International Conference on Modern Trends in Innovative Management – 2011 MTIM 2011

APPLICATION OF QUANTITATIVE TECHNIQUES IN MAKING DECISION

AMONG UNIVERSITY EXECUTIVES

P.M. Bandula Jayathilake

Faculty of Management Studies, Rajarata University of Sri Lanka
Mihintale, Sri Lanka
bandulapmb@yahoo.com

Y.M.W.G.P.K. Udurawana
Faculty of Management Studies, Rajarata University of Sri Lanka
Mihintale, Sri Lanka
udurawan@gmail.com

ABSTRACT

Quantitative technique is a system of subjective data or information that assists decision makers such
as managers, researchers, etc. in making more effective decisions. This study aimed to examine the
application of quantitative techniques among the university executives. A random sample of 120
executives was selected for the study and required data were collected through specially designed
structured questionnaire. Descriptive statistics, linear regression and correlation analysis, ANOVA
and Chi-Square tests were utilized and total analysis was made with the aid of SPSS 16 version.
Results show that, although a large number of quantitative techniques have been established over
many years and majority of the respondents reported expressing one or more techniques, a few of
them are being used in decision making. Furthermore, executives seem to be confining themselves to
a selection of relatively simple techniques rather than not paying considerable attention to use more
advanced techniques even though computers and software are readily available. The lack of
understanding about the quantitative techniques among the executives was the major barrier to their
usage. A new comprehensive approach to research and training is required to enhance the utilization
of quantitative techniques which have not been widespread and familiar in decision making relative
to the development of advanced and sophisticated techniques, models and software for solving
problems.

Keywords: Quantitative techniques, Decision making, University executives,

INTRODUCTION
In this modern era of globalization the application
of quantitative techniques in decision making
cannot be denied due to different reasons. Among
these reasons include the powerful nature of
quantitative techniques in solving practical
problems through the use of models that represent
the existing reality. Also, the technology of our
business society is rapidly changing into highly
integrated, automated systems, driven by the
machine and not the man which without
quantitative techniques it is impossible to achieve
organizational objectives. (Nkereuwem and Eteng,
1994)
Accordingly every organizational manager must
be involved with programmed and non
programmed decision in their management
processes as rational decision making is the
lifeblood of any organization. According to Dunn
(1994) most organizational problems are
interdependent, subjective, artificial and dynamic.
If this reasoning is factored into the decision-
making process, then administrators will be able to
discern multitudinous alternatives. Iverson (1985)
suggests that utilizing quantitative techniques
introduces an approach through which a manager
could systematically and logically construct
methodologies to resolve complex problems.
Drott (1989) asserts that quantitative techniques

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International Conference on Modern Trends in Innovative Management – 2011
involve systematic evaluation of alternative
actions as a basis for choice between them. On the
other hand, Adimorah (1984) observes that several
advantages are derivable from use of quantitative
techniques such as budgeting, keeping statistics,
goal setting, performance appraisal, and
management tools in planning, organizing,
directing and controlling.
In relation to upon explanation the decision
making styles reveal the success of firm in which
modern decision making techniques are associated
but it is a still questionable when considering the
application of quantitative techniques in making
decisions with industrial executives.
Therefore researcher has considered higher
educational institutions, particularly universities,
in Sri Lanka which cater for vast population
compare to their limited resource base. With such
type of limitations and constraints, administrators
in the universities should make their decisions
very effectively to provide better and quality
service to their stakeholders.
The utilization of quantitative techniques could be
helpful for such parties to make their decision
appropriately. As upon consequence this study
attempts to examine the application of quantitative
techniques in decision making among the
executives in Sri Lankan universities.
LITERATURE
Quantitative techniques are mathematical and
statistical models describe a diverse array of
variables relationship and are designed to assist
administrators with management problem solving
and decision making (Naude, Sartray and Wegner,
1991).
The classical organizational thought of
administration had a management theory that
stated with scientific management analysis of work
and efficiency as Taylar believed in. The
quantitative studies of management had its origin
during World War II when operations research
teams were formed to deal with strategic and
tactical problems faced by the military. After the
war, many of researchers continued their research
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MTIM 2011
on quantitative approach to decision making and
applied to manufacturing, health care,
communication, business, engineering projects and
educational administration. Many educational
administrators’ realized to increase administration
capability to seek more rational way of making
decisions and more structured methods in solving
problems.
On the other hand, Bookstein (1988) identifies
some problems which faced the incorporation of
quantitative techniques into decision making.
Similarly, Bommer (1975) attributes the failure of
quantitative techniques in decision making to the
factors of too much mathematics, too little
implementation and difficulty in application.
Grason (1980) argues that some university
administrators avoid quantitative methods in
making decision because of their inability to
understand and interpret statistical or
computational data and models. Grayson explains
that these data and models are omitted in which it
helps to convert difficult decisions into
straightforward in university environment.
Koeinig and Feeman (1992) stress that utilization
of quantitative methods in university administers
create greater awareness in strategic decision
making. They conclude that decision analysis
derives from the argument that when strategic
alternatives are compared, the uncertainties
underlining the various alternatives or scenarios
can be best treated and probability distributions
rather than as specific probability estimates.
Dave (1995) observes that decision making is one
of the most crucial issues in modern organizations.
Such decisions he noted could be divided into the
dimensions namely between a small number of
alternatives in answer to known questions or
problems whereas, strategic decisions involve
finding out what the situation is and resources
available and what they should be.
In view of the above literature review, this study
examines the extent to which quantitative
techniques are used by university executives in
their decision making.
The following research questions guided the study:
 How often do university executives utilize
quantitative methods in their decision
making?
International Conference on Modern Trends in Innovative Management – 2011 MTIM 2011

