18831982 Management Approach

8/6/2019 18831982 Management Approach

http://slidepdf.com/reader/full/18831982-management-approach 1/20

A Quantitative Approach

&Modern Approach To Management

Presented By:-BiswajitDiksha

DilipIftakhar

Prabhava Ram



Topicsy Quantitative Approach

y The Systems Approach

y The Contingency Approachy Assessment



Quantitative Approachy Quantitative Approach

y Also called operations research or management science

y E volved from mathematical and statistical methodsdeveloped to solve WWII military logistics and quality control problems



Basic Characteristicsy Primary Focus on Decision making

y Based on economic criteria

y Mathematical Models:y Statistics, optimization models, information models,

and computer simulations

y Dependency on Computers



Quantitative Techniques

y Linear Programming: Deals with situations which

require need for limited resources utilization to bestadvantage

y Queuing Theory: Deals with how to manage different

customer for different services.



Linear Programming ( L P )

� In LP ,we either maximize (e.g. Profit)

or

minimize (e.g. cost)an Objective Function under given

Constraints

� All factors involved have

� linear relationships, i.e. doubling of labour will

reduce the time put.



L P 2 variable Graphical Solution Maximization

� A manufacture produces 2 products A and B,

whose profits are Rs. 3 and Rs. 4 per Unit respectively .

� Production data -Per Unit

Machining hours Labour hours Material (kg)

A 4 4 1B 2 6 1

Total available 100 180 40

�Due to trade restrictions A can not be produced more than20 Units in a week

and due to agreement with customer at least 10 units of Bmust be produced.

� Let quantity of A and B be X and Y respectively in a week

Objective Function is Maximize 3X + 4Y

Subject to constraints 4X + 2Y < 100 ; 4 X + 6Y < 180 ;X+Y < 40

X < 20 , Y > 10



Graphical Solution to LP Maximisation problem

0 10 20 30 40 50 60 70

10

20

30

40

50

60

X

Y

Y >. 10

X < 20

X + Y < 40

4 X + 2 Y < 100

4 X + 6 Y < 180

Optimal solution - X =15 , Y = 20

Max. profit = 3x15 + 4x 20 = 125



Limitations of Quantitative Approachy Despite its potential impact, this approach has certain

limitations:-

yDoes not deal with the people aspect of anorganization!!!

y Unfamiliar with advanced quantitative tools!!



The Systems Approachy System Defined

y A set of interrelated and interdependent parts arranged

in a manner that produces a unified whole.



Basic Types of Systems

y Closed systems

y Are not influenced by and do not interact with theirenvironment (all system input and output is internal)

y Open systems

y Dynamically interact to their environments by taking ininputs and transforming them into outputs that aredistributed into their environments

y Example:



The Operating Model in Organizational

System

Input Transformation Output

Feedback



Assessment of Quantitative &

Systems Approachy It can be used to improve managers ability to deal with

human resources issues.

y Sophisticated staffing models can be used to map the

flow of people into and out of an organization.y We are always ready to accept changes. We can

increase the productivity by modifying thequantitative and system approach.



The Contingency Approachy Contingency Approach Defined

y Also sometimes called the situational approach.

y There is no one universally applicable set of management principles (rules) by which to manageorganizations.

y Organizations are individually different, face different

situations (contingency variables), and require different ways of managing.



Contingency Viewpoint

Contingency Viewpoint

Behavioural Viewpoint

System Viewpoint

Traditional Viewpoint



Popular Contingency Variables:

yExternal Environment

yTechnology

y Individual



Assessment of Contingency

Approach

y Useful because of its diagnostic approach, whichclearly departs from one of the best approach of traditionalist.

y It is more flexible, although draw heavily from otherapproaches.

y

Allows managers to apply principles from thoseapproaches selectively and appropriately.



Questions.?????

18831982 Management Approach

Documents

Transcript of 18831982 Management Approach