• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Importance of business mathematics in management.

Extracts from this document...


Importance of business mathematics in management What is management? Management is the process of reaching organizational goals by working with and through people and other organizational resources. Or 1. It is a process or series of continuity and related activities. 2. It involves and concentrates on reaching organizational goals. 3. It reaches these goals by working with and through people and other organizational resources. What is business? An organization, which works for the purpose to earn profit. What is business mathematics? A particular problem for management is that most decisions need to be taken in the light of incomplete information. That is, not everything will be known about current business processes and very little (if anything) will be known about future situations. The technique described in "business mathematics and statistics" enable structures to be built up which helps management to alleviate this problem. The main areas included in the manual are: a) Statistical method b) Management mathematics c) Probability 1. Statistical Method: Statistical method can be described as: i) The selection; collection and organization of basic facts into meaningful data. ii) The summarizing, presentation and analysis of data into meaningful information. ...read more.


What the decisions will all have in common however is that they are the final product of a general structure (or set of processes) known as an investigation or survey. Some significant factors are listed as follows. a) Investigations can be fairly trivial affairs, such as looking at today's orders to see which are to be charged to credit or cash. Others can be major undertakings, involving hundreds of stuff and a great deal of expense over a number of years, such as the United Kingdom population census (which is carried out every ten years). b) Investigations can be carried out in isolation or in conjunction with others. For e.g., the calculations of the official monthly Retail Price Index involves a major (on going) investigation which includes using the results of the family expenditure survey which is used also for other purposes. However information needed for first line management to control the settings of machine on a production line might depend only on sampling at regular interval. c) Investigations can be regular (routine or on going) or "one-off"- for e.g.: the preparation of a company's hail balance as against a special investigation to examine the calculation of stock re-order levels. ...read more.


Thus, if you get 90 answers right out of 100 in a math's test, you can say that 90 percent (%) of your answers are correct. * Percent (%)means for each hundred. The rate is always a percent. * Percent indicates an actual quantity. To find out the rate, divide the percentage by the base. Rate = Percentage Base Percentage in management: Percentage has great importance in the field of management. In many businesses, when the firm is going to undertaking the project, they have needed to know the "net price value (NPV) of capital budgeting project" which is the dollar amount of change in the value of the firm as a result of undertaking the project. Or NPV is the difference between the present value of cash inflow from the investment and it's cost. NPV create some problem for management. 1. It is difficult to explain NPV to people who are not formally trained in finance. 2. A second problem is that the NPV method result are in dollars, not in percentages. This is why it becomes very difficult to work. Many owners and managers prefer to work with percentages because percentages can easily be compared to other alternatives. Business people calculate the percent of increase or decrease in transactions such as sales, costs, expenses and profits. Government employees compute the percent of economic growth and unemployment. 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Marked by a teacher

    Sainsbury's organizational structure.

    5 star(s)

    So these external communications performs the number of functions for success of the business. * Public Relations functions * Informative functions * Day to day trading functions * Transparency functions Public Relations function: - This enhances the goodwill of the company information of company reports and advertising materials.

  2. Free essay

    GNVQ Business Studies Unit 1

    > Word to word, Pascall make sure they make all there customers satisfied with there service and products, there products have to be 100% excellent condition and in working order because the items they sell are necessary to the business they're selling them to, so when there customer is satisfied

  1. Managing Human Resources in Marks & Spencer.

    If the answer is "Yes", then the process can be precede. Sometimes an analysis of current requirements will produce a 'No' response and the job will be lost from the departmental allocation. Why recruit staff? Boots will recruit staff for a number of reasons, which include: * The growth of

  2. Knowledge of the responsibilities covered by the human resources function with in the business, ...

    The major difference was the level of depth the range of duties went in to. This was very specific and described all the major duties of the job. The description was very sufficient in quality and detail in accordance to the purpose of the job description.

  1. Motivation Techniques

    Benefits come in great variety, some required by law and others voluntary by the employer. Regardless of type, benefits have great influence on a person when choosing an employer they wish to work for or when an employee might be considering retirement.

  2. Recruitment and Selection - Next

    * Why recruit: Businesses recruit staff for a variety of reasons. The reasons include: * The growth of the business When Next grows in size it will usually need more people to carry out. For e.g. they are opening a new department in Enderby called the home dept.

  1. Banquets Management

    2) Job title Banquet Captain REPORTS TO The Banquet Manager JOB SUMMARY Responsible for effective operations of service giving sound instruction to waiters and house men. DUTIES 1) Ensuring an efficient standard of function service 2) Co-ordinating service between the waiter and the guest.

  2. GSCE Unit 2: People & Business

    This is by the quality of customer service they provide throughout each day to ensure the customers satisfaction. It is only the employees which could cause the biggest threat to Asda. If each day there is an employee in a bad mood and is rude to every customer they serve

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work