and only 20 participants had doctoral qualification

 What are the problems faced in utilizing of
quantitative methods among these
executives?
 What are the strategies to be used to
enhance proper usage of quantitative
methods in making decision?
MATERIALS AND METHODS
The target population for this study was all the
executives in the government universities and a
sample of 100 executives was selected by using
stratified sampling. A self completion standard
questionnaire was administered for data collection
purpose.
Questionnaires were sent to selected executives
with return envelops through mail. Same
questionnaires were sent through e-mail to those
who have e-mail addresses in their university
websites for their convenience. Follow-up phone
calls were also made for increasing the response
rate. The questionnaire consists of two sections.
First section focused to collect the data pertaining
to human capital whereby the participants were
asked to indicate their gender, level of education,
number of years of working experience, ect.
The second section aims to evaluate the rationality
in making decision process, familiarity on
quantitative techniques and their usage in making
decision and constraints faced in applying
quantitative techniques. All questions in the
second section were Liket type of five scaling.
and few (5%) of participants had other
qualifications below the degree level. However,
only 42% of executives had management related
educational qualification while 23.4% had social
sciences related qualification and 26.6%
qualification related to science and other
discipline. Further, some of respondents (32%)
reported that they are following management
related post graduate degrees when the survey was
administered. Executive experience of the
administrators in the sample is ranged from
minimum of 1year to maximum of 15 years with
mean of 7.83 years.
These results show that the diversity of
experiences among the selected executives. With
relating to the usage of computers in decision
making, the mean values of 2.44 on scale ranged
from 1 to 4 indicated that usage of computers in
decision making is in very poor level.
Table 1 shows the descriptive statistics and results
of t - test calculated on main study variables of
executive experience, usage of computers in
decision making, rationality in decision making,
familiarity and usage of quantitative techniques in
decision making among academic and non
academic executives.
TABLE 1 DESCRIPTIVE STATISTICS AND
RESULTS OF T-TEST
Variable Mean t- test
t p
Academi

Academi

Total
Non

And Descriptive analysis procedures as well as

c

inferential statistical techniques were used to data

analysis and all analysis was performed with
Statistical Package for Social Sciences (SPSS). Executive 6.60 8.38 7.83 2.10 0.04
Experience
RESULTS AND DISCUSSION Usage of 2.25 2.52 2.44 1.02 0.32
computers
Rationality 3.70 3.60 3.64 0.79 0.43
Response rate for the present study was 64% due
Familiarity 3.14 2.50 2.70 3.97 0.00
to the non response error and rejection of
incomplete responses. Among 64 respondents, 50 Usage of the 1.88 1.59 1.66 1.96 0.06
percent were academic and there were 40 male and techniques
24 female executives. In terms of highest
educational qualification to date 34 percent had Source: Researcher Data
bachelor degrees, 54% had master qualification

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International Conference on Modern Trends in Innovative Management – 2011 MTIM 2011

