Resources are needed for every type of economy, whether it is a police state or a democratic welfare state. Every business model requires them, and it is only through them that companies generate Value Propositions and Revenues. Key resources can be physical, financial, intellectual, or human.
Steps in Resources Management
- Identify
- Engage
- Negotiate
- Manage and Report
- Communicating Result
Every economy strives to fulfil some basic needs and aspirations of its citizen and for that it does following works:
- It is helpful in maintaining Organizational Sustainability.
- It keeps a check and guarantees continuation of the organization’s (government or non-government) service provision.
- Diversifies and expand resources- It supports the expansion of the organization’s products and services.
- Enhance resource efficiency and promote the use of secondary raw materials as a strategy to minimise the potential trade-off between growth and sustainability
- It is crucial to any organizations existence, as any organization, be it in the public sector or private sector, must continually generate new business to maintain a perpetual presence.
- Formulates an independent budget (fund).
- Allows spending and utilization of resources
- Minimize dependency on others, Sustains the nation and its policies and Maximize use of domestic capital and skills
- Low resource utilisation increases virgin resource demand, triggering high environmental burden and production costs.
- It paves the way for improvement of the available services and products.
- A welfare state ensures social security. The government plays a dominant role in controlling the economic activities and in the social welfare of the people, which requires resource mobilization.
- It exercises control over all the economic activities. In a welfare state, all the private enterprises are regulated by the government.
- Greater reliance on Domestic Resource Mobilization is vital to elevating economic growth, accelerating poverty reduction and underpinning sustained development.
- It provides even the basic facilities to its citizens. Furnishing services to each and every individual is its duty. A welfare government is keen in providing economic and social services such as general education, public health, public transport, housing, and other financial assistance to its people.
- It undertakes and runs various enterprises. Ownership and operation of industrial enterprises, business and other commercial activities are also done by welfare governments.
- It ensures justice for all. In a welfare state, common man has to deal with the authorities for many of their needs. For example; administrative officers, controlling officers, sanctioning authorities, officers of social services, executives of public sector undertakings etc. In all such dealings, a welfare state has the responsibility to ensure justice and fulfilment of their requirements.
- Domestic Resource Mobilization is more predictable and less volatile than aid, export earnings, or FDI.
- It is the function of a welfare state to regulate and control all private enterprises engaged in economic activities. Such control includes registration, licensing, taxation etc.
- The welfare of labourers also comes under the purview of the duties of welfare state. They are bound to make legislations to prevent exploitation of workers, and to ensure the security and welfare of those who work in industrial enterprises, factories, companies and all other sectors of employment. All of the above aspects are directly or indirectly pertains to the issue of resources and its mobilization. Hence the need of resource mobilization is vital in any welfare state.
Need for Mobilization of Natural Resources
- India, though a country with sufficient reserves, due to policy bottlenecks, is importing coal and iron. This is increasing our Current Account Deficit.
- India is also facing technological obstacles to exploit some of it’s the natural resources.
- India is also suffering from the domestic factors like political factors, resistance from tribal people to development and exploitation of resources, inter-state conflicts, disputes with neighbouring countries, etc.
Need for Mobilization of Human Resources
- Organizing human potential for ready use is necessary for growth of India. In-fact, as country of 125 crore people, India now is eyeing more on its human resource potential. The demographic dividend is also in favour of India.
- Mobilization of human resources highlights the need to empower human resources.
- Weaker sections like women, children, SC, ST, OBC etc. should be brought into mainstream.
- There should be right employment opportunities for human resources, and when there is lack of skill the job demands, there should be skill development programs.
- Utilize the demographic dividend.
Need for Mobilization of Financial Resources
- If a country needs to grow, more goods and services should be produced. The production can be done by government sector, private sector or in PPP mode. But for that, the economic resources of a country should be mobilised.
- In India, despite having good savings rate, domestic investment is less. Indians are investing in less productive assets like gold and consumer durable. If India needs to grow, there should be more investments in agriculture, manufacturing or services.
- In India, tax collected is very less. The tax base has to be widened.
- Organizations do not “spontaneously emerge” but require the mobilization of resources.
- In modern capitalistic society, these resources are more “free flowing” and are easier to mobilize than in more traditional societies. Many factors impact the development of the organization.
- Initial Resource Mix: There are various resource needs in a starting organization (technology, labour, capital, organizational structure, societal support, legitimacy, etc.). But the right mix of resources is not always available.
