Logo

Resource Allocation: How To Do It Effectively (+ Templates)

allocate resources efficiently

Strategic resource allocation helps you to realize overall business profitability and revenue growth. But if you get it wrong, missteps can spiral into lost money, unsatisfactory deliverables, and paralyzing organizational bottlenecks. 

In this guide, you’ll learn how to nail your resource allocation process and simplify your decision-making.

#1 Strategy Execution Platform Say goodbye to strategy spreadsheets. It’s time for Cascade. Get started, free  forever

But first, let’s make sure we’re on the same page…

What Is Resource Allocation?

Resource allocation is the identification of resources you can dedicate toward strategic initiatives , specific projects, or activities in your company. It means figuring out the optimal way to use available resources to get the job done. The whole process often involves one or all of the following:

  • Understanding business priorities and goals. 
  • Tracking progress and creating milestones to aim for. 
  • Finding team members with the best skills and assigning them the right initiatives.
  • Outlining how your resources can meet the project budget or project requirements. 
  • Creating a work breakdown structure to account for initiative, project, or task dependencies.

The Benefits Of Strategic Resource Allocation

There are significant benefits to implementing strategic resource allocation for both companies and their stakeholders:

Alignment with the corporate strategy

The goal of strategic alignment is simple: to ensure that resources are leveraged in the most optimal way to impact business results. By doing so, it reduces the likelihood of bottlenecks in the execution process. It also fosters better working relations between different departments and ensures that every member of your organization is moving towards the same business outcome. Everyone has a clear understanding of their priorities and the tools they need to achieve them.

📚 Recommended reading: How To Build Organizational Alignment 

Resource utilization and efficiency

With proper resource allocation, you not only optimize the use of funds but also prevent team burnout by ensuring no personnel are being overextended. This can bolster stakeholder confidence in your organization’s ability to manage finances and safeguard employee well-being.

Strategic oversight and flexibility

Strategic resource allocation gives you an easily-accessible reference as to all the moving parts across your organization, allowing you to identify teams, projects, and initiatives that are performing well—and increasing support as necessary. This can also allow you to quickly pivot resources to an area that is underperforming and execute strategy within the planned timelines. 

📚 Recommended reading: Centralized Business Observability To Boost Your Bottom Line

7 Steps To Strategically Manage Resources Across The Organization

1. identify strategic initiatives.

First, you’ll need to understand how exactly your organization is performing concerning its goals. What are your core business metrics and financial statements reflecting, and what strategic initiatives can your company pursue to improve its overall performance?

This will help you match your resources to strategic initiatives that will have the most impact to move the needle.  

Here are some examples of strategic initiatives : 

  • Product development to enter a new market
  • Cutting supply chain costs
  • Increasing customer satisfaction 

👉How Cascade can help : 

Cascade’s Metrics Library helps you unify all core business data in one place and pinpoint performance, giving you clear oversight into which strategic initiatives are worth pursuing. This will help you to root your decisions in data and move forward with confidence that you’re going in the right direction. 

🎥Watch this short video explaining how to use the Metrics Libray in Cascade. 

2. Assess resource needs and organizational constraints 

Once you have an idea of where your organization stands strategically, you can focus your attention on the resources that it needs to reach the goals that you’re working towards.

Some examples of resource needs include:

  • Tools, equipment, and facilities for different departments
  • Essential software or licenses for operations
  • Staffing and other personnel for specific jobs
  • Support personnel who may be from outside the organization
  • Projected financing for your initiatives and projects 

This step is about pinpointing what you need and checking its availability, not about allocating resources. That comes later in the process. 

3. Prioritize strategic initiatives

Organizations often have several strategic goals, but with limited resources, they can't tackle them all at once. This is where prioritization comes in, helping focus on key objectives. 

Here are some decision-making tools and frameworks on Cascade’s blog to help you: 

  • Decision matrix : This template will help you analyze and pick the most important option based on specific criteria. It allows you to make data-driven decisions toward high-ROI initiatives based on the most critical factors that meet your organization’s needs.
  • GE Matrix : A framework to help you manage portfolios and prioritize investment across different strategic business units. This allows you to allocate resources (usually capital) as needed and gives you a better idea of which initiatives need focus and which can be dropped.
  • Competitive analysis : This collection of competitive frameworks will help you analyze market dynamics and the competitive landscape. This will help you recognize marketing opportunities and threats to effectively assign resources. 
📚 Recommended read: 7 Decision-Making Tools For Business Leaders

4. Choose your resource allocation strategy 

Once you understand where your organization stands, where you want it to go, and what steps you need to take, it’s time to allocate resources. Use the insights from previous steps to develop your resource allocation strategies and decide which initiatives get what resources. 

Here are some examples: 

  • If your organizational priority is growth , allocate resources to R&D, marketing, and expansion. 
  • If your organizational priority is profit , dedicate resources to high-margin products or services. 
  • If your organizational priority is control , assign resources to compliance, security, and governance. 

Don’t forget to balance your strategic priorities with resource availability. Avoid projects with low returns just because resources are at hand. Proper identification, categorization, and assignment of your resources ensure that you allocate them optimally.

5. Communicate allocation of resources 

A key aspect of resource allocation is alignment: ensuring that every stakeholder understands how they can properly utilize their resources—whether that’s finances, manpower, or time.

For organization-wide initiatives, this can be as simple as having an overview of all ongoing initiatives or a detailed map outlining the connections between each department and how their activities overlap.

alignment map view in Cascade

This overview in a centralized place can also help with:

  • Giving a clear view of what KPIs are being reached.
  • Outlining the performance of assigned resources in real-time.
  • Helping the entire organization stay consistent in working toward a specific initiative.
  • Informing other resources outside the organization that contribute towards your goals.
  • Promoting clarity and conciseness of information sharing at each milestone or benchmark.

👉 How Cascade can help : 

You can easily assign priorities to each objective, allowing stakeholders to better understand what’s important and how to organize their work. You can also reorganize your strategic plan based on the priorities without having to risk miscommunication across different departments in your organization.

6. Implement and monitor

Continuous monitoring is crucial in ensuring your resource allocation is reaching its targets. It allows you to spot: 

  • Assets being underused or used incorrectly 
  • Overspend or overallocation of resources on a single project
  • Project scopes expanding unexpectedly ("scope creep")
  • Resources bottleneck or shortages 

This real-time data provides a solid foundation for iterative strategic planning and decision-making. It helps you make informed financial decisions and quick adjustments when needed. 

Cascade’s dashboards help you monitor and analyze your key business metrics and information. They are highly customizable, helping you use different visualization options and present insights that power decision-making. 

example of a dashboard in Cascade

7. Review and adjust

Resource allocation shouldn't be set in stone. Regularly review your resources and adjust as necessary. This could be in response to changes in the business environment, unexpected challenges during execution, or shifts in strategic objectives.

In Cascade, you can easily create, share, and collaborate on reports to ensure everyone understands the context, performance, and decisions for changes in resource allocation. Analyze performance across teams, departments, and projects with simple visualization and engaging reports.

4 Challenges That Prevent Effective Resource Allocation

Every organization, regardless of size, grapples with resource allocation challenges. Recognizing and addressing these is key to mitigating the negative consequences.

Overlooked resource dependency

This challenge refers to the lack of understanding of how different resources within an organization are interconnected. These can be people, equipment, time, or money, and they often depend on one another to deliver the expected results. 

Cascade's Alignment map and Relationships directly tackle this by enabling users to see the connections between objectives, metrics, projects, and actions. This ensures real-time status monitoring and swift removal of any bottlenecks. 

Use of outdated legacy tools

Many organizations still rely on legacy tools or systems, like spreadsheets or traditional project management software, to manage their resources and operations. While these tools have stood the test of time, they might not cater to the evolving demands of modern operations in terms of complexity, speed, or scale.

With Cascade, you get access to modern strategy execution software that scales your needs, with flexibility and collaboration built into the platform’s design. This supports your growth long-term, ensuring streamlined operations without organizational chaos and disruptions. 

Limited visibility within a complex organization

Larger or more complex organizations often struggle to see all their resources in a single view. This can result from geographical dispersion, departmental silos, or disconnected resource management software solutions. Poor visibility makes it hard to understand resource utilization, pinpoint shortages or duplication, and optimize resource allocation. 

Cascade addresses this by centralizing all the necessary information about strategic initiatives and projects in a single platform. This centralized observability gives leaders complete insight into their initiatives so that they can stop what’s not working and double down on what is.

Lack of flexibility

All the shortcomings above can ultimately cause organizations to be too rigid in their resource allocation. They can struggle to adapt to changes and seize new opportunities, and risk lowering the efficiency of their operations and decreasing customer satisfaction.

In Cascade, you can quickly identify risks and align everyone around critical initiatives before it’s too late. This promotes a dynamic approach that your organization can always rely on to solve potential critical challenges and gives you the data you need for confident decision-making. 

8 Templates To Help You With Effective Resource Management

The Cascade platform has 8 different templates that any organization can easily and quickly use to help kick-start their resource planning:

Project Plan Template

project plan template cascade

This template is tailored for project teams that want to monitor the project lifecycle and ensure successful project execution. It streamlines project tasks, provides clarity on roles and project timelines, and ensures efficient resource allocation, enabling organizations to stay on track and meet their strategic goals efficiently. 

👉 Click here to get your Project Plan Template.  

Strategic Budgeting Plan Template

Strategic Budgeting Plan Template

Prepare multiple budgets, create financial forecasts, and reduce spending. This works well for financial teams looking to reconcile how their short-term expenses work towards their long-term goals, helping them maximize financial resources and reduce spending on dead-end strategies. 

👉 Click here to get your Strategic Budgeting Plan Template.  

Resource Capacity Plan Template

Resource Capacity Plan Template

Assess the availability of your resources and allocate them to your new projects efficiently. This template is suitable for resource managers and project leads who want to optimize resource allocation and ensure project success. 

👉 Click here to get your Resource Capacity Plan Template.

Resource Allocation Plan Template

Resource Allocation Plan Template

Identify and define the right resources needed to reach your organization’s goals, accounting for anything from personnel, equipment, and finances. Useful for teams that need a resource allocation strategy to use their resources more effectively and align with strategic priorities. 

👉 Click here to get your Resource Allocation Plan Template.

Project Resource Plan Template

Project Resource Plan Template

Detail how resources should be distributed across your project. It’s best used by project managers who want to optimize and track the resources used in a specific project, giving them a bird’s-eye view of how their resources work. In doing so, they can ensure they stay aligned with the project schedule.

👉 Click here to get your Project Resource Plan Template.

Cost Management Plan Template

Cost Management Plan Template

Track expenses and manage funding effectively, especially concerning project costs in the long term. Useful for project managers and team leads who want to ensure accurate financial projects and data-driven decisions. 

👉 Click here to get your Cost Management Plan Template.

Portfolio Strategy Template

Portfolio Strategy Template

Evaluate and manage the risks and returns of a portfolio, helping you plan your asset allocation more efficiently. It’s best suited to businesses that want to optimize their specific portfolio and increase potential returns.

👉 Click here to get your Portfolio Strategy Template.

Staffing Plan Template

Staffing Plan Template

Identify the roles and responsibilities needed from your personnel to achieve your strategic objectives. Best suited for human resources that need a comprehensive staffing strategy that includes everything from vacancies, qualifications, and onboarding.

👉 Click here to get your Staffing Plan Template.

💡Need something else? Check out our Strategy Template Library with 1,000+ free templates. 

Optimize Your Organization’s Resource Allocation With Cascade 🚀

A strategic resource allocation plan can help your company manage multiple projects through organization-wide coherence and alignment. Using a strategy execution software like Cascade , powered with the key capabilities of a resource management tool, helps you monitor your resources and enables your organization to move faster with centralized observability of your multiple projects, metrics, teams, and initiatives.

If you need help with business planning and resource management, you’ll need a platform that can help you accomplish all that and more.

Sign up today for free or book a guided 1:1 tour with one of our Cascade in-house strategy execution experts. 

Popular articles

allocate resources efficiently

What Is A Maturity Model? Overview, Examples + Free Assessment

allocate resources efficiently

How To Implement The Balanced Scorecard Framework (With Examples)

allocate resources efficiently

The Best Management Reporting Software For Strategy Officers (2024 Guide)

allocate resources efficiently

How To Set And Execute Strategic Priorities

Your toolkit for strategy success.

allocate resources efficiently

  • Search Search Please fill out this field.

What Is Allocational Efficiency?

  • When Is It Possible?
  • Requirements

The Bottom Line

Understanding allocational efficiency and its requirements.

allocate resources efficiently

Allocational efficiency, also known as allocative efficiency, is a characteristic of an efficient market where the optimal distribution of goods in an economy meets the needs and wants of society. The goal of allocative efficiency is to ensure that resources are used so that their marginal benefit to society is equal to their marginal cost.

Key Takeaways

  • Allocational or allocative efficiency is an efficient market whereby all goods and services meet the needs and wants of society.
  • Allocative efficiency ensures that resources are used so that their marginal benefit to society is equal to their marginal cost.
  • An efficient market is always reflected in the market prices of goods and services.

Understanding Allocational Efficiency

Allocational efficiency occurs when organizations in the public and private sectors spend their resources on projects that will be the most profitable and do the most good for the population, thereby promoting economic growth .

When all of the data for a market is accessible, companies can make accurate decisions about what projects might be most profitable, and manufacturers can concentrate on producing products most desired by the general population.

In economics, allocative efficiency materializes at the intersection of the supply and demand curves. At this equilibrium point, allocative efficiency exists for a firm producing the output for which the price is equal to the marginal cost of production.

Allocative efficiency measures how an economy uses resources to produce the goods and services people value the most.

Requirements for Allocational Efficiency

An efficient market is one in which all pertinent data regarding the market and its activities is readily available to all market participants and is always reflected in market prices .

For the market to be efficient, it must be both informationally efficient and transactionally or operationally efficient . When a market is informationally efficient, all necessary and pertinent information about the market is readily available to all parties involved. In other words, no parties have an informational advantage over any other.

Image by Sabrina Jiang © Investopedia 2021

Meanwhile, all transaction costs are reasonable and fair when a market is transactionally efficient. This ensures that all transactions are equally executable by all parties and not prohibitively expensive to anyone. If these conditions of fairness are met and the market is efficient, capital flows will go to where they will be the most effective and provide an optimal risk/reward scenario for investors.

What Is the Difference Between Allocational Efficiency and Distributive Efficiency?

Allocational efficiency is the optimal distribution of goods in an economy that meets the needs and wants of society. Distributive efficiency occurs when goods and services are consumed by those who need them most and focuses on the equitable distribution of resources.

What Is Allocative Efficiency Important?

Allocative efficiency is important because it ensures that resources are used to satisfy the highest number of wants.

When Does Allocative Efficiency Happen?

The state of allocative efficiency happens when a firm produces the output for which the price is equal to the marginal cost of production.

Allocational efficiency is the efficient allocation of resources that leads to maximum overall satisfaction in the economy. Allocative efficiency ensures that resources are used so that their marginal benefit to society is equal to their marginal cost. For a firm or producer, allocative efficiency happens when the price of the output is equal to the marginal cost of production.

Correction—July 31, 2023 : A previous version of this article inaccurately compared allocational efficiency to distributive efficiency, the equitable distribution of resources. The article was edited to clarify that allocation efficiency is the optimal distribution of goods in an economy to meet the needs and wants of society where marginal social cost is equal to the marginal social benefit.

allocate resources efficiently

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

allocate resources efficiently

  • Twitter icon
  • Facebook icon
  • LinkedIn icon

Resource allocation 101: How to manage your team’s resources

Resource allocation 101. How to manage your team’s resources: Illustration in blues and white showing the title of the blog and some stacked bar graphs.

10 ways to stay calm under pressure (at work and in life)

Title how to create implementation plan

How to create a project implementation plan

Titel limiting beliefs

What are limiting beliefs? How to overcome them and succeed

Working with planio, see how our customers use planio.

  • Project planning |
  • What is resource allocation? Learn how ...

What is resource allocation? Learn how to allocate resources

Julia Martins contributor headshot

Project managers and teams can struggle to make balanced resource allocation decisions, often opting for too much or too little. But the key to navigating this delicate balance is continuous adjustment and real-time responsiveness to project needs. This approach ensures that resources are optimally utilized, preventing both surplus and shortfall and steering towards project success with precision and efficiency.

When you think of the most important elements of project planning, what comes to mind? You probably think of the project’s main objectives, the timeline for achieving those objectives, and the scope of what you can accomplish within the project. 

But achieving any of these elements hinges on one thing: the resources available for your project. 

If you’ve never created a resource allocation plan before, this article is for you. We’ll walk you through five steps to allocate resources effectively. Then, get a preview of common resource allocation challenges and what you can do to get ahead of them.

What is resource allocation? 

Resource allocation is the process of identifying and assigning available resources to an initiative. Effective allocation of resources helps maximize the impact of project resources while still supporting your team’s goals. To create a resource allocation plan, identify the right resources—including team members, tools, budget, and more—you need to accomplish your project deliverables .

What is a resource? 

A resource is anything that helps you complete a project. This can include:

Team members

Project timelines

Ideas, intellectual property, or specific skill sets

Tools or software

Automated processes that reduce work about work

Who is responsible for allocating resources? 

The person responsible for resource allocation varies based on the size of your organization, but it’s usually the individual in charge of the project’s decision-making. For smaller companies, the project manager or team leader typically manages the budget, resource scheduling, and project work. 

Alternatively, at larger companies, the project manager and project budget owner are often different people. As a result, you may need approval from important project stakeholders or your project sponsor before allocating resources. 

If you aren’t sure who should be allocating resources, ask yourself these two questions and identify who is best equipped to answer them:

What is the budget, and who is approving it? You’ll need a budget for tools, technology, freelancers, and equipment. 

What are the team’s priorities, and who has time to work on this initiative? Before you allocate human resources, think through each team member’s capacity and priorities. How can you help team members do their best work and have the highest impact?

If you aren’t sure what’s on everyone’s plate, use a workload management tool to view team member capacity, get ahead of upcoming projects, and spot burnout before it happens. 

Benefits of resource allocation

Effective resource allocation is more than just a task; it's a strategic approach that can improve project management by ensuring resources are used efficiently and judiciously. This leads to better alignment of tasks with available resources, smoother workflows, and more effective handling of project constraints. 

As a result, projects are more likely to be completed on time, within budget, and to the desired quality standards, directly contributing to the overall success of the project.

Streamlined workflow: Proper allocation of resources leads to a more streamlined workflow . It ensures that each phase of the project aligns with the necessary project requirements, reducing delays and increasing efficiency.

Mitigation of bottlenecks: By anticipating and planning resource usage, bottlenecks can be identified and mitigated before they impact the project timeline. This proactive approach keeps projects on track, enhancing client satisfaction.

Simplified project management: Merging the use of dashboards with automation transcends traditional methods like spreadsheets. Dashboards provide a visual and intuitive overview of resource distribution and utilization, while automation streamlines the tracking and allocation process. This combination enhances overall project management efficiency, allowing for real-time adjustments and more informed decision-making.

Resource optimization: A well-crafted resource allocation strategy is key for project success. It ensures the best resources are utilized where they are most needed, aligning with the project's goals and timelines. By optimally using both physical and human resources, projects are more likely to meet their objectives and satisfy client expectations.

How to allocate resources effectively

An effective allocation strategy identifies the project’s goals and priorities and collects resources to fit your needs throughout the project's lifecycle. Resource allocation should be an early project consideration—ideally, aim to allocate resources during the project planning phase.  

1. Start with the end in mind

In order to understand your project’s priorities, how important it is, and how it should be resourced, you first need to outline the project’s objectives. This is the first step to any project. Project objectives are attainable, time-bound, specific goals you plan to achieve by the end of your project.

If you haven’t already, align on:

The project’s main goals and objectives

The project’s key deliverables

Relevant milestones

A high-level timeline or project roadmap

2. Identify available resources

In resource allocation, a resource is anything that helps you achieve your project objectives. Depending on your project’s needs, this includes the project team and any tools, budget, equipment, or skills you need to hit your project deliverables. 

Before you actually allocate resources, understand what’s available. There are a few dependencies to look out for, including:

What is the project’s priority level? This influences how it should be resourced. Is this an all-hands-on-deck project that’s contributing to a company OKR , or is it a lower priority initiative? Come up with an internal tier system for project priority to guide how you’ll staff each project. 

Who is available to work on this project? Take a look at your team’s capacity to understand what they’re working on. If this project is more important than their current work, try resource leveling . See if there’s anything you can deprioritize or reschedule to accommodate this new work. 

What budget or tools are available? Does this project have a budget? Are there additional tools you need to invest in or develop in order to complete this work? 

What additional resources do we need? Do you need any cross-functional team members to work on this project? Alternatively, are there unconventional resources—like very unique skill sets or new equipment—you need for this project to succeed?

Who needs to approve the resource allocation plan? If someone other than you is in charge of budget, tooling, or team workload, check in with them to make sure this resource allocation plan looks good. Are there any additional project stakeholders who need to be looped in during the resource allocation process? 

3. Align on project scope

To scope a new project, you first need to understand the project’s goals, deadlines, and project deliverables. This helps you get a sense of your project needs so you can hit your goals on time and on budget. 

A clear project scope also helps you avoid scope creep , which is what happens when the asks and deliverables exceed the pre-set project scope.

4. Create and share a project plan

Now that you have a sense of your available resources, surface that information to the larger team. Invite your project team to a project kickoff meeting , and share:

Your project plan

Relevant project milestones

The project schedule

Any task dependencies to keep an eye on

Track all of this work with work management software . It’s important for your project team to know which resources are available for this project—and also to have a central source of truth for this information in case it changes. With a centralized work management system, you can clarify project priorities so everyone understands the context of the work. That way, if something does change, you can reprioritize based on the highest-impact work. 

