WHY ARE RESOURCES IMPORTANT TO AN ORGANISATION?

Resources-organizations assign huge amount of resources. These resources are

allocated downward from top managers. Top managers often own stock which
gives property right over the resource allocation. In most cases top managers
control the resources and hence determine their distribution. Resources can be used
as rewards or punishments, which are additional source of power. Resource also
creates dependence relationship. Lower level participants depend on top managers
for financial and physical resources needed to perform their tasks. Top managers
can exchange resources in the form of bonus, personnel, promotions and physical
facilities for the compliance with the outcomes they desire.

Resources play an important role in the success of an organization. Organization

polices, compensation, culture, benefits and employee relation control the
inspiration level of employees and help in retaining the valuable employees.

Financing resources-control over resources is important source of power in

organization. Money can be converted into other kinds of resources that are needed
by other departments. Money generates dependence, departments that provide
financial resources have something other departments want.

Once an organization emerges, analysis of social process within it must consider

more than just the damage individual has brought to it. The resources, they and
other organizations can contribute and constraint their actions. Although pain and
resources are still important, they are now expressed and with an organizational
context. Resources are the key to success for an organization. The level of
resources required by an organization depends largely on the range and quality of
services provided in the organization.
HOW CAN THE ENVIRONMENT AFFECT AN ORGANISATION’S SURVIVAL?
The environment can easily affect on the organization and operation of a business.
Management must give careful attention to all aspects of the environment. Rapid
changes will occur within the society environment which organizations operate.
The five principles effect the organization’s survivals are:

- Employer / employee rights

- Work and family relations

- Education/training/retraing

- Productivity and competitiveness

- changing demographics

To update quality and increase productivity, many organizations have begun to

rethink their approaches to resource management. The failure of management in
many organizations to expect effectively with changes is one of the principles.
WHAT IS THE DIFFERENCE BETWEEN ORGANISATION’S INTERNAL AND
EXTERNAL ENVIRONMENT?

The internal environment includes issues like, things, situations, or events that
occur within the organization and are basically under the control of the
organization, and effect the organization in either a positive or negative way.

External environments are aspects that your organization can't control, such as
government, customers, laws, economic shifts, etc. The internal environment can
be controlled, which can be employees, strategy management, profits, real estate,
etc.

WHY IS EACH IMPORTANT?

The external analysis need not be exhaustive or incredibly time-consuming.

Rather, it is meant to highlight for the planning team how potential changes in the
external environment will impact what they do; for whom they do it; and how they
will recruit, retain, and develop the workforce they need. Once a sound external
analysis is conducted, it can be reviewed and updated as part of the planning cycle
to identify any significant changes in the environment.

The internal analysis should focus on factors such as workforce trends, efficiency
of HR transactions, organizational structure, organizational
culture, employee morale, and current levels of performance. Workforce trends
include items such as retirement risk in key leadership or technical positions, the
level of succession planning, the age distribution of the workforce, recruitment and
retention statistics, and the proportion of positions filled by internal candidates.
Another important trend to monitor is the amount of compensated and
uncompensated overtime. Doing more with less often means that those who are left
work more and not smarter. Increases in overtime that are not planned as part of an
emergency response system or that cannot be directly related to a specific
unexpected crisis may signal the need for more staff, IT improvements, or business
process redesign.

The most important constraint that manager have to plan manage the day-to-day
basis. Managers should use systematic procedure to make decisions whenever
possible. When managers have deep rational decision making process it can help
them make better decisions even when there is a lack of information.