6. Conclusion
6.1 Contributions and practical implications
In the cases studied in this research, service units organise their activities into projects and service activities and use the same resource pool to deliver both. In such an environment, success of all activities is highly dependent on the resources available, and resource allocation is a critical process required to organise and manage both project and service activities. This challenge becomes more critical in dynamic organisations operating in conditions of high uncertainty. This study has reported evidence from service units to document more extreme cases where the activities competing for resources are highly uncertain in their scope and duration. Managing resources in such a dynamic environment requires an approach that allows a rapid response to changes, sharing information to facilitate decision making. This paper identified two main sources of resource allocation issues in an uncertain environment involving multiple types of activities, namely, the dynamic nature of customers’ service requirements and changes and delays to projects. Our research has shown that urgent requirements from customers may require the organisation to re-prioritise its activities continuously, re-allocating resources between projects and service activities while adapting plans to changes and delays in projects; this, in turn, calls for a cross-functional negotiation of priorities. This paper revealed two approaches used to organise this uncertain environment and to allocate resources, which have been labelled bottom-up and hybrid resource allocation. These approaches extend the findings of previous studies that have focussed on top-down oriented resource allocation as an approach to adjudicate resource competition between projects in a multi-project environment where schedules and resources are planned by managers for projects in advance.