{"id":3165,"date":"2021-03-16T00:00:16","date_gmt":"2021-03-16T00:00:16","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?p=3165"},"modified":"2023-12-20T11:44:28","modified_gmt":"2023-12-20T11:44:28","slug":"the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management","status":"publish","type":"post","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management\/","title":{"rendered":"Glossary of Resource Workforce Planning, Scheduling and Management"},"content":{"rendered":"

In the last decade, resource or workforce planning<\/a> and management<\/strong> have become a very critical component of modern businesses. This area has evolved and matured quite a bit. An array of novel concepts has been introduced ever since it started evolving.<\/p>\n

This article attempts to provide a complete glossary of terms<\/strong> used for the resource or workforce planning, scheduling<\/a>, and management<\/strong>. Links to different materials and videos have been provided to understand it better and dive deeper into the concepts.<\/p>\n

Following topics categorize these terms.<\/p>\n

Resource or Workforce Scheduling, Planning<\/a>, and Management
\nResource Capacity Planning<\/a> and Workforce Optimization
\nResource or Workforce Utilization<\/a> and Productivity<\/a>
\nResource or Workforce Financials<\/p>\n

\"Glossary<\/a><\/p>\n

Resource or Workforce Scheduling, Planning and Management Resource Management<\/h2>\n

Resource management<\/h3>\n

Resource management<\/a> is the process of utilizing various types of business resources effectively and efficiently. These resources can be human resources, assets, facilities, equipment<\/a>, etc.<\/p>\n

Enterprise Resource Management (ERM)<\/h3>\n

Enterprise Resource management<\/a> is utilizing various types of business resources effectively and efficiently across the whole enterprise. These resources can be human resources, assets, facilities, equipment, etc.<\/p>\n

\"Top<\/a><\/p>\n

Resource Planning<\/h3>\n

Resource planning<\/a><\/strong> is process of planning, forecasting<\/a>, allocating<\/a>, and utilizing<\/strong> various types of business resources effectively and efficiently. These resources can be human resources, assets, facilities, equipment, etc.<\/p>\n

Agile Resource Planning<\/strong><\/a> refers to where the resource planning is fast-changing in a dynamic environment.<\/p>\n

Workforce Planning<\/h3>\n

Workforce planning<\/strong><\/a> is the process of planning, forecasting, allocating and utilizing workforce<\/a> effectively and efficiently<\/strong> across the enterprise.<\/p>\n

Resource Scheduling<\/h3>\n

Resource scheduling<\/a> is the most crucial part of the resource planning<\/strong><\/a> process. It involves identifying and allocating resources<\/a><\/strong> for a specific period to various types of activities. It is
\nrelated to project work or non-project work i.e., like BAU, Support, admin, operation, etc.<\/p>\n

Workforce Scheduling<\/h3>\n

Workforce scheduling<\/a> is the most critical part of the workforce planning<\/strong><\/a> process. It involves identifying and allocating employees<\/strong> for a specific period to various types of activities. It is related to project work or non-project work i.e. like BAU, Support, admin, operation, etc.<\/p>\n

\"Resource<\/a><\/p>\n

Resource Allocation<\/h3>\n

Resource allocation<\/strong> is an alternate word for resource scheduling<\/a><\/strong>. It involves identifying and allocating resources for a specific period to various types of activities. It is related to project work or non-project work i.e., like BAU, Support, admin, operation, etc.<\/p>\n

Resource Forecasting<\/h3>\n

Resource forecasting<\/a><\/strong> is the process of predicting various resource metrics<\/strong>. It includes demand, supply, vacancies, on the bench, and resourcing cost<\/a> in advance. This forecast helps a business to be proactive and take corrective action ahead of time.<\/p>\n

\"Workforce<\/a><\/p>\n

FTE \u2013 Full-Time Equivalent<\/h3>\n

Full-time equivalent (FTE)<\/a> is a unit of time<\/strong> defined to measure the workload<\/strong> or availability<\/a> or capacity of an employee. One FTE is equivalent to the number of work hours for a full-time
\nemployee in a week.<\/p>\n

