Quantitative Theory of Management
The quantitative management approach is given by the mathematical school that recommends the use of computers and mathematical techniques to solve complex management issues and assist in the managerial decision-making process. Managers observe historical quantitative relationships and use quantitative techniques such as statistics, information models, and computer simulations to improve their decision making.
Quantitative Approaches to Management Theory
During World War II, the U.S and the U.K army brought together business managers, government officials, and scientists and took their help to decide on the best way to utilize the existing resources. These experts from different domains and areas used some of the mathematical and statistical approaches devised by Taylor and Gantt to solve these logistical problems. This is how the quantitative-based management perspective emerged.
The quantitative approach to management includes the application of statistics, optimization models, information models, and computer simulation to assist in the managerial decision-making process. More specifically, this approach focuses on achieving organizational effectiveness through the application of mathematical and statistical concepts.
The three main branches of the quantitative approach are:
- Management Science,
- Operations Management
- Management Information System
Management Science:
The management science approach stresses the use of mathematical models and statistical methods for decision-making. Various mathematical tools like the waiting-line theory or queering theory, linear programming, the Program Evaluation Review Technique (PERT), the critical path method (CPM), the decision theory, the simulation theory, the probability theory, sampling, time series analysis, etc., are used in management science approach to increase the effectiveness of managerial decision-making.
Management science techniques are widely used in the following areas.
- Capital budgeting
- Cash flow management
- Production Scheduling
- Developing Product Strategies
- Human resource planning
- Inventory Optimization
Operations Management:
Operations management is an applied form of management science. It deals with the effective management of the production process and the timely delivery of an organization's products and services. Operations managers make use of tools like forecasting, inventory analysis, materials requirement, planning systems, networking models, statistical quality control methods, and project planning and control techniques.
Operations management is primarily used in the following areas:
- Inventory Management
- Work Scheduling
- Production Planning
- Facilities Location and design
- Quality Assurance
Management information systems (MIS):
A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. Management information systems focus on designing and implementing computer-based information systems for business organizations. In simpler terms, the MIS converts raw data into information and provides the required information to each manager at the right time in the needed form.
Businesses use management information systems to increase the value and profits of the business. MIS has the capability of providing timely and appropriate information allowing the managers to make effective information-based decisions.
Suggested Reading and Resources
Related Links
You May Also Like
-
Behavioral Approach to Management
The behavioral management theory had a profound influence on management by focusing on understanding the human dimensions of work. It is also called human relations movement as behavioral theorists focused on managing productivity by understanding factors of worker motivation like their needs and expectations, personality, attitudes, values, group behavior, conflict, and group dynamics. It advocated the use of psychological techniques to motivate employees.
-
The ten most important qualities that define a good leader are self-awareness, interpersonal and communication skills, ethical values, organizational consciousness, self-confidence, adaptability and flexibility, imagination and creativity, focus & result-orientation, continuous self-development and accountability and ownership for his actions. These ten qualities of leadership every good leader should possess to a certain extent and must continually strive to develop them.
-
In this study of power, Raven identified five bases of power as coercive, reward, legitimate, referent, and expert. The 5 Types of Power can help you decide when it is appropriate to use a particular type of power in important situations. Leadership involves authority and it is very important for leaders to understand what type of power they're using.
-
Modern Approaches to Management
The modern approaches to management look at organizational management in the current context. They take a holistic approach and look at organizations as a collection of interrelated parts influenced by both internal dynamics and also the larger external environment. These modern management theories have played a significant role in the evolution of management studies.
-
The concept of management refers to the process of planning, organizing, staffing, directing, coordinating, and controlling to achieve organizational goals. It is the management of human, physical, financial, and other valuable resources of the organization in an effective and efficient manner to achieve business objectives.
-
Emergent leadership occurs when a group member is not appointed or elected as leader, but rather that person steps up as the leader over time within-group interactions. Have you ever faced challenges in getting accepted into your new role of position as a leader? Groups don't automatically accept a new "boss" as a leader. Emergent leadership is what you must do when taking over a new group. Learn more about emergent leadership.
-
In today's business world, proficiency in management skills is essential for career growth and success. Managerial skills can be defined as attributes or abilities that are essential for every leader and manager to succeed and fulfill specific tasks expected from them by the organization.
-
Quantitative Theory of Management
The quantitative management approach is given by the mathematical school that recommends the use of computers and mathematical techniques to solve complex management issues and assist in the managerial decision-making process. Managers observe historical quantitative relationships and use quantitative techniques such as statistics, information models, and computer simulations to improve their decision making.
-
Frederick Winslow Taylor started the “Scientific Management Movement”, and attempted to study the work process scientifically. Scientific management, also called Taylorism, was a theory of management that analyzed and synthesized workflows. It is a system for increasing the efficiency of manpower to its maximum potential and streamlining production to improve efficiency. This article explores this theory in more detail.
-
The best career choices are ones that match your values. Each person has several values that are important to him. These values are highly personal and knowing them provides a clearer sense of what's most important to you in your life and career. Career values are the beliefs you consider important from a work standpoint. Values help you understand what you want from a job? Explore a few examples of work values that can influence career path and job satisfaction.
