Management Of Business Resources: HR And Financial Resources In An Essay.

Significance of Business Resources

Business resources are considered to be anything and everything that are associated with the business corporation so as to aid the company in operating the activities whether they are internal and external. These resources comprise of the utilization of work force within the organization the natural resources, tangible resources which include the assets or the machineries used in various processes and procedures, intangible resources which consists of the brand image of the company and knowledge or data, financial resources and other resources which can be utilized by the firm for earning the profit (Armstrong and Taylor, 2014). Each and every resource has an economic value which is to be utilized by the business organization in the manufacturing processes or for offering the consumers (Ward. 2017). The business resources act as the blood to the organizational body which has to be considered as the most significant part of a company. The below carried out analysis has been carried out on Learning Resources UK which is a leading brand name in the sector of providing high quality of educational products to the schools and homes within UK and Europe. The below presented report has been focused on the management of the business resources.

Learning Resources UK is the organization which provides educational products to the educational institutions and to the homes within UK and Europe (targetjobs,.2017). The business organization has continued with a growth every year and has added some new products in the brand family i.e. ®, Hot Dots® and Playfoam®. Business organization serves the consumers with the diversified range of the products and the services (Benn, Dunphy and Griffiths, 2014). The company has a systematic and managed formative structure of working and offering the services to the users. The business entity provides the educational products as per the categories formed on the basis of the age groups. A specified set of groups has been formed so as it provides a proper bifurcation which aids the organization in providing the services to the consumers.

An individual who is held responsible in an organization for hiring and recruiting the new employees, scrutinizing the employees evaluation, building a link or chain between the employees and the bosses. Moreover HR is also supposed to manage and lead the departments that deal with the training and development, support, records and other associated operations of the company's workforce

The prime role of the human resource manager is to manage the individuals as the business resources in a strategically manner. In broader term the job of an HR includes managing recruiting and hiring potential candidates, and making coordination of the benefits for the employees and also making arrangements and organizing the training and development  sessions of the new or fresher’s. So HR  are the professionals who provide consultancy  and also assist the managers on many issues related to employees and also management of the available resources in a way that help the organization achieve its goals (Bratton and Gold, 2012). There are varied roles and responsibilities which are to be executed by a HR and below mentioned is one of them.

Analysis of Learning Resources UK

The HR manager in Learning Resources UK the managers and the HR professional work together in a team so as to manage and bring necessary developments and growth in the skills and capabilities in the human resource. For instance the HR managers assist the management team and the team leaders in the alignment of the tasks and specified roles within the organization (Stone, 2013). As the Learning Research is a flexible organization employees easily get shifted around to the different business functions which are based on the business priorities and also the candidate’s preferences.

Collaboration means working with someone with an objective of attainment of common goals and targets (Bryman and Bell, 2015). And pursuing this role requires many skills and capabilities for a HR manager. To bring collaborative spirit among the team members and also between the employees and the bosses a HR needs to have a set of professional communication and interpersonal skills so as the messages transmitted between the two groups will be clear which will aid in building a strong bond.  

Organizing is the one of the strongest trait which I have as an HR and which aids me with the time management and ability complete the assigned tasks within the allotted time duration. Also multi-tasking is possible which assists in hiring and firing, dealing with employees’ handling personal conflicts and problems and creating recruitment strategies for open positions. Problem solving aids me in bridging gap between the team mates and also among the lower level staff members and managerial level staff (Philips, Shalaby and Marden, 2016). Leadership enables me to maintain a discipline in the employees which develops a professional environment within the organization.

Management of human resource in an organization has to be considered as one of the most significant tasks as it will aid Learning Resource UK in solving number of issues and problems which in-turn builds and develops the productivity of the firm. For instance, the operations department has created a problem of excessive usage of electricity and wastage of paper is aloe there. So in this case the HR manager of Learning resources will have to manage the human resource in such a manner so that they stop wasting or decrease the over usage of electricity (Collis and Hussey, 2013). Moreover there should be implementation of some rules regarding the usage of electricity and also penalties should be imposed if same are not followed by the employees. Some sought of training sessions should be organized for creating awareness about the importance of the electricity. For example electricity saving tools and equipments and systems should be installed within the office premises. Paper wastage can be avoided by adopting electronic modes of communication and that to a limited level. Internet should be made as the best medium for communicating process,

Human Resource Management in Learning Resources UK

Financial resources are considered as the blood for the organizational structure and are the most essential characteristic required for running a business smoothly. These resources are segmented in two parts i.e. are the internal and the external sources and which are described as follows:

These are considered as the easiest form of internal financial source as they are in the form of liquid assets (Cumming, 2012). Retained earnings are the part of the net income which the organization has retained but not yet paid out. These earnings can be reinvested in the company.

These types of savings are considered to the backbone of the business organization. If learning resources does not have assets to finance the projects then the savings done by the owners can be utilized for the operational activities or for carrying out the business in a smooth manner.

Donations are generally expected from the individuals, other companies, or from charitable trusts and foundations (Myers, 2013). Gifts and donations are to be considered as one of the significant external financial resource, but raising funds from this source can be time consuming and also an expensive one.