5. Monitor project progress

Once your project is underway, monitor project progress in case of any unexpected resource allocation developments. No matter how well planned your project is, things can change. Team members go on vacation, a client might be delayed in getting back to you, or your business goals might change. Track project progress in real time so you can adjust if necessary.

Common challenges of resource allocation

When done correctly, resource allocation can help you hit your goals, increase your impact, and maximize your resource utilization. You’ll get better at allocating resources as you go, but if you’re just getting started, here are some common challenges—and how to avoid them. 

Problem: Burnout and over-allocation

The biggest issue to avoid during resource allocation is overwork and burnout. Team members get overworked when they work too hard, too much, or too long. Prolonged overwork can lead to burnout, which the World Health Organization defines as an occupational phenomenon resulting from chronic workplace stress.

Without visibility into what everyone is working on—especially if you’re managing work across multiple projects —it’s easy to assume team members have the time and bandwidth to work on your specific project. This lack of clarity can lead to accidental over-allocation and, eventually, burnout.

To prevent overwork and burnout, proactively evaluate team members workload. With capacity planning , you can get ahead of burnout and make sure team members aren’t overwhelmed or underworked. This is critical because, according to the Anatomy of Work , 71% of knowledge workers reported experiencing burnout at least once in 2020. With proactive resource management software , you can promote balance—instead of burnout.

Problem: Resource dependencies

Sometimes, things change after you identify and allocate available resources. You might be waiting on a team member to finish a project before getting started on your initiative—but what happens if that project gets extended? 

Even the most effective resource allocation can’t predict every business contingency . To avoid unpleasant surprises, use resource management tools, such as project management software , to automate resource tracking in real-time. That way, you can immediately see resource shortages and project delays and pivot your own work accordingly. 

Problem: Low resource utilization

The average knowledge worker spends 60% of their time on “work about work”—things like searching for documents, chasing approvals, switching between apps, and following up on the status of work. That leaves only 40% of each day for skilled work and strategic planning . More often than not, we take this time-consuming “stuff” for granted as part of work, but it doesn’t have to be. That’s where resource utilization comes in. Resource utilization describes the percentage of a team member’s time that is spent on billable work or tasks that contribute to overall profitability.

High resource utilization isn’t about squeezing out the maximum amount of productivity from any given team member. Rather, the key to maximizing utilization is impact. When team members understand the relative priority between different tasks, they can spend their time where it’s most effective —and have the highest impact as a result.

Tips for effective resource allocation

Many teams that are new to making resource allocation decisions often struggle to identify and deploy the best resources in a manner that streamlines operations and keeps the project on its critical path . This can lead to bottlenecks and setbacks, potentially jeopardizing the success of the project. 

The following tips offer strategies to transform these initial stumbling blocks into stepping stones for a successful project.

Align location decisions with availability of resources

Deciding where to locate your project requires careful consideration of both its geographic requirements and the availability of resources . 

Consider a construction project where materials are sourced from the closest suppliers to reduce transit time and costs. To optimize their resource allocation strategy, the team could continually assess supply chain dynamics and foster relationships with local suppliers that can lead to quicker turnaround times and better material quality.

Such strategic location decisions not only ensure that resources are used where they are most needed but also aid in developing a more efficient project structure.

Leverage automation and project management tools

Incorporating automation into your resource allocation strategy can improve the management of project tasks and ensure smoother project progression and timely completion. 

For example, a software development team might use a tool like Asana to automate task assignments based on team members' current workload and expertise. Automation tools can help with scheduling, resource leveling , and identifying potential issues before they become problematic. 

By automating routine tasks, project managers can focus more on critical aspects of project management, such as client satisfaction and ensuring project success.

Use real-time data in decision-making

The foundation of effective resource allocation lies in harnessing real-time data . For instance, a marketing agency might use dashboards to monitor ongoing campaigns, adjusting team assignments and resources based on real-time performance metrics. 

Employing tools that provide insights into the work breakdown structure and relevant metrics , project managers can make adjustments that keep their resource allocation strategies on track.

Effective resource allocation leads to better projects

Resource allocation can help you set your project up for success from day one. Manage resource availability early during the resource planning process to know exactly what you can support and how you’ll hit your project goals.  

Resource allocation is crucial to reducing miscommunications and getting more work done, faster—especially when you can automate it. In Asana, you can identify resources, track and update them, and assign related tasks—all from one central platform.

Related resources

allocate resources efficiently

Sales and operations planning (S&OP): A project manager’s guide

allocate resources efficiently

What is stakeholder analysis and why is it important?

allocate resources efficiently

Scope management plan: What is it and how to create one

allocate resources efficiently

7 causes of content calendar chaos—and how to solve them

  • Contact sales

Start free trial

What Is Resource Allocation? How to Allocate Resources for Projects

ProjectManager

Projects require many resources. Everything from the people you’re working with and the equipment they’re using, to the materials and other supplies you need to even the site where you’re working falls under the umbrella of project resource allocation. Let’s explore what resource allocation is, why it’s so important for project management and what tools you can use to better allocate your project resources.

What Is Resource Allocation In Project Management?

Resource allocation is the process of scheduling resources such as labor, materials or equipment for the completion of project tasks. Resource allocation is a step of project resource management that involves estimating resources, procuring resources, allocating resources and tracking resources until the project is completed.

Why Is Resource Allocation Important?

As difficult as it might be to allocate resources correctly over the life cycle of a project, it’s an essential part of any thorough project management plan and should be done in the planning stage of a project. This keeps costs down, maximizes productivity and helps with team morale. It also facilitates client satisfaction by achieving the best outcome and successfully delivering the project.

allocate resources efficiently

Get your free

Resource Plan Template

Use this free Resource Plan Template for Excel to manage your projects better.

Resource Allocation Process: How to Allocate Project Resources

Resource allocation is a plan that you develop with the aim of making the most of the available resources at your disposal in a project, which makes it a critical resource planning activity. This is mostly a short-term plan set in place to achieve goals in the future.

This sounds challenging, but don’t worry, we’re here to help. The following are some general tips to help you with your resource allocation when managing a project.

1. Define Your Project Scope

Before you can allocate your resources or manage them, you have to determine the scope of the project you’re working on. To do so, you need to break down the project into every individual task and deliverable that will be completed. Once you’ve done so, you can make the right decision on what resources you’ll need and how many of them are necessary to complete the project.

The clearer the project scope is, the better you’ll be able to figure out how to allocate your resources. Take the time to get the full picture of the project using a work breakdown structure or other project planning tools to visualize all your project tasks before estimating your resources.

2. Estimate What Project Resources Will Be Needed

Once you have defined your project scope, you can move to the resource planning phase which is when you’ll have to estimate what resources will be needed including people, equipment, materials and anything else you’re going to need to complete your project tasks. Your organization will have some of these resources already, while others will need to be purchased or rented.

Before you can allocate resources, you have to have them. So, make a list using the criteria above and then make sure it fits within the project budget .

Once you’ve acquired your project resources you should use project management software to plan how they’ll be allocated. That way you can coordinate them with your project schedule and distribute them across your team. In ProjectManager for instance, you can manage your project schedule, your team and your non-human resources in one place. Build your schedule on a Gantt and track your resource distribution, progress and labor costs in one software. Try it free today!

Allocate resources on the ProjectManager Gantt chart

3. Assess Your Current Resource Utilization & Resource Availability

Now that you’ve determined what resources are required for your project, you should also identify which of those resources are available within your organization. However, some existing resources might be being used for other projects, so it’s important that you not only identify which resources your organization has but also which of those are being utilized.

4. Create a Resource Allocation Plan

Take the information that you’ve gained from the above steps to put together a resource allocation plan. Outline the list of resources you’ll need for your project as well as the cost and quantity of each. When you’re finished, circle back to your project scope to make sure your plan aligns with it.

5. Keep Track of Your Project Resources

It’s a problem when you’re so focused on the process that you neglect to lift your head up from the resource allocation plan to note what’s actually happening. This isn’t merely tracking your estimates against actual progress in the project, though that’s important, too.

You should always be aware of the state of your resources. For example, what’s the schedule for your team, are any taking vacation time, are they sick, etc.? Also, what’s the duration of the lease for the site or equipment? These are important questions to ask when scheduling resources.

Don’t let any of these details get past you because of tunnel vision. Look at the whole project, not just the various pieces.

6. Use Resource Allocation Reports

You can reallocate if you don’t know where your resources are allocated. You might have planned them out well, but change happens in projects. How can you tell what’s happening on the ground compared to your plans? Project reports .

You can generate all sorts of reports to give you a full picture of the project and how it’s progressing, which helps you balance your resources. For example, resource reports give you an overview of your team’s workload and whether they’re over-tasked or idle.

ProjectManager's status report filter

Task reports keep you updated and variance reports help you determine whether the project is proceeding as planned. The latter gives you vital information, such as if you’re behind schedule and need to redistribute the work to get back on track.

Resource Planning Template

Now you’re ready to build a resource plan to help you manage your resource allocation. Our free resource planning template for Excel lists all the resources you’ll need for the project, how much each will cost and a monthly, weekly or daily chart of when you’ll need them.

resource planning template

Resource Allocation Methods

The specific resource allocation method that your organization implements depends on your industry and the nature of how resources are managed. For example, manufacturing companies might focus on raw materials and equipment while a professional services company might focus on team utilization and financial resources.

Regardless, it’s important to balance resource allocation with involved stakeholders . This could include teams, departments, customers, shareholders and other stakeholders. We’ve outlined some commonly utilized resource allocation methods for you to consider.

  • Critical Path Method: In project management, the longest chain of dependent tasks is referred to as the critical path . By outlining a straightforward priority for task completion before the project starts, the CPM helps use resources as efficiently as possible. However, one criticism is that this method doesn’t allow for multitasking.
  • Resource Leveling: To implement resource leveling , start by looking at the capacity of your team to determine how much work they can handle. Compare this with demand. If resources aren’t aligned with demand, reschedule tasks accordingly.
  • Resource Smoothing: Resource smoothing aims to reduce demand while executing the project within the ideal timeframe. During this method, the project manager makes adjustments to resource scheduling and allocation. For example, if you’re under a time crunch, you might bring on a more seasoned person who can complete the work faster.

Resource Allocation Tools

Now that we’ve explained some popular resource allocation methods, let’s examine some of the tools that project managers can use along the way.

  • Gantt Charts: Gantt charts provide an easy way to map the required project tasks and note dependencies. You’ll be able to see and allocate your resources across a project timeline, so you know exactly when you’ll need each resource. Once you’ve identified your tasks, you can assign them on the Gantt chart and see how long each team member has spent working on each task.
  • Resource Allocation Matrix: A resource allocation matrix is an overview of the needed project resources. It helps to identify any potential bottlenecks or imbalances ahead of time. Typically, the matrix includes the names and roles of each team member, their availability, and their skills and tasks on the project. It acts as a visual representation of your resources mapped against project tasks and activities.
  • Resource Breakdown Structure: This resource allocation tool is a hierarchical chart of the resources needed to execute your project and it includes everything from the people needed for the project to what you’ll be spending your money on. An RBS can include materials, equipment, people, project management tools and more.
  • Workload Charts: These charts visually represent your resource allocation for your project team, department or entire company. You can see how many hours each person has been assigned and make adjustments to ensure your team is working at capacity. Use it to quickly determine how your human resource management is aligning with your planned resource allocation.

Resource Allocation Example

Let’s say you’re a manager for an IT organization and you’re tasked with hiring an architect for an upcoming project. You know the importance of an architect position to the overall success of the project but you know that they’re usually an expensive hire.

You’ll need to consider if it makes more sense to hire an architect for a specific project or if you want to assign him or her to multiple projects . You can utilize resource allocation tools to determine what makes the most financial sense for your organization.

Resource Allocation Tips

Even though there may be blind spots when managing resources, there are some tips to keep in mind to help you allocate resources as effectively as possible.

1. Know Your Resource Dependencies

By planning beforehand, you can avoid bottlenecks that trap your resources when you need them most in the course of the project execution . Planning also helps you keep your resources from falling short. This doesn’t mean you won’t have a bottleneck or resource shortage, but it’s less likely if you know your resource dependencies.

Part of planning for dependencies is having a contingency plan in place in case team members are blocked or you run low on needed resources. Keep your plans from being over-dependent on one resource to avoid trouble down the line.

2. Track Time

You always want to keep a close eye on the time, how your team is working and if they’re being efficient. It’s your job to make sure that a task that can be completed in a day doesn’t take a week. There are ways to improve time tracking .

To do this, you must keep track of your team’s workload. That requires the right tools to give you real-time data collected on one page where you can both see and schedule ahead when needed.

3. Use Resource Allocation Tools

Project management software, like ProjectManager , is a great asset for managing your resources more productively. With an online tool, you get project data instantly updated.

You can see where your resources are allocated across a calendar that’s color-coded to note whether they’re on- or off-task, on vacation or sick. Rescheduling to help a team member who is overtasked is a simple click of the keyboard.

reallocate workload

Free Resource Allocation Templates

Resources allocation requires accurate and timely data to avoid bottlenecks that can slow down your project. Project management software is the most efficient way to manage your resources, but if you don’t have an online resource management tool there are templates that can help. ProjectManager has free project management templates for every phase of your project, including ones to help with resource allocation. Here are a few.

Requirement Gathering Template

Before you can allocate your resources, you need to understand what’s required. The free requirement gathering template for Word acts as a means of communication between the stakeholders and the project team. This ensures quality deliverables that meet specifications.

RACI Matrix Template

You’ll also need to organize your resources before you can properly allocate them. Our free RACI matrix template for Excel is a place where you can define the roles and responsibilities of the team members. RACI stands for responsible, accountable, consulted and informed, and the free template helps you place everyone involved in the project within one of those quadrants.

How to Allocate Resources With ProjectManager

ProjectManager is robust project management software with multiple tools that allow project managers to allocate project resources, track utilization and availability, control costs and deliver project success. Regardless of how you prefer to manage and schedule your resources, ProjectManager has the tools to help you every step of the way. Here are some of our most popular resource management features.

Schedule Resources With Multiple Planning Tools

Tools such as Gantt charts, kanban boards, task lists and project calendars allow you to allocate resources in multiple ways. Use online Gantt charts to create interactive project timelines that let you easily assign the needed resources for each project task or create task lists that make it easy to stay on track. In addition, ProjectManager’s workload charts help you plan and oversee each team member’s workload at a glance so you can keep your team working at capacity.

allocate resources efficiently

Track Costs With Project Dashboards & Timesheets

Once you’ve allocated your project resources, you’ll need to track their costs to ensure that you’re sticking to your budget. ProjectManager’s real-time dashboards make it easy to monitor costs, timelines and progress so nothing is overlooked. Use the dashboard to make timely updates and catch problems before they snowball. In addition, you can use our project timesheets to help you keep track of labor costs.

dashboard showing project metrics in real-time

Related Content

If you’re still interested in resource management, you’ve come to the right place. ProjectManager isn’t just superior software, it’s the online hub for all things project management. You not only get free templates but regular blog posts, thorough eBooks, whitepapers and more. Here’s a sample of that content as related to our topic.

  • Best Resource Management Software Rankings
  • Resource Management: Process, Tools & Techniques
  • Resource Planning: The Ultimate Guide
  • Resource Smoothing Steps, Templates and Tools
  • How to Track Resource Availability

If you’re looking for a project management tool that can help you implement those tips and manage your resources properly, then look no further. ProjectManager has all the features mentioned above to help you manage your resources, and it’s online software, which means the information you’re working with is in real time. See how it can help you by taking this free 30-day trial today!  

Click here to browse ProjectManager's free templates

Deliver your projects on time and under budget

Start planning your projects.

  • Resource Portfolio Management
  • What-If Scenario Planning
  • Integrations for Resource Management
  • Strategy Execution
  • Strategic Portfolio Management
  • Adaptive Project Management
  • Resource Management Capabilities: Tempus Resource
  • HR Workforce Agility
  • Audit Resource Management
  • Tempus Insight+
  • Portfolio Kanban
  • Program & Project Management
  • Project Financial Management
  • Business Intelligence Project Management Reporting
  • Project Management Spreadsheets
  • Resource Management
  • Resource Forecasting Tools and Techniques
  • Resource Management Request Workflows
  • Skills & Competency Management
  • Scenario Planning
  • Project Scheduling
  • Microsoft Project Add-In
  • Project Intake
  • Case Studies
  • Infographics
  • Press Releases
  • Whitepapers
  • Help Center
  • In the News

How to Create an Effective Resource Allocation Process

November 23, 2018 | by sean pales.

A resource allocation process is the method that project managers use to allocate budget, equipment, people, tools, and data to the project areas where it’s most needed.

An effective resource allocation strategy is half science and half art. Learning how to assign the right balance of resources to multiple projects requires knowing everything you can about each one and being able to accurately envisage and predict the knock-on effects that each decision will have.

Projects can’t be completed successfully unless they have the right work resources assigned to them.

When you consider the number of moving parts in largescale projects, you quickly discover that only the most experienced project managers can perfect the resource allocation process. So, what tactics have they developed to achieve this and how can it guide others to access success themselves ? What is the ideal method of resource allocation? This article will answer these questions.

What’s involved in an end-to-end resource allocation process?

For project managers and project management offices (PMOs), the resource allocation process involves using cutting-edge technology and techniques to accurately predict and allocate the optimum balance of resources in individual and simultaneous projects.  Here they share some of the resource allocation methods they use to do this.

1.     Knowing when to say no

Any change in customer or stakeholder demands, time or budget restrictions, or a myriad of other project changes means resources have a tendency to expand in a phenomenon known as scope creep .

No project manager wants to under-resource their projects. But if every project could consume as many resources as possible, most would never stop. Effective project management is knowing the point at which projects need to simply be content and make the best use of the resources they have. This is where resource management software can support project managers by  giving them a clear overview of how resources are distributed and where over- or under-allocations occur.

2.     Gathering the right information

Gathering and recording as much information as possible is the key to making good resource allocation decisions. In short, knowing everything you possibly could about your resources, their availability, and the projects in most need of them lets you effectively match needs with resources.

When deciding where to allocate people, for instance, you need to match up the skills and experiences of available resources with the unique demands of individual projects.

So, it’s important for the PMO to ensure that information is readily available on staff: their experience, how they’ve performed in previous projects, and what their specialties are.

Why allocate two people to complete the same job when you know one expert will suffice? Knowing people’s specialties and project requirements allows project managers to easily see where one person can do a job more effectively than others.

The same logic stands for other resources, like time and money. Knowing which projects are most likely to overrun allows you to effectively allocate budgets to avoid this. All of this requires your PMO to compile and effectively record information at every stage of the process.

3.     Effectively visualize data

Simply having the right data isn’t always a means to an end. Project managers are busy people and don’t always have time to search through a lot of dense information.

Effective data visualization helps project managers make informed decisions quickly. Whether it’s running costs assigned to a project, total workload assigned to a worker, or risk of unforeseen circumstances, it’s important to make sure that the evidence you’re accounting for is well presented.

Project managers risk making poor quality decisions if they can’t take all the evidence into account. This is another place where resource management software is a vital part of effective decision making; being able to effectively visualize the distribution of data in such a way that project managers can quickly use it to inform effective decision making.

4.     Effective resource leveling

Every resource allocation process requires an element of resource leveling. This is when project managers divert resources from a project to one where they could be better used.

Resource leveling is a simple concept in theory, but it becomes increasingly difficult when you account for the complexity of each moving part within and between projects. Taking budget or workers away from one project is always a risk, especially if the situation changes again down the line and it needs an influx of money or manpower to stay afloat.

Resource management software automatically calculates when resources are over or under capacity and when they can be better deployed elsewhere. To properly achieve effective resource levelling, resource management software needs not only to recognize when a resource is needed, but also to analyze the secondary and tertiary effects of moving something elsewhere.

Effective resource allocation

Good project managers know how to balance these competing requirements, assemble the right information, make fast decisions, and analyze the effects of any decisions they make.

Excellent project managers get the best resource management software in the field to do it for them. In short: they use Tempus Resource.

Tempus Resource effectively uses sophisticated algorithms to measure the knock-on effects of every decision you make, in a function known as ‘what if’ planning. With this, it achieves that ever-crucial optimal balance of resource allocation across multiple complex projects.

Tempus Resource was created to remove the limitations in other project management tools and create new and better ways to allocate resources. To find out more about how Tempus Resource can solve your resource management issues, contact ProSymmetry today .

Subscribe to our Blog

Be the first to know when we post new content!

Ready to get started?

Related resources:, what is audit resource management.

Internal audits are a complex process with a plethora of moving parts…

 alt=

How Can Resource Planning Help With Scope Creep?

Scope creep, where a project grows beyond its original objectives, often leads…

Tempus Resource Year-End Checklist

Q4 is well under-way, and it’s time to start thinking about all…

What to Include in a Resource Utilization Report

Now that you know how to find your ideal resource utilization, let’s…

ProSymmetry LLC

2000 Auburn Drive, Suite 460

Beachwood, OH 44122

© 2024 ProSymmetry. All Rights Reserved

allocate resources efficiently

Mastering resource allocation: A 6-step guide to success

allocate resources efficiently

Further reading

  • 7 ways to improve resource utilization in the next 30 days
  • Resource forecasting: The secret to project profitability
  • Strategies for maximizing billable utilization for your professional services firm
  • Leveraging the benefits of professional services automation to maximize efficiency and profitability

You might have heard the phrase resource allocation tossed around in boardrooms or in glossy business magazines, but what is it exactly? And why should you care?

Today, we'll focus on what resource allocation means and how it can propel your organization to success.

Let's delve deep into resource allocation and discuss six simple steps to track resource allocation, and the one tool

What is resource allocation?

Resource allocation is the process of distributing available resources, such as time, money, and human capital, to various tasks or projects within an organization.

It entails determining the best way to utilize limited resources efficiently and effectively to achieve desired outcomes.

It involves identifying the needs and requirements of a project or organization, analyzing available resources, and determining the best way to allocate them.

