D1: evaluate how managing resources and controlling budget costs can improve the performance of a business
D3: evaluate the problems they have identified from unmonitored costs and budgets.
Name: Shermarrie Weekes
Unit 2: Business Resources
D1- How does managing resources and controlling budgets improve the
performance of the business.
Introduction
This assignment focuses on how the management of resources within a business and
controlling budgets along with that can help to improve the performance of the
business.
The management of resources along with budget control can improve the business in
many ways. Resources are any items that the business owns, whether physical or
intellectual. These resources need to be managed in order to run a business
smoothly. Controlling budgets prevents the business from having financial issues in
the future. Businesses make an estimate using previous data from records of the
business to make a prediction of what the next set of expenses and revenue may look
like.
To begin, human resources are resources that involve the employees and staff of the
business and management of these resources revolves around how the business
ensures that their workers are trained and motivated so that they perform well in the
business in order to make a profit. This resource needs to be managed to produce a
higher profit. If employees are satisfied and happy with the business, then they will
do their job and continue to do what is needed to ensure that the business is running
smoothly. Controlling budgets will enable the business to be able to provide the
employees with training, be able to pay their salaries and also increase their salaries
and provide them with healthy working conditions to keep them motivated. This will
improve the performance of the business because staff members will do what is
necessary such as providing customer service and ensuring that customers are happy
and happy customers will equal to more customers and an increase in the profit of
the business.
Next, physical resources are resources that are tangible. These include; the buildings
and land, machinery and equipment, materials and vehicles. The management of
these resources are ensuring that these resources are in shape by maintaining them
and organizing insurance and security as well as keeping them clean. If these
resources are always in bad condition and damaged or not working then the business
will have to spend money more often to get them fixed or to purchase new items to
replace them and might even land the business in debt if they are not making enough
money to do so. Therefore, if staff is trained on the use of equipment and the
business ensures that physical resources are managed on a daily basis and that there
is planned maintenance in place for them, then it will help them be up to date and be
able to fix any problems before it rises and leave the business in a debt. Controlling
budgets will ensure that the business is able to cover the costs of maintenance of
these physical resources around the business. If these resources are in shape then it
will attract customers for they are being provided quality and a healthy and clean
work environment and conditions. This will improve the performance because it will
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