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Introduction

P1 - Describe how a selected business manages its existing human resources MANAGEMENT OF HUMAN RESOURCES WITHIN TARMAC From: Date: 30 September 2008 1.0 TERMS OF REFERENCE This report is for the manager and it will describe how Tarmac manages its human resources. The report has to be delivered by the 30 November 2008. 2.0 PROCEDURE In order to write this report an extensive research was carried out on the company's website as well as on other websites related to the business. 3.0 FINDINGS Tarmac is the leader supplier of heavy materials in the UK, providing solutions in all areas of everyday life, for everyone. Vision, mission and values: To be the first choice for building materials and services that meet the essential needs for the sustainable development of the world in which we live. Tarmac is a limited company and a registered trademark. Tarmac is made up of three businesses - Tarmac Aggregate Products, Tarmac Building Products and Tarmac International Businesses. Tarmac Aggregate Products produces aggregate, asphalt, ready-mixed concrete and provides a contracting and recycling service. This business is divided into seven areas to help them to respond and react more quickly to, and have a better understanding of local requirements. The seven areas are: Scotland and Northern Ireland, Northern, North West, Midlands, Western, Anglia and South East and South West. Tarmac Building Products produces cement, lime, mortar and concrete products. Tarmac International Businesses' activities range from aggregates and asphalt to ready-mixed concrete and concrete products. They are growing very fast and currently operate in Belgium, Czech Republic, France, Germany, Hong Kong, Middle East and Poland. Tarmac is a large company and the organisational structure is complex. The main departments for all three units are operational, technical and commercial; and the main support departments are shown on the diagram below. The business unit of aggregate products based in the UK and particularly in London has three main levels of staff: Managers - they organise and plan their departments to exceed the expectation of internal end external customers. ...read more.

Middle

Main disadvantages: a substantial deposit is normally required, between 5%-25% depending on the asset; there will be a penalty if the agreement is terminated and depreciation and age lead to a reduced return on assets. Leasing/factoring Leasing is a contract between the leasing company, the lessor, and the customer (the lessee). The leasing company buys and owns the asset that the lessee requires. The customer hires the asset from the leasing company and pays rental over a pre-determined period for the use of the asset. Advantages: leasing can allow you to use better equipment (e.g. more efficient, faster equipment) and security as the leasing company owns the product so you do not need to provide further security. Disadvantages: you never own the product; it remains property of the leasing company before and after the lease what means that you can not even sell it and maintenance as you are responsible for it as well as for repairs. Factoring is a bit different; the business already established uses the service of a debt factoring firm. The factoring company provides the business with a percentage of the face value of the invoice, commonly 80% within days of an invoice being raised. The factoring company then assumes responsibility for collecting payment of the invoice, on receipt of payment the factor will pay the business the remaining 20%, whilst charging a fee for the service they provide. There are many firms offering this service, one example being Independent Commercial Finance Limited. The main advantage is the quickness to raise capital as for example a business that is owed �300,000 may be able to get �200,000 or more in just a few days. The main disadvantage is the cost as it will reduce the profit margin on each order and you have to pay extra to remove your liability for bad debtors. There are several leasing and factoring companies, including banks and independent finance houses. ...read more.

Conclusion

They are in a safe financial situation. Year 2001 Acid test = (current assets-stock)/current liabilities Acid test = 373.2/200.6 Acid test = 1.86 Year 2002 Acid test = 480/251.5 Acid test = 1.91 Again the ideal result is 1:1 at least and for both years the company is nearly 2:1 meaning they do have sufficient money to pay its current liabilities. Return on capital employed The return on capital employed ratio (ROCE) tells us how much profit he company we earn from the investments the shareholders have made in their company. Year 2001 ROCE = profit for the year/equity shareholder's funds ROCE = 83.9/499.7 ROCE = 0.17% Year 2002 ROCE = 100.8/546.9 ROCE = 0.18% In 2001 shareholders earned 0.17% in return of what they invested and in 2002 they earned 1% more. Asset turnover Asset turnover measures how effectively a business is using assets to generate sales. It is: Sales/assets Year 2001 Asset turnover = 1588.5/527.6 Asset turnover = 3.01 Year 2002 Asset turnover = 1871.7/586.1 Asset turnover = 3.19 In 2001 turnover (sales) is 3.01 bigger than total assets and in 2002 turnover is 3.19 bigger than total assets. In other words the company was able to generate sales of �3.01 for every �1.00 of assets in 2001 and in 2002 the company generated �3.19 of sales for every �1.00 of assets. Debt/equity ratio Measure used to assess a company's financial health. The ratio is calculated by dividing the company's long-term debt (capital contributed by creditors) by the shareholders' equity (contributed by owners). Year 2001 Debt/equity ratio = 18.5/499.70 Debt/equity ratio = 0.04:1 Year 2002 Debt/equity ratio = 20.4/546.9 Debt/equity ratio = 0.04:1 For both 2001 and 2002 the debt/equity ratio was almost zero. This indicates the business prefers equity funding to debt funding which minimises the interest payment problems and the control problems of having a dangerously high level of long-term debt on the balance sheet. Overall the company did well in 2001 and 2002 and in fact it did better in 2002. The company is in a solid financial health. ?? ?? ?? ?? 1 ...read more.

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