UNIVERSITY OF MUMBAI
MASTER OF COMMERCE
(Accountancy)
SEMESTER I
2015-16
SUBMITTED BY
Name: VIRAJ V. BALSARA
Roll No.: 32
PROJECT GUIDE
Subject Teacher name
DR. POONAM KAKKAD
K.P.B HINDUJA COLLEGE OF COMMERCE
315, NEW CHARNI ROAD, MUMBAI-400 004
M.Com (Accountancy)
1st SEMESTER
SUBMITTED BY
VIRAJ BALSARA
Roll No.: 32
008
NAAC Re-Accredited A
THE BEST COLLEGE OF UNIVERSITY OF MUMBAI FOR THE ACADEMIC YEAR 2010-2
Prin. Dr. Minu Madlani (M. Com., Ph. D.)
CERTIFICATE
This is to certify that Ms. VIRAJ V. BALSARA
of
M.Com (Accountancy)
________________
Project Guide
________________
Co-coordinator
________________
________________
Internal Examiner
External Examiner
________________
Principal
________________
College Seal
DECLARATION
I Mr. VIRAJ V. BALSARA student of M.Com-Accountancy, 1st semester
(2015-2016), hereby declare that I have completed the project on A STUDY
ON RESOURCE ALLOCATION.
The information submitted is true and original copy to the best of our
knowledge.
(Signature)
Student
INDEX
SR. No
1
1.1
1.2
1.3
TOPIC
INTRODUCTION
DEFINTION OF RESOURCE ALLOACTION
METHODS OF RESOURCE ALLOATION
PAGES
6-9
10-15
16-17
4
5
STRATEGIES
RESOURCE ALLOCATION PATTERN
FACTORS AFFECTING RESOURCE
18-23
24-26
ALLOCATION
6
7
8
27-30
31
32
means,
management,
such
resource
as
markets or central
allocation
or resource
planning.
In project
management is
the
Financial resources
Physical resources
Human resources &
Technological Resources
Allocating resources to particular divisions and departments does not mean
that strategies will be successfully implemented. A number of factors
commonly prohibit effective resource allocation, including an over
protection of resources, too great an emphasis on short run financial
criteria, organizational politics, vague strategy targets, a reluctance to take
risks, and a lack of sufficient knowledge.
The real value of any resource allocation program lies in the resulting
accomplishment of an organizations objectives. Effective resources
allocation does not guarantee successful strategy implementation because
programs, personnel, controls, and commitment must breathe life in to
resources provided. Strategic management itself sometimes referred to as a
resource allocation process.
1. ALLOCATION BY MERIT:
This can be seen as a rewards system of sorts. This view suggests that
rewards should be distributed according to productivity, effort, or
demonstrated ability.
i.
ii.
should move in directions that ultimately do the greatest good for the
largest number of people. Criteria for social worth can include age,
seniority, rank, and expertise.
i.
ii.
3. ALLOCATION BY NEED:
Allocation by need tends to view resources in terms of basic human
rights. This view suggests that every person has the same right to some
minimal level of a given resource. Obvious examples include food,
shelter, and clothes.
i.
In the work place, this can be seen when a company diverts funds
to a division in that company who's equipment is outdated.
ii.
4. ALLOCATION
BY
EQUAL
OR
RANDOM
ASSIGNMENT:
Allocation by equal or random assignment takes the view that no rational,
unbiased way can be found to distribute resources. This is the default
allocation method when no other allocation method works.
The most obvious example of this is a lottery. When there is no obvious
way to distribute resources, a simple lottery can prove to be the "fairest"
way.
Allocation by random assignment breaks down when each portion of a
resource is simply too small to do any good. For example, dividing
antibiotics into small doses during an epidemic could make each dose so
small that no one benefits.
No simple rules for allocation can guarantee fairness under all
circumstances. The ultimate decision depends heavily on exactly what
needs to be distributed and on the specific details of each situation.
The Candy case study is a perfect example of resource allocation.
vision and goals for the future. The vision and strategic
2. BUDGETING:
Once you have set your objective, you will need to allocate sufficient
resources to accomplish it. In practical terms, this is often a matter of
project budgeting. In our example, the company will allocate money for
market research to determine unmet consumer needs and wants for a
computer tablet, money for product design and development, funds for
production, and money for promotional activities, such as advertising.
Each department may take its budgeted funds and allocate those resources
for more specific purposes, such as hiring employees, commissioning
marketing studies, and buying raw materials and components.
3. LOGISTICAL MANAGEMENT:
Resources have to be moved to where they need to be in order to
accomplish the company's objectives that will bring it closer to its
strategic goal. Logistics is the process by which a company manages the
flow of resources coming into the company, flowing inside the company,
and flowing out of the company.
II.
