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Methodology

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A simple definition of methodology is something like a way of getting from here to there
A dictionary definition of methodology is a system of methods used in a particular area of study or activity

This is a very brief guide.  For more in this area, see:

the history and development of ELT which includes much of what follows here and a good deal more
the in-service section guides which consider a range of methodologies separately
how learning happens which covers some learning theory
first- and second-language acquisition which considers differences and similarities
second-language acquisition theories which looks at how second languages are learned or acquired

There are two common ways to define methodology in English Language Teaching and, graphically, this is how they look:

methodology 

The left-hand set was developed by Anthony in 1963.  The right-hand set was developed from Anthony's definition later and appears in Richards and Rogers, 2001.  Briefly:

Approach
For Anthony, an approach was simply a set of principles or ideas about the nature of language learning.
For Richards and Rogers it was similar but explicitly divided into theories of what language is and theories of how learning a foreign language happens.
The second of these definitions has the advantage of being quite explicit.
Method or Design
In this section are lesson designs such as Present-Practice-Produce or Test-Teach-Test.  Those are not methods, they are ways of structuring lessons within methods.
For Anthony, method described the plan for the presentation of language which is consistent with the approach.
Richards and Rogers' concept of design is somewhat broader and covered the practical implications in the classroom: syllabus design, activities and the roles of teachers and students.
These are not all that different but again, the latter one is more explicit.
Technique or Procedure
Technique, for Anthony, was just any teaching trick or way of doing something in the classroom such as eliciting, approaching a reading text, encouraging authentic speaking, drills and so on.
For Richards and Rogers, too, the term procedure refers to what we see happening in the classroom when a particular approach and design are implemented.

It actually doesn't matter all that much which breakdown you accept.  Both are fairly arbitrary and subjective ways of breaking down a complex area.


practice

Methodology in practice

It is worth pointing out that not all methodologies will fit neatly into the categories above.
For example, Communicative Language Teaching, the current dominant methodology, has a good theory of language but little to say concerning a theory of learning.  Some earlier methodologies such as Situational Language Teaching were similarly deficient but some, audio-lingualism, for example, had very clear theories both of what language actually is and how people learn languages.

The extent to which, if at all, the various models and concepts of language and learning actually reflect reality is, of course, quite another matter.

It is, however, often quite possible to work backwards from what is observed in the classroom (techniques and procedures) and deduce the approach a teacher favours or to work from the materials an institution uses (the method or design) to see what principles (the approach) the institution is favouring.  The Delta examination, e.g., explicitly asks you to do that.

If you yearn for more in this area, follow the links at the top.


References:
Anthony, EM, 1963, Approach, Method, and Technique, ELT Journal (2): 63–43
Richards, J, and Rodgers, T, 2001, Approaches and Methods in Language Teaching, Cambridge: Cambridge University Press