What Is Resource Management & Why Is It Important?

Resource management is an integral part of project management, and by managing a project without it, you risk not seeing the full picture. Not to mention costly mistakes and delays. It allows us to meet specific project goals faster, make the project run smoothly, and it helps the project manager be more aware of the resources and skills required for completing a project. But what exactly is resource management, and why is it so important? Let’s find out!

What Is Resource Management?

Simply put, resource management is the process of allocating and planning resources that are needed to achieve the greatest organisational value. Resources are something a company needs to operate, and they can be anything from physical items to skills, time, and even emotions. Resources are managed to ensure they’re being allocated to initiatives that are aligned with the corporate strategy and bring the most value.

Why Is Resource Management Important?

Resource management is important because it ensures that the organisation has what it needs to complete its goals. Now, there are three main reasons why we need resource management.

1. Saves Time & Money

It is crucial for any company to have a good resource management system in place because it can save a considerable amount of time and money, which are the most common resources. These two are needed for an organisation to operate smoothly. Managing them helps us avoid wasting time on tasks that don’t need our attention and spend our time on relevant tasks as well as plan our finances.

2. Increases Productivity & Efficiency

Another reason why resource management is so important is that it allows for better allocation of resources, which then leads to better productivity and maximised efficiency. It’s critical to keep track of your resource usage in order to get the most out of the resources at your disposal. For example, if you know that your business will be using a specific machine extensively, you can arrange replacements, repairs or maintenance checks ahead of time.

3. Waste Minimisation

Resource management helps with the minimisation of waste, which, in turn, supports sustainability efforts. For example, if an organisation has limited funds but wants to grow its business, the financial resources need to be managed efficiently by making sure they only spend money on things that will have a big impact and minimise waste.

The Bottom Line

As we can see, resource management is a vital part of project management. Managing resources allows us to save valuable time and money, forecast resource availability for future projects, and identify which projects are the most feasible to take on. Track your resources and resolve problems ahead of time!