Management techniques final2


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  • John F. Mee, former chairman of the department of management at the Indiana University School of Business,
  • (MJ Clay General theory of management techniques I London)
  • System" means "something to look at”
  • Definition of 'Cost Control'The practice of managing and/or reducing business expenses. Cost controls starts by the businesses identifying what their costs are and evaluate whether those costs are reasonable and affordable. Then, if necessary, they can look for ways to cut costs through methods such as cutting back, moving to a less expensive plan or changing service providers. The cost-control process seeks to manage expenses ranging from phone, internet and utility bills to employee payroll and outside professional servicesFinancial accountingFinancial accounting aims at finding out results of accounting year in the form of Profit and Loss Account and Balance Sheet. Cost Accounting aims at computing cost of production/service in a scientific manner and facilitate cost control and cost reduction. Financial accounting reports the results and position of business to government, creditors, investors, and external parties. Cost Accounting is an internal reporting system for an organization’s own management for decision making. In financial accounting, cost classification based on type of transactions, e.g. salaries, repairs, insurance, stores etc. In cost accounting, classification is basically on the basis of functions, activities, products, process and on internal planning and control and information needs of the organization. Financial accounting aims at presenting ‘true and fair’ view of transactions, profit and loss for a period and Statement of financial position (Balance Sheet) on a given date. It aims at computing ‘true and fair’ view of the cost of production/services offered by the firm.
  • Planning, programming and budgeting system (PPBS) is a middle type of budget between the traditional character and object budget, on the one hand, and the performance budget on the other. The major contribution of PPBS lies in the planning process, i.e- the process of making program policy decisions that lead to a specific budget and specific multi-year plans. The preferred programs form in effect a long term plan to be pursued over a number of years; each program budget will disclose the cost of providing a service to satisfy an objective, Broken down into time periods, it therefore informs management in a manner allowing them to make judgments about such effectiveness that would not be possible it programs were fragmented in the departmental of budget concerned.  
  • Bottom Up Budgeting
  • Project managers can have the responsibility of the planning, execution and closing of any project, typically relating to construction industry, architecture, aerospace and defense, computer networking, telecommunications or software manager is responsible for providing financial advice and support to clients and colleagues to enable them to make sound business decisions.DisadvantageTop management has limited influence over the budgeting process, Individual tend to overstate their resource needs because they suspect that higher management will probably cut all budgets by the same percentageMore persuasive managers sometimes get a disproportionate share of resources A significant portion of budget building is in the hands of the junior personnel in the organisation Sometimes critical activities are missed and left unbudgeted
  • Refrences: Bull World Health Organ. 1971; 45(1): 53–75.
  • Application of techniques designed to establish the time for a qualified worker to carry out a specified job at a defined level of performance.Eg. Determining the number of machines that an operator can run, minimizing the idle time.
  • Asia Pac J Public Health. 1998;10(1):29-32
  • AdvantagesDuring initial stages, it can be used to test project ideas and concepts for relevance and usefulnessIt guides systematic and logical analysis of the key interrelated elements that constitute a well-designed project (THE WORLD BANK 2000)It defines linkages between the project and external factorsDuring implementation, the logframe serves as the main reference for drawing up detailed work plans, terms of reference, budgets, etc (WAGENINGEN UR 2010)A logframe provides indicators against which the project progress and achievements can be assessed (WAGENINGEN UR 2010)It provides a shared methodology and terminology among governments, donor agencies, contractors and clients (THE WORLD BANK 2000)DisadvantagesFocusing too much on problems rather than opportunities and vision (WAGENINGEN UR 2010)Organisations may promote a blueprint, rigid or inflexible approach, making the logframe a straitjacket to creativity and innovation (THE WORLD BANK 2000)Limited attention to problems of uncertainty where a learning or adaptive approach to project design and management is required (WAGENINGEN UR 2010)The strong focus on results can miss the opportunity to define and improve processes
  • Management techniques final2

    2. 2. Contents       Definitions Project v/s Programme Need for management techniques Classification Management Techniques Conclusion
    3. 3. Definitions     Management means ―the process of dealing with or controlling things or people‖ Definition: ―the art of securing maximum results with minimum of efforts so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service.‖ (John F Mee.1963) Technique: methods of accomplishing a desired aim or purpose. Programme: integrated suite of related projects for wider group of people and often across a wider region , over a longer period of time and involve multiple strategies and projects.
