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What Is Resource Allocation? How to Allocate Resources for Projects

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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.

human resource allocation in project management

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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.

human resource allocation in project management

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

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Resource Allocation in Project Management: A Guide to Project Managers

Home Blog Project Management Resource Allocation in Project Management: A Guide to Project Managers

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In project management, where the delicate balance between productivity and exhaustion hangs in the air, resource allocation in project management takes center stage. According to Float's Global Agency Productivity Report , the struggle is real—74% of workers admit to feeling overbooked at least once a month, with 26% grappling with an overwhelming workload on a regular basis.

Resource management becomes a key lifeline in the middle of a cluttered landscape where businesses heavily rely on resources. In fact, an astounding 83% of executives say that managing resource allocation is the most important management tool for promoting growth.

What is Resource Allocation in Project Management?

Resource allocation in project management is the technique of employing and utilizing available resources efficiently and effectively to accomplish project objectives. The process involves determining, allocating, and managing resources such as equipment, budget, materials, human resources, and time throughout the project lifecycle. 

Businesses usually have a limited amount of resources, so it's critical that they utilize those resources efficiently to reduce waste and increase return on investment. Although allocating resources is a crucial first step in project planning, managers also keep an eye on resource utilization over the course of a project and redistribute resources as appropriate.

Resource allocation in project management is crucial due to various reasons, including:

  • Time management, 
  • Optimal resource utilization,
  • Cost control,
  • Team collaboration,
  • Risk mitigation, 
  • Prioritization and decision-making,
  • Performance tracking.

The elements of resource allocation consist of identification, planning, assignment, optimization, and tracking to ensure efficient utilization and successful project execution. The best Project Management courses will help you get globally recognized certifications and understand allocation in project management better.

Types of Resource Allocation Methods

Typically, there are four types of resource allocation methods. They are as follows:  

Type 1: The Critical Path Method 

The critical path method (CPM) of resource allocation helps with project planning by identifying the resources that will be required at each stage. This form of resource allocation has a preventative stance, assisting in the early identification of details to help avert issues and resource reallocation later on in the project. It's crucial to remember that this approach works best with projects that are more likely to follow a certain pattern.

Type 2: The Critical Chain Method 

The Critical Chain Method is a project management strategy that concentrates on controlling and distributing resources based on the critical chain of the project, which is the longest chain of interdependent tasks. 

By taking into account uncertainties and buffers, it seeks to maximize resource use and project schedule. This strategy aids in preventing resource bottlenecks and enhances overall project performance by identifying and safeguarding the essential chain.

Type 3: Resource Leveling 

Resource leveling is a technique used in resource allocation to match the availability of resources with the demand for them over the course of a project. Providing a more equitable distribution of resources entails changing the project schedule by postponing or extending operations. 

The goal is to avoid overusing or underusing resources, maximize resource use, and reduce project delays. Resource leveling contributes to the upkeep of a more effective and manageable project workflow by easing resource demands.

Type 4: Resource Smoothing 

In resource allocation, resource smoothing is a technique used to manage scarce resources while keeping the project on schedule. It entails changing resource allocation while working within the confines of predetermined project deadlines. 

The main goal is to maximize resource consumption while making sure that key jobs have the resources they require. Resource smoothing tries to allocate resources effectively without prolonging or delaying the project's total duration, in contrast to resource leveling, which modifies the project timetable. 

To successfully execute a project, it aids in finding a balance between resource availability and project timeframes. Here, the PMP certification course will help you maximize your learning and make resource allocation smoother.

Benefits of Resource Allocation

Resource allocation for a project is beneficial in various ways. It helps in project planning and organization. Creating a plan for an activity beforehand will ensure effective team collaboration and help it perform exceptionally well. Resource allocation plays a crucial role in strategy implementation, ensuring that resources are strategically allocated to support the execution of organizational strategies.

Given below are some of the coveted benefits of resource allocation in project management: 

Ensures Successful Project Completion

For any project to be successful, it’s crucial that it has the right resources. Business leaders or project leads can allocate appropriate labor, money, materials, and equipment to meet goals successfully. 

Project Submission within a Stipulated Time and Budget

If business leaders ensure proper resource availability during the initiation stage of work processes, it can aid the team to finish the project within budget and required time. Not only will this help in brand awareness, but it will also lead to client satisfaction. 

Cost Reduction

Resource allocation planning will assist a company in discovering and allocating the best resources for a project at reasonable prices. They can boost profitability, identify the most cost-effective strategies, and produce significant returns on investments.

Enhance Employee Skill Sets

Assigning team members or human resources to various types of tasks can aid in their professional growth and skill development. This may enhance their capacity to support a company's goals and mission.

Boost Employee Productivity

It’s well known that when workers have the right opportunities and resources to finish tasks, they usually engross themselves completely in it with great enthusiasm and perform better. Such employees often have high productivity levels and work efficiently in teams. 

Enhance Products and Services

Companies may create high-quality, competitively priced goods and services if they have access to the right resources. Such product improvements can foster a practice of time-focused resource allocation that ultimately smoothes the product timeline. 

This makes resource allocation in strategy implementation a critical factor that ensures the optimal utilization of resources to execute organizational strategies effectively.

How to Build Resource Allocation in Project Management?

The resource allocation process involves four stages as follows:

Step 1: Build a Project Plan

Create a project plan first, defining the concept, objectives, and team for the project. Assign emphasis areas, stages, and activities to the project and develop a work breakdown structure for it. You can then use this to create a general timetable for each deliverable.

Step 2: Identify Resource Requirements

After you have created a task table, analyze the resource requirements for each component.  They can be classified as either human or non-human resources. In the case of human resources, be specific about the abilities and talents required of team members. Set down the essential hardware and supply requirements for non-human resources. When you record these resource requirements, simultaneously estimate the budget for each project or project phase.

Step 3: Discover Resources and Funding

Once you have estimated your resource requirement, use the right software to determine the availability of internal and external resources to your company. You may need to rent equipment, hire new employees or make other decisions to obtain assistance for the project. 

Incorporate the expenses associated with these resources into the comprehensive financial plans of your project and organization.

Step 4: Allocate Resources and Funding Based on Plan

After you've gathered your resources, distribute them in accordance with your plan. Ensure that every corporate leader is fully aware of the resources at their disposal. Using dashboards and reports, keep track of resource utilization and performance, and make any necessary plan adjustments. 

For instance, you could want to swap out resources or reallocate them to a project with a high priority.

What are the Common Problems of Resource Allocation?

