- Main features
- Adoption of the rational thinking model
- Importance of an interdisciplinary team
- The 6 main methods of the quantitative school of management
- 1- Game theory
- 2- Linear programming
- 3- Dynamic programming
- 4- Probability theory
- 5- Theory of queues
- 6- Administrative econometrics
- Mathematical models related to decision making
- References
The quantitative school of administration is a management approach based on the use of statistics, information models and computer simulations as tools for improving decision-making.
When the Second World War began, the British in search of new war tactics formed interdisciplinary operations research teams. Due to the success of this practice, other countries copied the model and formed teams with similar purposes.
After the war, operations research was used as an administrative tool for solving problems in industries. This is how the quantitative school of administration emerged.
Main features
Adoption of the rational thinking model
The quantitative school adopts the rational thinking model as the main strategy to deal with conflicts that may affect organizations.
In this sense, in management, the analysis of each part of the operational process is more important than the realization of the company's own regular operations.
Importance of an interdisciplinary team
The solution of problems from the perspective of the school begins with the formation of an interdisciplinary team.
This works by formulating a mathematical model that simulates the problem or conflict to be solved.
Then, symbolically, all the factors inherent to the problem, their relationships and their direct and indirect consequences are reflected.
From there, the conclusions that guide correct decision making, the main purpose of the school, are derived.
The 6 main methods of the quantitative school of management
There are methods that allow evaluating from the probabilistic the possible behavior of the variables that affect the fulfillment of the organization's objectives, such as production, costs and prices, among many others.
Starting from the use of mathematical equations and models, the quantitative school relies mainly on six tools and methods:
1- Game theory
It is a conflict analysis methodology in which two people intervene.
Each one is supplied with a limited number of strategies that must be proposed as an alternative for each action consulted. Then the results are calculated by a matrix.
2- Linear programming
It allows optimizing resources in multiple option operations. It is used as a method of reducing costs and maximizing efficiency.
3- Dynamic programming
It is used when the final objective is affected by previous instances that, if configured, would prevent full compliance.
4- Probability theory
Helps in making the right decisions when there are several solution options.
5- Theory of queues
By analyzing the waiting queues, this tool allows reaching decisions that merit an optimal balance between the value of the cost associated with the service and the cost referred to the losses due to said waiting.
6- Administrative econometrics
It is a support technique in understanding the behavior of the markets.
Mathematical models related to decision making
The quantitative school of administration defends the proposition that business management can be improved if the elements that affect it can be quantitatively measured.
To do this, he proposes the analysis of organizational problems from the perspective of mathematical models related to decision-making.
These models are:
- Operations research.
- Electronic data management.
- Decision theories.
- Administrative science.
- Statistical methods.
After analyzing the conflictive situations, the administration would be given under the management of the resulting quantitative variables and the use of mathematical prototypes that improve efficiency.
References
- Quantitative School. (2010, September 12). In: Escuelacuantitativa.blogspot.com
- Quantitative or Quantitative School of Administration. (2006, November 28). In: edukativos.com
- Quantitative School of Management: Improving Managerial Decision-Making. (sf). Retrieved on December 10, 2017 from: study.com
- Quantitative School of Management. (sf). Retrieved on December 10, 2017 from: mba-tutorials.com
- Quantitative School of Management. (sf). Retrieved on December 10, 2017 from: cliffsnotes.com