Management techniques

1. MANAGEMENT
TECHNIQUES
Dr. HAR ASHISH
JINDAL
JR

2. Contents






Definitions
Project v/s Programme
Need for management techniques
Classification
Management Techniques
Conclusion

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. 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. 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. Classificatio
n

7. LEVELS OF MANAGEMENT
Highest
Middle
level
Lower level

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. 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. Various Management
techniques

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. 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. Environment
Input(Man ,
Material ,
Money)
Interface(Interaction
between environment
and system)
Component
s(essential
Parts)
Output
Boundary
Interrelationship

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. system analysis in Problem
Solving
Systems Analysis
Systems Design

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. System analysis for ADR

18. Statistical methods for
management

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. 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. 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. 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. 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. 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. 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. 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. Indoor pollution
Cost – benefit analysis of household
energy interventions at global and
regional levels

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. Cost – effective analysis

DDT was the cost effective method accepted for the vector
control

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. 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. 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. 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. 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. 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. 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. 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. 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

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. 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. 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. 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. Information process
Data collection
Resources
Data transmission
Management
feedback
monitoring and evaluation
Data processing
Organizationalrules
Data analysis
Information for use in

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. 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. 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.

48. Network Analysis
STAFF
RECRUIT
ED
2 months
STAFF
TRAINE
D
4 months
START
PLAN
SERVIC
E
2 months
1 month
EQUIPME
NT
ORDERED
10 months
EQUIPME
NT
INSTALLE
D
1
month
START
PROVIDIN
G
SERVICE
TERMINAL
EVENT

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. 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. 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. Methods of behaviour science



Organizational design
Personnel management
Communication

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. 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. 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. 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. 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. 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. 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. 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. Work Measurement

62. Other management techniques

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. Inventory control




ABC analysis
VED analysis
FSN analysis
SDE analysis

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. 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. 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. 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. 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. 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. 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. SWOT analysis

It involves identifying the internal and external
factors that are favorable and unfavorable to
achieve a objective.

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. 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

76. 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.


77. 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

78. Management Techniques
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