Evaluate how managing resources and controlling budget costs can improve the performance of a business
Unit 2 D1
It is very important for Dominos to manage their resources and control their budgets as the business is very large and has a number of chains in the UK. They also have a very good reputation and are also a highly profitable business. They need to keep track as on their financial progress and situation. As well as this keeping organized and in a formal structure allows the company to run smoothly and without major problems.
There are four main types of resources that need to be managed; physical resources, human resources, technological resources, and financial resources.
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This will result in more customers being happy with their food and so the business will sell more products.
A problem with managing physical resources is that it may take extra money and time and money to train employees in the correct methods for the cleaning and maintenance procedures. As well as the cost, some employees may lose morale as they might feel that they are getting singled out and picked on. Even though it may cost a bit more with the extra training, it is defiantly worth managing the physical resources in Dominos as the equipment is very expensive and they cannot afford to constantly replace faulty or broken equipment.
The management of human resources is the management of the employees. Dominos is heavily reliant on its human resources to keep profit coming into the business, and so it is essential for them to manage human resources, as employee performance directly affects the performance of Dominos. Dominos can manage their human resources through training and regular appraisals. By doing these Dominos will improve the development and effectiveness of the employees, which will improve the business performance. If it is not properly managed then some employees may lose track of the correct procedures and pick up bad habits, for example not completing the pizza to the correct and official standard. this would them be wasting Dominos money as they would be paying the staff to damage the company’s reputation and push away customers.
The problems with managing human resources can be that it becomes costly to train employees, as well as the employees may lose motivation if someone is telling them that they are doing their job wrong and they think they are doing it right. By trying to pull customers to the business, Dominos might be pushing the staff away be decreasing their productivity which would lead to a negative customer service, and the loss of customers again. Even with these problems, it is still better to manage this, but the right care and approach is needed, for example be kind and understanding in appraisals while getting the managers and superiors to keep the motivation of the staff up.
There are not many technological resources in Dominos, but nevertheless they still need to be managed to keep the business running. Dominos could still operate without them, but they make life easier and more comfortable for both the staff and the employees, as technological resources include resources such as air con and television. The air con makes the staff more relaxed and comfortable while working in a hot kitchen, and so this increases their morale and motivation, which increases the performance of the business. if the air con breaks down, it wouldn’t be the responsibility of the staff to fix this as specialist knowledge is needed, however it would be their responsibility to alert maintenance so that it could get fixed. The till is also a technological resource and it requires training to be able to use it effectively. This may...