    4. 4. Project More complex interface with the strategy •Defined start and finish dates. •Focus is more on targets. Rather than benefits. •Simpler; only have to focus on targets. •Projects are ‗ring fenced‘. Programme •Less well defined end date. •Focus is on delivering benefits and requires involvement after projects have ended. •More interative with the external factors
    5. 5. What is need for management techniques        Detection: What is happenning ?? Evaluation : What is wrong or right?? Improvement: How can wrong be converted to right?? Optimization: what is the best way for best results?? Specification: for use appropriate resources, objectives Control: control of resources Communication: proper dissemination of information
    6. 6. Classificatio n
    7. 7. LEVELS OF MANAGEMENT Highest Middle level Lower level
    8. 8. Different Managemant techniques Highest Middle • • • • • System analysis Statistical trends Cost Benefit analysis Cost Effective Analysis Programme Budgetting • • • • • Statistical trends and forecasting Manpower planning Simulation Studies System analysis Cost Benefit analysis Information system and record linkage Lower • • • • Network analysis Work Study Behaviour Science Simulation studies
    9. 9. Techniques used in management of resources Human resource Material Money Time • Organizational analysis and behaviour • Method Study • Work Measurement • Incentive scheme • Job analysis • Inventory control • Value analysis • Cost accounting • Cost benefit • Cost effective • Input- output • Programme budgetting • Network analysis • Method study • Work measurement
    10. 10. Various Management techniques
    11. 11. Different Managemant techniques Highest Middle • • • • • System analysis Statistical trends Cost Benefit analysis Cost Effective Analysis Programme Budgetting • • • • • Statistical trends and forecasting Manpower planning Simulation Studies System analysis Cost Benefit analysis Information system and record linkage Lower • • • • Network analysis Work Study Behaviour Science Simulation studies
    12. 12. System analysis  A system is a set of interacting or interdependent components forming an integrated whole.  A system has nine characteristics:  Components----------------------Subsystems  Interrelated components  A boundary  A purpose  An environment  Interfaces  Input  Output  Constraints
    13. 13. Environment Input(Man , Material , Money) Interface(Interaction between environment and system) Component s(essential Parts) Output Boundary Interrelationship
    14. 14. System analysis  System analysis – decomposes a system into its component pieces for the purpose of studying how well those component parts work and interact to accomplish their purpose.  Systems design – a complementary technique (to systems analysis) that reassembles a system‘s component pieces back into a complete system— hopefully, an improved system  This an appropriate course of action to choose alternatives in terms of cost effectiveness, reexamination of the objectives.
    15. 15. system analysis in Problem Solving Systems Analysis Systems Design
    16. 16. System analysis  1. 2. 3.  Done by: Investigating problems Searching out objectives Finding alternative solution The technique is used to study different factors in totality and also to study changes necessary for improvement.
    17. 17. System analysis for ADR
    18. 18. Statistical methods for management
    19. 19. Time trends and forecasting   A time-series is a set of observations on a quantitative variable collected over time. Examples  Historical data on number of cases, beneficiaries, costs etc.  Time trends is the practice of collecting information and attempting to spot a pattern, or trend, in the information.  In time trends, we analyze the past behavior of a variable in order to predict its future behavior.
    20. 20. Time trends and forecasting  Epidemiologist can construct endemic curves based on incidence of disease and also establish the likely limits of variations.  If the incidence of a disease exceeds the expectation by certain limits, the occurrence of an increased incidence or epidemic can be anticipated.  Forecasting the demands for the supplies of the material can be anticipated and a state of preparedness maintained
    21. 21. Decision theory  Decision theory is the body of analytical tools, including logic and mathematical models, using probability theory and diagrammatic presentation for use in decision making.  Future events, which may affect decision making, are shown diagrammatically.  It has enabled policy makers to study alternative health strategies logicically in disease screening , immunization etc.
    22. 22. Decision tree  Decision tree is a diagram that depicts key interactions among decisions and associated chance events, as the decision maker understands them.  The base of the decision tree, drawn horizontally is the starting point denoting an event which occurs by chance.  Branching of tree into two or more branches begins at the first chance event.
    23. 23. Cost – accounting  Provides basic data on cost structure of any programme.  It has three important purposes in health services 1. 2. 3. Cost control Planning and allocation of people and financial resources. Pricing of cost reimbursement.
    24. 24. Cost – accounting  Comparison can be made on the basis of cost accounting where there is variation in unit cost of similar types of services  Cost accounting is valuable management tool to identify inefficient services  locate wasteful use of resources  bring efficiency into health care system. 
