Challenges Facing Established Firms
Resource allocation in the management of an organization, its activities, and projects is very important. Resource allocation or allotment provides management and the employees with a clear picture of the amount of work that needs to be done, how it is supposed to be done, and the expected outcomes (Bower & Gilbert, 2005). Resource allocation also helps in the scheduling of project activities and provides project teams with resource pools necessary for the grasping of existing and future opportunities (Noe et al., 2017). Verizon Communications allots resources for purposes of grasping existing opportunities by first identifying the existing opportunity that would be most profitable for the company. An assessment of the opportunity is conducted, including the assessment of the necessary resources and the risk involved, after which financial and human resources are assigned to a project team developed to take advantage of the opportunity. Time is allocated to team members to provide them with adequate time for project work.
Besides preparing for purposes of grasping existing opportunities, the company also prepares for future opportunities. The company has a research and development department that is tasked with conducting research and market oversight activities for purposes of identifying future opportunities and taking advantage of them. There is an annual budget allocation that goes to the department to finance its activities and to ensure that it is ready when an opportunity arises (Macrotrends, n.d.). The production department is also divided into teams that are always ready to take new challenges and develop new products. The company has adequate factory space, raw materials, support staff, and financial resources set aside for purposes of taking advantage of any opportunities that may arise in the future.
The
allotment of resources at Verizon Communications is optimal. The company
ensures this by using various resource management tools and strategies to estimate
and allocate resources. This way, the chances of inadequate resource allocation
and resource dependency causing project failure are largely minimized. Proper
resource planning is very important for the success of the organization (Bower
& Gilbert, 2005).
References
Bower, J. L., & Gilbert, C. G. (Eds.). (2005). From resource allocation to strategy. Oxford University Press.
Macrotrends. (n.d.). Verizon Research and Development Expenses 2006-2019. Retrieved December 5, 2019, from https://www.macrotrends.net/stocks/charts/VZ/verizon/research-development-expenses.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
