TOPICS:

THE BEHAVIORAL
SCIENCE
APPROACH
AND
QUANTITATIVE
MANAGEMENT
 HELLO!
I AM
KIMBERLY
ANGEL
GARCIANO
2
1ST TOPIC :
THE
BEHAVIORAL
SCIENCE
APPROACH
 What is the Behavioural
Science Approach ?

“
The behavioral science
approach to management
focuses on the psychological
and sociological processes
(attitude, motivations, group
dynamics) that influence
employee performance.
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 This gave rise to the Behavioral science
approach to management. Two branches
contributed to the Behavioral approach.
▪ 1.Human Relations Movements: The human relations
movement refers to the approach to management and
worker productivity that takes into account a person’s
motivation, satisfaction, and relationship with others in the
workplace.
▪ 2.Development of Organisational Behavior: Pioneers of the
human relation movement stressed inter-personal relations
and neglected the group behavior patterns.

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 Classification of
human needs by
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Maslow as under:
 • Physiological needs

• Safety needs

• Ego or esteem needs

• Self–fulfillment

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 Maslow is of the opinion that these needs have a
hierarchy and are satisfied one by one. When first
needs are satisfied then person moves to second and
so on.

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 Some of the important
elements of the behavioral
science approach are
highlighted below
▪ Individuals differ in terms of their attitudes,
perception and value systems.
▪ People working in an organisation have their
needs and goals, which may differ from the organisation’s
needs and goals.
▪ Individual behavior is closely linked with the behavior of the
group to which he belongs.
▪ Informal leadership, rather than the formal authority of
supervisor, is more important for setting and enforcing group
standards of performance.
▪ By nature most people enjoy work and are motivated by self-
control and self-development

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 2 TOPIC:
nd

QUANTITA
TIVE
MANAGEM
ENT
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 use of computers and mathematical
techniques to sift through financial
statistics to select stocks. The
quantitative approach applies
statistics, optimization models,
information models, computer
simulations, and other quantitative
techniques to the management
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 The primary branches of quantitative
management include:

 Management Science

 Operations Management

 Management Information Systems

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 What is Management Science?

This branch of management theory focuses on the development of

mathematical and statistical models as a simplified representation of a
system, process, or relationship as models, formula, and equations.

What is Operations Management?

Operations management is a field of management focusing on efficiency,

effectiveness, and producing or organizational systems, process, and
functions used in the manufacture of goods or provision of services.

What is Management information systems (MIS)

is the study of how people use technology to manage information. It

includes both the hardware and software used to store, process, and
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retrieve information.
Quantitative Management Techniques
Some of the primary techniques applicable to Quantitative
Management include:

 Theory of Probability
 Sampling Analysis,
 Correlation / Regression Analysis,
 Time Series Analysis,
 Ratio Analysis,
 Variance Analysis,
 Statistical Quality Control,
 Linear Programming,
 Game Theory,
 Network Analysis,
 Break-Even Analysis,
 Waiting Line or Queuing Theory,

15 Cash-Benefit Analysis, etc.
 What are the Phases of Total Quality Management?

There are four phases of total quality management:

▪ Planning Phase: Employees discover the problems in regular
operations and their root-causes. Employees conduct comprehensive
research and collect relevant data.
▪ Doing Phase: Employees develop and execute strategies and
plan to address identified problems.
▪ Checking Phase: Data is collected to analyze performance to
validate the effectiveness of the processes and measuring the outcome.
▪ Acting Phase: Outcomes are documents and employees begin
addressing resulting challenges.

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 What is Lean Management?

Lean management is an approach to management focusing on

maximizing customer value while reducing processes waste without
compromising quality. This is done through incremental improvement

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  Value Identification – Focus on the customers point of view

 Value Mapping – Eliminate all of the unnecessary steps in

the value delivery process.

 Operational Mapping – Focus on sequencing value-

providing activities.

 Value Pull – Identify the point at which customers pull

value from the process.

 Efficiency – Continue to seek increased efficiency with less

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waste.
 What is 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.
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 What are the Positive Aspects of Quantitative Management Theory?

Benefits include:

• 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.
• 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).

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What are the Negative Aspects of Quantitative Management Theory?

Negatives include:
• 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.
• 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.
▪21 • Decisions are often based on the availability of limited
 Primary Contributors to Quantitative Management?
1.Decision Theory – Determination of objectives of the firm, assessment of group conflicts and
interaction, organization analysis. R.M. Thrall, C.I. Bernard, H.A. Simon, N. Weine. Decision theory
looks at the various factor influences management decision making. It views decision making is a
continuous process within the organization.
2.Inventory Theory – Economic lot size and inventory control. F.W. Harris, J.F. Magee
3.Game Theory – Timing and pricing in a competitive market, military strategy. J. Von Newman,
Shubik
4.Queuing Theory – Inventory control, traffic control, radio communication, telephone trunking
system. A.K. Erlang, L.C. Edie, P.M. Morse, M.G. Kendall.
5.Linear Programming – Assignment of equipment and personnel scheduling, input-output analysis,
product mix. W. Leontief, G.B. Dantzig, P.A. Samuelson
6.Sampling Theory – Quality control, Simplified accounting and auditing, consumer surveys and
product preferences in marketing research. E. Deming, H.F. Dodge
7.Probability Theory – Almost all areas of application. R.A. Fisher, T.C. Fry, W. Feller
8.Statistical Decision Theory – Estimation of model parameters in probabilistic models. A. Wald,
E.D. Molina, W. Shewhart
9.Symbolic Logic – Circuit design, legal inference. G. Boole, B. Russell, A.N. Whitehead
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 THANKS!
Any questions?

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