Delitos de riesgo.

KEY CONCEPT

Management science or operations management involves the application of the scientific method to problems arising in the operation of a system, and the solving of these problems by applying mathematical equations representing the system. Churchman, Ackoff and Ackoff

As the definition in the box shows, the purpose of adopting management science approach, for instance, by a manager is for him to decide how large a new plant might be. Such a model usually involves a number of equations relating to aspects such as projected production volume of the plant, construction cost per square meter, utility costs for plants of different sizes. Solutions for these and similar issues would therefore, provide the manager with useful guidelines in deciding on the size of the plant he really requires.

Management science approach can be traced to the World War II when leading scientists were invited by the Allied Forces, to help solve complex operational problems that existed in the military. The scientists who were arranged in groups were eventually called Operation Research (OR) groups.

3.2 METHOD:Management science method involves the following:

i) Systematic observation of the system that its behaviour must be explained to solve the existing problem.

ii) Use of these specific methods to construct a generalized framework or model that would be consistent with the specific observations and which the consequences of changing the system can be predicted.

iii) Use of the model to establish how the system would behave under conditions that have not been observed, but could be observed if the changes weremade.

iv) Testing the model by performing an experiment on the actual system to find out if the effects of the predicted changes using the model would actually occur when the changes are made.

3.3 APPLICATION OF MANAGEMENTSCIENCE

Since the end of the World War II, indications are that management science approach has been applied in many organizational and industrial settings (Aggarawal, 2002, Schumacher, 1997) to arrive at some important decisions or solve problems.

Management science has been used in analyzing large number of variables dealing with complex economic decisions. On the other hand it has been used in developing

Mathematical models very much enhanced by the use of the computer. In fact the use of personal computers has enhanced managers’ interest in the use of tools and techniques of management science in their practice.

In specific terms, management science approach has been used by many companies applied to various management problems including production scheduling and product marketing. Organizations such as Delta Airlines and American Airlines use management science models to plan their flight schedules, to establish rate structure and maintenance periods.

Again, managers are known to use network models, probability and inventory models to aid their operational process. However these management science applications are yet to find a place in the management of TVE in Nigeria.

3.4 OPERATIONS MANAGEMENT

Operations management is more like, or extension of management science. This is because its main focus is on the various operations or processes that an organization uses to transform its resources into finished products, goods or services.

Operations management decisions may involve the following:

1) Where a plant should becited 2) How it should be arranged

3) The amount of inventory it should carry;and 4) How the finished products should be distributed.

A number of American-based multi-national organizations such as IBM, Black and Decker, as well as General Motors are reputed to have successfully used operations management in their organizations.

3.5 MANAGEMENT INFORMATION SYSTEM

Management Information System (MIS) represents the third-tier of the quantitative school of management. Management information system may be defined as an integrated manual and/or computer system that provides information to support the operations management and decision making functions of an organization (Appleby, 1994). Institution of MIS in an organization involves planning to gather information from both internal and external sources and ensuring that before any such information is put into the MIS data base its usefulness has been reasonably evaluated.

All useful information is put in the machine in a readable form in order for files to be created, updated and manipulated by the computer.

Since it is not always possible to fully integrate all areas of organizational functions such as finance, marketing, human resource management and manufacturing into an MIS, separate planning models are usually recommended for each functional area,

and to see that each of those functional areas use a common database, whenever it is possible to do so.

Available information shows that financial applications usually dominate the MIS usage in the USA. These include the following:

i) Cash flow analysis: Financial forecasting ii) Balance sheet preparation: Profit planning iii) Long-term forecasts:Budgeting

iv) Sales forecast: Investment analysis v) Financial analysis

You should note that the use of MIS in planning allows us to do the following;

i) Evaluate alternative long and short-term planning ii) Effect financial projections and decision making; and

iii) Prepare reports and analyze relevant data. Methods that are available for

manipulating data include mathematical models, linear programming, and econometrics.

3.6 MIS DATA AND TVE

The data areas which can easily be included in MIS data base include finance, student admission, examinations and graduation records. Personnel records including human resource management. However, while these records are available, their integration into the MIS is yetto be adopted by most Nigerian universities, polytechnics and colleges of education. A few institutions such as the university of Benin that have attempted in integrated student academic records are yet to achieve any significant success in the area.

3.7 IMPLICATIONS OF QUANTITATIVE APPROACH TOTVE

From what we have learned so far, the quantitative approach to management has made enormous impact in organizational planning and control, and in decision making. Most large organizations have come to rely on management science as important approach to capital budgeting, product scheduling, and marketing scheduling. In Nigeria quantitative approach is yet to find its place in the management of education generally and TVE in particular.

This situation arises because managers of academic institutions do not seem to very se riously pay attention to quantitative techniques in their management practice. A more plausible reason for not using quantitative techniques is that academic institutions are not profit oriented and therefore do not seem to have need to compete for their inputs (students).

However, one area where there is a strong need for academic institutions to strive towards is the institution of MIS, in view of the impact information and communication technology is beginning to have in tertiary education institutions and the need to efficiently deal with the various academic and personnel records that are regularly generated by these institutions.

STUDENT SELF ASSESSMENT TEST

List the main points you have learnt about the three sub areas of quantitative school of management.

4.0 CONCLUSION

The quantitative school or management thought present a rather challenging but interesting perspective of managerial problem solving. In view of the fact that its application covers those complex organizational problems such as project planning, and forecasting of market and business trends, its usefulness as a management tool, can hardly be ignored.

5.0 SUMMARY

The quantitative school of management thought has three main branches, namely, management science, operations management and management information systems.

Management science involves the application of the scientific method to solve problems which arise in the operation of a system, and the solving of such problems through the use of mathematical equations. Management science provides managers useful tool for solving problems which involve plant, construction cost, production scheduling, and forecasting of profit and decision making.

Operations management focuses on various operations or processes which an organization uses to transform its resources into finished goods.

Management information system is useful for the storage and making required information available to various levels of management and for making management decisions.

6.0 TEACHER MARKEDASSIGNMENT

1a. What historical factor led to the emergence of quantitative approach to management?

b. List the areas of management that quantitative technique could be used in solving organizational problems?

2a. Explain whyMIS is not popular in Nigerian TVE institutions?

b. Discuss the areas which MIS could be introduced in the Nigerian technical education institutions?

7.0 REFERENCES

Aggarawal, R (2002). Business Communication, and organization and management.

New Delhi Taxman’s Pub.

Appleby, Robert C. (1994) Modern business administration. London: Financial Times/PitmanPublishing.

Churchman, West, Ackoff, Russel, and Ackoff, Leonard, E. (1957) Introduction of operations research. N. York: John Wiley.

Certo, Samuel C. (1992) Principles of modern management: Functions and systems.

Lowa; William C. Brown Pub.

Schumacher, C.C. and Smith, B.E. (1965) “A sample of survey of industrial operations research activities II”. Operations Research. (13): 1023-27.

Udosen, U.J. (1977) Worked examples in network analysis with application of Chain Equations. Uyo: Essen Classic Nigeria Company.

Halidi, L. & Mohammed, A. S. (2019). Introduction to Operations Research: Theory and Applications. LAP Lambart Publishing.

MODULE: 1

UNIT 5: CONTEMPORARY MANAGEMENT THEORIES CONTENT