These financial sources are received from the public entities, charitable trusts and the foundations (Griffin, McGaw and Care, 2012). The grants are not required to be repaid and also have a benefit of an exemption from tax. But there are some conditions applied with the grants such as they will be agreed at the attainment of certain milestones, the unspent money will be returned back to the funder etc.

The point at which the company’s cost or expenses and revenues are equal. There is no loss no profit. They will need 100 students for breakeven analysis.

• Sales revenue is the amount of money invested in or brought into the business which has been earned by selling the products and the services over a period of time. The concept is a significant one and if goes down then can affect a number of aspects of the business. Sales revenue can be calculated as mentioned below:-

• Cost of sales is to be considered as the accumulated total of all the expenses incurred during the production process of a goods and services. And the cost of sales can be calculated as shown below:-

Cost of Sales=Beginning inventory+ inventory purchases and expenses –ending inventory,

• Gross profit is the amount of the revenue or the income that the company brings in before subtracting the expenses which are associated with the revenue earned. The formula for gross profit is presented as follows:-

Gross Profit = Net Sales - Cost of Goods Sold

• Expenses can be of varied in nature such as related to any of the operational and non-operational activities within the organization. For example these expenses include items like payroll, rent, office supplies, utilities, marketing, insurance and taxes.
• Net profit can be referred to the net earnings left after all types of expenses, interests and taxes have been deducted from the company’s total revenue. The calculation of the same has been presented below:-

Total revenue – Total expenses = Net Profit

• Non-current assets are the assets other than the current assets and these are expected to for generating economic benefits for the company for more than one year.

• Current assetsare cash and any other assets which a firm targets to turn into cash or make utilization of same within duration of one year or in the operating cycle of the asset, whichever is longer. Total of everything valuable that the company has such as cash, investments, or property.

 Current liabilities are the obligation over the company which is to be repaid within one year.

• Working capital is a calculation of liquidity which enables the organization in the payment of its current liabilities with current assets. The formula to calculate the working capital is presented below:-

Net working capital + Current assets – current liabilities

• Noncurrent liabilities are the long term financial obligations on the company that do not come due for payment for a year or more. The formula for the same is mentioned below:-
• Net assets is the value of mutual funds assets held in a portfolio. NAV is used to measure the value of one mutual fund and this calculated in daily basis.

Budget and costs are one of the most significant factors for teach researchers UK as they allow the company to set the spending and revenue targets for the future. This concept will also allow the firm in understanding the cash flow within the business organization which will also develop a clear awareness about all the areas where all the money is going. So it is very much significance to control the same. And if not done so then their profits will be negatively affected. Hence budgeting has to be considered as the method which provides an estimation of what the cost and revenue should be (Hofstede, 2012). Moreover teaching researchers UK has to control and budget so as to know what has been received and spent.

Role of Human Resource Manager

Non-planning has to be considered as one of the biggest reason for over spending, as planning helps in organizing the team, resources and the strategies of the company. Moreover the company does not have any kind of monitoring on the payments done to the vendors and the dealers which provide raw materials for the operational activities. Also over spending is done when the firm does not have proper financial advice.

Overspending has become a critical issue and which has affected the system and the operational activities and the outputs and which needs to be solved on top priority. And for doing this a proper planning need to be done (Myers, 2013). The company needs to align the resources and the strategies in such a manner that they provide the best output with the minimum expense. Also the firm needs to develop a team of financial advisers who provide expert advice on the related topics.

It has been observed that company has increased its current assets by.76% as compared to last year data. This shows that company has increased its liquidity position to pay off its short term and long term debt. In addition to this profitability ratio of company has also increased which reflects that company has used its operation in efficient manner. Debt equity ratio of company was 1.42 which has also reduced to 1.12. It is satisfactory which provides that company has maintained effective capital structure. Therefore, after evaluation of company’s performance it is evaluated that company has maintained effective ratio and showcase a good amount of improvement in its business functioning as compare to last year. The drastic change in the business functioning could be seen in its net profit earning capacity which showcase 30% increment as compare to last year.

References

Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Benn, S., Dunphy, D. and Griffiths, A., 2014. Organizational change for corporate sustainability. Routledge.

Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.

Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.

Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and postgraduate students. Palgrave macmillan.

Cumming, D. ed., 2012. The Oxford handbook of entrepreneurial finance. Oxford University Press.

Griffin, P., McGaw, B. and Care, E., 2012. Assessment and teaching of 21st century skills (p. 36). Dordrecht: Springer.

Hofstede, G.H. ed., 2012. The game of budget control. Routledge.

Myers, M.D., 2013. Qualitative research in business and management. Sage.

Philips, M., Shalaby, Y. and Marden, J.R., 2016, December. The importance of budget in efficient utility design. In Decision and Control (CDC), 2016 IEEE 55th Conference on (pp. 6117-6122). IEEE.

Stone, R.J., 2013. Managing human resources. John Wiley and Sons.

Ward, S, 2017, 5 Resources you need to start a business, Assessed on 6^th April 2017, https://www.thebalance.com/succeed-in-starting-a-business-2947253.

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targetjobs, 2017, what skills and competencies do you need for a career in HR, Assessed on 8^th April 2017, https://targetjobs.co.uk/career-sectors/hr-and-recruitment/advice/324027-what-skills-and-competencies-do-you-need-for-a-career-in-hr.