Management Theory & Practices
“CONTEMPORARY APPROACHES”
I. QUANTITATIVE MANAGEMENT
Although Taylor introduced the use of science as management tool, but most organizations did not adopted the use of quantitative management until World War – II by military planners for defense & logistic problems.
The approach helps managers make decisions by developing the formal mathematical models of the in hand problems. Computers have facilitated the development of scientific quantitative methods.
EXAMPLES: - Statistical decision theory, breakeven analysis, simulation, for casting inventory modeling, etc.
Reasons of the limited use of approach:
Managers do not depend on the technique & use it only as supplement & a tool in decision making & the reasons are:
– Many managers will use results that are consistent with their experiences, intuition (sixth sense), and judgment and they may reject results that contradict their beliefs.
– Most managers have not been trained to use quantitative management tools.
– Finally many managerial decisions are non – routine & unpredictable.
KEY CONCEPTS
– Application of quantitative analysis to management decisions.
CONTRIBUTIONS
– Developed specific mathematical methods of problem analysis.
– Helped managers select the best alternatives among a set.
LIMITATIONS
– Models neglect non quantifiable factors.
– Managers not trained in these techniques & may not trust or understand the techniques, outcomes.
– Not suited for non routine or unpredictable management decisi ...