Management Approach

A Quantitative Approach & Modern Approach To Management Presented By:Biswajit Diksha Dilip Iftakhar Prabhava Ram

Topics Quantitative Approach The Systems Approach The Contingency Approach Assessment

Quantitative Approach Quantitative Approach Also called operations research or management science Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems

Basic Characteristics Primary Focus on Decision making Based on economic criteria Mathematical Models: Statistics, optimization models, information

models, and computer simulations Dependency on Computers

Quantitative Techniques Linear Programming: Deals with situations

which require need for limited resources utilization to best advantage Queuing Theory: Deals with how to manage

different customer for different services.

• In LP ,we either

maximize (e.g. Profit) or minimize (e.g. cost) an Objective Function under given Constraints • All factors involved have • linear relationships, i.e. doubling of labour will reduce the time put.

• A manufacture produces 2 products A and B, whose profits are Rs. 3 and Rs. 4 per Unit respectively . • Production data Per Unit A

Machining hours 4

Labour hours 4

Material (kg) 1

B

2

6

1

Total available

100

180

40

•Due to trade restrictions A can not be produced more than 20 Units in a week and due to agreement with customer at least 10 units of B must be produced. • Let quantity of A and B be X and Y respectively in a week Objective Function is Maximize 3X + 4Y Subject to constraints 4X + 2Y < 100 ; 4 X + 6Y < 180 ; X+Y < 40 X < 20 , Y > 10

Graphical Solution to LP Maximisation problem

X Y >. 10 4X + 6 Y <

60 50

180

X + Y < 40

40

Optimal solution - X =15 , Y = 20 Max. profit = 3x15 + 4x 20 = 125

30

X < 20

20 10 0

4 X + 2 Y < 100 10

20

30

40

50

60

70

Y

Contributions of Quantitative Approach In Production ManagementFocus is on manufacturing technology and the

flow of material in plants. In Operation Management Focus is on organization such as hospitals, banks, government & the military.

Limitations of Quantitative Approach Despite its potential impact, this approach

has certain limitations:Does not deal with the people aspect of an organization!!! Unfamiliar with advanced quantitative tools!!

The Systems Approach System Defined A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Basic Types of Systems Closed systems 

Are not influenced by and do not interact with their environment (all system input and output is internal)

Open systems 

Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments

Example:

The Operating Model in Organizational System

Input

Transformation

Feedback

Output

Assessment of Quantitative & Systems Approach It can be used to improve manager’s ability to

deal with human resources issues. Sophisticated staffing models can be used to map the flow of people into and out of an organization. We are always ready to accept changes. We can increase the productivity by modifying the quantitative and system approach.

The Contingency Approach Contingency Approach Defined Also sometimes called the situational approach. There is no one universally applicable set of

management principles (rules) by which to manage organizations.

Organizations are individually different, face

different situations (contingency variables), and require different ways of managing.

Contingency Viewpoint

Popular Contingency Variables: External Environment Technology Individual

Assessment of Contingency Approach Useful because of its diagnostic approach,

which clearly departs from one of the best approach of traditionalist. It is more flexible, although draw heavily from other approaches. Allows managers to apply principles from those approaches selectively and appropriately.

Questions……….?????