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Human Resources Allocation in Project Management

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Innovation Management and Education Excellence Vision 2020: Regional Development to Global Economic Growth

Human Resources Allocation in Project Management

Roman Nedzelsky, , University of Economics, Prague, Czech Republic, roman.nedzelsky@vse.cz

Abstract:
Resource allocation is an important part of project management. This paper focuses on this area,
especially on human resources allocation. The main paper’s objective is two-fold: The paper introduces
the notion of the Human Resources Information Set (HRIS) and the Human Resources Information Set
Extension (HRIS_E), which are used in project scheduling and resource allocation. Various modes of
HRIS_E use in project management are presented. Practical examples of HRIS_E use together with
benefits obtained are also given. The direction of future research directed towards the advanced use of
the concepts presented is charted.

Keywords: algorithm, project management, portfolio, human resource allocation

1. Introduction
Based on Project Management Institute - PMI (2013), the project is „…a temporary endeavor
undertaken to create a unique product, service or result“. A project is temporary, it has defined beginning
and end, defined scope and resources. A project is also unique because it is not some daily operation. It is
set of tasks with the predefined flow of these tasks to create concrete output. Project management is on
the other side defined, related to PMI (2013) as „application of knowledge, skills, tools, and techniques to
project activities to meet the project requirements“.

Figure 1 - Phases of project management based on PMI, source: author

Project phases with necessary documents based on PMI are shown in Figure 1. We want to mention
particularly the monitoring phase, which is separate from all other phases of the project lifecycle. The
monitoring phase runs through all the project phases and needs to be maintained periodically to prevent
project issues. Software project management involves the scheduling, planning, monitoring, and control
of the people, processes, and resources to achieve specific objectives while satisfying a variety of
constraints. The Project Management is tightly bound with company core process, which involves
resources through all company. These resources are divided into human resources, material resources,
and financial costs. All these resources are allocated in projects and assigned to separate tasks. The
problems are often in an overallocation of these resources because companies don’t know how many
resources they will need. Another issue related to resources is that the companies are not able to get as
many useful resources to concrete role area as possible and needed for the projects. This paper is related

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to algorithms which should be able to help with resource allocation and assignment problems in the field
of project and portfolio management based on sets of information about these resources. Another purpose
of this paper is trying to raise the efficiency of use of these resources is another purpose of this paper.

Based on research of Reunak and Osterweil (2005) the "classic" resource planning is done on the static
level. When scheduling resources are, however, necessary to take into account the fact that the sources
have often dynamic attributes (location, experience etc.). Hegazy (1999), which dealt with multi-
objective optimization by using the techniques of genetic algorithms. Although additional information
about resources was not taken into account. Based on research of Chang (2008) there was compiled
algorithm that addresses the planning of a project based on individual task with its characteristics, skills,
and experience. The main research gap is the missing integration of information sources and creation of
extended information set. This set is described in section 3 and 4.

The remainder of this paper is structured as follows: Section 2 describes a common ground for section 3.
Section 2 is divided into three parts on project management, algorithms for project management and
project resources. Section 3, which is the core of the paper, is oriented towards human resources
allocation. Section 4 concludes the paper.

2. Background
2.1 Project management
In project management, there is used Project Management Triangle (called also Triple Constraint or the
Iron Triangle), i.e. the ratio between quality, time, and finances, which must be consumed on the project.
Between these variables apply a rule that says that if one value is reduced, it is always at the expense of
the other two. Chen and Askin (2009) mentioned, that there is, therefore, the need for constant project
balance. It means that in the implementation of the project it is necessary to constantly calculate how
individual staffing projects corresponds to the financial calculations for each project phase, i.e. what the
rates are for each resource, how do individual tasks as effectively as possible, therefore, for a minimum
period of time, with the best quality, for the least cost. This effectiveness should be raised by using
algorithms described in section 2.2.

Projects are managed by the two basic techniques – using the waterfall model, or agile.

According to Mary (2013), the waterfall model represents the plan at the beginning of the project, which
goes across the entire project lifecycle, and therefore includes estimates for each task through the entire
project. The second approach – agile – is designed rolling planning, thus fixing the individual tasks to the
closest time to come - for example, a week or a fortnight. Sometimes it is necessary to combine these two
approaches together, thus establish the project plan with fixed estimates (for example, the project of
implementation of an information system), which is part of the development of embedded software. For
example, the task has a fixed length of fifty days, which is taken as a summary task and individual cycles
with detailed planning tasks, then governed by, for example, a software architect.