Effective resource allocation ensures optimal utilization, maximizing productivity and minimizing waste. It also involves prioritizing resources based on their importance and impact on the overall objectives.

Resource allocation requires careful planning and consideration of factors such as the project’s scope, budget, timeline, and the availability of resources. It is often done through various techniques, such as resource leveling, resource smoothing, and resource allocation matrices.

By implementing proper resource allocation strategies, organizations can streamline their operations, enhance productivity, and achieve their goals in a cost-effective manner.

Why Is resource allocation important?

Resource allocation helps organizations make the most efficient use of their limited resources.

Resource allocation involves carefully assessing the needs and priorities of the projects at hand, and assigning the resources available in a way that maximizes output and minimizes waste.

The result? Cost savings, improved productivity, and, ultimately, higher profitability.

Furthermore, resource allocation helps organizations adapt to changing circumstances and manage risks. By regularly reviewing and reassessing resource allocation strategies, businesses can respond more effectively to unforeseen events, such as a sudden increase in demand or a reduction in available resources. This flexibility allows organizations to maintain a competitive edge and better navigate through challenging times.

Benefits of resource allocation

Effective resource allocation is a cornerstone strategy in driving the success of any professional services firm.

It contributes significantly to efficiency, productivity, and profitability and is a fundamental aspect of ensuring smooth business operations.

By understanding the benefits and implementing proper resource allocation strategies, firms can set a clear direction toward their growth goals.

As resource allocation becomes even more pertinent in a rapidly changing business environment, let's delve deeper into its many benefits for professional services firms.

Efficient use of resources

When resources are utilized effectively, businesses can reap numerous benefits.

Firstly, it enables organizations to save costs by minimizing wastage and maximizing productivity. Efficient resource utilization also allows companies to meet deadlines more effectively, resulting in smoother workflow and increased customer satisfaction.

Moreover, by optimizing resource allocation, businesses can achieve better resource balancing, ensuring that all departments have the necessary tools and support they need.

This not only promotes teamwork and collaboration but also enhances overall efficiency and effectiveness.

Efficient use of resources through strategic allocation brings about cost savings, improved productivity, and enhanced customer satisfaction.

Maximizes productivity

One of the key benefits of resource allocation is that it maximizes productivity within an organization. By effectively distributing resources, companies can ensure that each individual, department, or project receives the necessary tools, time, and support to perform at their best.

This means that employees are not wasting time searching for resources or waiting for approvals, but instead can focus on their core tasks and responsibilities.

Additionally, resource allocation helps identify any bottlenecks or areas with excessive workload so that adjustments can be made accordingly.

Overall, a well-executed resource allocation strategy can significantly enhance productivity levels and streamline operations, leading to improved efficiency and better results for the entire organization.

Enhances decision-making

When resources are allocated effectively, decision-makers have a clear understanding of the available resources and their distribution. This allows them to make informed decisions based on accurate data and information.

By analyzing the availability of resources and their utilization, decision-makers can prioritize projects or initiatives that have a higher chance of success. They can also identify areas where resources are being underutilized and make adjustments accordingly.

Effective resource allocation empowers decision-makers to make strategic choices that maximize efficiency, productivity, and overall organizational success.

When decisions are backed by a well-organized allocation strategy, businesses can achieve their goals more effectively and achieve greater profitability.

Improves financial performance

Efficient resource allocation can significantly enhance your company's financial performance. By carefully allocating resources, you can maximize productivity while minimizing wastage and unnecessary costs.

When resources are properly allocated, you ensure that each department or project receives the necessary support and funding to accomplish its objectives effectively.

This results in streamlined operations, improved efficiency, and, ultimately, increased profitability. Resource allocation also enables you to identify areas where resources are being overutilized or underutilized, allowing you to reallocate them to areas that require more attention.

By optimizing your resource allocation strategy, you can enhance your financial performance and achieve sustainable growth for your business.

Enhanced employee satisfaction

When resources are allocated efficiently, employees feel supported and valued. Adequate allocation of time, personnel, and tools allows employees to perform their duties effectively and meet organizational goals.

This, in turn, leads to a sense of accomplishment and fulfillment, increasing job satisfaction.

Furthermore, when employees have access to the necessary resources, they can work more efficiently and produce higher-quality work. As a result, they experience less stress and frustration.

By prioritizing resource allocation, organizations can cultivate a positive work environment and foster a motivated and engaged workforce, ultimately enhancing employee satisfaction.

How do I track resource allocation?

Effective resource management can contribute significantly to business effectiveness and efficiency, bolstering overall productivity.

Understanding how to track resource allocation with accuracy and precision enables businesses to optimize their available resources, directly influencing their bottom line.

Therefore, developing this strategy can serve as a secret weapon for managers set on boosting their firm’s operations. Let us discuss 6 simple steps in which you can track resource allocation in your organization.

Determine the resources at hand

When it comes to tracking resource allocation, the first step is to determine the resources at hand. This means identifying all the people, materials, equipment, and budget available for your project or task.

Start by creating a comprehensive list of all the resources you have access to. This may include team members, departments, software tools, physical assets, and financial resources.

This is where a resource tracker comes in handy. A resource tracker allows you to identify and monitor all your resources in one centralized location. From team members' skills and availability to equipment and software licenses, the resource tracker provides a comprehensive overview of what you have at your disposal.

Rocketlane offers a free resource tracker template that you can customize according to your business requirements. It is a simple and understandable template that can help you track your resources effortlessly.

Once you have a clear inventory, you can then assess their availability, capacity, and capabilities.

This will help you better understand what resources you can allocate and ensure you have a solid foundation for effective resource tracking and management.

Recognize the project's scope

Recognizing the project's scope is a crucial step in tracking resource allocation effectively. Before diving into resource management, one needs to define the project's boundaries and objectives clearly.

Understanding what needs to be accomplished, the deliverables and the timeline allows for better resource allocation decisions. It helps identify the necessary resources, both human and non-human, required to complete the project successfully.

By recognizing the project's scope, you can avoid underestimating or overestimating resource needs. This clarity also enables accurate estimation of project durations, costs, and potential risks.

Ultimately, recognizing the project's scope lays the foundation for an efficient and effective resource allocation process.

Match project tasks to available resources

Matching project tasks to available resources allows for efficient resource allocation, making sure that the right people are assigned to the appropriate tasks.

To achieve this, it's essential to have a clear understanding of the skills, availability, and capacity of your team members. By identifying these factors, you can allocate tasks accordingly, ensuring that the workload is distributed evenly and that everyone's strengths are utilized.

Additionally, using project management software can streamline this process by providing a centralized platform to view and assign tasks, track progress, and reallocate resources when needed.

By matching project tasks to available resources, you'll optimize productivity and deliver results effectively.

Establish a mechanism for tracking time

By implementing a time-tracking system, you can keep a close eye on how much time is being spent on specific tasks or projects.

This not only provides you with valuable insights into resource usage but also helps identify any potential bottlenecks or inefficiencies in your workflow.

Whether you opt for manual methods like timesheets or automated software, having a reliable time-tracking mechanism in place ensures accurate data collection and analysis.

Ultimately, this information will assist you in making informed decisions about resource allocation and maximizing productivity within your organization.

Track usage

To effectively track resource allocation, it is crucial to monitor usage. By keeping a close eye on how resources are utilized, you can gain valuable insights into where improvements can be made.

Start by establishing clear metrics and benchmarks to measure resource usage. This could include things like time spent on specific tasks or the number of materials used.

Utilize technology and software systems to automatically track and analyze this data, providing real-time information on resource allocation.

Regularly reviewing usage data allows you to identify patterns, identify bottlenecks, and make informed decisions about allocation adjustments to optimize efficiency and productivity.

Reassign when necessary

One key strategy to ensure successful allocation is to reassign resources when necessary. This means taking a proactive approach to reassessing and reassigning resources based on evolving project requirements and individual workloads.

Regularly monitor the progress and performance of each team member to identify any bottlenecks or imbalances in resource allocation.

If certain individuals are overwhelmed with tasks or underutilized, it may be time to redistribute their workload to ensure optimal productivity.

An effective tracking system can assist in identifying these areas of concern and allow you to make informed decisions when reassigning resources.

By regularly evaluating and reallocating resources, you can optimize productivity, reduce stress, and keep projects on track.

Track your resources effortlessly with Rocketlane

Rocketlane's PSA software is a powerful tool that can revolutionize how you allocate and manage your resources. Rocketlane's PSA software offers numerous benefits for efficient resource allocation. Here are some key points to understand how it can streamline this process effortlessly.

Centralized visibility

Rocketlane's PSA software provides a centralized platform where all resources and their availability can be tracked in real time. This eliminates the need for spreadsheets or manual processes, ensuring that everyone involved has access to the most up-to-date information.

Comprehensive reporting and analytics

Rocketlane's PSA software offers comprehensive reporting and analytics features that allow teams to track resource utilization. This helps identify any potential bottlenecks or underutilization, enabling swift adjustments to enhance efficiency.

Collaborative workforce management

Rocketlane's PSA software promotes collaboration by allowing stakeholders to communicate, share updates, and provide feedback on resource allocation. This ensures that decision-making is transparent and involves input from all parties, leading to better resource allocation outcomes.

Strong resource management capabilities

Rocketlane offers a feature that provides a real-time view of the availability of resources and the capacity of workloads. This allows users to make proactive decisions when it comes to allocating resources effectively for projects, ensuring efficient utilization of project resources.

Switch to Rocketlane for a seamless resource management process

Rocketlane's PSA software revolutionizes resource allocation and management. With centralized visibility, you can easily track the availability of resources in real-time, eliminating the need for outdated spreadsheets or manual processes.

This ensures that everyone involved has access to the most up-to-date information, leading to more informed decision-making and streamlined resource allocation.

It also offers comprehensive reporting and analytics capabilities. Your team can track resource utilization, identify any bottlenecks or underutilization, and make swift adjustments to enhance efficiency.

Having a clear view of resource allocation and usage allows organizations to optimize their workforce and ensure that resources are properly allocated. This, in turn, enables them to deliver projects on time and within budget.

Ready to optimize your resource allocation and streamline your processes?

‍ Book a demo with Rocketlane today and see how our PSA software can revolutionize your resource management capabilities.

1. What is resource allocation?

Resource allocation refers to the process of assigning and distributing resources, such as time, money, and personnel, to various tasks and projects within an organization.

2. Why is tracking resource allocation important?

Tracking resource allocation is crucial for effective project management as it helps ensure resources are utilized efficiently, enables better decision-making, and allows for better planning and forecasting.

3. What are the benefits of tracking resource allocation?

Some key benefits of tracking resource allocation include improved project scheduling, increased productivity, enhanced resource utilization, better cost control, and improved overall project success rates.

4. How do you identify project requirements?

To identify project requirements, you need to clearly define the scope of the project, determine the tasks and activities required to complete it, and identify the necessary skills and resources needed.

5. How do you assign resources to tasks?

Assigning resources to tasks involves matching the required skills and availability of resources to specific project tasks. This can be done using project management software, spreadsheets, or resource planning tools.

Industry insights you won’t delete. Delivered to your inbox weekly.

Madhushree Menon is a content marketer at Rocketlane. She mainly focuses on SEO blogs, but also dabbles in other forms of content. A true Hufflepuff at heart, she loves to binge-watch anime, explore new cuisines, and learn new languages.

Table of contents

allocate resources efficiently

Move your service delivery into the fast lane

Book a demo

Try for free

For professional services

For onboarding and implementation

Projects and Processes

People and Finance

Customer experience & Accountability

Integrations

What's new ⋆*

Help center

Product tours

Join Preflight Community

Rocketlane TV

Trust center

Merch Store

Wall of love ♥️

Careers · We are hiring!

Responsible disclosure

440 N Barranca Ave #4560Covina, CA 91723

+1 260 632-7586

[email protected]

allocate resources efficiently

Copyright © 2024 Rocketlane Corp. All rights reserved.

allocate resources efficiently

Filter by Keywords

Project Management

What is resource allocation a complete guide for maximum efficiency.

Senior Content Marketing Manager

April 20, 2023

Picture this: You’re throwing a party. Your house is full of celebrating guests. Someone says, “I’m getting hungry… Let’s order some pizzas!” 

You’re trying to figure out how many pizzas to order. Too many pizzas, and you’ll be stuck eating leftover pepperoni for days. Too few and some of your guests won’t get a slice.

But you’re also limited by counter space and the money in your wallet.

How do you feed everyone while also getting the most value out of your money?

Like party organizers, every project manager should know how to allocate resources wisely. No project has an unlimited budget or amount of team members, but you can use resource allocation to maximize productivity and project success. 

It’s all about thorough preparation and strategic planning around making the most out of what you have.

Learn how to allocate enough resources to all your projects so that you get the job done—and everyone gets a slice of pizza. Let’s party!

ClickUp Flexible Time and Workload Tracking CTA

What is Resource Allocation?

The benefits of effective resource allocation, how to manage resources and set client expectations, resource allocation examples and templates, resource allocation is a constant work-in-progress.

Resource allocation is the process of identifying all your available resources—whether it’s labor or monetary—for a project and then strategically assigning them to tasks that enable them to do their best work.

For agencies juggling multiple projects for different clients, resource allocation is key to making sense of creative chaos. Matching the right person, or resource, with the right project makes everyone happier in the end. Your staff gets to work on the projects they’re best suited for, so clients are likely to receive high-quality project deliverables and results. 

As projects evolve and client expectations change, resources are reallocated to keep progress on track with project timelines.

What counts as resources?

Your resources are all the company assets necessary to complete tasks or projects. These may include:

  • Individual people
  • Teams or departments
  • Hardware and software
  • Real estate
  • Intellectual property
  • Techniques and skill sets

Who’s responsible for resource allocation?

Usually, project managers are responsible for resource allocation because they have the most visibility and control over project budgets, scope of work , and task management. However, large organizations might separate these responsibilities across several roles or have dedicated resource management departments.

Related: Resource Leveling

Not allocating your resources well is like sending just one person to pick up ten pizzas on their own while the other 15 people chat at home. It’ll take one person much more effort and time to get those pizzas, which runs the risk that everyone might be stuck eating cold pepperoni. 

Why not send three people to help out, so everyone can enjoy a warm slice ASAP? 

Resource allocation enables you to use your labor, money, and assets to their full potential , so clients are likely to receive high-quality work. At the same time, your agency minimizes team burnout by distributing work evenly. 

Other benefits of resource allocation include:

  • Maximizes efficiency. Resource allocation helps the agency to take on as many projects as your teams can handle—no more lost opportunities due to overstaffing, or project failures due to understaffing
  • Fosters collaboration . The client and your team know who’s working on what because you’ve divided tasks and responsibilities clearly across the team
  • Increases your agency’s profit margins. Get the most out of each project’s budget and control staffing costs
  • Boosts client satisfaction. Deliver better project outcomes by keeping projects on track and assigning the right people to each job

Since resource allocation takes stock of the available resources for a project at a given time, it is a short-term plan—but it has long-reaching effects. It’s a critical tool for capacity planning and managing client expectations. With effective resource allocation, your project has everything and everyone it needs to be successful, including the right resources and a realistic time frame. 

Bonus: Capacity Planning Tools & Capacity Planning Templates

Define your project scope

No chef starts cooking without picturing what they’re going to cook, right? 

Similarly, the first step in project management is to define the scope of your project. Without understanding your project scope , making resource allocation decisions is impossible!

As part of your project scope, you need to define the following:

  • The statement of work : what tasks are necessary vs. what work is out-of-scope
  • Project constraints such as budget and deadlines
  • Project schedule and timeline with milestones
  • Project deliverables or outcomes

Your project scope helps you plan out and understand a new project at a high level. Use this information to:

  • Plan how many resources you’ll need to complete your project within the allotted time frame
  • Dice up the project into smaller tasks
  • Decide how you’ll assign those tasks to your team members

Take stock of your resources

Before picking toppings for your pizza, you have to know what toppings are available—and what everyone’s preferences are. Similarly, to pick the best resources for a job, you must first understand what each person does best and what kind of work they prefer to do. 

When project planning, you should understand the capability of your team and the quality of resources you have at your disposal. That way you can allocate those resources where they’ll be most effective. 

What are their strengths and core areas of expertise ? Match your project requirements to the resources that can execute those needs. 

Agency resource planning example

Say your project involves running a pay-per-click ad campaign for a B2B SaaS client in the business intelligence sector. You have two PPC managers at your agency: Jason, who has worked with other B2B tech clients before, and Sara, who has mainly worked with B2C direct sales clients. 

Sara says she’s less comfortable managing PPC for this client because she doesn’t know much about B2B software, much less a highly technical industry like BI. Meanwhile, Jason is confident he’s the right person for the job due to his past B2B experience.

For this project, you’d definitely want to place Jason on the account!

What is the availability and bandwidth of your resources? Team members rarely work on just one thing at once, but everyone is limited by the number of hours per week or day they can work. You want to ensure that your team has enough work hours to assign to this specific project.

Remember that absences, whether planned or unplanned, affect availability, so assign employees to tasks with contingency periods in mind. Employees can (and should) take paid time off or sick leave, which means they’re unavailable on those days. 

Meetings can take employees away from project tasks even during regular work days. Plus, everyone needs at least 15 minutes in their day to walk the pup or get a pumpkin spice latte! 

Never over-allocate resources . Overallocation can lead to burnout and lower productivity. The success of your project is never worth sacrificing the happiness and usefulness of your team. 

Refer to calendars and schedules when allocating your resources, and adjust timelines accordingly to accommodate resource availability. Optimize resource utilization so that your projects always have just what you need. 

Directly assign tasks to team members for full visibility

Once you know what your project team can achieve, the next step is to delegate the right tasks to each person based on their skill sets and availability. 

Set your team up for success ! Provide as much information as possible to ensure everyone understands what’s expected of them. Clarify all the need-to-know details for each task—the responsibilities, expected results, and due dates. 

In ClickUp, it’s easy to cut your pizza of a project into smaller slices with tasks, subtasks, and checklists. You can then quickly assign each action item to your team members in just a few clicks!

Here’s a closer look:

  • ClickUp Tasks : Break down your projects into achievable tasks and subtasks, which you can easily assign to your team members. Your team can now work on the whole project one step at a time.
  • ClickUp Checklists : Create simple to-do lists that your team can quickly check off as they progress through tasks. Use these lists to map out steps, perform quality checks and keep track of how your project is going.

For some tasks, a single person is just not enough—especially when you have tight deadlines.

Luckily, with multiple assignees in ClickUp , you can quickly assign more people to a task if needed. So the next time a task needs that extra pair of hands, you’ll be able to assign them in a jiffy.

Plan around dependencies to avoid overuse of limited resources

The pizza delivery person won’t reach your doorstep unless they can park first. If your driveway is full, the pizza party is off – and that’s simply not an option. 

Similarly, projects inherently have dependencies —relationships between tasks and resources that affect those resources’ availability. 

Consider resource dependencies , where multiple tasks require the same limited resource. Let’s say you need 10 new graphics designed by Friday, but only have one designer on the team who’s already allocated to other projects until Wednesday. 

In this case, you would need to adjust your project schedule to realistically accommodate your team’s limited availability . Or look to hire another graphic designer, whether full-time or freelance, to provide the support needed to meet your deadlines. 

Reschedule dependencies to visualize the impact

Task dependencies also occur when one task’s progress depends on the progress of a separate task. For example, you have to wait for clients’ feedback before completing project revisions in line with their requests. Like rolling out a lump of pizza dough into a perfect pie before adding tasty toppings!

Stagger and schedule tasks based on these dependencies. Keep an eye on any potential bottlenecks and make sure that no one is left waiting on others for too long. Maintain constant communication around outstanding tasks and action items, and adjust expectations accordingly around project delays.

Consider adopting an Agile or Scrum project management methodology to eliminate or circumvent dependencies. 

ClickUp’s Dependencies help you map out the links between tasks and resources . This way, you’re able to keep tabs on all your project dependencies before they ever have a chance to become blockers. 

Here are more ways that Dependencies keep your team focused:

  • Everyone always knows what to prioritize first, what they need to wait on, and what comes next in the pipeline. Less miscommunication, more getting it done!
  • ClickUp pings assignees when their tasks get unblocked or dependencies are added or removed. This eliminates the “waiting game” so team members can focus solely on actionable tasks in the meantime. 
  • Warns people before closing tasks that are waiting on other tasks, preventing them from skipping over or forgetting key requirements

You can add Dependencies to individual tasks manually, or visually by drawing links between tasks on a Gantt chart . 

Track progress and reassign resources accordingly

Ideally, you set resources for a project, and it goes according to plan. But if there are any delays or changes, you may need to reallocate resources. 

Don’t panic! Reallocation is a normal part of resource management. 

The first step is to keep a close eye on team capacity as it relates to fulfilling your project requirements. Ask these questions when looking at your current capacity: 

  • Are some team members overloaded? 
  • Have some employees suddenly become unavailable due to uncontrollable factors like internet outages, quitting, or reassignment to another project? 
  • Are key milestones in danger of being missed? 
  • Has the scope of your project changed, requiring unexpected, additional work?

If so, the next step is communicating changes with your client or project stakeholders . Keep them in the loop about your project’s progress as early and often as possible, including any potential shifts in scope or delays. 

This helps manage expectations so stakeholders are less likely to be caught off guard, disappointed, or surprised by changes or setbacks. 

The resource allocation process may involve rescoping your project and finding additional team members to help with the extra work. Some companies create a backup resource allocation plan by identifying employees with relevant skills that can fill in as needed or maintaining a pool of freelancers who can provide support on the fly.

You also may need to adjust timelines and deadlines for all tasks in your project to reflect your team’s capacity and account for unanticipated delays. 

Allocating your resources by itself, plus reallocating tasks down the line, can be a lot of work, but it doesn’t have to be hard work!

Consider using resource management tools that keep your team on track with centralized visibility. No need to dig up all your various spreadsheets, docs, and post-its, or constantly switch between all your team members’ calendars. 

