what is resource allocation

Resource allocation is the process of assigning and managing available resources to various uses in a manner that supports an organizations strategic planning goals. This can include tangible assets such as hardware, as well as softer assets such as human capital. In economics, resource allocation involves the assignment of available resources to various uses, and can be achieved through means such as markets or planning. In project management, resource allocation refers to the scheduling of activities and the resources required by those activities, taking into consideration both resource availability and project time. It is a critical resource planning activity that aims to make the most of the available resources at the organizations disposal in a project, typically as a short-term plan to achieve future goals. Resource allocation is also important in strategic planning, where it involves a plan for using available resources, such as human resources, to achieve future goals. The process of resource allocation may involve various approaches, such as manual allocation, algorithmic allocation, or a combination of both. Effective resource allocation can result in benefits such as staff retention, better resource utilization, employee satisfaction, and cost reduction.