While resource allocation in project management, the project/resource managers may encounter the following challenges:

  • Resource Overallocation: When more resources are used for a task or activity than available or required, it results in inefficiency, higher costs, and a higher risk of team member burnout.
  • Resource Underutilization: Allocating resources to tasks or activities that do not fully exploit their capabilities results in resource underutilization, which wastes resources and lowers productivity.
  • Outdated Software: Although some businesses continue to use outdated software for their resource management's central organizational structure, using cloud-based software may be more advantageous. This enables project managers to make adjustments in real time, prevent disputes and misunderstandings, and conserve time and resources thanks to computer automation features.
  • Differences in Resource Availability: Each project may experience unanticipated changes in the availability of human or non-human resources because workers may become sick, equipment may malfunction, or other problems may arise. Make backup plans for these scenarios in advance so you can deal with them right away and easily overcome these difficulties.
  • Alterations in Project Scope: Each project may encounter unforeseen changes in the project scope and availability of human or non-human resources due to employee sickness, equipment failure, or other issues. Create backup plans for these eventualities in preparation so you can handle them quickly and get through these challenges.
  • Lack of Communication:  Effective communication is key in ensuring the success of a project, and it's important for managers to make sure everyone involved has access to resource plans and requirements. Consider using cloud-based project management software to share documents, calendars, and schedules and allow team members to collaborate in real-time.
  • Improper Resource Monitoring and Control:  Poor tracking and monitoring of resource usage and performance can lead to inefficient resource allocation and make it harder to find and fix problems.

Enroll now in the  Prince2 Foundation and Practitioner online training to become a certified project management professional and elevate your career to new heights.

Resource Allocation Plan Examples

Let us look into the resource allocation examples:

You can use the following resource allocation plan examples when allocating funds for a project: Examining examples of resource allocation strategies will help you get ready for your own strategy, even if they vary depending on the goals and priorities of a company. Here are three instances of the procedure:

Example 1: Human Resource Allocation Plan

Here’s an example of the IT industry. 

To guarantee the effective use of software developers, John is allocated 50% of the resources for a software development project running from January to April, Lisa 30%, and Michael 20%.

Example 2: Budget Resource Allocation Plan

During a marketing campaign from September to November, the marketing budget is divided as follows: 40% goes to digital advertising, 30% to print advertising, 20% to event sponsorship, and 10% to content creation.

Example 3: Equipment Resource Allocation Plan

Excavator A is allotted 60% of the work in a construction project that is anticipated to last from May to August, and Excavator B is allotted 40% of the work.

Example 4: Agriculture Industry Allocation Plan

Farm owner Anne needs to make a plan for allocating resources for the following three months. She makes the decision to concentrate her efforts on allocating funds for a project to build a high tunnel system on her farm. 

She devotes 20% of her income to it because it will cost a lot of money upfront but could yield a great return on investment. She submits an application for small farm grant funds in order to pay for the resources.

Given below is the project resource allocation template in Excel format: 

Template:  Project Resource Allocation  

For small and medium-sized projects, an Excel template is the greatest resource management tool available.

Microsoft Excel is a strong tool for project management. It's one of the best for managing resources in smaller projects for the following reasons:

  • Excel may be used without any training.
  • Built-in It is simple to assign resources start and end dates and to calculate availability thanks to date formats.
  • For multinational teams, automatic date format adjustment
  • Simple to set limits to control resource loading
  • You may manage edit access to limit who can change the project timetable.
  • Your complete project team can see the project in real time if you use Office 365 or Google Sheets.

Resource allocation in project management is a crucial component that can make or break a project's success. Project managers can maximize productivity, meet project deadlines, manage costs, and reduce risks by efficiently identifying, planning, and assigning resources. 

Allocating resources effectively is ultimately the secret to maximizing a project's potential and ensuring its successful completion. Projects can fulfill their goals, promote teamwork, and overcome the difficulties posed by varying requirements and uncertainties with efficient resource allocation. So, take charge of your project management skills and propel your career to new heights with  KnowledgeHut Project Management courses .

Frequently Asked Questions (FAQs)

The three main elements of resource allocation include resource identification, resource planning, and resource assignment. 

The resource allocation principles include prioritizing high-value activities, balancing resource demand and supply, and considering resource constraints to optimize productivity and project outcomes. 

Moreover, it requires regularly assessing and modifying resource allocation strategies as necessary, coordinating resource allocation with project objectives, and utilizing data-driven insights for informed decision-making.

There are four main steps in resource allocation- creating a project plan, identifying resource requirements, discovering resources and funding, and allocating the resources based on the plan. 

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Kevin D.Davis

Kevin D. Davis is a seasoned and results-driven Program/Project Management Professional with a Master's Certificate in Advanced Project Management. With expertise in leading multi-million dollar projects, strategic planning, and sales operations, Kevin excels in maximizing solutions and building business cases. He possesses a deep understanding of methodologies such as PMBOK, Lean Six Sigma, and TQM to achieve business/technology alignment. With over 100 instructional training sessions and extensive experience as a PMP Exam Prep Instructor at KnowledgeHut, Kevin has a proven track record in project management training and consulting. His expertise has helped in driving successful project outcomes and fostering organizational growth.

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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.

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Resource Allocation – The Guide for Project Managers and Resource Managers

Resource allocation helps you to choose the best available assets for multiple projects and manage them throughout the work, so you can avoid under or overutilization of your employees. Sadly, not all project managers use it to their advantage. 

What will you get thank to this article:

  • How resource management software solves resource allocation obstacles
  • How does it look resource allocation in project management
  • Differences between resource allocation, resource scheduling, and resource management
  • Common resource allocation obstacles
  • How to implement efficient resource allocation in your organization

Only 26% of companies always use resource management to estimate and allocate resources, and 36% of them do it often, according to the PMI survey (“Pulse of the Profession”).  At the same time, less than 60% of projects meet the original budget and barely 50% of them are being completed on time, the same study says.

The functions of resource allocation in project management processes

Resource allocation in the context of project management and its process.

Many project managers who want to introduce what project management is, use the Project Management Institute (PMI) definition. According to the last one, project management is about using whatever it takes to deliver something helpful to people – as they say, to “deliver value to people”. 

To be more precise, the APM believes that project management is about using some competencies, abilities, talents, expertise, tools, machines, instruments, software, methods, techniques, and processes to “deliver value to people”. 

Resource allocation and project management process

The phrase “value to people” stimulates us to suppose that outcome of project management could be everything. A house, an app, a park, or even some social movements, including a crusade, LGPT, or religion. Anything which is useful for some digit of individuals.

The above-mentioned comments are the reason why we – the business-embedded people – use the definition proposed by the Association for Project Management (APM). The proposed understanding of project management contains criteria that help with splitting just management from project management. Let’s take a look:

Project management is the application of processes, methods, skills, knowledge, and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has final deliverables that are constrained to a finite timescale and budget.

Why resource allocation important is? Good managing resources help with bringing the project success

When we compare both the APM and the PMI definitions, we see some nearness. Both are about running things and using knowledge, experience, methods, etc get the things done.  But only the last characterization of project management is – we’d like to say – businesslike. 

The time, budget, and “project acceptance criteria” are the aspects of – let’s say – the real project management (and of course, resource management or resource allocation processes). All we know is that in the business relations world any project has its objective. And any has to be done at a certain time, within a given budget, and must be endorsed by the principal – whether a customer or a director in your company.

