resources Flashcards
Human Resources
how is business efficiency influenced?
its a measure of how well the business organises its resources and is directly related to the quality of its workforce
influenced by:
- how the business recruits its workforce
- how much the business pays its workforce
- how the business trains its workforce
- how the business organises its workforce
how to get the best people?
- offering higher financial rewards
- introducing family-friendly working practices
- using an employment agency
- offering both full time and part time positions to attract more people
how can the quality of labour be improved?
- by training
types of training: in-house: benefits: - directly related to needs of the business - inexpensive - no travel costs
limitations:
- staff may be called away to deal with irgent work
- trainers and resources not up to date
- no experience gained from meeting employees from other businesses
external:
benefits:
- no distraction from day-to-day work tasks
- up to the minute resources and trainers
- delegates cab benefit from eath other’s business experiences
limitations:
- training may nit be perfect match for business
- expensive
- travel costs
physical resources
what are physical reosurces, give examples?
include all the tangible assets owned and used by a business
- premises: add on costs include: utility costs, property insurance, maintenance
- equipment: add on costs: replacement costs, servicing contracts
- vehicles: add on costs: fuel costs, vehicle tax, road tax
- IT equipment: maintenance and service contrasts, broadband conection charges, software updating costs, technical support costs
purchasing decisions
what are the different ways of purcahsing a premises, give advantages & disadvantages?
purchase: advantages: - property is an asset of the business - property may appreciate in value - the business is the legal owner of the property
disadvantages:
- a significant deposit may be required
- property maintenance costs
rent: advantages: - smaller deposit required - no depreciation costs - major property maintenance may be the responsibility of the lanlord
disadvantages:
- may not be able to enlarge the premises
- cash flow difficulties if rent increases
- no benefit if property prices increase
what is leasing, give advantages?
leasing involves paying a set sum each month for a specific period of time and tgen returning the equipment to the supplier at the end of the lease period
physical resources such as vehicles, equipment and IT hardware are either purchases outright or leased
advantages:
- cash flow is more easily managed
- no depreciation costs
- can upgrade the equipment at the end of the lease period
choosing the right supplier
securing value for money from suppliers
- availability of spare parts
- delivery schedule
- delivey costs
- availability of online ordering
- discounts for bulk or repeat orders
- special offers
- reputation
financial resources
what are the sources of business finance?
sources of business finance:
- venture or start-up capital: required to start a business
- investment capital: used to finance the purchase of equipment or to finance business growth
- working capital or running costs: used in day to day running of a business
short-term (pay back in less than one year):
- trade credit: to purchase stock and raw materials
- bank overdraft: to deal with short term cash flow problems
- invoice discounting/factoring: to improve cash flow
medium- term (pay back in 1-5 years):
- leasing: to provide capital equipment which may become obsolete or outdated over a relatively short period of time
- hire purchase: to purchase capital equipment e.g. vehicles
- bank loan: to pay for machinery or equipment
long-term (pay back in more than 5 years):
- mortgage: to purchase business premises
- share capital: to finance long term expansion and growth of the business
