11 Important Management Techniques:
1. Organizational Analysis:
It helps in critical examination of an organization with a view to evolving a systematic and harmonious arrangement of work with reference to its objectives.
2. Work Study:
It is a generic term for those techniques particularly method study and Work Measurement which are used in the examination of human work in all its contexts, and which lead systematically to the investigation of all the factors’ which affect the efficiency and economy of the situation being reviewed in order to effect improvement.
It is generally used to describe the activities of groups of people in government or other public bodies or in private forms who are asked to advise administrators or managers on the question of organization and methods so as to increase the efficiency of work for which they are responsible, either by providing a better service, or a cheaper one or both.
4. Management Information System:
This technique is tailored to provide such information to the decision-makers which are most relevant, accurate, complete, concise, timely, economic, reliable and efficient.
A good information system provides data for monitoring and evaluating the programmes and gives the requisite feedback to the administrators and planners at all levels.
5. ABC Analysis:
It is that technique which would enable a busy executive to chase those files ardently which would quicken the wheels of administrative machinery.
By arranging his work into an order of priorities, he can decide on which items to concentrate first, which others to deal later and yet which others to delegate to his assistants. When done more systematically and in quantitative terms, this system of building up priorities or work is called as the ABC analysis.
6. Network Analysis (PERT & CPM):
Both the Critical Path Method (CPM) and Programme Evaluation and Review Techniques (PERT) emphasis efficient performance and temporal dimensions of a project.
In the simplest form of PERT, a Project is viewed as a tool system and consists of setting up a schedule of dates for various stages an exercise of management control, mainly through project status reports on its progress.
The CPM is basically a technique to reduce the time required to implement a project. By breaking the project into activities that must be undertaken for its implementation and by determining their time sequence, it is possible to isolate the most critical activities in the project and to compute the critical activities in the project and to compute the critical path schedule for their implementation. Network planning provides the basis for both CPM and PERT.
7. Cost Benefit Analysis:
This technique is designed to consider the social costs and benefits attributable to the project. The benefits are expressed in monetary terms to determine whether a given programme is economically sound, and select the best out of several alternate programmes.
Its advantage lies not in making decision making simpler, but in its possibilities for systematic examination of each part of a problem in hand, for putting diverse decisions on a logical sequence.
8. Cost Effective Analysis:
It is a more promising tool than Cost Benefit Analysis; It is similar to the latter except that benefit, instead of being expressed in monetary terms, is expressed in terms of results achieved.
9. Electronic Data Processing:
The rational in using this technique is to reduce the manpower required, the time taken for a given process and to reduce the possibility of error.
10. Performance Budgeting:
Performance Budgeting not only correlates to physical and financial aspects of every programme or activity but also aims at improving budget formulation, review and decision making at all levels of management.
In the financial management this technique has greater use. There are more than hundred ratios available.