And here is the main distinction between management and project management. Just management is a continuous, ongoing process. Project management has its final outcome provided within a finite time span and budget. 

This distinction has the consequence that project management is not just a process, but a structured process. It is called the project management life cycle and it usually takes the form of 5 phases. 

  • Initiation and conception
  • Project planning
  • Launch and execution (including resource planning and resource allocation)
  • Monitoring and controlling
  • Project closure

Just like the Ganntic company – our competitor in the resource allocation systems market – resource allocation and resource planning (its an alternative term for resource management) are aspects of the project management life cycle process. They are responsible for planning, organizing resources (employees), and measuring their productivity (yes, it’s the 4th phase of the project management process mentioned above). 

Resource allocation – the most difficult part of the project management process

Now we know where to find resource management in the context of the project management life cycle. It’s time for understanding resource management. Why? Because resource allocation is part of resource management, and resource management – as you already know – is part of project management processes.

Thanks to the APM Body of Knowledge, we know resources are understood very widely. Money, tools, machinery, technology, and – the most important one – people and their skills. Resources mean everything that is requested to finalize a task and project.

So what’s the connection between resource allocation and resource management (resource planning)? Let’s take a look at the definition given by the APM. For them, resource management is: 

(...) acquiring, allocating and managing the resources(...) required for a project. Resource management ensures that internal and external resources are used effectively on time and to budget.

As we see, identical to the definition of project management, time and budget are those aspects that are critical in this process. And we shouldn’t exclude “acceptance criteria” as well. 

Nevertheless, resource management is understood as the process of planning, selecting, scheduling, and allocating resources to meet the acceptance criteria and finish the project.

In resource management and resource allocation as the element is about identifying available and sufficient resources, and matching them with appropriate tasks at the right time. And the function of the resource or project manager is to identify the employees with relevant skills and experience (so-called, resources) to deliver the work, (its part of planning), and decide when the particular resources will be required (via resource allocation or resource scheduling).

This article could force some less experienced ones to think it shouldn’t be difficult to do. So, at the end of this chapter, we’re going to use the annual report that comes from Wellington company.

human resource allocation in project management

Very serious and very various images of resource allocation in project management

Before we will talk about the meaning of resource allocation in project management, let’s begin with an understanding of one of the most important terms in this article – resources. Thanks for this introductory paragraph you will better feel the differences between some definitions of resource allocation mentioned in the paragraph below.

As you can imagine, resources can be absolutely different – from material to non-material. And is no different in the context of resource allocation but understanding what “resource” means depends on the industry where is in use.

  • Equipment and tools
  • Facilities (workspace, offices, etc.)
  • Materials (gas, fuel, desks, cars, etc.)
  • An employee, a team member, and her/his skills – here are the resources in project management

Resource allocation in project management and project schedule it's the main role of project management tool

Resource allocation – the meanings’ comparisons and propositions

In this chapter, you’ll see many brands – including our business competitors.  We compare a few definitions and meanings presented by Brittanica Dictionary, but also our well-recognizable competitors – Wrike, Resource Guru, or TeamGantt company. The meanings from more general to more exact and related to project management activities.

Cambridge Dictionary informs that resource allocation is

a process of dividing money, skills, etc. between departments of an organization.

More strict in another very recognizable Brittanica Dictionary, that suggests the economical background of our term. Allocation of resources is understood as an:

apportionment of productive assets among different uses. (Brittanica Dictionary)

An effective resource allocation process assume a great resource allocation plan to avoid resource conflicts

But – as a part, let’s say, a project management industry – we will be focusing on meaning connected to this branch. So, Float – our competitor and well-known resource allocation in project management software provider – informs us in one of its blog articles that r esource allocation is the process of appointing and handling assets to help a team’s tasks, projects, and strategic objectives.

But when continuing reading and being more accurate, Float emphasizes two aspects of resource allocation. The first is the matching. Allocation means matching employees’ or team members’ competencies, and experience to the right projects or tasks. And (relevant) matching is one of two key elements of its resource allocation understanding. 

And secondly, ensure each team member, and each employee taking part in the project is able to execute every assignment and any task in the pipeline.

From Saviom’s perspective, another software that is aimed at helping project managers in resource management processes:

Resource allocation, also known as resource scheduling, recognizes and assigns resources for a specific period to various activities.

These activities – as we read in other places written – can be related to the project or cannot. Admin, support, operation, etc. Here Saviom draws attention to recognition as the first important element of a resource allocation process. Second – like many others – assigning. The third element is “specific period”.

Poor resource allocation software won't help in the implementation of any project plan

On the website projectmanager.com we’re informed that the resource allocation term means the same as resource management and resource scheduling (more about that in the next paragraph). And actually, from their perspective, resource allocation is just a resource scheduling that takes into account available resources required by a task or project to be finished with expected results.

Closing this chapter, we would say simply:

Resource allocation simply means assigning resources (mostly people, their skills, including their availability, current or previous performance, and time management skills) across various tasks in a project to work toward your deadlines in the most effective and economical way possible.

Resource allocation de facto involves the availability of resources, current and expected skills, (participating in processes that will ensure the use of available resources, either alone or in cooperation with HR or an external company), experience (both project managers and employees), estimations, dependencies, priorities, and change requests that appear during the whole journey of product development or project management.

From this point is entitled to say that the last one meaning suggests that resource allocation is a result of many choices behind it. The last decision of choosing the right resources is preceded by micro-decisions that influence team performance and determine the project’s success.

Resource allocation vs a few other terms  – they aren’t the same?

This part could be also the part above but because of its importance, we’ve decided to talk about this topic in a separate paragraph. Why? 

Treating “resource allocation” as a synonym for “resource scheduling” (i.e. Saviom) and even “resource management” (i.e. Project Manager) isn’t quite new. But the project manager’s environment and university representative, there is no consent to equate one term with another or a third. For some of them, allocation of resources is a resource management process.  

Systematic resource allocation process and working on existing resources help with finishing project tasks

In Wikipedia, we witnessed such information which isn’t quite close to PMI suggestions:

In project management, resource allocation or resource management is the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. 

From the Project Management Institute’s perspective, it’s not quite true. A few of the aspects presented above definition are true: availability of resources and project time. But what about the budget? Mostly the budget determines the time when something can be done. Because, if you have the budget, you can get decide the accessibility of resources – people participating in the project and any other resources (tools, equipment, etc.).

Resource allocation also takes into account the availability, capacity, and utilization of resources across a firm but should not be confused with resource scheduling.

From the visual-planning.com perspective:

Resource scheduling refers to the set of actions and methodology used by organizations to efficiently assign the resources they have to jobs, tasks, or projects they need to complete, and the schedule starts and ends dates for each task or project based on resource availability.

