ABOUT QUANTITATIVE TECHNIQUE - Quantitative Techniques for management

What is Quantitative techniques in Management ?

Quantitative techniques are needed to process the information needed for effective planning, leading organizing and controlling. Qualitative and quantitative methods are productive tools in solving organizational problems. They are behavioral and mathematical techniques respectively that can provide a diversity of knowledge. Quantitative analysis concentrates on facts, data and numerical aspects associated with the problem.

The emphasis is on the development of mathematical expression to describe the objectives and constraints connected with the problem. Thus, the administrator’s quantitative knowledge can help enhance the decision- making process. In this approach, past data is used in determining decisions that would prove most valuable in the future. The use of past data in a systematic manner and constructing it into a suitable model for future use comprises a major part of scientific management.

For example, consider a person investing in fixed deposit in a bank, or in shares of a company, or mutual funds, or in Life Insurance Corporation. The expected return on investments will vary depending upon the interest and time period. We can use the scientific management analysis to find out how much the investments made will be worth in the future. There are many scientific method software packages that have been developed to determine and analyze the problems.

In case of non-availability of past data where quantitative data is limited, qualitative factors play a major role in making decisions. Qualitative factors are important in situations like the introduction of breakthrough technologies. In today’s complex and competitive global market, use of quantitative techniques with support of qualitative factors is paramount.

Application of scientific management and Analysis is more appropriate when there is not much of variation in problems due to external factors, and where input values are steady. In such cases, a model can be developed to suit the problem which helps us to take decisions faster. In today's complex and competitive global marketplace, use of Quantitative Techniques with support of qualitative factors is necessary.

Today, several quantitative techniques are available to solve managerial problems and use of these techniques helps managers to become explicit about their objectives and provides additional information to select on optimal decision. This approach starts with data like raw material for a factory which is manipulated or processed into information that is valuable to people making decision. This processing and manipulating of raw data into meaningful information is the heart of scientific management analysis.

All rights reserved © 2018 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status

Quantitative Techniques for management Topics