Management Science

Management is the process of utilizing material and human resources to accomplish designated objectives by effective leadership and decision making. Management science, which experienced rapid growth during 1950s and 60s, therefore, is the adoption of scientific method, i.e. the application of systematic procedures, to solve management problems.

The methodology of management science is the integration of processes such as establishing objectives, allocating resources and organizing activity according to a predetermined schedule. This 'system approach' provides a bridge between what is needed and what is feasible and practical.

The tool of management science is mathematics, probability and statistics, operations research, modeling, simulation, decision theory while its techniques includes the selection of variables and relationship involved, structuring of problem, selection of criterion and handling of risks and uncertainties.

In the system concept, any organization is seen as a system made up of holons, each having their own goals. Traditional management based on a vertical flow of authorities and information (hierarchy) and emphasized only subsystems. Due to the explosion of information and complexity of today's organizations, a so-called 'management information system' evolved in the 1970s and 80s which requires the flow of information upward and downward within the organizations (holarchy) and the consideration of the entire system's goal. The traditional hierarchy of management is shown here:

	DECISION			INFORMATION

Unstructured, based	STRATEGIC	Analysis
on experience		PLANNING	Functional Relations
			   ^
			   |
Partial Programmed	MANAGEMENT	Summary Information
			CONTROL
			   ^
			   |
Highly structured	OPERATION	Aggregate Data
			CONTROL
			   ^
			   |
Completely Programmed	OPERATION	Detailed Information
					Raw Data
Fig.1 Hierarchy of Management Science

	    MANAGEMENT CONTROL
           	    ^
	            |
		    v
E	INFORMATION FEEDBACK SYSTEM		E
N	^	    ^		   ^		N
V	|	    |		   |		V
I	v	    v              v		I
R    ECONOMIC      ORGANIZATION	 GOODS &	R
O    RESOURCES      PROCESSES	 SERVICES	O
N    __________    ____________   __________	N
M    People	   Production	 Products	M
E    Money	   Marketing	 Services	E
N    Material       Finance	 Payment	N
T    Machines       Personnel	 Contribution	T
     Land	   Others	 Information
     Facilities    ____________   __________
     Energy
     Information    PROCESSING	   OUTPUT
     ___________
       INPUT
Fig 2. Holarchy of Management

In order to solve environmental problems, a management information system first collects and stores environmental data from the input sector namely environmental experts or scientists who then also aggregate these data and process useful information (processing and output). Reports are sent to the management who integrates these results with social and economic factors, especially physical and cost limitations. Proposals which on one hand, reduce environmental effects and, on the other hand, maintain profitability and efficiency, are sent to the executives. Decisions on the actions of the organization are finally made, based on these proposals, predetermined goals and experience of the executives. All sectors requires the use of computers and information can flow freely within the organization.

One example of the relationship between management science and environmental informatics is shown here using the iron and steel industry. Since 1950s, technological innovations in the manufacturing of iron and steel impose larger than ever energy requirement and direct environmental impacts through waste disposal, water and air pollution. As social pressure mounted, data on recycling, use of sale of byproduct and waste products, water waste loads were first collected as input. Data are processed into useful information, like productivity, control ratio etc. Management incorporates these information with social optimal and investment choices, exchange informations with other subsystems for solutions, such as the development of ore pelletizing and the growth of mini-mills. Magagement executives finally made the decisions and the results were a lower raw material consumption per tonne of iron and energy source per tonne of final output.

References:

  1. (Croft,1974)
  2. (Ein-Dor,1978)
  3. (Gold,1975)
  4. (Jackson,1991)
  5. (O'Brien,1993)

Compiled by

Christine Leung cwl1@cec.wustl.edu Last updated on 11/03/94