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 include technology, square footage, and finances.

As a resource manager, you'll look at all the elements needed to create a successful event, like 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. 

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.

Example of resource management

Imagine you were going to bake cookies. To get it done quickly and on a budget, you also must determine what ingredients you already have, the elements you need to buy, and the equipment you need to use 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. If you skip the recipe, you might have to stop in the middle when you realise you need to go to the grocery store to buy something. Not reading the recipe ahead of time saved you time upfront. Still, the overall cookie-making process could take significantly longer because you didn’t consider all the 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 the following:

• Allocation: Allocation lets you efficiently use resources you already have to get the most out of them. It 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 you get the most out of your resources. To maximise efficiency and keep things running smoothly, you'll have to track how resources are 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 various 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 (PMI) survey suggests that around 21 per cent 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 various ways:

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

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

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

• Interrupted workflow and financial strain may become 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 typically look for at least a bachelor’s degree when employing people in project management, resources or process improvement-type roles. You’ll likely need some experience in project management or the industry you want to work in. For example, suppose you want to work as a healthcare 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 many different 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 required, but earning one demonstrates 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 Resource Management Certified Professional (RMCP) and Project Management Institute's Project Management Professional (PMP).

Job titles and related jobs 

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

You may find jobs specifically for resource managers, but there are often other job titles you can choose. Some common positions in resource management include:

*All salary data sourced from Glassdoor as of October 2023

• Office administrator: You’ll manage office supply resources and allocate them accordingly. The average annual base salary is ₹13,47,528.

• Resource manager: In this role, you'll manage and allocate resources across the company. The average annual base salary is ₹10,01,849.

• 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 base salary is ₹9,00,000.

• Project manager: This role often overlaps with resource managers. You'll manage resources specific to individual projects and allocate them accordingly. The average annual base salary is ₹20,00,000.

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, a chief finance officer (CFO) works with capital and other financial assets. However, as CFO, you would take a high-level approach across the company. Some senior-level roles that involve resource management include:

• Chief executive officer (CEO): A CEO is responsible for everything, including allocating capital and talent to each team and department. The average annual base salary is ₹31,50,000.

• Chief finance officer (CFO): A CFO allocates and manages the organisation's financial resources in this role. The average annual base salary is ₹23,70,428.

• Chief technology officer (CTO): Among other tasks, CTOs allocate technological assets and resources to the appropriate people, teams, and departments. The average annual base salary is ₹31,84,072. 

• Chief human resources officer: This position oversees HR managers and ensures HR strategies and procedures efficiently allocate talent throughout the organisation to meet its goals. The average annual base salary is ₹66,98,034.

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.