Float suggests resource scheduling is a process used by teams to organize and structure their employees so the tasks they need to complete are scheduled based on availability and capability.

But Resource Guru emphasizes the role of recognizing or identifying the accurate wink when resources should be assigned. They understand resource scheduling as a process of identifying precisely which resources are required and then scheduling when they’re needed. From this perspective, properly allocated resources are the result of very good identification of employees with relevant skills (or just suitable skills among available employees) that assure the project will be done with expected requirements. Of course, this assumes a project or resource manager that can perfectly, or at least very well, assess employees’ potential and their helpful role in a particular project. 

Nevertheless, keeping the above considerations in mind and those about resource allocation in project management, it’s hard to resist the feeling that understanding the role of allocation of resources has appeared many times as a part of project resource management or even the resource scheduling process. But treatment as a synonym is also legitimate.

The most important metrics for resource allocation in project management?

  • Availability 
  • Resource utilization – the utilization rate planned for employees to be realized during the project against their total capacity.
  • Estimated vs. actual cost per team member (aka resource cost variance)
  • Estimated vs. actual hours worked per team member
  • Billable vs non-billable hours

Problems faced by r esource allocation in project management 

Resource management is prone to several challenges that you need to be aware of to properly allocate resources and manage them throughout the project.

1. Client changes

As a project manager, you might have already experienced how changes to the scope, timeline or budget can affect project delivery. With resource allocation, it’s actually the same – having an up-to-date resource calendar will help you to smoothly adjust resources once the changes appear.

2. Availability of resources

Starting off a new project , ideally, you could use any resources you need that are available at your company. But what if your agency is running multiple projects and you have to negotiate over the same resources with other PMs? Or what if a given team member is out on their sick leave? Availability changes and you have to monitor it all the time to spot threats to your project’s delivery.

Resource allocation in project management

3. Project dependencies

Allocating resources you need to include project dependencies, which are a form of a relationship between the tasks or activities in the project. For example, in IT projects there are tasks that can only be done after some other ones are completed, so there’s no point to hog resources early on.

4. Project uncertainties

Even if you’ve checked all the boxes when starting off a project, and agreed on the timeline , the budget, and the scope, there’re always things you can’t predict. Resource management requires you to be able to respond to proje ct uncertainties, e.g. by shifting resources from other projects or re-assigning them.

5. Priorities across the company

If your company runs multiple projects simultaneously, you and your peers may have to share limited resources, very often in a similar timeframe. But even if you manage to negotiate over resources you both need, there may be a change in priorities regarding one of the projects.

Resource allocation in project management – how to do it better?

Let’s take a look at how to effectively use the resources at your disposal.

1. Know the project and the team

Only by knowing the scope and resources available at your company, you can properly assign team members to your project.

Start by creating a high-level plan of the project , consisting of its requirements and deliverables. Then, as you know exactly whom you will need to complete the project, you can use a skills matrix to discover which employees at your company to involve.

Or, if you’re a Teamdeck user, you can simply filter your employees by their skills, spotting relevant employees and their existing bookings in no time:

Resource allocation strategy includes resource scheduling

As you’re filtering by the people you’d like to book for your project, check their availability to see if they are actually free to join your project. The simple availability bar helps a lot:

Resource availability in the resource allocation process

At this point, the rule of thumb is to not get carried away and over-allocate resources for the project. Actually, resource-hogging is considered a mistake project managers make to protect themselves from uncertainties. But, in turn, it makes project estimates and long-term plans inaccurate, affecting the company’s bottom line.

Always think of the big picture while allocating resources. Check the bookings already made by other PMs to spot resources you may both need, in case you should adjust your schedule to that.

Knowing when your team members have their days off helps, too. See the yellow entries below? You need to include them in your estimate, as that’s exactly when these employees will be unavailable. Similarly, you can spot national holidays taking place during your project.

Leave management feature inform a project managers on available resources

2. Uncover risks early on

We’ve talked about it a bit in the resource management challenges section. As a project manager, you are well aware of risks like client reviews, delays, personal emergencies, competing projects, etc. They interfere with the allocation of resources, too.

Once one of the above-mentioned challenges occurs, you need to adjust your bookings. Having a high-level overview of resources at your organization will help you find other resources more quickly, re-allocate resources, extend or cut existing bookings, or even delete some if needed.

3. Keep track of the project

Remember how resource allocation is about improving the effectiveness of your team’s utility? Now is the time to check how you’re team is doing. You can do it by measuring resource utilization .

Start with tracking the time and workload. In Teamdeck, you can easily spot employees with too much or too little (which can also be an issue) to do. Remember the availability bar? Overtime is marked with red color, while the unutilized time is white.

Measuring resource utilization, you can also use a simple formula:

Resource utilization = Busy time / Available time

This way you can quickly find out whether your team is booked to its full potential, or not.

During the project, it’s also recommended to compare estimates with actuals once in a while and re-allocate resources if you need to. Chances are that because of some changes you need to adjust bookings to avoid under or overutilization of your resources, and to meet the project’s requirements.

Setting up regular check-ins with your team will help you to spot these threats, too.

As a project manager, you may also be responsible for tracking your project’s budget . You can do it based on your team’s timesheets, multiplying the number of hours they’ve spent on the project by the rate you charge your client per hour. Again, by comparing estimates with actuals, you can see if you’re on the budget, or not.

4. Analyze the project

Using the data you gathered during past projects will give you a huge advantage. Based on that data, you will be able to better plan and manage your future projects. Having a resource management software with custom reports helps a lot, as you can then organize that data to calculate different metrics, like employee payroll or sales KPIs .

Systematic resource allocation process and working on existing resources help with finishing project tasks

Benefits of resource allocation

As you can see, by following the right processes and using a complete resource management tool, you can make resource allocation easier and benefit from it in many ways:

  • It improves the visibility of all resources across the company
  • You can avoid under and over-utilization easier
  • It helps to keep bookings more accurate
  • It’s easier to negotiate bookings with other PMs

Teamdeck.io - the project management tool for resource allocation process - signup

Are you looking for software to increase resource allocation in project management? Try Teamdeck – the dedicated solution for resource allocation

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human resource allocation in project management

Capacity Management: Definition, Strategies, and Examples

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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.

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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.

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resource allocation on project management.

As a project manager, people rely on your planning skills to accomplish their tasks. But this involves more than direction and deadlines. Resource allocation in project management, or getting the right stuff to the right people, is crucial to success.

This process is complex and involves a deep understanding of what your team needs. A good first step is to ask what your direct reports require for their specific tasks. Project management software titles, like Saviom and Resource Guru, can make your life much easier, too.

If you’re ready for a crash course on resource allocation, then let’s dive in.

What Is Resource Allocation for Project Management?

Resource allocation for project management is the process of committing labor, equipment, and money to each step of a project. This task also involves actively analyzing data to ensure resources are effectively utilized.

