Furthermore how the effective or defective management of those resources can affect the operation of the business as a whole, whilst clear examples will be given with each resource. Additionally how the management of the budgets for each resource ill affect the performance of the organization. The organization that has been chosen is Toyota as they have major physical, human, technological and financial recourses whilst having great management and budgeting to keep things in place.
The effective management and controlling budget costs of the business resources are a fundamental aspect of running a business. They can help to manage the cash flow, productivity and performance of an organization. There are multiple amounts of recourses in an organization; the amount recourses available to an organization will depend on the size of the specific organization.
However these recourses require closely controlled budgets and minimal costs to allow them to perform at their maximum efficiency inevitably allowing the business to improve their overall performance both in the short and long term. Toyota is a multinational automaker operating at a global scale employing over 300,00 employees and owning a vast amount of physical recourses however as previously said these recourses are going to require great budgeting to allow Toyota to perform well in the long term.
By controlling the budgets on all recourses Toyota is able to allow each functional apartment to function at their maximum efficiency however under stringent budgets which will allow Toyota to control their main costs and keep them a minimum this will allow Toyota to invest in other areas of their business such as investing more cash in research & development for a new technology for one of their vehicle models or a new vehicle as a result of the close control in costs through budgeting Toyota is able to benefit from these cash cut-backs in long term as they will have more cash to play with through research & development allowing them to create the product more towards the target market consequently having a high hence of increased sales in the long term; inevitably increasing the performance of Toyota in the long term. Though there are some problems when budgeting and controlling costs, the main problem with budgeting and trying to minimize costs is that Toyota could over- budget one of their departments when trying to reduce costs to a higher extent e. G. Marketing department as a result of this, the marketing department will be unable to market their products efficiently due to the lack of cash to spend with therefore in the long term when one of Toasts product is launched the target market will have title or not enough knowledge of the product therefore can reduce there long term profits of Toyota.
However to overcome the problem of over-budgeting Toyota will need effective management with the different departments to know exactly how much each department will need yearly and work with each department to understand where some costs can be decreased as a result of this there will be a lower chance of over-budgeting due to Toyota understanding how much each department will need. The human recourses of a organization is one of the most important recourse available therefore they will need effective management and an efficient budgeting Lana to reduce costs due to human recourses being the work force of the organization therefore will be the ones who undertake the tasks an organization will deal with furthermore; they will require more care and comforting than any other recourse in a organization. 3. 1 Human Recourses at Toyota Toyota is a multinational automaker, which operates on a global scale with an employee figure of over 300,000 working for them.
As a result of this Toyota has to take great care of their human recourses by managing them effectively in order to gain maximum efficiency to reduce costs and improve budgeting inevitably increasing the performance of Toyota. The employees are one of the most important stakeholder groups of Toyota as they are the workforce of Toyota therefore will need great management to keep them motivated. The management of human recourses are one of the key management difficulties in a business such as Toyota due to their vast number of employees. Firstly the employees are going to want a good rewards and benefits scheme to keep them motives and improve productivity which in terms of the employer and employee will increase the overall performance of Toyota through high productivity.
By providing the employees with a rewards and benefits scheme they will tend to enjoy their employment with Toyota inevitably becoming more productive through their rewards this in result will want the employees to stay at Toyota building experience and skills on how the business work which in the long term can benefit Toyota as they can be promoted through the hierarchy to become a head of department this will be beneficial through internal employment as the employee will have accumulated experience and skills and an large understanding of how Toyota undergoes tasks. Furthermore by providing the human employees with rewards and benefits scheme it will inevitably increase the performance of Toyota due to their increase and motivation and willingness to adhere to new tasks resulting in an increase in efficiency.
Done A The physical recourses are one the fundamental recourses for a large business as they are the recourses which allow a business to carry out and maintain its operations. The physical recourses consist of things such as, buildings, facilities, plants and machinery. However these recourses will need to close budgeting and effective management to allow these recourses to operate a high efficiency as a result f this they will need things such as planned maintenance, refurbishment, organizing insurance and implementing a security system to keep the recourses safe. Furthermore these resources require close management and controlled budgets to reduce costs to allow them to perform at their maximum efficiency inevitably allowing the business to improve their performance overall. 4. Buildings and Facilities Due to Toyota working in both the primary and secondary sectors they will inevitably have great amounts of buildings and facilities to accommodate their high output therefore having to effectively manage these buildings and facilities to gain axiom efficiency. Toyota work in both the secondary sector of manufacturing the raw materials into functional cars and also function in the tertiary sector by having to sell the vehicles to their target market. As a result of this they will need to effectively manage the different buildings and facilities to operate at maximum efficiency to endure consistently high performance. Firstly Toyota will have factories operating in the secondary sector with their main headquarter in Japan this is benefit Toyota as they will be in close proximity to their main and largest supplier. However the factory will be built upon land, which can either be purchased or leased.
