Methods and systems for managing resources in a networked storage environment are provided. One method includes generating a relationship between latency and utilization of a resource in a networked storage environment using observation based, current and historical latency and utilization data, where latency is an indicator of delay at the resource for processing any request and utilization of the resource is an indicator of an extent the resource is being used at any given time; and selecting an optimal point for the generated relationship between latency and utilization, where the optimal point is an indicator of resource utilization beyond which throughput gains for a workload is smaller than increase in latency.