Resources Role for the Growth of a Company-Free-Sample for Students

Question: Describe the role of resources for the growth of a company. How can you protect them and remain competitive? Discuss the management of human and intellectual resources in growing firms. How can formal and informal practices can be balanced? What are the difficulties in becoming more formalized over time? What is the role of finance for growth? Make sure to critically discuss the role of intellectual property and human management practices. Answer: Introduction Every organization has its own identity and to do that, the organization has to decide a market or population segment it will be targeting for creating an identification. The vision, mission and values set up its identity and depending upon the seven components, the growth of the organization depends (Churchill Mullins, 2001). These components are the vision and mission, financial administration, strategic plan, fund raising plan, annual operational plan, board development plan and staff development and organizational culture. This assignment will be discussing some of the aspects for growth of an organization and will discuss the role of intellectual property and human management practices. The role of resources for the growth of a company Growth of any organization depends upon the resources it has, as every single resource is important for the overall development of the company. The resource can be human resource, financial resource, skill resource and ideological resource. Personal and professional employee development is crucial for any companys growth and development. According to Patil and Tetlock (2014), three resources are important for the growth and development of an organization such as access to the market, supply of human capital and access to funding. Google Inc. has implemented strategies to utilize its human resources, which has become beneficiary for the organization. Further, another company that has utilized its technological resources to impress its customers and earn revenues is Amazon. It has utilized its every resource to become the number one online retail company in the world (Smithson, 2017). The company also takes care of their employees in every aspect and hereby this resource is helping the m to achieve the ultimate success. Access to finding is also important for the growth as it provides the raw material using, which, an organization can increase its production. Access to market is necessary as encouragement from local population can help the organization to experiment with their product (Kitching Marlow, 2013). Protecting resources and remain competitive Protecting resources for the growth and development of the company is important as increasing competition in the market and internal stressful situation can lead the company loss its resources. According to Barringer Ireland (2016), Human resources is the biggest asset of an organization and if due to some internal and external factor, the company lost its employees, then its harmful for the growth, development and market reputation of the company. Hence, protecting resources are very crucial for any organization. The company should take necessary steps to engage the employees in the workflow of the organization and provide them with benefits. Another way to protect the resources from external or internal damages is by increasing the revenue of the company. This will help the employees to engage with the organization and perform their task with perfection. However, increased revenue can only be possible if the organization compete with other companies in the market. The company shou ld understand the need of the market and operate accordingly in the growth and development (Churchill Mullins, 2001). The journey of Indian company Bajaj can be taken for example, after Honda came to the country with its developed bikes, cars and scooters, the automobiles of Bajaj become less popular. However, the company decided to keep its resources safe and did not team up with Honda. Further, they invested their time is research and development and in 1999, acquired the 77 percent of Indian scooter market. The management of human and intellectual resources in growing firms Intellectual resources are defined as the non-financial fixed resources that are being used as an asset and did not have any physical substance. These resources are identified and controlled by the organizational entity. Human resources as well, are intangible resources, which can lead the organization to achieve ultimate success. The workforce, skill set, depth of expertize and width of experience are crucial for any organization. Hence, every organization uses different techniques and strategies to save and protect its human resource (Kitching Marlow, 2013). Management of human and intellectual capital is divided in five steps. Any organization has to follow these five steps prior to strategize about the resource management plan. These steps are identification of the intellectual capital, mapping the key value elements, measuring the intellectual capital, managing the intellectual capital and reporting intellectual capital. For the identification of human resources, the organizati on will be assessing its relational capital, structural capital, physical capital and financial capital, as all these are interlinked (Autio Acs, 2010). For example, the journey of HP is the biggest example of intellectual and human resources as keeping their employees at the time of recession led them to new ways to create breakthrough laptops in the world. Formal and informal practices can be balanced Several challenges are present in the project-based organization related to forming and implementing knowledge related management. It promotes sharing, learning and innovation and organization development. There are two organizational structures depending upon the working force, and working flow, the formal work team and informal or casual work team. According to Maresch, Fink Harms (2016), the formal structure and informal structure completes each other, as the informal networking is important for assessment of the market, to know the strategies the other competitors are using. Hence, the informal network should be provided with the equal importance of the formal work force and hence, balancing of formal and informal practices should be balanced. It is the responsibility of the managers of the organizations to balance the informal structure by taking care of the needs and feelings. Creating friendly environment, setting up small departmental objective, which is easy to achieve and creating open interactions can lead to balance the formal and informal practices in an organization (Kitching