Assignment on

Business Resources
Course: Business Resources
Unit:2
Program: ND Business
School: Business
Institute: BAC
Presented by:

Presented to:

Masuma Begum

Ms. Ismat Jahan

ID: 2014226017

Faculty, School of Business

Contents
Task 1 (P1): Describe the Recruitment Documentation Used in a Selected Organization.....................3
1.

Types of Staff Appointed.......................................................................................... 3

2.

Recruitment Procedure............................................................................................. 3

Task 2 (P2): Describe the Main Employability, Personal and Communication Skills required when
applying for a Specific Job Role.......................................................................................... 7
1.

Employability Skills................................................................................................ 7

2.

Personal Skills....................................................................................................... 8

Task 3 (P3): Describe the Main Physical and Technological Resources Required in the Operation of a
Selected Organization..................................................................................................... 10
1.

Physical Resources............................................................................................... 10

2.

Technological Resources........................................................................................ 12

Task 4 (P4): Describe Sources of Internal and External Finance for a Selected Business....................14
1.

Internal Sources................................................................................................... 14

2.

External Sources.................................................................................................. 14

Task 4 (P6): Illustrate the Use of Budgets as a Means of Exercising Financial Control of an Organization
................................................................................................................................. 17
1.

Budgets............................................................................................................. 17

2.

Break-Even......................................................................................................... 17

3.

Fixing Budget Gaps.............................................................................................. 18

4.

Working Capital................................................................................................... 18

Bibliography................................................................................................................ 19

Task 1 (P1): Describe the Recruitment Documentation Used in a Selected

Organization
Lakehead Grammar School is an English medium institution which teaches students from
Playgroup till A-Levels. The school, while ensuring to provide quality education, focuses on
Islamic values as an essential element in its pedagogy.

1. Types of Staff Appointed

Lakehead Grammar School appoints teachers and administration staff for the running of the
school.

Teachers appointed include:

Teaching Assistants for classes Playgroup till Class 5.

Full time and part time Senior Teachers for classes 5 till A Levels.

Teaching Assistants need not have any university degrees with concentrations in core subjects
such as Bangla, English, Science and Mathematics. Senior teachers need to fulfill the criteria of
having at least a Bachelors Degree in any of the core specialization subject areas from reputed
universities to fill teaching positions in the schools.
Administration staff includes:

Peons.
Ayas.
Accountants.
Security Guards.

Most staff does not need any qualification higher than a Higher Secondary Degree. Only the
Accountants need some sort of specialized Undergraduate Degree derived from any University
or College.

2. Recruitment Procedure
Lakehead Grammar School recruits teachers through advertised job postings on internet based
job sites such as bdjobs.com and jobsa1.com as well as advertisements in local English and
Bangla Newspapers such as The Daily Star and The Daily Prothom Alo. The teaching candidates
send their CV through the job sites or physically deliver them to the school premises.
After evaluation of the CV, selected candidates for the next step in recruitment are called. In this
step, candidates have to go through teaching exercises and demo classes to show their caliber in
the art of teaching. Candidates who pass this stage go to the final interview with the principal. If
they pass the interview, they secure the job for a probationary period of about 6 months to 1 year
after which they are granted permanent positions in the school. Teachers are recruited 2 to 3
months before the start of each academic year.
Administrative staff is recruited through personal contacts of existing employees in the
administrative division.

Teaching staff before applying need to check job description of the post they are applying for.
Job descriptions contain a list of conditions of work and crucial requirements of a candidate
which need to be fulfilled as well as the type of benefits that would be offered to the candidate if
selected. The job description would include salary, hours of work, qualifications and skills
required, work duties etc. (BTEC ND Unit 2 Business Resources, n.d.) Once the candidate
deems that he or she fulfills the criteria for the job as well as liking the initial facilities of the job,
he or she may apply for the job.
One example of job description in an online advertisement by Lakehead Grammar School is as
such (Chakrimela.com, n.d.):
Job Title: Teacher
Educational Requirements :
A minimum requirement is a Masters degree from a reputed University in relevant discipline.
O and A level background are preferable.

Experience Requirements:
Minimum 2 year(s)

Additional Job Requirement :

Minimum two years experience in reputed English Medium School is preferable.
Fluency in English(Except for teaching Bangla)
Excellent interpersonal and communication skills.
Job Responsibilities :
Required for: Early year/ Junior/Senior Teacher
Subjects: English, Bangla, Science, Math
Prepare lesson plans, teach, check assignments and written work maintain academic records
and ensure that student growth and achievement is continuous.
Meet deadlines, honor schedules, coordinate.