Indeed, proper allocation is crucial to completing work. Without sufficient laborers, for example, your team may be too thinly stretched to construct a building in a narrow timeframe, creating a nightmare for everyone.

But resource allocation also buoys other aspects of a project. Generously providing your direct reports with what they need builds trust, which improves communication and reduces turnover.

Read More : Top 10 Project Resource Management Best Practices for Project Managers

Ongoing tasks and data-driven decisions

Keep in mind that resource allocation is a dynamic process. You must constantly reassess your needs as work progresses. For example, if a team of computer programmers is falling behind, they may consider hiring several more workers if the budget allows—even if they didn’t plan to originally.

And once your project wraps up, you’ll need to draw conclusions for next time. Specifically, you’ll want to clarify resources that went unused so you can avoid wasting money on them in the future (more on this below).

What kinds of resources do project managers allocate?

As mentioned above, project managers allocate labor, equipment, and money. But what this looks like in real life varies per project.

For example, a construction project manager considers available excavators and workers. Meanwhile, an event planner works mostly with money and budgets as they book venues and caterers.

Here are some other examples of resource allocation for project management:

  • Delivering 10 company pickup trucks to a construction site on a deadline
  • Arranging to have 10 workers from another team assist on a project
  • Allocating 15 company laptops for a software project

By planning resources in advance, you can minimize project issues, such as delayed deadlines or communication problems. Clear plans also keep stress low, which can lead to greater team trust and higher morale for even better results.

Read more about the best tools for resource management .

How do project managers allocate resources.

The first step to resource allocation involves defining your budget, current resources, and timeframe. These three elements are the foundation of a successful project. And to help avoid shortcomings, it’s wise to cushion in extra funding and time, if possible.

Once you have dollars, assets,  and time mapped out, the fun can begin. Let’s explore the next steps in detail.

Nothing can get done without the right people. As a result, if you need more staff, crafting a hiring plan is a top priority. Of course, you may have to turn to others to get an accurate read on staffing needs or plans. Consult seasoned managers for recommendations or for their expectations if they’re involved in the project. For example, a director of marketing can advise you on how many copywriters they’ll need. You’ll also need data on estimated pay for each new worker. If you’re looking for top talent or exceptionally specialized professionals, they’ll demand higher compensation. And don’t forget to budget extra for non-monetary compensation, like insurance benefits and catered meals, if it comes out of your project budget.

Once you’ve got staffers nailed down, you’ll need to arrange for the tools and equipment they require to complete their tasks. This could mean ordering computers for a team of programmers, or it might involve getting a crane and tractor for a construction site. It could even include assets like software. If you don’t have in-house workers or assets to cover every task reasonably, you can rely on third-party services for many needs, such as rentals and contractors.

It’s not enough to set it and forget when it comes to resource allocation. Workers quit unexpectedly, supplies run out, and budgets get busted, to name a few surprises. So be sure to develop a monitoring plan. This could involve frequent check-ins with field supervisors, or if you’re gifted with ample funds, you could prepare for shortcomings in advance. For example, you could order two or even three times the amount of supplies needed and save any excess for future projects. Some industries, such as food service, can’t keep extra resources sitting around. But if it’s practical to allot more than what’s necessary, then you can avoid falling short mid-project. The bottom line is you’ll need to prepare for unforeseen challenges. Creating backup plans for labor, money, and equipment shortages can help mitigate delays and problems.

How do you measure resource allocation effectiveness?

Well done deploying everything your project needs. Now you need to ensure your resource allocation is effective by supervising several key metrics, such as customer and staff satisfaction.

Here are the top things to monitor for resource allocation effectiveness.

ROI (return on investment)

This metric keeps tabs on how efficiently money was invested. The basic formula compares how much cash was spent versus the value received in return.

For example, say you spent $1,000 on an elaborate engineering software package. Because it made some processes more efficient, the team was able to do more work in less time, which brought in an extra $10,000 that month. So the ROI would $9,000 ($10,000 subtracting the $1,000 software cost).

Resource utilization rate

Nobody wants resources sitting around gathering dust. To dodge this issue, you’ll want to monitor the resource utilization rate. This metric measures the frequency something or someone was used for a project. 

All you have to do is divide the number of hours an employee or other asset is utilized by the maximum number of hours that person or asset can be utilized. For instance, say a cross-departmental developer is allocated to a project for 40 hours over several weeks. But unexpected needs come up, and they spend 50 hours on the project. 

In this case, the resource utilization rate is 125%, which isn’t ideal for a shared resource like a cross-company developer.

Alternatively, say the developer only spends 30 hours on the project. That would shift the resource utilization rate to 75%, which could be seen as a positive in this particular scenario.

Your company may have different parameters for what is considered an optimal resource utilization rate.. But if something is scarcely deployed, consider cutting it out in the future to save money.

Client satisfaction

Certainly, you have an idea of what a successful project looks like. But this dream is worthless if it isn’t what your client wants.

As a result, you’ll want to keep clients and end-users in mind when allocating resources. This forethought is especially critical if a customer has to pay more if you go over budget. Think about a client’s specific requests and if your resources align with this vision.

For example, a real estate developer might have requested marble countertops on the upper floors of a building. Failing to adhere to this preference and going with a cheaper lookalike instead of what they requested may result in dissatisfaction, leaving resources poorly spent when the job’s redone with the right countertops.

Employee satisfaction

Since human resources are the backbone of every project, keeping morale high is a must. Classic supervisory best practices, like offering a good work-life balance and competitive salaries, are ideal.

But giving workers the autonomy and resources they need to do the job right can keep employees satisfied and in the role—and experienced employees are more efficient. The same goes for contractors. If workers feel like they’re constantly making do with too little, the frustration can pile up and lead to turnover or other issues.

Time-to-market

This classic project management concept focuses on how long it takes to go from idea to finished product. Since resource allocation is the gas that keeps a project running, time-to-market reveals how efficiently resources were deployed and utilized. Going past a deadline means there are inefficiencies that need fixing and vice versa.

Sure, you might have saved some money buying cheaper equipment. But if the more expensive tools would have helped your team create a higher-quality product faster, then that could be considered a poor use of resources.

With this in mind, you’ll need to evaluate the quality of the finished product. This consideration makes use of the principle of return on investment, as high-quality items might cost more yet provide greater value.

For example, if your software project produced a glitchy product, consumers may not be as interested, impacting your profits. Spending more money on a few software testers could have prevented this issue and led to a better bottom line.

Read More : Capacity Planning vs. Resource Management: Why the Difference Matters

The Takeaway

Superb resource allocation skills are crucial for success as a project manager. Securing the right people and equipment can ensure a project finishes on time and within budget. And since you won’t have specialized knowledge on every aspect of a project, consult specialists and project stakeholders to get a clearer picture of what you can expect.

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  • What is resource allocation? Learn how ...

What is resource allocation? Learn how to allocate resources

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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.