We might be biased, but we believe ClickUp is a great (dare we say the best?) resource allocation tool. It brings all that information into one place so you can keep track of your progress and team capacity in real-time. You can create customizable Dashboards to see how your team is doing and where you might fall behind. 

That’s one way Diggs uses ClickUp to stay on top of its projects. The results? Greater transparency into workload management , less time spent on back-and-forth communication, and more productive use of everyone’s time.

We’d call that a win!

Minimize scope creep

You can order what you think is enough pizza for everyone at your party, but you can’t always anticipate how much they’ll eat. What happens if you unexpectedly run out of pizza? 

Aside from shedding some tears (understandably), you now need to shift gears to meet your goal of feeding all your guests. 

This is a case of scope creep —a project expanding beyond its original scope and requiring additional resources, including extra time, money, and people. Scope creep threatens your project’s success by adding extra work without extending the project timeline, creating extra pressure on your team members to do more in less time. 

You can try your best to prevent scope creep by setting firm boundaries in your project scope statement, but sometimes it’s unavoidable. In those cases, good change management puts structures and processes in place to mitigate scope creep. 

It establishes expectations that decision-makers will inform you about scope changes ASAP and give you the space and time to reallocate or add resources accordingly. 

Going with the flow is important, but so is preventing overwork by overloading your team! They have a pizza party to get to, after all.

Let’s say you’re a project manager in charge of launching an influencer marketing campaign for Marinara , a mobile Pomodoro timer productivity app. Here’s an example of what your resource allocation plan might look like:

  • Define your project scope : Market Marinara on 10 productivity-focused TikTok accounts with over 50k followers in Q4. 
  • Understand your resources : The project budget is $10,000. Your team consists of an influencer marketing manager, product marketing manager, IT specialist, and Payroll specialist. 
  • Assign tasks: The influencer marketing manager will identify and communicate with influencers. The product marketing manager will solidify product messaging and create a brand kit for influencers to reference. Meanwhile, the IT manager will grant app access and troubleshoot tech issues. Your HR manager will collect payroll paperwork and make sure influencers are paid for their work.
  • Plan around dependencies: The product marketing manager is also working on a new feature launch in October, so you’ll plan for them to complete their tasks by September. PM will create a backup list of influencers to contact in case one backs out. 
  • Track progress: This marketing campaign will span from August to November with five major milestones. If one person is overcapacity, add resources to the team or extend the project timeline accordingly. You’ll monitor progress in ClickUp via Dashboards and communicate if any deadlines are at risk of being missed. 
  • Minimize scope creep: Say Marinara wants 15 TikToks, or influencers with over 100k followers instead. They should request project scope changes by the end of August to stay on track with the current project timeline. Otherwise, you’ll agree to shift the project timeline to accommodate the change in scope. The PM will then identify and reach out to additional influencers that fit those requirements.

Ready to identify and allocate your resources? ClickUp is here to help! It’s completely free to sign up and start using in seconds . Get started with these resource allocation templates , designed to kickstart your project management into hyperdrive today!

The ClickUp Resource Allocation Template

ClickUp resource allocation template

ClickUp’s Resource Allocation Template helps you keep track of the capacity and availability of all your organization’s resources in one place. It comes with these convenient Views:

  • List View : See all tasks in a single list. Group, sort, and filter through to-dos with ease. Organize them however it makes sense to you—whether that’s by clients, projects, or more!
  • Board View : View and move tasks around this Kanban-style board which organizes action items by status.
  • Workload View : Visualize the amount of work that each team member has been assigned during a specific time frame, like one week, two weeks, or one month. Compare each person’s assigned workload to their overall capacity. 

This template is fully customizable to fit your resource management workflows. Leverage this template to get a comprehensive overview of your team’s capacity and progress toward project completion and deliverables.

The ClickUp Resource Planning Template

ClickUp Resource Planning Template

ClickUp’s Resource Planning Template offers a variety of ways to visualize and allocate your resources throughout your team. 

In addition to the views included in the first template, this template provides two more Views: 

  • Timeline view : See your schedule linearly on a chronological timeline. Perfect for resource planning and roadmaps!
  • Gantt View : Visualize your tasks and their dependencies on a Gantt chart timeline . Quickly assess any roadblocks or bottlenecks to keep your project moving forward. 

This template helps you proactively plan around your available resources, including budgets and team members’ schedules. Like all of our templates, it’s customizable, so you can tailor it to your needs and make it your own. 

Related: Enterprise Resource Planning Software

You don’t just allocate resources before your project starts and call it a day. You have to keep a finger on the pulse of your projects, balancing your team’s capacity carefully against your project requirements. Since factors that can impact your project success are constantly changing, you also need to be flexible enough to adjust your resource allocation strategy as needed.

ClickUp is the best project management software for teams, with a robust set of features to help you manage your resources, keep your projects on track, and get things done quickly.  We help project managers and key decision-makers allocate resources and oversee the complete project lifecycle like pros.

See how ClickUp can help you and your team by signing up for free today! 

And keep your favorite pizza spot on speed dial — because you’ll never run out of cheesy goodness with our help!

Questions? Comments? Visit our Help Center for support.

Receive the latest WriteClick Newsletter updates.

Thanks for subscribing to our blog!

Please enter a valid email

  • Free training & 24-hour support
  • Serious about security & privacy
  • 99.99% uptime the last 12 months
  • Memberships

Resource Allocation explained

resource allocation toolshero

Resource Allocation: this article provides a practical explanation of resource allocation . Highlights include: what resource allocation is, how it is done efficiently, how it is used in practice, what the four production factors are, what scarcity is and what frequently used resources in business are. After reading, you’ll understand the basics of this strategy tool. Enjoy reading!

What is Resource Allocation?

Resource allocation is the process in which a company decides where to allocate scarce resources for the production of goods, creating merch or services. A resource can be considered a production factor that’s used to produce goods or services.

Resources can be many things, including labour, machinery, technology, natural, real estate, financial resources, etc. Resource allocation is a fixed element of a successful project and project schedule.

Free Toolshero ebook

Effective resource allocations allows for team members of a project to keep momentum and respect project timelines. Strategic resource allocation is important because the project scope can change during its execution phase.

Resource Allocation is a management activity that’s closely related to strategic planning and strategic (resource) management and resource scheduling.

The value of these programmes is in meeting organisational objectives. The relationship between resources and strategy is a two-way street. The strategy determines which resources are required, but the availability of resources can also limit a strategy.

Efficiently allocating resources to the right places is complex and often hampered by a number of factors, including scarcity, financial criteria, organisational politics, ambiguous objectives, risk aversion, and a lack of knowledge and information .

Production factors and Resource Allocation

We mentioned that resources are production factors. These production factors are scarce and are considered essential for all businesses. There are four production factors.

These are land, labour, capital, and entrepreneurship . These inputs are essential for producing output.

At a larger scale, you could say that production factors produce all goods and services within a nation’s economy. The sum of all goods and services is called the Gross Domestic Product (GDP).

Resource Allocation: Land as a production factor

Land as a production factor refers to all natural resources that are available to produce supplies. It includes untreated properties and everything that comes from the earth.

This can also be non-renewable resources, such as oil and gold. Renewable resources, such as wood, are also part of the land production factor.

When people change the condition or composition of land, it becomes a capital good. Crude oil is an example of a natural raw material, while petrol is a capital good as it has been refined. A grassy meadow in the Alps is a natural resource, but the adjacent farm is a capital good.

The income of this production factor, or the reward, is called land interest.

Labour as a production factor

Labour is the second production factor and encompasses all the work done by people. The value of the worker depends on their level of education, skills, and motivation . Productivity is also an important gauge for the success of labour. Productivity measures how much output is produced every hour.

The reward of the labour production factor is wages.

Capital as a production factor

Capital is the third production factor and includes all capital goods, such as machines, chemicals, equipment, and more that are used for the production of goods or services. There is a clear distinction between capital goods and consumable goods.

Capital goods are intended to support production, while consumable goods are the output of the production process. Examples of capital goods are industrial or commercial buildings, or an airline’s aircraft. A private jet is usually not a capital good, since it isn’t used to produce a good or service.

The income that owners receive on capital goods is called interest.

Entrepreneurship as a production factor

Entrepreneurship is the final production factor that’s essential for the production of goods or services.

Entrepreneurship is what drives people to turn an idea into a successful and profitable business. An entrepreneur combines the other three production factors and adds his own entrepreneurship to expand the supply of goods and services.

The income entrepreneurs earn is called profit.

Scarcity refers to a foundational economic problem: the gap between scarce resources and the theoretically limitless needs and desires of consumers. The situation requires that people such as managers and entrepreneurs make choices about how to effectively allocate resources to supply as many consumers as possible with their basic needs , as well as as many additional desires as possible.

Money and time are prime examples of scarce resources. Most people have too little of one, too little of the other, or too little of both.

An unemployed person has lots of time, but little money. A successful manager may be able to retire a little earlier than lower-level employees, but will have had little free time during their working life. People with lots of money and lots of time are rare.

In a hypothetical world in which every resource such as water, expertise, land and food was in abundance, economists would have nothing to study. It wouldn’t be necessary to decide how to allocate resources.

Things work differently in the real world. Everything costs something. In other words, all resources and production factors are scarce to some degree.

Most resources are therefore scarce. This means society (as well as individual businesses) has to make decisions about what to produce and how.

Resource Allocation: frequently used resources in business

The following types or resources are often used in business. The categories are derived from the Business Model Canvas .

Physical resources

Physical resources includes assets such as buildings, machines, vehicles, systems, distribution networks, and production facilities. Retailers in particular are highly dependent on physical resources. These are often capital intensive. Wal-Mart, for example, has a huge network of stores and related logistical infrastructure. Others have extensive IT solutions, warehouses, and logistical infrastructure.

Intellectual resources

Intellectual resources include brands, patents, copyrights, proprietary knowledge, and customer databases. These are becoming increasingly important components of a strong business model.

Resources for intellectual property are hard to develop, but once developed, they offer significant value, usually. Companies like Microsoft and SAP are strongly reliant on knowledge and software for intellectual property.

Human Resources

Every company needs human resources, but some businesses rely on them more than others. Human resources are vitally important in creative or knowledge-intensive industries, for example.

An average pharmaceutical company tends to rely strongly on human resources like highly-trained medical professionals. The business model of a company like this has an army of scientists and competent smart people at its core.

Financial resources

Financial resources include lines of credit, cash, financial sureties, or shares. The financial resources can be used to procure the other resources discussed earlier.

How do I ensure Resource Allocation is done efficiently?

The scarcity of resources poses a major challenge for managers in efforts to improve business. How do I find the right people for the right job? Resource allocation in the workplace is often the diligent allocation of resources to tasks based on requirements, skills, and timelines.

This forces managers to allocate these based on a specific situation rather than that it’s a purely strategic choice. Applying practices for effective resource management can make a big difference.

Resource allocation steps plan - toolshero

Figure 1 – steps for setting up Resource allocation

1. Apply redistribution

It’s important to make room for strategic redistribution. This is a good first step. Reallocation doesn’t mean that the work being done with an assignment of resources becomes strained.

Strategic reallocation means looking for alternatives to get some extra manpower who can take on more responsibility. This way or reallocation is strongly dependent of the overall visibility of projects and resources. This is essential to employ staff optimally.

2. Diversify

It’s always good to have resources and staff equipped with a broad range of skills, or who are used to performing different tasks. Therefore it’s hugely important that managers recognise and cherish both primary and secondary skills.

If the manager is aware of the abilities of their resources, he or she can quickly resolve any problems that may arise by making the right resources available in the right places.

Take an engineer at a pharmaceutical company, for example. This guy also minored in communication, and vlogs in his spare time. He could be a big asset for the internal marketing department. In addition to product knowledge and knowledge of the technical aspects of the production process, he can also add value to the company’s branding.

This is also good for the employees themselves. Nobody likes to stagnate, and employees will be motivated when given the opportunity to diversify and grow. A good manager doesn’t just understand this concept, but also applies it in his strategy for resource allocation.

3. Stimulate automation

One of the most obvious challenges when allocating resources is the complicated process managers have to comply with when they want to assign new resources to new tasks. This often involves multiple phone calls, email messages, or sending requests to other managers.

An automated resource-allocation process is a special route by which managers can do this independently within a certain scope.

Combined with visibility and transparency, valuable time can now be allocated in other areas. Furthermore, a streamlined process makes it easier to monitor which resources were allocated to which department. This prevents the confusion that can arise when resources cannot be traced.

4. Strive for optimal use of resources via Resource Allocation

Optimal use of resources means a healthy resource-allocation process. When the use and allocation level of resources is optimal, this means that under no circumstances are too many or too few resources being used.

As a result, the output produced by the company is created as efficiently as possible. Optimal use of resources should be the overall result, rather than a lucky outcome. Each method that is used to allocate these has to meet this criterion.

Resource management in practice

Allocating resources to the right departments is part of resource management. Resource management includes the planning, tracking, and optimising of the use of resources such as space, equipment, and personnel.

This process covers planning and management, checking resources, planning start and end dates for certain projects and resources, conflict management, and regular monitoring to be able to implement any needed changes in a timely manner.

Resource allocation and resource management software

Naturally, resource allocation is relatively easy in smaller companies. Larger companies require more tools. One such tool is so-called resource management software. This is also referred to as planning software for resources.

The software is similar to project management software used by managers to plan, allocate resources, and monitor who is working on what project and what resources are needed.

Effective use of such software makes it easy to track the organisation’s capacity in terms of resources and available skills and report on this. It also makes it easier to analyse historical results and use those to make forecasts regarding resource usage.

Advantages of resource management software:

  • The most efficient and effective use of resources
  • Provides a complete picture of an organisation’s capabilities. It prevents overbooking and can be used as an argument for certain recruitment decisions
  • Prognoses about the future become more accurate when analysing historical data

Join the Toolshero community

Now it’s your turn

What do you think? Are you familiar with the explanation of resource allocation? Are you involved with resource management? Are resources used optimally where you work? Do you ever run into issues related to the effective allocation of resources? What do you consider important in resource management?

Share your experience and knowledge in the comments box below.

More information

  • Bazzaz, F. A., & Grace, J. (Eds.). (1997). Plant resource allocation . Elsevier .
  • Harberger, A. C. (1995). Monopoly and resource allocation . In Essential Readings in Economics (pp. 77-90). Palgrave, London.
  • Trigeorgis, L. (1996). Real options: Managerial flexibility and strategy in resource allocation . MIT press.

How to cite this article: Janse, B. (2020). Resource Allocation . Retrieved [insert date] from Toolshero: https://www.toolshero.com/strategy/resource-allocation/

Original publication date: 05/15/2020 | Last update: 10/24/2023

Add a link to this page on your website: <a href=”https://www.toolshero.com/strategy/resource-allocation/”> Toolshero: Resource Allocation</a>

Did you find this article interesting?

Your rating is more than welcome or share this article via Social media!

Average rating 4.2 / 5. Vote count: 14

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Ben Janse

Ben Janse is a young professional working at ToolsHero as Content Manager. He is also an International Business student at Rotterdam Business School where he focusses on analyzing and developing management models. Thanks to his theoretical and practical knowledge, he knows how to distinguish main- and side issues and to make the essence of each article clearly visible.

Related ARTICLES

strategic business unit sbu toolshero

Strategic Business Unit (SBU): Definition and Theory

Golden circle by Simon Sinek - Toolshero

Golden Circle by Simon Sinek

occupational safety and health osh - Toolshero

Occupational Safety and Health (OSH) explained

Total Cost of Ownership (TCO) - Toolshero

Total Cost of Ownership: Definition and Basics

Mathieu Weggeman - Toolshero

Mathieu Weggeman biography and books

allocate resources efficiently

Perceptual Map and Mapping (PERMAP)

Also interesting.

service profit chain model - Toolshero

Service Profit Chain Model and Steps explained

theory of constraints toc toolshero

Theory of Constraints by Eliyahu Goldratt

flywheel concept jim collins toolshero

Flywheel Concept by Jim Collins

Leave a reply cancel reply.

You must be logged in to post a comment.

BOOST YOUR SKILLS

Toolshero supports people worldwide ( 10+ million visitors from 100+ countries ) to empower themselves through an easily accessible and high-quality learning platform for personal and professional development.

By making access to scientific knowledge simple and affordable, self-development becomes attainable for everyone, including you! Join our learning platform and boost your skills with Toolshero.

allocate resources efficiently

POPULAR TOPICS

  • Change Management
  • Marketing Theories
  • Problem Solving Theories
  • Psychology Theories

ABOUT TOOLSHERO

  • Free Toolshero e-book
  • Memberships & Pricing

What is resource allocation? Why it’s important and best practices for maximizing efficiency

In this article, we’ll answer the question "What is resource allocation?", explore the impact efficient resource allocation can have on your firm (and what could happen if it’s inefficient), discuss some of the challenging factors that influence resource allocation, and reveal the best practices for maximizing resource allocation efficiency in your business and overall project management process.

What is resource allocation?  

Resource allocation is the process of identifying, managing and scheduling resources (be they internal or external) to projects in order to deliver on your client’s and your firm’s objectives and strategies.  

It’s all about matching the right resource to the right project based on their specific goals and requirements, ensuring resources are utilized efficiently to maximize productivity and achieve desired outcomes. 

Resource allocation is a fundamental element of project management and resource planning . Effectively allocating resources is crucial for ensuring projects are delivered within a specific timeline and budget—as well as increasing client satisfaction, boosting employee engagement, and keeping a close control of your greatest asset: your people. 

The resource allocation process often starts long before your project does, and can often make or break a project, impacting its quality, speed of delivery, and profitability, with spiralling effects on the satisfaction of both your own staff and your clients… so, it’s not really one to overlook! 

Why is resource allocation important?  

We’ve already touched on why resource allocation is so important in your resourcing strategy, but now we’ll go into more detail.  

Let’s take a look at some of the benefits of an effective resource allocation strategy (and the consequences of poor resource allocation). 

Maximizes productivity  

First and foremost, effective resource allocation is one of the best ways to increase productivity and efficiency within your project team. Project managers can maximize their firm’s resource utilization by matching the specific needs of each project to resources based on availability and skills, getting staff ‘off the bench’ and minimizing non-billable time. 

Ensures profitable delivery  

 With fixed fee projects, where a scope and price is agreed on day one, resource allocation plays a crucial role in ensuring resources are allocated to projects in such a way as to ensure profitable delivery.  

Resource allocation decisions should be taken in the context of the overall budget agreed on the project, how the project is tracking against that budget (‘actuals’ from timesheet data) and the varying costs of different resource grades that could be used. 

When resource allocation decisions are made with budget and cost considerations factored in, asking questions like “Can this be delivered with a lower cost resource?”, there’s a much higher chance of profitable delivery. 

Increases client satisfaction  

If resources aren’t allocated appropriately, multiple projects may experience bottlenecks and shortages which can delay completion and ultimately the overall project delivery timeline. 

When you effectively allocate resources, project managers can ensure projects are adequately staffed and managed, which means projects and services are much more likely to be delivered in a timely, efficient manner. Projects delivered on (or even ahead of) time = happy clients. 

Additionally, when people with the right set of skills, capabilities and knowledge are matched to the right projects, the quality of the work produced is likely to be high. When your clients receive high-quality deliverables, they’ll be left feeling satisfied—and one step closer to becoming a repeat client for you. 

Boosts employee morale & engagement  

Poor resource allocation can lead to either overutilization or underutilization of your resources. When your people are overutilized, they’re much more likely to experience burnout. This can lead to poor performance and even poor retention.  

On the other side of the coin is underutilization, and this can also have negative effects on your people, not just your profitability. Without enough satisfying work that utilizes their skills and specialisms, underutilized people may feel unappreciated and unmotivated.  

When you allocate resources effectively, you massively reduce these risks, minimizing the possibility of overloading or neglecting your staff. 

Factors that affect resource allocation  

 There are a number of factors that can affect the resource allocation process; it’s therefore important to consider some of the factors that will impact your efforts, as well as the potential challenges these may present. 

Project requirements and timelines  

If the requirements of the project scope are unclear or constantly changing, then it’s going to be difficult to accurately allocate the most suitable resources. This lack of clarity can lead to misalignment and inefficiencies, which can in turn lead to significant delivery delays, knocking project timelines off-course.  

Strategic goals and priorities  

When you have multiple projects running concurrently, a conflict of priorities can arise. Project managers must be able to carefully balance overlapping project timelines, priorities and resource demands, minimizing conflict and ensuring optimal utilization. 

Resource availability  

When demand for a certain role or skill rises and demand exceeds capacity, project managers must be able to decide how to most effectively allocate their available resources. If specific expertise is required for a particular project, yet this is in short supply, then this may lead to delays or compromises in project delivery—or the need to leverage external resource.  

Future pipeline  

When you have a really strong pipeline of work coming through, your resource allocation decisions need to solve for today and tomorrow. It’s common practice to reserve or ‘soft book’ resources to future projects, even if they aren’t due to start for a few weeks or months, to build up a more holistic resource picture and potentially factor into any future hiring. 

Best practices for effective resource allocation  

Now that we understand what exactly resource allocation is, what advantages it offers, and the challenges that may be faced during the process, let’s take a look at some of the steps you can take to maximize efficiency in your resource allocation strategy. 

1) Assess your current resource allocation practices  

A good place to start is by evaluating the existing resource allocation practices used within your business. Is a holistic approach taken, taking into account all projects ? Do certain partners circumvent the resource allocation to process to ‘reserve’ favorite staff? Are both live and pipeline projects factored into how you resource ? These are all important questions for project managers to consider before beginning to allocate resources.

2) Define clear goals and priorities  

Once you’ve identified the areas in which you can improve resource allocation efficiency, you can begin to establish clear objectives that will help you achieve this. Consider the specific outcomes you want to achieve, such as better utilization rate or aligning staff to projects based on their own interests and development areas, and use this as a framework for future resource allocation efforts. 