    25. 25. Cost – benefit analysis  Benefits are expressed in monetary terms to determine whether a given programme is economically sound and to select best out of several programmes.  Cost of sickness calculated from direct cost of treatment of patient and he being the non productive member of the society.  Once the cost of disease is known, the cost of preventive measures can be compared with it.
    26. 26. Cost – benefit analysis  Drawback: Benefits can not always be expressed in monetary terms as in health field benefits are generally in terms of deaths or births prevented or illness avoided.  E.g .Cost benefit analysis of intensified programme against smallpox in India during period July 1973 to December 1975 has shown net benefit of Rs 1058 million.
    27. 27. Indoor pollution Cost – benefit analysis of household energy interventions at global and regional levels
    28. 28. Cost – effective analysis  This is a better tool than cost benefit analysis.  Benefit is expressed in terms of result achieved rather than to express in monetary terms. eg. Number of lives saved.  Two ways in which analysis can be done : A system which gives more units of effectiveness for a given rupee is more efficient. A system which enables the attainment of effectiveness at minimum cost in terms of rupees is more effective. 1. 2.
    29. 29. Cost – effective analysis  DDT was the cost effective method accepted for the vector control
    30. 30. A budget helps Want Need Budget can  Stay within a limit  Control  Forecasting  Delegate  Prioritise Wants, Organise Needs,  Within the realm of what we Can
    31. 31. Planning Programming Budgeting System (PPBS)  The system focuses on funding those projects that will bring the greatest progress toward organisational goals for the least cost  Basically a Program and Planning Budgeting System  It is a link between planning and programming covering it into annual budget format.
    32. 32. Planning Programming Budgeting System (PPBS)      Identification of goals and objectives for each major area of activity - Planning Analysis of the programs proposed to obtain organizational objectives - programming Estimation of the total costs for each project. Final analysis of alternative projects in terms of costs, expected costs, expected benefits, and expected project lives. Cost/benefit analyses are performed for each program a portfolio of projects is selected for funding. - Budgeting
    33. 33. Zero base budgeting  Zero budget approach was developed by Peter Phyrr  Defined as an operating, planning and budgeting process which requires each officer to justify his budget from zero level upwards  No one gets a budget that he cannot justify on year to year basis  Fresh justification of funds is required to run a programme
    34. 34. Zero Based Budgeting  It begins with identifying all the constituent tasks that are involved in implementing a project and working out the resources and funding required by each.  Provides the opportunity to create organisation level budgets by rolling up project budgets.  Create centralised project level budgets from their sub-project budgets
    35. 35. Benefits      Accuracy of the budgets for individual tasks Participation in the process leads to ownership and acceptance motivates managers to find cost effective ways to improve operations. For Project Managers : flexibility to define their project budgets independently For Financial Managers :ability to centrally review the total project budget/s
    36. 36. Zero base budgeting  Drawbacks  time-consuming  Justifying every line item can be problematic for departments with intangible outputs.  Requires specific training, due to increased complexity.  In a large organization, the amount of information backing up the budgeting process may be overwhelming.
    37. 37. Different Managemant techniques Highest • • • • • System analysis Statistical trends Cost Benefit analysis Cost Effective Analysis Programme Budgetting Middle • • • • • Statistical trends and forecasting Manpower planning Simulation Studies System analysis Cost Benefit analysis Information system and record linkage Lower • • • • Network analysis Work Study Behaviour Science Simulation studies
    38. 38. Man power planning  It is the process of systematically reviewing human resource requirements to ensure that the number of the employees matches the required skills. METHODOLOGY 1. Forecasting demand 2. Forecasting supply 3. Reconciling supply/demand 4. Monitoring manpower utilisation 38
    39. 39. 39
    40. 40. Model/simulation study   Model : is a representation of the construction and working of some system of interest. It is similar to but simpler than the system it represents.  A Simulation of a system is the operation of a model, which is a representation of that system.  Basic concept of management science in which there is symbolic representation of idealized situation.  It helps to understand how the factors in a situation affect one another.
    41. 41. Model/simulation study  An epidemiological model of typhoid fever was made to study transmission of infection at different levels.  Numerical values based on known evidence were assigned to parameters. Changes were introduced in some parameters to study the effect of mass vaccination and improvement in general health and sanitation on incidence of typhoid. Human papilloma virus vaccination programs reduce health inequity in most  scenarios: a simulation study(BMC 2012,12:935) a total number of 3,793,902 scenarios. In 63.9% of scenarios considered, vaccination would lead to a better outcome for a population or subgroup with that combination of parameters. Regardless of vaccine effectiveness and coverage, most simulations led to lower rates of disease.
