Management of Resources (Human and Non-Human)
Resources are the means a family uses to reach its goals. The exam tests the classification of human and non-human resources, their characteristics and the principles used to manage them.
Core concepts
- Human resources are personal and cannot be bought: time, energy, knowledge, skills, attitudes, interests, abilities and health.
- Non-human resources are material: money, goods, equipment, land and community facilities such as parks, libraries, transport, schools and health centres.
- Resources are limited, have alternative uses, are interrelated and carry an opportunity cost. Using time for one task means giving it up elsewhere.
- Management principles: use each resource to the maximum, substitute a plentiful resource for a scarce one, share resources, conserve them and develop human resources through education and training.
- Time and energy are human resources even though they are often planned like money.
Worked example
A two-earner family has one pressure cooker, two evening hours and a tight budget. Money is scarce, so cheap dal and seasonal vegetables replace expensive ready meals. Time is scarce, so rice and dal are cooked together in the cooker. The cooker is a non-human resource that saves time and fuel. The reasoning is to classify first, then choose the substitution that relieves the scarcest resource, here time and money, rather than buying another appliance.
Traps
Calling time or energy non-human; listing money as human; forgetting community facilities; treating resources as unlimited; ignoring opportunity cost when praising a cheap choice.