Strategic Approach to Management Science

1. Strategic Approach to
Management Science

2. The Management
Science

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This school grew directly out of the World
War II groups (called operational research teams in
Great Britain and operations research teams in the
United States). Churchman, Ackoff, and Arnoff define
the management science approach as an application
of the scientific method to problems arising in the
operation of a system, and the solving of these
problems by solving mathematical equations
representing the system.

4. The term management science sounds very much like scientific
management (the approach developed by Taylor), but the two not be
confused. The distinguishing characteristics include:
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• Managerial decisions making. Scientific management is
concerned with production tasks and the efficiency of
workers and machines.
• Mathematical models. In management science, a
mathematical model attempts to reduce a managerial
decision to a mathematical form.

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• Computer applications- The use of the computer has
been the driving force behind the emergence of the
management science approach.
• Evaluation criteria. In management science, model
have been evaluated against a set of effectiveness
criteria (e.g., revenue, return on investment, and cost
savings).

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Operations management refers to the various
models and techniques in use. Some of the commonly
used methods are forecasting, inventory modeling, linear
and nonlinear programming, scheduling, simulation,
networks models, probability analysis, and break-even
analysis. Operations management specialists use these
techniques to solve manufacturing problems.

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Management information system (MIS) is the
most recent subfield of the management
science perspective. MIS is a system
designed to provide information to managers
in a timely and cost-efficient manner. It
entails and integrated data base (usually in a
computer), a hierarchical information
structure, and an orientation toward decision
support.

8. Attempts To Integrate The
Approaches

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The Contingency Approach
One pioneer who was instrumental in moving organization
theory to the contingency approach was Joan Woodward, who
studies the effect of technology on the organization. Woodward
found that many variations in organization structure were
associated with differences in manufacturing techniques. As
Woodward pointed out:
"Different technologies imposed different kinds of demands, and
these demands had to meet through an appropriate structure.
Commercially successful firms seemed to be those in which
function and form were complementary”.

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The Contingency Approach
One of these important contributors is James D. Thompson,
whose work in the area of technology's effect on organization is already
a classic. Thompson argued that organizations that experience similar
technological problems will engage in similar behavior.
The contingency view approaches management from a totally different
perspective than do the formal schools of management. The classical,
behavioral, and management science schools assumed a universal
approach. They proposed the discovery of "one-best-way" management
principles that applied the same techniques to every organization.
However, experienced managers know that not all people and situations
should be handled identically. Therefore, the contingency approach holds
that universal solutions and principles cannot be applied to organizations.

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The Contingency Approach
Management's task is to search for important
contingencies. The main determinants of the
contingency view relate to the external and internal
environments of the organization. However, the
contingency approach is not without its critics. Its
major problem is that it often is used as an excuse for
not acquiring formal knowledge about management.
This formal study of management helps managers
decide which factors are relevant in what situations
and its certain elements should serve as a foundation
for continued growth and developments.

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The System Approach
Ludwig von Bertalanffy is recognized as the founder of general
system theory. The system approach is based on the concept that
an organization is a system. A system is defined as a number of
interdependent parts functioning as a whole for some purpose.
Here there are five components: inputs, a transformation process,
outputs, feedback, and the environment.
Four especially ideas that have had substantial impact on
management thinking are the concepts of open versus closed
systems, subsystems, subsystems and interdependencies,
synergy and entropy.

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The System Approach
Open versus closed systems. According to Ludwig von
Bertlanffy, there are two basic types of systems: closed systems
and open systems. Closed system are not influenced by and do
not interact with their environments. Open systems interact with
their environment.
Entropy. Entropy is a universal property of systems and refers to
their tendency to run down and die. A primary objective of
management, form systems perspective, is to avoid entropy.

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The System Approach
Synergy. Synergy means that the whole is greater the sum of its
parts. Synergy is an important concept for managers in that it
reinforces the need to work together in a cooperative fashion.
Subsystems. A subsystem is a system within a system. From
another perspective, subsystems are parts of a system that depend
on one another.

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The System Approach
The concept wholeness is very important in general system analysis. L.
Thomas Hopkins suggested the following six guidelines regarding system
wholeness that should be remembered during systems analysis:
The whole should be the main focus of analysis, with the parts receiving
secondary attention:
• Integration is the key variable in wholeness analysis.
• Possible modifications in each part should be weighted in relation to possible
effects on every other part.
• Each part has some role to perform so that the whole can accomplish its
purpose.
• The nature of the parts and its function is determined by its position in the whole.
• All analysis starts with the existence of the whole.
• Systems theory offers the manager a useful perspective. For example, the
management system is based upon general system theory.

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Recent Trends

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Theory Z management. Given the recent success of Japanese
companies, management writers have been carefully analyzing
Japanese organizations. The most notable publication in this area is
Ouchi’s Theory Z. Ouchi showed that American and Japanese firms
are essentially different along seven important dimensions:
• length of employment
• mode of decision making,
• locations of responsibility,
• speed of evaluation and promotion,
• mechanism of control,
• specialization of career path;
• and nature of concern of the employee.

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Ouchi’s theory Z proposes a hybrid
form of management that incorporates
techniques from both Japanese and
North American management
practices. In a very short time, his
ideas have been well received by
practicing managers.

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Achieving excellence. In their best seller on America’s best-run
companies, in Search of Excellence, Peter and Waterman found eight
basic principles that reflected these companies, management value
and corporate culture. The eight principles of excellent companies are:
Ouchi’s theory Z
Bias toward action Closeness to the customer Autonomy and entrepreneurship
Productivity through people Hands on, value driven
Sticking to the knitting Simple form, lean staff Simultaneous loose-tight properties

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Furthermore, the management science can help more specifically in
the following core areas of any business:
Planning – The management science approach can be
used in the planning because it identifies and predicts
the results of certain processes.
Organizing – Creating systems that efficiently focus on
the specifically defined processes and tasks.
Leading and controlling operations – Since the
approach focuses on management, it can boost the
way the organization leads.

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Efficiency in the following core areas of business
will provide boosts in productivity, industrial peace
and enhance the organization’s ability to specialize
its products and services. Productivity results from
the efficiency in planning, organizing and leading,
as the processes are streamlined and different
parts of the organization focus on the areas that
maximize their efficiency.

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Employee motivation and productivity are also boosted through the
safer work environment, as alluded above. The approach identifies the
most efficient and the safest ways to produce products and services.
This can have a meaningful impact on the working conditions and thus
increase industrial peace further.
Specialization is improved through enhanced understanding of the
strengths and weaknesses of the organization. Management science
helps identify the processes, which work, notice the areas of
weakness, and realize the future possibilities and needs of the
organization’s consumer base. The approach makes the utilization of
resources easier, since the framework can notice the availability of
resources and the proper use of them.

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