While the perks of a centralized resource model far outweigh its downsides, this doesn’t mean it is free of any cons. In fact, the leading two shortcomings are:

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For example, one foundational pillar of centralized resource management involves establishing robust data management practices and consolidating resource data into one platform. In turn, this serves as a: Â

For instance, conflict resolution may be centrally managed, but skills audit and project allocation may be handled by individual departments.

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High-performing organizations that understand the power of a skilled talent pool leverage centralized resource management. Their aim? To have a streamlined system in place that helps them achieve resource management maturity, guaranteeing timely project deliveries within defined budgets, and a motivated workforce that is neither overstretched or under-challenged.

This means that whether your decisions are centrally or departmentally managed — or split between the two — all data is captured in a single resource management platform. This way, you’ll have:

Whatever resource management model you decide to leverage, our word of advice is to centralize resources in a single platform.

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Do you know the difference between skills and competencies? Here's how to tell them apart to improve your skills management process.

At the end of the day, an efficient resource management model — tailored to meet your business’s needs — helps you increase cost savings and unlock revenue growth as you enjoy a competitive edge. Â

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As the name suggests, centralized resource management involves a central authority making all resource-related decisions including resource planning, allocation, and budgeting.

We’ll look at the three leading resource management models, their pros and cons, and wrap up with questions to ask yourself to identify which model suits your organization best.

A resource management model refers to the way an organization structures, organizes, and manages its resources including human and software resources.

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Keep in mind though: centralizing resources isn’t limited to funneling all resource-related authority and decision-making to one person. There is a lot of process building that has to happen to support centralization efforts.

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Since teams manage their individual resources in this setting, it’s often referred to as decentralized resource management.

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The benefits of this management model entirely depend on how effectively and efficiently teams manage their people. There’s typically a loose blueprint guiding decentralized resource management with teams mostly having different systems and processes in place.Â

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Having a defined system in place to manage resources is crucial for not only effective management but also boosting organizational productivity and performance.

Since a hybrid model marries both centralized and decentralized approaches to resource management, it brings together the strengths of both worlds. These strengths culminate in the following benefits:

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Since these models are aimed at effectively managing human resources, they take an employee-led approach which, in turn, increases employee retention and reduces burnout among your workforce.

The exact opposite of a central model, decentralized resource management involves individual teams managing resources and making relevant decisions.Â

In the internal auditing departments, resource management is a highly dynamic process. Here's what it involves and how to succeed.

Centralized, decentralized...or something halfway between the two? Discover which resource management model is the best fit for your business.

Despite it canceling out the downs of both centralized and decentralized management, the hybrid model shows these shortcomings:

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A central system for managing resources improves project outcomes, resource utilization, and employee satisfaction. Here’s a full rundown of the benefits of a centralized resource model:Â

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With all this said, it’s essential you first spend time understanding what you need to make informed decisions. We’ll leave you with some of our most popular resource management guides to give you a helping hand!

But before you can make the most of these benefits, you need to find and implement a resource management model that can best help your organization handle resources efficiently.

This central authority could be a dedicated team or department — really anyone from a Resource Management Office (RMO) in a large organization to a senior resource manager at a small business.

That said, planning and executing a hybrid resource management model takes extensive work upfront. In fact, finding the right balance between centrally managed and departmentally handled decisions can not only be challenging but also time-consuming.

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Since nothing is centralized — in other words, there’s no single source of truth — the model delivers the following downsides:

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A hybrid model takes from both centralized and decentralized resource management models where some strategic decisions are handled centrally with departments managing the day-to-day decision-making.

However, there’s no defined, streamlined system in place as all teams have their unique ways of managing resources. Naturally, this can lead to under-utilization, inadequate capacity planning, and unpredictable employee engagement levels — culminating in poor outcomes such as high turnover and frequently missed deadlines.