Resource Allocation

Resource Allocation is an assignment of resources to a specific use. In a project-based company, a resource allocation can be assigning a person to a project or task. Factors like resource availability and time needed for various roles in a project are considered. The process of allocating resources is a part of resource management.

In today’s global economic setting, with more projects and dwindling budgets, Project Managers are required to do more with the few resources they have on hand. First, with the commencement of any project, the primary task is to have a realistic plan. When that is ready, you move on to creating a comprehensive list of activities and include them in your project plan. Afterwards, you figure out the kind and the number of resources to allocate to the said activities.

The way you allocate these resources will usually have a direct impact on your productivity. In project management world, resources usually include funds, people, time, materials, and equipment which are all needed to execute the tasks in a project. During the course of your project, adjustments to the resources and activities can take place on a regular basis. Sometime, some activities may need allocation of extra resources and time compared to others; hence, tracking of time spent on every activity is critical in very many ways.

With that said, when it comes to resource allocation, most organizations usually shuttle between two states – “underutilized” and “overworked” – neither of which is ideal. Its apparent resources are always limited; however, good resource planning and forecasting are vital for effective utilization and management of these ever scarce resources.