The quantitative Theory of management emphasises the use of mathematical and statistical techniques in management and focuses on finding right answers to managerial problems, which aresolvedthroughdecision making. The theory is based on Operations Research as its main technique.

Quantitative Theory is also referred as mathematical; approach, decision theory approach, operations research approach and management science approach.

The theory came into focus during and after World War II. The critical exigencies of War necessitating the buildin of optimal solutions to militat andlogistics problems,wassought tobesolved through mathematical model building by inter-disciplinary scientists. They applied scientific research in thier bid to find most suitale answers to problems of strategic and tactical military operations and optimal decisions about the deployment of military resources. Extensive application of Operations Research brought forth new techniques like Linear Programming, Queueing theory, Gametheory, Probability theory, Sampling theory, critical path, Programe evaluation and review technique, etc.

The theory stresses the importance of diverse decision situations and the means of perfecting them. It precludes thumb rules or acting through intuition, but recommends the process of optimal decision-making assembling accurate and reliable data with quantitative precision and perfection.

The salient features of the Quantitative theory are as under:-

1. Process of Management consists of a series of decision-making. The need therefore is for securing the best inputs for the most appropraiate decisions.

2. The theory postulates at the development of a prototype decision situation, by presenting thevariables in the form of a mathematical model. The model consist of a set of functional equations setting out the quantitativce inter-relationship ofrthe variables.

3. Best solutions to the model are secured, where the model is correctly formulated and equations are properly solved.

4. Organisation goals seek to achieve specific and measurable economic goals

5. These goals can be reached optimal decisions are needed to be made through scientific formal reasoning backed by quantification

6. The decision making models formulated should be evaluated in the light of criteria like cost reduction, return on investment,meeting time schedule etc.

7. The level of making quality decisions in diverse situations decides the quality of managementand its efficacy.