    42. 42. ADVANTAGES  Advantages  highly valid  Easy to compare alternatives  Control experimental conditions  Can study system with a very long time frame DISADVANTAGES  Disadvantages  expensive  Difficult to summarize and statistically analyze
    43. 43. Information systems   1. 2. 3. 4. 4. 5. 6. Raw data when properly analyzed results in information and it is disseminated through the system known as information system Function of information system is Collection Classification It provides up to date, reliable, complete Transmission and timely information to managers at Storage various levels Retrieval Transformation Display of information
    44. 44. Information process Data collection Resources Data transmission Management feedback monitoring and evaluation Data processing Organizationalrules Data analysis Information for use in
    45. 45. Health Information System WHO proposes to categorize the health information system under five interrelated “subsystems”:  Epidemiological Surveillance (notifiable infectious diseases, environmental conditions, and risk factors)  Routine service reporting  Special programmes reporting systems (tuberculosis and leprosy control, MCH, school health)  Administrative systems (health care financing systems, health personnel systems, logistic systems)  Vital registration systems (births, deaths, and migratory movements)
    46. 46. Different Managemant techniques Highest • • • • • System analysis Statistical trends Cost Benefit analysis Cost Effective Analysis Programme Budgetting Middle • • • • • Statistical trends and forecasting Manpower planning Simulation Studies System analysis Cost Benefit analysis Information system and record linkage Lower • • • • Network analysis Work Study Behaviour Science Simulation studies
    47. 47. Network analysis   It is a general name given to certain specific techniques which can be used for the planning, management and control of projects. The basic principle of network analysis is to show diagrammatically the logical sequence in which different events necessary between the start and end point need to take place.
    49. 49. Critical path  Critical Path F, 15 CPM network represent activities H, 9 G, 17 A, 6 I, 6 B, 8 D, 13 J, 12 C, 5 E, 9 Longest path of the network is called critical path.
    50. 50. PERT    Programme Evaluation and Review Technique This is for more detailed planning and more comprehensive supervision Shown by an arrow diagram representing logical sequence in which events must take place.
    51. 51. Difference between PERT & CPM PERT     A probability model with uncertainty in activity duration Multiple time estimates For planning & scheduling research projects. Does not usually consider costs CPM     A deterministic model with well known activity time Single/fixed estimate time For construction projects & business problems. Deals with cost of project schedules
    52. 52. Methods of behaviour science    Organizational design Personnel management Communication
    53. 53. Organizational design  Organization is a group of people who all work towards some common goal  Organization behaviour : in a health setup like PHC or CHC, it is behaviour of health volunteers, honorary workers, health workers, supervisors and also panchayati raj institution  Organization must be suited to its objectives and the needs  In health sector, it should be designed to meet the health needs and demands of people.
    54. 54. Personnel management Skillful use of human resources 1. Delegation of power / authority 2. Proper methods of selection 3. Training and motivation 4. Division of responsibility 5. Elimination of ―square pegs in round holes‖ 6. Incentive for better work 7. Opportunities for promotion and professional advancement.
    55. 55. Communication   1. 2. 3. 4. 5. Communication is a process of transfer of information from a person or persons to others Elements Source of information Message or content of information Channel of information Receiver of information feedback
    56. 56. Communication barriers  1. 2. 3. 4.    Communication barriers Physiological -difficulty in hearing Psychological -level of intelligence, language Environmental -noise, invisibility Cultural - customs ,belief, religion Communication barriers are responsible for : Delay in regular reporting and notification and delay in compilation of statistics Delay in release of supplies and salaries
    57. 57. WORK STUDY  Work Study is the systematic examination of carrying on activities so as to improve the effective use of resources and to set standards of performance for the activities being carried out. (ILO)  It is the systematic study of work systems with the purposes of  Developing the preferred system and Method ( with lowest cost)  Standardizing this system and method  Determining standard time for the task  Assisting in training the worker in the preferred Method  Work Study is a Tool Of Productivity Enhancement.
