Management science , system theory, contingency theory (comparison)

MANAGEMENT SCIENCE, CONTINGENCY
APPROACH & SYSTEM THEORY
Presented BY
TARUN KASHNI

INDEX
1. Definition of Management Science
2. History of Management science
3. Introduction to management science approach
4. Features of management science approach
5. Applications of management science approach
6. Process of management science approach
7. Advantages & disadvantages of management science
approach

INDEX
8. Introduction to system theory
9. History of system theory
10. Applications of system theory
11. Process of system theory
12. Types of system theory
13. Advantages & disadvantages of system theory
14. Introduction to contingency theory
15. History of contingency theory

INDEX
16. Features of contingency theory
17. Advantages & disadvantages of contingency theory
18. Comparison of system vs contingency theory

WHAT MANAGEMENT SCIENCE
 Management Science is the discipline that adapts the scientific approach
for problem solving to help managers make informed decisions. The goal of
management science is to recommend the course of action that is
expected to yield the best outcome with what is available.
 The basic steps in the management science problem solving process
involves Analyzing business situations and building mathematical models
to describe them; Solving the mathematical models;
Communicating/implementing recommendations based on the models and
their solutions.

HISTORY OF MANAGEMENT SCIENCE
 Its origins can be traced to operations research, which became
influential during World War II when the Allied forces recruited scientists
of various disciplines to assist with military operations. In these early
applications, the scientists used simple mathematical models to make
efficient use of limited technologies and resources. The application of
these models to the corporate sector became known as management
science.
 In 1967 Stafford Beer characterized the field of management science as
"the business use of operations research".

MANAGEMENT SICENCE APPROACH
 A scientific method of providing executive departments with a quantitative basis for
decisions regarding operations. Logic and common sense are basic components in
supporting the decision making process. The use of techniques such as (US army
pamphlet 660-3)Statistical inference Mathematical programming Probabilistic
models Network and computer science
 Management science approach is a fast developing one in analyzing and
understanding management. This has contributed significant in developing orderly
thinking in management which has provided exactness in management discipline.

FEATURES
 Management is regarded as the problem-solving mechanism with the help of
mathematical tools and techniques.
 Management problems can be described in terms of mathematical symbols and
data. Thus, every managerial activity can be qualified.
 This approach covers decision-making, systems analysis, and some aspects of
human behavior.
 Operations research, mathematical tools, simulation, models, etc., are the basic
methodologies to solve managerial problems.

APPLICATIONS OF MANAGEMENT SCIENCE
 A number of information systems currently in use by organizations are a result of
management science. The approach has been used to identify and understand the correct
information system strategies.
 The airline industry has used management science to create the scheduling systems for
airlines. This has created the system for ensuring the planes are utilized more efficiently,
together with guaranteeing the crew is rotated in the most efficient way.
 Management science has a number of benefits, which has meant that different fields have
started using it to enhance operational and managerial efficiency. Since its early start as part
of a core approach to the military, the application has found its way to industries as varied as
medical, political, public administration and business. Management science has provided
solutions and identified deeper insights into the industries in a number of ways. The following
examples are among the best examples of how management science can be applied in a
meaningful manner:
 Public administrations have also used management science to identify the flow of water
from water reservoirs. The process identifies the most efficient routes and cost-effective
ways to manage the flow.

PROCESS OF MANAGMEENT SCIENCE
In terms of applying management science in business, there is a six-step formula for
making the most of it. The steps will help streamline business operations and create a
process-based environment for the organization.

1. Identifying business processes in use
The organization must first identify the different management processes it currently has in place.
By identifying each process, it’s also possible to notice the strengths and weaknesses of the
individual management operation.
For example, you’ll identify all the management teams and understand its positive impact on the
workforce. As you identify the processes, you’ll start noticing the patterns of management and
the specific aspects that require changing or tweaking.
2. Analyze the individual processes
As you’ve identified the problem areas, as well as the management processes that are working
effectively, you can start using management science to modify the process. By implementing the
analytical approach, you will notice which processes need scaling, implementation or
adjustment.
This step is the key part of management science; it is about diagnosis and the identification of
the solution. In some instances, it can even help with creating systems that prevent future
problems.

3. Redesign the processes
With the analysis done, the focus should move to identifying the right process for achieving the
right results. Management science tends to present a number of solutions and predictions,
which means the organization has to identify the most effective processes for its needs.
4. Ensure the right resources are in place to improve the processes
Once you’ve identified the processes and the solutions to the management problems, you need
to ensure the organization has the right resources at hand. Redesigning of the processes might
require additional resources, either in terms of money or labor. Ensure the appropriate amount
and type of resources is identifying to guarantee the newly established processes work as
planned.
5. Implement the identified processes
The fifth step is about implementation of the above processes. As mentioned in the section
about the disadvantages of management science, the system can easily cause fragmentation if
the organization is not careful.
Therefore, at this step, you must ensure there’s a community wide buy-in and proper information
available for people to understand the changes, the reasoning behind them, as well as the new
processes themselves.

