.......................................................9

NHS computer system................................................................................................... 9

Fire service control center system...................................................................................... 9
MOD procurement system............................................................................................ 10
2.4

Assess the business case for the use of ethical and sustainable resources... .10

Business Profile......................................................................................................... 10
Marketing and Competitor Advantages............................................................................. 10
Ethical and Sustainable Reasons..................................................................................... 11
3.1

Assess the need for human resource planning in the workplace....................11

Respond to change in the organization, to external factors...................................................11

Staff turnover............................................................................................................ 11
Forecasting HR requirements......................................................................................... 12
At micro level to organize staff...........................................................................12
3.2

Using motivational theories, analyze what motivates people.............................................13

Herzberg.................................................................................................................. 13
Maslow.................................................................................................................... 13
McGregor................................................................................................................. 14
Expectancy Theory..................................................................................................... 15
3.3

Evaluate the methods used to monitor and improve employee performance.16

Key performance indicators (KPIs).................................................................................. 16

Appraisals................................................................................................................ 16
Statistics e.g. sales figures............................................................................................. 17
Targets..................................................................................................................... 17
Customer feedback...................................................................................................... 17
Training internal and external...................................................................................... 17
3.4

Assess the effectiveness of reward systems in different contexts..................18

Performance related pay............................................................................................... 18

Bonuses................................................................................................................... 18
Advancement/promotion............................................................................................... 18
Share options............................................................................................................. 18
4.1
Monitor the use of physical resources against performance measures and
procedures............................................................................................................... 19
Budget restraints................................................................................................... 19
Key performance indicators (KPIs).................................................................................. 19
Statistics e.g. sales figures............................................................................................. 19
Targets..................................................................................................................... 20
Customer feedback...................................................................................................... 20
Repeat Sales.............................................................................................................. 20

4.2

Analyze data on employee performance.........................................................21

Statistics e.g. sales figures............................................................................................. 21

Targets..................................................................................................................... 21
Repeat Sales.............................................................................................................. 21
4.3

Report on the effective use of human and physical resources........................21

4.4

Make recommendations to improve efficiency................................................22

References................................................................................................................ 24

Resource Management

1.1 Analyze the differing resource requirements of

organizations in different sectors of the economy
Resource is basically a stock or supply of materials, staff, money or other assets
that are necessary for the effective working of an organization. There are mainly
three types of organization and each and every organization has its own nature and
requires different resources.
Primary Industry
Organizations which are concerned with obtaining or providing natural resources
for the conversion into final goods and products are term as primary organizations.
Examples are Mining, agriculture, forestry etc. These organizations use raw
materials and convert into final goods.
Secondary Industry
Secondary sector of the economy consist of those industries which produce
finished and usable goods with the help of primary industry.
Primary industries provide get the output from the primary industry and
manufacture goods which are usable by other business. This sector is further
divided into light industry and heavy industry. Many of these industries consume
large amount of energy in the form electricity and heat and convert the raw
materials into finished goods and products. These industries help both primary and
tertiary sector. Examples are manufacturing, electronics, engineering etc.
Tertiary Industry
This industry is also known as service industry because the products of the
secondary industry is used and is consumed here. These are the industries that
provides services to its consumers. This type of industry consist of huge business
like financial institutions, schools, transport and restaurants etc.
Tertiary industry is consist of soft parts of the economy because the activities in
this type of industry are related with knowledge and time to improve productivity,
performance and sustainability.

1.1

Outline key requirements relevant to resource management in

organizations in different sectors of the economy

Like human being each and every organization has its needs and requirements
because without these needs and requirements organization is nothing. Below are
the few requirements of an organizations which will be discussed
Raw Materials
The basic material from which the main product is made or we can say that basic
substance in it natural, modified form which are used for the final production into a
finished good. Or Material which are in its original or natural state earlier then the
finished goods.
Equipment
For raw materials there should be equipments which turn these products into
finished goods. We can say that equipments are important items for particular
purpose.
Human Resource
Human resource is another important aspect of industry because without human
organization is nothing. All the industries are dependent upon the human resource.
Technology
Technology like machinery, computers and robots helps the industry in improve
productivity and as well make the work efficient.
Facilities
Industry need facilities like transport facilities, electricity facilities, human
resource facilities. Not only industry but also the human need facilities for their
work place because they can no do their best without any facilities.
Time
Time is one of the most important factor not only in industry but also in the human
nature as well. There many reason where time is important. Following are the time
management reasons.

1.
2.
3.
4.

