Faculty of Architecture Planning and Design

Values of Resource
UNIT-3

Resource Management
W hat is resource availability?

Resource availability refers to the amount and type of resources that are currently accessible for a
particular task or project. This includes factors such as the number of staff members, the quantity of
equipment, etc.

Resource availability provides you with an overview of the resources’ schedule and a clear picture of
who’s available to take up the tasks. A resource can either be partially or fully available, and they must be
utilized to their full capacity. Based on this information, you can plan and allocate the project tasks in
advance, avoiding last-minute hiccups.

If project managers do not have insights into resources available for the work, they might overload a
resource. In worst-case scenarios, they might even risk booking the staff who lack the skills to
accomplish the tasks.
Moreover, important parameters like resource capacity
and demand, skill gaps, and optimal utilization
scales are all directly impacted by resource availability.
Here is a brief description of each of these parameters:

•Resource demand: Number of resources required to

complete a given project. It can only be fulfilled when you
have the right number of resources available at your
disposal.
•Resource capacity: Available resources with matching
skillsets in your organization to take up the appropriate
project tasks.
•Skill gap: The difference between the project demand
and capacity is the skill gap.
•Optimal utilization scale: The efficient and productive
use of resources and their skills constitutes the optimal
utilization scale.
When these resource indicators are not managed
efficiently, they can put forth certain challenges in project
management processes.
Now, let’s address an important question: why is
resource availability critical?

Resource availability has the following benefits in project

planning:

Accurate resource scheduling

Resource availability allows project managers to plan and

schedule project resources efficiently, reducing delays and
increasing efficiency. During the planning and
scheduling stage, managers analyze the availability of
resources and identify the ones with adequate
capacity and matching skill set. It enables the resource
manager to assign the right person to the right project and
prevents instances of double bookings and scheduling
conflicts. This, in turn, helps the organization with
smoother execution of projects.
Improved decision making
Tracking resource availability plays a pivotal role in informed
decision-making within project management. When managers
foresee workforce availability, they can identify the
shortages or excess well in advance. These insights enable
them to take proactive measures like training, hiring
permanent or contingent employees, outsourcing excess
resources, etc., to mitigate the gaps. This ensures the timely
completion and delivery of the project.

Enhanced productivity
Tracking resource availability directly contributes to enhanced
productivity by enabling efficient allocation of resources based
on skills, experience, and workload capacity. This process
ensures that the right personnel are assigned to tasks
aligned with their expertise, optimizing output quality.
Additionally, it prevents overburdening or underutilization
of resources, maintaining a balanced workload that
promotes sustained productivity levels. Moreover, managers
can distribute tasks by having a comprehensive view of
available resources, avoiding bottlenecks, and optimizing
workflow efficiency.
Higher quality of deliverables
With access to essential resources, managers can
maximize utilization, resulting in superior deliverables
within specified timelines and budgets. Moreover,
monitoring resource availability enables competent
allocation of employees, thereby avoiding over/under
allocation of skilled resources. In addition, it prevents
the allocation of under/over skilled resources to
projects, thus, improving the project quality. This
balanced approach prevents burnout and disengagement,
ultimately enhancing project outcomes.

Minimize costs
Adequate resource availability eliminates the need to hire
additional staff during the project initiation stage, saving
resource costs. Moreover, managers can avoid delays
and keep the project on track by having access to
skilled resources at the right time. In addition, clear
visibility into resource availability and other attributes
allows managers to leverage global resources from
low-cost locations across the enterprise. As a result, it
will control the project budget and enhance profitability.
Better risk management
With adequate resources, managers can better manage
the risks associated with the project. For instance, when
the project scope changes or requires additional
resources, managers can adjust workloads and
allocations to mitigate the bottlenecks and maintain
the project performance. Moreover, by tracking resource
availability, managers can develop contingency plans in
case of unplanned attrition or leaves where the projects
may come to a grinding halt. It enables them to create
backup employees or flexible workforce arrangements to
help organizations minimize uncertainties effectively.
F actors that affect resource availability

• Intelligent resource management drives the success

of a given project. Deployment of appropriate, qualified
human resources will help you maintain the quality of
the project.

• Lack of efficiency in resource planning can, therefore,

create project hurdles in the future.

These are some of the factors that can affect resource

availability and, in turn, impact your project’s health.
Lack of centralized visibility Inability to update skills in real-time

Businesses are now adopting a matrix- The ongoing market volatility demands an
based, shared services model. Project updated skills inventory. Simply put,
managers, therefore, need to have a unified employees should be able to upgrade their
view of the enterprise-wide workforce. It will knowledge based on dynamic market trends.
create transparency with respect to resources This will help them keep their expertise
and projects. relevant down the line. At the same time,
When you have a 360-degree view of your managers should be aware of these added
workforce and their allocation, you can track skills to make the most of them.
availability of resources in real-time. This will However, some organizations are still using
reduce the project scheduling conflicts and spreadsheets to maintain their data inventory.
eliminate the risk of over or underutilization of The challenge here is that these
resources. Besides this, it will also add the spreadsheets are not updated for months,
edge of accuracy to your project plans. The and eventually, the database just becomes
lack of visibility, on the other hand, can spiral outdated.
down your project life cycle.
Misalignment in project and resource Impact of increasing resource costs on
calendars profit

