Management of External Resources Essay Example | Topics and Well Written Essays - 2000 words

Management of External Resources - Essay Example tcomes of the poor relationship management with the subcontractors. The outcome of such poor relationships and communication with the suppliers and subcontractors is that they start looking to take advantage for their business rather than for the project they have been chosen to work on, so in order to ensure that the suppliers and subcontractors are working for the benefit of the company or project the relationship and communication should be emphasized more. The relationships with the suppliers and subcontractors can be improved by working jointly for one goal, it is the managements job to ensure that the supplier or subcontractor is working for maintaining a long term relationship with the company or is very much devoted to the project that is undergoing, the changing attitude of the supplier is a hint that he wants to either end the relationship or is willing to get some more benefits from the company, in such circumstances it is the job of the management to ask the supplier about the problems they are facing, a very good idea about maintaining a very good relationship with the suppliers that is commonly seen in the successful companies is that the managers of those companies know every thing about the suppliers, they know their backgrounds, their history of working and even the names of their children, this is a very good technique to maintain healthy relationships with the supplier, as the supplier would now pay attention to the particular company and would take interest in its operations as they would see that the company is also taking interest in their personal life. In modern times it is so commonly found that the companies are paying bonuses to the suppliers and else they are providing them with complimentary gifts such as air tickets for spending the holidays outside the country and also many other rewards are given to them to ensure that they all are working for the benefit of the company, one can say that it is not a relationship of love but it is a relationship of need, both of them are dependent on each other. It is also seen that there are many companies that are having problems in making payments to the suppliers, they usually cause a lot of bad debts in the suppliers or subcontractors accounts, as a result supplier either stops supplying the raw material or subcontractor stops working on the project or the supplier brings in the name of the company in bad customers list. To avoid this happening the company has few choices, again it is the management's job to clear all the billings of the supplier and secondly if the company has