A comparative management is a method of choosing, handling, and managing the resources in various economic activities or markets. Companies, government agencies, and private individuals all make use of the process of what is comparative management. The method aims to maximize the productivity and efficiency of an economic enterprise. What is comparative management can be defined as the ability to assess and monitor the price differences between two or more economically relevant inputs. This enables the company to choose the most optimal production, marketing, and finance policies.
If we are to look at what is comparative management, then we should first define it. We could say that what is comparative management is a method of comparing different entities within an organization, products, or a situation. If we are to compare apples and oranges, the best choice will be the one which contains fewer additives and is closest to the true thing. The same thing could be said for human health. Some people may consider the human body to be completely without any kind of additives, while others may believe that it contains thousands upon thousands of such additives.
Let us take an example of what is comparative management in its simplest form. Suppose you would like to buy a new car. You would first have to compare the fuel economy of a sedan and a truck; then the payment, and interest rates. You would also have to take into account other costs such as insurance, licensing, registration, and maintenance.
In what is comparative management, you would then want to compare the features of both cars. You would have to consider the model, the engine power, the size, and most importantly, the price. You would not want to pay too much for a car, but at the same time, you would not want to pay too little either. Thus, the feature analysis would help you arrive at the best compromise.
Now let us say that you have decided to take this concept further. What you need to do is understand what is comparative in the first place. Basically, it refers to the process of comparing two or more items or models in order to arrive at a decision or a conclusion. Thus, if you want to decide between two different kinds of footwear, you would first have to compare the prices and quality between the two. You would also have to compare different brands.
If you have successfully understood what is comparative management, you will not need any further explanation. The same would hold true for the concepts like quality, pricing, and brand. All these things can be compared using the same yardstick. That yardstick is known as cost. Thus, if you want to choose the best shoes for yourself, you would first have to determine the cost of buying good quality shoes.
Thus, in what is comparative management, you are basically trying to control costs. Now, you should understand that you cannot always control costs, and the only way you could get a perfect cost control is by avoiding cost. In what is comparative management, you will need to keep your eyes and ears open. If you keep on comparing apples and oranges, you might miss the opportunity of getting an advantage. Thus, you have to remember always that this concept is not restricted within the realm of products.
When we talk about what is comparative management, we are actually talking about using the same yardstick when you compare two different things or models. Thus, it means that you should try to get the most affordable model from a manufacturer while you still can. This is because the most expensive model is not necessarily the best option. Thus, you have to keep all these aspects in mind, and you will surely end up with something that makes sense. When you finally understand what is comparative management, you will surely know where to start.