Lesson 1, Topic 1
In Progress

3.1 The concept of resource management is explained within the context of new venture creation.

ryanrori January 7, 2021

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Resource management is the efficient and effective deployment for an organization’s resources when they are needed. Such resources may include financial resources, inventory, human skills, production resources, or information technology (IT).

Financial Resources:

Definition:  Financial Resources isthe availability of money in the form of cash, securities, creditors, loan facilities, etc possessed by an organisation.

Inventory

Definition:  A company’s merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets, since they can be converted into cash quite easily. There are various means of valuing these assets, but to be conservative the lowest value is usually used in financial statements.

Human Skills

Human skills involve the ability to work well with other people both individually and in group. Because managers deal directly with people, this skill is crucial! Managers with good human skills are able to get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. These skills are equally important low level (first line) management, middle level management and top level management

Production Resources

The main inputs for any production. Traditionally, economists identified three factors of production: labor, land, and capital. More recently, economists came to use the concept of three types of capital: physical (or produced) capital, human capital, and natural capital.

Physical capital (produced assets). Buildings, machines, and technical equipment used in production plus inventories of raw materials, half-finished goods, and finished goods

Human capital.   People‚Äôs innate abilities and talents plus their knowledge, skills, and experience that make them economically productive. Human capital can be increased by investing in health care, education, and job training.

Natural capital. A stock of natural resources- such as land, water, and minerals- used for production. Can be either renewable or non-renewable.

Natural resources. All “gifts of nature”- air, land, water, forests, wildlife, topsoil, minerals- used by people for production or for direct consumption. Can be either renewable or non-renewable. Natural resources include natural capital plus those gifts of nature that cannot be stocked (such as sunlight) or cannot be used in production (such as picturesque landscapes).

Renewable natural resources. Natural resources that can be replaced or replenished by natural processes or human action. Fish and forests are renewable natural resources. Minerals and fossil fuels are non-renewable natural resources because they are regenerated on a geological, rather than human, time scale. Some aspects of the environment- soil quality, assimilative capacity, ecological support systems- are called semi renewable because they are regenerated very slowly on a human time scale