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Anagement Cience: - True

Management science applies quantitative techniques like optimization and simulation to help managers solve problems and make better decisions. It was developed during World War II and is considered the application of scientific methods to management problems. Key aspects include using systems thinking, being interdisciplinary, following the scientific method, and providing quantitative solutions to help with decision making.

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0% found this document useful (0 votes)
20 views6 pages

Anagement Cience: - True

Management science applies quantitative techniques like optimization and simulation to help managers solve problems and make better decisions. It was developed during World War II and is considered the application of scientific methods to management problems. Key aspects include using systems thinking, being interdisciplinary, following the scientific method, and providing quantitative solutions to help with decision making.

Uploaded by

animeilaaaa
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MANAGEMENT SCIENCE

All organizations, regardless of its nature, Developed during World War II to find
type and form of business ownership solutions to warfare issues, the management
encounter problems and oftentimes share science approach uses (blank) to solve
common problems. problems. Also known as a quantitatıve
approach, the approach analyzes a mix of
- TRUE
feasibilities, constraints and cost to enable
No matter where you go, the same problems management to make decisions.
will exist on some level in any organization.
- Mathematical models
- Cash flow, scalable growth, employee
Management science is credited to the work
engagement, and the list goes on.
of (blank) who is considered as the FATHER
This solution to problems result to making OF MODERN SCIENTIFIC MANAGEMENT. It is
decisions based on SUBJECTIVE because of him that systematic management
INFORMATION, such as personal experiences, techniques were developed in Philadelphia
observations, and interpretations, rather than around the year 1880.
objective data.
- Frederick Taylor
- Qualitative solutions
Taylor described that management science as
The (blank) to problems apply statistics, an integrated approach to the application
optimization models, information models, based scientific research methods that can be
computer simulations, and other quantitative used to solve the problems arising in
techniques to the management process. business.

- Quantitative solutions - TRUE

Decision making is important in business.


Unfortunately, people are not always
naturally inclined to make the best decisions. CHARACTERISTICS OF MANAGEMENT
Fortunately, (blank) serves the role of helping SCIENCE
people to make more informed and logical - System orientation
decisions.
- Interdisciplinary
- Management Science
- Scientific method
is the APPLICATION of a SCIENTIFIC, rational,
structured approach to solving - Decision Making
MANAGEMENT problems to help managers
make better decisions. - Quantitative solution

- Management science - Human factors

Definion of Management Science

- ART of mathematical modeling Business organization is considered as a


system and an entity, by any part of
- SCIENCE of the solution techniques for organization has some EFFECT on the activity
solving mathematical models of every other part. To evaluate any decision
one has to identify all possible interaction and
- Ability to COMMUNICATE results determine the impact on the organization a
whole.
Two other widely known and accepted names
for management science are - System orientation
- operations research and decision science. It is recognized that COMBINED EFFORT of
different persons can produce more unique
solutions with greater probability of success.
ORIGIN OF MANAGEMENT SCIENCE The operations research team will look at the
problem from many angles, to determine the
The origins of management science can be best solution.
traced to operations research, which became
influential during - Interdisciplinary

(BLANK) when the Allied forces recruited Operations reseorch team applies the
scientists of various disciplines to assist with methods of observation, experimentation,
military operations Inference and testing frequently on all
problems. When an issue is identified, its
- World War II critical loctors are observed experiments are
conducted on its behavior Several inferences
1
MANAGEMENT SCIENCE
are arived as to its causes and impacts, and 3. Determine the criterion or criteria that will
finally testing and simple solutions are be used to
arrived at new problems. Solution to a
managerial problem may uncover several evaluate the alternatives.
relaled and unrelated problems. The result of
management science study pertaining to a 4. Evaluate the alternatives.
particular problem need not wait until all the
conceived 5. Choose an alternalive.

problems aro solved. Integrated and scientific 6. Implement the selected alternative.
approach will lead to gradual solution of
7. Evaluate the results to determine whether
newly uncovered problems.
a satisfactory solution has been obtained.
- Scientific method

