IMPORTANCE OF QUANTITATIVE TECHNIQUES IN …

1 AMETJ ournal ofManagement71 Jan June2011 IMPORTANCEOFQUANTITATIVETECHNIQUESINMANA GERIALDECISIONSA bstractTheterm Quantitativetechniques refers to themethods used to quantifythevariables in meanstheapplication of subjects likemathematics and statistics,econometricsand operations researchto understandand a studyof theapplication of differentialcalculus,integralcalculus and matrixalgebra,measuresofcentraltendencie s,measures of averages,correlation also includes theapplication of thetechniques ofmanagement sciencesuch asLinearprogramming, Gametheory,CPMandPERT analyses to business usefulness ofQuantitativeTechniques in sevenfunctional areas ofManagement arediscussed in this :Truly,the importanceof Quantitativeproficiencycannotbeoverempha sizedto ManagementProfessionals!Thisbody ofknowledgeinvolvingquantitativeapproach eshasbeengivenvariousnames like-BusinessMathematics,BusinessStatist ics,OperationsResearch, withrationalapproaches todecisionmakingbasedonthescientificmeth od.

2 * ,considerthefollowingsimplemathematical problem:A) A Mayor ofa townwantstoimprove the busservicesbetween 2 destinationsfallingwithinhisdistrict. Thedestinationsare 1hourjourneyapartandhewantsthebusservice sinsuchaway thata travelerneednotwaitformore than20minutestime, ,how manybusesaretotallyrequired?Forconvenien cesakeassumethatthe buseswillbeoperationalfor 24hourscontinuouslyandalsoignorelunchbre aks,teabreaksetc B) 10blackcolourcards(bothsidesblack)and20g reencolourcards(both sidesgreen)areavailablein ,howmanycardsyoushould pick up, beforeyouhave2cards ofthesamecolour?(Answersaregivenattheend )AMETJ ournal ofManagement72 Jan a trainedpersonwillsolvethispuzzlewithin afewminutes,a personwhoisnotequipped with Quantitativeinputs, developments thatoccurred duringthepost-worldwarIIperiod,ledtotheg rowthanduseofquantitativemethodsin nonmilitaryapplications.

3 One,themostsignificantdevelopmentwasthe 1947. Secondly, should,toacertainextentbefamiliar with techniquesto dealwithnumbersinorder tomakerightdecisionat theright ofmanagementareadvised tohaveaworking knowledgeofmathematicsandstatisticsappli edto businessproblemsfora successfulcareerasa managerofmultinationalcompanies. , themanagersareexposedtodifferentsoftware suchasSPSS, EXCEL,SAS,SAP, EViews sothatthedecisionmakingprocessbecomesnot only (MS)isan inter-disciplinarybranchofappliedmathema tics devoted to optimaldecisionplanning withstrong linkswitheconomics, business,engineeringandother , strategiesandanalytical methodsincludingmathematicalmodelling, statisticsandnumericalalgorithmstoimprov eanorganisation'sability toenactrationaland meaningfulmanagementdecisionsbyarrivinga toptimal ornearoptimalsolutions tocomplexdecision , management scienceshelpbusinessestoachievetheirgoal susingthe scientificmethodsof isconcernedwithdevelopingandapplyingmode lsandconceptsthatmayproveuseful in helping toelucidatemanagementissuesandsolve managerialproblems,aswellasdesigningandd evelopingnewandbettermodelsoforganisatio nalexcellence.

4 Theapplication ofthesemodels within thecorporate problemsolving EvaluatethealternativesAMETJ ournal ofManagement73 Jan theimportanceofquantitative marketingisaboutdata,facts, QUANTITATIVE marketingastheutilizationoffactsandknowl edge tounderstandbetter thebehavior ofconsumersacrossthe marketingenterprise tomaximize AnalyticsBusinessAnalytics isaspecializeddomain thathasbeengrowingatanannualrate jobbeingchallenging,diversifiedandrefres hing,thepaypacketisquiteattractive. Analytics includecomplexstatisticalanalysis, ,predictivescience, strategyscience,fraudanalytics,creditris kanalysis,marketinganalytics, ) tools, iscomputerassistedmarketinganalysisand managers mustmakeongoingdecisionsaboutproductfeat ures, prices, distribution optionsandsalescompensation makingthese decisions,managerschoosefromamongalterna tivecoursesofactioninacomplexand uncertain world.

