By: Chef Carrasco
Intangible and tangible resources are the most important aspects of the business. It is first to define the meaning of both resources and capabilities. Intangible resources are well known as the market brand, the employee commitment and trust within the company, the employee knowledge, good costumer relation, the principles of the business such as reputation, and values. It refers to the core of the company which is the people. In the other side, we have all material that we can touch and simply to understand, but vital to have it. It is the tangible resources, the property, equipment and tools necessary to perform the job, and particularly imperative; the money (Enz, 2010). In any business’ establishment the employees is considered the most valuable asset. And we know for fact that business cannot function without them. Due to economic uncertainties, many business face the obligation to reduce cost by letting go of the employees. In this discussion forum, I will examine another way to avoid these types of employment interruption by looking better ways of managing costs.
Management of Tangible and Intangible Resources
Business management is not only running a business when everything is perfect, it’s recognize how to deal with difficult times and how to manage the operation when things change (Monstella, 2009). When the economy does not allows us to manage our business correctly, we have to examine all associated costs. We have to evaluate every economic outlet of our business, but especially the first step we have to take into consideration and highly important, is to communicate all circumstances and the business economic discrepancies to the employees.
This step is crucial, all employees will sense that management cares about them, and the staff will understand the economic situation in a better way. In addition to this step, it will avoid the uncertainty, the spread of negative rumors, and disbelieves from employees. Remember communication to employees “the intangible resource and capabilities”, is always considered a significant element of good ethical practices among our workforce (Monstella, 2009).
There is always a better way to manage costs. But, at the time of managing those costs we have to contemplate how important our employees are for us, and as a team we need to understand that our business has to survive. We need to appreciate that we invested time, effort, and money in staff training. We have to reflect not to lay off employees for the mere reason the economy is right now in bad situation. We could consider reduce hours, bonuses, vacation without paid or reduce wages until the economy picks up back again. Other tangible or intangible resources might resorts, restaurants, and hotels could cut back on to help manage costs is to consider a green initiative plan such as installing energy saving light bulbs, turning off the stove when is not in use, turning lights off, and using e-mail communication in order to reduce paper cost. Our staff is the central intelligent system is an important part of our business’ resources and capabilities, and before any undesirable decision we have to communicate everything to our employees and let them know how important they are for us.