Management Science Theory

Management science theory has its origin in Military System of organization. During World War 2, British government saw many problems at warfare. And, the government formed a team consisting mathematicians, scientists and physicians. Then, the team was called operation research team. Operation research team got success in solving the problem of planning, resource allocation, material supplies, etc.

Basically, management science theory focused on development of mathematical model. A mathematical model is a simplified representation of a system, process and relationship. Basically, management science theory focuses on model equation and representation of similar reality. This approach believes that most of the organizational and business problems can be better solved using different mathematical and statistical techniques. Complex problem relating to planning inventory operation and transportation are easily solved through models and other mathematical tools. The development of computer and other information’s technology had extended management science approach in many other areas of business. Management science theory uses linear programming, critical path method, program evaluation and review technique, games theory and break even analysis to make decision.

There are three branches of management science theory:-

1.       Quantitative Management: - Quantitative management utilizes mathematical techniques such as linear programming, modeling, and queuing theory to help managers to make right decision.

2.       Operation Management: - Operation management is concerned with helping the organization more efficiently produce its product and service and can be applied on wide range of problems. Operation management is somehow less mathematical and statistically sophisticated than management science and can be directly applied to managerial situation. Operation management or operation research provides managers with a set of technique that can be used to utilize organizational production system to increase efficiency.

3.       Management Information System: - Management Information system is a comprehensive and systematic system which obtains stores and provides different informations with regards to the business and management. It is a computerized system which provides timely and accurate information.