Factors affecting resource allocation

The following factors affect resource allocation:

1. Objectives :Resource allocation must be oriented to objectives achievement.Objectives should be clearly laid down with strategic priorities for resource allocation.Critical success factors are considered.
2. Managerial preferences :Top managers who are dominated in strategy formulation tend t affect resources allocation.Their preferences attract more resources for their pet projects.
3. Internal policies :Resources area a symbol of power.Internal policies based on negotiations and bargaining affects resources allocation.
4. External influences :The demands of stakeholders also affect resource allocation.They can be owners,suppliers,customers,employees,bankers and community.Legal requirements may require additional resources allocation.For example pollution control,safety and labour welfare requirement.