 Meet academic requirements related to exams, communicate with parents and perform other
duties and responsibilities as the position requires.
Salary Range: Negotiable
Other Benefits:
Working environment that is challenging, friendly and provides an opportunity for career and
personal development.
Inset training with trainers from home and abroad.
Job Location: Dhaka
Last Date of Application: 23-Sep-2011
After the candidate has been selected for the teaching position, the candidate has to sign an
employment contract to finally accept the job. An employment contract is a legal agreement
between the employer and the employee. All of the essentials of a job such as salary and working
hours are made clear in the contract. The employment contract has certain terms in it (BTEC ND
Unit 2 Business Resources, n.d.). These are:

Express Terms

Express terms are the main part of the individual contract and will have been discussed in the
interview and confirmed in writing.

Implied Terms
Provisions that are not included as written terms as they are understood to be included

automatically. These include terms such as the right to equal pay and the right to not suffer any
sort of discrimination.

A typical job contract of Lakehead Grammar School is as follows:

1. The designation being given to the teacher (part time or full time) as well as the prime
responsibility of the candidate.
2. Length of appointment the contract is effective.
3. The line management as in who the teacher will be reporting to.
4. The amount of salary to be received per month.

5. Basic hours of work per week and details of any extra hour of work that may be required
from the teacher.
6. Details of leave available to the teacher.
7. Details regarding punctuality and absence. Includes what to in case of required absence from
school.
8. Details about resignation and termination of teacher.
9. Administrative duties of teacher.
10. Details of ethical conditions of being a teacher at the school.
11. List of restrictions for a teacher of the school.
12. Documentations needed to join the school such as photographs, attested copies of academic
qualifications, copy of passport etc.
13. Declaration of information provided by the teacher in the CV and other areas at the time of
application to be truthful.

Task 2 (P2): Describe the Main Employability, Personal and

Communication Skills required when applying for a Specific Job Role

As Lakehead Grammar is a school, one of its top running forces is its teachers. Without
teachers the school would cease to exist. Some of the skills that an employee in general
needs to for any role in an organization (BTEC ND Unit 2 Business Resources, n.d.) are:

1. Employability Skills

Employability skills are the essential skills that a person needs to perform a job effectively
and successfully. These are not confined to one type of job and are transferrable between jobs
and careers.

Suitable Qualifications

Different jobs need different qualifications. Some jobs might need basic qualifications while
other jobs might need specialist qualifications. Some employers may be happy with hiring A

Level graduates for a job if it is a very simplistic one but specialist professional jobs such as
marketing, accounting, law, consulting will need specialized university degrees to suit the
jobs needs.

Experience in a Similar Role

Experience in a similar role can be important for many job positions where the employers
would want someone with previous experience to fill up the position advertised. If the
candidate can showcase such experience, the employer can be sure that the candidate can do
the same job in the employers organization. Writing about past experiences in CV helps
boost visibility in employers eyes.

Knowledge of Products and Services

Product and service knowledge is immensely needed when working in a customer service
role. A person who has knowledge of products and services related to what the business
delivers will have high chances of landing the job.

Experience of Specific Industry

If one has worked in an industry and has good knowledgeable experience in the industry, it
will be considered as a plus point for an employer. Experience of a particular industrial sector
is valued by employers as employees can give them tips, hints and information that can be
used to improve the business. Employers can also gain knowledge about competitors through
hiring the competitors employees.

Effectiveness in Meeting Personal and Team Targets

Employees should be able to meet desired targets. If one can demonstrate such ability, the
employer could be inclined to give the person the job. If one has fulfilled set targets in
previous organizations, this will be helpful to the owner as s/he will be sure that the current
organizations needs will be fulfilled as well.

Ability to Observe and Raise Professional Standards

Any employee who is able to work according to organization standards as well help in
improving them will be valued by the employer. Employers look for people with high

professional standards. Employees need to understand what these standards are and work in
that manner.

2. Personal Skills

Certain skills will be beneficial to a person regardless of what job or career s/he may choose.