Rationality of executives in decision making
process was evaluated with seven items on five
point scale ranging from 1 to 5. According to the
mean value of 3.64, the selected executives were
making their decisions by analysis situation
carefully and looking at the problems in different
perspective.
However, on familiarity of executives with
quantitative techniques, the mean of 2.70 shows
that those executives had fair level of knowledge
about the quantitative techniques. On the other
hand, their familiarity on techniques such as cost
benefit analysis, network analysis, inventory
control methods, statistical sampling and linear
programming are significantly lower than that of
other techniques which are in too mathematical in
nature.
Further, results of t – test reveal that familiarity of
academics on quantitative techniques is
significantly higher than the non academic
executives ( t = 3.97, p = 0.00). On usage of
quantitative techniques in making decision, the
selected executives had used those techniques
rarely in their decision making process. Results of
t – test also show that there is no any significant
difference between academic and non academic
executives on usage of those techniques (t = 1.96,
p = 0.06) in their decisions.
Table 2 shows the results for the problems
uncounted by executives in applying quantitative
techniques in decision making on their education
background. According to the results, most serious
problems encounter in using quantitative
techniques are lack of understanding and inability
in applying them into complex decision situations.
Further, complexity of the techniques and rule and
regulation and lack of time are also considerable
obstacles in applying the techniques in making
decision.
In the test of differences on education discipline,
executives with management qualification
uncounted low level of obstacles such as lack of
knowledge, difficult to understand, in ability to
adopt to changing condition than the executives
those who are with other qualification. However,
rules and regulations, lack of time and lack of
resources are common obstacles for each and
every executive in applying quantitative
techniques for their decision making process.

TABLE 2 DESCRIPTIVE STATISTICS AND RESULTS OF ANOVA

Variable Mean ANOVA

Manage Social Science Other Total F p
ment Science

Lack of knowledge 2.67 3.27 3.50 3.25 3.06 1.32 0.27

Difficulty to understand 2.44 2.67 2.50 2.86 2.75 0.28 0.84

Inability to adapt to changing 2.78 3.00 3.00 1.56 2.69 6.74 0.01
conditions
Inability to include all relevant 2.84 3.07 2.88 2.44 2.84 1.08 0.36
variables
Precluded by complexity of 3.24 3.13 3.00 2.44 3.02 3.30 0.02
decision situation
Lack of time to analysis real 3.01 2.67 2.65 2.89 2.88 2.17 0.10
problems
Rules and regulations 3.06 3.00 2.88 2.89 3.00 0.14 0.93
Lack of resources 2.28 2.40 2.12 2.44 2.31 0.35 0.78

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International Conference on Modern Trends in Innovative Management – 2011 MTIM 2011

Source: Researcher Data

CONCLUSION & RECOMMENDATION

4. Dunn W. N. (1994) Public Policy
Analysis: An Instruction. Eaglewood
University activities and services would be better
Cliffs, N. J. Printice
understood and appreciated if quantitative
techniques are more effectively utilized in decision
5. Hall.Grayson, T.A. (1980), Corporate
making process by university executives. From the
Planning and Library Statistics: Where
research findings, conclusion can be drawn that
Are We Now?, MCB University Press,
there is a low level utilization of quantitative
Bradford, p. 23.,
techniques by university executives in their
decision making. Further, university executives
6. Iverson, S.C. (1985), Quantitative methods
encounter the problems of lack of knowledge and
for Public Administration in Developing
understand about the techniques and inability to
Countries, John Wiley & Sons, New York,
use of those techniques in their decision situations.
NY, pp.5-7.
These results support Bommer’s (1975) assertion
7. Koenig, M.E.D., Feeney, A. (1992), "The
on attributes of failure of quantitative techniques
context of library and information work:
in management decision making.
three timely issues", in Line, M.B. (Eds),
Librarianship and Information Work
On the other hand, the greatest value of
Worldwide, Bowker-Saur, London.
quantitative methods lies in their ability to help
management in taking definite or critical decisions
8. Naude, P., Stray, C., & Wegner, T. (1991).
at the appropriate time.
The penetration of quantitative methods
into management decision making in the
The problems which require urgent attention
United Kingdom. OMEGA: International
include lack of understanding of the techniques
Journal of Management Science, 19, (5)
and their application as well as inadequate time for
447-457
analyzing the real situation. Therefore, results of
the study stressed the neediness of new and
9. Nkereuwem, E.E. and Eteng, U. 1994).
innovative methods to train and develop decision
The Application of Operations Research in
makers on utilization of quantitative techniques to
Library Management A Case Study of In-
enhance effective management decision making.
library Book Use, Library Review, Vol. 43
No. 6, , pp. 37-43.

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