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Projects as Arenas for Renewal and Learning Processes pp 125–131 Cite as

The Human Resource Allocation Process when Organising by Projects

  • Pernille Eskerod 3  

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This chapter introduces a new way of perceiving the phenomenon “allocation of human resources” in settings organised by projects. An organisational unit organised by projects is usually characterised by a flat organisational hierarchy and a common resource pool from which the projects draw their resources. To gain fully from a organising-by-projects strategy it is important to know how the process of allocating human resources takes place and how to influence it (if possible).

Only a small part of the project management literature is concerned with human resource allocation in multi-project environments. This literature represents a planning perspective, and the management task is seen as making the best plan based on calculation of different alternatives. The author of this chapter has carried out field studies in two Danish companies, Oticon and Bang & Olufsen, both in the field of consumer electronics, and both with the product development function organised by projects. The empirical studies give inspiration to stop regarding the human resource allocation as a classical resource allocation planning problem, but instead perceiving it as a multi-actor negotiation process.

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Eskerod, P. (1998). The Human Resource Allocation Process when Organising by Projects. In: Lundin, R.A., Midler, C. (eds) Projects as Arenas for Renewal and Learning Processes. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5691-6_12

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What is Resource Allocation? The 9-Step Guide for Resource Managers

Are you struggling to manage your resources and make the most out of your billable hours? You’re not alone. As the leading resource-allocation platform, we spend a lot of time researching the best ways you can manage your team’s skills needed to complete the project at hand. That means we can help. Some 83% of […]

Are you struggling to manage your resources and make the most out of your billable hours?

You’re not alone. As the leading resource-allocation platform , we spend a lot of time researching the best ways you can manage your team’s skills needed to complete the project at hand. That means we can help.

Some 83% of the resource managers we questioned agreed that putting the right resources in the right place while keeping the team morale up is a challenge in their organization. If you have that feeling, too- it’s time to revisit your approach to resource allocation in a project.

This resource allocation guide will help you understand what resource allocation is and how you can do it effectively. Ideally, this would help you take all the unnecessary stress out of your projects and help you plan ahead in a strong, clear, and comprehensive fashion.

What is human resource allocation?

We’ll start by saying that employees aren’t the resource type. Budget, technology, equipment, time, and space – are some other examples of resources, nonhuman resources. The resource allocation definition is rather simple, according to Britannica , allocating resources means “apportioning productive assets among different uses.”

In the context of human resource management, allocation refers to a company’s assigning work to its employees. Allocating people can become an issue because people are limited resources, whereas human expectations in project planning are usually unlimited and tend to expand.

The benefits of resource allocation

The optimal resource allocation brings a lot of benefits to the business:

  • Optimizes the workload of team members. A bold team setup gives an overview of the available workforce capacity and shows how much work can be done.
  • Improves time management. Proper resource allocation helps resource managers estimate the actual hours to complete the tasks.
  • Increases employee engagement and satisfaction. A robust resource allocation is done with people, their needs, and their talents in mind. By finding suitable projects for people’s skills, you’ll gather a dream team of passionate professionals who drive the company forward. That’s why, according to TechJury and Smarp , companies with a high level of employee engagement are more profitable by a factor of 21%.
  • Eliminates project risks. Motivated team members meet deadlines more frequently and increase their projects’ success rates. Add up the planned team workload and refined time management system, et voilà! You’re ready to identify risks early on in your project and manage them effectively.
  • Identifies and eliminates the skills gaps . A strategic resource allocation involves skill gap analysis, which gives insights into the company’s entire workforce and enables to target the resources on those skills that require the most attention for the organizational needs.
  • Simplifies planning for upcoming projects. Optimal use of project resources is key to closing the skills gap and avoiding talent shortage. Having this powerful data in their hands, managers can efficiently steer the workforce planning toward the company’s future business needs.
  • Increases ROI. Employee rotation and upskilling are more cost-efficient than hiring new people for every project. Suppose workplace learning and resource management are not done consistently. In that case, resource managers can face talent shortage and fail the project timelines, budget, or even the project delivery altogether.
  • Results in a better brand positioning. Happy team members strengthen the employer brand in the eyes of both the customers and potential recruits.

What are the resource allocation methods?

In project and operations management, effective resource allocation methods are essential for success. Key methods include the Critical Path Method, which prioritizes tasks to optimize timelines; the Critical Chain Method, which accounts for resource limitations and multitasking; Resource Leveling, which adjusts schedules based on resource availability; and Resource Smoothing, which modifies resource allocation while adhering to time constraints. These resource allocation methods can be combined and supported by resource management plans, software, visuals, and careful consideration of potential shortcuts.

Common resource allocation problems and how to fix them

Let’s look at typical pitfalls in resource allocation and discuss their solutions.

Pitfall 1: Incorrectly assigning the project tasks

Don’t fall into the trap of assigning tasks based only on resource availability. This data is not enough to ensure the team will do the job well and timely.

Know your resource pool. It’s hard- and soft skills. Most resource managers keep track of people’s most developed skills and assign them tasks on this basis.

It’s critical to get a picture of every person’s skill set to assign and share the same resources among projects effectively. This way, you can see that you’re utilizing the team with their strength in mind.

Make skills assessments more frequently and objectively. Don’t rely solely on self-assessment tests for employees.

Use resource allocation software that automatically tracks and updates every team member’s skills . It will save you time and help improve resource allocation with accurate and consistent data.

Pitfall 2: The project scope creep s

Project scope creep occurs due to poor project planning or sudden changes in the scope of work. For example, the client may ask to add an extra minor feature, and the manager has to ensure that there’s enough flexibility in project schedules to account for these changes. 

When planning the best scenario, create a backup plan and procedures for the project team.

Make sure that people inform you about all the significant changes. Ask them to deliver a document that will outline all these changes so you have it in writing . This would also save time employees spend on reporting.

After receiving such a document, analyze the impact of the change on the project and its outcomes and inform the stakeholders that amendment in resource allocation in the scheme might be necessary, removing some scope to combat scope creep.

Once the decision-makers agree on the project scope, communicate the project tasks, deliverables, and objectives with your team.

Pitfall 3: The project scope changes

The scope change results from decisions from the manager and the client, for example, when new data or information comes to light. When the scope changes, it involves adjusting to the already established budget, timeline, or cost.

Specify what the client expects the project acceptance to look like. Don’t be afraid to manage your client’s expectations and communicate upfront that additional changes require extra costs, approvals, and documentation.

Focus on the basics. Limit the scope of change, even if a minor one, and define a fundamental process for that. Remember, sometimes it’s better to say “no.”

Pitfall 4: Project delays

When leading a big or small project – it’s natural to have unexpected delays, and no matter how well the team is organized, you simply can’t avoid them.

Set the SMART project goals. Putting down realistic and clear goals is key to delivering projects on time.

Revisit your people allocation strategy to ensure the right people are in the right projects. If the delay has already happened, adjust the current resource allocation to the changes.