This is inherent to management science and


Note Steps 1-5 of the 7 steps are associated
problem solution. Scientific (blank) is a
with DECISION MAKING.
systematic process, consisting of diagnosis of
the problem, identifying critical factors,
revealing alternatives, and then selecting the
best alternative. The first step in the decision making process
is the clear identification of or the diagnosis
- Decision Making of problems that require a decision. An
assessment of problems will only be as
Management science provides the decision
accurate as the information on which it is
makers with a quantitative basis for decision
based.
making. For this purpose, objectives of
situation is identified, constraints are - IDENTIFY AND DEFINE THE PROBLEM
subjected to analysis, and various pay offs
under each alternative is evaluated. All these Problems in which the objective is to find the
performed in NUMERICAL TERMS. best solution with respect to ONE CRITERION
are referred to as (blank)
- Quantitative solution
- single-criterion decision problems.
plays a dominant role in managerial
problems. In quantitative analysis, It cannot Problems that involve MORE THAN ONE
be considered and given due importance. CRITERION are referred to as (blank)
However, management science takes into
account all (blank), besides material factors. - multicriteria decision problems.
Management science will be incomplete
What makes this choice phase so difficult is
without a study of such factors.
that the criteria are probably NOT ALL
- Human factors EQUALLY IMPORTANT, and no one
alternative is ("blank") with regard to all
criteria.

PROBLEM SOLVING AND DECISION - best


MAKING

can be defined as the process of identifying a


DIFFERENCE BETWEEN the ACTUAL and the (Blank) are two very important activities
DESIRED state of affairs and then taking which cannot be separated. Both move
action to resolve the difference. together.

- Problem solving - Managing and decision making

For problems important enough to justify the (Blank) is the main business of management
time and effort of careful analysis, the and it has been considered as SOUL OF
problem solving process involves the MANAGEMENT.
following seven steps:
- Decision-making

MAIN ELEMENTS OF DECISION MAKING


7 STEPS OF THE PROBLEM SOLVING
- CONCEPT OF BEST DECISION
PROCESS
- Organizational Environment of the Company

- Psychological Elements
1. ldentify and define the problem.
- Timing of Decisions
2. Determine the set of alternative solutions.

2
MANAGEMENT SCIENCE
- Communication of Decisions ► OPTIMIZE some set of factors such as
profits, sales,
- Participation of Employees
market share OR

Decision must be Rational meaning decisions ► MINIMIZE loss, expenses OR


must conform to the basic (blank) in terms of ► SELECT BEST METHOD for going out of
Conceptualization and Information. business, laying off employees, or terminating
a strategic alliance
- concept of good decision

Rational decisions require

- Intelligence, Insight, and Lot of


experience. TYPES OF DECISIONS
The problem should be thoroughly analyzed is one that is FAIRLY STRUCTURED or recurs
and all possible alternatives be fully with some FREQUENCY or both.
considered.
- Programmed decision
- TRUE

DECISION MAKING DEFINED


Many decisions regarding basic operating
Decision-making is defined by (blank) as systems and standard organizational
"Decision-making is the selection of a course transactions fall into this category.
of action among alternative, it is the core of
planning."

- Harold Koontz ► Example: Jollibee's employees are


trained to make food offerings according to
specific procedures.
"Decision-making is a selection based on ► Starbucks and many other organizations,
certain CRITERIA from two or more use programmed decisions to purchase new
alternatives". supplies (coffee beans, cups, napkins).
- George MAIN ELEMENTS OF DECISION MAKING
Decision making is the MOST BASIC and - CONCEPT OF BEST DECISION
fundamental of all managerial activitles.
- Organizational Environment of the Company
- TRUE
- Psychological Elements
Organizational Environment of the Company
- Timing of Decisions
- Centralization - Decentralization
- Communication of Decisions
PREFERENCES, INTELLECTUAL maturity
experience, educational standard, social - Participation of Employees
designation and status etc., of the person
responsible for the decision-making also
exert great influence on dacision-making
Decision must be RATIONAL meaning
- Psychological Elements decisions must conform to the basic (blank)
in terms of Conceptualization and
Since decision making is the act of choosing Information.
one alternative from among a set of
alternatives, We have to first decide that a - concept of good decision
decision has to be made and then secondly
identify a set of alternatives before we select Rational decisions require
one.
- Intelligence, Insight, and Lot of
- TRUE experience.

Normally, PROBLEMS ENCOUNTERED by


management,
The problem should be thoroughly
ANALYZED and all POSSIBLE ALTERNATIVES
be FULLY CONSIDERED.
REQUIRE DECISIONS to:
- TRUE
3
MANAGEMENT SCIENCE

DECISION MAKING CONDITIONS What is MANAGEMENT SCIENCE role in


- Decision making under condition of decision making ?
certainty (Blank) CONTROLS the decision-making
- Decision making under condition of risk process WITHIN the organization. Decisions
are made based on the findings using analysis
- Decision making under condition of of different factors and implementing a
uncertainty variety of METHODOLOGIES.

