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Corporations need to manage their resources adequately. There is no room for organizational success. Corporations invest heavily on ways to improve utilization of their resources. Proper workable resources can help the corporation to have smooth functioning of its day-to -day activities. Hence, corporations ought to be resourceful all the time. Corporations can face competition with large and tiny competitors. Resourceful organizations always seem to win in any competitive scenario. However, large corporations may not compete only through price war but they also have to compete through feature distinctiveness. Better utilization of organizational resources will help nudge competition out of the market. In addition, corporations try to develop their core competencies by utilizing their resources in a better manner. Importance of information cannot be denied. Information keeps management alive all the time and without this organizational resources will not be in a condition to enable the corporation to compete in the external market. Work in process stays in operations only when resources are available. Solely information isn't as useful in fostering corporation image in the marketplace. Corporations try to make the flow of information so much easier, and exchangeable among departments. Efficient flow of information helps in the optimal flow of resources. Therefore, software implementations have been adopted for making organizational information reliable. Timely solutions and information is very essential in large organizations. This paper will try to emphasize the importance of organizational resources and information. Eventually, both terminologies walk alongside as they are used together by corporations. With the help of information, it becomes much easier for the management to arrange for better use of resources in the corporation (Itchell-Jackson, Jennifer. 2001).
Managerial decision issues:
Corporation management has to make decisions on the basis of research and provided guidance. It needs to be well informed regarding current and future availability of resources. Hence, resource selection can be finalized on the basis of information availability. In addition to it, in depth comparison of resource suitability would give better solutions. Information regarding execution, installation, and operations is quite essential. It is very important to know, how often and when resources become unavailable. With passing time, it is becoming very essential to conduct risk analysis of resources. All this is possible with the help of information. Organizations spend heavily on the formulation of budgeting procedures, resource allocations mechanism, resource mobilization, and information management. Large corporations emphasize on the development of information technology department. Information is a treasure for corporations because they can plan on the basis of significant information. As far as prediction of resource availability is concerned, resource availability depends upon numerous factors. Managers need to keep record of resource allocations. Therefore, they often need modernized entity resource planners. It is very difficult to manage organizational resources in a better way without keeping their long tenured details. Corporations need to build up a strong design of predictors. They also have to decide on alternative predictors as well, that can back mainstream predictors. Accuracy of prediction should be measured as well. Through information management, it can be possible to have complete knowledge about futurist incidents. Corporation management has to vigilantly analyze staffing issues. Thus, they are required to take necessary actions to foster an equilibrium level between staffing and organizational resources. Corporations are getting more technologically equipped, and they are spend huge amounts to make their procedures modernized and quick. Prediction accuracy is entirely dependent upon time durations. Hence, prediction needs to be evaluated on the basis of duration that is needed to complete the following transaction. (Itchell-Jackson, Jennifer. 2001)
Economic theory and concepts
Firstly, corporations have to understand their need for resources. They should be aware of their needs, whether they have the need for resources from outside or they have to produce them on their own. Microeconomic factors raise the importance of information availability within corporations. Microeconomics can include, demand and supply mechanism, price elasticity and market equilibrium. Demand and supply mechanism is applicable everywhere and it can be used both inside and outside the organization with the same magnitude. Resources must be utilized on the basis of their demand inside the organization. The corporation needs to see to it that there is no gap between supply and demand. There are many ways to use in-house information for the betterment of demand and supply, such as organizational capacity calculation, efficiency of mechanism, and in-house expertise. The demand should be met by adequate supply. Otherwise shortages and production losses will become a routine matter for corporations. Demand and supply equilibrium should not be set at higher level. This can cause increase expenditures (Farrukh Nadeem, Radu Prodan, and Thomas Fahringer, 2008). In addition, organizations need to compare in-house resource mobilization with the market scenario. Demand and supply mechanism is a largely applicable phenomenon inside the organization whilst understanding about market forces is totally dependent on information reliability. Therefore, many organizations run a market intelligence department in order to meet with market challenges. Cost benefit analysis helps in measuring economic rate of return on projects and policies. In addition cost benefit analysis can also calculate economic feasibility. As far as cost benefit analysis is concerned, organizations often calculate per unit cost of their products. Thereafter, their dedicated management team works on these costs. Eventually, total cost can dramatically decrease. Management can emphasize on ways to boom up benefits, and try to pull down cost structure. The difference between both elements is indeed entitled with organizational profit. All corporations work for maximizing profits and therefore they need to formulate plans as such that can give them lucrative advantage throughout. (Conversation strategy organization (2010)
