There are five resources in Kohan II: gold, stone, wood, iron and mana. Different buildings and mines provide a certain income rate for each resource once they are built, with no need for peasants to gather those resources. In fact, the only resource that stacks is gold, with all the other resources only having a positive or negative income rate, because they are required for the upkeep of certain units and some buildings. If you have a negative flow for one of the latter resources, you have to compensate in gold. A surplus in one of the resources flow can be transformed in gold income by upgrading a city building into an exporter. Every unit, upgrade or building that you buy will cost you gold, and some of them will generate upkeep. In the end, you will spend enough time tweaking your economy to get the best gold income from your mines and cities, by upgrading buildings to producers or exports depending on the situation. Even more, once you capture a mine, or loose one to the enemy you will have to rethink your entire economy, so the micromanagement isn’t really absent, unless you play against the computer on lower dificulty settings, where you don’t really need to do everything perfect.
The race and faction that you play also has a major influence on your economy, as each race and faction offers certain bonuses such as lower building or recruiting cost etc. There are six races you can choose from: human, haroun, drauga, gauri, undead, and shadow, each with its own strengths and weaknesses, though my personal experience with the game tells me that the undead are rather unbalanced.
As I already mentioned, in Kohan II you control companies, not individual units. A company consists of a frontline of four units and a captain, and optional up to two flanking units and two support units. You can choose the type of unit for specific roles: for example, a basic melee company would consist of a swordsman frontline with pike men at the flanks, a mage and a healer for support. For the captain role you can choose one of your available heroes, or kohan as they are called. They gain experience and level up to become more powerful and they also provide bonuses to the company which they lead. Companies can only be destroyed if every unit in it is killed, otherwise you can retreat near your cities or outposts to heal and spawn new units in the company for no cost. Heroes of course can not be destroyed, as you can respawn them immediately after death, the only downside being that they lose all their levels and experience.
Cities and outposts provide a supply zone around them which you can enlarge by upgrading them. The outposts are of crucial importance, as they also house militia like the city halls, helping you to guard mines and strategic locations on the map by holding off the attackers long enough for you to send reinforcements.