“The management science approach to organizational decision making is the analog to the rational approach by individual managers. Management science came into being during World War II. At that time, mathematical and statistical techniques were applied to urgent, large-scale military problems that were beyond the ability of individual decision makers. Mathematicians, physicists, and operations researchers used systems analysis to develop artillery trajectories, antisubmarine strategies, and bombing strategies such as salvoing (discharging multiple shells simultaneously). Consider the problem of a battleship trying to sink an enemy ship several miles away. The calculation for aiming the battleship's guns should consider distance, wind speed, shell size, speed and direction of both ships, pitch and roll of the firing ship, and curvature of the earth. Methods for performing such calculations using trial and error and intuition are not accurate, take far too long, and may never achieve success.
This is where management science came in. Analysts were able to identify the relevant variables involved in aiming a ship's guns and could model them with the use of mathematical equations. Distance, speed, pitch, roll, shell size, and so on could be calculated and entered into the equations. The answer was immediate, and the guns could begin firing. Factors such as pitch and roll were soon measured mechanically and fed directly into the targeting mechanism. Today, the human element is completely removed from the targeting process. Radar picks up the target, and the entire sequence is computed automatically.”

— Richard L. Daft

Source: Organization Theory and Design, 2007-2010, p. 500

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Richard L. Daft 5

American sociologist 1964

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“During and after World War II, a large number of academic economists were exposed directly to business life, and had more or less extensive opportunities to observe how decisions were actually made in business organizations. Moreover, those who became active in the development of the new management science were faced with the necessity of developing decision-making procedures that could actually be applied in practical situations. Surely these trends would be conducive to moving the basic assumptions of economic rationality in the direction of greater realism.”

Herbert A. Simon (1916–2001) American political scientist, economist, sociologist, and psychologist

1960s-1970s, "Rational decision making in business organizations", Nobel Memorial Lecture 1978

“Decision theory can be pursued not only for the purposes of building foundations for political economy, or of understanding and explaining phenomena that are in themselves intrinsically interesting, but also for the purpose of offering direct advice to business and governmental decision makers. For reasons not clear to me, this territory was very sparsely settled prior to World War II. Such inhabitants as it had were mainly industrial engineers, students of public administration, and specialists in business functions, none of whom especially identified themselves with the economic sciences. Prominent pioneers included the mathematician, Charles Babbage, inventor of the digital computer, the engineer, Frederick Taylor and the administrator, Henri Fayol.
During World War II, this territory, almost abandoned, was rediscovered by scientists, mathematicians, and statisticians concerned with military management and logistics, and was renamed “operations research” or “operations analysis.””

Herbert A. Simon (1916–2001) American political scientist, economist, sociologist, and psychologist

So remote were the operations researchers from the social science community that economists wishing to enter the territory had to establish their own colony, which they called “management science”.
1960s-1970s, "Rational decision making in business organizations", Nobel Memorial Lecture 1978

“The Decision Theory School : Another approach to management theory, undertaken by a growing and scholarly group, might be referred to as the decision theory school. This group concentrates on rational approach to decision-the selection from among possible alternatives of a course of action or of an idea. The approach of this school may be to deal with the decision itself, or to the persons or organizational group making the decision, or to an analysis of the decision process. Some limit themselves fairly much to the economic rationale of the decision, while others regard anything which happens in an enterprise the subject of their analysis, and still others expand decision theory to cover the psychological and sociological aspect and environment of decisions and decision-makers.”

Harold Koontz (1909–1984)

Source: "The Management Theory Jungle," 1961, p. 180

“Business System Planning (BSP) and Business Information Control Study (BICS) are two information system planning study methodologies that specifically employ enterprise analysis techniques in the course of their analysis. Underlying the BSP and BICS analysis are the data management problems that result from systems design approaches that optimize the management of technology at the expense of managing the data.”

John Zachman (1934) American computer scientist

Source: Business Systems Planning and Business Information Control Study: A comparison, 1982, p. 31

“The Mathematical School; Although mathematical methods can be used by any school of management theory, and have been, I have chosen to group under a school those theorists who see management as a system of mathematical models and processes. Perhaps the most widely known group I arbitrarily so lump are the operations researchers or operations analysts, who have sometimes anointed themselves with the rather pretentious name of "management scientists." The abiding belief of this group is that, if management, or organization, or planning, or decision making is a logical process, it can be expressed in terms of mathematical symbols and relationships. The central approach of this school is the model, for it is through these devices that the problem is expressed in its basic relationships and in terms of selected goals or objectives.”

