Cost -benefits approach - Types of Approaches//School management B.Ed Notes

Types of management approaches

Management plays a crucial role in the making of any organisation. There is a need for adopting various approaches and techniques in the process of educational planning so as to arrive at the most realistic planning model to maximise the output.

There are different approaches to educational planning. Each planning approach has its unique features.

Few important approaches of educational management are

• Manpower approach
• Cost benefit approach
• Social demand approach
• Social justice approach
• Rate of return approach
• Intra educational extrapolation approach

Cost -benefits approach

Cost Benefit Analysis in education is a technique to measure the life time earnings as well as non- monetary returns from different levels of education

It involves an attempt to estimate the total cost of investment in education, in terms of alternative opportunities foregone either by society as a whole, or by the private individual.

• A cost-benefit analysis (CBA) is the process used to measure the benefits of a decision or taking action minus the costs associated with taking that action.

• CBA is a measure of profitability of education as an investment for society, or for individual student or his / her family

• A CBA involves measurable financial metrics such as revenue earned or costs saved as a result of the decision to pursue a project.

• A CBA can also include intangible benefits and costs or effects from a decision such as employees’ morale and customer satisfaction.

CBA - Purpose:

1.   To determine which program or intervention provides the greatest benefits at the lowest cost

2.   To compare the alternative ways to achieve the objectives of education.

3. To estimate the cost of alternative policies and of educational reforms and innovations

4. to project future level of educational cost

The Cost-Benefit Analysis Process

A cost-benefit analysis should begin with compiling a comprehensive list of all the costs and benefits associated with the project or decision.

The costs involved in a CBA might include the following:

• Direct costs – costs that are directly visible. Ex: tution fees and other charges, purchases of books, uniforms, transport...

• Indirect costs- costs that are not directly visible, opportunity costs such as alternative investment, value of time....

Advantages Of CBA

Focuses on data-driven decision-making

• Cost-benefit analysis often focuses on facts and data to help companies and businesses make decisions more easily and free them from personal biases or preferences

Discovers hidden costs

• Analyzing the total cost that a project will create can help companies discover any hidden costs or expenses they might not have known about previously.

• The cost-benefit analysis can also help companies discover hidden benefits, such as an increase in employee satisfaction, which might increase productivity and quality of work.

Makes some decisions easier

• The process often simplifies a lot of decisions for companies and businesses because they can clearly see the correlation between the expenses and project results.

Provides a competitive advantage

• Cost-benefit analysis can help companies develop an advantage over competing businesses because it can help them quickly create innovative ideas and determine how they can stay relevant in the current market

Using cost-benefit analysis can also help them avoid any projects that might provide them with various challenges or issues, causing a loss in profit or competitiveness.

Cost-benefit analysis disadvantages:

Unpredictable variables

• Though cost-benefit analysis can help companies make better-informed decisions, it can sometimes be challenging for them to predict certain variables, such as customer demand and material prices.

Not as effective for long-term projects

• Cost-benefit analysis is a great tool for companies to use for shorter projects, but it can become a little risky when using it for long-term projects due to unpredictable variables that have a higher probability of changing over time

Requires extensive data

• If a company doesn't have enough data for the analysis, it can lead to false information and possibly cause businesses additional challenges in the future.