Management Science Theory:

The management science theory applies statistical and mathematical techniques to solve complex problems in business. It focuses on solving technical rather than a human behaviour problem. It used techniques like linear programming, economic order quantity (EOQ), game theory, queuing theory etc to solve the problem. With the development of computer technology and another source of communicating media there has been a high impact of management science theory in the business world to make a decision and solve complex problems.

Currently, there are three main branches of management science. They are:

1. Quantitative management: It utilizes mathematical techniques such as linear programming, modeling, queuing theory, etc to help managers make the right decisions.
2. Operation management (Operation Research): It provides managers with a set of techniques that they can use to utilize an organization’s production system to increase efficiency.
3. Management Information System: It helps managers design information systems that provide information about events occurring within and outside an organization.

Contribution and Limitation of Management Science Theory:

Contributions:

1. This theory provides a new way to think about the complex managerial problems of the future and prescribes a basis to manage these problems proactively.
2. This theory enhances the manager's understanding of overall organizational processes.

Limitations:

1. This theory ignores the importance of people, relationships and other non-quantifiable factors.
2. The assumptions used for quantifying decision making do not match real-world situations.
3. This theory is not substituted of management functions. It prescribes a limited number of tools for the specific use in solving problems.