3) Analyze resource needs and priorities  

Now that you know what needs to improve, you need to know which resources will fulfil your objectives by analyzing the project scope. By routinely building out a detailed plan for each project in regular resourcing meetings , factoring in the timelines, stages, tasks and skills needed, an accurate view of resource demand will be created, and comparing this to your current availability of resources, you’ll be able to accurately determine resource allocation priorities.  

4) Leverage resource management software  

Getting all of your resource-related information in one centralized location is one of the most effective ways to improve coordination and efficiency when allocating resources, and resource management software is the best way to achieve this. 

Resource management and resource planning tools will give your firm invaluable visibility and transparency over your resources, with live data giving you the insights and future visibility you need to make the right calls. It’s particularly valuable when project management is tied into resourcing, giving you and your project team the full scope. 

Functionality like resource utilization reporting, resource allocation tools, and skills & competencies tracking will give you and your project team everything you need to match the right people to the right projects, maintain a clear view of resource capacity vs demand , and ultimately achieve your broader business objectives (utilization, development of staff, work life balance etc). 

Centralized, all-in-one systems like PSA (professional services automation) software integrate resource management, project management, capacity planning tools , CRM , BI and more which will help you streamline your resource allocation efforts and make data-driven decisions that improve productivity, efficiency and profitability across all areas of the business. 

Robust tools like PSAs have shown to generate 7% higher resource utilization than spreadsheets , so it's no wonder more and more firms are choosing PSA software to grow their businesses.

5) Promote communication and collaboration  

To get a good understanding of your resource allocation priorities and capabilities, you’ll need to align your different teams and departments. Whilst a ‘bottom up’ project-by-project view is important, don’t forget the ‘top down’ perspective too – across project teams and departments. Encourage knowledge sharing, cross-functional discussions and feedback loops to help identify your resource needs across the whole firm and improve overall coordination and alignment.  

6) Monitor, optimize, review and adapt  

 If you’ve implemented some or all of the recommended practices above, you should start to see significant improvement in your resource allocation process. But don’t just sit back and watch—resource allocation is never “done”, as the combination of people, projects and pipeline is in a constant state of flux.

You’ll want to review any new strategies you implement and assess the impact they’ve made, and most importantly whether they’ve helped to achieve your desired outcomes. It’s a constant process of tweaking and refining your efforts, capturing lessons learned, and sharing this with the rest of your team. 

Conclusion  

Resource allocation first comes into play at the beginning of scoping a project, yet it can make a significant impact on project and business outcomes well beyond delivery. With effective resource allocation, you’ll see happier clients, happier staff, and higher profitability for your business. 

Resource allocation is something that needs to be constantly monitored and optimized to achieve optimal performance, so it’s important that you always keep your finger on the pulse. Make sure to give your entire organization visibility over your resources and project pipeline—especially when you’re rapidly growing and resource demand has the potential to outstrip resource capacity.  

When your resource management, project management, CRM and more are all available in one centralized location, you’ll have all the tools and data you need to start making the right calls—and seeing the right results. 

For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy.

Similar articles

allocate resources efficiently

Storage wars: Physical servers vs cloud-based systems

allocate resources efficiently

When should an architectural firm implement a document, drawing, and email management system?

allocate resources efficiently

AI and Architecture: What does the future hold?

allocate resources efficiently

Building the perfect system: the benefits of a centralized document, drawing, and email management solution

Book a demo.

To see exactly how we can help you drive your company in the right direction, book a demo with an expert.

allocate resources efficiently

👋 We're hiring!

A quick guide to resource allocation: how to maximize your team’s time and skills in 2024

Learn everything you need to allocate the best and available people to projects.

Stella Inabo

Stella Inabo,   Content Writer

  • resource management

Resource allocation helps resource managers schedule the best team for the job and streamline how work is assigned, based on resource availability.

Ideally, resource allocation should be fairly easy: you line up your projects ➡️ divvy up your people’s time ➡️ the project gets delivered ✅ 

Most articles on resource allocation will describe this process as if it represents the real world. 

But in reality, what you are dealing with is: 

  • A team with a limited amount of time and a large number of requests
  • Team members with paid time off, national holidays, unforeseen sickness
  • A long list of projects you could potentially assign your people to (and more incoming)
  • Your boss wanting you to deliver the project for Acme yesterday

Resource allocation is not as easy as it seems—yet thousands of our customers get it done daily while juggling the factors mentioned above.

Is it magic? Luck? Or is it the fact that they have solid resource allocation processes in place and the right tool for the job? 😉 You decide. In this guide, we’ll share and show you some effective resource allocation tactics we’ve sourced from our customers so you can successfully allocate your team’s time.

What is resource allocation in project management?

Resource allocation is the process of identifying and assigning available resources—including people, time, money, and equipment—to projects while considering a team’s availability , skill sets, and interests. 

Usually, a resource manager, project manager, or team lead is in charge of allocating resources.

What do we mean by resources?

In the general sense, ‘resources’ usually refer to the tangible and intangible elements used to carry out a project, like team members, equipment, software, time, money, etc. But the term “resources” can obscure the fact that we are working with living, breathing people. So, in the rest of this guide, we are going to use language that shows the humans behind the work. For example, we’ll write “schedule your people’s time in your resource management tool” instead of “schedule your resources in your resource management tool.”

A resource allocation plan can look as simple as this👇🏿

A table showing possible allocations for team members of Float content team

An example of a simple resource allocation plan from our content team

Or look as detailed as this:

A team’s schedule in Float

Float helps you allocate your team’s time with extra context about their capacity and skills

That being said, let’s make an important distinction between two terms that are often used interchangeably.

What is the difference between resource allocation and task allocation?

Resource allocation is not assigning project tasks to people. It focuses on identifying the right and available people for a specific project and deciding what amount of their time to assign to it.

After you’ve allocated your people’s time to projects, you move on to task allocation, which is assigning specific time blocks or hours to perform particular tasks within a project.

For example, your team has three projects to work on, and team members usually work 40 hours a week. So, you allocate a team member to work 20 hours on Task A and 10 hours each on Task B and Task C. That is resource allocation.

Allocation page in Float

You can allocate time to projects by clicking and dragging across a date on the Schedule in Float

Once you’re done with that, you move on to the next phase by assigning specific tasks, e.g., building a wireframe or creating a mockup, to specific people. That is task allocation.

Resource allocation should be done in your resource management software, while your detailed task allocation should be done in your project management tool. 

Resource management software provides information about the people on your team–their skills, interests, and availability– all crucial information needed for resource allocation.

4 signs you need to improve your resource allocation

Poor resource allocation can be glaring–bottlenecks that stall a project–or very subtle–overworked team members. 

1. Your team is suffering from too much context switching

“One of the signals of poor resource allocation is a lot of context switching where a team member is regularly jumping between different projects and trying to juggle a lot of work at the same time,” says Colin Ross who leads the engineering team at Float.

It might seem like the multi-tasker is doing a good job, but the work might be subpar. “While multi-tasking can look efficient, in terms of output it’s never a good idea—there is little chance for the kind of deep focus generally needed to create high-quality work.”

2. Your team keeps running into bottlenecks

Frequent bottlenecks indicate that your people need to be allocated properly. Ross suggests looking out for “projects that are stalled because some critical resource is unavailable, thereby blocking the next stage.”

Suppose you have too many projects on pause because team members don’t have the capacity to finish their work. He suggests identifying the jobs necessary to complete a project and focusing on completing them first. 

3. Your team has too many active projects

It is tempting and common to pursue new ideas or take on new projects without considering whether we can handle them. 

Ross points out this is a sign of poor resource allocation: “Having too many projects taking place simultaneously is also a sign of inefficiency if the teams working on those projects are not partitioned.” More often than not, taking on too many projects compared to your actual capacity to do them can lead to the first two problems of bottlenecks and context switching. 

4. You don’t have a single view of team capacity

An additional sign of poor resource allocation is a lack of a shared source of truth for who is working on what, and when. Here is Alice Winthrop, Senior Product Manager at Float: “If you don’t know what people are working on, what kind of utilization rate or capacity you have, then you have no way of knowing how well or poorly your people are being managed.”

How to allocate resources (the right way)

In project management, resources are allocated based on project requirements, budget constraints, timelines, and resource availability. This typically involves identifying the necessary human, financial, and material resources and assigning them to specific tasks or activities within the project plan.

At Float, we make listening to our customers– project planners and resource managers– a priority. This is why, after speaking with several of them, we came up with a set of steps they follow to allocate their people’s time to projects while juggling many variables. 

The steps below are written with the assumption that you are looking to do resource allocation for several projects with a team of 20-50 people. 

If that sounds like you, keep reading 👇🏿 

At its core, efficient resource allocation focuses on two steps: 

  • Identifying what projects to prioritize 
  • Determining who is best and available to work on projects

Let us break it down. 

Step 1. Identify what projects to prioritize

At any point in time, several projects are waiting to be done—but your team has a limited number of hours to work on them. This means you have to prioritize projects and spend time on the ones most impactful to your organization, whether in terms of improving revenue or client relationships.

For example, our customer, Emily Feliciano , the creative resource manager at Atlassian, deals with up to 60 resource requests every week . To help her prioritize the projects to allocate people’s time, she uses a set of questions based on urgency, business value, and cost. 

Business value 

  • Are we mending a broken relationship with a client we really want to salvage? 
  • Is this a new opportunity to partner with a client we have been seeking for a long time? 
  • What is the priority of this work? 
  • What is the level of importance of getting this work accomplished? 
  • Is there flexibility in the timeline for us to deliver?
  • Is there a large budget attached?

A decision tree diagram with steps to determine what projects to prioritize

Resource allocation decision tree

Ideally, tasks that contribute to the business, are urgent, and have bug budgets should be prioritized when allocating project resources.

Step 2. Determine who is best and available to work on projects

Once you know the projects you need to work on ASAP, you need to determine who is the best person who is both skilled and available to work on them. 

Because you’re working with humans and not machines, you don’t just need to consider the amount of time they are available to work for: you also need to evaluate what projects excite or spark interest, and what your team is stellar at. 

If you can balance the three, you’d have an enthusiastic crew willing to do their best to deliver successful projects—and who have enough time to do it, too. 

Otherwise, you’d have a team of unmotivated people pushing out projects just for the sake of it.

Consider how your team ’ s skills align with a project 

Do you have people with the right skills for the project? Do you need a generalist or a specialist? Or do you have to look outside your team and hire a freelancer?

Getting the people with the right skills to work on a project has two benefits: the job gets done well and probably faster than getting someone who doesn’t know how to do it (unless it is a training opportunity).

For example, if you’re doing an SEO audit for your website, ideally, you should work with an SEO specialist instead of working with a generalist digital marketer.

Person tags in Float

You can find people with the right skills using person tags in Float

Identify team members who are available

Allocating people with insufficient time can lead to tasks being done poorly because of the rush to meet deadlines or constant context-switching. Your project might even grind to a halt because interconnected tasks are not delivered on time. 

But by asking some questions before allocating work, you can avoid all of these problems: 

  • Does anyone have time off planned during the duration of projects?
  • Is anyone on sick leave?
  • Are any national holidays coming up?
  • What are their work hours (e.g. are they working full-time or part-time)?
  • How much of their time is already allocated to other projects? 
  • Can their current allocations be negotiated?

There’s a catch. If you try to answer these manually, especially if you have a large team, you might notice that it is an extremely tedious process, and you don’t have all the data you need. 

It is best to use resource management software that gives you a full view of your team’s capacity so you can see at a glance who has PTO, is on sick leave, or has a national holiday coming up. 

Team schedule in Float showing work allocations and annual leave

Float alerts you if work is about to be scheduled on a non-work day

Align allocations with your team ’ s interests 

During the resource allocation phase, don’t miss the chance to get your people to work on things that pique their interest or challenge them. 

For example, you might have heard team members express a desire to work on a certain kind of project. Or, as a manager, you might proactively decide that they should try out new types of projects. 

Resource allocation is an opportunity to assign your team members to projects that help them grow and develop their skills.

For example, our customer Jason Fisher at Flight Story makes sure he rotates the video editors and the team participating in shoots, so everyone on the team gets an opportunity to work on a variety of projects that interest them instead of just doing the same thing over and over again. 

What to do when your resources aren’t enough

Sometimes, even with careful, strategic planning, your team might need to put in extra hours. While it’s not ideal, it happens. 

Here are some guidelines to prevent your team from getting too overwhelmed in those cases:

  • Try to limit the extra workload to a short time to avoid exhausting your team. 
  • Talk to your team about why the extra time is needed and what steps you’ll take to manage the workload , like finding extra help or hiring freelancers. 
  • Make an effort to find extra support to lighten the workload for your team.

A real-life example of resource allocation from Float’s engineering team

Back in September 2023, the engineering team at Float had several projects they needed to allocate the team’s time to: 

  • Short-term projects scheduled to be shipped before our annual team meetup in late September 
  • Long-term projects to be shipped after our annual team meetup.

To make them all happen, they had to consider several things, including resource constraints, projects to prioritize, and their existing workflow.

At that time, the team comprised eight engineers evenly distributed between the front and back end. Their time was divided between:

  • Current ongoing work like the rollout of the cache API
  • Ongoing work that required more time to finish, like the Timer and changes to our Project planning and Estimation features
  • New work they wanted to start, like automating dependency updates
  • Regular commitments like the Support Champion who analyzes customer issues and provides concise steps for solving issues and Release Manager who coordinates tasks and team members for a smooth release.
  • Ongoing hiring process involving several engineers.

To strike a compromise between competing tasks and decide what allocation of time went to what, the team referred back to Float’s Principles for Success and the Product Vision.

As a result, product-led and engineering-led work received the most hours, while tasks related to marketing and customer success were allocated less time.

While allocating work, the team also paid attention to each member’s interests and strengths. For example, one of the engineers, Guido, had experience and interest in performance engineering, which made him the best engineer to handle lazy computation on our schedule.

Throughout the resource allocation discussions, open communication was encouraged by using a public Slack channel. The plan itself was shared in Notion, allowing everyone to contribute and fine-tune it collaboratively.

Allocations of Float team members

The engineers' time were allocated to different projects based on priority levels

How to handle resource allocation problems

Even if you adopt all the right tools and follow resource allocation best practices, you will probably still run into problems. Hiccups are going to happen, so it's best to be prepared! 

Let's take a look at some of the top challenges project managers face and how to overcome them. 

The project scope changes

You did your best to plan resources for your upcoming projects, but there's still the chance of scope creep. Maybe the tasks were more extensive than expected or required skills you didn't account for. 

You need to be nimble and adjust your resource planning accordingly when this happens. To prevent scope creep , you should:

  • Ensure project scopes are always transparent and defined
  • Set clear and defined project goals
  • Strive to do your best work, but don't be a perfectionist if it will cause delays
  • Build a work plan that guides your course of action
  • Create a system that allows workers to greenlight change requests and revisions
  • Monitor team performance to ensure everything is on track
  • Use all the tools at your disposal to speed up progress

Sometimes it’s impossible to avoid scope creep. In such cases, having a scope change process helps you adapt fast and get back on course. It may look something like this:

  • Submit a specific form to document change requests (in writing)
  • Analyze the revision request to understand the scope creep thoroughly
  • Get approval from the main stakeholders
  • Document the approved scope changes in writing

Resources become unavailable 

Uncontrollable outside forces prevent scarce resources from showing up as expected. A worker’s car breaks down, and they can’t get to the office. Or maybe they have other priorities in the organization that trumps working on a task you assigned them. What matters is what you do next.

Work quickly to find a replacement within your talent pool. If there’s no one available with the skills you need, hiring a freelancer or contractor may be the best option. You can prevent this in the future by looking at task dependencies. Investigate other responsibilities team members have that may pull them away from the project.

Have a backup resource allocation strategy if they are unavailable for whatever reason. One option is to have a pool of freelancers you can count on to fill in gaps on a whim.

Resources need to be shared

It’s common for projects to share the same resources. This is especially true in smaller organizations that can't afford to hire an extensive staff roster. As you can imagine, shared resources can lead to issues that bog down the pipeline. Project bottlenecks may occur if resources are spread too thin. 

Use your resource allocation software to spot gaps in advance. Closely monitor the workloads of team members who move between several departments. It’s the best way to prevent over-allocating resources and burnout. 

Unexpected delays occur

A delay can hit when you least expect it. People get sick, labor shortages arise, and miscommunication happens. That’s when scope creep may rear its ugly head. Some issues are within your control, and others, not so much.

The most straightforward way to deal with issues is to try your best to prevent them in the first place. You can:

  • Schedule tasks based on skill, not just time. An expert or specialist works faster. Using Float, you can create custom skill tags for team members so you can find the right person for the job in seconds.  
  • Avoid overloading team members with too many other priorities—especially if the task depends on them to move through the pipeline.
  • Offer flexible hours. Some employees work more productively outside of traditional working hours. 
  • Map out project timelines, break them into phases, and track progress. Software helps to pinpoint potential delays before they become bottlenecks.

The more organized and transparent your resource allocation, the easier it is for everyone to take accountability for their role.

Use resource management software for efficient resource allocation

Most of our customers switch from using spreadsheets or project management tools for resource allocation because they encounter one (or all) of the following: 

  • Their team grew and the spreadsheet became inadequate 
  • They need to do a lot of manual updating 
  • They couldn’t tell the accurate availability of resources

If you can relate to these, it means you need to switch to a resource management tool. We might be a bit biased on this point because Float is a resource management software, but hear us out. 

Because resource management tools have all the features you need for allocating your people’s time, they make the process less cumbersome and more accurate. For example: - They’ll give you an updated overview of your team’s schedule up-to-date, complete with their availability to facilitate informed decision-making - You’ll be able to save details about your team, like their skills and work hours, and note their interests - As your project progresses, you can see how other projects might affect their availability (and yes, if you’re wondering, Float does all three. And many more.)

Allocation option in Float

You can efficiently allocate time to projects in Float

If you want to find the best option, take a look at this list of the best resource management software we curated for you, complete with feature and pricing comparisons. 

And if we’ve already convinced you to give Float a try, sign up for a free trial 🙌 .

Plan your resources with the #1 rated resource management software

Allocate resources with the #1 rated resource management software

With Float, you can plan your projects and allocate resources with confidence. Try it free for 14 days, no credit card required.

Related reads

Resource allocation and capacity planning: what’s the difference, what is resource planning a simple guide for 2024, 9 metrics you need for effective resource tracking.

Project Management Why You Need Resource Allocation & How to Be Effective At It

Daily Jobs › Project Management

Why You Need Resource Allocation & How to Be Effective At It

detailed guide to effective resource allocation

When creating their project plans, project managers pay a lot of their attention to the project idea, objectives, and the development process, sometimes overlooking the importance of resource allocation. 

But, seasoned managers know that project resources are always limited and require careful handling. To avoid unexpected shortages in staffing, equipment, budget, or other resources, you need to learn how to allocate what you have the right way. 

In this article, you’ll discover:

  • What is resource allocation?
  • Why is resource allocation important?
  • How are resources allocated?
  • What challenges can you run into when allocating resources for your project?
  • What are the best tips for effective resource allocating?

Resource Allocation Definition and Types of Resources

In a nutshell, resource allocation is the process of assigning resources in the most efficient way possible.

When referring to resource allocation, a lot of project managers use this as code for staff management — finding the right people and efficiently assigning project tasks among the team. 

However, resource allocation is so much more than that. It also includes other types of resources that managers should wisely distribute throughout a project so that it achieves its goal within the budget and time.

Other examples of resources for allocation include:

  • Stakeholders — in most cases it’s team members who possess expertise in various fields, e.g. designers, software developers, risk managers, or anyone who can contribute their skills to the project.
  • Tools and equipment — any inventory, including hardware and software needed to complete the project. The type of inventory will vary depending on the project and the organization’s activity.
  • Facilities — the working environment needed to launch, manage, and fulfill the project. This could be an office, workstation, a meeting room, a testing ground, and others.
  • Materials — any expendable items such as office supplies, specific product components, fuel for commutes, and many others.
  • Budget — the money needed for purchasing the resources listed above.

This list of resources contains the most common examples, though they aren’t standard and you can change them according to your project needs and requirements.

Why Is Resource Allocation Important?

The availability of the right resources at the right time is essential for a project’s success.

Any project consists of interconnected tasks; when one activity depends on the others. This means that if a team doesn’t have the needed resources to finish a task on time, other tasks will move further down the timeline. As a result, the team will miss its deadlines.

Lack of specialists, equipment, and materials always delays tasks, extends deadlines, and can eventually lead to project failure. To avoid the negative consequences, project managers should be well-trained and implement project resource planning techniques in advance. This will help them to ensure the availability of resources throughout the entire project, avoid resource conflicts with other projects, and define the resource gaps in time. 

Carefully performed project resource planning can benefit your project in many ways:

  • Lower project resource costs
  • Improved resources visibility throughout the company
  • Efficient use of resources 
  • Improved employees’ engagement and satisfaction
  • Successful product development
  • Effective resource planning in case of any resource constraints
  • Simple resource booking and its negotiation with other project managers.

Everhour is the top choice for small businesses and small to mid-size teams of 5 to 50 members, including professionals like software developers, marketers, designers, consultants, lawyers, you name it!

Seamlessly integrating with popular project management tools like Asana, Trello, and Jira, its user-friendly interface and customizable reports make it the ultimate time tracking solution for small and mid-size teams.

With dedicated support ensuring you receive timely assistance, our team is here to help you promptly and with a smile!

How Are Resources Allocated?

Now we know what resource allocation is and why it is important, let’s move to the practical steps and have a look at how to allocate your resources effectively. Here is what you need to do.

1. Build your project timeline

For proper resource allocation, you need to start with your project plan and identify the methodology and its main phases . The phases usually include 5 major stages — initiation, planning, execution, monitoring and controlling, and closing.

Then, define the length of each stage and mark their milestones . 

As you divide your project into measurable parts, define and add the key tasks to each phase.

