Page 47 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 2: Evolution of Management Thought

include Linear Programming, Critical Path Method (CPM), Programme Evaluation Review Notes
Technique (PERT), Games Theory, Queuing Theory and Break-Even Analysis.
The quantitative approach uses mathematical formulate for finding solutions to the problems
that were previously unsolved. The abiding belief of the quantitative approach is that if
management is a logical process, it may be expressed in terms of mathematical symbols and
relationships. The basic approach is the construction of a quantitative model because it is though
this device that the problem is expressed in its basic relationships and in terms of selected
objectives. The construction of the model expresses the effectiveness of the system under study
as a function of a set of variables at least one of which is subject control. The general form of
operations research model is E = f (x , y ), where E represents the effectiveness of the system
1 1
(profit, cost and the like) x the variables of the system which are subjected to control and y
1 1
those which are not subject to control.
The quantitative approach to management has its root in the scientific management movement.
Since Taylor advocated a logical sequence of problem formulation, fact finding, modelling, a
tentative solution, testing, etc., his scientific approach could be classified as an early form of
quantitative approach to management. A natural extension of the scientific management is the
operations research.
The approach was updated so as to include development of mathematical models to represent a
system under study. I may be noted that the development of models required the skills of
money disciplines such as engineering, mathematics, economic, statistics, physical science,
behavioural sciences and cost accountancy. The mathematical formulation enabled the managers
to discover significant relationships that they could control.

Another important development alongwith the growth in the number of quantitative techniques
was the introduction of high speed digital computers. Starting in about 1970, the quantitative
approach to management turned away from emphasis on narrow operations research techniques
to the boarder perspective of decision techniques and models building. It also incorporated
computerised information systems and operations management. The latest emphasis of the
quantitative approach marked a move towards a more broad-based management.

2.8 Systems Approach

In the 1960s, a new approach to management appeared which attempted to unify the earlier
schools of thought. This approach is commonly referred to as ‘Systems Approach’. Basically, it
took up where the functional process management school let off to try to unify management
theory. “A system viewpoint may provide the impetus to unify management theory. By definition,
it could treat the various approaches, such as the process, quantitative and behavioural ones, as
subsystems in an overall theory of management. Thus, the systems approach may succeed
where the process approach has failed to lead management out of the theory jungle”.
The systems approach is based on the generalization that an organisation is a system and its
components are inter-related and inter-dependent. “A system is composed of related and
dependent elements which, when in interactions, form a unitary whole. It is simply an assemblage
or combination of things or parts, forming a complex whole. Its important feature is that it is
composed of hierarchy of sub-systems. The world as a whole can be considered to be a systems
in which various national economies are sub-system. In turn, each national economy is composed
of its various industries, each industry is composed of firms, and of course, a firm can be
considered a system composed of sub-systems such as production, marketing, finance, accounting
and so on”. Thus, each system may comprise several sub-systems and in turn, each sub-system
be further composed of sub-systems.

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