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 *ƒ²*ƒ”€š 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:
*ƒ²*ƒ”€š 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.
*ƒ²*ƒ”€š Most managers have not been trained to use quantitative management tools.
*ƒ²*ƒ”€š Finally many managerial decisions are non *ƒ²*ƒ”€š routine & unpredictable.
KEY CONCEPTS
*ƒ²*ƒ”€š Application of quantitative analysis to management decisions.
CONTRIBUTIONS
*ƒ²*ƒ”€š Developed specific mathematical methods of problem analysis.
*ƒ²*ƒ”€š Helped managers select the best alternatives among a set.
LIMITATIONS
*ƒ²*ƒ”€š Models neglect non quantifiable factors.
*ƒ²*ƒ”€š Managers not trained in these techniques & may not trust or understand the
techniques, outcomes.
*ƒ²*ƒ”€š Not suited for non routine or unpredictable management decisions.
II. ORGANIZATIONAL BEHAVIOR
During the 1950 a transition [change] took place in the human relations approach. Scholars
begin to recognize that workers productivity & organizational success are based on more
then the satisfaction of economic or social needs. The revised prospective, known as
organizational behavior, studies & identifies management activities that promote employee
