“What is Applied Management Science?”
Applied Management Science is the discipline that adapts a scientific approach for problem
solving to making good decisions that are both teachable and learnable. Modern-day
management science grew out of successful application of the scientific approach to solving
military operational problems during World War II. Management science was originally called
“operational research.” As managers in business began using operations research to help in
decision making the term “management science” was coined.
Applied means to put to practical use. Management means to utilize what is controllable and
to be able to predict what is uncontrollable in order to achieve a specific objective. Science is
a continuing search of generation of theories, models, concepts, and categories. The major
benefit of using management science is to make good decisions that will give you control over
your life. Since organizations are becoming more complex and environments are changing so
rapidly making good management decisions allows a business to stay competitive in the
marketplace.
The topic of decision-making process has not received mainstream attention because people
do not use management science to make everyday decisions. I think it will be a while before
society, as a whole will embrace decision aides in everyday life. People are set in their ways
depending on how they were raised and what religion they practice etc. They feel by using
their common sense they are able to make decisions without any aides.
People have a problem with indecisiveness as it relates to major life decisions because of
“decidophobia” which means the fear of making the wrong decision. They fear that since this
is a major decision that they will be stuck with the decision they made with no way of changing
it. Plus people do not adopt to change well. This may also be true because of normative
theory that proposes to present guidelines and techniques for accomplishing predetermined
goals. It tells you what decision you ought to make.
I agree that the topic of decision-making should be taught in high school. It seems that
mathematics should be a stronger area that is taught in the education system. Since one
needs a good basis in math to develop good quantitative models to use in decision-making.
Around the world mathematics are used in high schools to translate word or story problems
into symbolic representations. However, I don’t think that the schools put emphasis on how
this affects individuals and society. Some individuals believe that management science is
viewed as a “young person’s” profession. Some mathematicians believe that mathematics is a
mind game, therefore like any other game, young persons engage in them more fully.
Yes management science is a form of applied decision-making in organizations and business
problem solving. Management science often takes an analytical view of a decision before
making a decision. Analytical methods are applied to planning and management problems.
Management science does not make decisions. Management science is a tool that is used to
make good business decisions. A fundamental part of management science modeling is the
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“systems approach” to problem solving. Management science is the use of scientific tools to
aid the executive.
Decision-making is described as the economy of thinking. There are six steps that must be
considered in making a good decision. The steps are as follows:
1. Is it thinkable?
2. Is it my business?
3. Do you have enough information to start the thinking process?
4. How long should I think about it?
5. Implementation – taking action
6. Monitoring
The decision making process must be defendable and one must understand that politics and
sociology affect decisions. Also two other important concepts are logic and common sense
when making a good decision. The management scientist must first understand the decision
in order to describe the problem. Your boss for example would be the decision maker and you
are the management scientist the advisor. The decision maker is held accountable and
responsible for the decision. The management scientist must prescribe a solution to the
decision maker that is both understandable and satisfies the decision maker. Implementation
of a decision requires follow up and change if necessary.
There are three components of the decision making process: Analysis, Design, and Control.
There are five steps to the decision making process. They are as follows:
1. Performance measures (objectives)
2. Uncontrollable inputs (predict/estimate - competitor)
3. System’s parameter (measure/count – ability skills)
4. Controllable inputs (imagination)
5. Understand interactions
6. Action (implementation)
Thinking is modeling and a model is not reality. The management scientist experiments on a
model and turns the problem into an opportunity. The management scientist must also be able
to adapt to situations. Modeling involves the following:
1. Analyzing and building mathematical models of complex business situations
2. Solving and refining the mathematical models typically using spreadsheets and/or other
software programs to gain insight into the business situation
3. Communicating/implementing the resulting insights and recommendations based on these
models
Mental modeling means how you see the world and interpretation of the world as we
understand it. Another important aspect of the decision making process is communication of
the results. To be able to analyze and effectively present results to the appropriate decisionmaker.
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