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Resource Planning Basics for Small Business

Published on 16 May 13
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Management of resources is a vital part of every manager's job and a good manager should know how to effectively plan and allocate project resources to ensure the smooth running of an organization or project. When it comes to planning and managing of organizational resources, there are basically three areas which fall under resource planning namely people, equipment and materials. Planning for people involves planning for the human resources, the people to be employed by the company, the needed skills and expertise among others. Equipment and materials describe the other components of resource management and deals more with the production equipment used.
Managing Human Resources

In order to manage people effectively, there are various things a manager ought to do. The first thing to do as a manager is to ensure that you have the right people with the right skills sets required to complete the task beforehand. The right people also need to be in the right place at the right time and must be equipped with the right tools and knowledge that they require to succeed at their place of work. As a manager, you do not have to manage all the employees directly, you simply manage the group leaders or senior members and then delegate the other tasks to these people.


Employees are not the only human resources that require planning for and management. Vendor staffs as well as sub-contractors also fall in to this category. When planning for such resources, it is vital to know beforehand what you as the manager needs from them and when, how, why among others.
Planning for equipment
To complete tasks, employees will normally require a lot of equipment. As a manager in charge of planning for resources, you should be in position to access all these needs and plan effectively how to allocate the resources for purchasing the equipment. The manager should plan and ensure that resources are allocated to sectors according to the needs of the employees. You need to ensure that the equipment is readily available and in a good working condition.
Planning for materials
Regardless of the industry you are in, you will need some materials. For every project to be finished, you will require a given set or amount of materials. As a manager, you will need to plan right at the start what materials will be required to complete the task. In what quantities and where they can be cheaply purchased from. It is also the manager's duty to ensure that the materials arrive on time and are at the right place at the right time.

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Resource Contingency Planning
In most cases, managers forget to make contingency plans for resources yet this is very important for an organization. When doing resource planning for an organization or a project, it is very important to have a backup plan in place just in case the original plan is not feasible enough. Most Project Managers will make contingencies for money and time but will forget to make contingency plans for other resources like people and equipment. It is essential to have a second plan in plan in case of abnormalities in the original plan.
Allocation and distribution of resources

It is also very important for managers to plan how they will allocate their resources. There should be a plan on how to allocate financial resources and this is where budgets come in. Resource planning is extensive and managers should engage the various stakeholders or department heads to ensure that financial resources are effectively allocated to all the different departments and in an organized way or according to the needs of each department.


There is also need for managers to know how to allocate human resources by accessing the needs of the project or of the organization. Human resources should be allocated according to the needs of the project or the organization. Resources should also be distributed where the need for them is more important or urgent for example it would be unwise to allocate so many resources to a project that is on the verge of completion when another project is being under resourced or planned for. If there are many projects running concurrently, then resources should be allocated basing on the requirements of each.
Resource planning is a very important aspect for the success of any type of organization but for successful planning, managers must ensure that all the above aspects are properly put into consideration.
This blog is listed under Enterprise Applications Community

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