Time is limited
You can accomplish more within less time.
It improve decision making power.
Will teach you discipline.

Transport
When transport systems are well-organized, they stipulate economic and social
prospects and benefits that result in positive multipliers effects such as better
convenience to markets, employment and additional investments. When transport
systems are defective in terms of competence or consistency, they can have an
economic cost such as reduced or missed chances and lower quality of life.
Transport is necessary in many sector of economy like in Tourism sectors is
nothing without transport.

2.1 Evaluate how the use of physical resources is

monitored and managed
Buying and ordering system
The Buying and ordering system should be monitor because this is the inflow for
the products. If the buying and ordering system is working correctly then the rest
of the system will be fine.
Schedule
Project scheduling guarantees one task gets completed in a quality method before
the next task in the process begins. By pledging that quality measures meet
potentials at every step of the way, you confirm that managers and team members
address problems as they occur and don't wait until the end. No major issues
should seem upon completion because youve inaugurated quality controls from
the very start of the scheduling process. Recourse should be schedule because too
much resource can create problem for the organization and less in amount can also
be harmful for the organization.

Preferred Suppliers
Suppliers are the stakeholders without which it is not possible to carry on the
business. Monitoring these suppliers will enhance the bushiness and resources.
Just in time management
Just in time management is an inventory strategy companies engage to increase
productivity and decrease waste by receiving goods only as they are needed in the
production process which results in cost reduction. It is important to have
monitoring system on the just in time management because it will not increase or
decrease the inventory.
Stock Control system
An inventory control system is a system that embodies all aspects of managing a
company's inventories; purchasing, shipping, receiving, tracking, warehousing and
storage, turnover, and reordering. Excess of too much stock results in loss and
shortage of stock lead to the same results. Therefore it is necessary that the stock
control system should be monitor so that the excess and shortage is control.

2.2

Evaluate the impact of resource wastage

Wastage of everything results in loss. Either its natural resource or it artificial.

Following are few impacts of wastage of resource.
Financial costs, reduced profits
Resources are bought with finance to take advantage of it. If these resources got
waste the result will be in loss of cost which will result in the reduction of profit.
Need for disposal of excess/out of date stock
The Resources must be in the form of disposal whenever they are in excess and
whenever they get out of date. This will result in the profit.
Poor image e.g. public outcry at waste
Whenever the resources get expired and has been thrown as a waste it create a bad
image of the suppliers and as well the company in the public.

Goods not delivered/manufactured/supplied

Wastage of resource results in the delay of goods from manufacturer. This delay
can be from the supplier and can be from the manufacturer. As a result the
customer will not delivered products on time and will lead in poor image of the
company.
Loss of customer base
Customers always wants perfection not only in the products but also in the delivery
of the products. Wastage of resource can result In the delay of the product which
will not be in the favor of the company and the customer will lose their loyalty
with the brand. Hence we can say that wastage of resources will results in the loss
of customer base.
Delays in production
Whenever the resources got expired it become difficult for the manufacturer to
supply their products on time because of the delays in production. The profit of the
manufacturer will decline due to the delay in production and hence the fixed cost
will increase.

2.3 Assess the costs of high profile technological failures

Technological failures are the sign of loss for the company. Therefore it is advised
that the company should keep backup with them. This backup will help them to
carry on their process when the existing technology fail.
NHS computer system
NHA computer system is a system which is used by the company for their
operations. When these connection failed to respond a company can go in a huge
loss because the company can not access to important information which are useful
in day to day transaction. These system must have a backup in the manual form
which will carry on the business if this system failed.
Fire service control center system
Fire service control system can cause a severe loss for a company if this system
fail. It is not only harmful for the human resource but also for other resources as
well. The company can go into bankruptcy due to failure in this system.

MOD procurement system

Failure of this system will not only effect a single industry but it will have effect on
all industries in the country and as well on the country.

2.4 Assess the business case for the use of ethical and
sustainable resources.
Ethical and sustainable resources help out companies a huge profit. When
the organization has trust and sustainability the stakeholders are fair with that
organization and try to help that organization either in the form of buying the
products, supplying a pure products, investment in the organization etc. There are
many advantages of ethical and sustainable resources. Following are few to
discuss.
Business Profile
Long term, sustainable development of resource management will not be only
profitable for the businesses but will also be beneficial for the business profile and
image. A company which uses human resource by giving them compensation and
other benefits wisely will have the most talented people for work and it will have a
huge profit and as well as image in the mind of the people. Similarly the use of
natural resources ethically and sustainably will be helpful for the natural
environment. It will not damage the environment and hence the CSR activity will
be there. The community will feel comfortable with the business will make a high
profile in the mind of their stakeholder.
Marketing and Competitor Advantages
When a company provides marketing resources for their stakeholders, they will
have control over the message and image which is being depicted to the general
public. A company with strong management resource system will not only take
care of the profit but will also take care of the stakeholders either they are
suppliers, community or any other. This will create a strong image in the market
and will have a competitor advantage. People prefer products of those companies
which take care of the environment and as well as the community and the
employees. As we know that Pakistan was the biggest supplier of football to FIFA
but face a huge loss in Football industry when FIFA found that Pakistan makes

