qtb

• MANAGEMENT is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.
• RESOURCES:

  1. Human
  2. Financial
  3. Raw materials
  4. Technological
  5. Information
• MANAGEMENT FUNCTIONS:

  1. Planning. Select goals and ways to attain them. Where does the organization want to be in the future and how to get there?
  2. Organizing. Assign responsibility for task accomplishment
  3. Leading. Use influence to motivate employees. 
  4. Controlling. Monitor activities and make corrections. By nature, business is a risk but risks have to be taken in the best interest of clients. 
• PERFORMANCE

  1. Efficiency. Amount of resources used to achieve an organizational goal. 
  2. Effectiveness. The degree to which an organization achieves a stated goal. 
• CATEGORIES OF MANAGEMENT SKILLS 

  1. Technical skills. Proficiency in the performance of a specific task.
  2. Human skills. Ability to work through other people and to work effectively as a group member. 
  3. Conceptual skills. Ability to see the organization as a whole system and the relationship among its parts. Knowing where the team fits to the total organization and how the organization fits to the industry, community, and the broader business and social environment. 
• Scientific Management

  Efficiency and labor productivity
• Frederick Winslow Taylor


  • Engineer
  • Emphasized that workers can be retooled like machines, their physical and mental gears recalibrated for better productivity
• Pre-Taylor era


  Employee himself used to choose or plan how he had to do his work and what machines and equipment would be necessary to perform the work
• Taylor's approach

  Divided the two functions of planning and doing
• Henry Gantt


  Developed the Gantt chart
• Frank B. and Lillian M. Gibreth


  Pioneered time and motion study
• A manager makes decisions!

  It is important to make QUANTITATIVE DECISIONS. 
• Bureaucratic Management


  Based on rational authority
• Max Weber


  • Devised a theory of bureaucratic management that emphasized the need for a firmly defined hierarchy governed by clearly defined regulations and lines of authority
  • Everyone gets equal treatment, and everyone knows the rules
• Administrative Management

  Focused on the total organization
• Henri Fayol


  • Division of work
  • Authority and responsibility
  • Discipline
  • Unity of command
• Mary Parker


  Emphasized the importance of people rather than engineering techniques
• Management Science


  • The study of problem-solving and decision-making in organizations
  • Applying the scientific method to management, enabling managers to make decisions for an organization and improve its performance
• Problem-solving is central to management
• Managerial problems can be quantified and described in mathematical terms
• Probability is the likelihood of an event happening.
• Mathematical tools, techniques, simulations, and models can enhance the problem-solving process
• Management science is interdisciplinary, which means it involves two or more academic or professional disciplines
• Disciplines that management science intersects with

  • Engineering
  • Game theory
  • Psychology
  • Project management
  • Data science
  • Supply chain management
•  Probabilities can be given as a percent, a decimal or a reduced fraction.
• Types of Probability

  Classical Approach to Probability (Theoretical Probability)

  Empirical Probability (Experimental or Relative Frequency Probability)

  Subjective probability
• Classical Approach to Probability (Theoretical Probability)

  P(A) = Number of ways A can occur / Number of different outcomes is S.
• Empirical Probability (Experimental or Relative Frequency Probability)

  The experiment is performed many times and the number of times that event A occurs is recorded. Then the probability is approximated by finding the relative frequency.
• experimental probabilities since they are found by actually doing the experiment or simulation.
• Subjective probability is the probability of event A estimated using previous knowledge and is someone’s opinion.
• 1. Restricted Conjunction Rule

  RULE: P(A and B) = P(A) X P(B)
• 2. General Conjunction Rule

  RULE: P(A and B) = P(A) X P(B given A)
• 3. Restricted Disjunction Rule

  RULE: P(A or B) = P(A) + P(B)
• 4. General Disjunction Rule

  RULE: P(A or B) = P(A) + P(B) - P(A and B)
• Decision theory represents a general approach to decision making. It is suitable for a wide range of operations management decisions.
• The information for a decision is often summarized in a payoff table
• bounded rationality, we are not inclined to find all the necessary information to make a rational decision due to cognitive and temporal limitations.
• Suboptimization can occur as a result of different departments’ attempts to reach a solution that is optimum for each.
• Decision Process

  1. Identify the problem
  2. Specify the objectives and criteria for the solution
  3. Develop suitable alternatives. 
  4. Analyze and compare alternatives
  5. Select the best alternative.
  6. Implement the solution.
  7. Monitor to see that desired result is achieved.
• Decision Environments

  1. Certainty Environment - relevant parameters such as costs, capacity, and demand have known values.
  2. Risk Environment - certain parameters have probabilistic outcomes.
  3. Uncertainty Environment - it is impossible to assess the likelihood of various possible future events.