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

Resource management is the process of enhancing efficiency and guiding when and how resources, like employees, equipment, and tools, are used. Resources include everything needed to achieve goals. They may also involve 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 prioritise and effectively use resources like promotional materials, hired staff, and a location to ensure you schedule everything appropriately and within the budget. 

Learn more 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 is resource management?

Resource management is a series of processes and techniques used to ensure you have all the necessary resources to complete a project or meet business objectives. It also focuses on efficiently using 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.

Example of resource management

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 what ingredients you already have, the ingredients you need to buy, and the equipment you need for preparation and baking. Not to mention, you need to know the recipe’s steps and the time required.

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

Types of resource management 

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

• Allocation: Allocation lets you efficiently use resources to maximise their use. 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 organisation'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 businesses, and organisations get the most out of their resources. To maximise efficiency and keep things running smoothly, you'll have to track how resources get used to help 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 altogether

• 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

On the contrary, not having good resource management can be costly, which underscores why it’s such an essential element. Data from a Project Management Institute survey suggests that around 21 percent of projects fail because of limited or overtaxed resources [1]. 

The fallout isn’t limited only to individual projects. Without resource management, the stability of the organisation 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 be required to work longer than normal hours to meet goals and objectives.

• Teams, individuals, and organisations may experience complications and setbacks.

• Interrupted workflow and financial strain may grow into major economic 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

Many employers look for professionals with at least a bachelor’s degree to become resource managers. You can choose from various subjects when pursuing your qualifications, including business, communications, computer science, or finance degrees. Helpful courses include macroeconomics, business analytics, operations management, and project management.

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

Required skills

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

Workplace

• Customer service

• Ability to prioritise

• Interpersonal skills

• Ability to work as part of a team

• Leadership capabilities

• Strategic thinking

Technical

• Project management

• Resource management

• Analysing data and reading reports

• Ability to consider multiple potential outcomes

• Familiarity with resource management software and tools

• Knowledge of labour and business laws and ethics

• Ability to use technology, including analytics and customer relationship management software (CRM)

Recommended certifications

Certifications aren’t strictly required. Earning a credential can demonstrate your expertise to potential employers to help you gain a competitive edge. It’s also an opportunity to develop advanced skills to help make you a more effective resource manager. A few to consider include the Resource Management Institute's and the Project Management Institute's (PMP).

Job titles and related jobs 

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

Although you may find jobs specifically for resource managers, the role often has other job titles. 

Some common positions in resource management include:

*All salary data is sourced from Glassdoor as of August 2024

• Office administrator: You’ll manage office supply resources and allocate them accordingly. The average annual salary in the UK is £22,155 [2].

• Resource manager: You'll manage and allocate resources across the company in this role. The average annual salary in the UK is £43,437 [3].

• Human resource manager: You'll manage human talent by allocating staff to appropriate teams and departments and hiring, training, and supporting employees. The average annual salary in the UK is £46,050 [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 the UK is £45,395 [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, you'll work as a chief finance officer with capital and other financial assets. However, as chief executive officer, you would take a high-level approach across the company. 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. The average annual salary in the UK is £90,895 [6].

• Chief finance officer: In this role, you will allocate and manage the organisation's financial resources. The average annual salary in the UK is £83,624 [7].

• Chief technology officer: Among other tasks, allocating technological assets and resources to the appropriate people, teams, and departments will be an essential component of your work. The average annual salary in the UK is £87,221 [8].

• Chief human resources officer: In this role, you'll oversee HR managers and ensure that HR strategies and procedures allocate talent throughout the organisation to best meet its goals. The average annual salary in the UK is £110,878 [9].

Start a career in resource management

Resource management is essential in projects and business in the UK and worldwide. 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.