Secure a continuing supply of resources

Running Head: ORGANIZATIONAL RESOURCES Securing a continuing supply of resources Name: University: Tutor: Course: Date: Organizational Resources Different kinds of resources are employed by organizations so that they may be capable of attaining their goals. Some of the major resources employed by organizations include human resources and physical resources as well as information resources and financial resources. These resources are very much interrelated. For example, if an organization has strong financial resources, it then capable of acquiring better physical resources and competent manpower and thus the achievement of its goals quite easier (Stankard, 2002). To achieve organizational goals, managers are entitled to managing and making sure that all these resources are available. In any organization, human resources refer to all the employees or rather the workforce of that particular organization. Human resources ensure that the organization`s activities run smoothly. Human resources are people and thus their abilities and general performance greatly impact on the achievement of the goals set by the organization. Human resources ensure proper strategies are set and good policies and systems as well as standards and processes are developed. The human resources greatly determine the effectiveness of any given organization (Poole, & Van De Ven, 2004). For any organization to be effective people should be assigned to tasks according to their profession. Conducive environment should be availed so as to capable of meeting all the deadlines as per the goals set by the organization. Human resources should be managed with a lot of care as it is the backbone of any organization. Physical resources include tangible materials such as buildings and machinery. Plants and products also fall under this category. Organizations can very much utilize physical resources in the creation of competitive advantage. For instance, the Caterpillar Company, which is a leading company for manufacturing earth moving machines, has greatly utilized physical resources in the development of competitive advantage. This company invested greatly on physical resources by expanding its factories and building new factories to replace the old ones. They also invested in more efficient machines (Stankard, 2002). This measure resulted to higher production rate and hence higher profits. Physical resources such as machinery and plants cannot serve long as sources of competitive advantage due the fact that they are subject to imitation. It thus important for companies to be very much innovative when it comes to machinery so that if any of their products are imitated, they can always come up with new products which are better as compared to the old ones. Competitive advantage also results from locations. For in stance, by clustering related organizations or rather companies in one place, it becomes possible for the organization to fully utilize the available resources in that location effectively. Clustering leads to demand advantages. This is because many consumers are usually attracted to areas where they are able to choose from a wide variety of products. Hotels and restaurants tend to be clustered in a particular location. The same case applies to the manufacturing industries. Locations are also subject to imitation but this does not often happen (Cloke, & Goldsmith, 2002). Strong financial resources are very vital for a company to succeed in achieving its goals. Organizations require funding so as to be capable of starting its operations. Funds are also required to ensure continued business operations in any organization. Incase there occurs a need to expand the operations of the company, financial resources are very much relied upon. Competitors are purchased using the financial resources of the company. Some of the sources of financial resources for companies include banks and equity investors. These two sources are regarded as traditional funding sources. Companies may also rely on government grants as well as venture capital funds as their sources of financial resources. Companies must provide information concerning their finances and operations to banks so that the banks or any other lenders may be able to end them money (Poole, & Van De Ven, 2004). Small or new companies usually face difficulties in securing funding from banks since their business history is not well known. Well established companies can easily acquire their financial resources from venture capitalists. Venture capitalists can be described as private investors who are usually in groups. Their activities entail investing very large amount of money in to business. These big companies may also acquire financial resources through negotiating with equity investors they may buy products in large amounts from the company. Individual investors are also involved in buying large stocks so as to enhance the financial resources of companies. It is of great importance for companies to carefully consider the conditions given by each funding source before getting involved with these lending institutions. For instance, it is a requirement for the banks as well as other traditional lenders for companies to immediately start their payment process as soon as they receive the money. This usually affects the companies adversely as cash flow is usually negative. Equity investors have the requirement that the companies should always have steady periods of income growth. Once these terms and conditions are not met, the lenders may end up selling the company`s investments and thus lower the wealth of the company (Cloke, & Goldsmith, 2002). If a company is managed well the external financial resources can in great way benefit the company. This is because the company is capable of having ready cash for the normal company operations. In some instances, companies are able to negotiate with the lenders to reduce the negative cash flows and thus the company can easily be expanded. Equity financing can be procured through internal financial resources. This implies that the various financial resources available within the company are used. The internal financial resources are usually acquired through various business activities in the company. The business performance of a given organization usually affects the internal financial resources of that organization. If the business performance is good, then it means that the company will have more financial resources at hand. Internal financial resources are very essential for a company because at times, the conditions given by lenders are quite challenging to adhere to. If the company is not willing to adhere to the terms and conditions regarding equity financing, the internal financial resources may be utilized so as to achieve the organization`s goals (Cloke, & Goldsmith, 2002). Internal financial resources are widely used for expanding the operations of an organization. Communication resources in a company are very important. Efficient and effective communication in business ensures increased profits in a business. Effective communication results to work of high quality and the employees are usually motivated. All these factors amount to higher returns for the company. Through proper communication in an organization, the employees have the feeling that they are part and parcel of the organization. They are always updated with all what is going on in the organization and they are also involved in decision making of the organization (Stankard, 2002). The improvement of communication in any company can only be achieved by proper utilization of the available communication resources. The many available business communication resources are very useful to the professionals as they help them stay on top of the current trends. These resources also help the employees to improve greatly on communication skills. In modern organizations, communication flows through several channels. To enhance proper communication, electronic media is widely used by companies. Electronic mail is the most common mode of communication used in organizations. Company websites are also widely used. Organizations should be having the capacity to secure all the resources they require from their own environments. Even though some of these resources have proved to too costly to attain, the leaders of organizations should have well laid strategies aimed at availing al the required resources to the organization. In an organization, human resources may be achieved through numerous training programs for the...