Resource Management = Trying to use resources in t
- Businesses use lots of different resources. Raw materials count as resources and so do machinery and staff. Firms should try to use resources as efficiently as possible - this is called optimising the use of resources.
- Obviously, it makes financial sense to avoid wasting resources. Not using what you've paid for really wrecks those precious cost-per-unit ratios. Wasting resources also has social and opportunity costs.
- It makes long-term sense to use resources sustainably. Completely running out of a resource would be bad news. Also, as resources run low, their price rises (due to the link between supply and price), increasing costs.
- A business can find out if it's using resources sustainably by doing a green audit (sometimes called an environmental audit).
- Green audits assess whether the firm is meeting legal requirements for environmental protection, and whether it's meeting its own green targets for things like carbon dioxide emissions, amount of cardboard recyled, amount of waste discharged into waterways, etc. You can do a green audit for the whole business or for a particular product or department.
- Making the most of capital and human resources doesn't just mean running machines 24/7 and trying to force workers to be more productive. Machines tend to last longer if they're switched off occassionally, kept clean and regularly serviced. Getting the best from employees might mean taking steps to increase motivation or making work a nice place to be in order to reduce labour turnover.
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