Example<\/h3>\n

For example, a company has full-time working hours of 8 hours a day and five days a week. For a full-time employee, this would be one FTE, which is 40 hours a week. For a part-time employee working half the time, this would be .5 FTE or 20 hours a week.<\/p>\n

For better understanding, let us have a look at another example:
\nA company has full-time working hours of 7 hours in a day and 6 days a week. For a full-time employee, this would be one FTE, which is 42 hours a week. For a part-time employee working half the time, this would be .5 FTE, which is 21 hours a week.<\/p>\n

\"Project<\/a><\/p>\n

Matrix Organizational Structure<\/h3>\n

A matrix organizational structure<\/strong> is where an employee has multiple reporting lines<\/strong>. In a matrix
\norganization, working teams have a horizontal working structure. However, the resources belong to different verticals i.e., departments, locations, functional areas, domains, business units.<\/p>\n

In a project-based matrix structure<\/strong>, an individual works for multiple projects<\/a> and reports to multiple project managers<\/a> on an everyday basis. This individual, however, reports to a department head or domain head for performance evaluation, career progression, vacations, and other necessary aspects.<\/p>\n

Now that we know what exactly resource management<\/a> and planning<\/strong> is, let’s understand a few other concepts around the same.<\/p>\n

Resource Capacity Planning and Workforce Optimization<\/h2>\n

Resource capacity<\/a> is the total number of hours<\/strong> an individual is available to work<\/a> as per the arrangement with the employer.<\/p>\n

Example<\/h3>\n

For example, a company has full-time working hours of 8 hours in a day and five days a week.<\/p>\n

For a full time, employee, the capacity would be 40 hours per a week or one FTE or five full person-days.<\/p>\n

However, for a part-time employee working four days\/week and 6 hours\/day, the capacity would be 24 hours\/week. It is equivalent to 0.6 FTE or Three full person-days.<\/p>\n

Example<\/em><\/strong>
\nFor example, a company has full-time working hours of 8 hours in a day and 5 days a week. <\/span><\/p>\n

For a full time, employee, the capacity would be 40 hours per week or one FTE or 5 full person days.<\/span><\/p>\n

On the other hand, for a part time employee working 4 days a week and 6 hours every day, the capacity would be 24 hours a week or .6 FTE or 3 full person days. <\/span><\/p>\n

\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-resource-capacity-and-demand\/\"<\/a><\/p>\n

Resource Demand<\/h3>\n

Resource demand<\/strong><\/a> is the process of understanding the number of resources required<\/strong> to meet the demand for various work types. Work can be related to projects, BAU, admin, support, etc. The amount of work can be measured in terms of hours, FTE, person, days, etc.<\/p>\n

Example<\/h3>\n

A company has full-time working hours of 8 hours\/day and 5 days\/week, which is 40 hours\/week.<\/p>\n

If an employee is allocated 45 hours a week, then the demand for this employee is 45 hours\/week. It is equivalent to 1.125 FTE or 5.625 person days\/week.<\/p>\n

Resource Capacity Vs. Demand<\/h3>\n

Capacity vs. demand<\/strong><\/a> is forecasting shortages or excesses of resources<\/strong> in the short or long term. It is achieved by analyzing the gaps between the capacity of resources against the demand for
\nresources. This gap can be measured in hours or FTE or Person days.<\/p>\n

It is a shortage of resources when the demand is higher than the capacity or supply of resources. Conversely, it is an excess of resources when the demand is lower than
\nthe capacity or supply of resources.<\/p>\n

Resource Capacity Planning<\/h3>\n

Resource capacity planning<\/strong><\/a> is the process of forecasting the gap between capacity and demand<\/strong>. Efficient resource capacity planning bridges this gap.<\/p>\n

The following are the benefits of Resource Capacity Planning<\/strong><\/a>:<\/p>\n