1. Know how human resources are managed
P1- Describe the recruitment documentation used in a selected organisation
P2- Describe the main employability, personal and communication skills required when applying for a specific job role
2. Know the purpose of managing physical and technological resources
P3- Describe the main physical and technological resources required in the operation of a selected organisation
3. Know how to access sources of finance
P4- Describe sources of internal and external finance for a selected business
4. Be able to interpret financial statements
P5- Interpret the contents of a trading and profit and loss account and balance sheet for a selected company
P6- Illustrate the use of budgets as a means of exercising financial control of a selected company
P7- Illustrate the financial state of a given business
Business resources comprise of financial, human, physical that contribute towards a high success in business. While starting of business, a proper set up is highly required for a long run. In this given assignment, the company of DENSO Manufacturing UK Ltd has its business expansion (Anon, 2017). All the five resources are very important while carrying out the business. In the financial resources is an important factor while starting up of business. This resources can be acquired from various sources such as loans from bank etc. Human resources help for the proper success of the company by their staff’s ability and skills. So all the five resources are very essential to give success for a long period of time.
Assignment 1: Task 1
1) Description of documentation used in organization and different skills for the chosen job role (P1, p2)
(P1) Selection of the staff is important criteria while recruiting for the manufacturing company. There must be certain criteria based on the employee depending on their merits and knowledge. As being, the bigger company holds a proper document for the recruitment drive for the employee point of view.
The recruitment is based on the particular job given to the employee. DENSO Manufacturing UK Ltd is currently recruiting for the post of production in charge for the vehicles. The company uses the document such as mock test, group discussion round, technical skills, communication skills and the human resource round. This all round will help the company to judge the employee properly for the required position. Moreover, management of the company plays a vital role in the technical and physical resources (Gaceri, 2015. The interview held by the management must be made by the panel (Olcott and Oliver, 2014). The different process will help the proper short listing of the right candidate for the production of the company. Documents of recruitment panel set by the organization will help the proper set employee for the required position. As in the mock test round, shows the technical knowledge possessed by the employee. After that group discussion round, the proper communication skills are seen properly of the staff. Therefore, a proper recruitment position is highly required for the company aspects.
(P2) The criteria must belong proper benefits while managing human resources. Moreover, the employee must possess a proper communication and the personal skills. (M2) In this job, the company needs the employee having a proper technical skills and merits. Moreover, the employee can able to get a huge production at a minimum cost. As while recruiting in this position, an employee must be enough capable for operating of machines properly and can be able to dissolve any problem rising from the machines (Hashim et al. 2016). In the recruitment drive, the staff must possess a proper communication, technical skills for the better working of the organization. In order of high production, the organisations mainly focus on the production. The organization tries to recruit the employee as per the criteria mentioned in the given job description. There are certain employability skills such as
Proper working in a team
Interpersonal skills and communication, it can applicable for both verbally and writing.
Employee self-motivation towards the given job performed by employee will help the organization.
Managing of time
The employee must possess high learning skills ability.
The company tries to recruit the employee based on their personal and the communication skills. On this basis, the organizations can judge the employee depending upon the employability skills. As at the time of recruitment many employee visits for the interview. The management gets the proper personal and the communication skills will help the right person for the right position of the company. This enhances the employer to recruit the proper position as per the condition required by the company.
Assignment 2: Task 2
Describing physical and technological resources required for business operation (P3)
The physical and technological resources are the vital part while operating the business efficiently. It includes with the facility that the organization imparts. The physical resources include with the infrastructure, machinery and the other equipment required building up the organization. Physical resources also includes with the investment of capital other than loans of the bank. This is the primary things, which must consider by the management of the organization while performing the business effectively (Kulkarni and Dabade, 2013). In the physical resources, the location is a prime factor and it can be the on the industrial belt or can be urban and rural areas. In order to keep in mind the pollution factors that cause a problem in the environment. This location will help the organization to be connected with the other countries by an easy access of transportation, railways etc (Phillips and Pittman, 2014). While proper building up of company, the management must look into these infrastructures to sustain for a long period. Moreover, the organization must grow up the plant based on the machinery and the equipments (Zhang and Kochhar, 2014). As the company DENSO Manufacturing UK Ltd is a vehicle manufacturing company, which needs a proper machinery and equipments such as ICT.