2.2 Algorithms for Project Management

Algorithms for project management support project planning, resource allocation (of project resources to
individual project tasks) and project optimization (based on given criteria). For these purposes, a great
variety of algorithms and techniques have been used. Many of them have a different approach to solving
problems of human resources or project planning. In most cases, the amount of important information is
the main source for all of these algorithms. Another part is a matching of that information together in a
right way. The results are in some cases great and efficiency is raised a lot. A number of resource
allocation algorithms is presented by Kolisch and Hartmann (2009).

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To review these algorithms, the samples of algorithms from the individual areas were collected, by the
author, to describe them briefly and mention their advantages and disadvantages. Selected algorithms
constitute the majority content of scientific articles (possibly with some modifications), and, according to
the author, they are high-quality algorithms, which are actually applicable for optimizing of the allocation
of human resources. It is obvious that some of the procedures are somewhat older; they often omit some
influencing factors, such as the amount of input data, system dynamics and its possible combinations with
machine learning systems, thus adaptability.

The individual algorithms can be assessed from several classic views as time complexity class of
algorithm, etc. However, the algorithms could be assessed only on the specific case and on the basis of
their direct measurement, because each of them is based on significantly different principles. It is
important to take into account the individual characteristics, the amount of the input variables and the
gradual determination of outputs and their classification. In the case of genetic algorithms, an indication
of any amount received by the selection of offspring is necessary. These algorithms are typically
characterized by high timeliness. For linear algorithms or the Hungarian algorithm, the procedure is
significantly different, since it is based on a clean pass of optimization (matrix transpose algorithm).
Below is a description of the selected algorithms that have been chosen in connection with the problem of
optimizing the allocation of human resources, thus a multi-criteria optimization of the search on the basis
of a predetermined volume of data input (human resources with properties). For the algorithms, no
integration of information systems, nor any results on a set of data-entry to each of the participants was
used. The algorithms have been selected on the basis of author’s study of the topic in the literature.

Algorithms are divided based on Kolisch research (2010a, 2010b) into two basic groups – heuristic and
genetic. The aim of heuristics is not to find the exact solution, but only an estimation. Genetic algorithms
are based on the imitation of the biological evolutionary process, they gradually "grow" to the best
solutions using mutation and crossbreeding. Overview of algorithms from the human resource
management point of view is in section 2.3.

2.2.1. Heuristic algorithms

Multicriteria linear algorithm (goal programming approach)

Based on research of Azimi et al (2013), Morteza Rashmani Nikoei and Zinat Jamshidi (2013), Ozcan
(2009) and Yanfeng Wang et al (2002), linear programming is a procedure in which it is taken into
account several basic building blocks that make up this procedure. This is a set of output, which is
determined by the starting point of the problem and cannot have negative values (the values x1, x2, x3,
...). Objective function describes the objectives, which the manager who solves the problem, trying to
achieve — for example, revenue, profit, price. This variable is described as the cost of the resource, or as
a source of profit, etc., he volume of the unit. Other areas are the constraints, which describe the
limitations and the last are the parameters that describe the figures fixed sources.

Heuristic search algorithm

Heuristic search algorithms are, regarding Cummings and Bruni (2010), generally fast and complete, i.e.,
if there is a solution, even partial, the search algorithm will find it. However, heuristic search algorithms
are hindered by their non-optimality: they can easily get stuck in local optima, hence offering no
guarantee that the solution proposed is the best (provided there is an adequate measure of a solution’s
quality).

Hungarian Algorithm
This is the combinational optimization algorithm which solves the problem of allocation in polynomial
time. The time complexity of the algorithm is O(n4) - O represents Time Complexity. Based on Edmonds
and Karp it can be optimized to O(n3) – cubic time. This algorithm is fairly simple in its essence, because

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of searching of values in the matrix instead of mathematical functions. Based on Srinivasan (2009) and
Mills-Tattey et al. (2007), it is built on the principle of a gradual work with the matrix, where the lines are
individual tasks and in the columns are resources.