these footballs with Under 18 children. Hence it damaged the marketing position of
Pakistan and the competitor took advantages of this.
Ethical and Sustainable Reasons
Ethics and its sustainability is important for any organization if they want to carry
on their operation successfully because ethics teach the organization how to act
formally within the territory of the country and sustainability directs the
organization how to carry on the business while making a long term relationship
with the community. Sustainability is often seen to be more about how a company
uses resources and affects the environment.

3.1 Assess the need for human resource planning in the

workplace
Human resources planning is defined as the process of evaluating an
organization's human resources requirements in the presence of organizational
goals and changing condition and making plans to certify that a competent,
constant workforce is employed.

Respond to change in the organization, to external factors

According to Walker Effective human resources planning is a process of
analyzing an organization human resources needs under changing condition and
development of the activities necessary to satisfy those needs.
Human resource feel change either it is in the organization or it is due to the
external factors. Internal change can be in the form of change in strategy, change in
technology etc. external change can be in the form government rules and
regulation. Companies should keep different planning management so that they
dont face any problem while in the shortage of human resource.
Staff turnover
It refers to the number of workers who leave an organization and the number of
employees who replace the old one. The measurement is important because it
examine the reasons for turnover to estimate the cost. Some employer think that

staff turnover is important because it will bring new talent to companies. It also
cost saving because the long term employees will have high amount of salaries. On
the other hand some managers think that staff turnover is not a good sign for the
company because it indicates that the company is not performing well and the
employees are not comfortable. It create negative image of the company in the
industry.

Forecasting HR requirements
Forecasting human resource demand is the process of approximating the future of
human resource prerequisite of right quality and right number. The demand of
employees can be due to several reasons like death of employees, resignations,
retirement, termination, growth and expansion etc.
There are many factors which affect HR forecasting like employment trends,
replacement needs, productivity, absenteeism and expansion and growth and there
are number of techniques which are used for the forecasting of employees like
managerial judgement, work study technique, ratio trend analysis, econometric
models, Delphi model etc.
At micro level to organize staff

Business exist to solve a big problem and business becomes described by the
prospects of the people who work in it rather than the other way around. If left
unmanaged, the apprehension of a business will be no different than the
consciousness of the people who include it. If people in a company are living with,
for example, unrealized prospects in their personal lives and a history of
unsatisfactory relations with people who let them down, the company will never
exceed that awareness without another force.

3.2

Using motivational theories, analyze what motivates people.

Herzberg
In 1956 concluded a two-dimensional theory affecting peoples attitudes about
work. According to Herzberg company policy, supervision, interpersonal
relations, working conditions, and salary are hygiene factors rather than
motivators. The absence of hygiene factors can create job dissatisfaction, but their
presence does not motivate or create satisfaction.
Herzberg found that five factors which determine the job satisfaction are,
Achievement, recognition, the work itself, responsibility, and advancement. These
factors have a long term positive effect on the job performance while the hygiene
factors have short term impact on employees and come back very soon.

Maslow
In 1954, Maslow published Motivation and Personality theory which concluded
that how people satisfy their personal needs while they are in the situation of
working. He find out that there is a general pattern of needs recognition and
satisfaction which all people follow in the same sequence. He introduced the
concept of prepotency which says that a person is not able to recognize or pursue
the next higher need in the hierarchy until her or his currently need is not
completed.

Maslows Hierarchy of needs

Leve
l
5
4
3
2
1

Type of Need

Self-Actualization
Esteem
Love and Belonging
Safety
Physiological

Examples

To fulfil ones potentialities

Self-respect, the respect others
Love and beloved, gain a sense of belonging
Security, protection
Thirst, sex, hunger

McGregor
In 1960 McGregor suggested a motivation in the workplace theory in his book
Human Side of Enterprise. These views are known as Theory X and Theory Y.
Theory X
McGregor suggest that there are people in the workplace who are pessimistic. They
dislike work and are not ambitious. They are self-centered and want to avoid
responsibility. Managers who agree with this assumptions believe that only money,
promotions and job security can motivate employees in the workplace. Thus there
should be a use of command and control approach with employees.

