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In other words, management is the process of coordinating the resources of an organization
to achieve the primary organizational goals.
MAIN RESOURCES
Managers are concerned with the following main resources:
Material Human Financial Informatio- Organizational
resources resources resources nal resources goals
1 2 3 4
1. Material resources are physical materials and the equipment used by an
organization to make a product. For example, cars are made on assembly lines.
These assembly lines and the buildings that house them are material resources.
2. The most important resources of any organization are its human resources – people.
Some firms believe that their employees are their most important assets. To keep
employees content, a variety of incentives are used, including higher-than-average
pay, flexible working hours, recreational facilities, lengthy paid vacations, cafeterias
offering inexpensive meals, etc.
3. Financial resources are the funds the organization uses to meet its obligations to
various creditors. A grocery store obtains money from customers and uses a portion
of that money to pay the wholesalers from which it buys food. A large bank borrows
and lends money. A college obtains money in the form of tuition, income from its
endowments, and federal grants. It uses the money to pay utility bills, insurance
premiums, and professors’ salaries. Each of these transactions involves financial
resources.
4. Finally, many organizations increasingly find they cannot ignore information.
External environment – including the economy, consumer markets, technology,
politics, and cultural forces – are all changing so rapidly that an organization that