Hungarian algorithm is often used, for example, to optimize the allocation of human resources to the
specific tasks according to the costs of a specific resource on a task. With Its use, the cost component is
therefore reduced, because the selected tasks should be done in the smaller amount of time. This
algorithm can be used to count the highs, for example, where the company has four branches with
different products and there is a need to properly distribute those products to these branches so that the
company earned the most money in total. The algorithm is unfortunately limited to one input criterion,
that is, the numeric value of the input, which makes it difficult for multi-objective decision making.

2.2.2. Genetic algorithms

Multi-ant colony optimization

Multiple ant colony optimization is a meta-heuristic approach inspired by ant colony algorithm – multiple
in this concrete case means multiple ant colonies and the number of pheromone trails. The ant colony
algorithm was inspired by ants, which are searching for an optimal way between the colony and food.
Algorithm use in calculations communications between agents which is similar to ants, which are putting
pheromones on trails to food – if there is longer way, the pheromone strength quickly fades out, so
stronger pheromone means shorter way. This approach was firstly described by Dorigo et al. (1996) and
Xiao et al. (2013).

Bio-inspired model
Based on an extension of the bio-inspired response threshold model and takes into account various
aspects of the human resource allocation problem, such as the skills of available human resources,
activity-related skill requirements as well as social ties/relationships among involved human resources.
This model is described in more detail way in research of Karditsa, Griva et al. (2015).

Multi-objective genetic algorithm

As already mentioned, a lot of algorithms (for example, Putnam and Boehm model), which were created
for the purpose of optimization of resources in the projects, they can't handle the multi-criteria allocation
of these resources as it should be read in research of Ho and McDevitt (1990). A genetic algorithm is,
based on Alba and Chicano (2007), one of the types of evolutionary algorithms (EA), which are widely
used for the optimization of the different processes. The principle is the gradual creation of a generation
of different solutions to a specific problem, where the solution maintains the so-called the population, in
which each individual is a complete solution to the problem. It is obvious that in the formation of future
generations it is, based on research of Wena and Lin (2008), possible here to apply the principles of
"breeding" and thus achieve improvement solutions to the original problem – and the crossing of the
various mutations of individuals.

Multi-objective hybrid genetic algorithm

Based on researches of Elihoub et al (2006), Ida et al (2011), Jaylakshmi et al (2001), and Kim (2012) -
In multi-objective optimization problems, convergence and diversity are two important issues. The
former indicates the algorithm's ability to find the true Pareto-optimal solutions, and the latter reflects the
algorithm's ability to find as much as possible different Pareto optimal solutions. In order to improve the
convergence of the algorithm, a local search based on critical path theory is incorporated into the H-
MOEA.

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Table 1 - Pros and Cons of selected algorithms, source Author

Multicriteria linear
algorithm
Multi-objective genetic
algorithm
Multi-objective hybrid
genetic algorithm
Heuristic search algorithm
Multi-ant colony
optimization
Bio-inspired model
Hungarian Algorithm
Plus Minus
handling the bounds of the In this scenario
decision variables as they complicated to program
are initially presented
Simple extension of single- Usually slow
objective GA convergence
Improved convergence speed to Increased computational
local optimal time per iteration
generally fast and complete, will non-optimality: they can
find also a partial solution easily get stuck in local
optima
Can be used for both static and Convergence is
dynamic combinational guaranteed, although the
optimization problems speed is unknown
analogies to various phenomena Weights assessment
in nature and society
Simplicity Multi-objective

Kotwal a Tanuja (2015) compared a group of genetic and heuristic algorithms on the specific experiment
represented by the predefined amount of tasks and human resources that need to be split between these
tasks. Based on the result of this research, it is recommended, that ideally use of the algorithm is the
combination of both approaches – both heuristic and genetic. Kotwal and Tanuja (2015) called this
combination as a heuristic mixed genetic algorithm. This research, however, disregards the main problem
of our paper - use the extra set of input information, which would serve as the basis for the optimization
of the use of the most effective algorithm for optimizing the allocation of human resources in project
management.

2.3 Project resources

Project management is constantly trying to deal with the allocation of resources in the project. The
allocation of resources, which is the main topic of this paper, assigns the resources to the specific tasks of
the project. The allocation is carried out in phase 2 according to the Fig. 1. The company mostly does not
address just one project, but generally more projects with these resources as it is evident from Fig. 2.
Please notice in particular human resources, which is the subject of this paper.

