Business managers must employ quantitative methods to achieve maximum efficiency.
Business management is a field that contains more than just linguistic strategies; mathematical, or quantitative methods, also can help improve management techniques. The quantitative technique appropriate for the management situation relies on what the goal of the application is. With the variety of quantitative techniques that can be applied, researchers and employers can select from several models and analysis methods to investigate policy efficiency and the improvement of management strategies.
Linear Programming
Linear programming is a mathematical method of optimization. This quantitative technique uses linear equations and inequalities to model a business management problem. Managers use it to find the optimal solutions to allocation resource problems. In situations where resources are limited -- virtually all business management situations -- managers must make decisions whether to hire; who to hire; where to allocate employees; and what resources should be given to whom. Linear programming allows managers to find objective solutions to these problems.
Financial Mathematics
Because management mainly deals with employees and their operations, and these employees and operations are evaluated in terms of cost and time, financial mathematics proves to be an exceptionally important evaluation technique. Financial mathematics allows managers to place a monetary value on almost every aspect of the business, which allows the manager to assess operations mathematically. A key point in financial mathematics is the linking of money, time and risk. The evaluation of employees and business strategies can be employed through these three aspects, allowing managers to better understand what is and is not effective for the company.
Statistical Analyses
Statistical analyses allow you to interpret large sets of raw data in applicable ways. The transformation of quantitative data into summaries, relationships, trends and patterns allows business managers to understand the current state of management and develop new policies to improve efficiency. Because of the large set of variables that one can consider in management analyses, statistics is particularly useful as it can help a manager learn which variables are truly important in influencing profit and efficiency.
Operations Research
Many management decisions rely on understanding what is required in a task. Tasks can require a variety of resources, including time, cost and employees. Operations research provides managers an opportunity to locate the most efficient procedures for completing a certain task. Many aspects of operations research, including queuing theory and network models, allow managers to visualize his options in assigning resources to a task, as well as find optimal resolutions for logistic problems.
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