The technological resources includes with the main seven resources for proper creation of the product. These resources include the energy, citizen, data, machinery, finance, materials and time. While running of the technology resources use the energy for change of the products depending upon of necessity of customers (Siemieniuch and Sinclair, 2014). Citizens or the employee are main pillar of the organization, without their contribution it would be zero while production of products. Data will help the company to build up the proper design and manufacturing of the vehicles. Machinery tools and parts will help for the proper finishing of the of products. Finance will help the organization for the proper working, as it requires of buying of machinery and the salary of employee. Materials include all the raw products that are used for the manufacturing of vehicles. This physical and the technological resources are useful for proper performance of the organization and help to sustain for a long period of time.
Assignment 3: Task 3
a. Internal and external sources of finance (P4)
While the proper operation of business, finance is an important part. The proper setup of business is only made by the capital. It may include assets such as infrastructure that can help to sustain over a long period. A proper running of the organizations that is Denso Manufacturing UK Ltd , that needs a daily costing to the labor such as wages. Moreover, this finance will help the management to think broadly and can invest the finance on the innovative technology. So that it can help the company to give a high rate of manufacturing of vehicle at a minimum time (Lusser, 2014). The finance can include both internal and external depending upon the business. Internal finance of the sources includes the sources that provide capital internally. External finance of sources includes with the external link such as banks.
Internal finance source will include with the partners or the friends of the higher authority. Moreover, it will help to decrease the burden, when the company runs out of capital. The organization gets other than the external source of finance from this extra benefit.
External source of finance is available mostly of all the organizations. While the internal source of finance fails then the external sources will help the proper growth of the business. It includes with the capital from the share of finance and loan of the capital, which is made by the bank and other organization (Slowak and Regenfelder, 2016). This source is credited by the loans from the banks depending upon the data. This finance will help for the proper controlling of the budget. Finance from the loan is given by the bank by providing a loan and is set for a period. Finance from the share is made by other limited organization. In this situation, there is a risk while the business collapses at a certain point (Meyer et al 2013). It helps the business for proper growth in the production.
There are certain advantages and disadvantage of financial resources especially internal finance. In this internal finance sources includes the profit that comes back after the investment.
b. Application of financial statement (P5)
While balance sheet is made of the company, it includes the fixed assets, tangible fixed assets, non-current financial assets. When the asset increases then it is good for the organization as compared by the balance sheet of Company DENSO Manufacturing UK Ltd. As the net fixed asset decrease in the year of 2012 that is 5,428,262-4,819,938= 608324. Intangible fixed assets increased in the year of 2012.While the company liabilities and equity helps to increase the debts. As in the equity decrease, the company finance also falls down.
The company profit and loss is an vital part of the organization balance sheet. When the selling of the vehicles increase then automatically increases the company's growth rate . As from 2012 to 2013, the sales of goods increased that is 827454-528534= 298920. Therefore, when the operating profit and loss increase then it is good for the company’s growth.
Hence, for the company growth yearly a proper balance sheet will help to get the sales of good, gross margin, benefit, operating rate for profit and loss.
Illustration on use of budgets as means of exercising financial control (P6)
Selling price = £20
Variable cost = £9
Contribution = £20 - £9 = £11
Breakeven Point (Unit) = Fixed Cost / Contribution = £5600/£11 = 509.9 units
Break even sales = £509.9*£20 = £10181
a) When the production of the company ranges from 0 to 500, then the company suffers a huge loss from £ 5600 to £ 100. The breakeven point of the company lies at 500 units. So, if the company produces less than 500 units, it proves to be a great threat for the company. Thus, the company needs to produce units more than 500 units in order to maintain profit in the business. The more is the level of production undertaken by the company, the more shall be the gain received by the company. Therefore, it can be well said that the breakeven point of the company lies at 500 units.
b) The company needs to follow different steps or remedies in order to avoid the loss suffered in the organization. The various remedies to be undertaken by the company are-
D. financial state of the company (P7)
Gross Profit Margin: Gross profit / Revenue * 1006.825.81
Net profit Margin = Net Profit / Revenue * 100 3.08 15.70
Current Ratio = Current Asset / Current Liability =.631.13
Debt to Equity = Total debt / Total equity =36.762.98
Business resource has helped the organization proper achieving of the set goals. DENSO Manufacturing UK Ltd will certainly increase the human resources for selection of right employee suitable on their ability of communication. The physical and technological resources will help for the proper resources in developing of business. The internal and external sources of business will again help the proper growth of business in the organizations. This will calculate for the proper controlling of budget of the organization. These factors help the company for better growth in the business planning and to sustain for a long period of time.