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Factors Affecting Resource Allocation

The document outlines factors that affect resource allocation within an organization, including objectives, powerful units, strategists, politics, and external influences. It also lists difficulties in allocation like scarce resources, high demands, complex budgeting processes, and new business units. Finally, it provides criteria for the allocation process such as fulfilling objectives, supporting key strategies and competencies, and considering special circumstances around strategic changes and shared divisions.

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indra singh
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1K views4 pages

Factors Affecting Resource Allocation

The document outlines factors that affect resource allocation within an organization, including objectives, powerful units, strategists, politics, and external influences. It also lists difficulties in allocation like scarce resources, high demands, complex budgeting processes, and new business units. Finally, it provides criteria for the allocation process such as fulfilling objectives, supporting key strategies and competencies, and considering special circumstances around strategic changes and shared divisions.

Uploaded by

indra singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Factors affecting Resource Allocation

1. Objectives of the organisation


2. Powerful units
3. Dominant strategists
4. Internal politics
5. External influences
Difficulties in Resource Allocation
1. Scarcity of Resources

2. Bloated Demands:

3. Budgetary Process

4. New SBUs

Criteria for Resource Allocation Process


Criteria for Resource Allocation Process

1.Contribution towards fulfillment of organisational objectives

2. Support of key strategies


(a) Support of core competencies
(b) Enhancement of value chain activities:
(c) Risk-acceptance level of the organization

3. Special circumstances
a) When major strategic changes are unlikely
b) When major strategic changes are predicted
c) When resources are shared between divisions
Effecting Resource Allocation
1. Objectives of the organisation
2. Powerful units
3. Dominant strategists
4. Internal politics
5. External influences
Difficulties in Resource Allocation
1. Scarcity of Resources

2. Bloated Demands:

3. Budgetary Process

4. New SBUs

Criteria for Resource Allocation Process

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