University Business Resource Management: Cost Effectiveness Report

This report provides an overview of resource management, emphasizing cost effectiveness and resource allocation. It explores the importance of standardization in cost management, activity-based costing, and variance analysis. The report outlines the process of resource planning, including defining project objectives, formulating strategies, implementation, and adaptation. A logical model is proposed for measuring the performance of resource planning, considering factors like employee behavior, customer satisfaction, and transparency. The process for comparing forecasted budgets involves variance reports, cost component analysis, and recommendations for budget allocation. The measurement results are determined by parameters in the logic model, including accurate data, reliable information, and transparency. References from Cassidy, Estampe, Drury, and Marseille are included to support the analysis.

Running head: RESOURCE MANAGEMENT 1
Resource Management
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Cost Effectiveness and Resource Allocation
Cost effectiveness is one of the main aims of firms; it is imperative for the management
to consider if it is part and parcel of the resource allocation. The first step is to apply the
standardization in cost management. Standardization of cost management is a significant step
that ensures that the same standards are used in the process of monitoring the overall costs of the
operations. The other step relates to the implementation of activity based costing1 the method is
paramount in the identification of the actual costs that are accrued in production, selling and
delivering the products and services that the company deals with. Nonetheless, variance analysis
also engages the linking of the budgets with cost effectiveness. Variance analysis shades light on
the deviations between the actual costs and the predicted costs. The variance also allows for the
comparison of the company’s costs with those that are incurred by other companies in the
industry. Through the variance analysis, managers can identify the critical success factors and
the weaknesses. With this, the managers can come up with policies that will help them improve
their performance.
Process of Resource Planning
The 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 the
strategies and the measures to take. The third step is to implement the strategies and the
measures. Lastly, the results can be utilized in adapting and improve the business.2 The process
1 Marseille, E.et al., ‘Thresholds for the cost–effectiveness of interventions: alternative
approaches’, Bulletin of the World Health Organization, vol. 93, no. 2, 2015. pp. 118-124.
2 Cassidy, A., A practical guide to information systems strategic planning. CRC press, 2016.

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of resource planning is determined by the way resources are allocated. If resources are properly
allocated then the process of resource planning will run smoothly.
Model for measuring resultant resource planning
The model that will be significant in this case will be the logical model. The model will
aid in the measuring of the performance of the resource planning. The model will involve the
stake holders where they will in a position to access the performance and the direction of the
organization. The logical model creates a room where the impact of the resource planning on the
objectives of the company can be checked. Various factors must stir the implementation of
resource planning. For example, changes in the behavior of the employees and in the norms of
the society, the involvement rate, the levels of customer satisfaction and the capacity of the
resource planning to help in the improving of the services and the goods that are rendered3 The
tolerances that will trigger implementation will include spending of more resources to factors
that need more attention such as customer satisfaction and also in promoting of transparency
throughout the organization so as participation by all is encouraged. The tolerances arise due to
the dire need to encourage possible business decisions, create accountability and promoting
effective and efficient utilization of resources.
Process for comparing the forecasted budget
The first step involves coming up with variance reports. The report will state the
deviation that exists between the actual costs and the predicted costs of the organization. The
report can be in the form of a table. The other step is to look into the components that constitute
of costs and then justifying why the variances are available. The next step is to consider the
3 Estampe, D. et al., ‘A framework for analyzing supply chain performance evaluation
models,’ International Journal of Production Economics, vol. 142, no.2, 2013, pp. 247-258.

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effect that the variances have on the fixed costs. Likewise, one has to consider the impact on
them on variable expenses. All these can be made easier through the use of tables.4 Afterward,
it's a chance to give conclusions and come up with recommendations. The conclusion and
recommendations will form the way forward of how to deal with the situation at hand. In the
allocation of the budgets, all the recommended individuals should be involved. Then the roles of
budgeting should be properly delegated.
The resultant of the measurement
The result of the measurement will be predetermined by parameters in the logic model.
The model aims at indicating if the resource planning is favorable or unfavorable. The model
will be tested through it proving that it has parameters that will produce the desired results. The
parameters in the model include the encouragement of the use of accurate data, the
information should also be reliable. The parameters also instigate the use of resources that can
be tested to identify their validity. In addition, the model allows for conclusions to be made
should be justifiable by the model. The model should be that which can allow the
implementation of transparency that will allow evaluation and assessment to be made with ease.
References
4 DRURY, C., Management and cost accounting. Springer, 2013.

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Cassidy, A., A practical guide to information systems strategic planning. CRC press, 2016.
Estampe, D. et al., ‘A framework for analyzing supply chain performance evaluation
Models,’ International Journal of Production Economics, vol. 142, no.2, 2013, pp. 247-
258.
DRURY, C., Management and cost accounting. Springer, 2013.
Marseille, E.et al., ‘Thresholds for the cost–effectiveness of interventions: alternative
approaches’, Bulletin of the World Health Organization, vol. 93, no. 2, 2015. pp. 118-
124.