Patient and Hard Working

Patience is needed in various jobs; especially ones those deal will the public. People who can
remain patient in tough situations and get the job done are top choices for employers. Being
patient is not easy but it pays off in the long run as it is better to consider decisions and their
outcomes and then choose the best one. People who get work done and do not waste precious
time of the organization are extremely valued by employers. Distractions may occur but they
are to be avoided.

Team Worker

Being a team worker is important as an organization will be full of employees who will need
to collaborate with each other on various projects. If one cannot blend well or work with
others then however the person is individually the organization will ultimately have limited
use of the person.

Interpersonal Skills

Interpersonal skills help people to talk and mix with other people and promote good positive
relationships in the workplace. This helps to get the job done more easily. Some are naturally
good at this while others have to learn as this helps anyone to improve their career. This skill
makes one more highlighted in the organization and helps get high priority with the authority.

Co-operation

Workers in an organization are expected to cooperate together rather than creating a ruckus.
Non co-operation between employees can waste employees time and energy as well as the
organizations.

Negotiation

Employees need to have the art of negotiation learnt in order to create an impact in the
organization. Negotiation involves coming into a common ground regarding a topic that both
parties can agree to. This helps to create a win-win situation for all. This can reduce conflicts
between employees as well as between employees and employers. Negotiation can be good
for employees if they want pay raises or better working conditions. Negotiation is important
when agreeing to targets because target may seem too high and be not achievable or be too
low and may not be worth pursuing. This needs to be talked between employees and
managers.

Interviewing Skills
Interviewing may come in handy in a lot of different situations. If one can interview
customers correctly then one can understand the customers needs and fulfill them by the
organizations products and service and increase the market position of the organization. The
employee can in the future use interviewing to select potential employees or evaluate current
staffs.

Task 3 (P3): Describe the Main Physical and Technological Resources

Required in the Operation of a Selected Organization
1. Physical Resources

Physical resources are resources that a business needs in order to operate smoothly. Such
resources include buildings, facilities, machineries etc. (BTEC ND Unit 2 Business
Resources, n.d.)

Buildings and Facilities

Businesses need premises to operate. Buildings can play an important role in the image of a
business to bring in more customers. When customers enter the building, facilities need to be
arranged for them such as waiting rooms. Banks often have desks or rooms where clients can
talk to an adviser about the banks products and services.

For many online businesses the appearance of buildings does not matter as customers would
not be going to the buildings or warehouses to buy the goods; the goods will be sent from the
warehouse to the customer.

The location of buildings is important in regard to its distribution network. Businesses who
want to be accessible to customers as much as possible will have many different locations for
its premises. Businesses who want to reduce costs will have a centralized location for its
distribution points.

Materials and Waste

Materials needed by an organization will vary by the organizations type. A restaurant will
need raw meat, fish, vegetables etc whereas a shoe factory will need rubber, leather etc.
Some items that are used in the organization will be recyclable while others will be not.
Businesses need to be careful about using materials efficiently and minimizing waste. This
would cut costs and increase profits.

Plant and Machinery

Every business needs specialized plant and machinery suitable for operations. Businesses
may have the option of leasing machinery rather than buying it. This would depend on which
option would reduce overall costs and increase future returns.

Equipment including IT
Equipment is essential for smooth operation of business. Lack of equipment may mean that a
job cannot be done. A movie theater without functioning seats would not attract movie goers.
Many organizations include IT with their list of essential equipment. IT may comprise of
both hardware (Laptop computer) and software (Operating System).

Planned Maintenance and Refurbishment

All resources need regular maintenance. If maintenance does not take place, machines may
break down resulting in lost sales. Building maintenance is needed is needed to keep
buildings clean and safe. Refurbishment occurs when a business gives new look to its office
or stores. Refurbishment may improve working environment and improve worker morale.

Emergency Provision

Evacuation training should be given to employees and clear instructions should be provided
about what do in case of fire in the building. Organizations must also provide safety
equipment inside buildings such as fire alarms, fire escapes and fire extinguishers. Regular
inspections of safety situations in organizations should be done. Employees should let
employers about any potential hazard.

Insurance

All buildings owned or leased must be covered by insurance. A fee is paid each month in
exchange for protection of the building. The type of insurance coverage and the amount of
money paid will depend on the policy that they business takes out.

Security

The building must be secure, safe and sound. Organizations may use security guards, close
circuit cameras and alarms. The type of security employed will depend on what kind of
resources and goods to be protected.

2. Technological Resources

Technological resources are owned like physical resources and have to be managed in the
same way. Such resources can be a simple computer to complex data recording centers.