    58. 58. Techniques Of Work Study METHOD STUDY it simplifies the job and develops more economical method of doing it. WORK MEASUREMENT Measure the quantity of work involved in the method selected and calculate a standard time for
    59. 59. Method Study  It is the systematic recording and critical examination of ways of doing things in order to make improvements.  STEP I : JOB/TASK/PROCESS SELECTION  Economic Considerations  Technological Considerations  Human Considerations  STEP II : RECORDING THE FACTS  STEP III : CRITICAL EXAMINATION  PURPOSE : for which the activity is done  PLACE : at ,, ,, ,, ,, ,,  SEQUENCE : in ,, ,, ,, ,, ,,  PERSON : by whom ,, ,, ,, ,, ,,  MEANS : by which ,, ,, ,, ,, ,,
    60. 60. Work Measurement   It is the application of techniques designed to establish the time for a qualified worker to carry out a task at a defined rate of working. THUS it determines how long it should take to carry out the work
    61. 61. Work Measurement
    62. 62. Other management techniques
    63. 63. Inventory control   Inventory Control is the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply. Inventory control  Helps in maintaining an optimum level of the all resource at least possible cost.  Determine appropriate levels of holding inventories, ordering sequence & the quantities, so that the total costs incurred are minimized.
    64. 64. Inventory control     ABC analysis VED analysis FSN analysis SDE analysis
    65. 65. Value analysis  Value is a broad term often used to denote cost and Price.  Value can be divided into the following classifications : Use or Functional Value:- the properties and qualities which accomplish a use, work or service.·  Cost Value :- The sum of labour, material and various other costs required to produce it.
    66. 66. Value analysis  VA is defined as systematic study of the function of a material, part , component to identify areas of unecessary costs that can be eliminated without impairing the capacity of the items. Benefits :   A reduction in cost of existing products or systems. Prevention of unnecessary cost in new products or systems.
    67. 67. Management by objectives (MBO)   Management by objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them. The essence of MBO is  participative goal setting,  choosing course of actions and  decision making.
    68. 68. Management by objectives (MBO)  Benefits Employees tend to have a clear understanding of the roles and responsibilities expected of them  Subordinates tend to have a higher commitment to objectives  Better communication and Coordination between superiors and subordinates   Drawbacks Setting up of targets is in reality not participatory but top management hand down targets Distribution of family welfare priority different districts in a State considering  Targets become targets to  past performance, special conditions like drought, unrest. The targets were then distributed among several sub district units on similar lines. The same cycle repeated in subsequent year.
    69. 69. Management by exceptions   Management by Exception is a "policy by which management devotes its time to investigate only those situations in which actual results differ significantly from planned results. The idea is that management should spend its valuable time concentrating on more important items (such as shaping the project's future strategic course).
    70. 70. Management by exceptions  Benefits  It reduces the amount of financial and operational results that management must review, which is a more efficient use of their time.  This type of management can be powerful when it is necessary to process lots of data in order to make managerial decisions.  Drawbacks  This policy of management result in myopic behavior.
    71. 71. Situational analysis   This method described as ‗where are we now‘, is the means by which a company can identify its own strengths and weaknesses as they relate to external opportunities and threats. It is an integral component of the management process to find out what the existing situation is, analyze the same, identify, which aspects needs changing, and then plan accordingly. For example, studies regarding Measles, immunisation and disease: situation analysis in a resettlement area of east delhi 1998 reveal one fifth of the children aged 12 months or above were not immunized against measles at all and coverage of 74%.
    72. 72. SWOT analysis  It involves identifying the internal and external factors that are favorable and unfavorable to achieve a objective.
    73. 73. SWOT analysis  Benefits  Source of information for strategic planning.  Helps in setting of objectives for strategic planning  Helps in identifying core competencies of firm  Drawbacks  Categorizing aspects might be very subjective  It may cause organizations to view circumstances as very simple which organizations might overlook
    74. 74. Logical Framework    The Logical framework (Logframe) is a method found useful for bringing about clarity in the process of planning, monitoring and evaluation. It compresses the entire programme being proposed in a summary format. The Log frame consists of a matrix of 16 cells
    75. 75. Conclusion To achieve the most without wasting the resources in experimentation there is need for devising and introducing techinques that bring maximum results with limited resources. MOTTO: The Right technique ,at the right place,at the right time, at the right cost, by the right methods. 
    76. 76. References      Management techniques – Dr. S.L Goel Epidemiology and management health care for all- Sathe WHO document on Modern Management techniques -1977 journal article BMC :Human papilloma virus vaccination programs reduce health inequity in most scenarios: a simulation study -2012 WHO Health research system analysis .pdf
    77. 77. Management Techniques THANKYOU Thank you