Prioritize tasks . Try reorganizing the original plan, eliminating minor tasks, and setting new realistic deadlines for each task.

Use dedicated project management software to inform you about potential bottlenecks and track the project progress in real-time.

Pitfall 5: Resources become unavailable

Lack of resource availability can appear suddenly. For example, a person who was supposed to complete five project tasks within one month suddenly gets a better job offer and leaves. The project manager needs to act fast and find the best replacement from the in-house talent pool or come up with an external hire.

Consider using resource allocation software instead of spreadsheets for such occasions to quickly see who among the available resources can replace the missing person.

In the pre-launch stage, create a backup list for at least the most critical jobs on a project.

Talk to the customer and figure out the best strategy together.

Don’t schedule your team to be 100% available. We all know that daily meetings, coffee breaks, and even poor well-being don’t allow people to be 100% productive on their tasks. Go down to 80% availability and, based on that, plan the project workflow. This approach will also help you while calculating the budget.

Pitfall 6: Lack of resource allocation strategy

Ideally, finding the right people for the right projects is a resource management process that goes far beyond a particular task. That’s why a strategic approach to resource allocation can become a critical management lever for successful project delivery.

To eliminate the resource allocation problems, take a look into the company’s skills gap . Continuous workplace learning of employees is much more cost-saving than recruiting additional resources for the projects. This measure requires close cooperation with the educational and HR department, yet this step will significantly improve your resource planning for future projects.

Arrange the skills list of every employee with verified levels of experience.

Monitor the development of the most vital skills in your company. Every company is different and uses a specific employee skillset. The freedom of management should be that you decide what skills you will monitor and develop in people.

Use professional skills trees to identify the upskilling opportunities. Skills trees are maps that define a profession’s abilities which are sorted out in the order of importance. You can find all kinds of IT profession trees on our website and see how to raise a specialist in different areas.

Offer additional online pieces of training or on-site workshops and track the learning progress consistently .

Pitfall 7: Remote team management

It can be challenging to manage the project and team remotely, even despite the fully-equipped online environment. Resource managers often are tempted to know how many hours people actually work from their homes and expect others to keep up with the project schedule perfectly.

Make open and transparent communication your habit. Express your concerns and encourage people to cooperate.

Inspire employees to compare their skills with others and seek professional enhancement. If done in a sort of game, it will motivate people to self-develop and create a healthy professional community.

Trust your people. Business performance amplifies when people feel united with the same goals, mutual trust, and respect.

Give more time flexibility to the people. At the end of the day, what is really important is the delivered job, not fitting into the perfect employee image.

How do you allocate human resources?

1. effective resource allocation starts with the project scope.

Before you consider anybody to do anything on a project, it’s vital to understand the project plan and its tasks. There are various resource allocation methods in project management.

The three constants of every project are cost, scope, and time. Together they make up a Project Management Triangle that directly impacts the human allocation process. For example, without a sufficient budget, you simply can’t engage too many people with the project.

If you want to learn more about dependencies in the project management triangle, we’d recommend reading this article.

In short, successful project management requires answering the following questions:

  • What is the project deadline?
  • What tasks does a project consist of?
  • What are the project dependencies?
  • What there task dependencies?
  • What are the resource dependencies?
  • What are the project uncertainties?
  • What are the deadlines for every task?
  • What skills are required for every task?

2. Check both the resource availability and their competence match

Before you start allocating resources, you need to know where you are standing. Foremost, this means analyzing the available talent pool. Learn about employees’ skills and how people see themselves in your organization.

The goal here is to ensure that the right people, with the right set of skills, are working in the right place. Who among your current colleagues has the skills related to a project?

3. Pick up the right resources

Now that you are fully aware of what your current staff situation is, you’ll need to think ahead and identify potential team members. Basically, you will be answering a few questions:

  • What is the availability of these people? Can they dedicate as much of their working time to the project as it requires?
  • Does any of the team candidates waste the needed skills due to their project role? For example, a team candidate has skills at coding in two languages, but their job scope doesn’t require one of the skills. How could you reallocate resources to avoid the skills waste?
  • Is there any skills gap? Should you recruit new talents for the project or simply reallocate available resources inside of the team or even the projects?

At this stage, it’s time to review the available workforce and select the ones that fit the project demands in time, scope, and cost. It’s good to visualize the given data with a mindmap, summary spreadsheet, or a project team scheme.

4. Allocate resources based on the determined attributes

Managers have to make sure that each of the allocated resources has sufficient attributes to carry out the project work. Consider the resource attributes like grade, skill, quality, and availability. After gathering all the resource attributes, a resource manager gains a sufficient amount of information for moving on in the resource allocation process.

5. Choose a dedicated resource allocation tool

Managers quite often have to acquire the necessary resources before the other competing projects overtake them. Most resource managers prefer using a dedicated resource allocation tool simply because it’s more comfortable and effective than a manual resource allocation.

If you’re in a situation where you need to distribute limited resources among multiple projects or your colleagues from other projects hog resources violently, a resource allocation tool will help you solve the issues fairly.

6. Reallocate and rotate talents among teams

A resource may have performance issues, and you’ll need to find a replacement. A resource with a niche skill may be required in another high-priority project. According to McKinsey , “the fundamental goal of resource reallocation is to embed agility in the organization so it can move as opportunities shift”. Reallocating people among projects will help you see the talent utilization opportunities as well as create a plan B in case of unavailable resources.

7. Double-check the team’s workload

A successful resource allocation is one that doesn’t waste scarce resources. On the other hand, when scheduling teams across multiple projects, there’s always a chance to overload every single team member.

The most critical management lever is to ensure the project’s success and balance out the people’s well-being. In your project management tool, pay attention to the notifications about overload and adjust your resource allocation strategy to it.

8. Control Resource Utilization Rates

Resource utilization rates control one of the main insights for the resource allocation process. Utilization rate = Hours worked ÷ Total available hours * 100.

Looking at employee utilization rates, resource and project managers can notice where demand is the highest. Moreover, a concise overview of utilization rates could help you either identify opportunities to scale the company or find the most appropriate tasks to allocate resources.

The main thing to remember about the utilization rates – they shouldn’t go too high or too low, which would mean underutilization or overutilization of staff accordingly.

9. Run a post-project review

When the project lands in the “completed” folder, host a team meeting to analyze its successes and challenges. From initiation to the closing of the project, acknowledge the successes of the team and identify the techniques and approaches that worked and the ones that didn’t.

  • What were the bottlenecks or delays, if any?
  • Were the resources allocated to the project sufficient enough?
  • Did the team use the right tools at their work?
  • Did the team feel overloaded with work?

Recognize and reward individual and team successes, and use this as an opportunity to reflect on what went well and what could be improved. Use this feedback to inform your future resource management decisions and continuously improve your processes. Additionally, use this time to learn from any mistakes or challenges that may have occurred during the project and develop a plan to prevent them from happening in the future.

