Management by measurement defines the application of scientific principles to assess and improve management practices, relying on empirical data for quantitative analysis.
The concept of "management by measurement" refers to C) The use of scientific principles to assess and enhance management practices. This approach relies on empirical data and methodologies to make informed management decisions. In other words, it employs quantitative analysis to gauge the effectiveness of management strategies and operations. The idea is that by using facts and figures, management can objectively measure performance against standards or objectives, enabling continuous improvement.
An example of this would be a company using performance metrics to evaluate an employee's effectiveness or a manufacturing plant using statistical quality control to ensure its product meets certain standards. These methodologies leverage the scientific method by forming a hypothesis, conducting controlled experiments or observational studies, and then analyzing the results to make informed decisions.
The phrase "management by measurement" stands in contrast to managerial approaches based on intuition or subjective evaluation, which are less empirical and more reliant on personal judgment.