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
-
There are four major factors in leadership called Leader, Follower, Communication, and Situation. The success of the leader is dependent on how the leader is effectively able to communicate and motivate followers to perform desired tasks using the appropriate leadership style best suited for the given situation. Interdependencies and dynamics of these four factors of leadership must be considered by a leader to be effective.
-
Team leadership theory is a recent leadership theory that does not discriminate between the leader and the other team members. The approach considers contributions from each team member to be critical for organizational success. This approach focused on the overall team effectiveness and team problems are diagnosed and action is taken to remediate weakness. This approach provides for taking corrective action when the leader deems necessary.
-
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.
-
Teams are part of the modern organizational culture. Whether you are a team leader or a team member, having a better understanding of how teams work, and being able to identify where the team is in the process, is a critical part of ensuring the team is ultimately successful. Start with the basics and understand what a team is and what role they play in an organization.
-
Tools for Developing Your Team
If a manager has too many weak spots in the talent of the team, the ability to empower the team members to independently execute the project is impaired. Assignments fall behind schedule or stretch out because the needed skills or knowledge are not in place when needed. To successfully execute important projects, hiring talented people, and increasing the talents of existing staff are most important.
-
Investment Theory of Creativity
Sternberg in the year 2006, proposed the investment and confluence theory focused on understanding creativity. According to the investment theory, creativity requires a confluence of six distinct but interrelated resources known as intellectual abilities, knowledge, styles of thinking, personality, motivation, and environment. It emphasizes that creativity is not about one thing, but about a system of things.
-
There are four characteristics of leadership that help us to understand the character of leadership as a concept. 1. Leadership is a process, 2. Leadership involves influence, 3. Leadership always occurs in a group context and 4. Leadership involves goal attainment. These are the four components that make up the character of the 'leadership' term and help us to define the leadership concept. All of these components of leadership have common characteristics.
-
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.
-
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.
-
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.
