A resource is any material that is available to us in our surroundings that is economically viable, technologically accessible, and culturally sustainable and that enables us to meet our needs and desires. Resource management is one key factor for any company to run successfully. For a company, resources can be finances, staff, physical space, equipment, technology, and time.
Even for well-established firms, continually delivering products and services is challenging. Making sure there are enough of the appropriate resources and money on hand to perform jobs well and on schedule is a regular and ongoing challenge for the organization.
Thus, through this article, we will see what exactly “resource management” means, its importance, and a few tips for managing resources.
What Is Resource Management?
Resource management can be defined as the process of organising a project or program’s resources—people, money, and technology—and assigning them accordingly. The organisation will be in a better position to quickly respond to client requests and be adaptable to change if waste and duplication are minimized, operations are streamlined and automated, and efficiency is maximized. Better resource management is necessary for programme and project delivery.
The goal of resource management is to make the right resource available at the right time and place. There must be a thoughtful analysis of demand, supply, available resources, generation and distribution, the supply chain, required skill, and most of all, finance. Resource management is an umbrella term that covers all the different domains. In short, the goal of resource management is to minimise expenses while maximising profits.
Therefore, depending on the kind of project you’re working on, there are many different types of resource management. Resource management is a practise that can be applied in nearly any sector, industry, or organization. Resource management is surely a beneficial and important process. Let’s see the importance of resource management.
10 Importance of Resource Management
As fuel is to vehicles, resources are to firms. Importance of resource management is as vital as that. Resource management provides transparency to plan, monitor, and achieve goals and objectives. Minimizing both time and overuse of resources is the ideal purpose of managing resources. Moreover, resource management provides data and figures for cost analysis. The importance is way greater than the disadvantages. Let’s see a few of them.
- Planning and scheduling: knowing what resources are accessible and when to make them available at the right place makes planning and scheduling a crucial part of resource management.
- Make available the required skills: Making available the required skills requires evaluating the abilities of each individual and determining whether more abilities (or individuals) are required.
- Resource utilisation means knowing where individuals are already committed and whether such allocations are suitable.
- Resource prioritisation and allocation: allocating resources according to priority and determining which efforts need the most attention and maybe specialist skills
- Prevents unanticipated troubles: By anticipating your resources’ needs and planning how to meet them, you may address any gaps or issues before they arise.
- offers a safety net: Say the project failed because of a lack of resources (it happens). Resource management and planning demonstrate how you made the best use of the available resources and what additional steps you can take.
- Builds transparency: Other teams may see your team’s capacity and make plans appropriately if your team is overloaded or ready to take on additional projects.
- Teach teamwork: resource management teaches collaboration and knowledge sharing to make the right use of the available resources, reach targets, and make profits.
- Generating precise estimates: The key to effective resource management is precisely estimating labour and other resource requirements; otherwise, deadlines will be missed, there will be last-minute frenzies, and expenses will go up.
- Project prioritization: project prioritisation is an essential component of resource management because not all projects create revenue and resources are usually limited. With resource management, you can make sure the most crucial initiatives are always granted the necessary resources by having a clear understanding of project needs and business objectives.
Tips to Manage Resources in an Organization
Here are a few tips for managing resources in an organisation that will make the management process productive and successful.
- Limit or avoid multitasking: Although multitasking appears to be efficient, it frequently leads to decreased overall productivity. Reduce the number of concurrent jobs, and your resources will operate more effectively.
- Offer training programs: Training programmes for personnel will prevent your resources from being overutilized and will provide you with skilled staff and assured quality work.
- Consider the non-project time as well. Make sure to account for administrative time, paid time off, and other factors while making both long- and short-term plans. Don’t forget about unforeseen project activities; provide a way to record this time because failing to do so will prevent you from being aware of the required real-time. Recognize that time spent on routine, everyday activities like administrative work will naturally be lost (e.g., email, general meetings, etc.).
- Recognize the resources that are in short supply and work on them. The 80/20 rule, which states that 80% of impacts or resource restrictions come from 20% of the resources, is frequently used. These are the individuals that are in high demand for the job. To prevent bottlenecks and pointless delays, pay attention to these limited resources and make plans around their availability.
- Accept diverse working styles across the board and with all available resources. Certain work types, and even various groups within your business, may profit from a particular methodology. As a result, make sure the tools and strategies you choose are compatible and efficient.
- Make use of resource management online tools.
FAQs on Why Do We Need To Manage Our Resources
What is resource management in project management?
Resource management can be defined as the process of organising a project or program’s resources—people, money, and technology—and assigning them accordingly. One of the most crucial elements of project management is resource management. Project resources include the raw materials, tools, and labour required to complete project tasks. All of these resources must be managed during the course of a project.
What are the three elements of resource management?
The three elements of resource management are people, planning, and the time or duration of the project.
What is an example of resource management?
Planning any relevant tasks, budgeting, and scheduling are a few examples of resource management.
What are the types of resources in project management?
- Work, material, and cost are the three types of resources.
- Work resources are the people and tools needed to finish the tasks.
- Cost resources are the price paid to complete a task—expenses for transportation, food, etc. As a project moves forward, materials are used as consumables.
What are the five steps for resource management?
The five steps for resource management are as follows:
Step 1: Resource planning comes first. You must initially comprehend the work in order to ascertain the resources needed to finish a project.
Step 2: Estimate Resources/Allocation of Resources
Step 3: Gather resources.
Step 4: Create and manage the teams.
Step 5: Keep evaluating your resources.
What are the five elements of resource management?
The five elements of resource management are as follows:
- Resource scheduling
- Resource utilisation
- Resource forecasting
- Resource and capacity planning
- Business intelligence and reports
Last but not least, resource management is a skill and a process to make the firm run with successful business goals.