2

E R
ST
C L U
C E
E L 3
L A S
L EV P C E
T I NG K
R U R
N
C OU O O
AC W ES
R
By Charleen Jackson
 OBJECTIVES
At the end of the lesson trainees will be able to:

• List and describe at least 3 types of work resources

• Distinguish the terms work resource and factors of production
• Identify 3 roles of money
• Describe financial expressions of resources: Budget, Revenue, Recurrent
Expenditure, Capital Expenditure
• List the steps a budget cycle in the correct order
• Construct a mind map of work resources
• Determine if resources are being utilized for planned output.
• Recognize that resources are limited, has a value and should be used
conscientiously.
• Apply ethical principles in the usage of work resources
WHAT ARE WORKPLACE RESOURCES?

Video Presentation

https://www.youtube.com/watch?v=BJX2JmyT628
 
Factors of Production/Resources
KEY TERMS
Factors of Production
An economic term to
describe the inputs that are
used in the production of
goods or services in the
attempt to make an
economic profit.
The factors of production
include land, labour,
capital and
entrepreneurship.
Resources
a stock or supply of
money, materials,
staff, and other assets
that can be drawn on
by a person or
organization in order
to function
effectively
KEY TERMS
Land/Raw Material
A material or substance used
in the primary production or
manufacturing of a good.
Raw materials are often
natural resources such as oil,
iron and wood.
Before being used in the
manufacturing process raw
materials often are altered to
be used in different processes.
Capital
“Capital” can mean many things. Its
specific definition depends on the
context in which it is used. In general,
it refers to financial resources
available for use. Companies and
societies with more capital are better
off than those with less capital.
The factories, machinery and
equipment owned by a business and
used in production.
Financial assets or the financial value
of assets, such as cash
KEY TERMS
Labour/Human Resource Entrepreneurship
The resources that resides in
the knowledge, skills and
motivation of people.
The capacity and
Under the right condition it willingness
improves with age and to develop organize
experience
and manage a
considered the most crucial business venture
productive resource that along with any of
creates the largest and longest
lasting advantage  for an its risks in order to
organization make a profit
ROLE OF MONEY

Video Presentation
https://
www.youtube.com/watch?v=Dugn
51K_6WA

Money and Economics

What did you get

from the video?
 ROLE OF MONEY?

1. Medium of Exchange
an intermediary used in trade to
avoid the inconveniences of a pure
barter system

2. Store of Value
function of an asset that can be
saved, retrieved and exchanged at a
later time
be predictably useful when retrieved

3. Unit of Account
a nominal monetary unit of
measure or currency used to
value/cost goods, services, assets,
liabilities, income, expenses
FINANCIAL EXPRESSIONS

Historical
Budget Actual
Data

Recurrent
Revenue Capital
Expenses
FINANCIAL EXPRESSIONS

Statement of Financial Position

 'Balance Sheet' A financial statement that summarizes a company's assets,
liabilities and shareholders' equity at a specific point in time. 

Income Statement
 A financial statement that measures a company's financial performance over a
specific accounting period.

Cash Flow Statement

 shows how changes in balance sheet accounts and income affect cash and cash
equivalents, and breaks the analysis down to operating, investing and financing
activities.
 FINANCIAL EXPRESSION
HistoricalData
Historical Data
Past information on
Past information on
financial performance
financial performance

Budget
Budget
an
an estimate
estimate of
of income
income
and
and expenditure
expenditure for
for aa
set
set period
period of
of time
time
Actual Financials
Expression of current
performance
 FINANCIAL EXPRESSION

Revenue
Revenue
The amount of money Recurrent
Recurrent Expenditure
Expenditure
The amount of money
the business earns All
All payments
payments other
other
the business earns
within a financial than
than for
for capital
capital assets,
assets,
within a financial
period including
including onon goods
goods
period Capital Expenditure
Revenue is calculated and
and services,
services, (wages
(wages
Revenue is calculated payments for acquisition
by multiplying the and
and salaries,
salaries, employer
employer
by multiplying the of fixed capital assets,
price at which goods contributions),
contributions), interest
interest
price at which goods stock, land or intangible
or services are sold by payments,
payments, subsidies
subsidies
or services are sold by assets
the number of units or and
and transfers.
transfers.
the number of units or
amount sold
amount sold
 HOW TO MANAGE WORK RESOURCES?

1. Definition:
Monitor and
The resources that is required to
meet output Control

2. Availability
Required items are obtainable

3. Control
Ensuring that the items are
readily accessible at the time
they are needed.
WHAT IS THE STATUS YOUR RESOURCES?

• Storage
• Are the items fixed? Do they need to be in a controlled area?

• Access
• Who is authorized to use the resource? How to get
authorization?

• Obsolesce/Impairment
• Is the item still useful? Is it efficient? Can it be used for a
secondary purpose?
• Is the item safe for use?
WHAT ARE SOME ETHICAL
CONSIDERATION FOR USE
OF COMPANY
RESOURCES?
 Next Lesson
Achieving Organizational
Objectives