The business people in the modern days depend upon the recently invented techniques in their day to day business operations, from calculation to manipulation, managerial to administration. With the great advances in the field of science and technology, mathematics and statistics, the introduction of MIS and the invention of computer technology, the fact of the business has completely changed.

Management involves a series of complicated relationships, expressed in quantitative terms. Symbols are used to state the relationship between quantities and phenomenon.

E.g. the relationship between total cost, fixed cost, variable cost, marginal cost and the number of unit produced is represented by the symbolic model as:

TC = FC+VC

MC = TC_n – TC_n-1 or

MC = TC_n+1 + TC_n, where, TC = Total Cost,

FC = Fixed Cost, VC = Variable Cost,

MC = Marginal Cost and n = Number of units produced

Models:

A model is merely a representative of real life on the whole. A model, which is a mathematical tool, known as mathematical model, is an attempt to represent the important aspects of the real equation. Mathematical models are powerful tools for management. Some of them are:

Averages :

It is the starting point of central tendency in the area of quantitative analysis. An average is an attempt to reduce the whole lot into a representative one. It condenses a frequency distribution.

Various averages generally used are:

1. Mean,
2. Median,
3. Mode.

The uniformity or otherwise of a distribution can be found from deviation. It tests the reliability of an average. We have range, inter quartile range, quartile range, mean deviation, standard deviation etc., these are frequently used by managers in analysing and problem solving.

It is an important branch of mathematics, very much useful for mangers, especially to take decisions under uncertainty of occurrence of an event. It denotes the happening of an event or certain event and the likelihood of the occurrence of that event based on past experience.

It is used to determine the optimal strategy in a competitive situation. Value or price determination is done using game theory.

This is a common statistical measure employed in business organisations. It is used to calculate Dearness allowance to employees, cost of living index being the tool.

It brings to surface the relationship between two concepts one being the cause, the other being the effect. It helps to determine production based on optimum utilisation of factors of production. It guides to maximise output.

Vogal approximation method:

This is a special tabular column approach similar to matrix used widely to solve transportation problems.

This gives an instant visual effect of any relationship between two variables. Various graphic methods widely used are: -

1. Invoice chart
2. Sales chart
3. Production graphs etc.,

Decision trees:

This is a tree diagram used to solve a problem that is deeper, much better than any other tools stated above. This method is generally used to take make or buy decisions.

This has reference to depreciation of machinery and replacement. This was worked out by Monte Carlo and widely used in depreciation calculations.

This stands for Programme Evaluation and Review Technique. This is a special application of network analysis. This technique is widely used in this organisation. It has developed statistical refinements for estimating the time required for each activity. PERT is directly connected with planning and control of a complete set of functions and relationship.

The computers are much in the news today. It finds a permanent place whether in science or fiction, sensational news or scoops or serious technical or management action or decision.

The software technology has become very popular in the recent times. Computers, MIS and statistical tools have taken business management to a different style. Now computers are used in all aspects – major or minor of business. Computer based decisions are accurate because a great deal of thought and planning go into the system. To make it really meaningful and purposeful, the various stages are to be properly followed. It is now been established beyond doubt that computers, mathematical systems and quantitative techniques work together.

The quality of management decisions is enhanced thanks to computer applications. It enables the manager to take correct decisions in delicate issues.

1. High speed.
2. Large memory capacity.
3. Accuracy.
4. Reliability.
5. Endurance.
6. Versatility of applications.

A few hours of manual work is done by computers in few seconds.

1. Mailing services.
2. Preparation of payrolls.
3. Preparation of invoices.
4. Preparation of demand notices.
5. Identify stock inventory.
6. Maintaining accounts.
7. Despatch communication.

1. High speed and quick disposal.
2. Storage and memory.
3. Feasible solution to tough problem.
4. Reduction in cost of management.
5. Efficiency.
6. Volume of output.
7. Where men cannot go, computers can easily have access.

A computer acts like an obedient, fast and perfectly working servant. It does a lot of laborious work or mental work at faster rate perfectly and stores a large volume of useful information on data, calculation, research, materials, clues to the management decisions, all in the form of symbols, notations and digits.

The purpose of management is perfection and this can be attained only through precise decision, resulting from coordination of activities. Numerous management activities have their own particular approach to specific types of problems and have to be discussed under various headings, as production, sale, marketing, personnel, operations etc., business management has become more important as labour has become more specialised. Because of the increasing importance of management and because of the new challenges it faces, many researchers in various disciplines have concentrated their attention on the parts of the subject. Management identifies a special group of people, whose job is to direct the efforts and activities of the people towards a common objective or set of objectives. The central theme of management is to get things done through other people. To make management efficient, the managers must be equipped with the most upto date knowledge or know – how of various categories of decision making, planning, staffing, organising, communicating, directing, controlling, buying, selling, marketing, advertising, sales management, sales promotion etc. Therefore, organisational development has become the subject matter of current discussion.

MIS can be thought of as any systematic process for providing reports, data or outputs. An information system has inputs, process and outputs. The creation and storage of inputs, performance of process and creation and storage of outputs are the functions of information systems.

MIS supplies a copious flow of information on management through a systems approach, which means, looking at a problem as a whole.

1. Transaction processing:-

   These systems at processing day to day transactions occurring in the organisations.

   E.g. Processing of receipts and issues on a store, daily debit – credit vouchers etc.,

2. Information providing:-

   A straightaway attempt is made to generate information to help the decision-making activities. Starting with transactions processing, summary and exemption reports are produced. Summary reports are tabulation of details by categories such as sales by store, department and by inventory item. The exemption reports provide information about deviations of actual from planned and also indicate the reasons for deviation. E.g. reports that department having highest rejection rate more than 10%.

3. Decision support system:-

These are for improving the analytical capability of the decision-maker. Attempt is made here to create an interactive model of real life situation that the decision-maker can interrogate the system for generation and evaluation of various alternatives.

These are concerned with systems for programmed decision areas so that a decision is made by the system instead of a person. This requires very clear specifications of the procedure used. E.g., Decision to order a quantity when the stock level reaches a predefined level. This are programmed and does not require any further help from the manager concerned.

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