5 Marketingengineering providesmanagerswithnewconcepts, methodsandtechnologies DataMiningKnowledge ofadvanceddata miningtechniquesenables marketers togatherandorganizedataandaddresskeybusi nessquestions, to learn howtoleveragethegrowing ,logisticregressionanalysis,decisiontree s,factoranalysis,clusteranalysis,risk modeling, neuralnetworks,Web loganalysis,and marketbasketanalysisareused to organize,analyseand summarisethedataand makerelevantinferencesaboutthe behaviour of ofManagement74 Jan locationPlantexpansionand newfacilityconstructionareamongthe mostfarreaching isameansofassigning quantitativevalues toall thefactorsrelatedtoeachdecisionandderivi ng materialsandfinishedgoodssothattheycande cidethelocation a AidedDesign(CAD),Computer AidedManufacturing(CAM), Grouptechnology(GT),andComputerIntegrate dManufacturingsystem(CIM)aredesignedtoin tegrateproductdesignandmanufacturingacti vitieswith both thesuppliersofmaterialsandcomponentsas wellasthecustomers ofthefirm s doneusingsoftware suchSIMSCRIPT,GPSS,DYNAMO,SLAM, set ofactivitiesthat mustbecompletedtoachieveaspecificobjecti ve withinalimitedtimeperiodby networkmodelsCritical path methodand programevaluationandreviewtechnique usedforprojectscheduling6.

6 Interviewsand ,ifyouraimistocomparejobsforpay purposes,youmayneedtosay that,ineffect,JobAistwiceaschallengingas JobBandsoisworthtwice ,we mustbeable positionanalysisquestionnaireandthe ofManagement75 Jan (PAQ):Aquestionnaire usedtocollectquantifiabledataconcerning thedutiesandresponsibilitiesof 194 items,each ofwhich(suchaswrittenmaterials) , written materialsreceived arating of4,indicatingthatwrittenmaterials(like books,reports,andofficenotes)playaconsid erableroleinthis of thePAQisthatitprovidesa QUANTITATIVE score orprofileofanyjobintermsofhowthatjobrate sonfivebasicactivities:(1)havingdecision making /communication /socialresponsibilities,(2) performingskilledactivities,(3)beingphys icallyactive,(4)operatingvehicles/equipm ent,and(5) ,itletsyouassigna quantitativescore toeachjobbasedonitsdecisionmaking, skilledactivity, physicalactivity, vehicle/equipmentoperation,and information quantitativelycompare (DOL) Jobanalysisprocedure.

7 Astandardizedmethodby whichdifferentjobscanbequantitativelyrat ed,classified,andcompared based on USDepartment(DOL) jobanalysisprocedurealsoprovides astandardizedmethodby whichtoquantitativelyrate,classifyandcom paredifferent ,their volatility, ofthepropertiesof time timeserieswhichexhibitauto-regressionhav eyieldedimportant studies offinancialmarkets,increasingourknowledg e offinancialvariables' thevaluationofdifferentclassesofsecuriti es,analysescriteriaforguidinginvestment decisions,considers themeasurementofassetriskandreturnanddis cussesstatistical usedintheanalysisoffinancialinstrumentsa ndfinancialmarkets,includingtheAMETJ ournal ofManagement76 Jan ,frequencydistributions,riskandprobabili ty, to thepuzzle:A) side, in )A simpleproblem ofProbability:2or3 yearsofexperienceinteaching Quantitativesubjects, ResearchMethodology,ProductionManagement & alliedSubjectsQuotableQuotes Thebestexerciseis to bend down in orderto lift somebody.

8 Happiness is likeelectricity; it isavailableeverywhere,youhavetoknowjustw hereto plugin. Worriesarelikebabes; thelongeryou nursethem , thebiggertheybecome. Whenyou talk,youalreadyknow thecontents;whenyouheartherecouldbesomet hingnew. Nothingbighaseverbeenachieved,withoutbei ngpassionateabout it. Fear& greedaregenerallycredited to betheultimatemotivators ,achieve &serveothersareasstrong. No onehas damaged hiseyesbylookingat thebrightersideoflife Oldageis aquestion ofmind overmatter; ifyoudon t mind, it doesn t matter