Q1: Describe different types of organizational resources and elaborate their significance

in different organizational functions?

Organizational Resources

The organization is where resources come together.

Organizations use different resources to accomplish
goals. The major resources used by organizations are
often described as follow:

(1) Men
(2) Money
(3) Machine
(4) Material

Managers are responsible for acquiring and managing the

resources to accomplish goals.

4 Types of organizational Resources

The 4 M’s – men, money, machine and materials

The 4M’s is a term out of the construction industry and provides a simple but effective way of
looking at any task you need to do.

 Men What people do you need? What skillsets

should they have? How many do you need? How do
they work together?

 Money what’s the budget? How do you raise the

money? What contingency do you have? Purchase
versus hire?

 Machines Trucks, cars, cement mixers, PCs, server

racks, telephones, and so on. What physical
machines/tools do you need to do the job. You can
add in office space, software, etc. here too.

 Materials concrete powder, sand, rebar, pencils,

glue, USB drives, printing paper, diesel, electricity,
stationery, etc. What do you consume to do you
consume to deliver your task?

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Significance of 4 M’s in different organizational functions

Since man became victorious in the industrial

revolution, every business has been using these
four M's: man, materials, machines, money to
operate with, or without, and success. To create
any venture without any one of these M's is simply
embarking on a journey to Erehwon. It is sheer
entrepreneurial harakiri to even attempt to cut
corners. No one should even contemplate doing
that. Failure awaits such business. It will also be
disastrous for organizations not to properly and
effectively organise the M's for business success.
That, in itself is a different kettle of fish. None of
the M's is useless no matter the perspective it is
viewed from. A meta-analysis of organizations that
have survived over time showed that careless
regard to any of the five resulted in economic
fiascos, with some even affecting global business.
When man took time off work to fight two major
wars, there were economic downturns as precious
time was expended to right perceived wrongs.

Man

Man, the first of the Four M's is the most important. The right personnel for the right position is a
sure bet for organizational effectiveness and efficiency. No two ways about that. Thus, lateness
and absenteeism, unsafe acts, alcoholism, poor training, incompetence are just some of the
attributes of man at work that could upturn the apple cart of business ventures. Human
resources determine the workings of the other four basic business resources. People make sure
materials, machines, minutes and money are utilised in a productive manner to achieve goals or
aims and objectives of organizations and enterprises. Poor employment practices are inimical to
the sustenance of such ventures. With the right man in the right job, a large portion of effective
business management will have been achieved. No doubts about that.

Materials

Without materials, human resource is made redundant. Thus every right thinking and right
planning organization knows that materials needed for any business or service mist be in place
before 'man' can be of use in any business activity. Supply chain departments grew out of this
thinking and has been a very useful and effective aspect of business management. A group of
cement factory workers waiting for supply of limestone may have nothing much to do for as long
as the supply does not arrive. Even if it arrives, but in poor quality, the production is certainly
doomed for a loss. Quality compromised is business pauperized. Poor quality of materials
potentially ruins entrepreneurship. This is an indisputable fact.

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Machines

The metal contraptions called machines have made man fulfill almost effortlessly various
dreams of creating things that make a existence more worthwhile. Machines have replaced man
in tilling, planting, and harvesting. Man has been replaced with looms in cotton and fabric
processing. Countless other ventures requiring physical exertions of force has been taken over
by things fixed with gears, bolts and nuts and conveyor belts. Recently, computers joined in the
fray of increasing production and reduction in time spent by man for manufacturing and general
production of goods and services. However, without man and materials, machines will be
useless. They need to be operated by man and fed with materials. That again is a doubtless
fact.

Money

Without money, no venture or enterprise can motivate workers, get quality and sufficient
materials, get the right machines and maintain them or even ensure that time is properly
managed. Money management, when not properly organized has been the most known factor
involved in collapse of enterprises in history. The quantity and quality of money expended in
ventures have a direct bearing on the fruitfulness of same over time. Accounts department have
been revolutionaries over the years, by man, to ensure maximum operations of surviving
business organizations. Where there is not enough money, no good workers, materials, or
machines can be employed or purchased or acquired. In other words, such a venture will be
wasting its time existing in the first place.

References:

http://www.africaheritagerivonia.com/?p=324

http://grow-a-set.blogspot.com/2011/09/4-ms-men-money-machine-and-materials.html

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