MO DULE 3

EVOLUTION OF
MANAGEMENT SC IENCE

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MGT1NEW-Management Science

MELANIE A. ABIENDO, MBA

 College of Accountancy
Mgt1new- Management Science

Module 3: Evolution of Management Science

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Development Team of the Module

Writer: MELANIE A. ABIENDO, MBA

Instructor

Management Team

Chairpersons: REINALDA I. MAS, CPA, MBA

Dean, College of Accountancy

FRANKLIN L. SORIANO, Ph.D.

Vice President for Academic Affairs

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MELANIE A. ABIENDO, MBA

 This module provides you additional information that will help you enrich your
knowledge on how the concept of management science evolved. It covers two (2) topics that a
management student ought to understand:
1. History of Operation Research
2. Evolution of Management Science

I know that you are already excited to get started; however, there are some tips that you
have to remember so that you will get the most from this module all you need to do are the
following:

1. Begin by reading and understanding the learning objectives.

2. Take the pre-test/assessment before proceeding to the discussion proper. The
test can give you an idea of how much time you will allot in each lesson.
3. Follow the directions and/or instructions in the activities diligently.
4. Answer all the given reading check and short activities.
5. Read carefully the discussion section. It contains important notes or basic
information that you need to know.
6. You must be able to apply in real- life situation what you learned in the
experiential activity.
7. Answer the post-test so that you will know how much you have learned from
the lessons.
8. Each lesson also provides you with references for your guide. They can be of
great help. Use them fully.

This module should be completed within a week.

If you set an average of 1 hour per day, you should be able to complete the module
comfortably by the end of the assigned week.

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MELANIE A. ABIENDO, MBA

 Try to do all the learning activity. If you do not get a particular question right in the first
attempt, you should not get discouraged but instead, go back and do it again. If you still do not
get it right after several attempts then you should seek help from your subject
teacher/instructor.

Module 3 EVOLUTION OF MANAGEMENT SCIENCE

LEARNING OBJECTIVES:
Lesson Opening : Management science has an interesting history and the approach
has evolved over the years to its current concept, which we’ll explore further in the next
section.

Guiding Questions
:

1. How the concept ofmanagement science evolved

2. What are thenotable works and legacies of the different management consultants in
the field of business?

3. When operation research model

s became popular in the corporate secto
r?

Discussion: EVOLUTION OF MANAGEMENT SCIENCE

After studying this module, you should be able to:

✓ Recognized the works and legacies of well-known management consultants
✓ Appreciates the tools and models developed during the industrial revolution
✓ Explain how division of labor and machines can increase productivity
✓ Explain in your own words the concept of motion study and economic order of
quantity.

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MELANIE A. ABIENDO, MBA

 Part I. Evolution of Management Science

In this part of the module, recognized the works and legacies of well -known
management consultants .

Application of scientific methods to solve industrial problems dates back to the days of Adam
Smith, when he described the advantages of division of labor in 1776, for the increase in the
manufacture of pins. Early in nineteenth century, Charles Babbage, through his writing on ‘Economy
of machines and manufacturer (1832) advocated the use of scientific principles in the analysis of
business problems.

The growth of industrialization after industrial revolution of England brought forward serious
problems related to organizational planning and control. However, the principles of managements
started emerging in their useful forms since 1903, when Frederick W Taylor presented a paper on
‘shop management before American Society for Mechanical engineers. Through his professional
career, Taylor kept impressing that the manager should accept special responsibilities of developing a
science for man’s work. According to him, the managers must gather and classify all traditional
knowledge and transform this knowledge to laws, rules and procedures so that the workers and
laymen are benefitted, by doing their routine jobs.

Agner Krarup Erlang, in 1909, published his most important work containing the development
of formulae on waiting time, based upon lows of statistics. These are being widely used in practice. In
the area of inventory control, Ford W Harris deduced a formula in 1905, on ‘Economic Order
Quantity’ that constituted as a basis of inventory control for a long time, and still finds wide use today.
Walter Shewhart used the principles of statistics to establish the concept of control charts in quality
control of manufactured products. The control charts are considered as one of the important tools in
statistical quality control.

Wassily Leontiff was first to develop and apply linear programming models in business
problems. In 1947, George B Dantzig developed Simplex algorithm an efficient computational
scheme to solve problems related to allocation of scarce resources. Since 1956, a large number of
theories and models have been described to analyze the decision problems for their solutions. Some
of them are mathematical programming, simulation theory, decision theory, network models etc.

ACTIVITY 1: ( ANSWERS)
a) Control charts- statistical process control tool used to determine if a manufacturing or
business process is in a state of control.
b) Division of labor- separation of tasks in any economic syustem so that participant may
specalize.
c) Economic order quantity- is the order quantity that minimizes the total holding costs and
ordering costs. It is one of the oldest classical production scheduling models.
d) Economy of machines- involves a reduction in the working hours of a human resource.
e) Linear programming models- is a method to achieve the best outcome (such as maximum
profit or lowest cost) in a mathematical model whose requirements are represented
by linear relationships.
f) Mathematical programming- Mathematical optimization or mathematical programming is
the selection of a best element from some set of available alternatives.
g)Motion study- is a business efficiency technique. It is the part of method study and is one of

