What is Resource Management: Types, Process and Techniques

Do you think your resources aren’t fully utilized for critical projects? Or do you lack the demand-supply chain of the resource, causing operational hindrances?  Knowing about What Is Resource Management steps in as a game-changer! Resource Management is critical for any project because it largely affects the success rate of numerous projects worldwide. This blog will explore more on Resource Management, so let’s jump right in. 

Table of Contents

1) Understanding What is Resource Management

2) The Importance of Resource Management

3) Types of Resources Management

4) The Resource Management Process

5) How to Become a Resource Manager?

6) Resource Management Techniques

7) Resource Management Tools

8) Resource Management Best Practices

9) Conclusion

Understanding What is Resource Management

Resource Management is defined as allocating manpower, capital, and funds for the team to perform a specific task. The aim of this Management type is to ensure the availability of the right work at the right time.

For instance, in building a soccer ground, a sufficient workforce is allotted for task completion quickly, and enough funds are provided to serve as a backup (in case of any incident) alongside the land where that soccer ground will be manufactured. 

The Importance of Resource Management

Resource Management is important for the business to survive and thrive in the long run. Here is the importance of Resource Management listed below: 

1) Project Resource Management: Resource Management is useful in managing projects. It helps streamline the key stakeholders’ work by minimizing repetitive tasks and reducing project budget. 

2) Enterprise Resource Management: The way you manage business resources greatly affects how they will function on a long scale. This goes true when you are in resource-intensive industries, from manufacturing to professional services.  

3) Project Portfolio Resource Management: The importance of Resource Management increases for Project Portfolio Management. The main reason behind this is that Portfolio Managers, Program Managers, and Project Management Offices (PMOs) must ensure they allocate resources effectively for multiple Project Management.

Types of Resources Management 

Resource Management comes in various types depending on the projects, departments, and companies' requirements. Here are some of the key types of Resource Management:

1) Leveling

Leveling Resource Management involves utilizing the resources that aren’t used effectively. These resources are then leveraged efficiently through various means. This is true when you have fewer resources than required and strict tasks deadlines.

2) Forecasting

Forecasting (as per the name) predicts the required resources and the potential problems that might occur for a certain task. This can be achieved by understanding the project’s scope and goals. Following that, you will need to identify resources to be used for efficient work progress.

3) Allocation

Allocation is defined as maximizing the specific resource usage. This helps you leverage these resources completely, further keeping you on time and within budget. 

The Resource Management Process

The Resource Management process begins from the Project Planning stage and goes until its closure. The whole process is called the Resource Management Life Cycle. Here are the key processes involved in the Resource Management Life Cycle:

1) Resource Analysis 

The Resource Management Life Cycle begins with a Resource Analysis, where the availability of the required resources is measured and whether they’re sufficient to fulfil the demand of the entire project. This stage is critical and forms the foundational stage for the succeeding processes. 

2) Resource Planning

Next, the resource requirements and how they will be met for the project are measured. It helps the team to possess vital information, such as project resource descriptions, general guidelines, and quantities needed. 

3) Resource Scheduling 

This stage involves the availability of the resources at the right time. When these resources are constantly utilized, they become depleted. Thus, to counter this issue, the resource schedule must be accurate to further minimize the lead time.

4) Resource Allocation

In Resource Allocation, the right resource is picked for the particular task. In the previous stage, the supply chain should be maintained. This stage involves choosing the right resources to complete a specific project task at the right time. 

5) Resource Tracking

After all the resources are allocated and well on time, the project's performance is gauged. This can be achieved using Workload Charts, Timesheets, and other Resource Management tools. By utilizing this stage, the company can boost their efficiency and large-scale productivity. 

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How to Become a Resource Manager?

Becoming a Resource Manager comprises certain steps every candidate needs to follow. Here are the steps involved: 

1) Necessary Education and Experience

Generally, a bachelor's degree is needed to become a Resource Manager. The specializations include Business, Computer Science (CS), Communications, or Finance degrees, depending on the niche you are interested in. 

Moreover, some sort of experience in your preferred niche is a plus. For instance, to become a Resource Manager in the Finance field, the employer might demand experience as a Cashier or Accountant in Finance-based companies. 

2) Essential Skills for Resource Management

You will need a blend of Soft and Hard skills to navigate this resource manager’s landscape. Here are those skills listed:

Soft Skills

a) Interpersonal Skills

b) Leadership Skill

c) Strategic Thinking

d) Prioritizing Skill

e) Customer Service

Hard or Technical Skills

a) Project Management

b) Data Analysis

c) Knowledge of Resource Management software and tools

d) Resource Management (most important)

Resource Management Techniques

Like any other field, Resource Management also comes with a certain set of techniques and concepts. These techniques help to strategically leverage the usage of ongoing as well as future resources. Those techniques are listed below:

1) Efficient Resource Allocation 

Resource Allocation goes beyond simply allocating resources. It involves identifying every worker’s skill and expertise and accordingly delegating the resources within them. 

This may seem simple, yet highly complex. You require an expert eye to spot those capabilities, and then, using your experience, you can see what resource fits perfectly for the particular worker. 

2) Optimizing Resource Utilization 

Resource utilization is a long-term process where the capability of your team is monitored closely over a period of time. This helps identify if the resources are underutilized or overutilized. By using this technique, the company can find opportunities to improve its productivity, effectiveness, and performance. 

3) Resource Leveling Techniques

Resource Leveling is comprised of making the best use of a particular resource so as to balance demand and supply accurately. This technique aims to gauge the workers’ skill sets to see where the resource can be entirely and efficiently utilized. 

4) Forecasting Resource Needs 

Resource Forecasting (as per the name) is predicting the future of resource optimization by analyzing the current capacity of the business as well as upcoming projects and their requirements. 

Resource Management Tools

Certain tools might help Resource Management perform effectively and efficiently. Those tools and resources are listed below: 

1) Timesheets: Timesheets help track the employees’ working hours. This can be the time they spend on completing a project or their working hours shift. 

2) Gantt Chart: The Gantt Chart helps to create a schedule of the executed projects and how the workforce, capital, funds, and equipment are being allocated to them. 

3) Resource Histogram: Resource Histograms are simple bar graphs that help analyze resource utilization over a period of time. 

4) Resource Calendar: Resource Calendar helps organizations estimate what resources will be utilized to complete the project. 

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Resource Management Best Practices

Apart from the techniques, Resource Management also comprises certain practices that support the ongoing process. Here are those key Resource Management best practices listed: 

1) Resource Constraints

There are times when certain resources are unavailable at that time. For instance, a piece of equipment is undergoing scheduled maintenance, or a particular team member has been allocated different tasks, limiting their availability. It's important to identify those constraints accurately to plan effectively for any related resource unavailability.

2) Identify the Level of Efforts

Level of effort refers to all those supportive or unplanned activities that help complete the project tasks. These may include transportation of resources from a warehouse or using other team members to support the task completion activity (in case of emergency or deadline meetups).

3) Assembling a Cross-functional Team

There might be cases, especially during the Forecasting stage, where the project demands a bigger picture in efficient and effective planning. For this, the entire organization is considered to gain a broader perspective about task completion. 

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Conclusion

Resource Management is a broader term that encapsulates all the processes, techniques, and practices for utilizing the available resources more efficiently. Moreover, it involves predicting the resource requirement for performing certain levels of tasks. With time, Resource Management will produce vast opportunities for aspiring Resource Managers worldwide. 

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