What is the primary goal of resource allocation in an organization?

Practice Questions

Q1
What is the primary goal of resource allocation in an organization?
  1. To ensure all departments receive equal funding.
  2. To maximize the overall efficiency and effectiveness of resource use.
  3. To minimize costs across all operations.
  4. To prioritize projects based on employee preferences.

Questions & Step-by-Step Solutions

What is the primary goal of resource allocation in an organization?
  • Step 1: Understand what resource allocation means. It is the process of distributing resources like money, time, and people within an organization.
  • Step 2: Identify the primary goal of resource allocation. The main goal is to use these resources in a way that achieves the best results.
  • Step 3: Recognize that maximizing efficiency means using resources in the best way possible to save time and money.
  • Step 4: Understand that maximizing effectiveness means achieving the desired outcomes or goals of the organization.
  • Step 5: Conclude that the primary goal of resource allocation is to maximize both efficiency and effectiveness.
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