PROCESS OF MANAGEMENT SCIENCE
6. Review and analyze the effectiveness of the new processes
Finally, the implemented processes require constant analysis and review. Management science
will provide answers and prediction, but just like any other approach to management, it’s not a
magic pill to fix everything.
Therefore, you must make sure you continue to collect data and analyze the effectiveness of the
processes in place. Only this will guarantee they are working as intended and will provide the
organization better chances of tweaking the approach as you go.

ADVANTAGES AND DIADVANTAGES
OF MANAGEMENT SCIENCE
S.No. Advantages Disadvantages
1 It will provide boosts in productivity,
industrial peace and enhance the
organization’s ability to specialize its
products and services
reduced employee-involvement in
decision-making
2 Increased wages decision-making completely away from
employee input
3 Relations between the management and
the labor are harmonious and built on
trust and respect
employees might not have a good grasp
of how the decisions were made and the
justification behind the conclusion
4 Increase industrial peace create fragmentation throughout the
organization,
5 The approach makes the utilization of
resources easier, since the framework
can notice the availability of resources
and the proper use of them.
a situation where teamwork is non-
existent.
6 guaranteeing better relations between
the different stakeholders.
creativity within the organization can
suffer

WHAT SYSTEM THEORY
 The trans disciplinary study of the abstract organization of phenomena,
independent of their substance, type, or spatial or temporal scale of
existence. It investigates both the principles common to all complex
entities, and the (usually mathematical) models which can be used to
describe them.

HISTORY OF SYSTEM THEORY
 Systems theory was proposed in the 1940's by the biologist Ludwig von
Bertalanffy (: General Systems Theory, 1968), and furthered by
Ross Ashby (Introduction to Cybernetics, 1956). von Bertalanffy was
both reacting against reductionism and attempting to revive the unity of
science. He emphasized that real systems are open to, and interact with,
their environments, and that they can acquire qualitatively new
properties through emergence, resulting in continual evolution
 Systems concepts include: system-environment boundary, input, output,
process, state, hierarchy, goal-directedness, and information.

OF SYSTEM THEORY
1 Deals with complexity Not a prescriptive management
theory
2 Takes a holistic view Does not specify tools and techniques
for practicing managers
3 Can easily manage change through
interaction with the environment
Too abstract – difficult to apply in
practical problems
4 Utilises feedback – easy to improve Does not adequately address power
and social inequalities and their
causes
5 Recognises importance of
supersystems

WHAT CONTINGENCY APPROACH
 A contingency approach to management is based on the theory that
management effectiveness is contingent, or dependent, upon the interplay
between the application of management behaviors and specific situations.
In other words, the way you manage should change depending on the
circumstances. One size does not fit all.
 The contingency approach to management finds its foundation in
the contingency theory of leadership effectiveness developed by
management psychologist Fred Fielder. The theory states that leadership
effectiveness, as it relates to group effectiveness, is a component of two
factors: task motivation, or relation motivation, and circumstances. You
measure task motivation, or relation motivation, by the least preferred co-
worker (LPC) scale.

HISTORY OF CONTINGENCY THEORY
 The contingency approach to leadership was influenced by two earlier
research programs endeavoring to pinpoint effective leadership
behavior. During the 1950s, researchers at Ohio State
University administered extensive questionnaires measuring a range of
possible leader behaviors in various organizational contexts. Although
multiple sets of leadership behaviors were originally identified based on
these questionnaires, two types of behaviors proved to be especially
typical of effective leaders:
 (1) consideration leader behaviors that include building good rapport
and interpersonal relationships and showing support and concern for
subordinates and
 (2) initiating structure leader behaviors that provided structure (e.g.,
role assignment, planning, scheduling) to ensure task completion and
goal attainment.

FEATURES
 The contingency approach focuses on the variable nature of businesses and
organizations.
 The contingency approach to management generally depends upon the
complexity of a problem.
 It is also called the ‘if-then’ approach to management. The ‘if section’ represents
an independent variable or a particular problem or a situation. The ‘then part’
represents the action to be taken accordingly or the dependent variable of the
problem.
 The contingency theory depends upon both the internal as well as external factors
of an organization.

OF CONTINGENCY THEORY
1 The approach is adaptive in nature. sometimes wastage of resources time
and money.
2 The managers can consider the
entire factors, analyze situations
thoroughly and then take the
appropriate decision
managers may not be able to dig
deeper into the situation and they
might take superficial decisions.
3 Due to this approach the scope of
leadership has widened
It is not always feasible for the
managers
4 The contingency approach allows
an organization to choose different
leaders as per their leadership
styles in various contexts.
The contingency approach might be
complex to implement as it is not
fixed.

SYSTEM THEORY VS CONTINGENCY THEORY

Management science , system theory, contingency theory (comparison)

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