MANSCIE-WEEK2

• It is a discipline that applies mathematical and analytical methods to help solve complex problems and improve decision-making in organizations.

  Management Science
• Giorgio Gallo (2018) explains that it emerged from the field of operations research, which was developed during World War II to optimize military operations using mathematical models.
• This period was characterized by the use of empirical and intuitive methods to manage organizations, such as the division of labor, authority, and hierarchy.

  Pre-Scientific Management Era (UP to 1880)
• THE ___ ALSO REFERS TO THE PERIOD BEFORE THE DEVELOPMENT OF SYSTEMATIC AND SCIENTIFIC MANAGEMENT THEORIES UP UNTIL THE LATE 19TH CENTURY, SPECIFICALLY 1880S

  PRE-SCIENTIFIC MANAGEMENT ERA
• DURING THIS ERA, MANAGEMENT WAS BASED ON PERSONAL SKILLS, EXPERIENCES, INTUITION, TRIAL-AND-ERROR, AND COMMON SENSE OF MANAGERS AND WORKERS.

  Pre-Scientific Management Era
• He is the author of the book entitle "The Art of War"

  Sun Tzu
• THIS PERIOD WAS MARKED BY THE APPLICATION OF SCIENTIFIC PRINCIPLES AND METHODS TO IMPROVE THE EFFICIENCY AND PRODUCTIVITY OF WORKERS AND PROCESSES. (1880-1930)(Capital Letters)

  SCIENTIFIC MANAGEMENT ERA
• __ is a system of scientific management that was developed by Frederick Winslow Taylor in the late 19th and early 20th centuries.

  Taylorism
• Taylorism is a system of scientific management that was developed by ___ in the late 19th and early 20th centuries.

  Frederick Winslow Taylor
• It aims to improve worker productivity and efficiency by analyzing and standardizing work processes, dividing labor into specialized tasks, and providing incentives and training for workers.

  Taylorism
• He developed the "twelve principles of efficiency" that covered aspects such as planning, standardization, discipline, and cooperation. He also advocated for the use of incentives and rewards for workers who performed well.


  Harrington Emerson
• Henri Fayol was a French engineer and manager who developed a general theory of business administration that is often called __.

  Fayolism
• He is widely regarded as the father of modern management methods.

  Henri Fayol
• The 14 General Principles of Management: (DiArDiUn2SubReCenScOrESIE)

  • Division of work
  • Authority and responsibility
  • Discipline
  • Unity of command
  • Unity of direction
  • Subordination of individual interest to the general interest
  • Remuneration
  • Centralization
  • Scalar chain
  • Order
  • Equity
  • Stability of tenure of personnel
  • Initiative
  • Esprit de corps
• 1930-1950. It focused on the importance of considering the social and psychological aspects of work, arguing that worker motivation and satisfaction were key to improving productivity. The movement was influenced by the Hawthorne studies, which were conducted by researchers such as Elton Mayo and Fritz Roethlisberger from 1924 to 1932.


  Human Relations Movement
• The Stages of the Historical Development of Management Science: (3)

  Human Relations Movement (1930-1950)

  Operations Research Era (1940-1960)

  Systems Approach Era (1960-Present)
• Operations Research is a branch of applied mathematics that uses scientific methods to optimize decision making and efficiency in organizations. Management science (MS) is a term that encompasses OR and other related disciplines, such as statistics, computer science, and information systems.
• The systems approach era is a period that started in the 1950s and continues to the present day. It is characterized by the application of systems theory and systems thinking to management problems and solutions. Systems theory is a branch of science that studies the structure, behavior, and interactions of complex systems, such as biological, social, or technological systems. 
• Luca Pacioli is considered the father of accounting and bookkeeping. He published the first comprehensive treatise on double-entry accounting in 1494, which laid the foundation for modern accounting practices
• The 18th and 19th Century (1700-1900)

  • The Industrial Revolution and the emergence of large-scale corporations create a need for more sophisticated accounting methods and tools. Management accounting, which focuses on providing information for internal planning and control, becomes a distinct branch of accounting.
• The 18th and 19th Century (1700-1900)

  • William Deloitte (1818-1898): He founded the first professional accounting firm in 1845, which later became Deloitte, one of the Big Four accounting firms. He also pioneered the use of independent audits to verify the financial statements of public companies.
• The 18th and 19th Century (1700-1900)

  • Samuel Price and Edwin Waterhouse: They established Price Waterhouse in 1849, another one of the Big Four accounting firms. They were known for their high standards of professionalism and integrity, and their expertise in international accounting
• The Early 20th Century (1901-1913)

  • Marginal analysis was developed by economists such as Alfred Marshall and Vilfredo Pareto in the late 19th and early 20th centuries, and was used by accountants to determine the optimal level of output, pricing, and resource allocation.
• The Early 20th Century (1901-1913)

  • Budgeting was developed by engineers and managers such as James McKinsey and James Mooney in the early 20th century, and was used by accountants to coordinate and monitor the financial performance and goals of the organization.
• Mid 20th Century (1932-1969)

  • 1955 may be regarded as the date Management Science techniques first began to make prominent appearances in public accounting practice.
• Mid 20th Century (1932-1969)

  • George Dantzig is considered the father of linear programming. He formulated the general linear programming problem and devised the simplex method, an efficient algorithm for solving it, in 1947. He also contributed to the theory and applications of linear programming in various domains, such as transportation, scheduling, inventory, and game theory
• Late 20th Century (1970-2000)

  • Robert S. Kaplan, a leading scholar and innovator in the field of management accounting, has developed and applied AI techniques to various aspects of accounting, such as the activity-based costing, and strategy maps.
• Early 21st Century (2001-Present)

  • Garry Marchant is a professor of accounting and finance at Charles Sturt University, Australia. He has written extensively on the changing role and trends of management accounting in the information age, and the implications of digital technologies, big data such as cloud computing and blockchain, for the accounting profession
• Primary Reasons of Increasing Demand of Management Sciences Practice by CPAs

  1. Complexity and Uncertainty of Business Environment
  2. Advancement of Technology 
  3. Expectations and Needs of Clients and Stakeholders
  4. Competence in Management Science
• Primary Reasons of Increasing Demand of Management Sciences Practice by CPAs

  • Complexity and Uncertainty of Business Environment requires CPAs to deal with large amounts of data, multiple objectives, conflicting constraints, and dynamic situations.
• Primary Reasons of Increasing Demand of Management Sciences Practice by CPAs

  • Advancement of Technology enables CPAs to access and process data faster and more accurately, and to use sophisticated tools and methods, such as optimization, simulation, data mining, artificial intelligence, and machine learning.
• Primary Reasons of Increasing Demand of Management Sciences Practice by CPAs

  • Expectations and Needs of Clients and Stakeholders who demand high-quality, timely, and relevant information and advice from CPAs, and who value the ability of CPAs to solve problems, provide insights, and create value.
• Primary Reasons of Increasing Demand of Management Sciences Practice by CPAs

  • Competence in Management Science Public accountants are being forced to acquire competence in management science techniques through the interaction of these techniques with the auditing process. A second reason is that, when public accountants acquire competence in management science techniques, they find that they have a competitive advantage over other consultants.
• Frederick Taylor is the father of scientific management