What is the process of distributing resources among various projects or departments called?

The process of distributing resources among various projects or departments is known as allocation. Allocation involves determining how resources such as time, money, manpower, and materials are assigned to different tasks, projects, or departments in an organization to ensure effective execution and optimal use of assets.

In a business context, effective resource allocation is critical for maximizing productivity and achieving strategic goals. This process requires careful consideration of the needs of each project or department and the availability of resources, allowing organizations to prioritize initiatives based on their potential impact and alignment with overall objectives.

While there are other terms related to managing resources—such as budgeting, which involves planning the allocation of resources over a specific period or for specific projects—allocation specifically focuses on the act of assigning those resources once a budget is set. Therefore, the term allocation directly addresses the distribution aspect of resource management, making it the most appropriate choice in this context.