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Managing Human, Physical and Technological Resources

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The first resource that I am going to study is Human Resources. Human Resources are the people who work for Tesco. They need to be treated carefully and with respect. Tesco manage their staff in different ways to run successfully Staffing to meet changing business demands

Staffing to meet changing business demands mean that Tesco now have a number of different staff working for them depending on how busy or not they are. For instance, Tesco recruit more staff at Christmas time because they know they have a lot more customers then. Having more staff at this busy time means customers are being served quicker. They don’t have to wait as long to be served and they get good customer service and will want to come back again. This means that the sales and profits increase, making Tesco more effective. Co-ordination of team resources to meet targets

Staff members at Tesco have unique talents. Tesco put a staff member who is good with customers onto the shop floor to deliver good customer service. Having a staff member who is good with customers on the shop floor or on tills is effective for Tesco as it will encourage customers to come back, as they have received good customer service and will leave Tesco happy. They will continue to shop in Tesco and this will increase sales and profit. Monitoring of team performance

Monitoring of team performance means making sure that everyone who works at Tesco knows what they are doing and are performing well in their job. Tesco hold regular meetings to monitor their team performance. This is effective for Tesco as it encourages the workforce to work harder and clarifies what they are supposed to be doing; this makes the employees content and confident in their role. A happy workforce is a more productive workforce which is less likely to phone in sick, meaning Tesco will not be understaffed and customers will always have a positive shopping experience.

Liaising with other departments

In Tesco, teams of people take charge of different areas and it is very important for Tesco that there is communication between each department. Without communication between these departments, Tesco couldn’t run smoothly. For example, the Finance department in Tesco need to communicate with the Marketing department so that the Marketing department know how much money they have to spend. This means that they can effectively advertise Tesco’s products and attract more customers to the shop; this will increase Tesco’s sales and profit and make Tesco more effective as a business. Establishment of Professional Culture

Tesco need to have a professional image for their customers. An example of how they do this is by making their employees wear a uniform. This is effective as the customers know who they can talk to in the shop if they have a query or problem and therefore they will leave feeling happy with the service they received from Tesco and will want to continue to shop there. Provision of appropriate incentives

Tesco offer their employees little rewards for working hard and being part of the business. These are called incentives. An example of this is employees receiving bonuses in their wages. This is effective for Tesco as it will make employees work harder and meet their targets. This makes the store more likely to achieve their overall targets and for the entire business to achieve its aim. Encouraging creativity and initiative

Tesco show their employees that their ideas are valued and they can use their employee’s knowledge to benefit the company. For instance, Tesco don’t give their employees strict ways to work, they let them work out the most effective way for them to do their job. This is effective for Tesco as employees can find quicker and easier ways to do their job and therefore employees will be happier. They will make the employees have a positive attitude in their work and it will be reflected back to the customers. The customers will continue to shop in Tesco because it has a good atmosphere. Outsourcing versus in-house decisions

Outsourcing means paying another company to look after an area or department of a business. Tesco pay another company to look after their I.C.T systems. This is effective as it means Tesco’s staff don’t have to worry about the IC.T systems and they can get on with their own work and this reduces pressure and ensures they are purely focused on raising customer satisfaction levels. Physical Resources

The second resource that I am going to examine is Physical resources. Physical resources are resources that the business needs to carry out its activities successfully. These are resources that you can physically touch. E.g. buildings, machinery and vehicles. Buildings and Facilities

Tesco have a premises from where they run. Tesco sell products and services from their premises so their premises need to be easily accessed by their customers. Tesco stores needs to be kept clean and up to date in order to give a professional image to customers. This is effective for Tesco as customers are more likely to go and shop in Tesco if it is up to date and this will increase sales and profit. Materials and Waste

To keep costs low Tesco will be careful about how much material they use and they will try to reduce wastage. Tesco increased their recycling waste so that they don’t have to send as much wastage to landfill as this costs a lot of money. This is effective and beneficial for Tesco as it saves them money and appeals to the environmentally friendly customers. This will bring Tesco more customers and business. Plant and Machinery

Tesco have specific requirements for plant and machinery. They lease items of equipment that are needed. Tesco lease their delivery vans. This is effective as it is too expensive to buy their delivery vans outright and if any of the vans break down, the repairs are paid for. If Tesco owned them then they would have to pay for repairs and they would lose out on a lot of money. ICT equipment

Tesco need equipment to run efficiently and smoothly. Tesco couldn’t function properly if it didn’t have tills as the staff couldn’t serve the customers. Tills are important as it means the customers will all be served, profits will go up as customers receive a good customer experience. As a result they will keep shopping at Tesco and sales will increase. Planned Maintenance and Refurbishment

All Tesco buildings and machinery require regular maintenance and updating. Tesco supermarkets need to keep their stores looking fresh by refurbishing them. Tesco regularly check that their tills are operating properly and their computers are up to date. This is effective for Tesco because it ensures that their tills are working so that they don’t lose out on potential sales. Emergency Provision

The Health and Safety at Work Act requires businesses to draw up policies that tell staff what to do in case of an emergency. For instance, Tesco completes regular risk assessments in the workplace. This is effective as all Tesco employees and customers are kept safe and this reduces accidents and also gives the business a safe and good image. Insurance

Tesco need to make sure that their buildings are insured. Tesco pay a fee each month in order to protect themselves from events such as floods and fires. This means that if there was a fire the insurance would pay for the damage. This is effective as Tesco is protected and will not be caught out by unexpected costs and will not waste money. Security

Tesco need to make sure that all their buildings are secure and looked after. For instance, Tesco have installed CCTV systems in order to make sure that their business is safe. This is effective as it prevents loss in the company and keeps the staff and customers feeling safe. Technological Resources

The last resource which I am going to analyse is Technological resources. Technological resources are more than just computers. Computers would be considered physical resources. Technological resources are intellectual property, accumulated experience and skills, software licenses and protection via patents and copyright. Intellectual property

This allows Tesco to own their own ideas and have rights concerning what happens to these ideas including how often they are used, what they are associated with and if they have permission to be copied. An example of this would be Tesco’s logo and slogan. They own their logo and slogan and this means other businesses cannot use their logo and slogan. This is effective for Tesco as it makes Tesco’s brand more recognisable and customers can associate and identify with the brand and continue to shop there. Accumulated Experience and Skills

Accumulated experience and skills means that an employee has been in a job at Tesco for a long time and knows their role inside and out and they have overcome many different problems in the business. An example of this would be that Tesco exceeded their target of retaining 80% of staff with more than a years’ experience. This is effective for Tesco as employees who make a lot of mistakes will cost Tesco money, so an experienced worker won’t make those mistakes and will therefore save Tesco money. Software Licences

Tesco use software on a daily basis, whether that be Outlook to send emails or Word to type up reports. Some businesses will get specially designed software to help them manage aspects of their business. In order to run the software the business will have to purchase licenses and if they don’t do this, they are breaking the law and can be fined. An example of this would be Tesco has licenses for Microsoft Office so that Tesco can type up reports. This is effective as Tesco’s employees can do their job properly. Protection via patents and copyrights

Protection via patents and copyright means Tesco can own an idea so that no other business can use it to make money. An example of this would be, – Tesco’s slogan and logo. Tesco have their slogan and logo patented and copyrighted to protect themselves. This means that another business can’t steal Tesco’s slogan or logo. This is effective as customers are able to identify with Tesco’s and it will build up brand loyalty. This assignment was based on the Human, Physical and Technological resources which Tesco use to make their business successful and effective. This assignment was analysing Tesco’s resources which make their business successful and effective.

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