Resource 1 Resource 2 Resource 3 Resource 4

Project A X X

Project B X X X

Project C X

Project D X X

Figure 2 - Resources allocation on projects, source Author

In many projects, the execution of some set of activities is limited by constraints, typically by resources
availability. This situation leads towards the problem of Resource Constrained Project Scheduling

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(RCPS). RCPS needs to answer the question, presented by Wall (1996): “Given a set of tasks, resources,
and the way to evaluate performance, what is the best schedule to assign the resources to the activities
such that the performance is maximized?”. Currently, extensive research is carried out in the RCPS area.

Algorithms used in current software tools, such as Microsoft Project Server, or Primavera work with the
basic set of the resource information (see also Chapter 3). For example:
- availability of resources in comparison with the personal calendar,
- the total capacity of which is taken from the resource information,
- the role of the source, which is also taken from the personal profile.

Human resources have beside the resources’ primary role other additional properties. Based on research
of Hart (2012), Bowen (2012), Narahari and Murphy (2009), Raunak and Osterweil (2005), these
properties often include a selection of skills (often technical, or professional specialization). They may be
logged in the personal training plans, which also contain information about career direction and the
motivations in professional life etc. This stored information can be used to optimize the allocation of
resources. This information is usually available from various sources of information as mentioned by
Chang et al. (2008). There is no rule that the company would retain all of that or more, but if they have
this data, it is appropriate to use them. For this purpose, it is appropriate to integrate information
units/systems and the subsequent information to consolidate in a centralized repository/Resource Center.
This Center can be generally in the ERP system, or in a specialized system for project management
support, as well as for portfolio management support.

When working with resources, in particular with human resources, it is necessary, based on Ballesteros-
Perez et al (2013), Chantrapornchai et al (2013b), Lotz Mary (2013), PMI (2013) and Ziaidoostan et al
(2013), to take into account the following circumstances
• In company resources circulate a lot (recruit and dismiss) and often are unique as well, therefore it
is difficult to replace them. It is quite a problem in the case of planned projects with shared resources (see
also fig. 2), and in the course of individual running tasks, one of the sources leaves the company and there
is no one else, who would have handled the same work, or who would be able to execute the task in a
predefined time frame with the same quality of work.
• Projects are carried out by resources typically for a predetermined price. However, new resources,
which come to the company are sometimes able to perform the same job with the same quality for less
money. The project Manager did not anticipate that, and the resource manager often does not manage it
from the running projects view and He is providing for new projects within the portfolio only.
• It is necessary to take into account the additional properties for each resource. These can come from
a number of information systems, and make up the difference in the current human resources planning
and scheduling, which is related to the individual algorithms.

3. Human resources allocation

Resources used in the project management carry a limited amount of input information, i.e.
information that describes the given source from the project management point of view. As it is
mentioned in the introduction of this work, human resources represent a group of project resources, which
has one of the largest sets of input information. Information systems which serve as a support for the
project management use different algorithms for resource allocation. These algorithms, based on the input
information, assign the appropriate project resources to the specific tasks of the project or projects (in a
multi-project environment). In the case of human resources, this information creates (human) resource
information set (HRIS). The content of HRIS differs for each of the allocation algorithms. The
information included in the HRIS is listed in table 2 for some of the algorithms listed in part 3.

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Table 2 - HRIS of allocation algorithms, source Author

Resource Skill weight (number)

Task Skill weight (number)

Resource capacity

Resource skill set

Cost information

Role of resource
Multicriteria linear algorithm X X
Multi-objective genetic algorithm X X X
Multi-objective hybrid genetic algorithm X X X X
Heuristic search algorithm X X X
Multi-ant colony optimization X X
Bio-inspired model X X X X
Hungarian Algorithm X X X

This information should be reflected in the process of its allocation to the specific projects, more
precisely to its use in project management, especially in a multi-project environment.

Certainly, there is another wealth of information about human resources that is not included in HRIS and
that would be appropriate to use in the allocation process as it brings advantage for the use of resources
and project management (e.g. shortening of the project duration, see below). Set of these data will be
labeled as HRIS_E (HRIS Extension). Adding this information to HRIS, EHRIS (Extended HRIS) will be
created. EHRIS is saved in information systems of a company different from the information system for
project management (PM IS). It is important to ascertain this data, to consolidate and to use them in
allocation algorithms and project management software tools. These data have the crucial influence on
the effectivity of the tasks conducted and thereby lead to a higher balance of the project´s portfolios,
which is one of the core thoughts of project methodologies related to a multi-project environment of an
organization.