Theory Y
It is based on an optimistic view and employees think that work in enjoyable and
are working for the organizational goal and are willing to take the responsibility.
Theory Y assumes that employees are capable of creativity, ingenuity and selfdirection. Managers who believe on this approach think that employees are
motivated. All they want is just self-esteem and sense of fulfillment.
Expectancy Theory
Vroom's expectancy theory believes that behavior results from cognizant selections
among substitutes whose rationale is to exploit pleasure and to minimize pain.
Vroom concluded that an employee's performance is based on personal factors
such as personality, skills, knowledge, experience and abilities. He stated that
effort, performance and motivation are linked in a person's motivation. He uses the
variables Expectancy, Instrumentality and Valence.
Expectancy:
It is the belief that effort and performance has direct relation. If you increase the
effort it will result in the best performance. Expectancy is affected by such things
as:
Right Resources
Right skill
Necessary support job the done.
Instrumentality
If a person perform well a valued outcome will be received. The degree to
which a fist level outcome will lead to the second level outcome. It is
affected by many things.
Relationship between performance and outcome.
Trust on people who make decisions
Process transparency
Valence
Individual places upon the expected outcome. There are three elements that
are important behind choosing one element over another.

 Effort-performance expectancy (E>P expectancy)

Performance-outcome expectancy (P>O expectancy).

3.3 Evaluate the methods used to monitor and improve

employee performance
Employees can be monitored with the help of many tools. Following are few of
them along with
Key performance indicators (KPIs)
A key performance indicator is a business metric used to evaluate factors that
crucial to the success of an organization. KIPS differ per organization. Like
Business use this method by the net revenue or with the help of customer loyalty.
The higher the revenue and loyalty of the customers the greater will be the
performance of the business while government use the same key performance
indicator on the basis of unemployment rate. The lower is the unemployment rate
the higher will be the performance of the government.
Appraisals
A performance appraisal (PA), is also known as performance review, performance
evaluation. It is a method by which the performance of an employee is evaluated.
Career development is based on the performance appraisals because it is the
employee performance regular review. Performance appraisals are based on three
main methods
1. Objective Production
2. Personnel
3. Judgmental evaluation
The most common is the judgmental evaluation method because it is easy and
convenient as well.

Statistics e.g. sales figures

Statistics of a company speaks about the performance of an employees. These
statistics include sales figures statistics, employee workdays. Employees bonuses
etc.
The higher the statistics of the company the higher will be the sales figures and the
high will be the performance of the employees. This method is highly used in the
banking sectors for the investment. Employees are asked for the investment and the
higher investment the person bring to the bank the higher will be the statics of that
bank. Best employees is usually given on the basis of these statistics.
Targets
A company usually set targets for achievement and these targets are achieved with
the help of employees. Those employees who participated more in the achievement
of targets will have much more importance and will be consider the employee of
the month.
Customer feedback
Usually the feedback of the customers is the most important thing for the
customers evaluation because in most of the business customer is considered as
boss. If the customer pass a good review and give a big feedback in the form of
purchases then the employees will be judged with the help of those feedbacks.
Training internal and external
Training is an important part of human resource. Employees need training when
they join the new company. Sometime for the improvement in performance
employees are trained either from internal source or from external source.

3.4 Assess the effectiveness of reward systems in

different contexts
Employees are rewarded on the basis of their performance and companies uses
different reward system. Some of them are follows
Performance related pay
Most of the business employees have their pay on the basis of their performance.
The higher the performance of the employee is in the achieving of the goal the
more compensation will be provided by them from the company.
Bonuses
Company pay bonuses at the end of the year to their employees for its
performance. Those employee who did well throughout the year will have high
bonuses from employers as compare to those who use less. This bonuses can be in
the form of monetary and non-monetary form. Some companies provide vehicles
to their employees for use and other pay lump sum amount so that the employees
motivate and increase its interest in the work.
Advancement/promotion
A promotion is the advancement of an employees position within an organization
system. Organizations usually promote employee for their best performance.
Before doing so the company judge an employees with different examinations, test,
work performance and interviews because an improvement will lead that employee
into more responsibilities. This advancement can be in the form of designation,
salary or any other benefits.
Share options
Organization sometime offer share options at a discount which means that they
offer ownership to their employees so that they start working hard and participate
in the workplace with motivation.
The employee is now the owner of the company and the motivation level will
increase and the employee will work with enthusiasm and enjoy while working in
the company.