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 the oldest branches of work-study. Every work consists of some motion.
h)Simplex algorithm- is the classical method to solve the optimization problem of linear
programming. We first reformulate the problem into the standard form in which all constraints
are expressed as equalities.
i)Waiting time- it is a formulae that based upon the low of statistics.
MANAGEMENT WORKS/LEGACIES DESCRIPTION OF WORK
CONSULTANT
Adam Smith Division of Labor For the increase of the
manufacture of pins.
Charles Babbage Economy of Machines and It advocated the use of
Manufacturer scientific principles in the
analysis of business problems.
Frederick W Taylor Shop Management Managers should take the
responsibilities of developing a
acience for man’s work.
Argner Krarup Erlang Formulae on Waiting time It is based upon the lows of
statistics.
Ford W Harris Economic Order Quantity It is a basis of inventory
control.
Walter Stewhart Concept of Control Charts It is an important tool in
statistical quality control.
Wassily Leontiff Linear Programming It is useful for guiding
quantitative decisions in
business planning.
George B Dantzig Simplex Algorithm Efficient computational scheme
to solve problems related to
allocated scarce recources.

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MELANIE A. ABIENDO, MBA

 Part II. THE HISTORY OF MANAGEMENT SCIENCE
The roots of management science can be found in a concept of operations research, which
was a system developed during World War II. The War, like other wars before and after it, involved
plenty of operations outside of the traditional fighting on the battlefield. Warfare changed from the
First World War and scientists from different fields were part of the effort to gain the upper hand on
both sides of the war.

Operation research or operational research saw the scientists trying to apply analytical
methods in order to enhance the decision-making processes. The approach was highly used by the
Allied forces, with Britain engaging nearly 1,000 men and women in operation research during the
war. The basis of operation research was on different mathematical models, which were used to
make predictions that would improve military operations.

One example of the operation research use was the application of ‘effectiveness ratios’, which
compared the flying hours of Allied planes with enemy U-boat sightings in a given area. By studying
these numbers, the military was able to distribute the planes to productive patrol areas and map out
enemy positions more efficiently.

After the war, the operation research model became implemented in the corporate sector. As
businesses and other organizations begun using analytical research as part of the decision-making
process, the term management science was coined. In 1967, Stafford Beer said the field of
management science is essentially “the business use of operations research”.

At this initial stage, management science involved around the application of different scientific
methods and findings in order to solve management problems and streamline the processes of
management. The broad approach meant the system used operation research, system analysis as
well as the study of management-information systems as part of the implementation. Since then, the
definition and scope of management science has become more defined.

Generalization:
I learned that the history of management science id very interesting. It came form the world war II until
scientific methods are being made. I also realized deeper the management science, decision making
and operations research. This is the first time that I encountered this information and It is very helpful
for me as a current management dcience student.
POST-ASSESSMENT/UNIT EXERCISES.
“Blessed is the man who perseveres under trial, because when he has
stood the test, he will receive the crown of life that God has promised to
those who love Him.” James 1:12

Name:_Princess May Adam__________ Section:_BSA-1D_______

Class Schedule:___MWF___________ Score:__________

DO NOT LEAVE ANY PART & QUESTIONS UNANSWERED.

Begin here!

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 Test I. Test your Mastery. MATCHING TYPE. Directions: Match column B with column
A. (NO ERASURES).

COLUMN A COLUMN B
_A__1. Division of Labor a. Adam Smith
_C__2. Formulae on waiting time b. Charles Babbage
__D_3. Concept of Control Charts c. Agner Erlang
_B__4. Economy of Machines & Manufacturer d. Walter Shewhart
_F__5. Formula on EOQ e. Frederick Taylor
_G__6. Simplex Algorithm f. Ford Harris

_E__7. Shop Management g. George Dantzig

_H__8. Linear Programming h. Wassily Leontiff

II. Fill in the blanks:

1. The roots of management science can be found in a concept of _operations

research_, which was a system developed during __World War II_____________.

2. Simplex algorithm an efficient computational scheme to __solve________ problems

related to allocation of _____scarce recources_____________.

3. The growth of _____industrialization___ after industrial revolution of England

brought forward serious problems related to organizational __planning and
control____.

4. The control charts are considered as one of the important tools in statistical __quality
control_______.

****************** End of Post-test *********************

”END is not the end. In fact, End means Effort Never

Dies”

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 Feedback (Send via SMS/PM)
What difficulty that I encounter in using this module

The only difficulty I found in this module are the unfamiliar terms. That’s why I need to search it
to better know and understand what are the information is all about. I also found this module
very helpful and interesting. I discovered and learned many things in this module about our
subject which serves the way to deeper and better understand the subject.

REFERRENCES:

Internet/Website:

Martin Luenendonk (2019), THE HISTORY OF MANAGEMENT SCIENCE, retrieved

August 10, 2020 from https://www.cleverism.com/management-science-guide/

Dr. YAKOOB C, Evolution of Management Science, retrieved Juy 10, 2020 from
http://www.universityofcalicut.info/SDE/Management_science_corrected_on13Ap
ril2016.pdf

CEOpedia Management Online, Origin and development of management science,

retrieved August 10, 2020 from
https://ceopedia.org/index.php/Origin_and_development_of_the_management_s
cience

Sindhuja S., Historical Development of Management Science, retrieved July 10, 2020
from https://www.businessmanagementideas.com/essays/management-
sciencedefinition-characteristics-and-tools/9080

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MGT1NEW-Management Science

MELANIE A. ABIENDO, MBA