Purchasing the land will result in Toyota spending a large sum of cash at the start up of the factory and having to endure an increase in stringent budgets to help retrieve the cash spent on the land to purchase equipment for the factory in comparison, leasing the land would be an ideal method of acquiring the land as it will allow Toyota to spread their costs over a long period of time allowing them to avoid the major budgeting as a result of this Toyota will be able to easily go about operating the factory due to a more freed cash flow therefore by easing the land, Toast’s performance and productivity will increase in the long term. Furthermore by having their headquarter in Japan and being close to their main suppliers will allow Toyota to have low halts in production due to the arrival of parts not being able not being disrupted by having to travel long distances. Secondly, as Toyota also operates in the tertiary sector they will need to have showrooms for the potential customers to purchase their vehicles. These showrooms will be working directly with the potential customers therefore will need to have allowing the customers easy access.
The showrooms are the location in which Toyota can transform a potential customer into a repeat customer this can be done by having attractive showrooms which can increase the chance of customers wanting to go inside the showrooms however when customers enter the building there will need to be careful management so the customers can easily access the cars on display and sit down with the salesman/women hen discussing possibility of purchasing as a result of this the customer will have a higher chance of being impressed and wanting to purchase the vehicle from Toyota, by effectively managing the showrooms with erect relation to the customer and impressing them to having a higher chance of repeat customers Toast’s performance as a whole will have a substantial increase in the future. 4. 2 Materials and Waste Due to Toyota operating at a global scale and having their factories manufacturing raw materials into functional goods the management and budgeting of these the materials and waste can play a major role in improving the performance of Toyota.
The materials that are used by Toyota e. G. Aluminum, plastic, paint etc. To manufacture the vehicles will need to be effectively managed to reduce their waste to improve the performance of Toyota due to having Toyota having a chance of over- ordering materials which will need to be used in about a weeks time in the production line could be a costly feature to Toyota as firstly there may be insufficient space in the warehouses to store these materials and if the materials are stored and don’t need to be used the materials can then become obsolete by having no function inevitably turning into waste furthermore, resulting in a waste of valuable cash.
However Toyota have engineered and invented a new system for managing waste which results in the effective management of waste by introducing a system called Just In Time TIT) this system works by Toyota placing an order through their database in the showrooms and sends a message to the suppliers for which supplies are needed, the supplier will then send the materials to the Toyota factory ‘Just in time’ for when the specific material is needed on the part automated and hand production line. As a result of this method the materials are delivered ‘Just in time’ for when they are needed resulting in a decrease of waste as the management team cannot overspend on materials which are not needed. However the KIT system can have problems due to the supplies not always having an 100% delivery rate therefore can halt the production line causing a delay in production which can cost valuable money to Toyota however, by doing this the efficiency of Toyota has increased greatly resulting in greater efficiency and cost cutting. 4. Plant and Machinery Effectively managing the plant and machinery of Toyota can play a major role in increasing and maintaining high performance throughout Toyota and can play a purchased through cash with one payment as a result of this Toyota will not need to Orr about further payments of the machinery however, this will result in Toyota having stringent budgeting though their departments as they will need to recover the costs that have been spent on the machinery resulting in hindering other departments such as the research & development as the large constraints in budgeting will disallow them to perform their tasks with high efficiency, becoming hurtful to their long term business until the cash is recovered. Secondly the machinery for the Toyota factories can be purchased through ‘hire purchase’ this method works by paying through monthly installment and having the wineries of the machinery at the end of the payments.
This method is a more beneficial method as the costs of the machinery are spread out over a long period of time subsequently Toyota will not need to have stringent budgeting therefore the cash can be spent on other costs that arise such as unexpected costs for maintenance, this method is greatly efficient in raising and maintaining the performance of Toyota by having spare cash left over in case of emergencies. Lastly the machinery can be leased which will work by Toyota paying installment every month however, never having full ownership of the machinery resulting in elatedly high costs for a very long period time nonetheless by leasing the maintenance for the machinery will be included within the monthly installment preventing Toyota having to spend cash on maintenance as an unexpected costs this results in Toyota having a stable cash flow for the long term. 4. 4 Equipment Including Equipment is an essential part for a company to operate effectively as for example a school will need to have whiteboards, access to the register etc.
Without the essential equipment the Job will not able to be carried out effectively therefore resulting low radioactivity and low performance as a result a large organization such as Toyota with their main equipment needed for the customers in their showrooms having an effectively managed system will be crucial for high performance and strong brand image as it will be directly connected with the customers. Firstly the main equipment will be the IT server which include the database of the vehicle models available at the showroom and the secondary options available the management of this will need to be effectively managed as the customers will be cooperating with the salesmen/ women to help determine the prices, features etc. A result of this Toyota will need to have IT technicians at standby and constantly monitoring the server to make sure there aren’t any crashes. Secondly the basic equipment such as the pens, desks etc. Are minor equipment but can be crucial therefore the stock will be needed in case there is a shortage as it can decrease the productivity of the Toyota showroom employees. 4. 5 Insurance be arranged with the landlord by having a monthly fee however if it is purchased then Toyota will have to arrange the insurance cover themselves. The insurance generally covers events such as the following: Environmental damage e. G. Earthquake Damage to equipment Theft Vandalism Leaking pipes Accidents e. G.