Now, you can place all your project phases, milestones, and the most important tasks on a project timeline . The timeline will help you to determine the project initiation and its closure dates, task dependencies, deadlines, and other important factors that ensure the stable development of your project.

2. Identify project resources

The project framework is ready and by this time you’re clear with the activities that are going to happen at each stage. Now, you need to consider what type of resources you’ll use to pass through each stage successfully. 

It’s easy to do with resource management systems. They gather all the data from the previous projects and indicate the resources available in the organization. 

The hardest part at this stage is to define the scope of the project team , their experience, skills, qualifications, availability, and costs. Project managers have to gather a team of professionals with sufficient qualifications and diverse expertise who would fit the project budget. 

Besides that, they need to make sure that the specialists they choose aren’t overbooked for other projects and are in the same time zone if the team is remote . And the equipment needed for sustainable project development will be available at the right time. 

3. Allocate the resources

When allocating resources the three most important questions for project managers to answer are:

  • What tasks does the team need to perform and by what time?
  • What resources does the team need to complete these tasks?
  • Are these resources available?

At this stage, it’s essential to keep the balance—under-allocating, as well as over-allocating, can be bad for the project. When under-allocating, the productivity of your team and project revenue can decrease. Overallocation can lead to burnout and poor quality output. 

This way, project managers should plan the current and further resource allocation carefully to optimize resource utilization, resulting in improved business efficiency. 

4. Monitor project schedule

Resource allocation in project management is a subtle process. The availability of resources or their amount can suddenly change with the project development challenges or schedule adjustments. Therefore, resource allocators have to keep their eye on how the project is developing and its schedule.

The aspects to watch over:

  • Any delays in the tasks that can cause the deadline shifts in the dependent tasks
  • Team members with too many put-in hours
  • The shift of business goals or objectives that can result in resource allocation changes
  • Sudden sick leaves or unscheduled day-offs.

To estimate if the team members work to their full potential, you can use a simple formula:

Resource utilization = Team members busy time / Team members availability time

Most Common Challenges and Solutions of Resource Allocation

A smoothly developing project is a joy for a project manager. Though things don’t always go according to plan. The best way to avoid challenges and bottlenecks with project allocation is to prepare. Let’s have a look at the most common issues that can happen when allocating resources and find out what you could do in each case.

Project scope changes

🧐 Problem: Project scope changes can happen anytime throughout the project development. Especially when it comes to Agile methodology when project requirements often change on the customer’s demand. This results in an adverse impact on the project resource planning. 

✅ Solution: To tackle this problem, a lot of project managers rely on an up-to-date resource calendar and frequent resource allocation. The calendar helps to easily adjust the resources whereas frequent allocation better adopts them to the project needs.

Absence of data on resource availability in the company

🧐 Problem: Sometimes it can happen that an organization has enough resources for a project but the manager doesn’t have access to this data. This issue occurs when a company lacks a visual hub that could gather information on resource availability in one place. 

✅ Solution: Project managers could use centralized resource planners that contain the data on each employee, their current workload, their engagement in various projects, etc. For example, Everhour’s resource planning feature. This simple and user-friendly tool visualizes the working process and resources involved in the project. This way, project managers can absorb all the data on resource availability and project advancement at one glance:

detailed guide to effective resource allocation

Project dependencies

🧐 Problem: It’s highly likely that your project will include the major tasks that your team needs to fulfill first and the minor ones that go after. That’s what’s called task dependencies. Unfortunately, when you don’t have enough resources for the major tasks, you can’t move further in your project. As a result, the team misses deadlines and the attempts to catch up with the schedule may result in poor product quality and team members’ burnouts. 

✅ Solution: To define task dependencies on a project, project managers have to deeply analyze and prioritize the tasks, and visualize their dependencies. For this, they use a time-tested method — Gantt charts. These charts display all the project tasks and their dependencies placed on a timeline. This allows all the project stakeholders to quickly examine the data and realize what task goes next.

Priorities across the company

🧐 Problem: Running more than one project simultaneously is a common practice for many companies. The downside of this routine is that similar projects often have an alike set of resources and can have the same timeframe. Unfortunately, the total amount of resources in any company is always limited and it can lead to conflicts over them between two and more projects. 

✅ Solution: For effective resource allocation, project managers should learn how to prioritize and negotiate over resources for all the projects’ needs. It’s much easier to do when you have effective software that gathers the data on resource availability across the entire company. 

Outdated project resource planning tools

🧐 Problem: Some managers prefer using good old-fashioned tools like spreadsheets and others for quick project planning and resource allocation. Although this approach may seem super-fast at the beginning, it’s highly likely to result in delayed project development later on. The reason is a cumbersome interface for other stakeholders which takes time to figure out how to use the software and read the data. 

✅ Solution: Project managers need to find a digital solution with an intuitive and visual interface clear for every project stakeholder. This will accelerate project development and allow the project participants to quickly grab the data on resource allocation and project progress.

Best Tips on Allocating Your Resources Effectively

There is no limit to project perfection. If a project manager decides to improve their project, this activity can turn into endless work. Nevertheless, there are always some quick, practical steps that can significantly improve the current situation. Here, we would like to share the most valuable tips to help you make your resource allocation more effective. 

Know your project team

Project success greatly depends on the project team’s efficiency. However, gathering a team of experts who have sufficient skills and experience to meet all the project demands can be challenging. For this, you have to go further than just job titles and deeply investigate each team members’ capacity, knowledge level, and experience. 

Uncover risks at the early stage

A forewarned project manager is forearmed against the possible risks. Project managers have to pay much attention to each project detail and analyze the possible project risks. For example, you can calculate the Critical Path of your project and find the best way to avoid any potential problems, and allocate your resources wisely.

Analyze your projects

Use the data from the previous projects to forecast the development of the current one. Just find the project management tool that can generate detailed reports on projects’ outcomes, teams’ performances, and other metrics to better estimate the project’s KPIs, employees’ payroll, and other essential factors. 

Encourage your employees to choose the projects of interest

If possible, give your employees a chance to choose from several projects to their tastes. This will invoke their genuine interest in the project they are working on, and they’ll be more willing to contribute to it. Also, this simple trick can help the employees to avoid burnout and encourage them to be more creative in their work. 

Promote skillsets diversification among your employees

Motivate your employees to have more than one skill. This way, it’ll be easier to allocate resources, choosing from various skill sets. This approach also encourages employees to grow in their job, becoming more experienced and better prepared for upcoming projects. You can do this by establishing some extra courses in the office or sending certain employees on further training courses. 

Conclusion on Resource Allocation

A well-established process of resource allocation is a sure way to project success. It helps you to save the budget and your project team to use the best project resources and meet the project deadlines. 

We, at Everhour, hope that now you know how to allocate your resources wisely and wish you success in the upcoming projects.

everhour

All-in-one time management system for your team

Estimate tasks, set budgets, customize reports – direct in your project management tool. ✔️ Asana time tracking ✔️ Trello time tracking ✔️ Basecamp time tracking ✔️ Jira time tracking ✔️ GitHub time tracking ✔️ ClickUp time tracking ✔️ Monday time tracking

Mike Kulakov

Mike Kulakov

IT entrepreneur, executive and a former engineer. Responsible for company growth as well as the team’s motivation. Big fan of playing tennis, snowboarding, traveling, reading books, and (of course) I live and breathe our product.

What Is Resource Allocation In Project Management?

Jitesh Patil

Resource allocation in project management deals with finding and assigning the right resources to the right tasks at the right time. Allocating the right resources at the right time could be the difference between project success and failure.

No wonder, according to this Wellingtone report , resource management is the third biggest challenge for project managers.

Resource management is one of the top project management challenges.

In this article, you’ll learn:

  • What resource allocation in project management is
  • Who’s responsible for allocating resources
  • Why is it important
  • The resource allocation process
  • And common resource allocation challenges faced by project managers

Ready to dive in and deliver successful projects, stress-free?

Let’s get started.

What is resource allocation in project management?

Resource allocation is a process in project management that helps project managers identify the right resources, and assign them to project tasks in order to meet project objectives.

Project resources can be material, equipment, financial, or human resources.

Typically, resource allocation is done during the early stages of a project’s lifecycle. Specifically, it’s a step in resource planning , which, in turn, is a step in the project planning phase in project management.

A project manager needs to consider the following factors during resource allocation:

  • Skills: the skills that can help achieve the project objectives
  • Capacity: the number of theoretical hours a resource can work during the project schedule
  • Availability: the number of available resource hours, after excluding time off and culture hours from capacity
  • Utilization: the number of productive hours a resource can put in, typically 80% of available hours

Resource planning tools make it easy to identify available resources and allocate them to a project.

Who is responsible for allocating resources in project management?

A project manager is responsible for resource allocation in project management. In larger organizations, resource managers are responsible to allocate resources from the resource pool.

Before a project manager resource planning and allocation, they must:

  • Get a sign-off on the project scope.
  • Identify all critical project tasks using Work Breakdown Structure ( WBS ).
  • Create a project schedule and a project timeline .

During resource allocation, the project manager must work closely with:

  • project stakeholders, including the customers and the project team members
  • other project managers, in cases where multiple projects share the same resources
  • identified resources to determine if their capacity and availability are in line with project objectives

Large organizations often have dedicated resource management teams. In such cases, the project manager needs to work closely with resource managers to ensure that resource requirements are met.

Why is resource allocation important in project management?

The benefits of following the right resource allocation process in project management include:

Efficient resource utilization

Assigning resources the right way ensures that limited resources are used in the best possible way to achieve the project’s goals. It helps make the most effective use of the team’s capacity among different projects and tasks.

Mitigate resource risks

Proper allocation of resources helps identify resource constraints that can cause project delays. It enables managers to anticipate potential risks and take remedial measures. Thus improving the chances of project success.

Reduces scheduling conflicts

Time off and shared resources across multiple projects often result in scheduling conflicts. Planned resource scheduling ensures that the project timelines don’t conflict with resource availability. In addition, it takes care to minimize resource dependencies while ensuring that the project stays on track.

Improved cost management

Deliberate resource allocation helps project managers track progress, and manage resource costs, which leads to better cost management. As a result, it reduces the possibility of the project budget going overboard.

Better project outcomes

Effective resource management leads to fewer project failures. When the right resources are assigned to the right tasks, it results in better project outcomes. As a result, project goals are met within the timeline and budget.

Improved project team productivity

Done right, resource assignment ensures optimum resources are allocated and avoid overallocation. This, in turn, prevents overwork, stress, and burnout. As a result, team productivity improves.

3 resource allocation strategies in project management

A resource allocation strategy is a method by which a project manager ensures the right resources are assigned to a project and its tasks. Three popular resource allocation strategies include:

Critical Path Method (CPM)

Using this resource allocation strategy, a project manager identifies tasks that cannot be delayed without delaying the project schedule. Then the project manager prioritizes the best available resources for these critical tasks.

The biggest advantage of CPM is that it ensures the project’s time constraints are met.

However, it does not allow multi-tasking. As a result, while time constraints are met, resources need to be allocated for a longer duration than necessary.

Critical Chain Method (CCM)

The Critical Chain Method is a newer resource allocation technique. Its focuses on resource constraints instead of time constraints like in CPM.

Considering resource availability and constraints, a buffer time is added to the initial project estimate . This allows project teams enough time to complete the project on time.

Some managers use CCM along with CPM.

Resource leveling and smoothing

Things don’t always go according to the resource allocation plan—An emergency means a team member is no longer available. A task takes much longer than estimated. Or something else happens that throws your project timeline off.

In such situations, a project manager can do little else but change the initial project plans.

In resource leveling, a project manager changes the project schedule, including the start and end dates, to account for resource availability.

However, that’s not possible with all projects. In such cases, the project manager uses resource smoothing—They change the resource schedule and allocation plan, or in extreme cases, bring in more resources.

How to allocate project resources effectively?

The project resource allocation process involves identifying and assigning the necessary resources to complete a project successfully. Here are the steps involved:

Step 1: Identify project requirements

Start by identifying the project requirements , including the scope, objectives, and deliverables. This is the first step to identifying resource requirements.

Step 2: Map out the project schedule on a timeline

Next, identify the major tasks needed to complete the project. The Work Breakdown Structure, or WBS in short, is a reliable framework for breaking down a project into deliverables and tasks.

Once you know all the tasks, identify dependencies and estimate how long each task will take.

Based on the estimates and the project requirements, make a project schedule and map it on a timeline.

This may seem like a lot of work. But, creating a project timeline with Toggl Plan is really easy. You can import all your tasks in a CSV file and then simply drag and drop the imported tasks to create a beautiful-looking timeline.

Toggl Plan's Project Timeline makes it easy quickly create a visual project schedule.

Step 3: Define resource requirements

Now that you know what tasks must be done to deliver the project, you’re ready to define the resource requirements.

You need to identify both, the quality and quantity of resources needed. The quality of human resources can be judged based on skills, experience, and certifications. While quantity simply means the number of people or other resources needed to deliver a task or a project.

Step 4: Allocate resources

Armed with the information in the first three steps, you’re now ready to dip into the resource pool. The resource pool is where you’ll find all the available resources within your company.

For effective resource allocation, look out for resources that:

  • Aren’t on other assignments,
  • Aren’t on an absence such as a holiday,
  • And meet any time zone restrictions the project may have.

Some team members (for example, designers in a web design agency) often work on multiple projects at the same time. In such cases, you want to reevaluate resource availability based on their allocation to other projects.

Just like the Project timeline, Toggl Plan also has a team timeline .

This makes it really easy to identify available resources. On the team timeline, you can see what each team member’s schedule looks like, across projects and their time off plans.

Get a quick overview of resource availability across projects using Toggl Plan's Team Timeline.

Step 5: Monitor resource utilization

In spite of all the planning, things could still go wrong. Project scope changes, emergency time off, or task delays can throw your best project resource plan off.

That’s why you must constantly monitor resource utilization to identify over or under-utilized resources. Monitoring helps you:

  • Release unused or under-allocated resources
  • Use resource leveling or smoothing to get over the resource crunch

It also helps to have a backup resource allocation plan when nothing else works. For example, you could hire freelancers or outsource work to partners.

Today, most project management software comes with features to track resource utilization. Alternatively, you can use a resource loading chart.

Common resource allocation challenges and solutions

We live in a world where change is constant. And, to deliver projects on time, you need to adapt your plan constantly. That’s what makes resource allocation so difficult.

Here are some common problems that can trip you.

Changes in project scope

Workloads can change at any moment. Scope changes will undoubtedly lead to your resource requirements changing, so you need a resource allocation plan that’s flexible.

Solution: Fully assess scope changes before they’re approved. Then identify if the current resource allocations remain sufficient or whether changes are required.

Changes in resource availability

Resource allocation is rarely static and there are many scenarios that bring changes. Whether that’s a team member off sick or a late supplier delivery, try to factor contingency into the resource allocation process.

Solution: When building your initial project plan, try to factor in some resource contingency. This will give you room to maneuver for minor changes. If the consequence is major, take immediate action to source replacements.

Task delays

No piece of work is without its dependencies. That’s why a delay in one task has a cascading effect on other tasks, sometimes across projects. Because of this, you lose your resource availability window.

Solution: When building your initial project plan, identify key dependencies and make contingency plans for those resources.

Level up your project management with efficient resource allocation

Every one in four projects fails, because of resource dependencies.

Understanding how to allocate resources and planning project resources can be the difference between a successful and a failed project. That’s why resource allocation becomes so critical.

Also, allocating resources is not a one-time planning phase activity. Situations change. And, that’s why the need to monitor your resource plans continuously.

Toggl Plan is a beautifully simple project planning tool that can help you manage your resources and deliver a project on time.

Sign up for a free 14-day trial account .

Jitesh Patil

Jitesh is an SEO and content specialist. He manages content projects at Toggl and loves sharing actionable tips to deliver projects profitably.

Join 30,000+ subscribers getting the best tips on productivity, work management, hiring and more!

We promise we won't spam you and you can unsubscribe anytime.

You might also like...

Related to Project Management

Top 10 Microsoft Project Alternatives For Everyone (Freemium, Open Source & Mac Apps)

Top 10 Microsoft Project Alternatives For Everyone (Freemium, Open Source & Mac Apps)

Toggl Blog, Read articles by Jitesh Patil

10 Best Consultant Project Management Software (2023)

Toggl Blog, Read articles by Toggl Team

The Complete Guide To Creative Project Management

Take a peek at our most popular categories:

logo 1920x576

How to Allocate Resources in project management efficiently

How to Allocate Resources in project management efficiently

Learning how to allocate resources effectively is a critical aspect of project management. It involves assigning the available resources – including human talent, machinery, tools, materials, and budget – most efficiently and effectively to complete the project successfully. 

In contrast, poorly allocated resources can lead to missed deadlines, increased costs, and unsatisfied stakeholders. And in the worst-case scenario, it can lead to a complete failure of the project.

Here’s a step-by-step guide on how to allocate resources in project management effectively.

Table of Content

1. Understand the project’s scope and requirements 

2. assess the availability of your resources, 3. prioritize your tasks in the project , 4. start allocating resources, 5. monitor and make adjustments accordingly , 6. utilize tools for resource allocation, 7. expect the unexpected, 8. regularly communicate with your team on allocation, 9. conduct a post-project assessment, final thoughts on how to allocate resources, how to allocate resources efficiently in project management.

Before getting into resource allocation , you need a clear understanding of the project’s scope. You can start by asking yourself: Is this project big or small? Would it be a long or short project? 

allocate resources efficiently

Additionally, you should consider and include these criteria in your questions: 

  • Objectives or goals of the project.
  • Deliverables.
  • Tasks and subtasks required to meet these deliverables.

Once you have answered these questions, you can make the right decision and allocate your resources accordingly to complete the project. 

Besides the project’s scope, you should also consider the requirements to fulfill the above project scope. These requirements usually include: 

  • Estimating the time needed.
  • Identifying the skills or equipment required.
  • Estimating the budget or cost associated.

For example, if your project involves developing a new eCommerce website, you will need a team of frontend developers, backend engineers, copywriters, and even QA testers to ensure fulfilling the website’s functionality requirements. 

Remember, the clearer your project’s scope and requirements are, the better you can allocate resources. Therefore, you should not rush and take time to understand the big picture of your project before conducting any resource allocation. 

The next step in the guide on how to allocate resources is to estimate and assess the availability of needed resources. You can list down the needed resources such as time, budget, people, equipment, or anything else you need to complete the tasks. 

Normally, your organization should have already had some resources ready to be used while others will need to be purchased later or rented. Keep in mind, that you need to have resources available in order to allocate them. 

Not only that, you should also check if those existing resources are truly available, or free to use, for your project. There are circumstances when these resources are being occupied or already allocated for other projects.

Therefore, you should make a list of required resources for your project and check if they are truly available and “free” to use. 

Next, you will need to prioritize your tasks within the project. 

If your project is a big one, it will undoubtedly have tons of tasks and subtasks, and not all of them will belong to the top priority in your to-do list. That’s why you need to prioritize your project tasks to allocate resources more efficiently. 

You can start prioritizing your tasks based on: 

  • Their impact on the project’s outcome.
  • Their dependency relationships with other tasks.
  • Any set deadlines or milestones.

This practice will also empower you to effectively allocate your precious resources. By removing or lowering the priority of unnecessary tasks, you can concentrate on and invest more resources in more crucial tasks that will ensure the completion of your project. 

Looking for a way to prioritize your tasks on Jira?

Why not try Routemap’s prioritization table and matrix?

Now that you have everything ready, from a clear picture of tasks to resource availability, you can assign resources and work on the project. 

You can also make a resource allocation plan to keep things effective. Moreover, you can use this plan to outline the list of resources needed for your project.

Here are some suggestions you can make in the plan: 

  • Assign team members based on their skill sets, ensuring that no one is overloaded or underutilized.
  • Schedule equipment usage.
  • Distribute the budget across tasks, keeping a reserve for contingencies.

Besides, you should look back at the project scope to ensure that your allocation plan aligns with it.  

It would become problematic if you just focus on the project’s process and don’t know how your resource allocation plan is happening. In an agile environment, things can change quickly without you even realizing it. 

Therefore, you should always keep yourself informed of your resource status. You can regularly check the utilization of resources and monitor the project’s progress while comparing it to the planned allocation.

Additionally, it is crucial to be aware of the resource status, especially the human resource. If discrepancies arise (like a team member falling ill or a task taking longer than expected), you should adjust resource allocations accordingly.

Undoubtedly, you are not working on just one project. There will be times when you have to handle multiple projects with the same resource amount. 

No matter how well you have planned, you cannot avoid every change to your project. Especially with limited existing resources, you will have to figure out how to re-allocate them efficiently.

So, how can you do it? The best possible way is to use a resource management tool! You can manage your resources more effectively and allocate them reasonably across all current projects. 

For example, you can give AssetIT a try if your organization is working on the Jira platform. It is an effective tool to help you monitor and manage all available assets and resources and allocate them to each project accordingly. 

Moreover, you can try software like ProScheduler and TimePlanner to manage and allocate other resources such as time and personnel. 

These tools can help you visualize resource allocation, adjust allocations in real time, and predict potential bottlenecks or shortages. So, why not take advantage of such tools to make your resource allocation a bit easier? 

As mentioned earlier, there will be unexpected changes during the process. It is simply the nature of working on projects in a fast-paced environment. 

Besides, every project comes with its own set of risks as well. Therefore, you should consider such risks in advance and be prepared for the unexpected. 

It is advisable to identify potential risks that might affect resource availability or task completion. Then, you can develop a contingency plan that outlines how to adjust resources should these risks materialize.

Up to this point, we have talked about how things can change in a short amount of time and negatively affect your resource allocation and projects as a whole. Although there are tools to help you decrease these chances, one of the most effective ways, and FREE, is to communicate with your members on allocation regularly . 

Communicating regularly is an answer  to how to allocate resources

Human resources is considerably your most valuable asset in any project, and you must do your best to keep this resource aligned with your project scope and requirements.

Firstly, you need to ensure that all team members know their tasks, timelines, and the resources they have. Next, you should maintain open lines of communication to address any issues or concerns promptly.

