Resource Allocation refers to utilizing the hardware and human resources in an effective yet most usable way. The project managers should allocate the resources to fulfil the project’s needs, even if they are scarce. Resource allocation should be done to fulfil the organization’s strategic goals economically.
Every project has some resource requirements without which it cannot be completed. These resources include:
These resources include all the people involved in the development process, such as testers, project managers, project teams, project owners, etc.
Time is the most critical resource that a project team has to utilize in the best way possible to meet the project’s deadlines.
Any material or hardware devices needed for the completion of the project fall into this category of resources.
All the projects have resource requirements mentioned above, and some of these resources go scarce during the project development. So, resource allocation is the company’s strategy to decide how the scarce resources should be used effectively.
It helps the project managers choose the best available resources for a project and manage them throughout the project development lifecycle to avoid the under or over-utilization of a particular resource.
Advantages of Resource Allocation
Resource allocation is the need of every project. It is important because if the resources are not managed properly, the project may fail, or the project team may fail to complete the project within the given budget or cost. So, here are some of the benefits associated with effective resource allocation:
Resource And Cost Efficiency
If you do not consider the resource requirements for a project in advance, you might end up buying or hiring unnecessary resources. This increases your project’s budget. So, resource allocation prevents you from spending money on hiring useless resources. It helps you in completing the project with the available resources.
Improved Team Morale and Wellbeing
While allocating the resources, you should consider the actual availability of the resources rather than what is written on the paper. Something written in the documentation might not be optimistic. This way, you minimize the chances of overloading your employees and maintain their well-being and morale.
How to Allocate Resources?
The Resource Allocation is a complete process having some steps to be followed:
1. Know Your Project and Team
Before allocating the resources, make sure you understand the project and know your team’s expertise. Knowing only this, you can properly assign the tasks to your team members. Start by creating the project plan, containing the requirements and deliverables of the project. Now, use the skills’ matrix to decide what task should be assigned to which employee while considering their area of expertise.
2. Discover the Risks
Every project has some risks associated with it. Try to identify those risks in the early stages of the project life cycle and mitigate those risks in the best way possible.
3. Track the Progress of the Project
Track the time and workload to know how your team is doing. Compare the estimates with the actual to know the accuracy of the estimates. Furthermore, as a project manager, you should keep an eye on the project’s budget and ensure it does not exceed the proposed limits.
4. Analyze the Project
Use the data you gathered during the previous projects to utilize the resource for your upcoming projects better.
By following the steps mentioned above, you will be able to allocate and utilize all the material or human resources available better and effectively without wasting any time, money, or effort.