A method and system for reallocating resources in a logically partitioned environment using hierarchical weighting comprising a Performance Enhancement Program (PEP), a Reallocation Program (RP), and a Hierarchical Weighting Program (HWP). The PEP allows an administrator to designate several performance parameters and rank the priority of the resources. The RP compiles the performance data for the resources and calculates a composite parameter, a recipient workload ratio, and a donor workload ratio. The RP determines the donors and recipients. RP allocates the resources from the donors to the recipients using the HWP. The HWP evaluates and ranks the equivalency of donors and recipients based on the noise factor. HWP then reallocates the resource in each class and subclass from the highest ranked donor to the highest ranked recipient. The RP continues to monitor and update the workload statistics based on either a moving window or a discrete window sampling system.