Mathematical school
- 1. THE MATHEMATICAL OR QUANTITATIVE SCHOOL Presented by: Niraj Kumar Sharma MBA Gen. Sec.- A Roll No. 21
- 2. HISTORY During World War II, mathematicians, physicists, and other scientists joined together to solve military problems. The quantitative school of management is a result of the research conducted during World War II. Scientific and technological developments and invention of computers have brought management and mathematics close to each other which were more or less poles apart.
- 3. DEFINITION The quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making. To define precisely we can say that “Body of management thought that seeks to combine classical management theories and behavioural science through the use of elaborate mathematical models.”
- 4. QUANTITATIVE TECHNIQUES USED Sampling Linear Programming Decision Theory Correlation Game Theory Index numbers Time series analysis PERT & CPM Statistical quality control charts Inventory models And many more…….
- 5. CONTD…. Mathematical models do help in systematic analysis of problems, but models are not substitute for sound judgements. Drucker expresses doubts on whole of the quantitative movement and deplores its technocratic aspect. Ex. Medicine
- 6. BRANCHES Various branches of mathematical school are: Management science Operations management Management information systems Systems management theory
- 7. MANAGEMENT SCIENCE The management science school emerged to treat the problems associated with global warfare. Today, this view encourages managers to use mathematics, statistics, and other quantitative techniques to make management decisions. Managers can use computer models to figure out the best way to do something — saving both money and time. Managers use several science applications. Mathematical forecasting helps make projections that are useful in the planning process. Inventory modelling helps control inventories by mathematically establishing how and when to order a product. Queuing theory helps allocate service personnel or workstations to minimize customer waiting and service cost.
- 8. OPERATIONS MANAGEMENT Operations management is a narrow branch of the quantitative approach to management. It focuses on managing the process of transforming materials, labour, and capital into useful goods and/or services. Operations management today pays close attention to the demands of quality, customer service, and competition. The process begins with attention to the needs of customers: What do they want? Where do they want it? When do they want it?
- 9. MANAGEMENT INFORMATION SYSTEM Management information systems (MIS) is the most recent subfield of the quantitative school. A management information system organizes past, present, and projected data from both internal and external sources and processes it into usable information, which it then makes available to managers at all organizational levels. The information systems are also able to organize data into usable and accessible formats. As a result, managers can identify alternatives quickly, evaluate alternatives by using a spreadsheet program, pose a series of “what-if” questions, and finally, select the best alternatives based on the answers to these questions.
- 10. SYSTEM MANAGEMENT THEORY The systems management theory has had a significant effect on management science. A system is an interrelated set of elements functioning as a whole. An organization as a system is composed of four elements: Inputs — material or human resources Transformation processes — technological and managerial processes Outputs — products or services Feedback — reactions from the environment In relationship to an organization, inputs include resources such as raw materials, money, technologies, and people. These inputs go through a transformation process where they're planned, organized, motivated, and controlled to ultimately meet the organization's goals. The outputs are the products or services designed to enhance the quality of life or productivity for customers/clients. Feedback includes comments from customers or clients using the products. This overall systems framework applies to any department or program in the overall organization.
- 11. CONTD…. Systems theory may seem quite basic. Yet decades of management training and practices in the workplace have not followed this theory. Only recently, with tremendous changes facing organizations and how they operate, have educators and managers come to face this new way of looking at things. This interpretation has brought about a significant change in the way management studies and approaches organizations. The systems theory encourages managers to look at the organization from a broader perspective. Managers are beginning to recognize the various parts of the organization, and, in particular, the interrelations of the parts. Contemporary system theorists find it helpful to analyze the effectiveness of organizations according to the degree that they are open or closed.
- 12. CONTD…. The following terminology is important for understanding of the systems approach: An organization that interacts little with its external environment (outside environment) and therefore receives little feedback from it is called a closed system. An open system, in contrast, interacts continually with its environment. Therefore, it is well informed about changes within its surroundings and its position relative to these changes. A subsystem is any system that is part of a larger one. Entropy is the tendency of systems to deteriorate or break down over time. Synergy is the ability of the whole system to equal more than the sum of its parts.