Assignment Method Definition


What Is the Assignment Method?

The assignment method is a way of allocating organizational resources in which each resource is assigned to a particular task. The resource could be monetary, personnel, or technological.

Understanding the Assignment Method

The assignment method is used to determine what resources are assigned to which department, machine, or center of operation in the production process. The goal is to assign resources in such a way to enhance production efficiency, control costs, and maximize profits.

The assignment method has various applications in maximizing resources, including:

  • Allocating the proper number of employees to a machine or task
  • Allocating a machine or a manufacturing plant and the number of jobs that a given machine or factory can produce
  • Assigning a number of salespersons to a given territory or territories
  • Assigning new computers, laptops, and other expensive high-tech devices to the areas that need them the most while lower priority departments would get the older models

Companies can make budgeting decisions using the assignment method since it can help determine the amount of capital or money needed for each area of the company. Allocating money or resources can be done by analyzing the past performance of an employee, project, or department to determine the most efficient approach.

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Regardless of the resource being allocated or the task to be accomplished, the goal is to assign resources to maximize the profit produced by the task or project.

Example of Assignment Method

A bank is allocating its sales force to grow its mortgage lending business. The bank has over 50 branches in New York but only ten in Chicago. Each branch has a staff that is used to bring in new clients.

The bank’s management team decides to perform an analysis using the assignment method to determine where their newly-hired salespeople should be allocated. Given the past performance results in the Chicago area, the bank has produced fewer new clients than in New York. The fewer new clients are the result of having a small market presence in Chicago.

As a result, the management decides to allocate the new hires to the New York region, where it has a greater market share to maximize new client growth and, ultimately, revenue.

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