4.1

Monitor the use of physical resources against

performance measures and procedures

Human and physical resources are both measures with almost same kind of
procedure. Following are the details.
Budget restraints

When the budget sets some limits that a company can spend a specific amount on
particular assets is known as budget restraints. In other words we can say that
budget restraints is the consumption ability of a company. It is an accounting
identity which is used for the monitoring and evaluation of physical resources. This
budget restraints allow a company a specific amount of physical resource for a
specific purpose.
Key performance indicators (KPIs)
A key performance indicator is a business metric used to evaluate factors that
crucial to the success of an organization. KIPS differ per organization. Like
Business use this method by the net revenue or with the help of customer loyalty.
The higher the revenue and loyalty of the customers the greater will be the
performance of the business while government use the same key performance
indicator on the basis of unemployment rate. The lower is the unemployment rate
the higher. Similarly the business use this indictor for the use of physical resources
as well. Physical resources which results in profit are presented by the key
performance indicators.
Statistics e.g. sales figures
Statistics of a company speaks about the performance of an employees. These
statistics include sales figures statistics, employee workdays. Employees bonuses
etc.
The higher the statistics of the company the higher will be the sales figures and the
high will be the performance of the employees. This method is highly used in the
banking sectors for the investment. Employees are asked for the investment and the

higher investment the person bring to the bank the higher will be the statics of that
bank. Best employees is usually given on the basis of these statistics.
Targets
A company usually set targets for achievement and these targets are achieved with
the help of employees and physical resources. Physical resources are monitored
and are set for the targets .Those employees who participated more in the
achievement of targets will have much more importance and will be consider the
employee of the month.
Customer feedback
Usually the feedback of the customers is the most important thing for the
customers evaluation and as well as the physical resources because in most of the
business customer is considered as boss. If the customer pass a good review and
give a big feedback in the form of purchases then the employees will be judged
with the help of those feedbacks.
Repeat Sales
It the customers want the products again and again then we can say that the
physical resource are used in a proper way and the products made are of great
importance to the customer and hence it will result in huge profit.

4.2 Analyze data on employee performance

Statistics e.g. sales figures

Statistics of a company speaks about the performance of an employees. These
statistics include sales figures statistics, employee workdays. Employees bonuses
etc.
The higher the statistics of the company the higher will be the sales figures and the
high will be the performance of the employees. This method is highly used in the
banking sectors for the investment. Employees are asked for the investment and the
Targets
A company usually set targets for achievement and these targets are achieved with
the help of employees and physical resources. Physical resources are monitored
and are set for the targets .Those employees who participated more in the
achievement of targets will have much more importance and will be consider the
employee of the month.
Repeat Sales
It the customers want the products again and again then we can say that the
physical resource and as well as the human resources are used in a proper way and
the products made are of great importance to the customer and hence it will result
in huge profit.

4.3 Report on the effective use of human and physical

resources
The human resource and physical resources are the main modules for the
accomplishment of any organization. From our daily life examples like steel
manufacturing business, agricultural business and call center business etc the
effectiveness of human and physical resources can never be eliminated. The human
resource i-e the employees of the business is considered as an assets for the

business and the effective use of these resources can lead the business into a huge
profit and strong brand image. In 1950 behavioral scientists start considering
human resource as an asset.
According to Maund It is general that despite of reality that a business possess
huge amount of latest technology and other physical resources but if they are not
put rightly on right place, the results ceased to grow and this is Human Resource
who manage all physical resources.
Following are the questions which are used for the resource placement. If a
business follow these questions it will result in growth of the business and as well
as in huge profit.
What is the accurate amount of human resources needed to run the
organizational functions properly?
What is the amount of total cost occurred on annual investment?
Ratio of productive human resources against total available human resources

4.4 Make recommendations to improve efficiency

Employees performance and efficiency is one of the most important topic ever
discussed among managers. It is believed that the cause behind the low output and
efficiency is the lower staff and workers but this is not the right believe. The high
management should investigate the root cause by taking corrective measures.
The following recommendations should be taken to improve efficiency.

Proper accountability
Guiding and managing the workers properly.
Encouraging and motivating positively the employees.
Setting targets and parameter for the performance of the employees
Team work should be maintained.
Regularly train your employees to improve the abilities.
Make sure the actions are given more time rather then meetings.

 Providing employees latest technology.

Taking continuous feedback

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