What is Resource Management in an Organization?


By: Site Engineer, Staff

full bio

Resource management is a way by which businesses manage all their resources effectively well.

The aim of every industrial activity is the development and manufacture of products that can be sold profitably. To be able to achieve this, some resources are required.

These resources are:

  1. The money with which to procure all the other resources.
  2. The raw materials which must be transformed into finished products before the products can be sold.
  3. The machinery which is used to transform the raw materials into finished products.
  4. The personnel that must purchase and handle the raw materials and also operates the machinery.

This means that the aim and objectives of any industrial activity cannot be fulfilled without the appropriate blending of materials, machinery, men, and money (the 4Ms).

All the 4M’s must be acquired at the right place, at the right quantity, and of the right quality.

Failure of the entrepreneur to manage any of these resources effectively will affect, to a great extent, the success of the business.

This part will try to expatiate on each of the 4M’s and how the entrepreneur can acquire and manage them effectively.

Another resource to which little attention has been paid is time. Time is one of the most precious of the resources that an entrepreneur has to manage to achieve the aims of his organization.

Manage of Personnel

Personnel is the most important resource with which the entrepreneur needs to function. They are the most important asset of any organization.

This is because it is the personnel that manages all the other resources for the organization to achieve its objectives.

For an organization to be able to achieve its organizational objectives, therefore, the entrepreneur must be able to procure, utilize and maintain its personnel effectively. Employing and keeping good employees is therefore essential to the success of a business venture. This is the essence of personnel management.

Generally speaking, the entrepreneur must be able to procure, develop, compensate, integrate, and maintain the right caliber of personnel to achieve success.


One of the responsibilities of the entrepreneur is to recruit and select the right personnel to fit into the various positions of the organization. It is not only to recruit any type of person but the right person that meet-up all the requirements would fit into the available positions in the company.

To recruit the right caliber of people into the organization the following steps must be followed:

  • Manpower placement follows manpower selection. This involves the induction and orientation of the personnel selected.
  • Job analysis must be carried out. This involves the formulation of the recruitment policy and determination of the member and the types of manpower required.
  • After the job has been analyzed the personnel to fill the available parts are then selected (manpower selections). This involves the organization for recruitment screening of applicants.

Job Analysis

Before the entrepreneur set out to recruit people for the organization, he should have determined earlier the type of personnel required for each vacant job.

In addition, he also has to determine how many people will be required for the effective operations of the business.

To be able to do this successfully, the entrepreneur must be able to state categorically, during this planning stage, the qualifications, experience and other necessary qualities that are required.

Determining this quality of personnel before the commencement of recruitment is known as job analysis.

To establish these personnel qualities, ensure the determination of the responsibilities of the job (job description), and the specification of the qualifications necessary to fill the job (job specification).

Job Description

Job description involves the definition of the responsibilities of a particular job. It gives the details of the job.

In a normal situation, the job description should cover the followings:

  • Job title
  • Job definition
  • Job Duties. This is the heart of the job description. It should detail out what job is to be done, how it is to be done and why. It is also better to state the major duties before the minor or additional responsibilities are considered.
  • Who the occupant of the job report to and the people that report to him. This involves the authority and decision-making power of the position.
  • The relationship of the job to other jobs, how many people the occupant of the position will directly come into contact within the course of his duties. This could also include the vertical relationships of promotion and horizontal relationship of workflow and procedures.
  • Working conditions. This involves whether the personnel will work in a shift or not. It also involves the hazardous nature of the job. This is, whether the worker would be on his feet all the time or whether he could work in the busy, noisy, hot or unpleasant environment.

Job Description Serves Many Purposes

  • It serves as a summary of duties and responsibilities for record purposes and for review when conditions demand.
  • It makes sure that the entrepreneur does not overlook any aspect of what needs to be done in the organization. If somebody is not clearly making responsible for all the different tasks to be done in an organization, some of the duties are likely going to be overlooked.
  • It eliminates personnel conflict in the workplace. If each person knows what he is responsible for, and to whom he is to report, there would be little or no overlapping of duties. This eliminates friction in the organization.
  • If used in conjunction with job specification, it guides the entrepreneur in putting out advertisements for employment.

Job Specification

Job specification stipulates the qualifications needed for a particular job. After the job description, the question that comes to mind is the qualification (both academic and professional), that is required for the job.

Generally, the facts that need to be noted in job specifications are:

  • The work experience.
  • The academic qualification required.
  • Environmental demands. Some jobs are very hazardous. For example, working in the hot sun, or dusty, noisy or generally, places that are prone to pollution. It is necessary to consider these factors because individuals who cannot withstand harsh environments can easily get tired, fall sick or lose concentration.
  • The intellectual demand – the minimum level of intelligence required.
  • The emotional demands. For instance, the receptionist could get emotionally involved in his work. Potential personnel can therefore not succeed if he has no control of his emotions, or is not patient.

In detailing out the job specifications, the entrepreneur should note those qualifications and attributes that are very essential and those that are desirable.

For instance, an organization that needs a business manager and list the essential qualification as B.Sc in Business Administration while a Post Graduate Degree or Master of Business Administration (MBA) may be a desirable qualification. The essential qualifications are mandatory while desirable qualifications give the applicant an advantage over others that do not possess it.


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