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allocation

al-oh-KAY-shun /ˌæləˈkeɪʃən/

nounC1GMATIELTSCAT

ProfessionalFormal

The action or process of distributing resources, such as money, time, or personnel, for a particular purpose.

Allocation implies a deliberate and strategic decision-making process rather than random distribution.

The story behind the word. From the Latin 'locare' (to place), 'allocation' literally means 'placing something toward' a specific goal. It entered English in the 1600s, originally used in accounting to describe where money was 'placed' in the books.

Word relationships

allotment: Allotment often refers to the specific portion given, while allocation refers to the process of giving it.
distribution: Distribution is a broader term for spreading things out; allocation is specifically for a purpose.

mismanagement: Mismanagement is the poor handling of resources, whereas allocation is the planned distribution.

Commonly confused with

assignment: Assignment usually refers to giving a person a specific task; allocation refers to distributing resources (like people) to a project.

Word family

allocate (verb): To distribute for a purpose.
allocated (adjective): Distributed or set aside.

Collocations

resource allocation
budget allocation
asset allocation
efficient allocation

Example sentences

"The annual budget allocation for research and development was increased by ten percent." Finance
"Proper resource allocation ensures that no single team member is overwhelmed with tasks." Project Management

Memory hook

Allocation is about finding the right 'location' for your resources. Allocate to the right location.

When not to use

Avoid using it for simple 'giving'; it suggests a formal system of distribution.

Fun facts

In economics, 'Pareto efficiency' is a state of resource allocation where no one can be made better off without making someone else worse off.
Asset allocation is the most important factor in determining the long-term returns of an investment portfolio.