And don’t forget to update stakeholders regularly to keep them in the loop about resource utilization and project progress.

With these practices, you can keep your team members and stakeholders aligned while handling project tasks effectively.  

Now that the project is complete, and all hard work has been paid, it’s time to run a post-project assessment. This will help you and your team to look back and see what did or did not work. 

During this evaluation, you should identify what went well in terms of resource allocation and what didn’t. Moreover, you can gather feedback from team members and stakeholders to see if your allocating resource plan is effective or not.

And ultimately, you can use these insights for better resource allocation in future projects.

Allocating resources is a dynamic process that requires careful planning, continuous monitoring, and adjustments as necessary. When done effectively, it can ensure that a project is completed on time, within budget, and to the satisfaction of all stakeholders. 

By following the steps on how to allocate resources in project management above and leveraging the right tools, project managers can master the art and science of resource allocation.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

allocate resources efficiently

How to Develop A Strategic Plan to transform your business

Strategic Planning: Unlock strategies for competitive advantage

Strategic Planning: Unlock strategies for competitive advantage

Routemap vs. Easy Agile Roadmaps: which is suitable for your project management

Routemap vs. Easy Agile Roadmaps: which is suitable for your project management

Jira Release Management explained for Optimizing workflow

Jira Release Management explained for Optimizing workflow

Mastering Agile Release Planning: A complete guide to success

Mastering Agile Release Planning: A complete guide to success

Jira Gantt Chart: Revolutionize your Workflow & Project Planning

Jira Gantt Chart: Revolutionize your Workflow & Project Planning

The art of Minimum Viable Product: Balance efficiency & impact

The art of Minimum Viable Product: Balancing efficiency & impact

An effective Jira Dependency Management guide for anyone

An effective Jira Dependency Management guide for anyone

Ring in success with Routemap's offer this festive season!

Ring in success with Routemap’s offer this festive season!

Jira Prioritization simplified: Practical tips for better project management

Jira Prioritization simplified: Tips for better project management

  • 0 Shopping Cart

StrategyDriven

How to Allocate Resources Effectively In a Business Enterprise

Effective allocation of resources is what forms the crux of a business organisation. There is no way a business can thrive without having the right skills to manage whatever resources it has at its disposal. The scale of operation does not matter; however, what matters is how well you allocate each resource to put them to its best use. Some of the biggest business enterprises have faced catastrophic downfalls owing to their inability to handle the immense bulk of resources. On the other hand, the ones starting from scratch, with nothing but scraps have made it big only with their sheer skill of resource management and colossal intelligence. At the end of the day, there is no point cutting sizable profit if you do not know how to churn the cream to make something more out of it.

What Is an Efficient Allocation Of Resources?

Efficient allocation of resources, by definition, is the process of analysing all the available resources at any given point of time, and devising effective strategies to make the most out of them, keeping in mind short-term as well as long-term goals, in a way that there is minimal wastage and an optimal usage of all the resources.

StrategyDriven Resource Management Article | How to Allocate Resources Effectively In a Business Enterprise | Resource Allocation

There are different types of resources, and the knowledge of each one of them is crucial for a business to blossom. These resources could be related to something as complicated as finances or something very human as the workforce. Also, when we talk about allocating resources, it is not just the duty of the management to chalk out efficacious plans that would cater to the topic at hand. The onus of resource building, management and allocation is upon every individual working within the firm.

What Are the Most Important Resources?

It is difficult to place resources of an organisation into watertight compartments of classification because anything and everything really can be seen as a resource as per the requirements of the company. However, the most important ones, which are more like umbrella terms are- finance, time and workforce. Every business needs trustworthy financial advisors and a team that handles every aspect of it. You need to have the perfect knowledge of where and how your cash flows in the organisation. You need to have all your queries related to your accounts resolved, like what exactly Accounts Receivable Financing is, or how to deal with taxes. Only then can you understand where to allocate the money and how to do that efficiently. The same holds true for time and workforce. Time is precious, and every minute is supremely important. Therefore, you need to divide the work hours in such a way that every minute is utilised to its best. Coming to the workforce, they can easily be termed as one of the biggest assets of your business. Machines can do your job, but human beings are irreplaceable.

allocate resources efficiently

Therefore, hire the right team and use every individual’s talents the way they were meant to be used. You cannot use a legal advisor to pose as a psychologist and counsel them for better productivity. Everyone has their jobs cut out for themselves, and it is an inane allocation of the workforce to use people of the wrong profile for a particular task.

How Do You Allocate Resources?

There has been enough talk about what resource allocation is and why it is crucial for the future of a business organisation. We shall now move on to understanding how one could go about identifying their scope and using the same to their favour.

Gauge Your Situation

Everything starts with a holistic understanding of one’s situation and acknowledging it, no matter how arid your resource pool might look. Analyse what your scope is, where your resources come from and flip through the ways you have been utilising these resources for years or months. Once you have clarity of your situation, it is easier to act upon it.

Come Up With a Contingency Plan

An elaborate and extensive planning process is necessary for your business to score well and chart monumental heights of success. You need to plan everything-from hiring the right people for your job to handling finances; everything has to be hassle-free. However, one thing that several of these organisations miss out on is a sound and sensible contingency plan. There has to be a plan B. This might not look like a resource allocation strategy, but think about it before passing a verdict. Having a contingency plan is an assurance that your business will not perish at the face of adversities. You might plan your allocation since day zero, but if one those plans fail, you need a cushion that will absorb the shockwave. Also, discussing contingency plans is a way to segue into the next effective resource allocation strategy.

Be Wary Of Over Allocation

You might have this vast pool from where you draw all your resources, but that does not mean you have to place all of them in one project or person. Distribute them equally and in the amount necessary. Learn the art of making use of all that you have optimally and without overusing them. Saving up on resources will help you build a contingency resource reservoir from where you can draw if your principal plan fails.

Wield the Power of Technology

Technological mushrooming has made it so much easier to forecast your financial year or predict doldrums in sales. Use the power of technology to your benefit. There are tools and software available that can tell you the exact amount, quantity and time you need to allocate for a particular project. Therefore, it would do you good to be smart enough to seek refuge in the innovations of technology and use the same to predict your growth curve using the resources you have at hand.

StrategyDriven Resource Management Article | How to Allocate Resources Effectively In a Business Enterprise | Resource Allocation

There are hundreds and thousands of ways to use your resources effectively. The strategies you follow for a certain type of business might not sit well with a different kind of business. Your genius lies in understanding your situation and implementing ways that should work like a miracle for the growth of your business.

Related content from StrategyDriven

StrategyDriven Marketing and Sales Template | StrategyDriven's Nurturing Sales eMail Templates

Nurturing Sales eMail Templates

StrategyDriven Marketing Template | Customer, Influencer, and Coach Avatars

Customer, Influencer, and Coach Avatars

StrategyDriven Corporate Cultures Whitepaper

Preventing Catastrophic Industrial Accidents

StrategyDriven Business Operations Management Whitepaper

Common Overlooked Controllable Oversight Costs

You might also like.

StrategyDriven Online Marketing and Website Development Article |Podcast|Fun and Lucrative: 5 Reasons Why Your Business Needs a Podcast

Leave a Reply

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Entrepreneurship

Employee Engagement Center of Excellence

Consultative Selling Knowledge Center

Making Change Work Knowledge Center

Big Picture of Business Knowledge Center

Leading with Impact Knowledge Center

StrategyDriven Insights Library

Online Marketer & Website Developer Magazine

StrategyDriven Newsletters

Sevian Turnkey Business Programs

Online Training

Tools and Templates

Whitepapers

The Advisor's Corner

StrategyDriven Podcast

StrategyDriven Podcast - Video Edition

StrategyDriven Podcast - Special Edition

StrategyDriven Leadership Conversation

StrategyDriven Professional Podcast

StrategyDriven Editorial Perspective

StrategyDriven Online Marketing and Website Development Article, Spice Up Business Prospecting with Video

Before you leave...

Signup for the StrategyDriven Newsletter

Subscribers receive access to:

1. Performance measures development whitepaper series

2. StrategyDriven Expert Contributor bonuses

3. FREE trade journal subscriptions and whitepapers

4. StrategyDriven Insights Library subscription discounts

Email Address

Inspired Economist

Resource Allocation: An In-depth Understanding of its Importance in Finance

✅ All InspiredEconomist articles and guides have been fact-checked and reviewed for accuracy. Please refer to our editorial policy for additional information.

resource allocation

Resource Allocation Definition

Resource allocation is the process of assigning and managing assets in a manner that supports an organization’s strategic goals. It involves distributing available resources—such as time, labor, and capital—efficiently across various tasks and functions, to improve productivity and achieve desired outcomes.

Key Principles of Resource Allocation

Efficiency in resource allocation.

Efficiency is a critical principle in resource allocation. It refers to the optimal distribution of resources, wherein resources are used in a manner that yields the highest possible value or output. In an ideal scenario, resources are allocated efficiently when no other possible distribution could make someone better off without making someone else worse off – a condition known as Pareto efficiency.

To achieve efficiency, the law of supply and demand comes into play in market economies. These forces drive prices, which in turn provide signals to producers and consumers about the allocation of resources. If a resource becomes scarce, its price will rise, prompting producers to use it more sparingly and consumers to limit their demand. This dynamic promotes the efficient use of resources within the constraints of the market.

Fairness in Resource Allocation

While efficiency focuses on maximizing the output from resources, fairness or equity pertains to how those resources are distributed among individuals. The principle of fairness in resource allocation suggests that all individuals should have equal access to resources, or at least a distribution that society deems as 'fair'.

Fairness, however, is subjective and can vary widely in different societies or communities. In some societies, fairness might mean equal distribution of resources, while in others it could mean resources are distributed based on need, effort or merit.

Trade-offs in Resource Allocation

Economic theories often assume that resources are scarce and decisions about their use inherently involve trade-offs. When you allocate more resources to one area, you inevitably have fewer resources available for other uses. For example, choosing to spend more on health care might mean having less to spend on education, or investing more on manufacturing could lead to less resources for services industry.

In any economic system, decisions about resource allocation often reflect the values and priorities of that society. This may involve trade-offs between efficiency and fairness. For instance, a society might choose to allow some level of inequality (sacrificing some fairness) in order to provide incentives for hard work and innovation, thus enhancing overall societal wealth (improving efficiency).

These trade-offs underline the complexity of resource allocation, requiring a delicate balance between different objectives. They also highlight the importance of sound principles and clear objectives in guiding the process of deciding who gets what, and why.

The Role of Markets in Resource Allocation

Markets have an indispensable role in resource allocation, functioning primarily through the mechanisms of supply and demand, the price system, and competition.

Supply and Demand

The fundamental economic theory, supply and demand, plays a central role in resource allocation within a market economy. Demand represents the quantity of a good or service desired by buyers, while supply symbolizes the amount that producers are willing to provide at different prices.

When demand exceeds supply, scarcity arises, leading to the price increase, encouraging suppliers to produce more. Conversely, when supply surpasses demand, there is a surplus, causing prices to drop, and subsequently stimulating demand. Hence, through these adjustments, markets ensure resources are allocated to where they are most needed or desired.

Price System

The price system is an integral component of resource allocation. Prices serve as signals for producers and consumers. High prices typically indicate a scarce resource, encouraging businesses to produce more of the same good or service, thereby increasing supply. Simultaneously, high prices may deter consumers, causing them to seek cheaper alternatives, thus decreasing demand.

In contrast, low prices suggest a surplus of a resource, prompting producers to cut back production levels. At the same time, consumers may be attracted to the lower prices, leading to an increase in demand. This self-adjusting mechanism allows the price system to efficiently allocate resources in markets.

Competition

Competition promotes efficiency in resource allocation by motivating businesses to minimize costs and maximize quality. This drive for efficiency results in the optimal allocation of resources, ensuring that goods and services are produced in the most cost-effective manner. Competition also encourages innovation and product differentiation, leading to a diverse range of offerings in the market that cater to various consumer preferences and needs.

Strengths and Weaknesses of Market-Driven Resource Allocation

The strength of market-driven resource allocation lies in its inherent efficiency. It allows for automatic adjustments based on supply and demand dynamics, meaning that resources tend to be directed where they generate the greatest value.

However, market-driven resource allocation also has its potential shortcomings. Market failures can occur, such as in the presence of monopolies, where a single entity controls an entire market. In such instances, resource allocation may be distorted, leading to potentially inefficient outcomes. Additionally, markets may overlook public goods, like parks or clean air, and fail to allocate resources toward their provision or maintenance due to the lack of profitability.

Moreover, equity is another crucial aspect often undervalued in market allocations. The market system does not guarantee that resources are distributed evenly across all members of society, which might raise concerns about social justice and fairness.

In essence, markets play a critical role in resource allocation, facilitating effective allocation through supply and demand, a functioning price system, and competition. However, to ensure the best results, it's important to consider both the strengths and potential pitfalls of market-driven resource allocation.

Government Intervention in Resource Allocation

Role of government in resource allocation.

Under normal circumstances, market forces of supply and demand decide the allocation of resources. However, the government often steps in to control or influence the allocation of resources.

Policies and Interventions

The government employs several policies to intervene in resource allocation. One such policy is taxation. By imposing taxes, the government can discourage or limit the consumption or production of certain goods and services that might be considered harmful. For instance, a high tax on tobacco is an attempt to curtail its use, protecting public health and redistributing resources to other sectors.

Another crucial policy is the provision of subsidies. Subsidies are financial aid provided by the government to certain sectors or groups to keep prices low or to support an industry facing tough competition, thereby influencing resource allocation. For instance, agricultural subsidies help farmers cope with the unpredictability of their industry while ensuring food supply.

Next, let's consider the government's role in the provision of public goods. Public goods are goods that the market would fail to provide in socially optimal quantities or wouldn't provide at all. They include such things as parks, roads, emergency services and public education. Such goods typically enhance overall welfare but are not immediately profitable or viable for private entities. Hence, government steps in to produce and maintain them.

Necessity for Government Intervention

There are certain situations where government intervention is deemed necessary in the resource allocation to ensure social welfare and equity, and to address market failures. Market failures occur when the market, left to its own devices, fails to allocate resources efficiently.

For instance, in the case of negative externalities (effects of a product that inflict a cost to a third party), the market tends to overproduce, leading to resource misallocation. A common example is pollution. Without intervention, businesses might overproduce, leading to excessive pollution that affects everyone. In such cases, government may impose regulations or taxes to discourage overproduction and ensure efficient resource allocation.

Another type of market failure is the under-provision of goods with positive externalities (effects of a product that confer a benefit to a third party). Vaccination is an example. A vaccinated person confers benefits to others by reducing their risk of infection. However, since these benefits are not fully taken into account when individuals make their vaccination decisions, the market might not provide sufficient vaccines. Hence, government intervention in terms of subsidies or mandatory vaccination policies can lead to a more efficient resource allocation.

In conclusion, government intervention plays a crucial role in guiding resource allocation towards what is considered best for overall societal welfare. Its policies balance the efficiency of the market with the needs of the public.

Resource Allocation in Business Decision-Making

Effective resource allocation plays a critical role in the decision-making process within a business context. Successful companies utilize their resources wisely and consider these principles when making strategic decisions.

The most rudimentary way in which businesses apply the principles of resource allocation is through their budgeting processes. Budgeting involves a delicate balancing act, ensuring that each individual department or project has access to the necessary financial resources without exceeding the total resource pool available. In essence, budgeting is resource allocation stripped down to its most basic form. Businesses constantly review their budgets, reallocating resources as necessary in light of changing business circumstances and strategic objectives.

Project Management

In project management, resource allocation is a constant undertone. Managers must efficiently assign resources to various tasks within a project to ensure its timely and successful completion. Doing so requires understanding the prioritization of tasks, their resource demands, and how to best distribute available resources across them. Resources in project management can be anything from personnel, equipment, space, or time. If resources are incorrectly allocated, a project can quickly become delayed or overbudget. Efficient resource allocation in project management ensures that everything runs smoothly within the given constraints.

Investment Decisions

When it comes to making investment decisions, resource allocation again takes center stage. Typically, businesses have limited resources it can dedicate to investments. Therefore, firms must meticulously decide where and when to invest to generate the highest possible returns. The investment landscape is always changing, and businesses must stay agile and ready to reallocate resources as the market evolves. Consequently, wise resource allocation can lead a business to harvest returns that fuel further growth.

In summary, throughout budgeting, project management, and investment decision making, the principles of resource allocation are instrumental. By understanding and applying these principles, businesses can utilize their resources effectively, drive growth, and navigate through changing circumstances successfully.

Resource Allocation and Economic Systems

Different Economic Systems and their Approaches to Resource Allocation

Capitalism and Resource Allocation

In capitalism, resource allocation is largely determined by market forces like supply and demand. Businesses and individuals make decisions about resource distribution based on their own self-interest, and the market is left to naturally find its equilibrium. This could stimulate economic growth with the theory that innovation and competition will drive gains in productivity. However, this system can also lead to uneven income distribution and wealth concentration, with the wealthy having a larger influence on the market. As a result, societal well-being might be compromised, especially for the less fortunate who may lack adequate access to necessary resources.

Socialism and Resource Allocation

Socialist economic systems, on the other hand, employ a different approach to resource allocation. The state owns and controls major industries and natural resources. It makes decisions about what to produce, how much to produce, and how to distribute resources to satisfy societal needs. Ideally, this method promotes income equality and social welfare, as resources are distributed to serve everyone's needs. However, economic growth may be hindered as incentives for innovation and efficiency wind down, due to the absence of competition. Critics argue that bureaucracy and inefficiency may prevail, and the economic outcome might not always reflect the societal preferences accurately.

Mixed Economies and Resource Allocation

Lastly, mixed economies incorporate aspects of both capitalist and socialist systems. Resource allocation happens both via market mechanisms and state involvement. The government plays a role in regulating markets, providing public goods, and often intervening to prevent market failure. These economies could balance the push for growth with the redistribution of wealth in theory. However, the challenge lies in finding the right balance to maximize economic growth without sacrificing income equality and societal well-being. Finding this balance is often a subject of political debate and conscious policy decisions.

The way resources are allocated in an economic system can significantly affect economic outcomes and the quality of life for individuals within that society. As such, understanding the nuances of resource allocation in different economic frameworks is crucial for grasifying the implications for economic performance and societal welfare.

The Role of Technology in Resource Allocation

Impact of technological advances on resource allocation.

Technological advancements are significantly reshaping how resources are allocated in various sectors of the economy. Machine learning and data analytics, for example, are enabling businesses to make more precise and informed decisions regarding the distribution of resources, thus increasing efficiency and profitability.

Enhancing Efficiency in Production and Distribution

Consider the manufacturing sector for instance, the advent of advanced machinery and automation technologies allows for highly efficient production processes. Robotics and automated assembly lines can greatly speed up production, reducing the need for manual labor. This results in a more efficient use of human resources, who can then be allocated to tasks that require higher cognitive skills.

The same principle can be applied to the distribution of goods. Technologies such as warehouse automation systems and logistics software are revolutionizing supply chain management. These technologies expedite the transportation and distribution of goods, reduce errors in deliveries and ultimately lower costs.

Potential Effect on Labor and Capital

While the use of these technologies can bolster productivity and decrease costs, they also have implications for labor and capital. On the one hand, higher productivity and decreased costs may result in larger profits and potentially more capital for businesses to reinvest.

On the other hand, the impact on labor can be multifaceted. Automation can lead to job displacement in certain industries, resulting in less labor input needed for the same production output. However, it can also create new job opportunities in areas such as programming, system maintenance, and data analysis.

It's crucial to emphasize that the overall effect of these technological advancements on labor and capital largely depends on how well different economic agents adapt and evolve with these changes, particularly in terms of skill enhancement and policy development. To maximize benefits and mitigate drawbacks, ongoing education, training, and strategic policy-making are key considerations.

Resource Allocation, Sustainability, and Corporate Social Responsibility

Resource allocation and sustainability are two concepts that often interweave in corporate strategy. In essence, sustainability is about managing resources in a way that meets our current needs without compromising the ability of future generations to meet their own. It requires careful planning and ethical decision-making to balance human consumption and environmental conservation.

Resource management, a crucial aspect of sustainability, falls squarely within the realm of corporate social responsibility (CSR). CSR is a business model that helps companies become conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

Linking Resource Allocation to Sustainability and CSR

Companies worldwide are increasingly recognizing their role in ensuring sustainability and integrating it into their resource allocation strategy. For instance, a manufacturing firm might decide to invest in efficient machinery that uses fewer raw materials, reducing environmental footprint while achieving economic goals. This not only aligns with sustainability but is a reflection of their commitment to CSR.

CSR as a Tool in Managing Resources

CSR can lead to better resource allocation. Companies adopting CSR strategies often set internal policies to use resources more efficiently and reduce waste. In some cases, an organization might decide to allocate more resources to research and development to create environment-friendly products or processes, again supporting both their CSR and economic objectives.

Alignment of Corporate Objectives

Many times, this synergy between resource allocation, sustainability, and CSR also helps businesses meet their economic objectives. Energy-saving measures might initially require investment but can lead to cost savings in the long run. Similarly, companies often discover that they can reduce inputs and waste, leading to increased efficiency and profitability.

The role of Stakeholders

Finally, stakeholders—employees, customers, investors—are exerting pressure on firms to integrate CSR and sustainability within their resource allocation decisions. They're increasingly favoring companies who demonstrate a commitment to these principles, providing an added incentive for firms to align their CSR goals with effective resource management. This alignment not only results in better sustainability outcomes but also fosters goodwill, enhancing the company's reputation and bottom line.

To sum it up, integrating resource allocation, sustainability, and CSR is not only beneficial for the planet but is a smart business strategy that can lead to economic successes. As more companies are realizing this, we're seeing a broader shift in the business world toward more sustainable and socially responsible practices.

Opportunities and Challenges in Resource Allocation

Scarcity and resource allocation.

