Physical and technological resources of a selected organisation

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Describe the main physical and technological resources required in the operation of a selected organisation. M1 – explain how the management of human, physical and technological resources can improve the performance of a selected organisation.

In this assignment I will describe the main physical and technological resources required in an organisation, and how the management of human, physical and technological resources can improve the performance of Tesco.

Physical resources

Some of the main physical resources for Tesco are; their premises, machinery, equipment, materials and their stock.

I have listed these as the main resources required as they are huge factoring reasons as to why and how Tesco makes such huge amounts of profit.

A business can’t carry out its day to day activities without having a system in place which manages physical resources. Physical resources can include; buildings and premises, machinery, materials (and even waste) and equipment. Businesses should manage its premises according to size, the environment and location of the organisation and even according to its customer needs, wants and requirements as it needs premises to operate.

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The management of the businesses machinery greatly helps increase performance of Tesco as it means they can produce products faster, deliver and receive products faster, and serve customers faster and more efficiently.

Lack of equipment or bad management in Tesco could mean production of products and customer service in some aspects of the business running couldn’t be carried out as efficiently or at all. Things classified as equipment could be IT hardware and software that must both be managed extremely carefully.

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No one unauthorised to do so should be able to access the IT hardware, this can be enforced with physical barriers and surveillance. The software should also be protected with adequate security and firewalls etc. to prevent people from accessing Tesco’s databases of customers and products, which could cause a huge loss of reputation and money if it was accessed by unauthorised personnel.

Technological resources

Tesco’s’ main technological resources include their intellectual property, their copyrights/patents, and their experience and skill. Their intellectual property is, put simply, their ideas; things that make them unique. This would include things such as their logo, their ‘Tesco value’ range, and schemes such as the clubcard and the point reward scheme.

The management of these resources can greatly improve Tesco’s performance. If the IP is kept up to date and fully modernised this will give them a competitive advantage, as long as the ideas are original and not different versions of competitor’s ideas. The IP of Tesco is what makes them Tesco, and will be how consumers recognise the brand; if this is kept in good light customers will trust the business and feel connected and familiar with it. By recruiting successful and experienced staff into the management, they can guarantee themselves to make the best decisions possible, and of course, the experience of the business as a whole also makes them what they are today.

Human resources

The management of human resources is crucial for an organisation. The management should ensure their employees are managed correctly and professionally. If employees perform efficiently and effectively then the customer service and therefore profitability of a business will be maximised. A business can manage its human resources through many methods, including; employee motivation/rewarding, training, appraisal and personal development planning. One of the most important aspects of managing HR is employing individuals with the right skills, qualifications and even personality for a particular job or task they will be required to do. In relation to Tesco, from experience working there, they could provide greater training in the products they sell so staff are able to provide a better, more personal feeling customer service.

D1 - Evaluate how managing resources and controlling budget costs can improve the performance of a business.

Budgets must be closely monitored (and stuck to) in order to fully achieve to the businesses maximum potential. The processes and internal techniques must be managed and all resources must be effectively used. It is very important for a business such as Tesco to manage their resources and control their costs in order to budget. Managing resources and controlling costs to a budget is very beneficial for Tesco as it involves a lot of different resources and money is always flowing in and out of the business, which, if managed well, will improve the performance of Tesco.

Managing physical resources is very important as they are essential for the day to day running of the business. Tescos management should do things such as check their machinery, equipment and premises regularly to make sure that everything is efficiently working and also to help Tesco improve their overall performance. It is also very important that Tesco provides employees with suitable induction and training programmes on how to operate new machinery so they are up to date in the knowledge of use and know how it can be used most effectively.

If an employee isn’t familiar with how to use a piece of machinery, the efficiency of the business will be decreased. Tesco has many physical resources that should be effectively managed; such as their entrance and reception (customer services), which should be kept tidy, organised, and any damages (such as the fire damage as a recent example in Newbury) should be fixed as soon as possible. As this would be the first thing a customer would see when entering the store. Other physical resources used by Tesco could be the bakery and cleaning equipment; such as Hoovers, floor cleaners and ovens; all this equipment should be regularly checked as physical resources like these have a high chance of needing replacement, and subsequently, affecting the budget of Tesco.

Premises is the most important physical resource of Tesco. If the premises and main equipment used within are managed well, then customers will be satisfied with their shopping experience and feel comfortable to return, increasing the chance of them being long term customers. Human resources are also a big aspect of the running of Tesco. This must be managed effectively and successfully as the employee performance directly affects the success of Tesco. HR can be managed through training and regular appraisals, which will develop new skills and improve performance in the work place, which will affect the performance of the whole business. If HR is not effectively managed, employees job skills may go ‘off track’ and employees with the wrong skills will be in the wrong job, holding back the productivity of the area they work in, also, affecting the whole business.

Keeping all employees motivated is a key aspect when managing employees. If they are not motivated, the working environment will be bad and staff will perform under their potential. Tesco could (and do) motivate their staff through reward systems, where they pay staff for successfully completed tasks, or offer them incentives to succeed. Regular appraisals have been proved to be a successful way of managing HR. this can be carried out whenever seen fit by management, so it is therefore not overly time consuming. It also costs nothing, meaning no monetary cost is placed on the business expenses.

This can also relate to costs to budget as appraisals will create a better relationship between the management and the staff and therefore encourage long term employment, cancelling out recruitment costs. It will also, more simply, mean staff are happier to save the companies money, as they have a better view of it. Technological resources are intangible but are managed similarly to physical resources. The management of technological resources will massively improve the performance of a business.

Budget management, may sound simple – controlling what the business spends, but it isn’t, nor is it just this. Budgeting can come under all categories of resources, for example; HR. HR can help a business budget by the amount of people they recruit, and keep in a job, for example, if Tesco were over-staffed they may consider laying off some staff. However, this could go either way. If too many members of staff are laid off, then the over all productivity of Tesco could be negatively affected.

The staff left could lose respect for the business and therefore motivation to work within it. Less staff, if done in the right was, could be positive however, if those who are laid off have the reasons and regrets fully explained to them then they may be less bitter about it. They should also ideally be offered some kind of benefit pack for staying employed in the business for as long as they have. If the staff left at the business are also explained what benefits have been given to the employees who have left, they will also be less bitter about the budget cuts, and may remain just as motivated as before, as long as they feel secure in their job.

Updated: Jul 06, 2022
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Physical and technological resources of a selected organisation. (2016, Apr 13). Retrieved from

Physical and technological resources of a selected organisation essay
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