Intellectual Property
Intellectual property rights allow people to own ideas and have rights concerning what
happens to these ideas, how often these are used, what they are associated with and if they
have permission to be copied.

Accumulated Experience and Skills

Accumulated experience means experience gained over a number of years when a person has
come across lots of different issues to do with the job. Experienced employees are more
likely to be able to do a good job in an organization. They might need to be paid more or be
given special conditions.

It is indeed important to build skills in a person but organizations should not become overly
dependent on the person and not train others so that if the person leaves, the organization
would end up in disarray. Organizations should have backups for specialist workers and
make sure that specialist training is passed down to other workers as well.

Software Licenses
Organizations either use commercial software or customized software for operation. When
business computers use Microsoft operating system, money has to be paid to use its license.
Licenses allow employees to use software at one computer or several computers depending
on the licenses usability. Sometimes businesses use unauthorized software or use genuine
licenses of software for more than one computer. This is considered a crime. Sometimes they
may over license by buying individual licenses for more money whereas a composite license
can be bought for less money.

Protection via Patents and Copyrights

Legislation can help protecting costly technological resources. It can be sometimes difficult
to prove if someone else is using the idea. A patent gives an inventor the legal right to stop
someone else copying without their permission

Task 4 (P4): Describe Sources of Internal and External Finance for a

Selected Business.

A business needs to have financing to run its operations and to survive in the long run a
business can obtain finance from the following two sources (BTEC ND Unit 2 Business
Resources, n.d.):

Internal sources
External sources

1. Internal Sources

Internal sources of finance are those sources of the business which are generated from within
the business.

Owners Savings

Entrepreneurs often use their own personal savings to start a business. Many entrepreneurs
do not find bank loans as banks may find the projects to be too risky to invest. Savings is an
interest free investment and thus there is no liability for the entrepreneurs. But savings may
be limited to the entrepreneur and not provide adequate funds to run the business
successfully.

Capital from Profits

Profits obtained from operation can be ploughed back into the business. This helps the
business to grow and earn even more profits. How much profit will be reinvested into the
business will depend on the owners perspective and how much they want the business to
grow. Retained profits do not carry any interest but may be limited to the amount of profit
created by the business.

2. External Sources

External sources of finance are funds which are gathered from outside the business.

Banks

Banks provide loans, accounts, mortgages and overdraft facilities for businesses to facilitate
operations. Some sort of security needs to be provided in order to obtain loans. Any sort of
loan obtained from bank carries interest which needs to be provided under any circumstance.
Bank loans are easy to obtain and the interest rate may be low if proper documents can be
provided and the business is safe to invest in.

Building Societies

Building societies perform the job of banks as in they provide loans, mortgages and
overdrafts. Interest is payable on these loans and is based on the risk of the venture. Some
sort of security needs to be provided to obtain loans from building societies. Building
societies provide loans to obtain housing. Loan interest may be high and conditions may be
strict in order to gain membership and access to loan.

Hire Purchase

Hire purchase enables a business to use a product without paying the full amount of money
beforehand. A down payment is given to a financing company to buy the product and the rest
of the money is provided by the financing company which can be repaid to them through
installments. Ownership is not transferred to the business until the last installment has been
paid. Installments can be paid easily as their small and monthly although the total of

installments may be quite higher than the actual price of the product. If any of the
installments are missed then the financing company will take away the product.

Leasing

Leasing is used by businesses when they want to use a product without owning it. The
product is given to the business for use for a certain period and after the period is over the
product is sent back to the leasing company. Leasing is beneficial when a business wants to
make use of a product without actually owning it. Payments are made in installments which
are affordable to the business but the overall amount of total installments may be higher than
the actual cost of the product.

Venture Capitalists

Venture capitalists are people who invest in new businesses which are risky and may not find
investment from traditional financers such as banks. Venture capitalists invest in such
businesses in return for a share of the ownership in the business. Venture capital is a good
form of finance as interests do not have to be provided. A significant amount of capital can be
obtained through such capitalists. But as ownership is shared so is control. Owners cannot
implement their own ideas without full agreement from every partner or investor of the
business which may hinder the progress of the organization.

Debt Factoring

Business can sell their debts to companies who are involved in debt factoring and can receive
a part of the debt immediately. The debt factoring company can then collect the debts later on
and the difference between the payment received by the company and the payments given to
the customer of debt factoring is their profit. By using debt factoring, businesses can decrease
their liabilities very fast but as the total amount of debt is not received, profits are decreased.

