Management and Administration Flashcards
Cost Benefit Analysis
Estimates the total monetary value, costs and benefits of a project. Used for public projects such as highways and other public facilities. Jules Dupuit 1848 (French). Became common as a result of Federal Navigation Act of 1936.
Cost Effectiveness Analysis
Method for selecting among competing projects when resources are limited. Developed by military. Cost Effectiveness Ratio (CE Ratio) (cost of new strategy-cost of current practice)/(effect of new strategy-effect of current practice)
Net Present Value
Net monetary value of a project, discounted to today’s present value. Need to know years of the project’s lifespan, quantified monetary benefits, monetary costs, and interest rate. Alternative is to calculate an internal rate of return. In this case, the project’s net present value is zero and the interest rate is blank. If the calculation results in an interest rate that is greater than the available market interest rate, then the project would be financially beneficial.
Goals Achievement Matrix (GAM)
Comprehensive way to evaluate a project. Consists of a project evaluation matrix that includes competing project in rows and the evaluation criteria in columns. Eval criteria based on stakeholder grps that may be impacted by the costs or that may receive benefits. The matrix shows the anticipated attainment of a project’s goals and the assignment of accomplishing a goal to a group.
Critical Path Method
A project analysis tool that generates a “critical path” through the project tasks. Each project task has a known amount of time to complete and cannot be completed before the previous one is completed. The longest pathway is the critical pathway. good for large-scale project.
Program Evaluation and Review Technique (PERT)
Scheduling method that graphically illustrates the interrelationships of project asks. A good choice when precise time estimates are not available for project tasks. The US Navy developed in the 1950s. Now widely used in the defense industry. Steps:
- ID specific activities and milestones
- Determine the proper sequence of the activities
- Construct a network diagram
- Determine the critical path
- Update the PERT char as the project progresses
Usually uses project management software. Work when a project is of a large-scale.
Linear Programming
Method that attempts to find the optimum design solution for a project. Takes a set of decision variables, within constraints, and generates and optimum design solution.
GANTT Chart
Charles Gantt 1917. Focuses on the sequence of tasks necessary for project completion. Usually shows dependency, where one task cannot begin until another is completed.
Vertical/Hierarchical Structure
Pyramid. Every employee is subordinate to someone else within the org. except at the very top. Advantage is employees will have a clear sense of leadership within the org and their level of responsibility on each task and project. Promotional opportunities to move up. Employees might narrow their field and develop expertise in one area, more specialists than with flat structure. Departmental loyalty. Disadvantage is that departments may not communicate well and rivalries can develop. Tends to be more bureaucracy, which can slow down client responsiveness. Costs an also be higher b/c more mgmt personnel.
Horizontal/Flat Organization
Has few or no levels of management between management and staff level employees. Employees are less supervised and have increased involvement in the decision-making process. Provides employees with a greater level of responsibility. Removes excess layers of management, can increase efficiency, reduce costs, speed up communication. Decision-making more streamlined. Disadvantage is that employees can lack a clear sense of directive or job duties. Employees tend to be generalists rather than developing a deep knowledge of key subject areas. There may be power struggles over who has decision-making authority, and management might avoid new opportunities in an effort to keep their flat structure intact. Larger organizations have a hard time with flat structure.
Matrix
Orgs encourage interdisciplinary approaches to problem-solving. Difficult to manage and can be ineffective for large organizations. Both vertical and horizontal chains of command might form. with fewer formal rules. Sometimes causes confusion, esp if there are dual lines of authority.
Strategic Planning
Used to guide an organization in determining its future. Strategic planning sets goals, objectives, and policies for reaching the set of objectives. Short-term - usually 5 or fewer years, w/ specific objectives. 8 elements:
1) Analyze the community’s or org’s needs
2) ID results - determine what long-term objectives to pursue
3) Admit uncertainties - analyze SWOTs relating to objectives
4) Involve strategic stakeholders
5) Develop and evaluate alternatives
6) ID role of the city
7) Develop a funding policy
8) Evaluate performance
Results Oriented Management and Accountability (ROMA)
Benchmarks - performance data used for comparative purposes.
Impacts - direct or indirect effects or consequences of achieving program goals
Outcome indicators - describe observable, measurable characteristics or changes that represent achievement of an outcome.
Inputs - resources a program uses to achieve objectives.
Measures - quantitative or qualitative, objective or subjective. The particular form of measurement used is dependent on the objective, availability of opportunities for measurement, and the cost of the measurement process.
