Quantitative

Management Theory
Presented by: Kelvin Benz Mendez
 Definition
A theory that
involves the use of
quantitative
techniques to
improve decision
making.
 BRANCHES OF
QUANTITATIVE
MANAGEMENT THEORY
Management
Science
any application of
science to the study of
management.
 Operations
Management
Operations management
(OM) is the administration
of business practices to
create the highest level of
efficiency possible within
an organization.
 Management
Information
Systems
Information systems allow
for more efficient creation,
management, and
communication of
information across the
organization as well as in
the outside environment.
 Theory of Probability,
 uantitative
Q Sampling Analysis,

Management
Correlation / Regression Analysis,
Time Series Analysis,

Techniques
Ratio Analysis,
Variance Analysis,
Statistical Quality Control,
Linear Programming,
Game Theory,
Network Analysis,
Break-Even Analysis,
Waiting Line or Queuing Theory,
Cash-Benefit Analysis
 POSITIVE AND NEGATIVE
ASPECTS OF QUANTITATIVE
MANAGEMENT THEORY
 It establishes relationships amongst quantifiable
variables of decision-making situations and
facilitates disciplined thinking.
Mathematical models help to derive precise and
accurate results by analyzing complex statistical
data.

Benefits It is useful in areas of planning and control where

data is available in quantitative terms. Decisions
are based on data and logic rather than intuition
and judgment.
Computer-based Statistical packages are available
which facilitate analysis of qualitative data also
(dummy variables are used to analyze the non-
quantifiable data).
 Mathematical models cannot fully account for individual behaviors
and attitudes.
The time needed to develop competence in quantitative
techniques may delay the development of other managerial skills.
Negatives Mathematical models typically require a set of assumptions that
may not be realistic in an industrial setting.
Among the different functions of management, its use is limited in
organizing, staffing and directing. It applies more in planning and
control functions.
It does not eliminate risk but only attempts to reduce it.
It assumes that all the variables affecting the problem can be
quantified in numerical terms which is not always true.
Decisions are often based on the availability of limited
information.
 THE FUTURE BELONGS
TO THOSE WHO BELIEVE
IN THE BEAUTY OF
THEIR DREAMS.
Eleanor Roosevelt