A (blank) exists when a decision maker - Management science


KNOWS with REASONABLE CERTAINTY,
what the alternatives are, and what An (blank) must be identified to MEASURE
conditions are associated with each SUCCESS.
alternative. - objective measure of performance
- state of certainty The OBJECTIVE must represent the decision
VERY LOW organizational decisions, makers GOAL and serve as a STARTING
however, are made under these conditions. POINT for (BLANK) for the problem.

- Decision making under certainty - developing a model

The COMPLEX and TURBULENT environment Management science acts as a (blank) that
in which businesses exist RARELY allows for helps businesses to achieve RATIONAL
such decisions. GOALS with the use of MULTIPLE SCIENTIFIC
METHODS.
- Decision making under certainty
- medium
Decisions under a (blank) exists when the
availability of each alternative and its (Blank) is an interdisciplinary study that
potential PAYOFFS and costs are all involves and helps in DECISION MAKING and
associated with PROBABILITY ESTIMATES. PROBLEM-SOLVING in human organizatlons.
It is found to have strong links to multiple
- condition of risk streams such as economics, management,
engineering, business consulting, etc.
Decisions under condition of risk are based
on - Management science

- past experiences, relevant information, It is applied in CERTAINTY CONDITION which


the advice of others, and one's own the decision maker has full information
judgment. relating to the problem and also knows all the
alternative solutions. It is an IDEAL WAY in
making decision.

Decision is calculated on the basis of which - CLASSICAL DECISION MODEL


alternatives has the (BLANK) of working
effectively. (union negotiations)

- highest probability There are FOUR MAIN ASSUMPTIONS


behind the classical model:
MOST of the MAJOR decision making in
today's organizations is DONE under these First is a (blank) . The model assumes that the
conditions. decision-maker has CLEARLY SET GOALS and
knows what is expected from him. The
- Decision making under UNCERTAINTY decision maker has clear and well defined
goal to be achieved.
To make effective decisions under these
conditions, managers must SECURE as much - clearly defined problem
RELEVANT INFORMATION as possible and
approach the situation from a LOGICAL and Next is a (blank). The model further suggests
RATIONAL view. that it is in the power of the decision-maker
to ELIMINATE any UNCERTAINTY that might
- TRUE impact the decision. As a result, there are no
risks to account for. All the problems are
(Blank) always play MAJOR ROLES in the precisely defined.
decision making process under these
conditions. (UNCERTAINTY) - certain environment

- Intuition, judgment, and experience

4
MANAGEMENT SCIENCE
The third assumption is(blank) . The
decision-maker is able to IDENTIFY ALL
ALTERNATIVES available to him and to (Blank) is based primarily on the MANAGER'S
evaluate and rank them objectively. All JUDGMENT and EXPERIENCE, it includes the
alternative courses of action and their manager's intuitive "feel" for the problem and
potential consequences are known. The is more an art than a science. If the manager
decision maker can rank the entire has had experience with similar problems or
alternatives on the basis of their preferred if the problem is relatively simple, heavy
consequences. emphasis may be placed upon this.
- full information - Qualitative analysis
The fourth assumption is that(blank). All However, if the manager has had LITTLE
alternative courses of action and their EXPERIENCE with similar problems, or if the
potential consequences are known. The problem is sufficiently COMPLEX, then a
decision maker can RANK the entire (blank) of the problem can be an especially
ALTERNATIVES on the basis of their important consideration in the manager's
preferred consequences. final decision.
- decision-maker is believed to always be - quantitative analysis
acting in the best interests of the
organization When using the quantitative approach, an
(BLANK) will concentrate on the quantitative
The (blank) is supposed to be idealistic and facts or data associated with the problem and
rational but it is RARELY FOUND in practice. develop mathematical expressions that
Therefore, this approach has MANY describe the objectives, constraints, and other
CRITICISMS. Generally, managers operate relationships that exist in the problem. Then,
under the condition of risk and uncertainty by using one or more quantitative methods,
rather than the certainty condition. In many the analyst will make a recommendation
situations, complete goal stability can never based on the quantitative aspects of the
be realized due to continuous environmental problem.
changes. It is applied only in the close system
and not practicable in real life situations - analyst
where environment is changing rapidly.
Reasons when a quantitative approach be
- classical model used in the decision-making process:

