Advanced resource management

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Advanced Resource Management

Question 1: The advantages and disadvantages of purchasing methods are shown in the table below.

Purchasing Option



Electronic trading

Unlimited access where buyers can buy from any vendor anywhere in the world at any time

Time is saved from the efficiency of online shopping

One can get online promotions and deals from special discounts and coupon codes

Shipping rates apply despite free flat rate shipping. For example, free shipping applies to clothing goods above $50.

The buyer has to wait for the product to be delivered which may delay (Handfield, 2014)

Different policies for refund and returns makes the process tedious and frustrating

Direct purchasing using supply agreements

Transactional costs will be less and search efforts reduced

Maintains and develops good relation with suppliers through direct contact (Williams, 2006)

A standardized purchased procedure is established

High value-high risk goods can be purchased

Purchase of services and goods can be purchased when not required

Locks out potential suppliers who could offer competitive quotes

Direct negotiations

One of the fastest and effective methods

The supplier is known and qualified

Poor transparency and higher prices

High risk of favoritism

Possibility of obtaining low quality products

Invitations of tenders

Suitable for high risk-high value procurement

Fair and equitable opportunity for all interested parties

The supplier with the lowest bid is considered hence saving the organizations some funds

Appropriate for specific services and goods and the procurement circumstance

Not cost effective and may not give the best procurement outcomes

High possibility of being manipulated through canvassing

Competitive negotiation

Well known suppliers are considered

Few resources and less time is required

Less competition and transparency in the process

Danger of favoritism

Suppliers get the temptation to inflate prices of services and goods (Handfield, 2014)

Written quotations

Procurement lead-times are significantly reduced

Selection process time reduced due to limited number of quotations

High possibility of response for quotation requests (Williams, 2006)

Since procurement entities decide suppliers, there is a potential for irregularities

Breaking of requirements leads to abuse of this method

Potential firms can be limited despite abundance of work to be done.

Question 2: Consulting with relevant stakeholders

Stakeholders are interested parties in a project or an organization undertaking operations. Key stakeholders determine the level and nature of resources such as raw materials, premises, human resources, supplies and training materials. Common organizational stakeholders include employees, customers, suppliers, management, institutional regulators, local community, and government actors (Friedman & Miles, 2006). The nature and influence of each stakeholder is assessed to understand their impact on policy, strategy and the product being undertaken. For example, the senior management has command of control of budgets while suppliers control strategic resources such as inputs and services. On the contrary, stakeholders may have indirect influence owing to their economic, social and political status. For example, local communities influence access to raw materials and thus control access to strategic resources. According to Friedman and Miles (2006) stakeholders are categorized into three levels; low, middle and higher levels. While the lower level involves informing, therapy and manipulation, the middle level comprises negotiation, consultation and explaining. The highest level consists of stakeholder control, partnership, collaboration, delegated power and involvement.

Consulting some of the stakeholders such as municipalities on suitable construction plans helps to obtain feedback on outcomes, alternatives and analyses (ACG, 2006). Through consultations, the organization promises the stakeholders that they will remain informed and their concerns and aspirations listened to and acknowledged. It is important to provide feedback on how the input of stakeholders influences the outcome. Some of the consultative methods to stakeholder engagement include web 2.0 tools, Ultranet, public meetings, surveys, focus groups and public comments. Consulting widely helps in collective knowledge about management and risk identification. Moreover, it provides an avenue for reducing likelihood of adverse events or unmet expectations of stakeholders.

Question 3: Analyzing information to determine the nature and level of resources

Information that is required to be analyzed to meet specific business goals include staff productivity, raw materials, process efficiency, supplier negotiations and power, supplied services and goods and services or goods purchased by customers. Specifically, information such as sales targets or revenue collected should be analyzed using data visualization tools and comparisons made to gauge the actual figures from the expected. Quality and quantity are run through a correct checking process to ascertain that requirements are met and that they comply with the required service agreements. For future improvements, these areas are reviewed on issues such as current supply practices, budgetary allocation, possibility of alternative suppliers and quality of goods supplied.

Guest (2007) observes that information regarding the state of resources can influence organizational requirements. Inadequate human resource skills compromise the quality and desire for continuous improvement standards and processes. It is important to analyze resource requirements by gathering accurate information, understanding the needs of stakeholders and clearly articulating their requirements. For example, an audit on staffing will inform the right response to be given. Knowing the rate of staff attrition will help to know how human resources will be sourced or recruited and the selection options available such as outsourcing or employment (Ulrich & Lake, 2000). This means that specific information on staff morale, culture, training standards, natural wastage, remuneration, qualifications and skills; grade, function and location need to be gathered.

