MGMT 3028-Resource Management | Cost Effectiveness

Added on - Mar 2020

The document will discuss the process of resource planning and cost-effectiveness. The document also discusses how to evaluate and measure resource planning and how to implement the strategies for dealing with expenditure over budget.

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Running head: RESOURCE MANAGEMENT 1Resource ManagementStudent’s NameInstitutionDate
RESOURCE MANAGEMENT2Cost Effectiveness and Resource AllocationCost effectiveness is one of the main aims of firms; it is imperative for the managementto consider if it is part and parcel of the resource allocation. The first step is to apply thestandardization in cost management. Standardization of cost management is a significant stepthat ensures that the same standards are used in the process of monitoring the overall costs of theoperations. The other step relates to the implementation of activity based costing1the method isparamount in the identification of the actual costs that are accrued in production, selling anddelivering the products and services that the company deals with. Nonetheless, variance analysisalso engages the linking of the budgets with cost effectiveness. Variance analysis shades light onthe deviations between the actual costs and the predicted costs. The variance also allows for thecomparison of the company’s costs with those that are incurred by other companies in theindustry. Through the variance analysis, managers can identify the critical success factors andthe weaknesses. With this, the managers can come up with policies that will help them improvetheir performance.Process of Resource PlanningThe process of resource planning is vital in the achievement of the objectives of the business.The first step involves defining of the project of the business. The next step is to formulate thestrategies and the measures to take. The third step is to implement the strategies and themeasures. Lastly, the results can be utilized in adapting and improve the business.2The process1Marseille, E.et al., ‘Thresholds for the cost–effectiveness of interventions: alternativeapproaches’,Bulletin of the World Health Organization,vol.93, no. 2, 2015. pp. 118-124.2Cassidy, A.,A practical guide to information systems strategic planning. CRC press, 2016.

In brief the model should be that which can allow the implementation of transparency that will allow evaluation and assessment to be made with ease.

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