Harold Koontz (1909–1984)

Source: "The Management Theory Jungle," 1961, p. 181

“Systems inquiry has demonstrated its capability in dealing effectively with highly complex and large-scale problem situations. It has orchestrated the efforts of various disciplines within the framework of systems thinking. It has introduced systems approaches and methods to the analysis, design, development, evaluation, and management of systems of all kinds”

Béla H. Bánáthy (1919–2003) Hungarian linguist and systems scientist

Source: Systems Design of Education (1991), p. 31 as cited in: K.C Laszlo (1998) Dimensions of Systems Thinking http://archive.syntonyquest.org/elcTree/resourcesPDFs/Systems_Thinking.pdf. Working paper on syntonyquest.org

“In April of 1959, ten of this country's leading scholars forgathered on the campus of Purdue University to discuss the nature of information and the nature of decision… What interests do these men have in common?… To answer these questions it is necessary to view the changing aspect of the scientific approach to epistemology, and the striking progress which has been wrought in the very recent past. The decade from 1940 to 1950 witnessed the operation of the first stored- program digital computer. The concept of information was quantified, and mathematical theories were developed for communication (Shannon) and decision (Wald). Known mathematical techniques were applied to new and important fields, as the techniques of complex- variable theory to the analysis of feedback systems and the techniques of matrix theory to the analysis of systems under multiple linear constraints. The word "cybernetics" was coined, and with it came the realization of the many analogies between control and communication in men and in automata. New terms like "operations research" and "system engineering" were introduced; despite their occasional use by charlatans, they have signified enormous progress in the solution of exceedingly complex problems, through the application of quantitative ness and objectivity.”

Robert E. Machol (1917–1998) American systems engineer

Source: Information and Decision Processes (1960), p. vii

“In June of 1964 the research group and academic program moved to Penn bringing with it most of the faculty, students, and research projects. Our activities flourished in the very supportive environment that Penn and Wharton provided. The wide variety of faculty members that we were able to involve in our activities significantly enhanced our capabilities. By the mid-1960s I had become uncomfortable with the direction, or rather, the lack of direction, of professional Operations Research. I had four major complaints.
First, it had become addicted to its mathematical tools and had lost sight of the problems of management. As a result it was looking for problems to which to apply its tools rather than looking for tools that were suitable for solving the changing problems of management. Second, it failed to take into account the fact that problems are abstractions extracted from reality by analysis. Reality consists of systems of problems, problems that are strongly interactive, messes. I believed that we had to develop ways of dealing with these systems of problems as wholes. Third, Operations Research had become a discipline and had lost its commitment to interdisciplinarity. Most of it was being carried out by professionals who had been trained in the subject, its mathematical techniques. There was little interaction with the other sciences professions and humanities. Finally, Operations Research was ignoring the developments in systems thinking — the methodology, concepts, and theories being developed by systems thinkers.”

Russell L. Ackoff (1919–2009) Scientist

Preface, cited in Gharajedaghi, Jamshid. Systems thinking: Managing chaos and complexity: A platform for designing business architecture http://booksite.elsevier.com/samplechapters/9780123859150/Front_Matter.pdf. Elsevier, 2011. p. xiii
Towards a Systems Theory of Organization, 1985

“Management manages by making decisions and by seeing that those decisions are implemented.”

Harold Geneen (1910–1997) American businessman

Managing, Chapter Four (Two Organizational Structures), p. 69.

“Every decade or so, the business world invents another term for how it extracts managerial and decision-making value from computerized data. In the 1970s the favored term was “decision support systems,” accurately reflecting the importance of a decision-centered approach to data analysis. In the early 80s, “executive information systems” was the preferred nomenclature, which addressed the use of these systems by senior managers. Later in that decade, emphasis shifted to the more technical-sounding “online analytical processing,” or OLAP. The 90s saw the rise of “business intelligence” as a descriptor. In the middle of 2000’s first decade, “analytics” began to come into favor, at least for the more statistical and mathematical forms of data analysis.”

Thomas H. Davenport (1954) American academic

Thomas H. Davenport. The New World of “Business Analytics”. International Institute for Analytics. March 2010

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