Resource Allocation Essay

Resource allocation refers to the general allocation of resources (assets, equipment, personnel and efforts) to a project, or portions of a project for a defined time period. The allocations may be specified by role or skill, or by specific individual. It involves the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time. Since a project is temporarily carried out to create a unique product or service, it must be noted that the organization respond to this opportunity that cannot be addresses within operational limits. Before allocation takes place, the following points must be considered:
 Resource pool – what resources are on board?
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The need to provide customers with total solutions to their needs has created a shift from product-based to project- based organizations (Graham and Englund, 2004). As such cross-functional project teams who cut across traditional functional boundaries of the organization are needed to perform temporary roles, and when the product or solution is achieved they disband and move on to other functions. Addressing demand and capacity issues requires a structured and repeatable approach where both the requestor and provider of resources work together using a common framework. Therefore, resource planning does not start with assigning people to individual task but with the allocation of generic resources to portfolios and projects, i.e. allocation by role and skills (Harvey,

The reason for linking projects to strategy is to help people working on those projects to understand why a project is being done and which goals will be achieved (Graham and Englund, 2004). This will ensure that projects are prioritized effectively and the company’s resources are not wasted on projects that have no clear advantage for the company (Haupt, 2007). Human resources lie at the heart of resource allocation problem. Engwall and Jerbrant (2003) notes that for project-based organizations the crucial issues are the interfaces between projects as managers compete with each other to juggle human resources between projects. This leads to project overload as human resources are stretched between projects. Conversely, People work better in teams and therefore the allocation process should support the building of effective teams for continuity and