Question 4: Action plan to acquire and manage resources


Acquisition and allocation

Management Strategies

Time lines


Human resources

Recruit right skills and qualifications

High morale and commitment

Training and development

Good remuneration and facilitation of work/life balance

HR Manager

Production facilities

Location, quantity and quality of plant and machinery

Ensure that there is proper maintenance, upgrades and capacity efficiency is maintained

Production Manager

Raw materials

Quantity and quality

Suitable negotiations with suppliers to obtain good quality materials

Procurement manager

Marketing facilities

Increase distribution channels; and marketing budget

Manage distribution channels and allocate financial resources to advertising and promotions


Sales Manager

IT systems

Hardware and software

Train IT staff; integrate systems to capture key stakeholders


IT manager/Systems administrator

Premises and machinery

Offices, warehouses, and outlets

Renovate and assess for workplace OHS (safety & health)


Stock and supplies

Inventory planning

Plan and use IT systems to manage inventory movement

Procurement manager

Question 5: Implementing the action plan

Workplace systems can be implemented through plans that maximize efficiency in resource use. A business plan is created to allocate resources and a suitable roadmap for growth. Allocation of resources to meet specific targets should be accompanied by control measure. For example, recognizing the need for specific skills to run newly purchased equipment that will increase revenue to the organization, there is need for recruitment and selection. The table below shows an implementation of the action plan.

Resource constraint

Monitoring and evaluation


Human resources (People)

Sub-contract labor or employ directly; manage health and safety risks; comply with labor laws and requirements

Check skill demand and availability in the market; procure through best recruitment methods


Financial resources (Money/time)

Manage leases, purchases and hires; document receipts, payments, creditors, banking and financial budgets

Address imbalances in budget, balance sheets, operational and business plans


Physical resources (Infrastructure/Material/ Equipment)

Proper materials handling; receive and check or inspect; purchase correct schedules of material requirements; manage plant and machinery; Proper usage of consumables, water and energy.

Monitor resource use from annual budgets


Information resources (Knowledge and Technology)

Perform schedules, networks and documentations; run control systems and computer programs

Review implementation guidelines and perform business continuity planning


Question 6: Expected performance and adjustments

Reporting of resource usage and accurate reviewing to senior management shows the desire to achieve a certain level of performance. Furthermore, actions taken by management and employees to rectify procedures is one way to meet compliance, product or service delivery standards. The reports prepared should capture capacity on work tasks, allocation of total resource hours, availability of resources each month, actual hours worked, resource utilizations, sales and revenue and return on investment. The table below shows expected level of performance for Heinz Apparel Manufacturing Company.

Machine operating hours: 23 hours

Manpower: Max 10 hours per day × 200 workers = 2000 hours

Machine uptime efficiency expected at 98%

Worker fatigue: 80%


Total resource human resources hours: 200 × 10 hours; Schedule: 35 sewing machines per 150 people. less Sick-offs and leave; 20%

=1,600 hours/day

Shows total resource hours based on administrative work, operational work, time off and task work


Capacity – Allocation = 2000 hours – 1600 hours

=400 hours × 26 days = 10,400 hours/month

Total time resources are available in a month

Adjust to say 150 people × 9 hours = 1,350 hours/day

Total hours a resource worked when adjusted to 150 people and not 200 expected


1600/2000 = 80%

Allocation divided by capacity

Sales and revenue

Sales figures: 180,000 garments per month

Monthly Revenue: $5million

Revenue collected and sales figure achieved

Return on investment (ROI)

Profit: $150 million per annum

Profit achieved from sales


Friedman, L. & Miles, S. (2006). Stakeholders Theory and Practice, Oxford University Press.

Guest, D.E. (2007). Human resource management and industrial relations. Journal of Management Studies, 24(5): 503-521.

Handfield, R. (2014). Leading change in supply chain management. Poole College of Management.

The Allen Consulting Group (2006). Stakeholder Engagement and Consultative Arrangements in Government; A Collaborative Study, Melbourne.

Ulrich,D. & Lake, D. (2000). Organizational Capability. New York: Wiley & Sons.

Williams, S. (2006). Managing and developing suppliers: can SCM be adopted by SMES? International Journal of Production Research, 44(18–19): 3831–3846.