Resource allocation

Maximum profit of an organization depends upon the resource allocation. Hence, economically speaking effective resource allocation is needed for an organization that is resource must be allocated in such a way that resource must be fully utilized. Top level organization must take care of all the activities regarding the resource management. Resources of an organization are categorized as follows:

• Human resources

• Land resource

• Investment resource

The combination of these resources is put in such a way that organization reaches the maximum profit. Decision making also plays an important role while dividing the available resources. For instance, a manager must compare the costs of the factors that would be cheaper and provides more profit. So decision making is necessary for a manager to run the business profitably. At the same time resources must be allocated at correct time. Hence time management also plays key role in business. Therefore resource allocation is needed for every organization.