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Unit 2 Business Resources
Merit Criteria 1
M1 – explain how the management of human, physical and technological resources can
improve the performance of a selected organisation
Human resources
Managing human, physical and technological resources is necessary for a successful
organisation. In Tesco their human resources department has an aim to “drive the right
behaviours, not just the right results”, they are there to; create a more social organisation,
design and deliver new training that helps create a new, warmer culture, design reward
schemes and partner with the senior leaders to deliver business change in the store. The
reason they do this is because they are trying to create the happiest environment they can
which reflects well when customers come into the store, as, if the employees are happy and
satisfied then the customers are also going to be.
Management of team resources is necessary to ensure that targets that are set by the
company are met, the resources include; skills within the team, experience and financial
sources. These all need to be managed to ensure that the team achieves what it needs in
the most efficient way, which in turn will have a positive effect on Tesco and help it to
perform better because if a team is working efficiently they are going to produce the best
results possible. Within Tesco there are departments, an example of one of these
departments is the mobile phone shop which consists of a team of employees that only
work in that department, they would need managing to ensure that the employees with the
best customer service skills are working with customers and the employees with the best
organisational skills are working out back sorting through paperwork and ensuring they have
all the correct stock, if they didn’t do this then the department wouldn’t perform as well as
it could do because the skills that their employees possess wouldn’t be being put to their
best use.
Providing appropriate incentives is a good way to encourage employees to work harder and
produce better results, better results means a better performance from the organisation
because it is doing the best work over other organisations. In the Tesco phone shop
department they have a wall of fame were the person with the most sales get rewarded this
creates healthy competition between the employees to sell the most phones which
increases the overall phone sales of the store which means it performs well. Tesco’s also
offer health and wellbeing benefits to all its employees.
Physical resources
Physical resources are used by Tesco on a day to day basis, physical resources are things
such as buildings and equipment, without these physical resources Tesco would not be able
to run. Tesco is mainly set up for people to come to the building and pick out the groceries
they want to buy and then go to the tills and pay for it then leave so without the building
there would be no place for people to go and Tesco would not be able to trade which means
they wouldn’t make any money. Buildings also have to be maintained to ensure they are
still up to date and offer goods that people want to buy, sometimes Tesco completely
revamps (maintenance and refurbishments) their stores which creates excitement in the
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