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Chartered Management Institute (CMI) Diploma of Management and Leadership Level 5

Unit 5004 Resource management

SUBMITTED BY Mukhtar Ahmad Student no. 00315

BRADFORD REGIONAL COLLEGE

11/02/2013

Contents
Contents..................................................................................................................... 2 1 Be able to identify and plan resources needed to meet objectives.........................3 1.1Identify resources planning to achieve objectives..............................................3 1.2 Process of planning resources use to achieve objectives..................................4 1.3 Identify the cost associated with the resource required to achieve objective.. .6 2 Be able to select and use the resource supply chain to meet planned objectives:..6 2.1 Evaluate sources of supply to meet planned objectives..................................6 2.2 Explain processes to manage the supply of continuity and quality resources to meet the plan.......................................................................................................... 8 2.3 Describe strategies used to predict and manage disruption in resource supply and source of supply............................................................................................... 9 3 Be able to monitor and evaluate internal and external resources use to meet plans......................................................................................................................... 11 3.1 Review progress of actual resources use against planning resource use........11 3.2 Discuss methods of recording and reporting resources use...............................11 3.3 Explain the methods of using resources information to inform future action. 14 References................................................................................................................ 15

1 Be able to identify and plan resources needed to meet objectives 1.1 Identify resources planning to achieve objectives Objectives mean the achievement of targets, mission, purpose or standards that can be reasonably achieved on the expected time frame. Every company wants to improve its business. And the organisation wants to increase its sales ratio, decreasing customer complains, trust of customer and increasing the customer satisfaction. These are the main objectives of company and how these can be achievable, we planning the resources to achieve these objective. The following is the diagram to explain the planning of resources in achievements of objectives.

Organisation transforms inputs into output by using the resources. For example there is a company which is producing shoes leather, people, machinery, equipments are the resources and input and then making shoes, and after selling concern the satisfactions of the people.

Another example a company producing cement, it needs people, gypsum, stones, machinery and many types of chemicals. To get the complete output there is a long process in which these resources are used properly. It means that the company needs the: Financial Resources . Finacial resources are ones that are to do with how a business/company is being financed. Example of these resources is: Bank loan, Mortgage, Over lease. Human Resources It means the labour which is working in manufacturing of goods. We pay them in the shape of money. Technological Resources The machinery which is using in manufacturing of goods. 1.2 Process of planning resources use to achieve objectives My planning is to increase our sales ratio to get this objective; we need to analyze our resources. I would check the resources, I would get more martial. We also need to improve our machinery. We also need to hire more workers. Resources are those economic factors which gives help to support a company for increase profit and productions, to manage and utilize these resources effectively and efficiently manner is called planning resources. My company has

financial resource, human resource and technology resource. To manage these resources effectively my company has a plan to get its objectives. I want show in cycle plan implement process in figure.

Above diagram shows that first we have to set an objective that what should we get and after this the plan that how we can improve this, the method of improving the particular item. After that we have to implement this decision or changing then we will look that our new implementation is good or not. If you achieved the desire results, it means you have succeed and if not you have to review the plan. And make some changes to improve it. Resources Money Human Machinery Time frame 1 year 3 month 3 month Objectives Cost Time repay 2 Year of

Improve sale 50600 Hiring more 8000 worker Up to setting date 32400

In this table the planning of the resources is shown. All this is for the achievement of the defined objective, which is the increase of sales ratio. Three types of resources are mentioned in the table. It is estimated that to meet all these resources I need 91000. 1.3 Identify the cost associated with the resource required to achieve objective.

like, financial resources, which I discussed in the previous question are money human and technology or machinery. I can show these again in a table below. Required Sources Money New staff Machinery Cost 50600 8000 32400

2 Be able to select and use the resource supply chain to meet planned objectives: 2.1 Evaluate sources of supply to meet planned objectives. A person or the company which supply the particular products or services to is known as a supplier. It plays a vital role in the running of business of any organization. It is like a life blood of an organization. Without supplier a company cannot survive. Supply chain to meet planned objectives To manage supply chain and run it continuously and efficiently, it needs proper planning. It needs to analyze where the resources are obtained from, how they are

obtained and through which process they reach to the organization. It also needs to know about those factors which resist the continuous flow of resources. Set a Criteria and Comparison with competitors These days completion among the companies is on its peak. When we go to take any step we have to compare the companies depending upon many features. For example who can provide us best material with more facilities, reasonable packages, and can satisfy us. We should choose that company which can provide things on time and demand and can fulfill our need according to requirement. This process needs proper planning and management. Demand and Sale In order to meet the plan we have to see our demand in continuous supply and quality of resources. We would order how much material according to space in our stores and which we can sell or use in a specific time period before expiring. It can lose our profit. Relation with supplier It is very important to have a good relation with supplier all the time we need to keep in touch with supplier. All time make good relation with your supplier and touch with them. Companies are not isolated entities that simply purchase goods and services from individuals who happen to be able to supply them at that particular time. So there is always need of good relation with supplier.

Communication with supplier Another important factor is communication with supplier. It is very important to know about the supplier. We can use any media in this way like telephone, email or face to face meeting. Contract or Deal Some companies offer some deals or contracts with their supplies. This is just for the benefit of both the companies. It depends upon the company`s policies and procedure that for how long it makes the contract and how long it deserves it. 2.2 Explain processes to manage the supply of continuity and quality resources to meet the plan This process involves the following factors. Where the resources are obtained from. How are they obtained? Before reaching on the organization through which channels they passed. What factors resist against the continuous flow of resources. When plans are set. Managers are responsible for planning, leading an organizing the efforts of organizational members in using the resources to achieve planned objectives.

