Title: advanced resource management

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    2
  • Words:
    1196

Title: advanced resource management

Organization’s resources consists of people, materials, equipment, knowledge and time. Since the resources are typically scarce, resource allocation plan is an important tool to effectively manage the scarce resources. A resource plan which describes the type of resource needed is critical to effective resource management.

The resource management tools enables project managers to;

  • Manage and monitor scope of challenges by assessing the cost and schedule impact of various resource scenarios.

  • Reallocate time to different resources to ensure seamless and efficient progress even when dealing with unexpected obstacles and challenges.

  • Determine resource availability and skill level and use the data to recruiting efforts

  • Analyze dependence across the entire project portfolio to drive productivity and performance.

  • Track individual resources, milestone due dates, and other key information to ensure optimal utilization.

  • Proactively ensure that employees are not overburdened or over utilized which can lead to disengagement and burnout.

Cost effectiveness of resource allocation

Resource allocation planning is proven to be cost effective compared to informal allocations where informal judgements that are not supported by any analysis [ CITATION Bal161 l 1033 ]. If proper processes of resource allocation are utilized by a business entreprise, costs incurred through over expenditure may be avoided. This is through making of justified conclusions based on qualitative analysis rather than quantitative.

Resource allocation process and strategies

Strategic planning

Resource allocation starts with strategic planning where the business/company formulates its vision and goals for the future. Planning involves setting of objectives of the business.

Through formulation of goals, management is able to identify the resource requirements that is in need so as to facilitate in achieving the objectives. For instance, resources such as premises, machinery and human resources, can easily be identified during this stage.

Budgeting

The second step after planning is allocating sufficient resources to accomplish the set objectives. This is a reflection of project work and the timing of that work. A comprehensive budget provides management with an understanding of how funds will be utilized and expended over time for projects or operations. The budget’s accuracy is determined by the how better the resources have been identified to complete the work effectively.

The budget is based on the work breakdown structure (WBS). It includes all the work necessary to create a product. The WBS is created through a decomposition process resulting in deliverables defined at the lowest level of the work or task in project insight [ CITATION Ifi15 l 1033 ]. All the efforts to produce in producing the deliverable task can be defined in terms of cost and these costs may be incurred in labor, materials, facilities, services and overhead. The sum of all tasks within the WBS constitutes the total budget of the project. Project insight performs bottom-up budgeting, which means that the tasks roll up into summary task totals, and the project total represents the sum of all tasks planned and actual cost [ CITATION KoD15 l 1033 ].

Logistical management

This is the process by which the company manages the flow of resources coming into the company, flowing inside the company and flowing outside the company. To manage the flow of resources, the company has to establish the specific resources that it has and their suitability to achieve business operational plans.

The business plan resource requirements are listed below with an audit of each.

Resources requirement

Type of resource

Workplace resource requirement

The physical plant

premises

Equipment

Machinery

Special requirement

Technological equipment

materials

Stock and supplies

production

Human resources

Premises

The company’s buildings to be adequate to accommodate all the business activities.

The buildings to be structured in a manner required by the law to ensure safety of the users and easy access. It should accommodate for the needs of those with disability through provision of ramps at the entrance.

Proper waste disposal to be set up in the business premises.

Machinery

The staff using the machine has adequate knowledge on the use of the machine

The purchase and operational cost of the machine of the machine is within the business’s budget

The machine is safe for use and does not affect the user’s health

Manufacturer’s operational specification are available to be referred to by the user in case of a new user.

Maintenance cost should be affordable to the business.

The machine should be having spares so that in case it breaks down the maintenance team should be in position to fix it.

Technological equipment

There is training of staff on proper use of the equipment

Maintenance cost is relatively fair and there is available staff to provide technical support.

Enough security for the equipment is provided

Human resources

Staff performing a specific task should be enough for each to work a given number of hours as required by the law.

The remuneration for the staff to reasonable enough so that they get motivated to work with the company.

Those recruited to perform certain tasks must be capable and have the required training for the task.

Does the employee have enough experience as required set by the organization?

Are the employees flexible to work in a different location or are they fixed to only work in one place.

Is there any shortage in human resource in any department/section of the business?

How can the shortage be minimized and what is the procedure of acquisition of new personnel?

Integrative model assesses the success of an entreprise resource planning (ERP) [ CITATION Dav14 l 1033 ]. This model is a complex comprehensive software that is design to integrate all business processes and functions. This model is being adapted by many businesses as it is cost effective and saves time due to is fast speed of information transfer [ CITATION Eve15 l 1033 ]. Assessing the success of ERP is difficult due to its complex nature but with advancing approaches, more institutions worldwide are starting to adopt this systems [ CITATION Ifi14 l 1033 ].

This model was founded basing the possible relationship between the two business environments; the macro and micro-environments and its impact in the success of ERP assessment [ CITATION All15 l 1033 ].

When all the sections in an entreprice are linked together, management can easily prioritize on areas that show signs of failure as that will ensure the proper planning will be done thus preventing interference on business operations. This system will be able to compare the allocations for specific resources and their actual costs thus decisions made in acquisition of various resources will not interfere with the business’ budget.

References

Allnock , A. (2015). ERP Market Expanding Globally. IIE solutions.

Baltusen , R., & Niessen, l. (2016). Cost Effectiveness and Resource Allocation. Bimedcentral.

Davenport, T. (2014). Putting the Entreprise into the Entreprise system. Harvad business Review, 95-102.

Everdingen, Y., & Hillegersberg, J. (2015). ERB Adoption by European Mid companies. Communications of the ACM, 35-40.

Ifinedo , P. (2014). A conceptual Model For Assessing Entreprise Resources Planning Systems Success: An empirical Study involving the development of its block.

Ifinedo, P. (2015). Assessing and comparing the readiness of a developed economy. international government.

Ko, D., & King, W. R. (2015). Knowledge Transfer from consultants to clients in entreprise system information. MIS quarterly.