Marlow 2013). The Uniliver Company is the example of balancing formal and informal practices. This lets them earn more revenues and popularity for their company and products (Fast Company, 2015). The difficulties in becoming more formalized over time Several instances that are present in the recent scenario, where formal organization has increased its revenue and turn over within a shorter period. However, there are examples of those organizations, which have lost its experienced and hardworking employees because of the stressed working environment or rigidness in the workforce. Therefore, it is important for organization to balance the formal and informal process (Ram, 2000). The difficulties related to an informal organization are categorized in four segments such as retention, rigidness, management and communication. Rigidness in the workforce in larger organization is a reason for the loss of employees. There is example of organizations that allows its employees to multitask, as it increases their knowledge about the different workforce of the organization. Communication can be enhanced, if the organization follows informal workflow (Bhide, 1992). Managing employees, who are not able to work in extreme pressure, can become a serious threat to an organization. Hence, balancing organizations formal and informal procedure is necessary. Increasing job autonomy and flexible workplace can increase the excitement of an employee in the workflow, leading to increase in the productivity and profitability in the business. In this way, the employee will be able to devote himself in the work without any pressure and such dedicated employees will be able to achieve the ultimate success for the organization (Mollick, 2012). Google, before implementing the revolutionary change management model in the organization, became so formal that the employees were unable to find out new ideas for research and development. Further, after the change management process in the organization, the revenues of the organization have increased in huge amounts (Fast Company, 2015). The role of finance for growth Apart from the intellectual and human related resources, financial resources are important for any small or bigger organization to reach to its customers and achieve success. The flow of financial funds is from the organizations an excess flow of fund to the organizations who have less flow of fund. Therefore, it is important for the organizations to resume the cash flow for the growth and development of the organization. Secondly, the primary reason due to which the employees devote their hard work and passion at work is the proper remuneration (Graham Sichelman, 2016). Proper cash flow in the system leads the organization to pay their employees with appropriate salaries and therefore, financial stability of an organization is important for overall growth of its resources. Nike is the best example to portray finance as the major drive for growth and development as the organization grown by 14 percent after increasing its stock growth by 21 percent Conclusion Growth and development are necessary events that happens for the benefit of the organization and its employees. This assignment discussed the key factors for the growth and development of the organization and focused on four such topics namely resources, management skills to protect those resources, formal and informal practices and importance of competition. The importance of the resources in the development of any organization was discussed and under that importance of human resources, financial resources, skills and ideological resources were discussed with examples of companies like Amazon and Bajaj. Further protection of resources like human resources or financial resources are of great importance for any company, which want to stay alive in market competition. Later in the assignment, the comparison of formalized and informal practices was presented and the importance of informal practices were discussed. Finance as an important aspect for the growth and development of any orga nization was mentioned as cash flow from bigger to smaller organization helps to create market opportunities and companies can also provide better remuneration and facilities to their employees. Therefore, all these components of growth and development are helpful in achieving market success and every organization should take care of these aspects for their development References Autio, E., Acs, Z. (2010). Intellectual property protection and the formation of entrepreneurial growth aspirations.Strategic Entrepreneurship Journal,4(3), 234-251. Barringer, B.R. Ireland, R.D. (2015). Entrepreneurship: successfully launching new ventures, Global Edition, NJ: Pearson Education 5th edition, pp.424-461. Bhide, A., 1992. Bootstrap Finance: the art of start-ups. Harvard business review, 70(6), pp.109-117. Churchill, N.C. Mullins, J.W., 2001. How fast can your company afford to grow. Harvard Business Review, 79(5), pp.135-142. Fast Company. (2015).Six Companies That Are Redefining Performance Management.Fast Company. Retrieved from https://www.fastcompany.com/3054547/six-companies-that-are-redefining-performance-management Forbes.com. (2015). Forbes. Forbes.com. Retrieved from https://www.forbes.com/sites/greatspeculations/2015/06/29/earnings-review-nike-continues-its-strong-run/#22985e3e5985 Graham, S. J., Sichelman, T. S. (2016). Intellectual Property and Technology Startups: What Entrepreneurs Tell Us. InTechnological Innovation: Generating Economic Results(pp. 163-199). Emerald Group Publishing Limited. Kitching, J. Marlow, S., 2013. HR practice and small firm growth: Balancing informality and Formality. How can HR drive growth, pp.26-40 Maresch, D., Fink, M., Harms, R. (2016). When patents matter: The impact of competition and patent age on the performance contribution of intellectual property rights protection. Technovation, 57, 14-20. Mollick, E., 2012. People and process, suits and innovators: The role of individuals in firm performance. Strategic Management Journal, 33(9), pp.1001-1015. Mollick, E., 2014. The dynamics of crowdfunding: An exploratory study. Journal of business venturing, 29(1), pp.1-16. Patil, S.V. Tetlock, P.E., 2014. Punctuated incongruity: A new approach to managing trade-offs between conformity and deviation. Research in Organizational Behavior, 34, pp.155-171. Ram, M., 2000. Professionals at worktransition in a small service firm. Journal of small business and enterprise development, 7(1), pp.69-77. Smithson. (2017).Amazon.com Inc.s Generic Strategy, Intensive Growth Strategies - Panmore Institute.Panmore Institute. Retrieved from https://panmore.com/amazon-com-inc-generic-strategy-intensive-growth-strategie