Complex situations can never be solved without taking the help of quantitative analysis. Quantitative analysis requires employing mathematical models in order to solve critical parts of decision making. Quantitative approaches utilize the information collected and help in computing resource allocations. However, there are two factors that affect performance, controllable inputs and uncontrollable factors. Organizational management may control operational resources, which affect the functioning of the system. Organization may not be able to control environmental factors, not under the control of decision makers. (Katta G. Murty (2010) Understanding about the control variables is essential, and it relies on the values of decision variables. Thus, such models become deterministic models. Many times, professionals use their personal experiences in order to solve critical and complicated problems. Economic principles give life to operational resources to organizations. Herewith, organizations always keep struggling to attain economies of scale. It is that particular level where optimum benefits can be obtained. Hence, the management needs to make all resources available in order to accomplish their desired levels. Managerial economics is very helpful for organizational decision making. Herewith, managerial economics has no more limited span as its fundamental principles can be implemented in all departments. Staff must be given adequate education about organizational position and resources. Task based environment is a better option rather than to stick with time duration spent inside organization phenomena. (Rosner, B., A. Halcrow, and A. Levins. 2001)
Use of resources within corporations
All organizations never show the same needs all the time. However, resource mobilization and resource allocation is largely dependent upon nature of organizations. Manufacturing and service providing corporations don't require the same resources. Hence, both have to consider usability matters while using them. Furthermore, all manufacturing organizations aren't similar to each other. Macro economic factors can be similar for all manufacturing organizations but their micro economic factors will be far different. Health care industry doesn't need the same resources that are required by steel manufacturing industries. Therefore, the principles for flow of information can be similar with each other but information and resources can never be the same. In addition, corporations need huge capital expenditures on resource mobilization. For instance, pharmaceutical corporations need huge mobilization of human resource as they need to market their products in clinics and chemist stores. On other hand, the marketing merchandiser of textile industry will never visit each door of its customer. Marketing principles can be similar, but their implementation varies with respect to the nature of organization. As far as organizational structure is concerned, it is generally the flow of information between the different departments. Large corporations tend to follow hierarchal structure to a large extent. Information flow and mobilization of resources is usually controlled by the higher levels of hierarchy. The basic purpose of hierarchical levels is to sustain highly regulated and formal environment inside the organization (Brent Rood and Michael J. Lewis, 2008).
It is very important that the corporation should not try to manage resources through central system. Each employee must be made responsible for managing organizational resources. However, the management should see to it that organizational information doesn't emit out through unreliable sources as it adopts the root path of employees. Different departments can be made responsible for some specific work of information and resource management. Every individual available for work inside the organization should be given appropriate training regarding organizational resources. Eventually, knowledge sharing norms help management in taking wise decisions. People must feel that the sharing of knowledge is their core responsibility as being a part of the organization. Information regarding machine and equipment is essential for all employees at the floors. Corporation management should make their men well aware with production information, technology information, user groups, and standard quality circles etc. In addition, online telephonic support should be provided to all technical departments for faster exchange of information. Organizational flow charts should be displayed on the walls in order to make the employees understand the organization procedures (Shaw, P., C. Elliott, P. Isaacson, and Elizabeth Murphy. 2003). New experiences and knowledge is indeed an organizational property, therefore management has to design its environment in such a way as to have maximum knowledge inflow from staff. (Daley, D.M. 2002)
Role of information within organization
Management always needs to be aware of the latest information. They have to be in touch with information regarding organizational resources, economic condition of the corporation, economic trends of the industry, competition prevalence analysis, and supply chain. Resource information can be entered into the software systems developed to store corporation information. Hence, this information needs to be utilized by all departments including accounts, audit, marketing and business operations management. Strong liaisons give a competitive edge to the corporations. In addition, hierarchical communication is the key to shaping organizational communication. Information travels within the organization to each communication node. Eventually, information is used for managerial decision making. Adequate information flow helps managers in understanding organizational demand-supply mechanism. It helps the management to formulate realistic plans for the future. Information is therefore quite helpful in planning phases, policies formulation phases, decision making phases and developing communication channels.
Corporations need to modernize their information generation process if they want to stay in the competition. Maximum availability of information is very helpful in constructing different analyses that can include cost benefits analysis, market trends analysis, and micro and macro economic factors, and operations analysis. With the help of information, organization may identify benefits and threats arising from the external environment. In addition, managerial economics works closely with information and resource management to empower managers for better decision making. With help of the quantitative techniques, appropriate resource allocation and timely information flow, the corporations achieve their goals and continue to survive in the market. Every organization must try to work closely to collect information and utilize it for proper resource allocation and utilization. Large corporations need to have a well-developed system for this purpose. If resources are used appropriately, corporations can grow and maximize wealth. It can therefore be concluded that the use on information helps in optimal resource allocation thus fostering the development of the corporation.