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Resource management

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From Wikipedia, the free encyclopedia

Efficient and effective deployment of an organization's resources when they are needed

For other uses, seeResource management (disambiguation).

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Inorganizational studies,resource management is the efficient and effective development of an organization's resources when they are needed. Such resources may include the financial resources, inventory, human skills, production resources, orinformation technology (IT) and natural resources.

In the realm ofproject management, processes, techniques and philosophies as to the best approach for allocating resources have been developed. These include discussions on functional vs. cross-functionalresource allocation as well as processes espoused by organizations like theProject Management Institute (PMI) through theirProject Management Body of Knowledge (PMBOK) methodology of project management. Resource management is a key element to activity resource estimating and project human resource management. Both are essential components of a comprehensive project management plan to execute and monitor a project successfully.^[1]^[2]^[3] As is the case with the larger discipline ofproject management, there areresource management software tools available that automate and assist the process of resource allocation to projects and portfolio resource transparency includingsupply and demand of resources.

Corporate resource management process

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Large organizations usually have a defined corporate resource management process which mainly guarantees that resources are never over-allocated across multiple projects.^[4] Peter Drucker wrote of the need to focus resources, abandoning less promising initiatives for every new project taken on, as fragmentation inhibits results.^[5]

Techniques

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One resource management technique isresource-leveling. It aims at smoothing the stock of resources on hand, reducing both excess inventories and shortages.

The required data are: thedemands for various resources, forecast by period into the future as far as is reasonable, as well as the resources' configurations required in those demands, and thesupply of the resources, again forecast by time into the future as far as is reasonable.

The goal is to achieve 100%utilization but that is very unlikely, when weighted by important metrics and subject to constraints, for example: meeting a minimum service level but otherwise minimizingcost. A Project Resource Allocation Matrix (PRAM) is maintained to visualize the resource allocations against various projects.

The principle is to invest in resources as stored capabilities, then unleash the capabilities as demanded.

A dimension of resource development is included in resource management by which investment in resources can be retained by a smaller additional investment to develop a new capability that is demanded, at a lower investment than disposing of the current resource and replacing it with another that has the demanded capability.

Inconservation, resource management is a set of practices pertaining to maintaining natural systems integrity. Examples of this form of management areair resource management,soil conservation,forestry,wildlife management andwater resource management. The broad term for this type of resource management isnatural resource management (NRM).

References

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^A Guide to the Project Management Body of Knowledge, Third Edition. Newtown Square, Pennsylvania: Project Management Institute (PMI). 2004.ISBN 1-930699-45-X.
^A Guide to the Project Management Body of Knowledge, Fourth Edition. Newtown Square, Pennsylvania: Project Management Institute (PMI). 2008.ISBN 978-1-933890-51-7.
^A Guide to the Project Management Body of Knowledge, Sixth Edition. Newtown Square, Pennsylvania: Project Management Institute (PMI). 2017.ISBN 978-1-62825-184-5.
^Modern Project Management
^Frank Parth."Growing in Turbulent Times'".

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