D1 – Evaluate how managing resources and controlling budget costs can improve the
performance of a business
Tesco has many resources to manage and keep up to date, which includes aspects from
human, physical and technological resources.
Human Resources
Management of team resources (skills within the team, financial sources and experience)
helps to increase happiness in the workplace. Happiness within the workplace is a key thing,
this is because when staff are happy they become more efficient; efficiency makes the team
cost effective. Management of team resources requires the manager to have lots of
information on its team member. For example the manager should know which members of
their team have specific skills and what experience they have and then put them in specific
roles related to the skills and experience. Management of team resources is important as it
means that the team members are all in the correct job for their skillset and experience, it
also means that the money that the team has is all directed to the right place and used
efficiently.
Appropriate incentives create healthy competition within the workplace. Incentives aren’t a
necessity for a successful business but they may help to improve performance as it gives
employees a reason to strive to be successful in their day-to-day job. Creating appropriate
incentives does not need to be a priority but if management of all the other resources is
good then incentives would be the next change to make to increase performance.
Physical resources
Buildings and equipment are usually the thing that customers get their first impression of
Tesco from, this is because it is the first physical thing they see. If the equipment is not
functional or the building is not big enough to function then customers are going to have
issues buying what they want and if they have issues they are not going to bother shopping
there again as there are alternatives (competitors).
If the building and equipment is not in good condition then customers are going to think
that the business has poor management and are not going to provide them with a good
service so they will likely go elsewhere for the service. Stores have to be maintained and
refurbished to keep them up to date and if this is well managed and is clean, with all their
equipment fully functioning then the business will get a good reputation and customers will
want to shop there. If Tesco has good products but the building and equipment wasn’t
managed well then the business will still not do well because reputation is very important
and can turn away loyal customers.
Technological resources
Software needs to be managed to ensure that its efficient and meets all the demands that it
needs to, if it is not managed properly and it either stops working in front of a customer or if
it stops working when a stock check needs to be done then the store will end up looking bad
and they may not have enough stock to sell.
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