Based on long-term practical experience of the author, the first version of E_HRIS includes following set
of data:

A/ detailed specification of the work focus of the employee

If we take into account the implementation of a set of attributes related to specific roles of human
resources in an organization, it is possible to better highlight the specialization of each employee. This
leads to a fact that each employee will be conducting activities at which is he really the best (e.g. a
developer will be developing in a specific programming language, an analyst will be analyzing a specific
environment like retail or pharma etc.). Also on the other side, developer should have SQL database
specialization in his skill set. So If Project Manager doesn’t have someone for concrete SQL DB related
task, this developer should do it and maybe in more efficiency way, because of learning of something
new.

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Practical benefits
Based on the author´s experience, after application of the detailed skill set of a source the duration of the
conducted task has been shortened by almost one third. This is an important finding, however, there
might be an allocation problem in the case that it is not possible to find a free resource as every resource
with the demanded skill set is allocated to another project. Then a resource can be found who has no
specific role (e.g. a developer), but who has development of a specific programming language at a junior
level in his skillset. This resource can hold this post until an appropriate resource has been released for
this project. This means that the project will not be prolonged due to resource reallocation that is also an
optimization of the project from the project duration perspective.

B/ information from education plan of the employee

If we focus on resources information based on his educational plans - that in his spare time he develops
himself in a particular focus, it is possible to work with this information as well. It is possible to put a
space in the project such a source, and from the personal experience of the author, the source held
activities on the project with more effectivity and concern. Often there are the groundbreaking concepts
and scenarios often developed. These devotes personal time and these vice activities will do much faster
and at a higher quality. At the same time, practical experience thus obtained is utilized in personal
development. Such a procedure is, of course, necessary to support by a multitude of other soft skill
techniques, however, it is already a procedural matter not covered in conjunction with algorithms for
optimization.

Practical benefits
In practice, there was used the previously mentioned educational plan and experienced developers
working on the project have been made concerning the development of the code in a cloud-based
environment with the participation in the development of business intelligence over the resulting code.
This scenario reduced time by 10-15 percent. And here the result has more than one measure:
- Duration of the task was reduced (the resource was more motivated and want to learn something
new),
- the new concept was bored during the execution of the project tasks,
- this concept starts development of a new product in the company.

In further research, the author focuses on the expansion of E-HRIS for more information about human
resources. Based on both his long-term practical experience as well as from the study of literature.

The use of E-HRIS in project management

The next stage of the research is to determine how to use E-HRIS and therefore HRISE in project
management. This way we denote as PMM (Project Management Mode). Two basic modes should be
defined for PMM:
• Basic mode PMMS (Simple PMM) – basic
• Integrated mode PMMC (PMM Complex) – complex

PMMS
In this case, the project manager is created HRISE. The relevant information in the E-HRIS ("manually")
are provided by him into the corresponding information systems in the organization. Information are then
transformed into the smaller set, required by the used resource allocation algorithm. That is, it uses the
resource allocation algorithm, which does not directly support the information from the E-HRIS. This
mode uses the author in the present stage of research.

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PMMC
In this case, resource allocation algorithm directly supports the information from E-HRIS, even from
across the HRISE. This information set is automated and online synchronized from the corresponding
information systems across the Organization and creates new, specified “information system” strictly for
project and portfolio management. To ensure this mod is a must, in addition to HRISE, to ensure in
particular the following conditions:
• HRISE support by the algorithm
• Application integration in various information systems of concrete organization with PM application
• PM application ensuring referred mode

Depending on the method and extent to ensure the above conditions there is a possibility to define
additional mods "lying in between the" PMMS and PMMC.

4. Conclusion and further research

Author’s contribution to human resources allocation in project management is presented in section 3. It is
based on author‘s research work as well as on his long-term practical experience in project management.
The notion of HRIS is presented, which is mapped towards several widely used algorithms for project
management, as well as the notion of HRIS, for which also the first version of the practical content is
presented. Based on these two notions the notion of PMM i.e. the mode of human resources information
use in project management is defined. Besides the theoretical contribution the author‘s work has a
significant contribution to praxis. This is documented by presentation of practical benefits of his work,
although they were implemented with first author’s version of HRISE and in PMMS mode.

There are several directions of further research. Extension of the current version of HRISE may be seen
as a shorter-time goal. Then the long-term goals are directed towards research and implementation of
PMMC.

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