The quantitative management approach is given by the mathematical school that recommends the use of computers and mathematical techniques to solve complex management issues and assist in the managerial decision-making process. Managers observe historical quantitative relationships and use quantitative techniques such as statistics, information models, and computer simulations to improve their decision making.
During World War II, the U.S and the U.K army brought together business managers, government officials, and scientists and took their help to decide on the best way to utilize the existing resources. These experts from different domains and areas used some of the mathematical and statistical approaches devised by Taylor and Gantt to solve these logistical problems. This is how the quantitative-based management perspective emerged.
The quantitative approach to management includes the application of statistics, optimization models, information models, and computer simulation to assist in the managerial decision-making process. More specifically, this approach focuses on achieving organizational effectiveness through the application of mathematical and statistical concepts.
The three main branches of the quantitative approach are:
The management science approach stresses the use of mathematical models and statistical methods for decision-making. Various mathematical tools like the waiting-line theory or queering theory, linear programming, the Program Evaluation Review Technique (PERT), the critical path method (CPM), the decision theory, the simulation theory, the probability theory, sampling, time series analysis, etc., are used in management science approach to increase the effectiveness of managerial decision-making.
Management science techniques are widely used in the following areas.
Operations management is an applied form of management science. It deals with the effective management of the production process and the timely delivery of an organization's products and services. Operations managers make use of tools like forecasting, inventory analysis, materials requirement, planning systems, networking models, statistical quality control methods, and project planning and control techniques.
Operations management is primarily used in the following areas:
A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. Management information systems focus on designing and implementing computer-based information systems for business organizations. In simpler terms, the MIS converts raw data into information and provides the required information to each manager at the right time in the needed form.
Businesses use management information systems to increase the value and profits of the business. MIS has the capability of providing timely and appropriate information allowing the managers to make effective information-based decisions.
Behavioral Approach to Management
The behavioral management theory had a profound influence on management by focusing on understanding the human dimensions of work. It is also called human relations movement as behavioral theorists focused on managing productivity by understanding factors of worker motivation like their needs and expectations, personality, attitudes, values, group behavior, conflict, and group dynamics. It advocated the use of psychological techniques to motivate employees.
Max Weber gave the theory of Bureaucratic Management in 1915. Bureaucracy is a specific form of organization defined by complexity, division of labor, professional management, and hierarchical management control. Weber's theory has two essential elements - organizational hierarchy and rules-based management. Weber made a distinction between authority and power and advocated that authority must be given to the most competent and qualified people.
At different points in your professional career, it is helpful to identify your core values. Values are the qualities considered to be the most important guiding principles that determine the priorities in your life and greatly influence your career choices. Your career brings happiness when it is in agreement with the beliefs you have about what is important and meaningful to you. Awareness of your values will help you develop a clearer sense of what's most important to you in life.
McClelland's Theory of Needs is a human motivation theory which states that an individual's specific needs are acquired over time through our culture and life experiences. As per the three needs theory, these acquired needs significantly influence the behavior of an individual. The three main driving motivators are the needs for achievement, affiliation, and power.
Modern Approaches to Management
The modern approaches to management look at organizational management in the current context. They take a holistic approach and look at organizations as a collection of interrelated parts influenced by both internal dynamics and also the larger external environment. These modern management theories have played a significant role in the evolution of management studies.
Power is the ability to exercise influence or control over others. Leadership involves authority and it is very important for leaders to understand what type of power they're using. The 5 Types of Power in Leadership are Coercive power, expert power, legitimate power, referent power, and reward power. Authority is the right to command and extract obedience from others. It comes from the organization and it allows the leader to use power.
Emergent leadership occurs when a group member is not appointed or elected as leader, but rather that person steps up as the leader over time within-group interactions. Have you ever faced challenges in getting accepted into your new role of position as a leader? Groups don't automatically accept a new "boss" as a leader. Emergent leadership is what you must do when taking over a new group. Learn more about emergent leadership.
Many different types of teams have been identified by social scientists. Managers may encounter the diverse types of challenges while managing different kinds of teams. Challenges associated with Cross-Functional Teams might be different from that of a Geographically Dispersed Team or a Virtual Team. This article explores some common categories and subtypes of teams.
Managers have to perform many roles in an organization, and how they handle various situations will depend on their style of management. Management styles are the characteristic ways, of making decisions relating to subordinates. These are the strategies, efforts, or direction used by the manager, to create an efficient workplace, to achieve organizational goals. A management style is the method of leadership used by a manager.
Management theories are the recommended management strategies that enable us to better understand and approach management. Many management frameworks and guidelines were developed during the last four decades.
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