Need to maintain good relationship with suppliers to maintain the resources available every time.

For high quality plans high quality of resources are needed. Managers are also responsible to see that resources are coming continuously or not.

Maintain a proper level of stock. Maintain a quality in organization. When the products become ready there should be a proper quality check. Get the feedback from customers to check the quality.

2.3

Describe strategies used to predict and manage disruption in resource supply and source of supply

It is a good strategy to keep the raw material according to need and having a big warehouse to store the resources. But most important is that raw material and other related things should be available in the time of need, it is called JIS(just in time). If all the required resources are available on time, then it does not cost the organization. In this way organization will provide the products on time and will maintain the quality of product.

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A time can come which can bring such a circumstances in which a disruption comes in the supply of resources. It could be due to following reasons Late delivery If the delivery is late then manager uses strategies for solving this problem. He Contact supplier and find out why delivery is late. And make sure for the next time on time delivery. Sudden increase in price If the supplier increases the price of his goods or services then manager Consult with supplier and find out why price is increased. And check with other suppliers for more competitive prices. Disruption by external factors If the manager feels external factors like weather conditions may create disruption in supply of goods or services due to which supplier and receiver may face trouble. For this manager manage the material and other resources in advance . Supply low standard material If there is problem that delivered goods are not up to standard then the manager strategies consult with suppliers, Pointing out quality shortfall, Find out why supplier has changed, Is this permanent or temporary change, Is the alternate product available .

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Be able to monitor and evaluate internal and external resources use to meet plans

3.1 Review progress of actual resources use against planning resource use Review and monitoring is most important thing in management. Effective records keeping will help management to know what goes in and out of the organisation, which uses what, how much is spent on what, and how those in control spent what is available to them. Proper record will help you a lot in reviewing the progress. The management of the resources will not only involve how the resources are used, but rather how records are kept and reported. This will also depend on effective records keeping of the organisation and how information about the use and misuse of resources are reported to those who are in management. To maximize profit, every organisation needs to keep proper records on what resources are used for production and what resources go out of the organisation. To know what happening in the organization it is very important to have effective records. The management never focused only on how the resources are going to be use, it is also keen towards the records and reporting

3.2 Discuss methods of recording and reporting resources use

To use the resources affectively and efficiently, the document are made and resources are monitor which is called recording and reporting of resources. All these activities carry out in cost centre. This is the department in an organization which perform recording and monitoring of resources.

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Drawing up the budget To manage finance effectively and avoiding debt, drawing up budget is an important key. Once you collect the information then you enter in the budget forecasting . (Leech, 2008). With the help of a computer you can draw a spread sheet program. Spread sheet program will be involving these areas. Check your figures Update your figures Present your forecast clearly Explore the implications of any changes

There are several forms of budget forecast. Its depending on what it covers. Budget should be printed down the left hand side. There should be a separate column for each activity. Preparing to present budget forecasting Before presenting the budget it is important to make sure that I am clear about the organization strategy. It will have a good affect on area of responsibility. The information of inflow and outflow should be correct and update.

Budget preparation

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The process of budget preparation should be necessarily before the budget period to which it relates. It is coordinated by the controller. For the preparation of budget, the authority and responsibility should be delegated to a named individual who is supplied by appropriate information data to help preparing budget by controller of budget. After completing the process, manager should make sure that information on objective, policy and targets is discussed properly. It indicates that manager accepted the budget. Finance department prepares the budget and it is monitored by financial manager. At the end, it is reported to the chief financial officer who checks the reports and make the final financial decision.

Budge= income, expenditure

Budget Control On the basis of regular comparison between budgeted and actual results, control in budgeting is exercised. It tells the team performance and through this, manager can know about the financial position of their departments. Through the reports management knows that where the company things are not going to plan. Management is interested that variance occurs adversely and these variances are showed in report. Report tells about the current performance of the company and also indicates the direction of the business. My company has these reports

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in the form of balance sheets and income statements. To clear the figures of the budget, there is a need to make an account of profit loss.

Evaluation of budget Evaluation of budget means analyzing of following factors.

What company has done? How did company learn with new things? Checking and analyzing budget forecasting and procedure of monitoring. Addressing the problems which company had to bear during the budget.

3.3

Explain the methods of using resources information to inform future action. Some techniques are useful find out the future actions. In the process of decion making financial techniques are very important. Time factor is very important factor of investment decision. We need financial forecasting techniques when we want develop an investment proposal for project. On the bases of forecasting techniques you can use to evaluate the financial investment. These financial techniques help an organization to make investment

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in effective manners. There are different ways to forecasting techniques to evaluate investments opportunities. Pay back is a method and is easy to use forecasting. It is used to compare investment. The period needs to get money back because the money is today are not equal of tomorrow. The advantages of this method is that its easy to use apply, short time and very simple but the drawback of this method is to ignore time value of money, accounts and not very efficient. Net Present Value is also a method for forecasting for future.It is the difference between present value of cash inflows and outflows. If NPV is in positive it means the project is acceptable if it is in negative the more investment in this business is not good. Similarly IRR internal rate of return is also a method of forecasting.

References Pathways to Management and Leadership http://www.informationqualityresources.info/ My lectures understanding. Material provided by tutor. PESTLE analysis history and application, CIPD.

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Miller, G.T., and S.Spoolman.2011, living in the environment: principles, connections, and solutions, 17thed.brooks-cole, Belmont, CA. ISBN 0538735341 CMI Pathway to management (Leech, (2008) 2nd edition) www.managers.org.uk

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