Allocating human resources to projects and services in dynamic project environments

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    12 Citations (Scopus)
    341 Downloads (Pure)

    Abstract

    Purpose: Resource allocation is challenged by dynamic environments where changes are frequent. The purpose of this paper is to identify resource allocation challenges and practices in service units that perform both project and non-project activities in dynamic environments. Its goal is to show that top-down mechanisms of project resource allocation need to be replaced by or supplemented with mechanisms that are more flexible. Design/methodology/approach: A qualitative comparative case study was conducted in two service units of two project-based firms. The main source of data consisted of semi-structured interviews with 17 service managers and staff members. Findings: This study shows that resource allocation is not necessarily a top-down process at all, and the practices are context-dependent. Two more flexible approaches are revealed – hybrid resource allocation and bottom-up resource allocation – as examples of managing resource allocation in service units that engage in projects under uncertain conditions. The results of the analysis highlight prioritisation and adapting to change and delay as the main issues that managers face in allocating resources to different types of projects and service activities in dynamic environments. Research limitations/implications: The two target companies chosen for the qualitative research design limit the analysis to project-based firms in a business-to-business context. Further, the viewpoint of the service unit is central to the study. Studying project resource allocation in different organisational contexts and uncovering the perspectives of product development and delivery units would offer promising directions for future research. Practical implications: The study reveals that in dynamic project settings such as service organisations, top-down mechanisms of resource allocation need to be accompanied by other, more flexible approaches to ensure the sufficient resourcing of projects and related services in dynamic environments. Companies need to establish practices for resource allocation changes that are caused by re-prioritising tasks and accommodating changes and delays in their project and service activities. Originality/value: Compared to a top-down perspective taken in previous research, the study proposes a more flexible approach for resource allocation in constantly changing environments with different project and service activities. Previous studies have focussed on resource competition between projects, placing project managers in the central role for resource allocation. By contrast, this study discusses hybrid and bottom-up resource allocation, both of which involve broader personnel engagement in resource allocation tasks, drawing on the experience of all employees.

    Original languageEnglish
    Pages (from-to)486-506
    Number of pages21
    JournalInternational Journal of Managing Projects in Business
    Volume11
    Issue number2
    Early online date19 Apr 2018
    DOIs
    Publication statusPublished - Jun 2018
    Publication typeA1 Journal article-refereed

    Keywords

    • Activities
    • Contingency view
    • Project-based firms
    • Resource allocation
    • Services
    • Uncertainty

    Publication forum classification

    • Publication forum level 1

    ASJC Scopus subject areas

    • Business and International Management
    • Strategy and Management
    • Management of Technology and Innovation

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