Employees prefer to have the flexibility to plan

around their schedules and time off work. Resource costs are a major deciding factor in
However, the deadlines and their leave dates can overall revenue. If the resource costs go
clash for two reasons. When the resource beyond a permissible limit, the profit margin will
calendars are not updated in real-time, be affected and reduce profitability. The onus is
managers do not have a unified view of their on managers to ensure that they do not
leaves. This situation can lead to discrepancies surpass the resource cost limit. This will help
and chaos. them control the project’s financials.
Overall, with a lack of visual stimulus to project What factors can impact resource costs?
and resource calendars, the project’s health and First of all, ad hoc allocations to complete
quality will suffer. Moreover, employees will not highly specialized tasks can cost you more than
feel motivated or productive to work when the your budget. Secondly, improper capacity
goals and deadlines aren’t defined. It is, planning leads to mismatched skill sets as well
therefore, important for project managers to as last-minute hiring of expensive resources.
define the timelines and schedule the tasks on a This will reduce your project’s profits. To
unified Gantt chart. minimize project costs, project managers must
proactively plan their projects well in advance.
Best practices for managing resource availability

It is vital for managers to track resources and their

availability as it significantly contributes to allocating and
optimizing resources, ultimately ensuring the success of a
project.

Listed below are some of the effective methods to

manage resource availability:
Centralize all the resource-related Forecast future resource demand for
information pipeline projects

The first step that organizations must take is to In the next step, managers should predict the
consolidate resource-related information like resource demand for pipeline projects. For this,
their skills, competencies, availability, and other they can use the capacity vs. demand report to
attributes on a single platform. This helps foresee resource shortages/excess.
prevent information silos and provides the Accordingly, they can take remedial measures
managers with clear visibility into the resources to bridge these gaps in advance. This will help
allowing them to make effective decisions. managers to ensure the resources are
available well in advance for the project
Besides, enterprise-wide visibility allows initiation phase.
managers to check which resources are working
on what projects and determine their availability
and capacity accordingly. Based on these
insights, they can allocate the best-fit employees
to tasks, facilitating competent allocation.
Prioritize resource allocation based on business Develop a contingency plan to deal with
value unexpected events

Managers must take a systematic approach to Unexpected events are inevitable in a multi-
prioritize projects and allocate resources effectively. faceted project environment. This can happen
For this, they must clearly define the organizational when employees take long leaves due to
goals and accordingly align the project objectives. personal issues, when a critical resource exits
Next, they must categorize projects based on the organization, or when a resource in a key
criticality and urgency as high, medium, and low. position retires. If the firms are not prepared
Then, they must select high-priority projects that with a contingency plan, the project’s progress
generate more revenue, contribute to the may be affected or come to a grinding halt.
organization’s strategic goals, and allocate resources To mitigate these unplanned absenteeism or
as per their availability. attrition risks, managers must identify potential
This approach minimizes bottlenecks, streamlines talent for critical roles. They can then create a
workflow, and maintains momentum on pivotal succession plan that provides appropriate
assignments, preventing potential delays or training/upskilling measures to prepare the
disruptions. Furthermore, it enables a uniform employees for key positions. It helps reduce
distribution of skilled personnel and necessary tools the over-dependence on limited critical
to tackle time-sensitive tasks. This optimizes resources and boosts the organization’s ability
productivity and demonstrates an organization’s to take up more multifaceted projects,
agility in responding to critical demands, fostering enhancing revenue.
client satisfaction.
Fiscal resources

It represent the tangible and intangible assets available to

an individual, organization, or government to meet
financial needs. These resources encompass cash,
savings, investments, lines of credit, and various other
instruments that can be converted into funds as and when
required.

The concept of such resources is not confined merely to

cash or liquid assets but extends to encompass the
broader spectrum of assets and capabilities that
contribute to financial well-being. For individuals, these
could include savings accounts, stocks, bonds, real
estate, retirement funds, and insurance policies. In
contrast, for businesses, financial resources often include
a combination of working capital, equity, loans, lines of
credit, and other investments. For governments, financial
resources range from tax revenue, grants, and
international aid to bonds and reserves.
Types of Fiscal Resources

1.Cash and Cash Equivalents: These are the most liquid forms of financial
resources, including physical currency, checks, and short-term investments
easily convertible to cash, like money market funds or Treasury bills.
2.Investments: Stocks, bonds, mutual funds, and other investment vehicles
represent long-term financial resources. They offer the potential for growth or
income but may fluctuate in value.
3.Credit Facilities: Lines of credit, loans, and overdraft facilities serve as
important financial resources for individuals and businesses, offering access
to funds beyond immediate cash on hand.
4.Savings: Personal savings accounts, emergency funds, and retirement
accounts serve as vital resources for individuals, providing financial security
for the future.
5.Property and Real Assets: Real estate, land, and other tangible assets
contribute to one’s financial resource base. These assets can appreciate in
value over time.
6.Revenue Streams: For businesses and governments, revenue from sales,
taxes, fees, or services delivered serve as essential ongoing financial
resources.
Fiscal Resources can be classified into six categories:
1. debt;

2. non-debt capital receipts; (those money receipts which are

received by the government from the sale of old assets.
These receipts are not treated as liabilities of the
government. Examples of non-debt creating capital receipts
are recovery of loans, proceeds from sale of public
enterprises, etc.)

3. foreign aid and other unilateral grants (Rewards);

4. non-tax revenue, including resource rents (bond issues and

profits of state-owned companies);

5. seigniorage; and

6. taxes.