Share Issues

Private limited companies can sell shares to raise finance. Private limited companies can sell
shares to friends and family whereas public limited companies can sell shares to the general
public through the stock exchange. Selling shares help to raise large amounts of capital which

need not be paid back. But profit is decreased as part of the profit is given back to the
shareholders through dividends. There are also issuing cost of shares which may be large
enough to offset the amount of capital raised. If majority of shares are owned by the public,
then control of the company would be lost from the original founders or owners of the
company.

Family and Friends

Limited amount of money can be taken as loans from friends and family if needed. Interest
need not be given or may be low in rate. There is no time duration normally involved in
paying back of money but relationships can turn sour if money is not returned.

Government Grants

Grants are given by governments to entrepreneurs which do not need to be paid back. There
are no costs involved in getting grants but there are certain restrictions and laws imposed for
getting grants. Not every organization is eligible for grants and has many competitors
applying for it.

Task 4 (P6): Illustrate the Use of Budgets as a Means of Exercising

Financial Control of an Organization
1. Budgets

Cost management is an important element of an organization as decreasing or maintaining

costs increases cash as well as profit. If costs are not managed, then profits decrease and the
business may not be able to pay these costs. Budgets help in cost management because
budgets act out as forecasts of outflows and inflows of money. If it is known quite accurately
at what time what money is coming into and going out of the business, the business can
appropriately fix its funds so that money is available for expenses as well as money is
manage efficiently without any possible disturbances. (BTEC ND Unit 2 Business
Resources, n.d.)

Budgeting is based on assumptions on how much will be spent in a given area in the future.
Some departments use zero budgeting where no budget is created beforehand and managers
are asked for money based on what they believe would be needed for the year. On the other
hand, allocated budgeting involves money being allocated according to department size.
Budget is created beforehand and it is seen that each department is sticking to its forecasts. If
sales are higher than expected, then it is good but if expenses are high than expected then it
lowers down profits.

Variance analysis is a good tool to find out if there have been differences budgeted and actual
sales or expenses and their explanations. If results are better such as sales increasing, the
variance is favorable. If results are worse than expected such as costs rising, the variance is
unfavorable. Observing variance early on can help to make important changes so that the
situation gets stabilized.

2. Break-Even

Businesses can use costs found from budgets such as fixed and variable costs and sales to
find out the point where sales equal costs. This is the point where a business has made neither
profit nor loss. The break-even amount of units need to be sold to get into a neutral position
after which any number of units sold will result in profit. The difference between actual and
break even amount of units sold will result in profit. This difference is known as the margin
of safety.

3. Fixing Budget Gaps

Businesses may, at times, fail to have enough money in their budgets for important
expenditures. Further investment or grants may be needed to fund these expenditures. Big
funding could need investments in return for a percentage of the ownership of the business.
If the need for money is small or if businesses do not want others to get involved in the
ownership, then the business might opt for a loan from banks.

4. Working Capital

Working capital is the regular money needed to pay expenses for business to continue
trading. It is the difference between the current assets and current liabilities of the business.
Working capital is important because it shows if businesses have the ability to pay off its

daily expenses. Working capital may be large or small, positive or negative depending on
business decisions about operations. (BTEC ND Unit 2 Business Resources, n.d.)

Businesses may have long credit extensions for debtors which might bring in cash late into
the business where in the mean time expenses build up which need to be paid. Or businesses
might need to pay money early to their creditors even before sales have been made. These
kinds of situations affect the stability of working capital and thus liquidity of businesses. The
better the liquidity, the easier it would be for businesses to have cash ready to pay off their
expenses and debts.

Having a healthy capital is thus of urgency for businesses and objectives need to be made in
the budgetary planning in the early stages to incorporate reserves for working capital in case
it is low in the long run. An emergency budget can be done in such regard as it is often
difficult to make accurate budget forecasts and business situations may change any time for
the worse.

Bibliography

Richard C. BTEC Level 3 Business Student Book 1 (Pearson-2009) PP(60-72)

Chakrimela.com, (n.d.). Lakehead Grammar School (Dhanmondi/ Banani branch). [online]

Available at: http://www.chakrimela.com/jobdetails.php?jobid=51337 [Accessed 18 Aug.
2014].