Collisions by vehicles However the type of insurance coverage and payment will be dependent on the type of insurance coverage taken out by Toyota. There is the employers’ liability insurance which is compulsory by law it provides insurance in case an employee is injured, accidental death or is diseased by their employment in the Toyota factory an example would be the earthquake, tsunami and radioactive threat in Japan, some of the Japanese floor workers may have been infected by radioactivity therefore insurance ill be needed to be given out. The management of the insurance can be critical as an accident can happen at any time therefore the correct insurance policy must be taken out.
Furthermore these can help to improve the performance of the business due to an unexpected cost arising due to failure and damages to one of Toast’s assets then Toyota itself will not have to take the money of the reserves and use its own working capital to pay for the damages inevitably this will increase Toast’s performance as they will have money to re-invest into the equipment. 4. 6 Security In terms of Toast’s performance security measures are not directly linked to the performance of Toyota however it is an important aspect of operating a company as valuable machinery, equipment etc. Can be stored in the confinements of Toast’s property. However, the security needs to be managed effectively in order to prevent and threats to the company resources therefore Toyota can employ full time security staff to patrol the premises 24 hours a day having checks for who goes in and out of the premises.
Another method could be to use security cameras to monitor the area which will be directly linked to the local police however Toyota may need to have both the security guards and the cameras due to their large size and valuable equipment and machinery within the premises. 5. Technological Recourses Technological recourses are less of equipment however are things such as software, music or text nevertheless there recourses are owned like physical resources and 5. 1 Intellectual Property The intellectual property rights allow an individual to own their own ideas and have the rights concerning to what happens to these ideas, the usage, what they are to be associated with and if the permission is granted for the usage of the idea.
There are five main types of intellectual property: Designs Cover the features or decoration of products such as colors, lines, materials, shape or texture Drawings Covers and drawings off product, including the drawing of a patent Text Covers the actual style and content of text that is used including data written on websites Music Covers the use of music for public or private performances and its copying Video Covers the use of video clips within websites or whole files and the protection against popping or performances in public place The management of intellectual property needs to be effective as the ideas of Toyota are their ideas therefore to stop their direct competitors e. G.
Ionians copying their ideas will allow them to take full advantage of the idea and to maximize profit therefore the management will need to be effective to allow Toyota to take full use of their own ideas. 5. 2 Accumulated Experience and Skills Accumulated experience is the experience an employee has gained over a number of years when the employee has dealt with a large number issues with the Job. Toyota will want to retain these employees as they will help the business to grow by having direct knowledge in how Toyota performs their tasks, this retention can be managed by providing them with increased pay to make them stay with Toyota or providing them with promotions to help increase the experience.
However it is an important aspect of increasing employee experience throughout their employment though a company cannot rely on one person being able to operate the machinery at the Toyota factory for example therefore they will need to use cascade training in order o allow succession. Furthermore this will help to increase the performance of Toyota as a whole due to the employees having a greater knowledge of how Toyota works as a result of this this will enable the employees to have greater knowledge and more confidence in what they are doing due to this they will need to seek less advice when carrying out tasks for Toyota. 5. 3 Software Licenses in their factories and showrooms as a result of these there needs to be effective management in controlling the licenses fees to prevent over-licenses where they are paying for multiple licenses e. Microsoft Office for different departments where they will only need one license as a result of this Toyota will be spending valuable cash when it should have been used for more useful things such as upgrading the machinery. Therefore an effective management scheme and plan needs to be in place to prevent over-licensing and to make sure the licenses are being paid for. 5. 4 Protection via Patents and Copyright Protecting both patents and copyright can be an extremely costly for a business such as Toyota as they manufacture large quantity of different designed cars, which can e easily copied by their competition. A patent gives an inventor the legal rights to prevents another individual copying or using part of their invention without their permission as a result both patents and copyright are part of the intellectual property law.
These will need to be managed effectively as it can allow Toyota to have ease when manufacturing a large number of vehicles which different designs this can be done by having a separate department only dealing with the intellectual property law for Toyota however, if both the patents and copyrights are not managed ropey then the IP can be copied by another competitor resulting Toyota unable to maximize profits from that particular product resulting in the loss of performance by Toyota. 6. Financial Recourses 6. 1 Bank Loan/Mortgage Bank loans do not directly contribute to Toyota as a whole however, they contribute by providing the funds for Toyota to purchase assets e. G. Land.
Toyota will need to effectively manage these to increase the performance of Toyota as there will be monthly re-payments of the money borrowed with interest rates which can either be arable or fixed rate interest rate nonetheless, acquiring a bank long or mortgage can further increase the performance of Toyota by providing it with finance to purchase assets in order to expand, purchase new machinery, invest in new facilities therefore it has an indirect affect on the performance on Toyota nonetheless, it is a positive affect. 7. Conclusion In conclusion every business will have human, technological and human recourses however, it’s the affectively in which the businesses manage and use these recourses to achieve maximum efficiency and to enable mastication of profits furthermore, to