Evolution of Management Thought - Quantitative Theory of Management
The quantitative Theory of management emphasizes the use of mathematical and statistical techniques in management and focuses on finding right answers to managerial problems, which are solved through decision making. The theory is based on Operations Research as its main technique.
Quantitative Theory is also referred as mathematical; approach, decision theory approach, operations research approach and management science approach.
The theory came into focus during and after World War II. The critical exigencies of War necessitating the building of optimal solutions to militant and logistics problems, was sought to be solved through mathematical model building by inter-disciplinary scientists. They applied scientific research in their bid to find most suitable answers to problems of strategic and tactical military operations and optimal decisions about the deployment of military resources. Extensive application of Operations Research brought forth new techniques like Linear Programming, Queuing theory, Game theory, Probability theory, Sampling theory, critical path, Program evaluation and review technique, etc.
The theory stresses the importance of diverse decision situations and the means of perfecting them. It precludes thumb rules or acting through intuition, but recommends the process of optimal decision-making assembling accurate and reliable data with quantitative precision and perfection.
The salient features of the Quantitative theory are as under:-
a. Process of Management consists of a series of decision-making. The need therefore is for securing the best inputs for the most appropriate decisions.
b. The theory postulates at the development of a prototype decision situation, by presenting the variables in the form of a mathematical model. The model consists of a set of functional equations setting out the quantitative inter-relationship of the variables.
c. Best solutions to the model are secured, where the model is correctly formulated and
Quantitative Theory is also referred as mathematical; approach, decision theory approach, operations research approach and management science approach.
The theory came into focus during and after World War II. The critical exigencies of War necessitating the building of optimal solutions to militant and logistics problems, was sought to be solved through mathematical model building by inter-disciplinary scientists. They applied scientific research in their bid to find most suitable answers to problems of strategic and tactical military operations and optimal decisions about the deployment of military resources. Extensive application of Operations Research brought forth new techniques like Linear Programming, Queuing theory, Game theory, Probability theory, Sampling theory, critical path, Program evaluation and review technique, etc.
The theory stresses the importance of diverse decision situations and the means of perfecting them. It precludes thumb rules or acting through intuition, but recommends the process of optimal decision-making assembling accurate and reliable data with quantitative precision and perfection.
The salient features of the Quantitative theory are as under:-
a. Process of Management consists of a series of decision-making. The need therefore is for securing the best inputs for the most appropriate decisions.
b. The theory postulates at the development of a prototype decision situation, by presenting the variables in the form of a mathematical model. The model consists of a set of functional equations setting out the quantitative inter-relationship of the variables.
c. Best solutions to the model are secured, where the model is correctly formulated and