Remember, effective resource management is an ongoing process and continuous learning is key to success.

How EmployPlan helps resource managers allocate resources

Allocating resources in project management should be simple, fast, cost-saving, and strategic – and this is the core of the resource allocation system at EmployPlan. With our people recommendations, the project manager gets (with one click) recommendations of people who fit the projects. This allows the company to get a quick idea of what people resources they have and assign specialists to projects much more effectively and fast.

On top of that, we created talent pools for companies to have access to the most talented specialists who are open to finding a new project. Managers can use the project slot at EmployPlant as the job description – and find the most skilled person for that job in a few minutes.

Now that you’ve read how to allocate resources effectively, let’s put this knowledge into practice.

If there would be only one takeaway from this article, we’d advise every project manager to understand and map out the in-house capabilities and track their development consistently. It’s key to robust resource planning, which focuses on the sustainable development of teams and organizations, helping them achieve their goals.

Since you strive for project success, it’s vital to optimize employees’ workload, ensure effective employee rotation, and offer space for continuous workplace learning.

Do you have more ideas on handling resource allocation challenges? Feel free to share some of your tips in the comments!

  • https://guide.quickscrum.com/the-benefits-importance-of-resource-management/
  • https://www.orangescrum.com/blog/top-10-reasons-why-you-need-effective-resource-allocation.html
  • https://intenseminimalism.com/2017/skill-trees-a-flexible-way-for-companies-to-drive-professional-growth/
  • https://www.dummies.com/article/business-careers-money/business/project-management/how-to-prepare-for-the-post-project-evaluation-188521

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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. 

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  4. Infographic: What is Resource Allocation, & Why is it Important?

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  3. Management (2)

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COMMENTS

  1. A stage-based human resource allocation procedure for project

    A stage-based human resource allocation procedure for project management with multiple objectives. Paper presented at PMI® Research Conference: New Directions in Project Management, Montréal, Québec, Canada. Newtown Square, PA: Project Management Institute. Shwu-Min Horng National Chengchi University in Taiwan, Republic of China Introduction

  2. What Is Resource Allocation? How to Allocate Resources for Projects

    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.

  3. Resource Allocation in Project Management: A Guide to Project Managers

    Resource allocation in project management is crucial due to various reasons, including: Time management, Optimal resource utilization, Cost control, Team collaboration, Risk mitigation, Prioritization and decision-making, Performance tracking.

  4. 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.

  5. Resource Allocation in Project Management: an Ultimate Guide

    Resource allocation in project management is the process of assigning and distributing resources to various tasks and activities within a project. The goal of this process is to ensure that the right resources are available at the right time to complete project tasks effectively and manage possible constraints.

  6. What Is Resource Allocation in Project Management?

    Indeed Editorial Team Updated February 3, 2023 Resource allocation is the process of organizing a company's assets for different activities and tasks. By conducting resource allocation, a key step in project management, business leaders can make sure their teams have the necessary support to achieve strategic goals.

  7. Human Resources Allocation in Project Management

    The importance and variety of resource allocation in projects is outlined, leading to the conclusion, that the RCPSP algorithms use a small amount of information to assign the resources,...

  8. Resource Allocation

    The functions of resource allocation in project management processes Resource allocation in the context of project management and its process. Many project managers who want to introduce what project management is, use the Project Management Institute (PMI) definition. According to the last one, project management is about using whatever it ...

  9. Resource Allocation: Improve Project Efficiency in 2024

    Resource allocation is the process of identifying and assigning resources—including people, time, money, and equipment‚to projects while considering a team's availability, skills, and interest. Usually, a resource manager, project manager, or team lead is in charge of allocating resources. What do we mean by resources?

  10. Resource Allocation Guide 2023

    Resource allocation for project management is the process of committing labor, equipment, and money to each step of a project. This task also involves actively analyzing data to ensure resources are effectively utilized. Indeed, proper allocation is crucial to completing work. Without sufficient laborers, for example, your team may be too ...

  11. 4 Best Resource Allocation Methods In Project Management

    Here are four methods to allocate your resources effectively. TABLE OF CONTENTS 4 Key Resource Allocation Methods Steps For Effective Resource Allocation In theory, resource management sounds straightforward: break down a project into tasks, apply the necessary resources to execute each task, and voilà—you've finished the project!

  12. Managing human resources in project management

    Managing human resources in project management. Project Management Quarterly, 7 (2), 21-25. Reprints and Permissions  Florida Atlantic University Fred E. Schuster Florida Atlantic University Project management has been based on a wide range of authority for the project manager.

  13. What is resource allocation? Learn how to allocate resources

    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.

  14. The Human Resource Allocation Process when Organising by Projects

    Only a small part of the project management literature is concerned with human resource allocation in multi-project environments. This literature represents a planning perspective, and the management task is seen as making the best plan based on calculation of different alternatives.

  15. What is Resource Allocation? The 9-Step Guide for Resource Managers

    In the context of human resource management, allocation refers to a company's assigning work to its employees. Allocating people can become an issue because people are limited resources, whereas human expectations in project planning are usually unlimited and tend to expand. The benefits of resource allocation

  16. What is Resource Allocation? Importance & Challenges

    Resource allocation is all about identifying and scheduling resources on various activities across your project (s) to achieve your project goals. Resources in project management refer to anything you require to complete the project, including tools, equipment, facilities, or funding.

  17. PDF Human Resources Allocation in Project Management

    Human Resources Allocation in Project Management Roman Nedzelsky, , University of Economics, Prague, Czech Republic, [email protected] Abstract: Resource allocation is an important part...

  18. Human resource allocation in a multi-project R&D environment

    Allocating the right human resources to a project is vital. The more projects that are involved and the more specific knowledge that is needed in every project, the more important, but also the more difficult, is the allocation process. In many R&D organisations the matrix structure is commonly used ( Fig. 1 ).

  19. A Decision Model for Human Resource Allocation in Project Management of

    Abstract: In project management, especially of software development, human resource allocation is critical not only for project success including timely delivery and products quality but also for cost estimation to a software company to decide to contract projects or not.

  20. Classification of Human- and Automated Resource Allocation Approaches

    The main challenge of managing a multi-project environment is the allocation of scarce human resources over the projects in execution. As part of a broader research on this topic, the aim of this paper is to identify different multi-project management approaches in a structured way.

  21. (PDF) Recent Advancement in Human Resource Allocation ...

    Several techniques have been proposed for human resource allocation in consideration of reducing project duration and project cost. In this paper, we have conducted a Systematic...

  22. Human resource allocation management in multiple projects using

    Human resource allocation in a multi-project R&D environment: resource capacity allocation and project portfolio planning in practice ... Human resource management in the project-oriented organization: employee well-being and ethical treatment. International Journal of Project Management, 26 (5) (2008), pp. 577-585. View PDF View article View ...

  23. What Is Resource Allocation?

    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.