I.
a. HOTTEST FIRST:
In hottest first resource allocation, the resource last released is allocated
on next resource request. To implement this last in first out, LIFO type
of allocation, the list of free resources is maintained as a stack. An
allocation request is serviced by popping a free resource from the stack.
When a resource is freed, it is pushed on the free resource list.
The disadvantage of this scheme is that there will be uneven utilization
of resources. The resources at the top of the stack will be used all the
time. If the resource allocation leads to wear and tear, the frequently
allocated resources will experience a lot of wear and tear. This scheme
would be primarily used in scenarios where allocating a resource
involves considerable setup before use. With this technique, under light
b. COLDEST FIRST:
In coldest first resource allocation, the resource not allocated for
maximum time is allocated first. To implement this first in first out,
FIFO type of allocation, the resource allocating entity keeps the free
resources in a queue. A resource allocation request is serviced by
removing a resource from the head of the queue. A freed resource is
returned to the free list by adding it to the tail of the queue.
The main advantage of this scheme is that there is even utilization of
resources. Also, freed resource does not get reused for quite a while, so
inconsistencies in resource management can be easily resolved via
audits.
c. LOAD BALANCING:
In situations involving multiple resource groups, load balancing is used.
A resource group is controlled by a local resource controller. In this
II.
ii.
iii.
iv.
Random Access
The main disadvantage of this technique is that the random access channel
works well only when the overall contention for the random access channel
is very small. As contention increases, hardly any resource requests are
serviced.
ii.
The dominant strategists most often the chief executive officer tends to
affect the process of resource allocation. Their preferences are reflected in
the way how resources get allocated. Perceptive strategic business units,
divisional, and departmental heads know that such preferences matter and
try to present their demands in line with them or attempt creating interest
in the dominant strategists for their demands so that resources can be
attracted easily.
iii.
INTERNAL POLITICES:
The ownership of resources is often misconstrued as possession of power.
Those departmental units which are able to attract more resources are
perceived as being more powerful. Executives who are in a position to
affect the process of resource allocation in their favour are received to be
more effective. These perceptions make resource allocation a rational
political process. Internal politics within the organisation, therefore affects
the process of resource allocation.
iv.
EXTERNAL INFLUENCES:
Apart from internal politics external influences also affects resource
allocation. These influences arise due to government policy and
stipulations, the demand of external shareholders, financial institution,
community, and others. For instance, conditions imposed by legal
ii.
iii.
a. SCARCITY OF RESOURCES:
The major difficulty arises due to scarcity of resources. Financial,
physical, and human resources are hard to find. Firms will usually face
difficulties in procuring finance. Even if finance is available, the cost of
capital is a constraint. Those firms that enjoy investor confidence and
departments or the projects that they handle. The results are restriction on
generating resources for allocating to new departments and the projects
that might be in greater and more in urgent need of resources.
c. OVERSTATEMENT OF NEEDS:
Another frequent problem, especially in a bottom up approach to
resource allocation is of overstatement of the needs for resources. The
budgeting and corporate planning departments may have to face their
executives who do not get resources according to their expectation. Such
negative reactions may hamper the process of strategic planning itself.
When strategic budgeting is used for resource allocation, powerful units
may be divested of resources for reallocation to potential units. Budget
battle may ensure if resource allocation affects vested interest.
CHAPTER 7: CONCLUSION:
i.
The chief executive officer has a major role to play in managing the
ii.
CHAPTER 8: BIBLOGRAPHY:
1. http://www.slideshare.net/kbgluciaja/resource-allocation-16175159?
related=1
2. http://www.slideshare.net/bogdangavan/resource-allocation?
related=2
3. http://www.rand.org/pubs/papers/P4161.html
4. http://www.scs.illinois.edu/~eseebauer/ethics/Advanced/Allocation.ht
ml
5. http://www.strategy-implementation.24xls.com/en211
6. https://www.eventhelix.com/RealtimeMantra/Patterns/ResourceAlloc
ationPatterns.htm#.Vg7LuPmqqkp
7. http://www.brighthubpm.com/resource-management/11638-resourceallocation-do-you-overwork-your-resources/
8. http://study.com/academy/lesson/resource-allocation-in-managementmethods-process-strategy.html
9. https://books.google.co.in/books?
id=J8YGhhK5keUC&pg=PA334&lpg=PA334&dq=resource+allocati
on+process+in+strategic+management&source=bl&ots=UoBapdVEF
p&sig=uAC_qP9bnJGcL9pv0sD2p5VrsWI&hl=en&sa=X&ved=0CE
IQ6AEwBTgKahUKEwjstO6_wp_IAhWLTY4KHXsHCFU#v=onep
age&q=resource%20allocation%20process%20in%20strategic
%20management&f=false