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Management Science and Quantitative Research

McGill University_031422A
[McGill University]


- Overview

Management Science (MS) is the broad interdisciplinary study of problem solving and decision making in human organizations, with strong links to management, economics, business, engineering, management consulting and other fields. 

Management Science uses a variety of scientific research-based principles, strategies, and analytical methods, including mathematical modeling, statistical, and numerical algorithms, to improve organizational formulation of rational and accurate management by deriving optimal or near-optimal solutions to complex decision-making problems decision-making ability. Management science helps businesses achieve their goals using a variety of scientific methods.  

Today, management science covers any organizational activity in which problems are structured mathematically to generate management-related insights.


- Developing Quantitative Theory

Quantitative theories are tools that are developed by investigators to be tested using statistical methods. They are constructed logically from what is already known about the topic. 

Quantitative research uses deductive reasoning. It involves the following steps: 

  • Start with a theory
  • Develop a hypothesis
  • Research design
  • Operationalize concepts
  • Select a research site
  • Sampling
  • Data collection
  • Data processing
  • Data analysis
  • Findings/ conclusion
  • Publishing results


Quantitative research can contribute to theory building by: 

  • Identifying patterns and relationships
  • Testing theoretical models
  • Generating new hypotheses
  • Developing new measurement tools
  • Providing empirical support for theories

Quantitative research can make theoretical contributions by: 

  • Adding value to existing theories
  • Advancing or extending the state of knowledge
  • Providing new relationships between constructs that have been studied previously
  • Coming up with new constructs or developing constructs in a new way


- The Quantitative Approach

The quantitative approach to management uses mathematical and statistical models to simplify systems, processes, and relationships. It applies numeric methods like formulas, statistics, and scheduling models to management problems. The results are used to monitor and improve management decisions. 

The quantitative approach to management focuses on: 

  • Using computers and mathematical techniques to solve complex management issues
  • Developing mathematical and statistical models to represent systems, processes, or relationships
  • Using quantitative techniques to improve decision making
  • Analyzing interrelated variables to select the optimal solution

The quantitative approach to management is a result of research conducted during World War II. It's considered one of the most modern and innovative business theories. 

The quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making.


[Boston, Massachusetts]

- Management Science and Quantitative Research

Management science is a quantitative approach to decision making that uses the scientific method. It's also known as operations research. Management science is the study of problem-solving and decision-making in organizations. It's applied to problems that concern how to conduct and coordinate the operations within an organization. 

Management science makes extensive use of quantitative analysis. It structures problems in mathematical or other quantitative form in order to derive managerially relevant insights and solutions.

Quantitative research deals with numbers and statistics. It allows you to systematically measure variables and test hypotheses. There are four main types of quantitative research: Descriptive, Correlational, Causal-Comparative/Quasi-Experimental, and Experimental.


- Quantitative Analysis (QA)

Quantitative analysis (QA) is a mathematical approach that uses data to make better decisions and predict trends. It involves: 

  • Collecting and evaluating measurable and verifiable data
  • Using mathematical and statistical models to look at data
  • Examining the numerical occurrence or likelihood of events
  • Applying statistics, optimization models, information models, and computer simulations

The main objective of QA is to use simplified, refined data to make better decisions and forecast trends. 

Quantitative factors are those that can be measured, expressed, or analyzed using numbers. Examples of quantitative factors include: Revenues, Market share, Wages, Market size, Growth rate, Profitability, Margins, Customer retention, Financial ratios. 


- Quantitative Factors and Qualitative Factors

Quantitative factors refer to the measurable, numerical, or statistical data that can be used in the decision-making process of an organization or individual. These factors are objective in nature and can be precisely measured and analyzed. 

Quantitative factors are objective, measurable, and statistical data that can be used in decision-making. They are commonly included in financial analyses. Managers are taught to rely on quantitative factors in their decision-making processes. 

Examples of quantitative factors include: market size, growth rate, profitability, margins, market share, customer retention, financial ratios, assets, liabilities, revenue, price-to-earnings (P/E) ratio, cost of production, accuracy of quality control, Timeliness of delivery. 

Qualitative factors are data that can't be measured in terms of numbers. Examples of qualitative factors include: brand reputation, employee morale, product quality, customer satisfaction, investors, competitive advantage, community, management. 


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