Scarcity is perhaps the biggest challenge in resource allocation. By definition, resources are scarce; their supply is limited. Allocators must determine the best way to distribute these resources among competing uses. Each choice has an opportunity cost, or what is foregone in choosing one option over another. Good allocation can minimize opportunity costs and maximize value.

In the face of scarcity, different sectors of the economy – household, business, government – may haul a significant share of the resources leaving others in disparity. The issues here could be rooted in power imbalances, poorer negotiation skills, or lack of information. To address this, norms and rules have to be set on fair distribution of resources. This can be achieved through various means such as legislation, industry regulations, or collective action.

Opportunity Costs in Decision Making

Opportunity cost is another inherent challenge in resource allocation. Whenever a decision is made to allocate resources in a certain way, an opportunity is foregone to use those resources elsewhere. In essence, the opportunity cost is the value that could have been generated had the resources been used differently.

For example, if a business opts to invest in expensive machinery, the opportunity cost could be the technology or research and development they could have invested in instead. Recognizing opportunity costs can guide businesses and policymakers in identifying the trade-offs and making informed decisions about which opportunities to pursue. It also encourages focusing on strategic priorities, so that resources aren’t spread too thinly across a range of lesser opportunities.

Potential Inefficiencies in Resource Allocation

A third challenge in resource allocation comes from potential inefficiencies. Even with the best intentions, not all allocations will be optimally efficient. Some resources may be allocated to processes that have low returns, while high return processes are starved of necessary resources.

It’s crucial for the allocator to keep a constant eye on the performance of various factions where the resources were invested. Poor performance could be an indication that the resources are better used elsewhere. Using real-time monitoring tools and comprehensive evaluation techniques can help quickly identify and correct inefficiencies.

All these challenges in resource allocation require careful consideration and thought. However, when addressed properly, they present opportunities. Effective resource allocation can drive organizational success, maximize productivity, and foster economic growth. It's a complex task that requires strategic decision-making and regular re-evaluation, but its potential benefits make the effort worthwhile.

Share this article with a friend:

About the author.

Avatar photo

Inspired Economist

Related posts.

accounting close

Accounting Close Explained: A Comprehensive Guide to the Process

accounts payable

Accounts Payable Essentials: From Invoice Processing to Payment

operating profit margin

Operating Profit Margin: Understanding Corporate Earnings Power

capital rationing

Capital Rationing: How Companies Manage Limited Resources

licensing revenue model

Licensing Revenue Model: An In-Depth Look at Profit Generation

operating income

Operating Income: Understanding its Significance in Business Finance

cash flow statement

Cash Flow Statement: Breaking Down Its Importance and Analysis in Finance

human capital management

Human Capital Management: Understanding the Value of Your Workforce

Leave a comment cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Start typing and press enter to search

Find, hire, and manage world-class remote developers

Resource Allocation in Project Management: Definition, Examples, and Tools

Rafael Timbó

Table of Contents

Most businesses today are operating with limited resources. Budgetary considerations, labor shortages, and a snarled supply chain all mean that companies must do everything possible to maximize their constrained resources.

Resource allocation can transform business operations, helping teams work more efficiently and reach their productivity goals. Resource allocation is a simple but vital concept: in its essence, it means strategically assigning all available resources to complete every project.

This article will examine the theory and practice of resource allocation. It will also touch on some examples of resource allocation in project management, as well as the implementation process.

What Is Resource Allocation?

Resource allocation is the process of taking stock of all available resources and strategically assigning them so that they perform optimally. It’s closely related to resource planning since it entails taking a data-driven, concrete approach to using resources in relation to project scope. A strong understanding of the project budget, project schedule, and project team is critical for workload management and overall allocation strategy.

Resource allocation is critical in any business, but it is especially important in software development, network security, and IT. The more complex the field is, the more crucial it is that project managers correctly allocate resources. While allocating all resources correctly is critical, it's equally important to identify the right resource. 

For example, a team of developers could be allocated to complete a software deployment over the course of the month, but it may be more prudent to spread that work out and allocate your resources more judiciously through resource scheduling so that no other projects suffer.

Along with resource utilization, the resource allocation process is a vital part of resource planning. It's one of the most critical project management tools that contributes to the overall profitability of a project. 

Resource Allocation in Project Management

Today, more project managers are adopting a fully data-driven approach to resource allocation, recognizing that this can drive greater productivity .

The allocation of resources starts with a careful assessment of which resources are available. “Resources” is a broad umbrella term that includes human resources and financial resources, as well as tools, materials, and software. 

Once the project manager has taken stock of the availability of project resources, they assign those resources strategically, ensuring that every employee is working in the area they excel in to do the best possible job—and so that the project can be completed efficiently. The same strategic approach applies to assigning funds and tools to different tasks.

Trends in IT Resource Allocation

Resource allocation can become a significant challenge as companies scale and remote work becomes more common. Managing decentralized teams can also complicate capacity planning. 

According to Vishwas Mahajan , the founder of Whizible.com, project managers are using AI, cloud-based tools, and automation to respond to these challenges. Mahajan points out that AI-driven predictive analytics can accurately forecast a project's resource needs, while cloud-based resource management tools can facilitate collaboration when teams operate remotely.

This dovetails with Gartner's predictions about the top IT trends in 2024. Gartner anticipates greater use of intelligent or business applications that use AI and connected data to improve workflows in every facet of the IT sector. Gartner also predicts a move towards an "augmented connected workforce" or a greater adoption of smart tools to improve workplace analytics and schedule resources. You can expect to see this approach play out in project management systems and resource allocation.

Resource Allocation Examples

Resource allocation is crucial in every industry, but it is imperative to project managers tasked with overseeing technical projects—like software development, mobile app development, and network security implementation. These projects are complex, tend to change quickly, and are at constant risk of scope expansion. 

A good project manager knows how to keep these projects on track without scope changes, going over budget, or taking resources from other equally important projects. Bear in mind that "resources" broadly refers to human resources and software, servers, networks, cloud computing, and energy. This piece focuses on optimizing the potential of your human resources, but the tools below can also be applied to any and all of your other resources.

Here are some examples of what resource allocation looks like in technical fields.

Mobile App Development

Mobile app development has many moving parts, making planning difficult. Project managers need the technical expertise and the requisite soft skills, like communication and team-building, to plan for these projects successfully. 

For example, a company developing a new mobile app must adopt a strategic resource allocation plan. Such a plan begins with assessing the development team and deciding who has skills in areas like UI/UX design and testing. It also means determining which employees have experience deploying mobile apps.

An effective project manager can assign employees the tasks they’re best suited for based on their experience, knowledge, and availability. 

Software Development

Software development usually entails balancing the needs of multiple clients, all while managing cascading product iterations. Making the software development process run smoothly means juggling labor constraints, time pressures, and finances and being prepared to reassess priorities on an ongoing basis.

To the extent possible, the project manager should look ahead to identify potential roadblocks as well as periods of high demand. This can mean assessing each employee for weak spots and making predictions about shifting client demands. Successful project managers can often predict which elements of a project the client is likely to change their mind about—thus building in extra time and resources to address a course change mid-project.

Creating backup plans and emphasizing agility can help. Processes like resource leveling , for example, may be reimagined as an ongoing process. Resource allocation software can ease this process.

Network Security

As businesses implement a new or upgraded network security system, resource allocation can ensure that the project gets done quickly, efficiently, and at a reasonable cost.

Successful implementation of network security systems requires both hard and soft skills. Not only is it crucial to implement firewalls, encryption, and intrusion protection, but it is also vital to train every team member in the correct security measures. A good project manager can assign these tasks correctly and create benchmarks to confirm they have been carried out correctly. 

How to Allocate Resources

There are a few key steps involved in allocating resources effectively. Although the process differs from one business to the next, every project shares these fundamental stages.

1. Define the Project and Establish Benchmarks

Resource allocation starts with a well-defined project. The project manager must carefully limit the project’s scope to avoid mission creep, which could lead to increased use of resources and disrupt the initial plans.

Part of defining a project is determining the project’s desired outcome and establishing benchmarks. The project manager will evaluate key steps in the process and assess the resources necessary to complete each project phase. They will also consider all the resources required for a successful project—the human resources, the servers, facilities, cloud resources, and whatever else is needed to meet goals throughout the project lifecycle.

2. Determine Current Resource Availability

The project manager should assess which resources are currently available and which will continue to be available throughout the lifespan of the upcoming project. For example, perhaps the team’s most experienced software developer is free now, but she will be busy working on another project in two weeks. Or, perhaps the best UX designer is needed on another project now but will be free soon to work on another project.

3. Build a Plan for Allocating Resources

The project manager will assign personnel based on the available resources to carry out the essential steps identified in step one. At the same time, funds and supplies will be allocated for each project stage. The more detailed the plan, the more effective it will be.

Building some cushion into every project planning stage is a good idea. Often, projects run longer than expected and require more resources than initially thought. Successful project managers will account for potential overallocation. They will also lay out a clear plan for allocation and make it visible to the whole team to avoid miscommunication.

4. Track Resource Utilization

Resource allocation is an ongoing process. Once the project is underway, a good project manager will track resource utilization and monitor whether it meets expectations. If some resources are being overdrawn, the project manager must resolve those issues and redesign the initial allocation plan.

5. Review and Assess

The final step in project management happens when the project is completed. Take stock of what worked and what didn't work. Did the team have all the necessary resources, or did the initial resource allocation need to be adjusted? Did the team meet its projected timelines? Did they stay on budget?

The answers to these questions can help maximize client satisfaction, avoid scope creep, and drive more effective resource allocation decisions for the next project.

Resource Allocation Tools & Software

Several software tools can take the guesswork out of resource allocation. Modern resource allocation software is data-driven and, in some cases, powered by AI for a smooth, intuitive, and effective process. The following are some of the best project management software tools on the market that help organizations outline overall resource allocation.

Mosaic is powered by artificial intelligence and designed to integrate smoothly with existing software. The tool analyzes historical data and automatically generates resource allocation plans based on team availability, project tasks, and detailed forecasting.

The tool is so detailed that it can even recommend which employee to assign to each role. And, like most AI, Mosaic continues to learn on the job, so it will get more effective the more frequently it is used. 

Resource Planner

Resource Planner is a great choice for anyone managing multiple projects with a large number of employees. It stands out for its forecasting capability, which helps project managers anticipate upcoming projects and plan their resources accordingly. A convenient dashboard also groups together all ongoing projects and team members, providing visibility into current operations.

Resource Planner has solid budgeting and time-tracking tools so that project managers can monitor whether each project is staying on track – and make any adjustments as needed.

Runn excels at giving managers a big-picture view of every project. The resource management software lets users see every employee’s schedule and availability at a glance. The tool’s forecasting and scheduling abilities increase visibility into project length and cost while allowing decision-makers to quickly view or change personnel assignments. 

Runn is easy to learn and implement. It’s a great choice for anyone juggling multiple projects simultaneously since it provides a broader view of the organization.

Hub Planner

Hub Planner lets you view schedules, list project benchmarks, and assign employees to specific tasks. But the tool stands out for its resource tracking.

Hub Planner’s features make it easy to track resource utilization after a project gets underway. Its robust reporting feature provides data-driven insights into ongoing resource use while also tracking time sheets and vacation requests.

Hire Project Management Professionals for Dynamic Resource Allocation

When you manage distributed teams , it’s important to use strategic planning to allocate resources effectively. Efficiently planning, conceptualizing, and overseeing projects can help teams stay on track, create the best possible deliverables, and even reduce costs. This process does come with some challenges.

Revelo can help your teams meet these challenges and overcome them. 

We match businesses with developers with the right skills to stay on task and appropriately manage their resources. Our developers are rigorously vetted for technical skills, soft skills, and English proficiency. That means that they have the technical skills—and the communication skills—to be effective members of any project. 

At Revelo, we handle every onboarding aspect– payroll, benefits administration, taxes, and more. Ready to get started? Contact Revelo to learn how we can support more effective resource allocation and efficient teams. 

Need to source and hire remote software developers?

Get matched with vetted candidates within 3 days ..

Why Choose Revelo

Quick time-to-hire

Time-aligned Devs

Expert talents pre-vetted for technical and soft skills

Related blog posts

How to Mentor Junior Developers: A Step-by-Step Guide

How to Mentor Junior Developers

How to Build Trust in a Team

How to Build Trust in a Team

Software Development Plan (SDP): What It Is, Benefits, and How to Create One

Software Development Plan

Subscribe to the revelo newsletter.

Subscribe and be the first to hear about our new products, exclusive content, and more.

If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

To log in and use all the features of Khan Academy, please enable JavaScript in your browser.

AP®︎/College Macroeconomics

Course: ap®︎/college macroeconomics   >   unit 1.

  • Introduction to economics
  • Four factors of production
  • Normative and positive statements
  • Economic models

Lesson summary: Introduction to Macroeconomics

  • Introduction to scarcity and the economic way of thinking
  • What will be produced with society’s limited resources?
  • How will we produce the things we need and want?
  • How will society’s output be distributed?

Models and graphs

Common misperceptions.

  • Economics is not the study of stock markets, money, or how to run a business. Although many new students believe they will be learning about these concepts, economics is a social science that seeks to better understand and predict human interactions; unlike business and finance, which focus on how to manage a business organization and invest money in a way to earn the highest return for investors.
  • One essential assumption made in most economic analysis is that all humans are rational and will make choices based on what is always in their best interest. In the real world, obviously, people, businesses, and even entire societies can be highly irrational.
  • Just because a decision is "irrational" in the economic sense, that doesn't mean that it is inherently wrong, bad, or lesser than what an economist would call a "rational" decision. In fact, the field of Behavioral Economics seeks to understand better the many reasons humans choose to make economically "irrational" choices in their decision making.
  • One of the four economic resources that societies must decide how to allocate is capital . When people use the word capital in everyday conversation, many people are referring to money or “financial capital.” In economics, capital is defined as the already-produced goods (tools, machinery, equipment, and physical infrastructure) that are used in the production of other goods or services. A robot on a car factory floor is defined as capital in economics; money you borrow to start your own business is not.

Discussion questions

  • Victorian historian Thomas Carlyle once called economics the "dismal science" because he believed it obsessively focused on the scarcity of resources. What does the field of economics provide society that other sciences such as chemistry, biology and physics cannot?
  • Using at least three key terms from this lesson, explain how scarcity affects you in your everyday life.
  • What are the three basic economic questions? How have different societies that you know about or have studied in other classes attempted to answer these questions?

Want to join the conversation?

  • Upvote Button navigates to signup page
  • Downvote Button navigates to signup page
  • Flag Button navigates to signup page

Incredible Answer

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

IMAGES

  1. 5 Effective Resource Allocation Tips for Enterprises Today

    allocate resources efficiently

  2. How to Allocate Resources to Projects

    allocate resources efficiently

  3. How to Allocate Resources to Projects

    allocate resources efficiently

  4. 4 Effective Ways to Manage Resources More Efficiently

    allocate resources efficiently

  5. Top 15 Resource Allocation Templates for Efficient Project Management

    allocate resources efficiently

  6. How to Make an Effective Resource Allocation Plan (Updated)

    allocate resources efficiently

VIDEO

  1. 50- Top 25 Complications in Resources Planning and their Resolutions

  2. Trading Time for Value: High Impact Activities

  3. Why do people use RSVP?

  4. Resource Allocation Lecture

  5. Importance of Goal setting

  6. Resource allocation graph in operating system

COMMENTS

  1. Resource Allocation: How To Do It Effectively (+ Templates)

    Resource allocation is the identification of resources you can dedicate toward strategic initiatives, specific projects, or activities in your company. It means figuring out the optimal way to use available resources to get the job done. The whole process often involves one or all of the following: Understanding business priorities and goals.

  2. Understanding Allocational Efficiency and Its Requirements

    Allocational efficiency, also known as allocative efficiency, is a characteristic of an efficient market where the optimal distribution of goods in an economy meets the needs and wants of...

  3. Resource allocation 101: How to manage your team's resources

    Step 1: Define your project requirements Step 2: Estimate the work and identify the resources required Step 3: Consider quality and budget to request the right resource level Step 4: Communicate your resource needs Step 5: Onboard resources and assign them to tasks with a resource allocation plan

  4. What is resource allocation? Learn how to allocate resources

    Effective allocation of resources helps maximize the impact of project resources while still supporting your team's goals. To create a resource allocation plan, identify the right resources—including team members, tools, budget, and more—you need to accomplish your project deliverables. Create a resource allocation plan template What is a resource?

  5. What Is Resource Allocation? How to Allocate Resources for Projects

    1. Define Your Project Scope Before you can allocate your resources or manage them, you have to determine the scope of the project you're working on. To do so, you need to break down the project into every individual task and deliverable that will be completed.

  6. Effective Resource Allocation

    An effective resource allocation strategy is half science and half art. Learning how to assign the right balance of resources to multiple projects requires knowing everything you can about each one and being able to accurately envisage and predict the knock-on effects that each decision will have.

  7. Mastering resource allocation: A 6-step guide to success

    Why Is resource allocation important? Resource allocation helps organizations make the most efficient use of their limited resources. Resource allocation involves carefully assessing the needs and priorities of the projects at hand, and assigning the resources available in a way that maximizes output and minimizes waste. The result?

  8. Understanding Resource Allocation Efficiency

    Efficient resource allocation is guided by several key principles: Alignment with Strategic Objectives Resources should be allocated in alignment with the organization's overall strategic goals and priorities. This means that resources should be directed towards activities that directly contribute to the achievement of these goals.

  9. What is Resource Allocation? A Complete Guide for Maximum ...

    Resource allocation is the process of identifying all your available resources—whether it's labor or monetary—for a project and then strategically assigning them to tasks that enable them to do their best work. For agencies juggling multiple projects for different clients, resource allocation is key to making sense of creative chaos.

  10. Resource Allocation explained

    Efficiently allocating resources to the right places is complex and often hampered by a number of factors, including scarcity, financial criteria, organisational politics, ambiguous objectives, risk aversion, and a lack of knowledge and information. Production factors and Resource Allocation We mentioned that resources are production factors.

  11. What is resource allocation? Why it's important and best practices for

    ‍ What is resource allocation? Resource allocation is the process of identifying, managing and scheduling resources (be they internal or external) to projects in order to deliver on your client's and your firm's objectives and strategies.

  12. Resource Allocation: Improve Project Efficiency in 2024

    Resource allocation is the process of identifying and assigning available resources—including people, time, money, and equipment—to projects while considering a team's availability, skill sets, and interests. Usually, a resource manager, project manager, or team lead is in charge of allocating resources. What do we mean by resources?

  13. Why You Need Resource Allocation & How to Be Effective At It

    1. Build your project timeline 2. Identify project resources 3. Allocate the resources 4. Monitor project schedule Most Common Challenges and Solutions of Resource Allocation Project scope changes Absence of data on resource availability in the company Project dependencies Priorities across the company Outdated project resource planning tools

  14. Our ultimate guide on how to allocate resources to a project

    Our ultimate guide on how to allocate resources to a project — Projectworks Maximize project success and profitability with our ultimate guide on resource allocation. Professional service firms can benefit from our essential tips for effective resource management.

  15. What Is Resource Allocation In Project Management?

    Resource allocation is a process in project management that helps project managers identify the right resources, and assign them to project tasks in order to meet project objectives. Project resources can be material, equipment, financial, or human resources. Typically, resource allocation is done during the early stages of a project's lifecycle.

  16. How to Allocate Resources in project management efficiently

    Learning how to allocate resources effectively is a critical aspect of project management. It involves assigning the available resources - including human talent, machinery, tools, materials, and budget - most efficiently and effectively to complete the project successfully.

  17. How to Allocate Resources in Project Management

    Effective resource allocation means ensuring, consistently and proactively, that strategically important businesses receive the capital, talent, and management attention they need — so long as the growth thesis remains robust. It is needless to argue with the facts and comments of real experts.

  18. How to Allocate Resources Effectively In a Business Enterprise

    Efficient allocation of resources, by definition, is the process of analysing all the available resources at any given point of time, and devising effective strategies to make the most out of them, keeping in mind short-term as well as long-term goals, in a way that there is minimal wastage and an optimal usage of all the resources. ...

  19. Resource Allocation: An In-depth Understanding of its Importance in

    Resource allocation is the process of assigning and managing assets in a manner that supports an organization's strategic goals. It involves distributing available resources—such as time, labor, and capital—efficiently across various tasks and functions, to improve productivity and achieve desired outcomes. Key Principles of Resource Allocation

  20. What Is Resource Allocation?

    Resource allocation can transform business operations, helping teams work more efficiently and reach their productivity goals. Resource allocation is a simple but vital concept: in its essence, it means strategically assigning all available resources to complete every project.

  21. Allocate Resources in Project Explained

    Proper allocation of resources ensures that project teams have the necessary tools, manpower, and other resources to complete tasks efficiently. It helps prevent bottlenecks and resource conflicts, reduces project delays, and improves overall project performance and outcomes. Resource allocation also plays a significant role in cost management.

  22. Allocational Efficiency

    Allocational Efficiency (or Allocative Efficiency) is a concept used in microeconomics where goods and services are distributed in an economy in a manner that is optimal and beneficial to all parties (consumers and producers).

  23. Lesson summary: Introduction to Macroeconomics

    the study of how individuals and societies choose to allocate scarce resources. ... Market economies let consumer demand determine what's produced, businesses decide how to make it efficiently, and distribution is based on purchases. Planned economies (like socialism or communism) have the government decide what to produce, how to make it, and ...

  24. HK Plans Focused, Effective Use of Resources in Budget: Chan

    Hong Kong plans to be more focused and effective in using limited public resources when facing a deficit, Financial Secretary Paul Chan wrote in his blog before he releases the city's new budget ...

  25. ITC Limited on Instagram: ""Indian enterprises can play a leading role

    330 likes, 6 comments - itc_limited on February 16, 2024: ""Indian enterprises can play a leading role as a catalyst for leveraging the power of partnership..."