Resource management involves procedures and standards that use the resources a company currently has. This lowers the chance of companies having to purchase additional resources, which can save money and lead to more efficient business operations. If your workplace wants to optimize its existing resources, learning about the best practices in resource management may be beneficial for you. In this article, we discuss what resource management is, explain what its benefits include and provide a list of best practices to consider.
What is resource management?
Resource management is the practice of coordinating and allocating resources so that a company can gain the most materials and support possible from its current resources. Companies can optimize their efficiency by using resource management, since they may earn more benefits and a higher amount of material from their existing resources without having to purchase additional resources.
Benefits of resource management
Here are some benefits that companies may encounter when practicing resource management:
Encourages collaboration: Many practices in resource management encourage collaboration among staff, since it allows staff to work together to expand resources and perform operations effectively.
Allows for financial security: When companies use resource management, they may have better financial security, since they can understand their finances and identify methods to help them use their resources fully and effectively, instead of spending money to purchase more resources.
Increases transparency: Resource management increases the transparency between management and employees by providing staff with information about resource allocation.
Resource management best practices
Here are eight best practices that companies use when managing their resources to keep their operations running efficiently:
1. Focus on resources your workplace needs
It’s important to identify the resources that your workplace is short on and determine the best ways to increase them. Plan the company’s business operations around the resource’s availability, so that you can get the most use from the resources when they’re available. For example, if your workplace has low staffing, work around the existing staff’s schedule and complete the most important projects while most of the staff are available to work. By doing this, you can keep a steady workflow and ensure that operations maintain a proper pace, rather than slowing down due to resource restraints.
2. Communicate with staff
Communication is an important part of resource management so that all employees of a company understand resource allocation. When resources are low, be sure to communicate company expectations to staff and provide information about resource management plans. Management may conduct meetings that encourage staff to engage in, where they can discuss resource management needs or ideas.
3. Perform resource estimations
To allocate materials effectively, it’s important to have an accurate estimation of a company’s resources. Speak to professionals in each department to better understand their resources, then review your workplace’s inventory, staffing and budget to get an accurate forecast. Once you have a better idea of your workplace’s assets and materials, you can begin creating a distribution plan. Consider having a financial professional or resource manager look over the resource estimations to check for accuracy.
4. Move staff to various departments
It may be useful to move employees to different departments, depending on a department’s staffing needs and staff availability. First, be sure to provide employees with proper training before switching departments. By doing this, you can eliminate the need to hire more employees to fill a department and instead use the resources that your company already has. This method may also encourage collaboration among employees and expand the staff’s experience and skills.
5. Collaborate to solve issues
It’s common for challenges to take place when a workplace is low on resources. When problems arise, collaborate with your team to find solutions. By collaborating with staff, you can allow for a wide variety of ideas and engage employees of all levels. Prioritize problems according to their severity. For example, if a company has lost all financial resources, it may prioritize that issue above any other smaller issues.
6. Provide staff with allocation documents
Consider providing weekly updates to staff containing details about the company’s resources to increase transparency and communication. Provide staff with a document that contains thorough details about resource allocation. Provide the names of the resources and give details about the plan to save and allocate each resource. You may also include information about how the resource allocation may affect departments.
7. Avoid multitasking
When multitasking, you may use resources more resources than a project needs. It’s important that you only use essential resources and try to limit wasted resources. Multitasking can also lower productivity, since it may take you longer to complete a project. For example, if working on two projects at the same time, it may take you longer to finish each project, so you may use more resources. Instead, try boosting productivity and saving resources by focusing on one task or project at a time.
8. Consider hiring a resource manager
It may be useful for your workplace to hire a resource manager whose goal is to create a plan for each department to use its resources effectively. Resource managers may devote their time to researching resource allocation and making decisions to optimize company materials and support. Companies may promote an employee within their company to become a resource manager since that employee likely has firsthand knowledge of a company’s materials and resources. They may also hire a resource manager from outside of the company who has extensive experience in resource allocation and management.
Resource management FAQs
Here are some frequently asked questions about resource management:
What are some examples of resources that companies manage?
The specific resources that companies manage vary depending on the industry that the company is in. For example, construction companies may manage the amount of construction material they have, like lumber and steel. Here are some common resources that organizations often manage in many industries:
What companies use resource management?
While any company can use resource management to help them have a better understanding of their resource allocation and finances, it’s most common for businesses that have a lower profit margin to use it. This is because resource management allows businesses to sustain themselves and save money by only using the resources they currently have. Businesses that have a higher profit may not use resource management, since they can afford to buy more resources and grow their business. For example, a startup business that doesn’t have high profits may use resource management if they are unable to purchase more resources.
What is resource planning software?
Resource planning software allocates a company’s resources based on the information they input into a system. You can input your workplace’s resource information, like the amount of staff that you have and the amount of capital that your workplace generates. There are several different types of resource planning software. You can decide which software to use depending on your company’s resource needs. Here are the different types of resource management software:
Project scheduling software: This creates a schedule for specific projects according to your workplace’s staffing needs. Businesses may use this software when low on staff or project resources.
Resource scheduling software: This software allows you to plan the use of your workplace’s resources according to a strict schedule. For example, you may plan to use specific equipment on certain days of the week, which may save you money and keep the equipment in good condition.
Marketing resource management software: This software allows you to track your workplace’s marketing resources, like a marketing budget and client engagement materials.
Open source resource management software: This is software that allows for increased flexibility within your resources, which is best for a company that has more options for allocating resources within its company.
Project management software: This software may help you better estimate a project’s expenses and materials, which can allow you to make adjustments to better fit with your workplace’s available resources.