Management Science Theory
Management Science theory is defined as “an application of the scientific method to problems arising in the operations of a system and the solution of these problems by solving mathematical equations representing the situation.”
Actually, the management science theory developed only after World War Il. Initially, some of the mathematical techniques that were used for solving war logistic problems were drawn for solving industrial problems. Some of these techniques are; linear programming, simulation, sampling theory, probability theory, etc. The credit to the development of these techniques can be given to the Operations Research teams of the USA and UK. The theory is popular as Mathematical, quantitative, and operational research. The characteristics of management science theory are as mentioned below;
a. The management science techniques can deal with an analysis of a large number of variables and improve the effectiveness of a manager’s decisions.
b. The management science techniques are suitable for the analysis of quantifiable factors like; inventory level, plant capacity, production quantity, etc.
c. The mathematical models like game theory, simulation, and sampling theory can be used to represent reality and develop an understanding of the problem.
d. The use of computers helps to analyze sophisticated managerial problems and different alternatives of solutions are well obtained.
The use of management science theory has grown largely among large and complex organizations for solving different problems related to inventory management, deploying employees, planning plant facility and facility layout, sales forecasting, etc.
Contributions of Management Science theory
1. This has helped in orderly thinking in management for achieving higher accuracy of results.
2. The mathematical tools have provided more exactness in solving managerial problems.
3. This approach is a fast developing area in analyzing and understanding management.
4. The mathematical models help to break down problems of complex nature and large-scale elements into smaller parts for diagnosis and manipulation.
Limitations of Management Science Theory
1. It doesn’t provide the answer for total managerial problems.
2. All managerial activities are not quantifiable as individuals are involved and governed by many irrational factors.
Also Read: OB System | Organizational Behaviour
3. High experts possessing technical skills are required to formulate this theory in an organization.
4. This theory is costly and uses sophisticatéd methods. Small organizations can’t use this theory.
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