1. Quantitative Management And Management Today

2. Argyris’s Theory of Adult Personality. Classical Management practices were flawed because they provided no freedom and required no imagination from the employees. He thought that management should allow the Adult Personality to develop by: Increasing task responsibility Increasing task variety Using participative decision-making.

3. Quantitative Analysis in Management Management science (or operations research) foundations This way of thinking uses mathematical techniques to solve management problems Techniques include:

4. Mathematical forecasting Inventory modelling Linear programming Queuing Theory Network Models Simulations

5. 1. Mathematical Forecasting Makes future projections that are useful for planning. It makes educated assumptions based on known information. “If we used “X” amount of boxes for January, we can assume that we will need “Y” for February.”

6. Inventory Modelling This helps to control inventory by figuring out how much to order and when. Many retail businesses have “minimum level information.” This allows managers to focus elsewhere, knowing inventory is taken care of.

7. Linear Programming This determines how to best allocate resources between different uses. Software can figure out where the most profit will come from, what is easier, and uses the most efficient method.

8. Queuing Theory This allocates service personnel or workstations to minimize customer waiting time and service cost. Think of places you have queued up…where do you think we could apply this?

10. Network Models This breaks up complicated tasks into smaller parts to allow for better analysis, planning, and control. Think of the IBP from last semester?

11. Simulations For developing models of problems so different solutions under various assumptions can be tested.

12. Quantitative Analysis in Management (Today!) Today, large companies hire staff specialists to help management apply varying techniques. Software and hardware has made management a lot easier. If management is a “game of numbers,” having software do it is a benefit. Good judgment and appreciation of human factors has to be used with these aids.

13. Systems View and Contingency Thinking What is a system? How can we apply that to business and to organizations?

14. Systems View and Contingency Thinking Systems are collections of interrelated parts that function together to achieve a common purpose. Are businesses systems? A subsystem is a smaller component of a larger system. Do you remember what an open system is?

15. Open systems We have looked at open systems already. -LOOK AT THE BOARD.

16. Contingency Thinking Tries to match managers’ responses with problems and opportunities unique to different situations. There is not “one best way.” Appropriate way depends on the situation.

17. Management themes in the 21 st Century Quality and performance excellence -Managers and workers in progressive organizations are quality conscious. -Quality and competitive advantage are linked (Obviously ) Total Quality Management -Approach to continuous quality improvement for a total organization.

18. Total Quality Management Edward Demming – Statistical expert who was hired by various companies after the Second World War to focus on productivity. He spent a lot of time helping Japanese companies reach efficiency again. Joseph Juran – Spoke of the “vital few” issues instead of the “trivial many.” - Coined the “80/20 Principle” that said that 80 percent of the problems in a company are caused by 20 percent of the operations These ideas were partly responsible for things like ISO and various national awards for businesses.

19. “Value Chains” A value chain is the sequence of activities that turn raw material into finished goods or services

20. Eight attributes for performance excellence 1. Bias towards action -making decisions, getting things done. 2. Closeness to the customer -knowing customer needs and valuing their satisfaction 3. Autonomy and entrepreneurship -supporting innovation, change, and risk taking 4. Productivity through people -valuing human resources for quality and performance

21. 5. Hands-on, value-driven -having a clear sense of purpose 6. Sticking to the knitting -what the hell does this mean?? 7. Simple form and lean staff -minimizing levels of management and staff personnel. 8. Simultaneous loose-tight policy -Another head scratcher.

22. Global Awareness Pressure for quality and performance excellence is created by a highly competitive global economy. This has promoted interest in new management concepts like: -Process engineering, Virtual organizations, Agile factories, Network firms. -Japanese management practices Adoption to Theory Z management practices.

23. Theory Z This is a theory of management that focuses on long-term employment, consensus, teamwork, career planning and development, lateral job movements.

24. Learning Organizations Modern businesses must learn to become learning organizations. This means it continuously changes and improves, and learns from experiences. They must have: -Mental models – Sets aside old ways of thinking -Personal mastery – becomes self-aware and open to others -Systems thinking – learns how the whole organization works -Shared vision – understanding and agreement of the plan of action -Team learning – working together to accomplish the plan.

25. So. ALLLLL of that said… 21 st century managers must be: Global Strategists Masters of technology Inspiring leaders Models of ethical behaviour