Making decisions UNDER CONDITIONS OF ► 1. The problem is complex, and the


RISK AND UNCERTAINTY is one of the MOST manager cannot develop a good solution
IMPORTANT ACTIVITIES that managers without the aid of quantitative analysis.
engage in.
► 2 The problem is especially Important
- Rational Decision making Model (e.g.. a great deal of money is involved), and
the manager desires a thorough analysis
Generally, there is a LACK OF INFORMATION before attempting to make a decision.
and a LIMITED amount of TIME available to
make the decision. ► 3. The problem is new, and the manager
has no previous experience from which to
- Rational Decision making Model draw.
PROCRASTINATING and NOT making a 4. The problem is repetitive, and the manager
decision sometimes has (blank) risk than saves time and effort by relying on
making it. quantitative procedures to make routine
decision recommendations.
- greater

Being the opposite of classical decision


making, (blank) is a model where individuals To successfully apply quantitative analysis to
USE FACTS and information, analysis, and a decision making. the management scientist
step-by-step procedure to come to a decision. must work closely with the manager or user
This model of decision making is a MORE of the results. When BOTH the management
ADVANCED type of decision-making model. scientist and the manager AGREE that the
problem has been adequately structured,
- rational model of decision making work can BEGIN on (BLANK) to represent the
the DECISION-MAKING PROCESS may take problem mathematically. SOLUTION
two basic forms PROCEDURES can then be employed to find
the best solution for the model. This best
- qualitative and quantitative solution for the model then becomes a
recommendation to the decision maker. The

5
MANAGEMENT SCIENCE
process of developing and solving models is 7. Managerial and other problems can be
the ESSENCE of the quantitative analysis expressed in basic relationships and, where a
process. given goal is sought, tlhe model can be
expressed in terms which optimize that goal.
- developing a model
This approach draws many things from the
are REPRESENTATIONS of REAL OBJECTS or decision thcory approach and, in fact,
situations and can be presented in various provides many techniques for rational
forms. decision-making.

- Models

A scale model of an airplane is a A second classification includes models that


representation of a real airplane. Similarly, a are
child's toy truck is a model of a real truck. The
model airplane and toy truck are examples of PHYSICAL IN FORM but DO NOT have the
models that are physical replicas of real same PHYSICAL APPEARANCE as the object
objects. being modeled. Such models are referred to
as (blank)

- analog models.
The model airplane and toy truck are
examples of models that are physical replicas
of real objects. truck. The model airplane and The SPEEDOMETER of an automobile is an
toy truck are examples of models that are analog model; the position of the needle on
physical replicas of real objects. In modeling the dial represents the speed of the
terminology, PHYSICAL REPLICAS are automobile. A thermometer is another analog
referred to as (blank) model representing temperature.
- iconic models

A third classification of models includes


The Management Science Approach to representations of a problem by a system of
Problem Solving symbols and mathematical relationships or
expressions. Such models are referred to as
Management science encompasses a (blank) (blank) and are a critical part of any
to problem solving, which closely parallels quantitative approach to decision making.
what is known as the scientific method for
attacking problems. - Mathematical models

For example, the total profit from the sale of a


- logical, systematic approach
product can be determined by multiplying the
The major features of this approach are as profit per unit by the quantity sold. If we let x
follows: represent the number of units sold and P the
total profit, then, with a profit of 10 per unit,
1. Management is regarded as the problem- WHAT mathematical model (equation)
solving mechanism with the help of defines the total profit earned by selling x
mathematical tools and techniques. units?

2. Management problems can be described in - P= 10x


terms of mathematical symbols and data.
Thus, every managerial activity can be Common objective in organization
quantified
- maximize profit or minimize cost
3. This approach covers decision-making,
Objective function
systems analysis, and some aspects of human
behavior. - maximization of profit
4 Operations research, mathematical tools,
simulation, models, etc., are the basic
methodologies to solve managerial problems.

5. This approach, follows a generally


recognized and ordered series of steps: (1)
observation, (2) definition of the problem, (3)
model construction, (4) model solution, and
(5) Implementation of solution results.

6. The primary focus of this approach is the


mathematical model.

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