What Is Resource Management? Types, Importance, Stages, Careers

Resource management is the process of enhancing efficiency and guiding when and how resources, such as employees, equipment, and tools, are used. Resources include everything needed to achieve goals, including technology, square footage, and finances.

As a resource manager, you'll consider all the elements needed to create a successful event, such as a fundraiser. You'll have to prioritize and effectively use resources like promotional materials, hired staff, and a location to ensure you schedule everything appropriately and within the budget.

In this article, learn about resource management, the different types, and what potential employers look for in a resource manager, including education, experience, and relevant resource management skills.

What exactly is resource management?

Resource management is a series of processes and techniques to ensure you have all the necessary resources to complete a project or meet business objectives. It also focuses on making the most efficient use of those resources by eliminating waste for more profits and a high return on investment (ROI). Resource management puts you in control to avoid conflicts as much as possible.

Resource management example

Think of it like this: Imagine you were going to bake cookies. To get it done quickly and on a budget, you also need to determine the ingredients you already have, the ingredients you need to buy, and the equipment you need to use for preparation and baking. Not to mention, you need to know the steps for making the recipe and the time required.

If you prepare well, you can bake a beautiful batch of cookies in the time you allot for the project. Suppose you decide to skip reading the recipe ahead of time. You might be in the middle of making the dough when you realize you need to go to the grocery store to buy something. The cookie-making process could take significantly longer because you didn’t consider all the required resources ahead of time. 

Types of resource management 

Several techniques are available for resource management in projects, departments, and entire companies. Resource management methods include:

• Allocation: Allocation lets you efficiently use resources you already have to get the most out of them. It effectively helps keep you on time and within budget.

• Levelling: With this type of resource management, you'll take resources that aren't being used effectively and find ways to use them more efficiently. You may also use levelling if you have a project that demands more resources than you have and requires adjusting deadlines. 

• Forecasting: Before you can forecast, you'll need to fully understand the project’s scope and the organization's goals. Then, you'll identify the resources available to use now and those required in the future and predict potential problems.

Why is resource management important?

Resource management provides business stability by helping you get the most out of your resources. To maximize efficiency and keep things running smoothly, you'll have to track how resources are used to avoid overuse and underuse. As a result, you’ll gain control, profitability, and efficiency, among the main benefits of effective resource management.

Benefits of resource management

Resource management is helpful for businesses of all types, including startups, small businesses, and large enterprises. It offers a variety of benefits to support business success, including:

• Efficient use of staff, finances, technology, and physical space

• Increased ability to spot problems before they occur or avoid them completely

• Smoother relationships between teams and departments

• Increased agility and a greater ability to pivot faster in case of unexpected changes

Costs of ineffective resource management

A lack of sound resource management can be costly, underscoring why it’s essential. Data from a survey conducted by the Project Management Institute suggests that around 21 percent of projects fail because of limited or overtaxed resources [1].

The fallout isn’t limited to individual projects. Without resource management, the stability of the organization suffers. Poor resource management can be costly in a variety of ways:

• Performance may suffer on a team-, department-, or company-wide level.

• Teams may have heavier workloads and have to work longer-than-normal hours to meet goals and objectives.

• Teams, individuals, and the organization may experience complications and setbacks.

• Interrupted workflow and financial strain may grow into major financial issues.

How to become a resource manager

Your career path may vary slightly depending on the role you want to pursue. It should determine the degree you choose, the experience you gain, and the skills you need to become a good resource manager. 

Education and experience

Most employers seek professionals with at least a post-secondary degree or diploma to become resource managers. You may choose to earn a business degree or diploma or a degree in communications, computer science, or commerce. Helpful courses include macroeconomics, business analytics, operations management, and project management.

Additionally, you’ll likely need some experience in project management for the industry in which you want to work. For example, employers may look for a few years of experience as a staff nurse or administrator if you're going to work as a health care resource manager. 

Required skills

To be effective, you'll need to cultivate many different skills. Some essential skills include adaptability and communication because you'll work with many different people, teams, and departments. During your education and professional experience, work on gaining workplace and technical skills to enhance your resume.

Job titles and related jobs 

Resource managers typically manage and allocate non-human resources throughout an organization. However, if you choose to pursue human resources management, you would recruit, hire, train, and manage employees and staff, which is a variation of resource management.

Although you may find jobs specifically for resource managers, the role often has other job titles. Some common positions in resource management include:

• Office administrator: You’ll manage office supply resources and allocate them accordingly. The average annual salary in Canada is $47,653 [2].

• Resource manager: In this role, you'll manage and allocate resources across the company. The average annual salary in Canada is $74,377 [3].

• Human resource manager: You'll manage human talent by allocating staff to appropriate teams and departments, as well as hiring, training, and supporting employees. The average annual salary in Canada is $88,751 [4].

• Project manager: This role often overlaps with resource managers. You'll manage resources specific to individual projects and allocate them accordingly. The average annual salary in Canada is $85,996 [5].

Senior-level careers in resource management

Many C-suite roles require resource management, among other responsibilities. For some jobs, that will mean working with specific resources. For example, as a chief financial officer, you will work with capital and other financial assets. However, you would take a high-level approach across the entire company as a chief executive officer. Some senior-level resource management roles include:

• Chief executive officer: In this role, you’ll be responsible for everything, including allocating capital and talent to each team and department in the company. The average annual salary is $183,139 [6].

• Chief financial officer: You will allocate and manage the organization's financial resources in this role. The average annual salary is $225,037 [7].

• Chief technology officer: Among other tasks, allocating technological assets and resources to the appropriate people, teams, and departments will be an important part of your work. The average annual salary is $144,385 [8].

• Chief human resources officer: In this role, you'll oversee HR managers and ensure that HR strategies and procedures allocate talent throughout the organization to meet its goals best. The average annual salary is $160,036 [9].

Start a career in resource management.

Resource management plays an essential role in projects and business. Pursuing a Professional Certificate on Coursera can help you build the necessary skills to become an effective resource manager. With the Google Project Management Professional Certificate, gain hands-on experience with industry tools to help develop your skill set as a resource manager.