Definition

resource allocation

Contributor(s): Rachel Lebeaux

Resource allocation is the process of assigning and managing assets in a manner that supports an organization's strategic goals.

Resource allocation includes managing tangible assets such as hardware to make the best use of softer assets such as human capital. Resource allocation involves balancing competing needs and priorities and determining the most effective course of action in order to maximize the effective use of limited resources and gain the best return on investment

In practicing resource allocation, organizations must first establish their desired end goal, such as increased revenue, improved productivity or better brand recognition.

This was last updated in May 2014

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