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Project Management, Project Planning, Templates and Advice

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  • Includes glossary, support resources, and sample plans
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What are the Three Types of Resource in Project Management?

by | reviewed 26/01/2021
In project management, resources are essential components that contribute to the successful completion of a project. They encompass everything that can be utilized in the process of achieving project goals, including people, equipment, and materials. Understanding the different types of resources is crucial for effective project planning and execution. Here, we delve into the three primary types of resources in project management: human, physical, and financial resources. An image shows the 3 types of resource in project management: human, physical and financial. Under each resource types is a list of examples.

1. Human Resources

Human resources are at the core of every project, involving the personnel who contribute their skills, knowledge, and expertise. This category includes project managers, team members, contractors, and consultants. Effective management of human resources involves tasks such as recruiting, training, team building, and performance evaluation. The success of a project heavily relies on the ability to align the skills and capabilities of the team with the project's needs, ensuring that tasks are assigned to individuals who possess the appropriate expertise.

2. Physical Resources

Physical resources refer to the tangible assets required to execute a project. This includes equipment, materials, tools, and facilities. Whether it's the machinery needed for construction, the technology essential for IT projects, or the materials required for manufacturing, managing physical resources involves planning for acquisition, usage, maintenance, and eventual disposal or reuse. Efficient management of physical resources ensures that the right assets are available at the right time and location, minimizing downtime and maximizing productivity.

3. Financial Resources

Financial resources pertain to the budget and funds allocated for the project. This encompasses capital, cash reserves, grants, and other forms of financial assets that can be used to cover the costs associated with human and physical resources, as well as other project expenses. Effective financial resource management involves budgeting, forecasting, expenditure tracking, and financial reporting. It ensures that the project remains within budget constraints and financial risks are minimized, contributing to the overall financial health of the project.

Understanding and managing the three types of resources in project management—human, physical, and financial—are fundamental to a project's success. Each type plays a crucial role in the planning, execution, and completion of a project. Effective resource management requires meticulous planning, ongoing monitoring, and adjustments as necessary to ensure that resources are utilized efficiently and effectively. By mastering the management of these resources, project managers can significantly improve project outcomes, delivering on time, within budget, and according to specifications.